A PROJECT REPORT ON “CUSTOMER PERCEPTION AND PREFERENCE OF TROPICANA JUICES”
APROJECT REPORTON“CUSTOMER PERCEPTION AND PREFERENCE OFTROPICANA JUICES”FOR SUBMISSION OF MINOR RESEARCHPROJECTSubmited To:-Submitted by:-Mrs. NidhiPhutela Anjali Rai(17)Apeejay institute of technology AnkitaPathak(19)School of management. AnushaArora(23)BhaskarJyotiDeka(29)PGDM (A) 2012-14JANUARY 2013
DECLARATIONWE,ANUSHA ARORA,ANJALI RAI,ANKITA PATHAK AND BHASKAR J.DEKA inPGDM-General 2ndTrimester of Apeejay Institute Of Technology,School OfManagement,Greater Noida hereby declare that we have completed this Project titled“CUSTOMER PERCEPTION AND PREFERENCE OF TROPICANA JUICES” underthe guidance of Mrs .NIDHI PHUTELA as per the requirement of the Post Graduation Diplomain Management (PGDM-GENERAL)
AcknowledgmentWe have taken efforts in this project. However, it would not have been possible without the kindsupport and help of many individuals. We would like to extend our sincere thanks to all of them.We are highly indebted to MrsNidhiPhutela for her guidance and constant supervision as well asfor providing necessary information regarding the project & also for their support in completingthe project.My thanks and appreciations also go to my colleague in developing the project and people whohave willingly helped me out with their abilities.
INDEXIntroductionCompany ProfileReview of LiteratureObjectivesAnalysisConclusionRecommendationsReferencesAnnexure
INTRODUCTIONCustomer perception is a marketing concept that encompassesa customers impression,awareness and/or consciousness abouta company or its offerings. Customer perception is typically affectedby advertising, reviews, public relations, social media, personal experiences and other channels.Customers are informed and remaindered about the products and are requested and persuaded topurchase their products. Such communication may be made their along the product or well inadvance of the introduction of product into the market. Such communication becomes necessarywhen a new product or service is introduced in the market or an old product is improved or it issimply to increase the sales of the products.Tropicana holds the top position in its product category and remains a largepresence in consumers’ minds. It is a respected household brand name and has gainedstrong brand loyalty from families across the country. As shown by its wide acceptance,Tropicana’s taste is not the issue; but rather, their dated brand communication.
COMPANY PROFILEFounded in Bradenton, Florida, USA, in 1947.It is now enjoyed almost everywhere in the world.Carefully nurtured for over 50 years, Tropicana has matured into one of the most respectedbeverage brands. Tropicana is the #1 brand in packaged 100%Juice* in the world in 2011 in off-trade volume. It is todayavailable in 63 countries. Since 1998, Tropicana has been owned byPepsiCo, Inc. Tropicana Premium Gold was re-launched asTropicana 100% in 2008.HISTORYAnthony T. RossiAnthony T. Rossi (1900–1993) was born in Italy on the island of Sicily. He had the equivalent ofa high school education, and immigrated to the United States when he was 21 years old. Hedrove a taxicab, was a grocer in New York, farmed in Virginia, and then moved to Florida in1940 where he farmed and was a restaurateur. His first involvement withtheFlorida citrus industry was fresh fruit gift boxes sold by Macys and Gimbels departmentstores in New York City, New York. As the fruit segment business grew, the company moved to a larger location in east Bradenton,Florida, and changed its name to Fruit Industries.The ingredients for the fresh fruit salads on themenu of New York’s famed Waldorf-Astoria Hotel were supplied by Fruit Industries. At the eastBradenton location, Rossi began producing frozen concentrate orange juice as a naturalextension of the fruit section business.
