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         Juice Market Analysis-Tropicana &

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                   Competition

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                      Section B

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                        3/4/2013


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         Vaibhav Jain



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Table of Contents

Review of Related Literature ................................................................................................. 7
FMCG Industry Snap Shot: ................................................................................................. 15
    FMCG industry size .............................................................................................. 15

    Category Wise Share of Sector: ........................................................................... 16

    FMCG Growth: urban and rural ............................................................................ 16

India: Consumption Story..................................................................................................... 18
Segmentation analysis for fruit juice ............................................................................... 19
    Geographic segmentation: .................................................................................... 19

    Demographic segmentation: ................................................................................. 19

    Socio-economic segmentation: ............................................................................. 20

    Psycho graphical segmentation: ........................................................................... 20

Details of Actual work undertaken ...................................................................................... 23
    Tropicana-Impulse Buy ...................................................................................... 23

    Tropicana: Extremely Lucrative product for Retailer ............................................. 23

    Classification of Market: Delhi & NCR .................................................................. 25

    Understanding Market Scenario:-Faridabad ......................................................... 28

    Understanding Reporting Hierarchy and Responsibilities:-................................... 29

    Myopic Hierarchy View-Faridabad ........................................................................ 30

    Understanding -Merchandising/ Displays: - .......................................................... 30

    Distributor’s Role .................................................................................................. 31

    Understanding Mechanics of Distribution Channel ............................................... 32

    Distributor Web in Delhi &NCR(Faridabad & Gurgaon) ........................................ 36

    Faridabad Market:- ............................................................................................... 38

S.W.O.T analysis of Faridabad Tropicana Market ........................................................... 39
    Area Details .......................................................................................................... 40

Birds Eye View-Central Delhi .............................................................................................. 41
    Coverage Areas-Finding Tropicana Gaps ............................................................ 41

    Questionnaire Details for Tropicana –Central Delhi .............................................. 42
2
Survey Form-Explained Logic & Underlying Need .................................................. 43
    Sales exercise:- .................................................................................................... 44

    Pricing of Tropicana and Gatorade ....................................................................... 44

    Sales Progress:- ................................................................................................... 45

Estimation Exercise .............................................................................................................. 47
    Estimation Exercise .............................................................................................. 48

    Understanding Fields -Manpower Estimation ....................................................... 48

    Deciphering-Man power Estimation ...................................................................... 48

    Market under Scanner:-Karol Bag ........................................................................ 52

       Karol Bag:-Deciphering Ground Reality .................................................................... 53
    Market under Scanner-Gole Market, C.P, Pahar Ganj.......................................... 54

       Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality ................................. 55
    Market under Scanner-Chandni Chowk ................................................................ 56

       Chandani Chowk:-Deciphering Ground Reality ....................................................... 57


Market Under Scanner-Jhandewalan ................................................................................ 58
       Jhandewalan:-Deciphering Ground Reality .............................................................. 59
    Market under Scanner-Sadar Bazar ..................................................................... 60

       Sadar Bazar:-Deciphering Ground Reality ................................................................ 61
    Market under Scanner-South Patel Nagar ............................................................ 62

       South Patel Nagar:-Deciphering Ground Reality ..................................................... 63
    Market under Scanner-East Patel Nagar and Rajinder Nagar .............................. 64

       East Patel Nagar and Rajinder Nagar-Deciphering ground reality ....................... 65
    Market under Scanner-West Patel Nagar ............................................................. 66

       West Patel Nagar-Deciphering ground reality .......................................................... 67
    Understanding Questionnaire-Competitor’s Margin:- ............................................ 70

    Traders and Distributor Margins ........................................................................... 71

Findings of Study:- ................................................................................................................ 78
Summarized data s for Central Delhi is as follows .......................................................... 78
    Consolidated Graphical Findings –Central Delhi .................................................. 79

    Findings Consolidated –Central Delhi................................................................... 80

3
Below are the consolidated findings for Central Delhi........................................... 80

    Consolidated Graphical Findings West Delhi ........................................................ 81

    Areas Covered –West Delhi ............................................................................... 82

    Consolidated Graphical Findings-North Delhi ................................................. 83

    Area Covered-North Delhi .................................................................................. 84

    This data was collected by team members. .......................................................... 84

    Consolidated Graphical Findings-East Delhi ................................................... 85

    Findings-Estimation Exercise ............................................................................... 87

    Finding Distributor details:-Unified ........................................................................ 88

       Reaching Distributor Point:- ....................................................................................... 88
       Infrastructure:-................................................................................................................ 89
       Expenses of Distributor:- .............................................................................................. 90
       Dissatisfied Distributor:- ............................................................................................... 91
References and Bibliography. ........................................................................................... 103




4
Title of the Project undertaken

Juice Market-Tropicana & Competition Analysis



Need & Objectives of the project
Tropicana business for PepsiCo in Delhi is not reaping profits for the firm. PepsiCo’s
Tropicana in juice market faces a daunting challenge from Dabur's Real in Delhi.
Dabur’s has staggering 60% market share in Industry whereas as of now Tropicana
stands at meager 20%.So clearly there is a visible gap in terms of market presence
where Tropicana is lagging.According to survey done by AC-Nielson ,out of 60,000
shops Tropicana is present only in 12000 shops and price of knowing the name of
shops cost 12L to company/ Need of this project was felt as company wanted to
depict the real market scenario from Quality man power, free from any biases and
presenting the grass root level reality of the product’s presence in Delhi region. After
taking the feedback/suggestions from summer trainees they can work on their soft
spots. Secondly, company require practically innovating strategies on how to
increase sales figure from 75 Crore to 200 Crore-which clearly focuses on the big
picture and hence, enabling the brand Tropicana to increaseits appeal and value.


Also the untapped shops asks for more resources for better coverage and better
execution.


On 17-04-2010 PepsiCo launched their new product Gatorade Sports Mix
Company’s aim is to make sure that Gatorade reaches the counter where Tropicana
is already present and also to make clients aware of the product




The following are the objectives of the product undertaken:


    1. Find the market “Where Dabur’s Real is present but Tropicana is
       missing??”-directly enabling the Tropicana to increase its presence across

5
new consumer base in turn increasing sales and hence forth increasing its
       revenue
    2. Calculating hidden sales from untapped markets and doing human resource
       estimation.
    3. Finding places where PepsiCo can sell its Tropicana in high volumes that
       differ from traditional trade. E.g. placing Tropicana within the cafeteria of Life
       Insurance Corporation facility      located in “Canaught-Place” or placing
       Gatorade at various fitness centre like Goldie’s-Gym to         give incremental
       growth to organization and hence increase its value.
    4. How to optimize supply chain of Tropicana?
    5. Why Dabur’sReal is ubiquitous across Delhi when compared to Tropicana?
    6. How their business model differs?
    7. Do Competitive analysis of margins and scheming of beverage industry-find
       out the retailer margins and distributor margin of competitor beverages. This
       will enable organization to know what offerings are competitors making to
       clients,
    8. Preparing a blue print on how to turbo charger the sales of Tropicana from
       75Crore Last year to 200Crore this year




The entire project was divided into three phase:

       Market Gaps

       • Finding untapped market for tropicana
       • Find out market share of Tropicana and Real
       • Improvement -Recommendations

       Estimatie Exercise

       • Calculating manpower needed to cover untapped shops
       • Finding untapped sales potential

       Sales Exercise

       • Hands on Experience for Tropicana/Gatorade
       • Traditional Trades-West Delhi

6
Review of Related Literature
The study of related literature for conducting research is important and helpful in
understanding the need for the research undertaken. It is also done in order to
familiarize oneself with the work that has been done in the areas of one’s interest
and to get some useful information in order to understand the problems and issues
of the research topic. Thus, it was essential to review the relevant literature for the
variables of feeling of alienation and frustration and the effect of guidance on the
above mentioned variables of mothers of mentally challenged children. Only the
major research findings are given here below.


MARKETING:


Marketing is an integrated communications-based process through which individuals

and communities discover that existing and newly-identified needs and wants may

be satisfied by the products and services of others.


Marketing is defined by the American Marketing Association as the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners, and society at large. The

term developed from the original meaning which referred literally to going to market,

as in shopping, or going to a market to buy or sell goods or services.


The Chartered Institute of Marketing, which is the world's largest marketing body,

defines marketing as "The management process responsible for identifying,

anticipating and satisfying customer requirements profitably.


Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution and selling. However, because marketing makes

extensive use of social sciences, psychology, sociology, mathematics, economics,

7
anthropology and neuroscience, the profession is now widely recognised a science,

allowing numerous universities to offer Master-of-Science (MSc) programmes. The

overall process starts with marketing research and goes through market

segmentation, business planning and execution, ending with pre and post-sales

promotional activities. It is also related to many of the creative arts. The marketing

literature is also infamous for re-inventing itself and its vocabulary according to the

times and the culture.




According to Boone Kurtz Mackenzie Snow,“Marketing is an organizational function

and a set of process for creating, and delivering value to customers and for

managing relationships in way that benefit the organization and its stakeholders”




MARKET SHARE:


Market share, in strategic management and marketing is, according to Carlton

O'Neal, the percentage or proportion of the total available market or market segment

that is being serviced by a company. It can be expressed as a company's sales

revenue (from that market) divided by the total sales revenue available in that

market. It can also be expressed as a company's unit sales volume (in a market)

divided by the total volume of units sold in that market. It is generally necessary to

commission market research         (generally desk/secondary research, although

sometimes primary research) to estimate the total market size and a company's

market share.




8
According to David Campbell, George Stonehouse, Bill Houston (1999) ,market

share is measure of an organizations performance with regard to its ability to win and

retain customers. It can be measured by either volume or by value.


Malcolm McDonald(2002), highlights thatMarket Share is the proportion of actual

sales(either volume or value) within a defined market, and is thus a measure of

satisfying customers


MARKET SHARE ANALYSIS:


Market share analysis is an important part of market analysis and indicates how well a

firm is doing in the marketplace compared to its competitors. It is a part of marketing

research process.


Stages of marketing research process


Problem Definition


The first step in any marketing research project is to define the problem. In defining

the problem, the researcher should take into account the purpose of the study, the

relevant background information, what information is needed, and how it will be used

in decision making. Problem definition involves discussion with the decision makers,

interviews with industry experts, analysis of secondary data, and, perhaps, some

qualitative research, such as focus groups. Once the problem has been precisely

defined, the research can be designed and conducted properly.




9
Development of an Approach to the Problem


Development of an approach to the problem includes formulating an objective or

theoretical framework, analytical models, research questions, hypotheses, and

identifying characteristics or factors that can influence the research design. This

process is guided by discussions with management and industry experts, case

studies and simulations, analysis of secondary data, qualitative research and

pragmatic considerations.


Data Preparation and Analysis


Data preparation includes the editing, coding, transcription, and verification of data.

Each questionnaire or observation form is inspected, or edited, and, if necessary,

corrected. Number or letter codes are assigned to represent each response to each

question in the questionnaire. The data from the questionnaires are transcribed or

key-punched on to magnetic tape, or disks or input directly into the computer.

Verification ensures that the data from the original questionnaires have been

accurately transcribed, while data analysis, guided by the plan of data analysis, gives

meaning to the data that have been collected. Microsoft Excel is used for data

interpretation.




10
Cross Selling:


Khurana, author of Information technology for retailing defines cross selling as

sales techniques of selling additional products to existing customers


Jane W.D'Arista (1994) highlights that cross selling merely reflect an institutions

efforts to inform customer of other services available .Or it may involve explicit

packaging arrangements ,in which access to one service depends on purchase of

another


According to GalitShmueli, Nitin R. Patel, Peter C.Bruce (2007)     cross selling is an

opportunity. Once a customer has "taken the bait" and purchase one product, try to

sell them another while you have their attention




Visual Merchandising


Bhalla author of Visual merchandising sates that -Visual merchandising is defined as

the presentation of any and all merchandise at its best:(i)color coordinated-

(synchronized-colors),(ii)accessorized(related-roducts/props);and (iii)self explanatory

(descriptive/illustrative)


Visual merchandising is the activity of promoting the sale of goods, especially by

their presentation in retail outlets. (New Oxford Dictionary of English, 1999, Oxford

University Press)




11
Rosemary Varley (2001) indicated that visual merchandising is used for aspect of

product management that is concerned with presenting the product within a retail

outlet to its best advantage.


Ko Floor (2006) observed that Visual Merchandising injects life into the store as well,

dramatizing the brand and merchandise offer.


NirupamaPundir observes that visual merchandising is the “icing on the cake”. It’s

the first tactical representation of projected merchandise that the customer will see.




12
Research Methodology adopted

Research in common parlance refers to search for knowledge


The term research refers to the systematic method consisting of enunciating the
problem , formulating a hypothesis collecting the data , analyzing the facts and
reaching the certain conclusions either in the form of solution towards the concern
problem or in certain generalization for some theoretical formulation .


Research Methodology is a way to systematically solve the research problem .It may
be understood as a science of studying how research is done scientifically.
For completing the project work, data inputs were collected from the following
sources:


Primary Data:
       Collected data through discussion with the Sales manager/Area sales
       manager of PepsiCo.



Secondary Data:
       Collected data from personnel manual of Pepsi.

       Collected data from different magazines, journals, News papers and Internet.




Research method being followed is Survey Method and Observations. The
sampling unit is the basic unit containing the elements of the population to be
sampled. Sampling unit for the study include different retailers of Central Delhi.
After covering particular market data digging is performed and consolidated results
of each market is shown in organization in graphical format along with
suggestions/scope of improvement to maximize market penetration of our product.
This easy to understand       data present the unbiased picture of market to the


13
organization and helps them to create value for their product to customers by giving
them better services, higher management by letting them know their soft spots and
finding areas of immense potential in markets .Output of this survey was given as
feed back to Territory Development Manager and Area Sales Manager ,which when
consolidated is presented to upper management ,discussed in               organizational
reviews .Area wise input is given to central executive of that region enabling him to
know the opportunities available for him to do more business which in term helps him
to achieve his target and ultimately yielding to better appraisal and growth in firm.




14
FMCG Industry Snap Shot:




     Indian FMCG                                     Personal care &
                           Steady double digit
     industry size                                    Food products
                              growth in the
     estimated at                                     dominate the
                                 sector
  around US$ 25 bn.                                      sector

                 Many categories            Rural India
                are currently small      contributes c. 33%
                  andoffer huge            of the overall
                     potential             FMCG sector




                             FMCG industry size
In Rs billion             MAT DEC 2008              MAT DEC 2009

FMCG Industry Size        1,023.9                   1,161.1

Growth rate (%)                                     13.4%

Source: AC Nielson




15
Category Wise Share of Sector:

                                                         Hair Care
                                                            7%
                       hair care
            OTC           7%               fabric care
     baby products                            11%
     care    4%
      2%    others
                                                               Food Products
               5%
                                                                   40%

           household               Personal Care
              4%                       20%




Source:AC Nielson

40% share of food products in F.M.C.G offers whole set of opportunity for juice
segment.



FMCG Growth: urban and rural




16
Juice Market -India

Indian Juice industry has emerged as a great opportunity for non-alcoholic drinks
market and poses great opportunity for many firms.


According to RNCOS (industry research firm) latest research, “Indian Non-Alcoholic
Drinks Forecast to 2012”, the juice market (including both fruit and vegetable) has
emerged as a fastest growing segment of the Indian non-alcoholic drinks market
over the recent past. Market research foresees the Indian market for fruit/vegetable
juices to grow at a CAGR of around 24% (in volume terms) and around 30% (in
value terms) from now till 2012.


It is learnt that convenience and natural taste together with health-consciousness
has played an important role in the growth of Indian juice market in recent years.
Sales have been boosted by the changing lifestyle of the Indian middle-income
group amid rapid urbanization. Furthermore, it has been seen that cola sales have
fallen dramatically after rising health concerns associated with it and this seem to
have benefited the fruit beverage industry. Tetra packs have emerged as a boon for
providing practically fresh and preservative-free juice.


