50286911 13-fruit-juice-project


Published on

  • Be the first to comment

50286911 13-fruit-juice-project

  3. 3. Executive summaryIndia is a tropical country and has accorded a favorable reception to thirst quencherssuch as fruit juices and aerated drinks. Ready to serve kiwi juice is a beverageprepared from clarified kiwi juice. When chilled the RTS beverage makes for anutritious and refreshing drink. The nutritive value of real fruit beverages is fargreater than that of synthetic products, which are being bottled and sold in largequantities throughout the country. If real fruit juices could be substituted for thesesynthetic preparations, it would be a boon to the consumer as well as the fruit grower.India is a market of diversity – diverse with regards to incomes, price points ofproducts, culture and preferences and a marketer has to get use to these diversecharacteristics of the market.Drinking juice is not a part of our culture. We drink water with our meals but in theWest one starts the day with breakfast and a glass of juice. Juice is to a great extentconsidered as a luxury not a necessity in our society, surely but slowly things arechanging mainly in the urban and semi urban areas, where the population is gettingmore and more health conscious and are realizing the important nutrient values offruit and are making them a part of their daily diet.The companies in this Rs. 100 crore industry will have to organize variouspromotional activities from time to time mainly to increase sampling and to educatethe consumers about packaged fruit juice that it is as pure and nutritious as fresh juicewhich is perceived as fresh as it is extracted in their presence i.e. actual or assumed.There are two main brands in this segment of non- carbonated drink markets; they are‘Real’ from Dabur and ‘Tropicana’ from PepsiCo. These two players commandaround 80% market share in the organised sector.We can observe this industry growing and new players entering the market. In recenttimes we have seen the entries of some international brands, like Berri [Australia], 3
  4. 4. Ballantyne [Australia], and Tipco [Thailand], with the intention to strengthen theirhold in India and to grow with the market. CompanyNitro Enterprises Pvt. Ltd will be entering the food processing industry with its firstlaunch i.e. a Kiwi fruit juice.Three of the four investors have full operational responsibilities. SD and SY are theco-founders and have both entrepreneurial and industrial experience. PB bringsoperational management and financial skills to the operation.Nitro Enterprises Pvt. Ltd has a Strategic Alliance with the New Zealand basedcompany Zespri International Limited to supply the kiwi fruits to India. Pursuant toour company policy stating "Quality First, Credit Prominent", we process ourKiwiJoos with strict production standard, quality control and sophisticated processingtechnology, we at all time provide our consumers the natural and healthy Kiwifruitjuice.Our Start up costs, listed below, has been financed to date by the investment from itsowners. Following are the parameters: Particulars AmountLand & site development;[x[ acres @ Rs. [y] lakh per acres 87croreBuilding and civil works 89crorePlant and machineries 6ocroreMiscellaneous Fixed Assets 75crorePreoperative expenses 35crorePreliminary expenses 10croreTechnical know-how and engineering fees 20croreContingencies @ 10% 50lakh 4
  6. 6. Market AnalysisMarket Analysis Summary:One can sense an evolution that the industry has seen with development in the tetra-pack market, there also has been a natural progression from drinks to nectars to juicesand while traditionally fruit drinks were aimed at children, the new brands like‘Onjus, Real, and Life’ have focused on young adults and professionals.Although fruit drinks focus strongly on out of home consumption, the juices andnectars have been concentrating on takeaways or in-home consumption with morechoice coming in, the tetra- pack market is likely to witness further segmentation.Packaged fruit juices are getting recognized as social drinks now, with dominantconsumption being observed in the company of family and friends. People havestarted to perceive fruit juices as anytime beverages, with consumption being spreadmore or less evenly between the mid mornings, afternoons and evenings. Andgeneration now is as much inclined to sipping fruit juices as colas, with teenagersdriving the maximum trials.If the findings of a usage and attitude study conducted by market research agencyIndica Research across 1200 adults in Sec A and Sec B households in Delhi andMumbai are anything to go by, then its not just champagnes and colas that qualify associal beverages.Market Segmentation:There has been no general acceptance of the product forms in the fruit beveragemarket. The consumer is basically concerned if it is a fruit juice or syntheticallyconstituted product. Product segmentation, therefore, should be clearly delimited. 6