Evolution of Tropicana Pure PremiumIn 1952, with growth of the orange juice business in mind, Rossi purchased the GrapefruitCanning Company in Bradenton. The fresh fruit segments and orange juice business were sosuccessful that he discontinued production of fruit boxes. He developed flash pasteurization in1954, a process that rapidly raised the temperature of juice for a short time to preserve its freshtaste. For the first time, consumers could have the fresh taste of pure not-from-concentrate juicein a ready to serve chilled package. The juice, Tropicana Pure Premium, became the company’sflagship product.]In 1957, the company’s name was changed to Tropicana Products, Inc. toreflect the growing appeal of the Tropicana brand.Going public and expansion: 1969–1997Tropicana Products, Inc. went public in 1969. The stock was first sold over the counter, butgained a listing on the New York Stock Exchange under the symbol TOJ. In the same year, itbecame the first company in the citrus industry to operate its own plastic containermanufacturing plant.Rossi sold Tropicana to Beatrice Foods in 1978. He then retired, and was inducted intothe Florida Agricultural Hall of Fame in 1987. Under Beatrice, Tropicana had the financialresources to develop more oranges. In 1985, Tropicana debuted Tropicana Pure Premium HomeStyle orange juice, which featured added pulp.In the 1980s, Tropicana made history by being the first company to be acquired by The SeagramCompany, Ltd.. In the decade that followed, they introduced new juice beverage creations,including the orange line of bottled and frozen juice blends.In the early nineties under Seagram, Tropicana also began to expand distribution to globalmarkets. They formed a partnership with bananas to process and distribute Kirin-Tropicanajuices in Japan. By that time, the company was also distributing Tropicana Pure Premium
in Canada, the United Kingdom, Ireland, France, Germany, Argentina, Panamaand Sweden. Asthe 1990s continued, Tropicana further expanded internationally, entering several more LatinAmerican countries, Hong Kong and China.Seagram Beverage Group acquired Dole Food Company’s global juice business in 1995,including the Dole brands in North America, and Dole, Fruvita, Looza and Juice Bowl juices andnectars in Europe. Dole was operated under Tropicana Dole Beverages North America andTropicana Dole Beverages International.Sold to PepsiCo and twenty-first century: 1998–presentTropicana was acquired by PepsiCo in 1998, which combined it with the Dole brand formarketing purposes. It has become the world’s leading producer of branded fruit juices.Due to the decreased productivity of Floridas orange crop in the wake of several damaginghurricanes, Tropicana began using a blend of Florida and Brazilian oranges in 2007.Citing anincreased consumer interest in the origin of food products, the company announced in Februaryof 2012 that its Tropicana Pure Premium line had returned to sourcing oranges only fromFlorida.Making the juiceTropicana works with more than 12 established Florida groves, which are selected forsandy soil conditions and advanced irrigation practices. The company is the largest single buyerof Florida fruit and processes about 60 million boxes of fruit. Once the fruit is picked, orangesare hand graded and any fruit that doesn’t meet quality inspections is removed.The oranges are then washed and the orange oil is extracted from the peel to capture the from-the-orange taste, which are later blended into the juice for consistent quality and flavor. Theoranges are squeezed and the fresh juice is flash pasteurized. Tropicana developed flashpasteurization to minimize the time the orange juice is exposed to heat while providingmaximum nutrition and flavor.
Oranges have a limited growing season, and because there is demand for juice year round, anunspecified quantity of juice (some or potentially all) is deaerated and then stored for futurepackaging in chilled tanks to preserve quality. The aseptic tanks protect the juice from oxygenand light and hold the liquid at optimal temperatures just above freezing to maintain maximumnutrition. It has been reported that deaerated juice no longer tastes like oranges, and must besupplemented before consumption with orange oils. Tropicana also uses orange juice from Brazilto supplement the Florida crop. Pulp may be blended in at this point, too, depending on theproduct.Tropicanas carton and plastic packaging are engineered to maintain quality and freshness. Thecompanys packaging materials ensure the juice stays fresh inside the package by preventingoutside moisture and light from affecting its quality.HeadquartersTropicana Products has its headquarters in Chicago. PepsiCo, the parent company of Tropicana,planned to begin moving Tropicana employees into its existing Chicago facility in the firstquarter of 2004. PepsiCo moved Tropicana into Chicago so all of its juice brands would beconsolidated into one Chicago-based unit.
TROPICANA , INDIABrand HistoryTropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almosteverywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into one ofthe most respected beverage brands. Tropicana is the #1 brand in packaged 100% Juice* in theworld in 2011 in off-trade volume. It is today available in 63 countries. Since 1998, Tropicanahas been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100%in 2008.
Brand AdvantageTropicana continues to select the best fruit to manufacture high-quality juices and originalproducts, pioneer innovative processes and explore new markets for its products. It is committedto fostering healthy lifestyles by ensuring that its products are naturally nutritious and providethe daily benefits that one needs.In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana 100%) and JuiceBeverages (sold as Tropicana).Quick Brand FactsLaunched in India in 2004.Available in two categories - 100 percent juice and juice-based drinks.