Number of Indian players have been entering or expanding their portfolio into the
segment, after acknowledging the enormous future market potential. Dabur India, for
instance, recently planned to expand its offering under flagship fruit drink brand
'Real'. It is also planning to add two more variants as it eyes a bigger pie of the
Indian fruit-based juice market. Another player, Parle Agro, the maker of mango
drink Frooti, announced its entry into the 100% juice market in late 2008. Other
major brands include PepsiCo’s Tropicana and Coca-Cola’s Minute Maid.




17
India: Consumption Story
Estimated juice market in India is worth RS 600Crore.So with an ever-growing
customer base of Middle- Class, juice making companies will have wider access to
consumers who can shell out money to buy juices.




So we can say with ever increasing disposable income and increasing awareness
among consumers there is immense potential in Juice market in upcoming years.




18
Segmentation analysis for fruit juice


Introduction:
India is the second largest market for foods and vegetables in the world. The
production of fruits account for 48.5 million tones. However, the fruit juice market has
not been fully tapped because of poor infrastructure and storage facilities, and highly
unorganized market.
However, with people turning more health conscious, the non-carbonated beverages
have become one of the fastest growing businesses. The major growth drivers in
fruit juice market are increase in health consciousness, disposable incomes, and
more sophisticated cocktail culture. The category of fruit juices are dominated by
Pepsi with its brand Tropicana, Dabur Foods with its brand Real, Coca Cola India
with its brand Maze. The market now has a variety of fruit juices like 100 % fruit
juice, nectar, fruit drinks, fruit-based milk drinks and fruit-based soya milk.

Geographic segmentation:

The fruit juice market share is concentrated in the metros like Delhi, Mumbai, Kolkata
and Chennai; mini metros like Benguluru, Hyderabad, Pune, Chandigarh,
Ahmadabad and small cities like Ludhiana, Amritsar and Jalandhar.
The growth of the fruit juice market increased with the proliferation of the
supermarkets and malls in the metros and mini-metros.
As a growing category, fruit juices must fight the battle to win the shelf space of
markets. Hundreds of new beverages are introduced every year. Even though more
supermarkets are being built in a larger size, their shelf space is still unable to
accommodate all of these new beverages in the market.

Demographic segmentation:

The regular consumers of fruit juices are children, educated housewives, executives,
working professionals, young health-conscious adults and the ageing population.
The fruit juice companies have targeted all the age groups by different juices. The
customized packaged fruit juices are targeted at kids below 6 years.              They are
available in number of flavors and fortified with calcium which is required in higher



19
quantities by children below 6 years of age. Further, they are available in 200 ml
packs which are just right for kids.
The different pack sizes like the half and one liter pack are aimed at increasing the
in-home consumption of juices.
Fruit juices are an instant source of energy which helped in tapping the
sportspersons and kids who are actively involved in sports. For example, Pepsi’s
Tropicana has tied up with equestrian sports and polo clubs to build bridges with the
well-heeled young adults.
The increasing cost of health care has helped widen the customer base to the
ageing population. Also, as fruit juices are rich in energy and nutrients, ill and post
surgery patients on liquid diet have increased the customer segment.

Socio-economic segmentation:

The fruit juice market has shown a tremendous growth in the recent years. One of
the major reasons for this is the increase in the disposable income. Generally,
individuals belonging to higher and middle socio-economic strata are the regular
consumers of packaged fruit juices. However, the 65 ml packs of mango Frooti
launched in Pune by Parle Agro for Rs. 5 has aimed at broadening the socio-
economic customer segment.

Psycho graphical segmentation:

Healthy living is a growing trend. However, fruit juices have more to offer than just
health. They provide an easy gateway to a healthy lifestyle. Consuming fruit juices is
almost an effortless switch compared to dieting or exercising and it does not require
major behavioral change. Active and health oriented people are no longer the
primary consumer of fruit juices. Nowadays, the consumer base for fruit juices is
broader. These products attract a wide range of consumers ranging from those
having specific health needs to those simply looking for healthy refreshments. In the
next few years, the fruit juice industry will be challenged by these savvy, confident,
and opinionated consumers. They no longer see these beverages as simple thirst
quenchers with health benefits. They see these products serving other needs that fit
a simple and logical proposition, such as ease of preparation, high level of



20
availability, ergonomic packaging, portability, and other factors that make up an
individual's perception of value.
In order to attract the kids segment, the Tetra packs have animated fruit characters
which communicate the fun, taste, and nutrition aspect. Moreover, the parents can
give their children a portable beverage that is a healthy alternative to the nutritionally
bankrupt soft drinks. They are designed in such a way as to fit in the Tiffin
boxes.Further, there has been an increasing interest in more natural, organic
products. Consumers perceive this as the next best thing to having a fresh fruit.
Convenience is no longer the selling point, the naturalness is.
However, there are certain consumers who are wary of packaged food, as they feel it
has preservatives and are not fresh. Thus, companies like PepsiCo, Dabur Foods
Ltd. have developed preservative free fruit juice offering consumers with a great
taste and wholesome nutrition of freshly squeezed juice in hygienic and attractive
packs.

However, despite of health benefits, some youngsters love to drink only carbonated
soft drinks. Thus, some companies have developed carbonated fruit juices which do
not contain caffeine and caramel coatings that are harmful to health.

The increased consumer interests in fruit juices can also be attributed to the addition
of minerals, vitamins and herbs associated with health, vigor,            longevity and
enhanced quality of life,. There is a niche which is now demanding more top quality,
premium products and produced with added vitamins, minerals, fibs, soy or omega-
3. There are niche customers who take juice as a part of their diet and do not bother
about the taste.

For many consumers, flavor is the deciding factor. While orange, apple and mango
dominate the market, other juices such as grapefruit, watermelon and orange-carrot
combination are also appealing to some. In order to match the traditional taste buds,
traditional recipes like AaamkaPanna and jamun variants have been introduced in
the market.
Conclusion:
Product development and positioning will need to become more targeted, shifting
from mass market to a mass customized approach in which particular audiences are
identified by lifestyle, ethnic group and other factors. Thus, the fruit market is very


21
lucrative. Among the market drivers are the increasing cost of healthcare, ageing
population, consumer health awareness and choice and scientific evidence of
certain ingredients.




22
Details of Actual work undertaken

Tropicana-Impulse Buy


PepsiCo sees Tropicana as an Impulse buy in India hitherto and not a planned
purchase. Aim of Tropicana division is to make it a planned purchase within Indian
community and make it a part of consumer’s daily breakfast. Impulse buy means an
unplanned buy .When a family is going to market for grocery shopping, name of
Tropicana Juice is never mentioned in the shopping list. It is only at the moment
when consumer enters a shopping store and sees Tropicana he picks it up and buy.
So SHELF-VISIBILITY is an important facet for sales of Tropicana. F.M.C.G goods
like tooth paste, soap are planned purchase.
Aim of Tropicana Division In PepsiCo’s Gurgaon office is to make Tropicana a
planned purchase rather than an impulse buy.




Tropicana: Extremely Lucrative product for Retailer


Being a great health product for consumer it is also a very lucrative product for
retailer as well. It offers a trade down margin of 15% in addition to additional
scheming that can go up to 5% for Traditional Trade. Margin of Distributor is 5%.
For easier assimilation look at the below table


Tropicana 1 L                               Price INR
Cost Distributor                            62.10
Cost Retailer                               65.21
Cost Consumer (M.R.P)                       75
Margin Retailer                             9.78




23
So a 1L pack of Tropicana with M.R.P 75INR cost 65 INR to Retailer generates a
handsome margin of 9.7 INR. So a Wills Navy cut Cigarette costing 5INR generates
margin of 50paisa to retailer. So on selling 20 cigarette retailer generates a revenue
equivalent to selling 1 L Tropicana. So a sale of 100 INR retailers of 20 cigarettes
makes the same amount from sale of 75INR Tropicana 1L.




24
Classification of Market: Delhi& NCR


In     Delhi     Tropicana         and   Gatorade            is        sold   in   3    trades

                            Modern
                             Trade




                             Stand
                             Alone                        Market
                            Modern              Classification:Delhi&NCR
                             Trade




                           Traditional
                             Trade




     1. Traditional Trade-Traditional Trade is defined as all that trade that flows through
        traditional outlets, such as kiosks, corner shops, local mom and pop shops, open
        markets, etc. It represents all trade with the exception of that which flows through
        retail chains, supermarkets, or super stores


        Key Characteristics
            a) Traditional trade is characterized by a large complex               network of
               independently owned retailers and distributors carrying primarily local or
               regional brands.
            b) It is the prevailing form of consumer trade in emerging markets.
            c) It can be difficult to penetrate for both national and multi-national firms given
               its highly fragmented nature, yet it serve as the conduit for reaching the
               largest percentage of the consumer population



Importance of Traditional Trade can be very easily judged by the following data




25
For Tropicana division Traditional Trade forms heart of their business,so they
     make their best to maximize the penetration at T.T.


     Modern Trade:-Modern Trade is defined as all that trade that flows through retail
     chains, supermarkets, or super stores, etc.


Key Characteristics:-
           a) Above an indexed covered area (different users have different indices but
                safe to say 3000 sq. ft. as the minimum)
           b) SKUs above an index number (again, different for different users, but again
                safe to peg it at above 2500)
           c) Bulk Buying/ Inventory management
           d) PAN India Presence.
           e) Discounting (and frequently passing it out to customers as well)
           f)   Self Service with electronic billing and credit
           g) Example: Big bazaar, Wal-Mart, , Reliance Fresh




26
S.A.M.T:-To much of the extent it is similar to M.T but it may/may not have
     multiple chains of stores
         .Example:-Garg-Dastak,                Needs       (18      stores            in   Gurgaon,SRS,Big
         Apple,EzeeDay




                                    Tropicana Share % T.T
                       35

                       30

                       25
             Share %




                       20
                                                                                              2008
                       15
                                                                                              2009
                       10

                        5

                        0
                            Jan   Feb   Mar    Apr   May   Jun    Jul     Aug   Sep




                                    Tropicana Share% M.T
                       35

                       30

                       25
             Share %




                       20
                                                                                              2008
                       15
                                                                                              2009
                       10

                        5

                        0
                            Jan     Feb       Mar    Apr    May         Jun     Jul




27
Understanding Market Scenario:-Faridabad


Initially to have a better understanding of how things work and to get doubt cleared
we were instructed to meet Central Executive of Faridabad for two days.


Market Covered




Sector Covered                               Number of Shops
28                                           5
29                                           4
30                                           6


Mom and Pop Shops                            12


Modern Trade                                 Vishal Mega Mart,SRS




Smart Facts-Faridabad



     a)   Suburban City-Over 2 Million Population
     b)   Generate about 60% revenue of Haryana State
     c)   50% I.T collected Haryana comes from Gurgaon & Faridabad




28
Learning’s: Faridabad-

Understanding Reporting Hierarchy and Responsibilities:-



One Central executive is responsible for execution of Tropicana in Faridabad. He
leads a team of three P.S.R (Pepsi sales representative) and three merchandisers


Before the morning visit start C.E talks with all P.S.R’s and list down progress of
previous day, compares it with actual target and gives them the feedback. Also he
asked for the current days plan and any issues being faced by them. Task of C.E is
to execute so it’s his responsibility that Products are being executed in the market up
to the mark, sort out any grievance that P.S.R is having issues with, fix out pricing of
Shop in Shop.


P.S.R is responsible for taking orders; managing new customer base and
merchandiser are responsible for doing visual merchandising on all the shops.
Mode of transportation for merchandiser is bicycle and for P.S.R is motor cycle.
Each P.S.R covers daily 30 shops and merchandiser 25 shops.


Every P.S.R has a Tropicana route book. It contains the following fields
           a) Name of Shop.
           b) Stock Details of Retailer
           c) Order Details –Previous Order Details, Current order details
           d) Replacements if any

This route book serves as input for distributor for order processing. Also data from all
P.S.R is consolidated by C.E and presented to Area Sales manager.




29
Myopic Hierarchy View-Faridabad




                                     Central
                                   Executive-1




                                                  Merchandisers-
                    P.S.R-3
                                                        3



This is a myopic hierarchy because it sees the market from a grass root level and
deals with people that only interact with retailers on a daily basis.



Understanding -Merchandising/ Displays: -

Proper merchandising and display at the store level promotes sales; it promotes the
consumer to switch over to the displayed brand ignoring existing brand loyalties; it
persuades him to buy “now” rather than latter; and it makes him buy more than the
originally intended quantity. All these are essentially sales promotional functions. While
advertising can only make a consumer aware of the product or generate a desire for it,
merchandising/ display often motivates a consumer to buy a product instantly. Point of
purchase displays are one of the most widely used sales promotions tools. With the
proliferation of brands, innovative displays have become a prerequisite for success. In
the store brands compete with each other for consumer’s attention.

30
Display Enhance Counter Pull
Display at the point of purchase can be rightly describe has a “clincher” in the marketing
process. When awareness and interest has been created in the consumers mind
through advertising and other promotional measures, a good display in the store can
help to clinch a sale. The displays are also effective in inducing brand switching. A
consumer normally goes to a retail outlet to purchase his usual brand. At the retail
outlet, a good display of a competition brand can command his attention and he may
buy the competing brand. In other word Good display can lead to impulse buying and
brand switching. A good display is the surest way to attract the consumers. It pulls the
consumers to the consumers. In fact, displays have their origins in the age old saying
that “goods well displayed are half sold”.


Display can be of various types- window display, wall display, counter display, aerial
display, or floor display, depending on where it is fixed. Display materials to constitute a
large spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons,
etc. To enhance the display effect, manufacturers use several gadgets and approaches.
Illuminated designs, motion displays, sky writings, etc., add to the display effect. Some
companies organize display units locate them at vantage points within the store to
attract store traffic. Skillfully designed and strategically located display units can
enhance the sales appeal. More and more firms are going in for innovative displays to
give their brands visibility.




Distributor’s Role



There is one distributor that serves entire Faridabad region. Along with Tropicana he
also deals with other products of Godrej Ambi Pure, Parachute hair oil to name a
few. Distributor is appointed by the company and following points are taken into
consideration while appointing a good distributor.


           a) Distributor needs to have good market reputation and links.



31
b) He should have good infrastructure to carry out day to day operational
              activities-distributor must possess a warehouse, vehicle for delivering order
              and manpower who can work as P.S.R and Merchandisers.
          c) Other products that distributor sells also plays an important role and tells
              about reputation and worthiness of distributor.

Salary of P.S.R and Merchandiser is paid by the distributor that later is reimbursed
by the company, .P.S.R and Merchandisers are not on company pay roles.


It must be noted that it is the Distributor and P.S.R who sells the product and not the
Company official. So an assiduous distributor is required to ameliorate the product.




Understanding Mechanics of Distribution Channel

The supply chain of products in the FMCG market in India is one of the longest
supply chains an industry could really have. There are as many as 5 levels of
intermediaries involved in the entire supply chain through which a product passes
before reaching the end consumer. What has been observed is that even though
these FMCG companies are big multinationals and Indian but face a major challenge
of making their products available in the market in the right quantities and in the right
time. This is simply because these companies don’t really have a wide network of
sales agents and other force which is required and is ideal for catering their products
to the markets.

This aspect is taken over by distributors, wholesalers and retailer whose margins on
these products actually double the price of these products when a final consumer
buys it. The margins kept by these intermediaries range from 2% to 5%.

The products in this industry are transported from manufacturing units via c & f
agencies or warehouse to distributors who further sell the same to wholesalers or
stockiest who finally sell it to the retailers in the market. These products are
transported either via roadways or railways within the domestic markets and

32
normally don’t take more than a week to reach the retailers. FMCG products are
normally a high volume ball game and products have to essentially be available in
the market at all given points of time and at all given points of purchase and
therefore the distribution activities are highly volatile and dynamic. The supply of
products takes place virtually on a daily basis in fixed quotas or otherwise, to
retailers as per their requisitions and the anticipation of demand and the
performance of products in the recent past. All such criteria are taken into
consideration before the quantum of products being dispatched to the next level of
intermediary. Since it’s a volume game, manufacturers make all possible efforts to
boost sales and promote their distributors to earn more and more orders from the
retailers and wholesalers. A close check is maintained on the flow of the products on
a daily, weekly, fortnightly and monthly basis to determine the trend in the business
and flow of products and consumption. This activity also helps to find out drawbacks
of the distribution system, if any, and rectify them within time.