  7. 7. • Under the fruit drinks the first segmentation is between real fruit drinks and synthetic drinks.  The real fruit drinks are based on natural fruit pulp or juice.  The synthetic drinks are synthetic products with fruit or other flavors.• Broad taste preferences could be another way to define the market. The market is at present also segmented on the basis of fruit pulp content. For the purpose of segmentation, on the basis of fruit pulp content. For the purpose of segmentation, on the basis of fruit pulp content, market can be segmented as:  Fruit juice with pulp content more than 80%. Brands falling in this category are Onjus, Real, Tropicana, etc.  Fruit Nectar with pulp content between 40% to *0%. Life and X’s come in this category.  Fruit Drinks with pulp content less than 40%. Frooti and Jumpin are the popular brands in this category.Market Needs:Consumers usually, are not going to accept something that doesn’t taste good even ifit is good for them or has certain benefits. Companies working to bring a new foodproduct to the market have two questions—does it taste good and will consumers buyit?Industry analysis:The Rs 100 crore packaged fruit juice market is estimated to be growing at 20% to25% annually, with Tropicana and Real holding 40% market share each.The market can be categorized in terms of product content and there are three majorproduct contents available.• Drinks: Juice with pulp content less than 40%,• Nectars: Juice with pulp content between 40 - 80%,• Juices: Juice with pulp content more than 80%, 7
  8. 8. The canned juice market initially covered brands like NAFED, Noga, Midland, Gold Coin and Druk. These were fruit juices and nectars and not drinks. But they did not make a mark in the market due to reasons such as high price, unattractive packaging and lack of right promotion programme. Parle Agro’s Frooti, a mango drink, was introduced in the tetra pack in 1985 and since then has been a leader in its segment. The market has suddenly picked up since 1994-95 and a few players have emerged as market leaders. Leading Manufacturers of Fruit Beverages in India:Company Brand flavours1. Parle Agro Frooti Mango, Guava, Pineapple, Strawberry & Orange Appy Apple2. PepsiCo Ltd. Tropicana Orange, Nature Sweet, Apple, Grape, Pineapple, Tomato, Mixed Fruit. Slice Mango, Litchi, Orange & Guava.3. Dabur Real Grape, Guava, Orange, Pineapple, Tomato, Mixed Fruit, Litchi, Mango. Real Active Orange, Apple4, Godrej Foods Jumpin Orange, Apple Re Orange, Apple Xs Orange, Apple 8
  9. 9. Imports:With a whole range of product lines opened up for imports over the past 14 months,these exporters have now full freedom to exploit the huge Indian market. The fruitjuice market in India is not yet large enough to justify investing.Today the consumer has got a wide variety to choose from as many foreign food andpersonal products can come in unrestricted now. The Indian market place has seen adramatic increase in the range and quality. There is expected to be some level ofcompetition in these areas. Quality will have to improve and manufacturers will haveto be more cost effective.Consumer’s belief in India products too is going up; earlier issues were of durabilityand poor shelf life. Now, Indian products have moved up to the next level. This couldmake it tough for imported products to make a dent in established categories,especially where there is a substantial price difference.Problems with imports:• The imported products on offer in most stores stocking foreign foods reveal that they are close to their expiry dates.• The other problem that retailers face is that since they are dealing with agents there is a problem of returns of products when they are past expiry dates. Its not an issue when a retailer is dealing with a company as there is a mechanism for accepting returns. At times companies are seen to import through their own channels and supply it to the retailers.• India is a difficult market mainly because of delays at the docks, tariffs and duties on various products, bribery and corruption and the lack of a cold chain (for horticulture produce). Things when they arrive do not get straightway into cold 9
  10. 10. storage i.e. the inadequate infrastructure to handle the distribution of fresh produce, which causes a rapid deterioration in the quality. Main Competitors:A host of brands are jostling for thirst space. Not just colas but beverages and fruitjuices of all hues are adorning shop shelves. From bottled iced-tea to branded chhaas,fruit-based drinks and flavoured milk, beverage makers have gone berserk withproduct innovation as new variants continue to flood the market. Fruit drinks are highon the swig list in summers as it is part of the health fad sweeping the nation. Healthconscious consumers are increasingly giving aerated drinks the go by and making abeeline for fruit-based concoctions. Moreover, sporadic controversies about pesticide-infested cola drinks are said to be driving consumers towards fruit-based drinks as asafer alternative. That is why even existing players are going all out to pour out newflavours.Dabur:Dabur Foods that was set up in 1997 has brands like Hommade, Lemoneez andCapsico in its basket. The Rs. 37 crore Dabur Foods ltd, a wholly owned subsidiary ofDabur India ltd ahs two brands of juice in the market, they are;• Real• Real ActiveFor its Real brand, Dabur is focusing on increasing in home consumption by targetingmothers and children. It is priced in the range of Rs. 60 to 65 [1 liter] and Rs 15[200ml] except for Guava that is sold in the range to Rs 65 to 70 and Grape that issold for Rs. 70 to 75. Its ingredients are water, fruit concentrate, sugar, citric acid andflavours of;• Grape, Guava, Orange, Pineapple, tomato, Mixed Fruit, Litchi and Mango.The Real Active brand is targeted towards fitness- crazy young consumers. The drinkis positioned on the health plank. It was launched towards the end of 2002. At thesame time, the company plans to position Real Active as its premium juice brand, 10