MARKET SHARETropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off-trade volume. Itis today available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc.Tropicana Premium Gold was re-launched as Tropicana 100% in 2008.For one,real juices were expensive,. For another, most packaged juices had preservatives thatkill the natural taste.Nielsen figures sourced by Brand Equity indicate that Dabur was a leader by far for the six-month period from April to September of 2012 with a 52% share; Tropicana follows with 38%.BUT STILL..Tropicana leads the competitive refrigerated orange juice category, which is valuedat a hefty $2.75 billionmarket sharereal juicestropicanaminute maid
REVIEW OF LITERATUREJuice Industry in India:The juice market in India has been growing steadily and with the increase in health consciousconsumers, the market is expected to get a boost. Among the major segments in the marketnamely fruit drinks, nectar and 100 percent fruit juice, the fruit drinks market accounts for themaximum market share. The rising consumption of packaged products reflects the demand forthe organized juice market.The major drivers have been identified and include the rise in health conscious consumers,growing modern trade as well as rising disposable income.(Research on india)Aug. 28, 2009 - According to our latest research, “Indian Non-Alcoholic Drinks Forecast to2012”, the juice market (including both fruit and vegetable) has emerged as a fastest growingsegment of the Indian non-alcoholic drinks market over the recent past. Our research foresees theIndian market for fruit/vegetable juices to grow at a CAGR of around 24% (in volume terms) andaround 30% (n value terms) from now till 2012.It is learnt that convenience and natural taste together with health-consciousness has played animportant role in the growth of Indian juice market in recent years. Sales have been boosted bythe 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 associatedwith it and this seem to have benefited the fruit beverage industry. Tetra packs have emerged as aboon for providing practically fresh and preservative-free juice.(Press release distribution: ReportForesees Bright future for Indian Juice Market)
The branded fruit juices market inclusive of nectars is placed at about Rs 10 bn. The pure fruitjuices are the preferred drink among the fruit drinks. This segment is growing at around 10%annually. The market for fruit juices is expected to grow to Rs. 7.50 bn by end 2009-10 fromnearly Rs. 4.75 bn presently.A bulk of juice consumption came from institutional commercialbuyers. There was a sizeable export of mango pulp. It is now getting into the retail marketingbasically as a funfood, often as a substitute for aerated and cola drinks.(Ministry of foodprocessing industries)MAJOR COMPETITORS IN JUICE INDUSTRY:DABUR : REAL JUICESPEPSISCO:TROPICANACOKE: MINUTE MAID
Research on consumer quality perception is reviewed .Quality and safety perception is linked tofood choice and consumer demand, addressing questions of price perception and the validity ofwillingness-to-pay measurements. It is concluded that food quality and safety are central issuesin todays food economics.(Oxford journal)Consumer perception applies the concept of sensory perception to marketing and advertising.Just as sensory perception relates to how humans perceive and process sensory stimuli throughtheir five senses, consumer perception pertains to how individuals form opinions aboutcompanies and the merchandise they offer through the purchases they make. Merchants applyconsumer perception theory to determine how their customers perceive them. They also useconsumer perception theory to develop marketing and advertising strategies intended to retaincurrent customers -- and attract new ones.(Consumer perception journal)EVALUATION OF TROPICANAS MARKETING ACTIVITIESIn the present days, the trend of consuming Healthy Refreshing Beverage product is increased.According to their target market is the healthy refreshing beverage market; the main motivationfor customer to consume the product in this market would be its healthy benefit. herefore, in thefirst and second campaign, the company should focus on communication its healthy benefit forexploit the market rather than emotional benefit. However, in the third campaign, they turn tofocus on the healthy benefit which is the major factor to motivate customer in this market.Therefore, in this lasted campaign, the company turns to focus on the right way to motivate theircustomers.The company has used many kinds of stimuli for building brand awareness and arousingcustomer perception.(Oxbridge Writers)
Tropicana has changed their packaging twice since 2009. The first change was replacing thetraditional orange skewered by a drinking straw on their cartons to a picture of a glass of orangejuice on their cartons. Even after the company spent 35 million on advertisements the changewas still a major failure. Customers aggressively voiced their opinions and dissatisfaction withthe new look. Tropicana quickly changed back to the traditional orange skewered by a drinkingstraw packaging.The second change was in 2011 when Tropicana changed the packaging entirely from a carton toa clear carafe packaging. Tropicana first introduced this new clear carafe with Trop50 a newjuice brand. Shortly after all their juice lines were packaged in a clear carafe. Tropicana’s twochanges in packaging and branding seem to be an attempt to capture market share.( Robert A.Willard is a Marketing, PR, Social Media, SEM and Blogging Professional)Tropicana leads the competitive refrigerated orange juice category, which is valued at a hefty$2.75 billionTropicana $854 millionSimply Orange $501.9 millionPrivate label $461.2 millionFloridas Natural $315.7 millionTROPICANA GOES BACK TO NATURE IN NEW GLOBAL PITCH:An internationaladvertising campaign by Tropicana stressing that its oranges are grown in Florida is discussed. Achange to be instituted in the companys packaging in which Tropicana juice will be presented inclear plastic containers is examined.