33
Distribution Cycle-Tropicana and Gatorade

                                           Factory




                                      Carry and Forward




          Distributor                                     Modern Trades




                        Wholesalers




                           Retail Trade




                                           Consumers




34
Tropicana is manufactured in India in Pune.From Pune goods are supplied to Carry
and forward agent .Carry and forward agent furthers supplies it into two divisions:-
1) C&F Agent directly send the goods to Modern Trade like Big Bazar ,Spencer
2) C&F Agent send it to distributor.




Distributor further can sell the goods to retailers or wholesalers.
1) Wholesalers further sell goods to retailer which then is received by the
consumers.
2) Retailers receiving goods directly from company’s distributor can sell goods to
consumers.


Advantages of purchase from Companies Distributor over Wholesalers.




                                                  Company
                      WholeSalers
                                                  Distributor




35
Distributor Web in Delhi &NCR (Faridabad &
Gurgaon)




So there are total 12 distributors doing business for Tropicana.




36
Average Turnover per disributor(Rs Crore)
                         Avge Turnover

                                                3.85


                                         2.5


                  1.2
     0.9



     2007         2008                   2009   2010




37
Faridabad Market:-


Faridabad is a developing city .Population is unevenly spread, some places are lying
vacant and some places are densely populated.Since, it is a growing market retailers
are very friendly .Width wise coverage is excellent and the company is working on
the concept of depth. It implies that number of shops covered is healthy, but since
it’s a growing depth of Tropicana can be grown, means more cases can be sold.


In sector 28 there are line of shops that only keep Tropicana and not Real. People
are buying Tropicana and scheme of one glass free is doing wonders for company.
But places where Modern Trade and Traditional trade are located nearby concept of
cannibalization can be seen.A M.T offers Tropicana at Rs 60 where as T.T is selling
the same thing for Rs 75.So consumer prefers to go to M.T rather than T.T


Visual merchandising needs to tighten up .Attractive merchandising are missing
Proper Utilization of P.O.P material needs to be done.

Consumer trends differs according to areas (sector) Counter's Infrastructure & Stock
Holding Capacity differs according to the areas

Also consumer still think of Tropicana as imported product and very few people know
that it is a product of PepsiCo. So customer awareness is lacking


Since Faridabad is a growing city many educational institutes, hotels, private
organizations are mushrooming in the city, so there lies a big opportunity for
Tropicana to sell.




38
S.W.O.T analysis of Faridabad Tropicana Market

      Strengths

      • Width-wise excellent coverage(e.g.: outlets
        covered,facings,stock )
      • Aggressive sales team.
      • Tropicana monopoly
      • Excellent Push strategy implied.
      • Tropicana 100% enjoys image of quality health product among
        health conscious.
      • Constantly updating counter network.
      • Latest glass promotion.

      Weakness

      • Visual Merchandising -Meager share of eyeball of customer
      • Lacking PULL STRATEGY in terms of V.M.
      • Big fish eating small fish-independent retailers suffering.
      • Still looked upon as Imported product vis-a-vis Real.
      • Unlike C.S.D, dedicated chillers for Tropicana missing

      Opportunities

      • Educational institutes-School, Colleges
      • Hospitals
      • Medical Store
      • Hotels
      • Government Undertakings

      Threat

      • Cheap variant ofJuices

So, Faridabad is likea ticking time bomb for Tropicana that is still to explode and is
area of immense potential.


39
Survey Details:
Area assigned to me was Central Delhi.


Area Details

Central Delhi is an administrative district of the National Capital Territory of Delhi in
India. It is bounded by the Yamuna River on the east and by the districts of North
Delhi to the north, West Delhi and South West Delhi to the west, New Delhi to the
south, and East Delhi to the east across the Yamuna.


Central Delhi has a population of 644,005 (2001 census), and an area of 25 km²,
with a population density of 25,759 persons per km².


Central Delhi houses the central business district and high-rises. It includes
Shahjahanabad (Old Delhi) which served as capital of the Mughal Empire, and is
home to the monuments like the Delhi Fort and the Jama Masjid, Delhi's principal
mosque.




40
Birds Eye View-Central Delhi




Coverage Areas-Finding Tropicana Gaps

Areas given below were covered to find market gaps


S.No            Area Name

1               ChandniChowk
2               Karol Bag
3               Canaught Place
4               Patel Nagar –WestPatelNagar,EastPatelNagar,SouthPatelNagar
5               Old Rajindernagar
6               Sadar Bazar
7               PaharGanj
8               Gole Market
9               Jhandewalan
10              Shadipur
11              PaharGanj


41
Questionnaire Details for Tropicana –Central Delhi




Serial .No   Fields of Questionnaire   Data to be filled
1            Name of Shop              Shop Name
2            Address                   Shop Address
3            Contact number            Phone number
4            Real Present              Yes/No
5            Tropicana Present         Yes/No
6            Real Facing               Number of facings of Real


7            Tropicana Facing          Number of facings of Tropicana
8            Real Stock                Estimation-Real Stock


9            Tropicana Stock           Estimation-Tropicana Stock


10           Tropicana PSR present     Yes/No


11           Gatorade Powder Present   Yes/No


12           Visual Merchandising      Excellent/Poor/N.A


13           Estimated                 Cases consumption in a week
             Consumption(week)


14           Issues/suggestion         Feedback retailer/surveyor




42
Survey Form-Explained Logic & Underlying Need

     1) Name, Address and contact number of shop: - Enables speedy communication
        for business transactions and concerned business related exercise. Also can be used
        for future purposes, become a reusable component for the organization.
     2) Real present:-: This tells about competitor’s availability.
     3) Tropicana present:-: This tells about Tropicana’s availability.
     4) Real Facing:-It implies how many packs of juices are kept on the shelf of retailer.
        Company pays a price to retailer for good display. Good number of Real facing
        display implies good sale of Real at that shop.
     5) Tropicana Facing: - For every 8 facings company gives a scheming of 4% to retailer
        after 3 months. Facings of Tropicana are compared with respect to Real to
        guesstimate sales with respect to each other. Also it tells about how big is the share
        of eyeball of customer with respect to Real
     6) Real Stock: - Competitors judgment of stock.
     7) Tropicana Stock:-Used with information of Real’s stock to know competitors status...
     8) Tropicana PSR present: - This will tell that is P.S.R visiting newly opened shops in
        the region or not. It is a hypothesis that for every 250 people there is one shop, so
        with ever increasing population new shops open up in the reason. It is commonly
        noticed that P.S.R are reluctant to visit new shops and keep on sticking to the old
        route plan that they have. So this tells about the un –explored avenues for selling our
        product.
     9) Gatorade Present:- Aim of PepsiCo is to make sure that where 1L Tropicana is
        present, there must be one mono carton of Gatorade present too .This is a classic
        example of cross-selling and it checks with how much efficiency their workforce is
        carrying out cross selling exercise.
     10) Visual merchandising: Check if merchandising done properly or not. This tells the
        real picture about how merchandisers are doing their job. A good merchandising is
        vital for healthy sales, it act as a value add for Tropicana sales and become critically
        important as Tropicana is considered an impulse buy.
     11) Estimated Consumption: By seeing Tropicana stock we have to judge their
        estimated weekly consumption, If stock is less than judgment then we can pursue
        retailer to purchase more stock
     12) Issues/Comments: - any particular issues seen/observed, suggestions by retailer or
        any other issue noted by surveyor.




43
Sales exercise:-

Third phase of the exercise was to use the knowledge calculated from Phase 1 and
Phase 2 of the project and get some hands on experience with Sales.

Task allocated to me was to cover the traditional Trade of West Delhi that o not
poses a good picture for Tropicana Division and the same fact is evident from the
survey done on the same region.

Products to be sold were Tropicana and Gatorade(R.T.D and powder)

We were instructed to start from Distributor Point every day.

This used to serve the following purpose.

     a) Give distributor the order received from market.
     b) Calculate samples of product, example mono cartons for Gatorade.
     c) To get acquainted with distributor activities




Pricing of Tropicana and Gatorade

Price-Case          Quantity-Casing         Margin      Price-Casing   Scheming
Tropicana100%       1L,12 piece             15%         887.0          1 carton free with 1
                                                                       case or 8-10%
Tropicana           1L,12 piece             15%         782.5          1 carton free with 1
Nectar                                                                 case or 8-10%
Tropicana 100%      200ml,30 piece          15%         573.9          1 case free with 5 case
Tropicana           200ml,30 piece          15%         469.5          1 case free with 5 case
Nectar
Gatorade R.T.D      500ml,24 bottle         10%         763.6          1case+2 bottle free
Gatorade            35 g,24 mono carton     18%         1830.5         1case+1 Monocarton
Powder              (1 mono carton -6                                  free
                    sachet)




44
Sales Progress:-

S.   Name of Shop      Address          Contac   Quantity-   Quantity-       Billing(Tro   Billing(Gat
No                                      t        Gatorade    Tropicana       picana)       orade)
                                        Numbe
                                        r
1    MaaDurga Store    A-               987170   2           1 case-100%     800           152.52
                       22,MainNajabg    4070     Monocart
                       arh                       on-(1
                       road,Uttamnag             orange+1
                       ar                        lemon)
2    Madan store       Premnagar,ne     935009   9Monocar    0               0             686.34
                       arbikaneri       4275     ton-(3
                       sweet(landmar             orange+6l
                       k-metro pillar            emon)
                       number 682-
                       83)
3    Maagaba trading   wz-154,hastal    253735   1           0               0             76.26
     corporation       road,uttamnag    665      monocato
                       ar                        n-orange


4    virdi             Shop No1,Shiv    921041   6           0               0             457.56
     communication     Nagar,Jail       1097     Monocart
                       Road                      on-(3
                                                 orange+3
                                                 lemon)
     Nanu bakers       , Park, Behind   928996   1           1case-          1252.02       76.26
5                      Jail Road,       1947     Monocart    200ml+1 case-
                       Petrol Pump,              on orange   1L
                       New Delhi
6    Nirmal Medicos    Sl-1/3,L-        931310   2           0               0             152.52
                       Block,hari       4016     Monocart
                       Nagar                     on-(1
                                                 orange+1
                                                 lemon)
7    Chaurasiya Pan    el-6,sno1,L               1           0               0             76.26
     Bhandar           block,harinaga            monocato
                       r                         n-lemon
8    Sindhi Sweet      CA-19A,DDA       281242   6           Present         NA            457.56
                       flats,Hari       58       Monocart
                       Nagar                     on-(3
                                                 orange+3
                                                 lemon)


45
9    Mohan Medicos   104-ganesh    259916   1             0         0   139.88
                     medicos       44       Monocart
                                            on
                                            orange+2
                                            rtd
                                            bottle(1
                                            orange+1
                                            lemon)
10   Family bakery   b-85,ganesh   259903   2             Present   0   152.52
                     nagar         05       Monocart
                                            on-(1
                                            orange+1
                                            lemon)




11   The body gear   c-5,ganesh    921222   2             0         0   247.95
                     nagar         3415     Monocart
                                            on-(1
                                            orange+1
                                            lemon)+3
                                            rtd bottles




46
Estimation Exercise

Estimation plays a very vital part in business development .This helps the upper
management to set the road map for future and also let them know how can they do
more business. A good estimation give other employees in the department feedback
for their future tasks .For example if Tropicana wants to increase its sales by 70%
then it is result of some kind of estimation done earlier in business. Similarly a yearly
target of Central Executive of selling Rs 10 Crore juice is result of some kind of
estimation that is done earlier by upper management.




Tropicana department is following resource crunch. They are in dire need of skilled
manpower. So after doing market analysis across central Delhi next task was to
estimate how many numbers of shops are present in regions covered in central Delhi
where Tropicana and Gatorade can be sold.

After calculating amount of employees needed we have to find the associated cost
with them and then find out how much sales will they be able to generate. This data
is then used by company for further recruitments.

Following assumptions and facts were carried out while doing manpower estimate.

     a) PepsiCo follows the hypothesis that for every 250 person there is one shop to cater
        their needs.
     b) Population in Delhi is growing at the rate of 1.4% every year.
     c) Data of census-2001 was used and current population was calculated with the above
        growth rate.
     d) One P.S.R covers 180 shops in one week.




47
Estimation Exercise

Table -Manpower Estimation

Area                  Population   Shop           Shop         Ratio=population/shop   Shop       PSR
                      2010         covered -      covered -                            deficit    required
                                                  me

Jhandewalan           141928.50    20             14           7096.43                 547.71     3.04
Gole+Cp               525904.50    115            33           4573.08                 1988.62    11.05
Karol Bag             519930.37    170            30           3058.41                 1909.72    10.61
Sadar Bazar           86656.30     7              9            12379.47                339.63     1.89
ChandniChowk          189583.59    17             25           11151.98                741.33     4.12
Rajendar Nagar        265863.38    65             14           4090.21                 998.45     5.55
Patel Nagar           3947349.16   117            43           33738.03                15672.40   87.07
PaharGanj             733325.45    125            15           5866.60                 2808.30    15.60
Total                 64,10,541    636            183                                  25,006     138




Understanding Fields -Manpower Estimation

S.No          Field name               Logic
1             Area                     Name of area under calculation
2             Population               Shows estimated population 2010
3             Shop Covered             This shows how many shops are there in this region
4             Shops Covered- Shops I covered
              me
5             Ratio=population This ratio shows that one shop caters to need of how many
              /shop                    people. Ideal figure is 250
6             Shop Deficit             Tells how much unexplored shops are in this region


Deciphering-Man power Estimation

According to our estimation, there should be 25006 more shops in the above stated
areas that are still to be tapped in .Also we know one P.S.R covers 180 shops in one
week so to cover 25006 shops we need 138 P.S.R.




48
Sales Forecast Estimation from Institutions

This table shows immense potential in Institutions for Tropicana and Gatorade

Institutions              Count   Estimated Consumption 1 month      Yearly
                                                                     Consumption
Embassy                   58      20 case 1L100%                     Rs.
                                                                     1,23,47,040.00
Psu Joint Venture         55      60 cases 200ml 100%,5 case 1L      Rs.
                                                                     2,56,17,900.00
Offices relating Sports   11      60 cases 200ml 100%,5 case 1L      Rs.
                                                                     51,23,580.00
Tourism and               4       60 cases 200mL,2 case RTd,1        Rs.
Hospitality                       case powder                        16,63,664.00
Sports Complex            16      25 Cases RTD,6 case powder,5       Rs.
                                  case 200ml                         54,19,200.00
Colleges Under Delhi      83      40 cases RTD,60 cases              Rs.
University                                                           6,46,40,400.00
Government                72      60 cases 200mL,5 case RTd,1        Rs.
Establishments                    case powder                        3,45,81,600.00
BFSI                      20      60 cases 200mL,5 case RTd,1        Rs.
                                  case powder                        96,06,000.00
Cooperatives              8       60 cases 200mL,5 case RTd,1        Rs.
                                  case powder                        38,42,400.00
Educational and           93      60 cases 200ml,15 cases            Rs.
Training                          RTD,2case powder                   5,52,25,260.00
Cultural                  21      60 cases 200ml,15 cases            Rs.
                                  RTD,2case powder                   1,24,70,220.00
Hospitals(2006)           140     50 cases 1l,50 case 200ml,4 case   Rs.
                                  powder,5case RTD                   14,14,23,240.0
                                                                     0
Hotels                    72      60 cases 1L,10 cases 200ml,20      Rs.
                                  case RTD                           4,59,82,080.00
Private Engineering       85      60 case 200ml,5 case Gatorade      Rs.
Colleges(IP university)           powder,case 10 RTD                 5,21,83,200.00
Gymnasiums                750     20 case RTD,5 cases powder         Rs.