  11. 11. while Real would be targeted at consumers belonging to socio economic categories Band C also. It contains only fruit concentrate and water. It is priced at Rs. 68 and 70. Itis available in the Flavours of :- Apple and orange.PepsiCo:The Pepsi operations in India are now the part of the new Asian division of PepsiCoBeverages International formed by the merger of PepsiCola International, Tropicanaand Gatorade, the sports beverage company acquired from Quaker Oates. Earlier,India was one of the eight business division of the beverage company that used toreport to PepsiCo International in New York directly. Now it reports to PepsiCoBeverage International Asia in Hong Kong. PepsiCo Beverage International is adivision of PepsiCo Inc. This move has been prompted by the need to give greaterregional focus to new products like Tropicana and Gatorade so that they become a keyelement of the overall portfolio of the US beverage major.Tropicana:Tropicana entered the country in 1998. Tropicana is currently imported in aconcentrated form, which is later reconstructed at a plant in Baramati, near Pune andvacuum packed into tetra packs after paying an import duty. It covers around 18 citiesof India. The factor of its success is that it has a tightly controlled distribution systemon top of an equally controlled production and this in turn helps it keep its tasteconstant and the company boasts of it too.Tropicana Beverage Co. recently announced the company’s inclination towardsbringing in an entire series of juices and other health drinks from its internationalportfolio into India in the coming years. The Tropicana brand, per se, has beenpositioned on the ‘health’ platform.Pepsi also plans to give its juice brand – which has seen many hurdles in the nascentand niche juice market – a renewed thrust in the coming days. A price revision of thebrands is also on the anvil.A present Tropicana has the following flavours: 11
  12. 12. Orange, Nature Sweet, Apple, Grape, Pineapple, Mixed Fruit.Parle Agro:Parle Agro Private Ltd is looking at product expansion in its various businesssegments to sustain growth in a sluggish market. In the fruit drink segment whereParle Agro has a hugely popular product ‘Mango Frooti’, it is planning to get intoorange and pineapple under the same brand of Frooti. While orange pulp will beimported from Brazil, pineapple will be sourced from Thailand.At the same time, it has also embarked on stretching the franchise of its existingbrands—Frooti, Appy and Bailley Mineral water. It knows the market and hassustained its brands in spite of the huge unorganized segment. Besides, the companywill use its existing distribution network to get into the new categories. At themoment, its only advantage is its distribution strength. 12
  13. 13. 13
  14. 14. Kiwi fruits are small oval fruits with a thin brown skin, soft green flesh and black seeds. They are rich in many Vitamins, flavonoids and minerals. In particular, they contain a high amount of Vitamin C (more than oranges), as much potassium as bananas and a good amount of beta-carotene.Anti Oxidant properties of Kiwi FruitIt is important to note that kiwi fruits contain a remarkable amount of Vitamin C, E andA. Vitamin C is a water-soluble antioxidant that has been proven to protect our bodyfrom free radicals, dramatically improving the health of individuals who consumed itregularly against all kinds of disease, from cardiovascular problems to cancer andobesity. Vitamin E has been proven to have similar effects, but is fat-soluble and thus iscomplimentary to Vitamin C in its functionsKiwi fruits have a high fiber contentThe high content in dietary fiber helps improving diseases such as diabetes, bycontrolling sugar levels, and cancer color, since fiber binds to toxic compounds in thecolon and helps us expel them. Fiber has also been proven to reduce cholesterol levels,improving the conditions of patients with cardiovascular diseases and lowering theprobability of heart attacks.Summary of Kiwifruit Health BenefitsEating kiwi fruit is clearly a healthy choice, particularly useful in these cases:• Prevents Asthma• Prevents wheezing and coughing, especially in children• Protects our DNA from mutations 14
  15. 15. • Provides a healthy amount of antioxidants and vitaminsKiwi Fruit Nutrition Content Research Nutrient Gold Green Kiwifruit Main Functions Content Kiwifruit 181 ug/100g 158 ug/100g Stabilize VA、Inhibit Oxidation (Flesh) (Flesh) & Free Radicals Prevent Tumor、Improve Fecundity、Slow Aging Vitamin E 3.025 mg/100g 2.72m g/100g Inhibit Oxidation、Enhance (Bearing (Seed) (Seed) Immunity、Participate In DNA Phenols) Synthesis、Slow Aging Inhibit Mutation、 Prevent Cancer Vitamin C 135.96 154.95 mg/100g Accelerate Collagen、Synthesis mg/100g(Anti-Scurvy (Flesh) Stop Bleeding、 Accelerate (Flesh) Acid) Amino Acid Metabolism、Inhibit Oxidation、Activate Folacin、Expel Toxin Chlorophyl 481.50 ug/g 222.51 ug/g Prevent Inflammation、 Inhibit (Peel) (Peel) Cancer、Detoxification Accelerate Wound Close、 Anti- Cholesterin Arginine 0.0953% 0.0463% Provide Baby Need Amino (Flesh) (Flesh) Acid、Accelerate Immunocyte Activity、Promote Secretion of Growth Hormone Prolactin and Insulin 15