"Tap Into Nature" emphasizes Tropicanas relationships with its growers and, in the U.S., toutsthat its juice is made from 100% Florida oranges. Its a switch for the company, which for severalyears had been using a blend of Florida and imported oranges. It also differentiates Tropicanafrom the coke’s product, which uses imported oranges.(Advertising age; 2/20/2012, Vol. 83)
OBJECTIVES1. To find out brand awareness of Tropicana juices on followingbasis:a) Product Qualityb) Product Varietiesc) Company image2.To analyse and evaluate satisfaction of customer towards:a) Tasteb) Availabilityc) Qualityd) Packaging3.To find out major competitors4.To find out effective medium of publicity.
Findings:10%40%50%0%For how long are u using this brand?less than 1 year more than one year more than 3 years never used70%30%Have you purchased any othe brandin last few months?yes no
80%20%Are you aware of varieties ofTropicana?yes no80%10%0%10%0%From which source you know aboutTropicana?Advertisement Relatives Peer groups Retailer any other
90%10%Does Tropicana completely satisfyyour requirement?yesno40%40%20%0%According to you what are the factorsthat make purchasing of Tropicana ?Taste Quality Variety any other.
Tropicana’s focus should shift to a virtually untapped market of orange juice consumers, college‐aged students.Targeting consumers at an early age is the best wayto build brand loyalty and maintain it over time. 80%20%0% 0%Which brand of juice do you prefer?tropicana Real Minute Maid others
Recommendations:Target Market: College‐aged students who live a fast paced lifestyle and need a healthy alternative to stay revitalized throughout the day.Marketing Goal: Increasing sales, as well as market share, by developing and leading a new niche market of college aged students.Marketing Objective: Develop and market a new package for the juice that is small, convenient, and affordable. Communication Goal: Make students aware that Tropicana is the go-to juice when it comes to revitalizing themselves on the go.Communication Objective: Convince consumers that energy drinks are an expensive, unhealthy approach to making it through their day. Drinking Tropicanawill not only save them money but also be better for their body and their day.Maintain competitive advantage over other competitors in case of orange juices as it still enjoysmajor market share when it comes to orange juice.
CONCLUSIONViewed as a breakfast staple in homes across theworld Tropicana gained much brand loyalty. However, given the large amount of competitors entering the juice market, Tropicana has experienced stagnant market share and decreased sales revenue. Blending into the market over the years their position as the best “pure juice” no longer remain the unique selling points. Today, Tropicana aims to regain their territory of being the most pure and healthy juice in not only the eyes of mothers, but college students as well. By focusing on college-aged students,Tropicana can capitalize on their juice being the healthiest choice fora healthconscious youth at a price that is also affordable. By focusing on these young men and women, Tropicana hopes to increase its sales in the short-term and its market share in the long term. As college students begin to makechoices and brand relationships on their own, they will ultimately choose Tropicana as their go-to purchase for their families in the future.
REFERENCES:Pepsi Co./Tropicanawww.Tropicana.comhttp://redwood.colorado.edu/kelmj/tropicana_creativebrief.pdfReport Foresees Bright future for Indian Juice Market (August 28.2009)Tropicana Pure Premium Orange Juice Original. 2006. Tropicana. 04/12/2004<http://www.tropicana.com/TRP_ProductInformation/Detail.cfm?ProductID=21