49
21,96,90,000.0
                                                0
Schools   4862   40 cases 200ml,5 cases RTD,5   Rs.
                 cases Gatorade Powder          1,42,61,14,060.
                                                80


Total     6350                                  Rs.
                                                2,11,59,29,844.
                                                80




50
Understanding Yearly Sales Forecast:-

An institution is another dimension where lucrative business opportunity exists for
PepsiCo. From institutions we mean school,colleges,gymnasiumsetc.These are the
places from where organization gets huge volume and since FMCG is largely a
volume based industry they play a very vital role for business growth. Tapping
institutions is a major concern for Tropicana department and leaving any of the
institutions means leaving lots of stones untouched and thereby not tasting a big
amount of business chunk.

According to our estimate there is an estimate of 211 crore that can be generated
from these institutions wit in one year. A mammoth 67% of business comes from
schools, followed by 10% for gymnasiums and 7% from hospitals.

School domination also helps company to form a stable customer base because
children who are drinking Tropicana since their childhood will keep on using their
services as they grow up.




51
Interpretation and Analysis
Market under Scanner:-Karol Bag


                     Karol Bag Tropicana Status
             No Juice Market     Real Only       Tropicana Only         Both Present



                                                 13%              3%


                      54%
                                                              30%




               Gatorade Availability Status-KArol
   Shops
 Gatorade
                             Bag
  Present
    11%




                                                                        Shops
                                                                      Tropicana
                                                                       Present
                                                                         89%




      Shops           No Juice         Tropicana                                  Gatorade    Both
                                                         Real Only
     Covered           Market            Only                                     Present    Present


        30                  4                9                    1                    3        16




52
Karol Bag:-Deciphering Ground Reality
Karol bag, being a shopper’s paradise attracting high footfall of 2000 people a
minimum to say presents a huge opportunity to Tropicana and Gatorade. With
Gaffer-Market nearby it also attracts a lot of customer.



30% of Karol Bag has Tropicana Share, 3% is the share of Real whereas a
staggering 54% is a non juice market that in itself is a hidden opportunity to increase
business of the Tropicana.

Out of 16 shops where Tropicana is present ,Gatorade is present in only 3 shops
,making it present in only 11% of shops         leaving    out huge chunk of 89% of
Tropicana present shops. So there is a huge scope of improvement for Gatorade.

In W.E.A Karol bag P.S.R comes to take order at six in the evening. Since, that is a
peak season for retailers want P.S.R to come in morning. It should be noted that
Dabur’sP.S.R arrives at 12 P.M in those shops. Tropicana and Gatorade are
completely missing from 7 eating joints in Gaffar Market located just on the road
side.

Overall looking at the big picture a great execution and sincere efforts of Central
executive make it strength for Tropicana.Conversion of 54% non juice market into
juice market succored by leadership of Tropicana presents Karol Bag as a place
ofenormous opportunities to “mint money” .




53
Market under Scanner-Gole Market, C.P, PaharGanj

             C.P,Paharganj,Gole Market-Tropicana
                            status
                                                   real only
                                                      6%
                                 no juice
                                  21%

                                                        trop only
                     real+trop                             46%
                       27%




         Shops    Gatorade Cross Selling Status
       Gatorade
        Present
          11%




                                              Shops
                                            Tropicana
                                             Present
                                               89%




Consolidated Data =>Gole Market, C.P, PaharGanj


      Shops        No Juice           Tropicana                     Gatorade    Both
                                                        Real Only
     Covered        Market              Only                        Present    Present


        33             7                    15                 2        3          9




54
GoleMarket, C.P ,PaharGanj:-Deciphering Ground Reality
Tropicana’s Share is 46% in GoleMarket,CP,Pahar-Ganj. ,6% is the share of Real
whereas 21%% is a non juice market that in itself is a hidden opportunity to increase
business of the Tropicana and at 27% shops both Real and Tropicana are present .

Out of 33 shops where Tropicana is present, Gatorade is present in only 3 shops
,making it present in only 11% of shops       leaving   out huge chunk of 89% of
Tropicana present shops. So there is a huge scope of improvement for Gatorade.

In ShaheedBhagat Singh market visual merchandising needs an overhauling .In
spite of being available across the entire width showcasing definitely needs
improvement

Adding to it, Tropicana’s complete range of 100% is missing from A-class counters.

Gatorade and Tropicana were found absent from the canteen of Lady Harding
medical college.

Overall looking at the big picture a great execution and sincere efforts of Central
executive make it strength for Tropicana that can further be strengthened.
Conversion of 21% non juice market into juice market, presence of canteen of
prestigious Lady Harding College combined with great visual merchandising
succored by posh residence makes this region a ticking time bomb that is still to
explode.




55
Market under Scanner-ChandniChowk

               Tropicana Status-Chandni Chowk
                                                    trop
                                                    only
                                                     0%     real+trop
                                    real only
                                      12%                      8%




                     no juice
                      80%




                Gatorade Cross Selling Status

                       0%




                                                   Shops Tropicana Present
                                                   Shops Gatorade Present
                      100%




      Shops       No Juice      Tropicana                       Gatorade      Both
                                                Real Only
     Covered       Market         Only                          Present      Present


        25            20             0               3                  0        2




56
ChandaniChowk:-Deciphering Ground Reality
ChandniChowk presents a very sorry picture for Tropicana and Gatorade.
Staggering 80% is a non juice market with 12% real domination. Width wise and
depth wise coverage of our product here lacks as Tropicana is found in only two
shops .Out of 25 shops P.S.R has visited only two shops which cut a sorry picture for
Tropicana and Gatorade.


ChandniChowk forms heart of Old Delhi and attracts a lot of people including many
foreigners who visit daily with high brand awareness. There are many eating places
here and Tropicana and Gatorade can be made parts of many stores around here
So we can say Tropicana Division is keeping many stones untouched in this region.


A positive point of view can convert this road block into successful business
avenue for Tropicana if execution is done correctly and up to the mark with strong
merchandising.




57
Market Under Scanner-Jhandewalan


                               Jhandewala-Status Tropicana
                                            Gatoraid Only
                                                 7%


                                 Tropicana Only
                                      27%                           No Juice
                                                                     53%




               Real Only
                  7%
                           Real+Tropicana
                                 6%




                               Gatorade Cross Selling Status
                Shops Gatorade
                   Present
                     17%




                                                          Shops
                                                        Tropicana
                                                         Present
                                                           83%




      Shops          No Juice          Tropicana                      Gatorade    Both
                                                        Real Only
     Covered          Market             Only                         Present    Present


        14                 8                 4               1             1         2




58
Jhandewalan:-Deciphering Ground Reality
Videocon Bhawan is the landmark for Jhandewalan. Tropicana domination is 9%
followed by real at 7%.Both products are simultaneously available with 7% shops
Mammoth 57% is the no juice market. Gatorade only covers 17% of all available
shops for Tropicana leaving a massive 83% shops untouched. This area is special
as it attracts a lot of educated and aware population due to presence of their
workplace at this location
Compared to real Tropicana poses as a winner but cross-selling of Gatorade needs
big needs improvement as only 17% of Tropicana present shops are covered by
Gatorade.
Visual merchandising needs a resurrection. Gatorade presence is not felt anywhere
in display except one shop, similarly no danglers, shine boards, banners for
Tropicanawere present. Eating joints near cycle market and Videocon Bhawan are a
good place to do some major business of Tropicana 200ml and Gatorade R.T.D.
Merchandisers as well as salesman need to pull up their socks in this region to
explore its potential.




59
Market under Scanner-Sadar Bazar



                       SadarBazar -Tropicana Status
                            Real Only   No Real No Tropicana



                                                22%




                            78%




      Shops    No Juice     Tropicana                          Gatorade    Both
                                           Real Only
     Covered    Market        Only                             Present    Present


         9         7              0              2                 0          0




60
Sadar Bazar:-Deciphering Ground Reality
SadarBazar on the footprints of Sadar Bazar presents a very sorry picture for
Tropicana and Gatorade. Tropicana is physically absents from all shops though
there are many locations where it can serve as hot cake.


Survey also reveals that people are interested in buying Tropicana and Gatorade but
No representative of Tropicana division visits here.


This place can also work as Great Avenue for selling juice in festival season. Sadar
Bazar is very famous part of old Delhi and attracts lot of localities as well as tourists
with high brand awareness. Every day it attract a huge footfall of not less than 7000
.So we can say Tropicana Division is keeping many stones untouched in this Sadar
Bazar.


A positive point of view can convert this road block into successful business avenue
for Tropicana if execution is done correctly and up to the mark with strong
merchandisingSadar Bazar can reap benefits for the Tropicana division.




61
Market under Scanner-South Patel Nagar




                  Real
                         South Patel Nagar-Tropicana
               +Tropicana
                  13%



                Tropicana Only                      No Real No
                     12%                            Tropicana
                                                       31%




                                      Real Only
                                        44%




                         Gatorade Cross Selling Status
                                 Shops Tropicana     Shops Gatorade



                                     25%




                                                               75%




      Shops    No Juice          Tropicana                            Gatorade    Both
                                                   Real Only
     Covered    Market             Only                               Present    Present


        16           5                 2                7                 1          2



62
South Patel Nagar:-Deciphering Ground Reality


Scenario of Tropicana domination comes to a halt at South Patel Nagar.Real share
is huge 44% when compared to Tropicana’s meager share of 12%.No juice market
comprises of healthy 31% with both products being present at 13% shops.

Gatorade has acquired 25% shops and it still have to cover 75% of uncovered
Tropicana stores. Also cross selling of Gatorade needed to be pushed.

Visual merchandising is good here but can be made better .

Out of 16 shops covered P.S.R has not visited12 shops clearly telling the reason of
Tropicana lagging behind. With residential areas in the vicinity and common middle
class with increased spending power coming here, this area possess a very lucrative
market with enormous potential for rise of Tropicana and Gatorade.




63
Market under Scanner-East Patel Nagar and Rajinder
Nagar



                  East Patel Nagar, Rajinder Nagar-Tropicana Status

                                                                   No Juice market
                                              Real Only                  4%
                                                14%

                    Both Present
                        53%                               Tropicana Only
                                                               29%




                       Gatorade Cross-Selling Status

                                   Gatorade
                                    Present
                                     23%


                                                    Tropicana
                                                     Present
                                                       77%




      Shops    No Juice       Tropicana                         Gatorade              Both
                                              Real Only
     Covered    Market          Only                            Present              Present


        28         1               8                4                 7                 15



64
East Patel Nagar and Rajinder Nagar-Deciphering ground reality


Above avenue present a great avenue of business for Tropicana and Gatorade. With
affluent and highly aware customer base living in the vicinity this market poses a
huge potential for Tropicana and Gatorade. Tropicana is leading the area with 29%
exclusive availability with real having around 14% exclusive availability at the stores
.Both are present at 53% shops and meager 4% no juice market..

Just 4% of no juice market corroborates the statement that this place is a great place
for the Tropicana and Gatorade y.

Gatorade needs to push itself more in terms of cross-selling as currently it is
covering only 23% of Tropicana available shops with 77% untouched.

Visual merchandising is great at this place with two shop in shops also found.

Retailers are facing issue of delay in supply of Gatorade R.T.D (ready to drink)

.Keeping retailers happy, filling the gaps in the supply and growing width wise is the
key to success in the above mentioned area.




65
Market under Scanner-West Patel Nagar



                   West Patel Nagar-Tropicana Status

                                   Real +Tropicana
                                         22%
                                                        No Juice Market
                          Tropicana Only                      50%
                               14%

                                     RealOnly
                                       14%




                          Gatorade Cross Selling Status
               Gatorade
                Present
                  17%




                                                      Tropican
                                                      Present
                                                        83%




      Shops        No Juice          Tropicana                      Gatorade    Both
                                                     Real Only
     Covered        Market             Only                         Present    Present


        14                7                2              2               1        3




66
West Patel Nagar-Deciphering ground reality

In West Patel Nagar market real’s is exclusively available in 14% shops and same
stands true for Tropicana. Both of them are together present at 22% of shops. A
staggering 50% of market is no juice market.

Gatorade id present in only 17% coverage area of Tropicana shops.

With both competitors equally balanced one who will convert the 50% non juice
market into juice market will emerge as the winner. These new outlets will also make
product visible across the entire market. West Patel Nagar market is a great example
of traditional trade and successful execution with powerful merchandising over here l
enable access to whole new customer base and new opportunity for their ever-
growing business.




67
Interpretation and analysis for Sales
Exercise

We were able to sell 33 mono cartons of Gatorade, and 2 cases of Tropicana and
open 11 new accounts.




      11 new       sold 33        5 bottles                         1 case
                                                    2 Cases
     accounts    monocarton       Gatorade                        Tropicana
                                                 Tropicana 1L
      opened      gatorade          R.T.D                           200ml




                          Billing                   • Tropicana
                         Amount                     • Rs.2052

                          Billing                   • Gatorade
                         Amount                     • Rs2675

68
a) After visiting West Delhi brief was re instated that there are a lot of market gaps in
        execution of Tropicana and Gatorade.



     b) Visual merchandising needs to be resurrected in this region to have a higher share
        of eyeball of customer.



     c) Clients are not aware of Brand Gatorade and most of them don’t know that it is a
        quality product from PepsiCo



                Monthly Sales All Shops              Rs.18896
                Yearly Sale-11 shop                  Rs.226752(Rs 2.26 L)


     d) The body gear gym can do wonders for the sales of Gatorade and gives us an idea
        that Gyms are the perfect place to sell Gatorade and generate lot of cash for the firm.
            a. If one in one week we are able to sell 5 cases of R.T.D of Gatorade to Gym
                (not a huge amount for gym with footfall of more than 100 a day) and 5 mono
                cartons of Gatorade ensures a monthly sales of Rs 15268 and for mono
                carton amount is Rs 1520.So yearly sales come out to be Rs 2Lakh app.




69
Competitor beverages Margin
Analysis:-
Competitor margin analysis is very important from Tropicana’s division point of view.
This enables them to keep a track on competition with latest findings..

This exercise is very exhaustive as retailers are reluctant to tell the trading prices to
anyone. Similarly it is a daunting task to find out distributors of all the competitors.




Understanding Questionnaire-Competitor’s Margin:-

S.No    Field           Underlying Reason
1       Company         Name of the company e.g. Parle Agro
        Name
2       Product         About product of company e.g. Frooti
3       Pack Size       Quantity of product –e.g. 200ml
4       M.R.P           Maximum Retail Price
5       T.P(Trader      Price at which trader receives the product
        Price)
6       T.M(Trader      Margin of trader in terms of percentage
        Margin)
7       Distributor     Price at which distributor receives the product
        Landing
8       Distributor     Margin of Distributor in terms of Percentage
        Margin
9       Scheme          Schemes offered with cases to traders/distributors e.g. 1 bottle free
                        with one case/additional discount in terms of percentage




70
Traders and Distributor Margins

Company         Catego   Pack Size     MRP          TP      TM      Distributor      DM           Schem
Name            ry                                                  Landing                       es
PI              Juices   200ml         22           19.1    15%     18.05            6.00%        5%
                         100%                       3
                         200ml ROR     18           15.6    15.0    14.91            6.00%        5%
                                                    5       0%
                         1ltr 100%     85           73.9    15.0    69.73            6.00%        5%
                                                    1       0%
                         1ltr ROR      75           65.2    15.0    62.11            6.00%        5%
                                                    2       0%




Company      Category    Pack         MR      TP         TM         Distribut     DM          Schemes
Name                     Size         P                             or
                                                                    Landing
Parle Agro   Frooti      200ml        10      8.60       14.00%     8.19          5.00%       volume
                                                                                              based
                         1.2l         45      41.0       8.89%      39.05         5.00%       volume
                                              0                                               based
                         600 ml       25      22.9       8.40%      21.81         5.00%
                                              0
                         2l           70      63.0       10.00%     60.00         5.00%
                                              0
                         1l           36      31.6       12.00%     30.17         5.00%       1 peti+1
                                              8                                               pack
                         400ml        20      18.0       10.00%     17.14         5.00%
                                              0
             Appy fizz   1l           50      45.0       10.00%     42.86         8.00%
                                              0




Company      Category    Pack        MRP      TP         TM         Distributor       DM          Scheme
Name                     Size                                       Landing                       s
Rasna        Rasna       200g         35      32.5         10.00%           30.37         7.00%
                         m
                         5gm              2       1.8      10.00%             1.68        7.00%


71
Company       Catego      Pack      MR       TP       TM       Distributor             DM         Schemes
Name          ry          Size      P                          Landing
Coca cola     CSD         300 ml        12   10.      12.50                   10.09       4.00    24 + two 3ooml
                                                  5        %                                %     bottles
                          500 ml        23       20   13.00                    19.4       3.00    24 + 3 bottles of
                                                           %                                %     kinley
                          2L            60       54   11.00                    51.9       4.00    9 + two 500 ml
                                                           %                                %     bottles




Company     Categ    Pack Size     MRP       TP        TM         Distributor         DM     Schemes
Name        ory                                                   Landing
Pepsi       CSD      300 ml        12        11        8.30%      10.5                4.3    24 + 2
India                                                                                 %
                     500 ml        23        21.7      5.40%                                 24+ 2
                                             5
                     1L            32        29.7      7.00%
                                             5
                     2L            60        56.6      5.60%      55.1                2.8    9 + 2 600ml bottles
                                                                                      0%


                     MY CAN        15        13.2      12.00                                 24 + 2 CANS
                                                       %


            NCD      SLICE         25        23.6      5.60%                                 24 + 2
                     5OO ML
                     SLICE         50        47        6.00%                                 12 + 1
                     1.25 L


                     Nimbooz       15        13.7      8.60%                                 24 + 1 bottle of
                     350 ml                                                                  Nimbooz& 1
                                                                                             Aquafina
                     Nimbooz       50        47        6.00%                                 12 + 1
                     1.25 L




Company            Category         Pack Size              MRP                 TP                      TM
Name
MOTHER             Chaach           450 ml                               10                      9.5            5.00%
DAIRY


72
0
                 sweet lassi        300 ml                        12              11.508               4.10%
                 salted lassi       200 ml                         7               6.706               4.20%
                                                                                        0
                 Nutrifit litchi    100 ml                        11              10.505               4.50%
                 Nutrifit ROR       100 ml                        10                 9.5               5.00%
                                                                                        0
                 Full cream milk    1L                            30               29.82               0.60%
                 single toned       1L                            23              22.816               0.80%
                 milk
                 Double toned       1L                            20                19.8               1.00%
                 milk
                 Standard milk      1L                            18              17.802               1.10%




Company Name         Category        Pack    M    TP        TM    Distributor      DM       Schemes
                                     Size    R                    Landing
                                             P
PepsiCo              Aquafina(min    1L      13   11.3      12.                             3 bottles on
                     eral water)                       36   80                              case
                                                             %


Camp Beverages       refreshers      500     12   9.25      22           8.75      5.40     One bottle
Pvt. Ltd                             ml                     .91                      %      one case
                                                            %
                                     1L      30   27.5      8             200      9.09     One bottle
                                                            %                        %      one case
                                     2L      50   48.3      3            43.3      10.3     One bottle
                                                            %                       0%      one case


McDowell             Mineral         1L      12    5.6      53.              5     10.7
                     Water                                  00                      0%
                                                             %


Royal Crown Cola     RC cola         300m    12   9.33      22.             8.8    5.60
International                        l                      25                       %
                                                             %
                                     600m    22   13.5      38.         12.29      9.20
                                     l                  4   40                       %


73
%


Parle Agro           LMN           200m       12            9    25.         8.69     3.50   2 appy fizz on
                                   l                             00                     %    30 pieces
                                                                  %




Company      Category         Pack        MR       TP           TM        Distributor        DM      Sche
Name                          Size        P                               Landing                    mes
Nestle       Lactogen ( Tin   500 gm      20       188.           9.00%
             packing)                         7     37
                              1000        41       373.           9.00%
                              gm              0         1


Westin       Mineral Water    1 ltr       12            5        58.30%               4.1    18
                                                                                             %


Del Monte    Juice            240ml       25       21.2          15.00%             20.18    5.00
                                                        5                                        %


Kissan       Squash           700ml       95        85           10.52%


Kingfisher   mineral water    1 ltr       12        7.9          34.10%




74
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition

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35643269 juice-market-analysis-tropicana-competition

  • 1. Qwertyuiopasdfghjklzxcva;pl;aloknm qwertyuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmqwertyuiopasd fghjklzxcvbnmqwertyuiopasdfghjklzx Juice Market Analysis-Tropicana & cvbnmqwertyuiopasdfghjklzxcvbnmq Competition wertyuiopasdfghjklzxcvbnmqwertyui Section B opasdfghjklzxcvbnmqwertyuiopasdfg 3/4/2013 hjklzxcvbnmqwertyuiopasdfghjklzxc Vaibhav Jain vbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmrtyuiopasdfghjkl zxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwert yuiopasdfghjklzxcvbnmqwertyuiopas dfghjklzxcvbnmqwertyuiopasdfghjklz xcvbnmqwertyuiopasdfghjklzxcvbnm
  • 2. Table of Contents Review of Related Literature ................................................................................................. 7 FMCG Industry Snap Shot: ................................................................................................. 15 FMCG industry size .............................................................................................. 15 Category Wise Share of Sector: ........................................................................... 16 FMCG Growth: urban and rural ............................................................................ 16 India: Consumption Story..................................................................................................... 18 Segmentation analysis for fruit juice ............................................................................... 19 Geographic segmentation: .................................................................................... 19 Demographic segmentation: ................................................................................. 19 Socio-economic segmentation: ............................................................................. 20 Psycho graphical segmentation: ........................................................................... 20 Details of Actual work undertaken ...................................................................................... 23 Tropicana-Impulse Buy ...................................................................................... 23 Tropicana: Extremely Lucrative product for Retailer ............................................. 23 Classification of Market: Delhi & NCR .................................................................. 25 Understanding Market Scenario:-Faridabad ......................................................... 28 Understanding Reporting Hierarchy and Responsibilities:-................................... 29 Myopic Hierarchy View-Faridabad ........................................................................ 30 Understanding -Merchandising/ Displays: - .......................................................... 30 Distributor’s Role .................................................................................................. 31 Understanding Mechanics of Distribution Channel ............................................... 32 Distributor Web in Delhi &NCR(Faridabad & Gurgaon) ........................................ 36 Faridabad Market:- ............................................................................................... 38 S.W.O.T analysis of Faridabad Tropicana Market ........................................................... 39 Area Details .......................................................................................................... 40 Birds Eye View-Central Delhi .............................................................................................. 41 Coverage Areas-Finding Tropicana Gaps ............................................................ 41 Questionnaire Details for Tropicana –Central Delhi .............................................. 42 2
  • 3. Survey Form-Explained Logic & Underlying Need .................................................. 43 Sales exercise:- .................................................................................................... 44 Pricing of Tropicana and Gatorade ....................................................................... 44 Sales Progress:- ................................................................................................... 45 Estimation Exercise .............................................................................................................. 47 Estimation Exercise .............................................................................................. 48 Understanding Fields -Manpower Estimation ....................................................... 48 Deciphering-Man power Estimation ...................................................................... 48 Market under Scanner:-Karol Bag ........................................................................ 52 Karol Bag:-Deciphering Ground Reality .................................................................... 53 Market under Scanner-Gole Market, C.P, Pahar Ganj.......................................... 54 Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality ................................. 55 Market under Scanner-Chandni Chowk ................................................................ 56 Chandani Chowk:-Deciphering Ground Reality ....................................................... 57 Market Under Scanner-Jhandewalan ................................................................................ 58 Jhandewalan:-Deciphering Ground Reality .............................................................. 59 Market under Scanner-Sadar Bazar ..................................................................... 60 Sadar Bazar:-Deciphering Ground Reality ................................................................ 61 Market under Scanner-South Patel Nagar ............................................................ 62 South Patel Nagar:-Deciphering Ground Reality ..................................................... 63 Market under Scanner-East Patel Nagar and Rajinder Nagar .............................. 64 East Patel Nagar and Rajinder Nagar-Deciphering ground reality ....................... 65 Market under Scanner-West Patel Nagar ............................................................. 66 West Patel Nagar-Deciphering ground reality .......................................................... 67 Understanding Questionnaire-Competitor’s Margin:- ............................................ 70 Traders and Distributor Margins ........................................................................... 71 Findings of Study:- ................................................................................................................ 78 Summarized data s for Central Delhi is as follows .......................................................... 78 Consolidated Graphical Findings –Central Delhi .................................................. 79 Findings Consolidated –Central Delhi................................................................... 80 3
  • 4. Below are the consolidated findings for Central Delhi........................................... 80 Consolidated Graphical Findings West Delhi ........................................................ 81 Areas Covered –West Delhi ............................................................................... 82 Consolidated Graphical Findings-North Delhi ................................................. 83 Area Covered-North Delhi .................................................................................. 84 This data was collected by team members. .......................................................... 84 Consolidated Graphical Findings-East Delhi ................................................... 85 Findings-Estimation Exercise ............................................................................... 87 Finding Distributor details:-Unified ........................................................................ 88 Reaching Distributor Point:- ....................................................................................... 88 Infrastructure:-................................................................................................................ 89 Expenses of Distributor:- .............................................................................................. 90 Dissatisfied Distributor:- ............................................................................................... 91 References and Bibliography. ........................................................................................... 103 4
  • 5. Title of the Project undertaken Juice Market-Tropicana & Competition Analysis Need & Objectives of the project Tropicana business for PepsiCo in Delhi is not reaping profits for the firm. PepsiCo’s Tropicana in juice market faces a daunting challenge from Dabur's Real in Delhi. Dabur’s has staggering 60% market share in Industry whereas as of now Tropicana stands at meager 20%.So clearly there is a visible gap in terms of market presence where Tropicana is lagging.According to survey done by AC-Nielson ,out of 60,000 shops Tropicana is present only in 12000 shops and price of knowing the name of shops cost 12L to company/ Need of this project was felt as company wanted to depict the real market scenario from Quality man power, free from any biases and presenting the grass root level reality of the product’s presence in Delhi region. After taking the feedback/suggestions from summer trainees they can work on their soft spots. Secondly, company require practically innovating strategies on how to increase sales figure from 75 Crore to 200 Crore-which clearly focuses on the big picture and hence, enabling the brand Tropicana to increaseits appeal and value. Also the untapped shops asks for more resources for better coverage and better execution. On 17-04-2010 PepsiCo launched their new product Gatorade Sports Mix Company’s aim is to make sure that Gatorade reaches the counter where Tropicana is already present and also to make clients aware of the product The following are the objectives of the product undertaken: 1. Find the market “Where Dabur’s Real is present but Tropicana is missing??”-directly enabling the Tropicana to increase its presence across 5
  • 6. new consumer base in turn increasing sales and hence forth increasing its revenue 2. Calculating hidden sales from untapped markets and doing human resource estimation. 3. Finding places where PepsiCo can sell its Tropicana in high volumes that differ from traditional trade. E.g. placing Tropicana within the cafeteria of Life Insurance Corporation facility located in “Canaught-Place” or placing Gatorade at various fitness centre like Goldie’s-Gym to give incremental growth to organization and hence increase its value. 4. How to optimize supply chain of Tropicana? 5. Why Dabur’sReal is ubiquitous across Delhi when compared to Tropicana? 6. How their business model differs? 7. Do Competitive analysis of margins and scheming of beverage industry-find out the retailer margins and distributor margin of competitor beverages. This will enable organization to know what offerings are competitors making to clients, 8. Preparing a blue print on how to turbo charger the sales of Tropicana from 75Crore Last year to 200Crore this year The entire project was divided into three phase: Market Gaps • Finding untapped market for tropicana • Find out market share of Tropicana and Real • Improvement -Recommendations Estimatie Exercise • Calculating manpower needed to cover untapped shops • Finding untapped sales potential Sales Exercise • Hands on Experience for Tropicana/Gatorade • Traditional Trades-West Delhi 6
  • 7. Review of Related Literature The study of related literature for conducting research is important and helpful in understanding the need for the research undertaken. It is also done in order to familiarize oneself with the work that has been done in the areas of one’s interest and to get some useful information in order to understand the problems and issues of the research topic. Thus, it was essential to review the relevant literature for the variables of feeling of alienation and frustration and the effect of guidance on the above mentioned variables of mothers of mentally challenged children. Only the major research findings are given here below. MARKETING: Marketing is an integrated communications-based process through which individuals and communities discover that existing and newly-identified needs and wants may be satisfied by the products and services of others. Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to buy or sell goods or services. The Chartered Institute of Marketing, which is the world's largest marketing body, defines marketing as "The management process responsible for identifying, anticipating and satisfying customer requirements profitably. Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, 7
  • 8. anthropology and neuroscience, the profession is now widely recognised a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also infamous for re-inventing itself and its vocabulary according to the times and the culture. According to Boone Kurtz Mackenzie Snow,“Marketing is an organizational function and a set of process for creating, and delivering value to customers and for managing relationships in way that benefit the organization and its stakeholders” MARKET SHARE: Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research (generally desk/secondary research, although sometimes primary research) to estimate the total market size and a company's market share. 8
  • 9. According to David Campbell, George Stonehouse, Bill Houston (1999) ,market share is measure of an organizations performance with regard to its ability to win and retain customers. It can be measured by either volume or by value. Malcolm McDonald(2002), highlights thatMarket Share is the proportion of actual sales(either volume or value) within a defined market, and is thus a measure of satisfying customers MARKET SHARE ANALYSIS: Market share analysis is an important part of market analysis and indicates how well a firm is doing in the marketplace compared to its competitors. It is a part of marketing research process. Stages of marketing research process Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. 9
  • 10. Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations. Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Microsoft Excel is used for data interpretation. 10
  • 11. Cross Selling: Khurana, author of Information technology for retailing defines cross selling as sales techniques of selling additional products to existing customers Jane W.D'Arista (1994) highlights that cross selling merely reflect an institutions efforts to inform customer of other services available .Or it may involve explicit packaging arrangements ,in which access to one service depends on purchase of another According to GalitShmueli, Nitin R. Patel, Peter C.Bruce (2007) cross selling is an opportunity. Once a customer has "taken the bait" and purchase one product, try to sell them another while you have their attention Visual Merchandising Bhalla author of Visual merchandising sates that -Visual merchandising is defined as the presentation of any and all merchandise at its best:(i)color coordinated- (synchronized-colors),(ii)accessorized(related-roducts/props);and (iii)self explanatory (descriptive/illustrative) Visual merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. (New Oxford Dictionary of English, 1999, Oxford University Press) 11
  • 12. Rosemary Varley (2001) indicated that visual merchandising is used for aspect of product management that is concerned with presenting the product within a retail outlet to its best advantage. Ko Floor (2006) observed that Visual Merchandising injects life into the store as well, dramatizing the brand and merchandise offer. NirupamaPundir observes that visual merchandising is the “icing on the cake”. It’s the first tactical representation of projected merchandise that the customer will see. 12
  • 13. Research Methodology adopted Research in common parlance refers to search for knowledge The term research refers to the systematic method consisting of enunciating the problem , formulating a hypothesis collecting the data , analyzing the facts and reaching the certain conclusions either in the form of solution towards the concern problem or in certain generalization for some theoretical formulation . Research Methodology is a way to systematically solve the research problem .It may be understood as a science of studying how research is done scientifically. For completing the project work, data inputs were collected from the following sources: Primary Data: Collected data through discussion with the Sales manager/Area sales manager of PepsiCo. Secondary Data: Collected data from personnel manual of Pepsi. Collected data from different magazines, journals, News papers and Internet. Research method being followed is Survey Method and Observations. The sampling unit is the basic unit containing the elements of the population to be sampled. Sampling unit for the study include different retailers of Central Delhi. After covering particular market data digging is performed and consolidated results of each market is shown in organization in graphical format along with suggestions/scope of improvement to maximize market penetration of our product. This easy to understand data present the unbiased picture of market to the 13
  • 14. organization and helps them to create value for their product to customers by giving them better services, higher management by letting them know their soft spots and finding areas of immense potential in markets .Output of this survey was given as feed back to Territory Development Manager and Area Sales Manager ,which when consolidated is presented to upper management ,discussed in organizational reviews .Area wise input is given to central executive of that region enabling him to know the opportunities available for him to do more business which in term helps him to achieve his target and ultimately yielding to better appraisal and growth in firm. 14
  • 15. FMCG Industry Snap Shot: Indian FMCG Personal care & Steady double digit industry size Food products growth in the estimated at dominate the sector around US$ 25 bn. sector Many categories Rural India are currently small contributes c. 33% andoffer huge of the overall potential FMCG sector FMCG industry size In Rs billion MAT DEC 2008 MAT DEC 2009 FMCG Industry Size 1,023.9 1,161.1 Growth rate (%) 13.4% Source: AC Nielson 15
  • 16. Category Wise Share of Sector: Hair Care 7% hair care OTC 7% fabric care baby products 11% care 4% 2% others Food Products 5% 40% household Personal Care 4% 20% Source:AC Nielson 40% share of food products in F.M.C.G offers whole set of opportunity for juice segment. FMCG Growth: urban and rural 16
  • 17. Juice Market -India Indian Juice industry has emerged as a great opportunity for non-alcoholic drinks market and poses great opportunity for many firms. According to RNCOS (industry research firm) latest research, “Indian Non-Alcoholic Drinks Forecast to 2012”, the juice market (including both fruit and vegetable) has emerged as a fastest growing segment of the Indian non-alcoholic drinks market over the recent past. Market research foresees the Indian market for fruit/vegetable juices to grow at a CAGR of around 24% (in volume terms) and around 30% (in value terms) from now till 2012. It is learnt that convenience and natural taste together with health-consciousness has played an important role in the growth of Indian juice market in recent years. Sales have been boosted by the changing lifestyle of the Indian middle-income group amid rapid urbanization. Furthermore, it has been seen that cola sales have fallen dramatically after rising health concerns associated with it and this seem to have benefited the fruit beverage industry. Tetra packs have emerged as a boon for providing practically fresh and preservative-free juice. Number of Indian players have been entering or expanding their portfolio into the segment, after acknowledging the enormous future market potential. Dabur India, for instance, recently planned to expand its offering under flagship fruit drink brand 'Real'. It is also planning to add two more variants as it eyes a bigger pie of the Indian fruit-based juice market. Another player, Parle Agro, the maker of mango drink Frooti, announced its entry into the 100% juice market in late 2008. Other major brands include PepsiCo’s Tropicana and Coca-Cola’s Minute Maid. 17
  • 18. India: Consumption Story Estimated juice market in India is worth RS 600Crore.So with an ever-growing customer base of Middle- Class, juice making companies will have wider access to consumers who can shell out money to buy juices. So we can say with ever increasing disposable income and increasing awareness among consumers there is immense potential in Juice market in upcoming years. 18
  • 19. Segmentation analysis for fruit juice Introduction: India is the second largest market for foods and vegetables in the world. The production of fruits account for 48.5 million tones. However, the fruit juice market has not been fully tapped because of poor infrastructure and storage facilities, and highly unorganized market. However, with people turning more health conscious, the non-carbonated beverages have become one of the fastest growing businesses. The major growth drivers in fruit juice market are increase in health consciousness, disposable incomes, and more sophisticated cocktail culture. The category of fruit juices are dominated by Pepsi with its brand Tropicana, Dabur Foods with its brand Real, Coca Cola India with its brand Maze. The market now has a variety of fruit juices like 100 % fruit juice, nectar, fruit drinks, fruit-based milk drinks and fruit-based soya milk. Geographic segmentation: The fruit juice market share is concentrated in the metros like Delhi, Mumbai, Kolkata and Chennai; mini metros like Benguluru, Hyderabad, Pune, Chandigarh, Ahmadabad and small cities like Ludhiana, Amritsar and Jalandhar. The growth of the fruit juice market increased with the proliferation of the supermarkets and malls in the metros and mini-metros. As a growing category, fruit juices must fight the battle to win the shelf space of markets. Hundreds of new beverages are introduced every year. Even though more supermarkets are being built in a larger size, their shelf space is still unable to accommodate all of these new beverages in the market. Demographic segmentation: The regular consumers of fruit juices are children, educated housewives, executives, working professionals, young health-conscious adults and the ageing population. The fruit juice companies have targeted all the age groups by different juices. The customized packaged fruit juices are targeted at kids below 6 years. They are available in number of flavors and fortified with calcium which is required in higher 19
  • 20. quantities by children below 6 years of age. Further, they are available in 200 ml packs which are just right for kids. The different pack sizes like the half and one liter pack are aimed at increasing the in-home consumption of juices. Fruit juices are an instant source of energy which helped in tapping the sportspersons and kids who are actively involved in sports. For example, Pepsi’s Tropicana has tied up with equestrian sports and polo clubs to build bridges with the well-heeled young adults. The increasing cost of health care has helped widen the customer base to the ageing population. Also, as fruit juices are rich in energy and nutrients, ill and post surgery patients on liquid diet have increased the customer segment. Socio-economic segmentation: The fruit juice market has shown a tremendous growth in the recent years. One of the major reasons for this is the increase in the disposable income. Generally, individuals belonging to higher and middle socio-economic strata are the regular consumers of packaged fruit juices. However, the 65 ml packs of mango Frooti launched in Pune by Parle Agro for Rs. 5 has aimed at broadening the socio- economic customer segment. Psycho graphical segmentation: Healthy living is a growing trend. However, fruit juices have more to offer than just health. They provide an easy gateway to a healthy lifestyle. Consuming fruit juices is almost an effortless switch compared to dieting or exercising and it does not require major behavioral change. Active and health oriented people are no longer the primary consumer of fruit juices. Nowadays, the consumer base for fruit juices is broader. These products attract a wide range of consumers ranging from those having specific health needs to those simply looking for healthy refreshments. In the next few years, the fruit juice industry will be challenged by these savvy, confident, and opinionated consumers. They no longer see these beverages as simple thirst quenchers with health benefits. They see these products serving other needs that fit a simple and logical proposition, such as ease of preparation, high level of 20
  • 21. availability, ergonomic packaging, portability, and other factors that make up an individual's perception of value. In order to attract the kids segment, the Tetra packs have animated fruit characters which communicate the fun, taste, and nutrition aspect. Moreover, the parents can give their children a portable beverage that is a healthy alternative to the nutritionally bankrupt soft drinks. They are designed in such a way as to fit in the Tiffin boxes.Further, there has been an increasing interest in more natural, organic products. Consumers perceive this as the next best thing to having a fresh fruit. Convenience is no longer the selling point, the naturalness is. However, there are certain consumers who are wary of packaged food, as they feel it has preservatives and are not fresh. Thus, companies like PepsiCo, Dabur Foods Ltd. have developed preservative free fruit juice offering consumers with a great taste and wholesome nutrition of freshly squeezed juice in hygienic and attractive packs. However, despite of health benefits, some youngsters love to drink only carbonated soft drinks. Thus, some companies have developed carbonated fruit juices which do not contain caffeine and caramel coatings that are harmful to health. The increased consumer interests in fruit juices can also be attributed to the addition of minerals, vitamins and herbs associated with health, vigor, longevity and enhanced quality of life,. There is a niche which is now demanding more top quality, premium products and produced with added vitamins, minerals, fibs, soy or omega- 3. There are niche customers who take juice as a part of their diet and do not bother about the taste. For many consumers, flavor is the deciding factor. While orange, apple and mango dominate the market, other juices such as grapefruit, watermelon and orange-carrot combination are also appealing to some. In order to match the traditional taste buds, traditional recipes like AaamkaPanna and jamun variants have been introduced in the market. Conclusion: Product development and positioning will need to become more targeted, shifting from mass market to a mass customized approach in which particular audiences are identified by lifestyle, ethnic group and other factors. Thus, the fruit market is very 21
  • 22. lucrative. Among the market drivers are the increasing cost of healthcare, ageing population, consumer health awareness and choice and scientific evidence of certain ingredients. 22
  • 23. Details of Actual work undertaken Tropicana-Impulse Buy PepsiCo sees Tropicana as an Impulse buy in India hitherto and not a planned purchase. Aim of Tropicana division is to make it a planned purchase within Indian community and make it a part of consumer’s daily breakfast. Impulse buy means an unplanned buy .When a family is going to market for grocery shopping, name of Tropicana Juice is never mentioned in the shopping list. It is only at the moment when consumer enters a shopping store and sees Tropicana he picks it up and buy. So SHELF-VISIBILITY is an important facet for sales of Tropicana. F.M.C.G goods like tooth paste, soap are planned purchase. Aim of Tropicana Division In PepsiCo’s Gurgaon office is to make Tropicana a planned purchase rather than an impulse buy. Tropicana: Extremely Lucrative product for Retailer Being a great health product for consumer it is also a very lucrative product for retailer as well. It offers a trade down margin of 15% in addition to additional scheming that can go up to 5% for Traditional Trade. Margin of Distributor is 5%. For easier assimilation look at the below table Tropicana 1 L Price INR Cost Distributor 62.10 Cost Retailer 65.21 Cost Consumer (M.R.P) 75 Margin Retailer 9.78 23
  • 24. So a 1L pack of Tropicana with M.R.P 75INR cost 65 INR to Retailer generates a handsome margin of 9.7 INR. So a Wills Navy cut Cigarette costing 5INR generates margin of 50paisa to retailer. So on selling 20 cigarette retailer generates a revenue equivalent to selling 1 L Tropicana. So a sale of 100 INR retailers of 20 cigarettes makes the same amount from sale of 75INR Tropicana 1L. 24
  • 25. Classification of Market: Delhi& NCR In Delhi Tropicana and Gatorade is sold in 3 trades Modern Trade Stand Alone Market Modern Classification:Delhi&NCR Trade Traditional Trade 1. Traditional Trade-Traditional Trade is defined as all that trade that flows through traditional outlets, such as kiosks, corner shops, local mom and pop shops, open markets, etc. It represents all trade with the exception of that which flows through retail chains, supermarkets, or super stores Key Characteristics a) Traditional trade is characterized by a large complex network of independently owned retailers and distributors carrying primarily local or regional brands. b) It is the prevailing form of consumer trade in emerging markets. c) It can be difficult to penetrate for both national and multi-national firms given its highly fragmented nature, yet it serve as the conduit for reaching the largest percentage of the consumer population Importance of Traditional Trade can be very easily judged by the following data 25
  • 26. For Tropicana division Traditional Trade forms heart of their business,so they make their best to maximize the penetration at T.T. Modern Trade:-Modern Trade is defined as all that trade that flows through retail chains, supermarkets, or super stores, etc. Key Characteristics:- a) Above an indexed covered area (different users have different indices but safe to say 3000 sq. ft. as the minimum) b) SKUs above an index number (again, different for different users, but again safe to peg it at above 2500) c) Bulk Buying/ Inventory management d) PAN India Presence. e) Discounting (and frequently passing it out to customers as well) f) Self Service with electronic billing and credit g) Example: Big bazaar, Wal-Mart, , Reliance Fresh 26
  • 27. S.A.M.T:-To much of the extent it is similar to M.T but it may/may not have multiple chains of stores .Example:-Garg-Dastak, Needs (18 stores in Gurgaon,SRS,Big Apple,EzeeDay Tropicana Share % T.T 35 30 25 Share % 20 2008 15 2009 10 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Tropicana Share% M.T 35 30 25 Share % 20 2008 15 2009 10 5 0 Jan Feb Mar Apr May Jun Jul 27
  • 28. Understanding Market Scenario:-Faridabad Initially to have a better understanding of how things work and to get doubt cleared we were instructed to meet Central Executive of Faridabad for two days. Market Covered Sector Covered Number of Shops 28 5 29 4 30 6 Mom and Pop Shops 12 Modern Trade Vishal Mega Mart,SRS Smart Facts-Faridabad a) Suburban City-Over 2 Million Population b) Generate about 60% revenue of Haryana State c) 50% I.T collected Haryana comes from Gurgaon & Faridabad 28
  • 29. Learning’s: Faridabad- Understanding Reporting Hierarchy and Responsibilities:- One Central executive is responsible for execution of Tropicana in Faridabad. He leads a team of three P.S.R (Pepsi sales representative) and three merchandisers Before the morning visit start C.E talks with all P.S.R’s and list down progress of previous day, compares it with actual target and gives them the feedback. Also he asked for the current days plan and any issues being faced by them. Task of C.E is to execute so it’s his responsibility that Products are being executed in the market up to the mark, sort out any grievance that P.S.R is having issues with, fix out pricing of Shop in Shop. P.S.R is responsible for taking orders; managing new customer base and merchandiser are responsible for doing visual merchandising on all the shops. Mode of transportation for merchandiser is bicycle and for P.S.R is motor cycle. Each P.S.R covers daily 30 shops and merchandiser 25 shops. Every P.S.R has a Tropicana route book. It contains the following fields a) Name of Shop. b) Stock Details of Retailer c) Order Details –Previous Order Details, Current order details d) Replacements if any This route book serves as input for distributor for order processing. Also data from all P.S.R is consolidated by C.E and presented to Area Sales manager. 29
  • 30. Myopic Hierarchy View-Faridabad Central Executive-1 Merchandisers- P.S.R-3 3 This is a myopic hierarchy because it sees the market from a grass root level and deals with people that only interact with retailers on a daily basis. Understanding -Merchandising/ Displays: - Proper merchandising and display at the store level promotes sales; it promotes the consumer to switch over to the displayed brand ignoring existing brand loyalties; it persuades him to buy “now” rather than latter; and it makes him buy more than the originally intended quantity. All these are essentially sales promotional functions. While advertising can only make a consumer aware of the product or generate a desire for it, merchandising/ display often motivates a consumer to buy a product instantly. Point of purchase displays are one of the most widely used sales promotions tools. With the proliferation of brands, innovative displays have become a prerequisite for success. In the store brands compete with each other for consumer’s attention. 30
  • 31. Display Enhance Counter Pull Display at the point of purchase can be rightly describe has a “clincher” in the marketing process. When awareness and interest has been created in the consumers mind through advertising and other promotional measures, a good display in the store can help to clinch a sale. The displays are also effective in inducing brand switching. A consumer normally goes to a retail outlet to purchase his usual brand. At the retail outlet, a good display of a competition brand can command his attention and he may buy the competing brand. In other word Good display can lead to impulse buying and brand switching. A good display is the surest way to attract the consumers. It pulls the consumers to the consumers. In fact, displays have their origins in the age old saying that “goods well displayed are half sold”. Display can be of various types- window display, wall display, counter display, aerial display, or floor display, depending on where it is fixed. Display materials to constitute a large spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons, etc. To enhance the display effect, manufacturers use several gadgets and approaches. Illuminated designs, motion displays, sky writings, etc., add to the display effect. Some companies organize display units locate them at vantage points within the store to attract store traffic. Skillfully designed and strategically located display units can enhance the sales appeal. More and more firms are going in for innovative displays to give their brands visibility. Distributor’s Role There is one distributor that serves entire Faridabad region. Along with Tropicana he also deals with other products of Godrej Ambi Pure, Parachute hair oil to name a few. Distributor is appointed by the company and following points are taken into consideration while appointing a good distributor. a) Distributor needs to have good market reputation and links. 31
  • 32. b) He should have good infrastructure to carry out day to day operational activities-distributor must possess a warehouse, vehicle for delivering order and manpower who can work as P.S.R and Merchandisers. c) Other products that distributor sells also plays an important role and tells about reputation and worthiness of distributor. Salary of P.S.R and Merchandiser is paid by the distributor that later is reimbursed by the company, .P.S.R and Merchandisers are not on company pay roles. It must be noted that it is the Distributor and P.S.R who sells the product and not the Company official. So an assiduous distributor is required to ameliorate the product. Understanding Mechanics of Distribution Channel The supply chain of products in the FMCG market in India is one of the longest supply chains an industry could really have. There are as many as 5 levels of intermediaries involved in the entire supply chain through which a product passes before reaching the end consumer. What has been observed is that even though these FMCG companies are big multinationals and Indian but face a major challenge of making their products available in the market in the right quantities and in the right time. This is simply because these companies don’t really have a wide network of sales agents and other force which is required and is ideal for catering their products to the markets. This aspect is taken over by distributors, wholesalers and retailer whose margins on these products actually double the price of these products when a final consumer buys it. The margins kept by these intermediaries range from 2% to 5%. The products in this industry are transported from manufacturing units via c & f agencies or warehouse to distributors who further sell the same to wholesalers or stockiest who finally sell it to the retailers in the market. These products are transported either via roadways or railways within the domestic markets and 32
  • 33. normally don’t take more than a week to reach the retailers. FMCG products are normally a high volume ball game and products have to essentially be available in the market at all given points of time and at all given points of purchase and therefore the distribution activities are highly volatile and dynamic. The supply of products takes place virtually on a daily basis in fixed quotas or otherwise, to retailers as per their requisitions and the anticipation of demand and the performance of products in the recent past. All such criteria are taken into consideration before the quantum of products being dispatched to the next level of intermediary. Since it’s a volume game, manufacturers make all possible efforts to boost sales and promote their distributors to earn more and more orders from the retailers and wholesalers. A close check is maintained on the flow of the products on a daily, weekly, fortnightly and monthly basis to determine the trend in the business and flow of products and consumption. This activity also helps to find out drawbacks of the distribution system, if any, and rectify them within time. 33
  • 34. Distribution Cycle-Tropicana and Gatorade Factory Carry and Forward Distributor Modern Trades Wholesalers Retail Trade Consumers 34
  • 35. Tropicana is manufactured in India in Pune.From Pune goods are supplied to Carry and forward agent .Carry and forward agent furthers supplies it into two divisions:- 1) C&F Agent directly send the goods to Modern Trade like Big Bazar ,Spencer 2) C&F Agent send it to distributor. Distributor further can sell the goods to retailers or wholesalers. 1) Wholesalers further sell goods to retailer which then is received by the consumers. 2) Retailers receiving goods directly from company’s distributor can sell goods to consumers. Advantages of purchase from Companies Distributor over Wholesalers. Company WholeSalers Distributor 35
  • 36. Distributor Web in Delhi &NCR (Faridabad & Gurgaon) So there are total 12 distributors doing business for Tropicana. 36
  • 37. Average Turnover per disributor(Rs Crore) Avge Turnover 3.85 2.5 1.2 0.9 2007 2008 2009 2010 37
  • 38. Faridabad Market:- Faridabad is a developing city .Population is unevenly spread, some places are lying vacant and some places are densely populated.Since, it is a growing market retailers are very friendly .Width wise coverage is excellent and the company is working on the concept of depth. It implies that number of shops covered is healthy, but since it’s a growing depth of Tropicana can be grown, means more cases can be sold. In sector 28 there are line of shops that only keep Tropicana and not Real. People are buying Tropicana and scheme of one glass free is doing wonders for company. But places where Modern Trade and Traditional trade are located nearby concept of cannibalization can be seen.A M.T offers Tropicana at Rs 60 where as T.T is selling the same thing for Rs 75.So consumer prefers to go to M.T rather than T.T Visual merchandising needs to tighten up .Attractive merchandising are missing Proper Utilization of P.O.P material needs to be done. Consumer trends differs according to areas (sector) Counter's Infrastructure & Stock Holding Capacity differs according to the areas Also consumer still think of Tropicana as imported product and very few people know that it is a product of PepsiCo. So customer awareness is lacking Since Faridabad is a growing city many educational institutes, hotels, private organizations are mushrooming in the city, so there lies a big opportunity for Tropicana to sell. 38
  • 39. S.W.O.T analysis of Faridabad Tropicana Market Strengths • Width-wise excellent coverage(e.g.: outlets covered,facings,stock ) • Aggressive sales team. • Tropicana monopoly • Excellent Push strategy implied. • Tropicana 100% enjoys image of quality health product among health conscious. • Constantly updating counter network. • Latest glass promotion. Weakness • Visual Merchandising -Meager share of eyeball of customer • Lacking PULL STRATEGY in terms of V.M. • Big fish eating small fish-independent retailers suffering. • Still looked upon as Imported product vis-a-vis Real. • Unlike C.S.D, dedicated chillers for Tropicana missing Opportunities • Educational institutes-School, Colleges • Hospitals • Medical Store • Hotels • Government Undertakings Threat • Cheap variant ofJuices So, Faridabad is likea ticking time bomb for Tropicana that is still to explode and is area of immense potential. 39
  • 40. Survey Details: Area assigned to me was Central Delhi. Area Details Central Delhi is an administrative district of the National Capital Territory of Delhi in India. It is bounded by the Yamuna River on the east and by the districts of North Delhi to the north, West Delhi and South West Delhi to the west, New Delhi to the south, and East Delhi to the east across the Yamuna. Central Delhi has a population of 644,005 (2001 census), and an area of 25 km², with a population density of 25,759 persons per km². Central Delhi houses the central business district and high-rises. It includes Shahjahanabad (Old Delhi) which served as capital of the Mughal Empire, and is home to the monuments like the Delhi Fort and the Jama Masjid, Delhi's principal mosque. 40
  • 41. Birds Eye View-Central Delhi Coverage Areas-Finding Tropicana Gaps Areas given below were covered to find market gaps S.No Area Name 1 ChandniChowk 2 Karol Bag 3 Canaught Place 4 Patel Nagar –WestPatelNagar,EastPatelNagar,SouthPatelNagar 5 Old Rajindernagar 6 Sadar Bazar 7 PaharGanj 8 Gole Market 9 Jhandewalan 10 Shadipur 11 PaharGanj 41
  • 42. Questionnaire Details for Tropicana –Central Delhi Serial .No Fields of Questionnaire Data to be filled 1 Name of Shop Shop Name 2 Address Shop Address 3 Contact number Phone number 4 Real Present Yes/No 5 Tropicana Present Yes/No 6 Real Facing Number of facings of Real 7 Tropicana Facing Number of facings of Tropicana 8 Real Stock Estimation-Real Stock 9 Tropicana Stock Estimation-Tropicana Stock 10 Tropicana PSR present Yes/No 11 Gatorade Powder Present Yes/No 12 Visual Merchandising Excellent/Poor/N.A 13 Estimated Cases consumption in a week Consumption(week) 14 Issues/suggestion Feedback retailer/surveyor 42
  • 43. Survey Form-Explained Logic & Underlying Need 1) Name, Address and contact number of shop: - Enables speedy communication for business transactions and concerned business related exercise. Also can be used for future purposes, become a reusable component for the organization. 2) Real present:-: This tells about competitor’s availability. 3) Tropicana present:-: This tells about Tropicana’s availability. 4) Real Facing:-It implies how many packs of juices are kept on the shelf of retailer. Company pays a price to retailer for good display. Good number of Real facing display implies good sale of Real at that shop. 5) Tropicana Facing: - For every 8 facings company gives a scheming of 4% to retailer after 3 months. Facings of Tropicana are compared with respect to Real to guesstimate sales with respect to each other. Also it tells about how big is the share of eyeball of customer with respect to Real 6) Real Stock: - Competitors judgment of stock. 7) Tropicana Stock:-Used with information of Real’s stock to know competitors status... 8) Tropicana PSR present: - This will tell that is P.S.R visiting newly opened shops in the region or not. It is a hypothesis that for every 250 people there is one shop, so with ever increasing population new shops open up in the reason. It is commonly noticed that P.S.R are reluctant to visit new shops and keep on sticking to the old route plan that they have. So this tells about the un –explored avenues for selling our product. 9) Gatorade Present:- Aim of PepsiCo is to make sure that where 1L Tropicana is present, there must be one mono carton of Gatorade present too .This is a classic example of cross-selling and it checks with how much efficiency their workforce is carrying out cross selling exercise. 10) Visual merchandising: Check if merchandising done properly or not. This tells the real picture about how merchandisers are doing their job. A good merchandising is vital for healthy sales, it act as a value add for Tropicana sales and become critically important as Tropicana is considered an impulse buy. 11) Estimated Consumption: By seeing Tropicana stock we have to judge their estimated weekly consumption, If stock is less than judgment then we can pursue retailer to purchase more stock 12) Issues/Comments: - any particular issues seen/observed, suggestions by retailer or any other issue noted by surveyor. 43
  • 44. Sales exercise:- Third phase of the exercise was to use the knowledge calculated from Phase 1 and Phase 2 of the project and get some hands on experience with Sales. Task allocated to me was to cover the traditional Trade of West Delhi that o not poses a good picture for Tropicana Division and the same fact is evident from the survey done on the same region. Products to be sold were Tropicana and Gatorade(R.T.D and powder) We were instructed to start from Distributor Point every day. This used to serve the following purpose. a) Give distributor the order received from market. b) Calculate samples of product, example mono cartons for Gatorade. c) To get acquainted with distributor activities Pricing of Tropicana and Gatorade Price-Case Quantity-Casing Margin Price-Casing Scheming Tropicana100% 1L,12 piece 15% 887.0 1 carton free with 1 case or 8-10% Tropicana 1L,12 piece 15% 782.5 1 carton free with 1 Nectar case or 8-10% Tropicana 100% 200ml,30 piece 15% 573.9 1 case free with 5 case Tropicana 200ml,30 piece 15% 469.5 1 case free with 5 case Nectar Gatorade R.T.D 500ml,24 bottle 10% 763.6 1case+2 bottle free Gatorade 35 g,24 mono carton 18% 1830.5 1case+1 Monocarton Powder (1 mono carton -6 free sachet) 44
  • 45. Sales Progress:- S. Name of Shop Address Contac Quantity- Quantity- Billing(Tro Billing(Gat No t Gatorade Tropicana picana) orade) Numbe r 1 MaaDurga Store A- 987170 2 1 case-100% 800 152.52 22,MainNajabg 4070 Monocart arh on-(1 road,Uttamnag orange+1 ar lemon) 2 Madan store Premnagar,ne 935009 9Monocar 0 0 686.34 arbikaneri 4275 ton-(3 sweet(landmar orange+6l k-metro pillar emon) number 682- 83) 3 Maagaba trading wz-154,hastal 253735 1 0 0 76.26 corporation road,uttamnag 665 monocato ar n-orange 4 virdi Shop No1,Shiv 921041 6 0 0 457.56 communication Nagar,Jail 1097 Monocart Road on-(3 orange+3 lemon) Nanu bakers , Park, Behind 928996 1 1case- 1252.02 76.26 5 Jail Road, 1947 Monocart 200ml+1 case- Petrol Pump, on orange 1L New Delhi 6 Nirmal Medicos Sl-1/3,L- 931310 2 0 0 152.52 Block,hari 4016 Monocart Nagar on-(1 orange+1 lemon) 7 Chaurasiya Pan el-6,sno1,L 1 0 0 76.26 Bhandar block,harinaga monocato r n-lemon 8 Sindhi Sweet CA-19A,DDA 281242 6 Present NA 457.56 flats,Hari 58 Monocart Nagar on-(3 orange+3 lemon) 45
  • 46. 9 Mohan Medicos 104-ganesh 259916 1 0 0 139.88 medicos 44 Monocart on orange+2 rtd bottle(1 orange+1 lemon) 10 Family bakery b-85,ganesh 259903 2 Present 0 152.52 nagar 05 Monocart on-(1 orange+1 lemon) 11 The body gear c-5,ganesh 921222 2 0 0 247.95 nagar 3415 Monocart on-(1 orange+1 lemon)+3 rtd bottles 46
  • 47. Estimation Exercise Estimation plays a very vital part in business development .This helps the upper management to set the road map for future and also let them know how can they do more business. A good estimation give other employees in the department feedback for their future tasks .For example if Tropicana wants to increase its sales by 70% then it is result of some kind of estimation done earlier in business. Similarly a yearly target of Central Executive of selling Rs 10 Crore juice is result of some kind of estimation that is done earlier by upper management. Tropicana department is following resource crunch. They are in dire need of skilled manpower. So after doing market analysis across central Delhi next task was to estimate how many numbers of shops are present in regions covered in central Delhi where Tropicana and Gatorade can be sold. After calculating amount of employees needed we have to find the associated cost with them and then find out how much sales will they be able to generate. This data is then used by company for further recruitments. Following assumptions and facts were carried out while doing manpower estimate. a) PepsiCo follows the hypothesis that for every 250 person there is one shop to cater their needs. b) Population in Delhi is growing at the rate of 1.4% every year. c) Data of census-2001 was used and current population was calculated with the above growth rate. d) One P.S.R covers 180 shops in one week. 47
  • 48. Estimation Exercise Table -Manpower Estimation Area Population Shop Shop Ratio=population/shop Shop PSR 2010 covered - covered - deficit required me Jhandewalan 141928.50 20 14 7096.43 547.71 3.04 Gole+Cp 525904.50 115 33 4573.08 1988.62 11.05 Karol Bag 519930.37 170 30 3058.41 1909.72 10.61 Sadar Bazar 86656.30 7 9 12379.47 339.63 1.89 ChandniChowk 189583.59 17 25 11151.98 741.33 4.12 Rajendar Nagar 265863.38 65 14 4090.21 998.45 5.55 Patel Nagar 3947349.16 117 43 33738.03 15672.40 87.07 PaharGanj 733325.45 125 15 5866.60 2808.30 15.60 Total 64,10,541 636 183 25,006 138 Understanding Fields -Manpower Estimation S.No Field name Logic 1 Area Name of area under calculation 2 Population Shows estimated population 2010 3 Shop Covered This shows how many shops are there in this region 4 Shops Covered- Shops I covered me 5 Ratio=population This ratio shows that one shop caters to need of how many /shop people. Ideal figure is 250 6 Shop Deficit Tells how much unexplored shops are in this region Deciphering-Man power Estimation According to our estimation, there should be 25006 more shops in the above stated areas that are still to be tapped in .Also we know one P.S.R covers 180 shops in one week so to cover 25006 shops we need 138 P.S.R. 48
  • 49. Sales Forecast Estimation from Institutions This table shows immense potential in Institutions for Tropicana and Gatorade Institutions Count Estimated Consumption 1 month Yearly Consumption Embassy 58 20 case 1L100% Rs. 1,23,47,040.00 Psu Joint Venture 55 60 cases 200ml 100%,5 case 1L Rs. 2,56,17,900.00 Offices relating Sports 11 60 cases 200ml 100%,5 case 1L Rs. 51,23,580.00 Tourism and 4 60 cases 200mL,2 case RTd,1 Rs. Hospitality case powder 16,63,664.00 Sports Complex 16 25 Cases RTD,6 case powder,5 Rs. case 200ml 54,19,200.00 Colleges Under Delhi 83 40 cases RTD,60 cases Rs. University 6,46,40,400.00 Government 72 60 cases 200mL,5 case RTd,1 Rs. Establishments case powder 3,45,81,600.00 BFSI 20 60 cases 200mL,5 case RTd,1 Rs. case powder 96,06,000.00 Cooperatives 8 60 cases 200mL,5 case RTd,1 Rs. case powder 38,42,400.00 Educational and 93 60 cases 200ml,15 cases Rs. Training RTD,2case powder 5,52,25,260.00 Cultural 21 60 cases 200ml,15 cases Rs. RTD,2case powder 1,24,70,220.00 Hospitals(2006) 140 50 cases 1l,50 case 200ml,4 case Rs. powder,5case RTD 14,14,23,240.0 0 Hotels 72 60 cases 1L,10 cases 200ml,20 Rs. case RTD 4,59,82,080.00 Private Engineering 85 60 case 200ml,5 case Gatorade Rs. Colleges(IP university) powder,case 10 RTD 5,21,83,200.00 Gymnasiums 750 20 case RTD,5 cases powder Rs. 49
  • 50. 21,96,90,000.0 0 Schools 4862 40 cases 200ml,5 cases RTD,5 Rs. cases Gatorade Powder 1,42,61,14,060. 80 Total 6350 Rs. 2,11,59,29,844. 80 50
  • 51. Understanding Yearly Sales Forecast:- An institution is another dimension where lucrative business opportunity exists for PepsiCo. From institutions we mean school,colleges,gymnasiumsetc.These are the places from where organization gets huge volume and since FMCG is largely a volume based industry they play a very vital role for business growth. Tapping institutions is a major concern for Tropicana department and leaving any of the institutions means leaving lots of stones untouched and thereby not tasting a big amount of business chunk. According to our estimate there is an estimate of 211 crore that can be generated from these institutions wit in one year. A mammoth 67% of business comes from schools, followed by 10% for gymnasiums and 7% from hospitals. School domination also helps company to form a stable customer base because children who are drinking Tropicana since their childhood will keep on using their services as they grow up. 51
  • 52. Interpretation and Analysis Market under Scanner:-Karol Bag Karol Bag Tropicana Status No Juice Market Real Only Tropicana Only Both Present 13% 3% 54% 30% Gatorade Availability Status-KArol Shops Gatorade Bag Present 11% Shops Tropicana Present 89% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 30 4 9 1 3 16 52
  • 53. Karol Bag:-Deciphering Ground Reality Karol bag, being a shopper’s paradise attracting high footfall of 2000 people a minimum to say presents a huge opportunity to Tropicana and Gatorade. With Gaffer-Market nearby it also attracts a lot of customer. 30% of Karol Bag has Tropicana Share, 3% is the share of Real whereas a staggering 54% is a non juice market that in itself is a hidden opportunity to increase business of the Tropicana. Out of 16 shops where Tropicana is present ,Gatorade is present in only 3 shops ,making it present in only 11% of shops leaving out huge chunk of 89% of Tropicana present shops. So there is a huge scope of improvement for Gatorade. In W.E.A Karol bag P.S.R comes to take order at six in the evening. Since, that is a peak season for retailers want P.S.R to come in morning. It should be noted that Dabur’sP.S.R arrives at 12 P.M in those shops. Tropicana and Gatorade are completely missing from 7 eating joints in Gaffar Market located just on the road side. Overall looking at the big picture a great execution and sincere efforts of Central executive make it strength for Tropicana.Conversion of 54% non juice market into juice market succored by leadership of Tropicana presents Karol Bag as a place ofenormous opportunities to “mint money” . 53
  • 54. Market under Scanner-Gole Market, C.P, PaharGanj C.P,Paharganj,Gole Market-Tropicana status real only 6% no juice 21% trop only real+trop 46% 27% Shops Gatorade Cross Selling Status Gatorade Present 11% Shops Tropicana Present 89% Consolidated Data =>Gole Market, C.P, PaharGanj Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 33 7 15 2 3 9 54
  • 55. GoleMarket, C.P ,PaharGanj:-Deciphering Ground Reality Tropicana’s Share is 46% in GoleMarket,CP,Pahar-Ganj. ,6% is the share of Real whereas 21%% is a non juice market that in itself is a hidden opportunity to increase business of the Tropicana and at 27% shops both Real and Tropicana are present . Out of 33 shops where Tropicana is present, Gatorade is present in only 3 shops ,making it present in only 11% of shops leaving out huge chunk of 89% of Tropicana present shops. So there is a huge scope of improvement for Gatorade. In ShaheedBhagat Singh market visual merchandising needs an overhauling .In spite of being available across the entire width showcasing definitely needs improvement Adding to it, Tropicana’s complete range of 100% is missing from A-class counters. Gatorade and Tropicana were found absent from the canteen of Lady Harding medical college. Overall looking at the big picture a great execution and sincere efforts of Central executive make it strength for Tropicana that can further be strengthened. Conversion of 21% non juice market into juice market, presence of canteen of prestigious Lady Harding College combined with great visual merchandising succored by posh residence makes this region a ticking time bomb that is still to explode. 55
  • 56. Market under Scanner-ChandniChowk Tropicana Status-Chandni Chowk trop only 0% real+trop real only 12% 8% no juice 80% Gatorade Cross Selling Status 0% Shops Tropicana Present Shops Gatorade Present 100% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 25 20 0 3 0 2 56
  • 57. ChandaniChowk:-Deciphering Ground Reality ChandniChowk presents a very sorry picture for Tropicana and Gatorade. Staggering 80% is a non juice market with 12% real domination. Width wise and depth wise coverage of our product here lacks as Tropicana is found in only two shops .Out of 25 shops P.S.R has visited only two shops which cut a sorry picture for Tropicana and Gatorade. ChandniChowk forms heart of Old Delhi and attracts a lot of people including many foreigners who visit daily with high brand awareness. There are many eating places here and Tropicana and Gatorade can be made parts of many stores around here So we can say Tropicana Division is keeping many stones untouched in this region. A positive point of view can convert this road block into successful business avenue for Tropicana if execution is done correctly and up to the mark with strong merchandising. 57
  • 58. Market Under Scanner-Jhandewalan Jhandewala-Status Tropicana Gatoraid Only 7% Tropicana Only 27% No Juice 53% Real Only 7% Real+Tropicana 6% Gatorade Cross Selling Status Shops Gatorade Present 17% Shops Tropicana Present 83% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 14 8 4 1 1 2 58
  • 59. Jhandewalan:-Deciphering Ground Reality Videocon Bhawan is the landmark for Jhandewalan. Tropicana domination is 9% followed by real at 7%.Both products are simultaneously available with 7% shops Mammoth 57% is the no juice market. Gatorade only covers 17% of all available shops for Tropicana leaving a massive 83% shops untouched. This area is special as it attracts a lot of educated and aware population due to presence of their workplace at this location Compared to real Tropicana poses as a winner but cross-selling of Gatorade needs big needs improvement as only 17% of Tropicana present shops are covered by Gatorade. Visual merchandising needs a resurrection. Gatorade presence is not felt anywhere in display except one shop, similarly no danglers, shine boards, banners for Tropicanawere present. Eating joints near cycle market and Videocon Bhawan are a good place to do some major business of Tropicana 200ml and Gatorade R.T.D. Merchandisers as well as salesman need to pull up their socks in this region to explore its potential. 59
  • 60. Market under Scanner-Sadar Bazar SadarBazar -Tropicana Status Real Only No Real No Tropicana 22% 78% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 9 7 0 2 0 0 60
  • 61. Sadar Bazar:-Deciphering Ground Reality SadarBazar on the footprints of Sadar Bazar presents a very sorry picture for Tropicana and Gatorade. Tropicana is physically absents from all shops though there are many locations where it can serve as hot cake. Survey also reveals that people are interested in buying Tropicana and Gatorade but No representative of Tropicana division visits here. This place can also work as Great Avenue for selling juice in festival season. Sadar Bazar is very famous part of old Delhi and attracts lot of localities as well as tourists with high brand awareness. Every day it attract a huge footfall of not less than 7000 .So we can say Tropicana Division is keeping many stones untouched in this Sadar Bazar. A positive point of view can convert this road block into successful business avenue for Tropicana if execution is done correctly and up to the mark with strong merchandisingSadar Bazar can reap benefits for the Tropicana division. 61
  • 62. Market under Scanner-South Patel Nagar Real South Patel Nagar-Tropicana +Tropicana 13% Tropicana Only No Real No 12% Tropicana 31% Real Only 44% Gatorade Cross Selling Status Shops Tropicana Shops Gatorade 25% 75% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 16 5 2 7 1 2 62
  • 63. South Patel Nagar:-Deciphering Ground Reality Scenario of Tropicana domination comes to a halt at South Patel Nagar.Real share is huge 44% when compared to Tropicana’s meager share of 12%.No juice market comprises of healthy 31% with both products being present at 13% shops. Gatorade has acquired 25% shops and it still have to cover 75% of uncovered Tropicana stores. Also cross selling of Gatorade needed to be pushed. Visual merchandising is good here but can be made better . Out of 16 shops covered P.S.R has not visited12 shops clearly telling the reason of Tropicana lagging behind. With residential areas in the vicinity and common middle class with increased spending power coming here, this area possess a very lucrative market with enormous potential for rise of Tropicana and Gatorade. 63
  • 64. Market under Scanner-East Patel Nagar and Rajinder Nagar East Patel Nagar, Rajinder Nagar-Tropicana Status No Juice market Real Only 4% 14% Both Present 53% Tropicana Only 29% Gatorade Cross-Selling Status Gatorade Present 23% Tropicana Present 77% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 28 1 8 4 7 15 64
  • 65. East Patel Nagar and Rajinder Nagar-Deciphering ground reality Above avenue present a great avenue of business for Tropicana and Gatorade. With affluent and highly aware customer base living in the vicinity this market poses a huge potential for Tropicana and Gatorade. Tropicana is leading the area with 29% exclusive availability with real having around 14% exclusive availability at the stores .Both are present at 53% shops and meager 4% no juice market.. Just 4% of no juice market corroborates the statement that this place is a great place for the Tropicana and Gatorade y. Gatorade needs to push itself more in terms of cross-selling as currently it is covering only 23% of Tropicana available shops with 77% untouched. Visual merchandising is great at this place with two shop in shops also found. Retailers are facing issue of delay in supply of Gatorade R.T.D (ready to drink) .Keeping retailers happy, filling the gaps in the supply and growing width wise is the key to success in the above mentioned area. 65
  • 66. Market under Scanner-West Patel Nagar West Patel Nagar-Tropicana Status Real +Tropicana 22% No Juice Market Tropicana Only 50% 14% RealOnly 14% Gatorade Cross Selling Status Gatorade Present 17% Tropican Present 83% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 14 7 2 2 1 3 66
  • 67. West Patel Nagar-Deciphering ground reality In West Patel Nagar market real’s is exclusively available in 14% shops and same stands true for Tropicana. Both of them are together present at 22% of shops. A staggering 50% of market is no juice market. Gatorade id present in only 17% coverage area of Tropicana shops. With both competitors equally balanced one who will convert the 50% non juice market into juice market will emerge as the winner. These new outlets will also make product visible across the entire market. West Patel Nagar market is a great example of traditional trade and successful execution with powerful merchandising over here l enable access to whole new customer base and new opportunity for their ever- growing business. 67
  • 68. Interpretation and analysis for Sales Exercise We were able to sell 33 mono cartons of Gatorade, and 2 cases of Tropicana and open 11 new accounts. 11 new sold 33 5 bottles 1 case 2 Cases accounts monocarton Gatorade Tropicana Tropicana 1L opened gatorade R.T.D 200ml Billing • Tropicana Amount • Rs.2052 Billing • Gatorade Amount • Rs2675 68
  • 69. a) After visiting West Delhi brief was re instated that there are a lot of market gaps in execution of Tropicana and Gatorade. b) Visual merchandising needs to be resurrected in this region to have a higher share of eyeball of customer. c) Clients are not aware of Brand Gatorade and most of them don’t know that it is a quality product from PepsiCo Monthly Sales All Shops Rs.18896 Yearly Sale-11 shop Rs.226752(Rs 2.26 L) d) The body gear gym can do wonders for the sales of Gatorade and gives us an idea that Gyms are the perfect place to sell Gatorade and generate lot of cash for the firm. a. If one in one week we are able to sell 5 cases of R.T.D of Gatorade to Gym (not a huge amount for gym with footfall of more than 100 a day) and 5 mono cartons of Gatorade ensures a monthly sales of Rs 15268 and for mono carton amount is Rs 1520.So yearly sales come out to be Rs 2Lakh app. 69
  • 70. Competitor beverages Margin Analysis:- Competitor margin analysis is very important from Tropicana’s division point of view. This enables them to keep a track on competition with latest findings.. This exercise is very exhaustive as retailers are reluctant to tell the trading prices to anyone. Similarly it is a daunting task to find out distributors of all the competitors. Understanding Questionnaire-Competitor’s Margin:- S.No Field Underlying Reason 1 Company Name of the company e.g. Parle Agro Name 2 Product About product of company e.g. Frooti 3 Pack Size Quantity of product –e.g. 200ml 4 M.R.P Maximum Retail Price 5 T.P(Trader Price at which trader receives the product Price) 6 T.M(Trader Margin of trader in terms of percentage Margin) 7 Distributor Price at which distributor receives the product Landing 8 Distributor Margin of Distributor in terms of Percentage Margin 9 Scheme Schemes offered with cases to traders/distributors e.g. 1 bottle free with one case/additional discount in terms of percentage 70
  • 71. Traders and Distributor Margins Company Catego Pack Size MRP TP TM Distributor DM Schem Name ry Landing es PI Juices 200ml 22 19.1 15% 18.05 6.00% 5% 100% 3 200ml ROR 18 15.6 15.0 14.91 6.00% 5% 5 0% 1ltr 100% 85 73.9 15.0 69.73 6.00% 5% 1 0% 1ltr ROR 75 65.2 15.0 62.11 6.00% 5% 2 0% Company Category Pack MR TP TM Distribut DM Schemes Name Size P or Landing Parle Agro Frooti 200ml 10 8.60 14.00% 8.19 5.00% volume based 1.2l 45 41.0 8.89% 39.05 5.00% volume 0 based 600 ml 25 22.9 8.40% 21.81 5.00% 0 2l 70 63.0 10.00% 60.00 5.00% 0 1l 36 31.6 12.00% 30.17 5.00% 1 peti+1 8 pack 400ml 20 18.0 10.00% 17.14 5.00% 0 Appy fizz 1l 50 45.0 10.00% 42.86 8.00% 0 Company Category Pack MRP TP TM Distributor DM Scheme Name Size Landing s Rasna Rasna 200g 35 32.5 10.00% 30.37 7.00% m 5gm 2 1.8 10.00% 1.68 7.00% 71
  • 72. Company Catego Pack MR TP TM Distributor DM Schemes Name ry Size P Landing Coca cola CSD 300 ml 12 10. 12.50 10.09 4.00 24 + two 3ooml 5 % % bottles 500 ml 23 20 13.00 19.4 3.00 24 + 3 bottles of % % kinley 2L 60 54 11.00 51.9 4.00 9 + two 500 ml % % bottles Company Categ Pack Size MRP TP TM Distributor DM Schemes Name ory Landing Pepsi CSD 300 ml 12 11 8.30% 10.5 4.3 24 + 2 India % 500 ml 23 21.7 5.40% 24+ 2 5 1L 32 29.7 7.00% 5 2L 60 56.6 5.60% 55.1 2.8 9 + 2 600ml bottles 0% MY CAN 15 13.2 12.00 24 + 2 CANS % NCD SLICE 25 23.6 5.60% 24 + 2 5OO ML SLICE 50 47 6.00% 12 + 1 1.25 L Nimbooz 15 13.7 8.60% 24 + 1 bottle of 350 ml Nimbooz& 1 Aquafina Nimbooz 50 47 6.00% 12 + 1 1.25 L Company Category Pack Size MRP TP TM Name MOTHER Chaach 450 ml 10 9.5 5.00% DAIRY 72
  • 73. 0 sweet lassi 300 ml 12 11.508 4.10% salted lassi 200 ml 7 6.706 4.20% 0 Nutrifit litchi 100 ml 11 10.505 4.50% Nutrifit ROR 100 ml 10 9.5 5.00% 0 Full cream milk 1L 30 29.82 0.60% single toned 1L 23 22.816 0.80% milk Double toned 1L 20 19.8 1.00% milk Standard milk 1L 18 17.802 1.10% Company Name Category Pack M TP TM Distributor DM Schemes Size R Landing P PepsiCo Aquafina(min 1L 13 11.3 12. 3 bottles on eral water) 36 80 case % Camp Beverages refreshers 500 12 9.25 22 8.75 5.40 One bottle Pvt. Ltd ml .91 % one case % 1L 30 27.5 8 200 9.09 One bottle % % one case 2L 50 48.3 3 43.3 10.3 One bottle % 0% one case McDowell Mineral 1L 12 5.6 53. 5 10.7 Water 00 0% % Royal Crown Cola RC cola 300m 12 9.33 22. 8.8 5.60 International l 25 % % 600m 22 13.5 38. 12.29 9.20 l 4 40 % 73
  • 74. % Parle Agro LMN 200m 12 9 25. 8.69 3.50 2 appy fizz on l 00 % 30 pieces % Company Category Pack MR TP TM Distributor DM Sche Name Size P Landing mes Nestle Lactogen ( Tin 500 gm 20 188. 9.00% packing) 7 37 1000 41 373. 9.00% gm 0 1 Westin Mineral Water 1 ltr 12 5 58.30% 4.1 18 % Del Monte Juice 240ml 25 21.2 15.00% 20.18 5.00 5 % Kissan Squash 700ml 95 85 10.52% Kingfisher mineral water 1 ltr 12 7.9 34.10% 74