New Product Launching Strategies &
Marketing Management
Report on
FP Agro Pvt Ltd
SUBMITTED TO SUBMITTED BY
Dr. S.S. BANWAIT DEVI LAL
PROFESSOR & HEAD OF ME(MT IInd SEM.)
DEPTT. OF MECHANICAL ENGINEERING ROLL NO. 152208
Agenda
 Industry Analysis
 Why this Product?
 About the
Company
 Mission & Vision
 Target Market
 Competitive
Analysis
 SWOT Analysis
 Marketing Mix (4
P’s)
SOFT DRINK MARKET IN INDIA
INDUSTRIAL ANALYSIS
 Branded fruit beverage market in India is estimated to be worth
Rs. 1,200 crore (nectars, drinks and juices combined)
 Juices - over 85% pulp content
 Nectars - 20% to 85% pulp content
 Fruit Drink – Less than 20% pulp content
Segment Market Share
Juices 30%
Nectars 10%
Fruit Drink 60%
INDUSTRIAL ANALYSIS
 The Fruit Drink market has grown at a 20% to 25% rate.
 Of this, more expensive juices segment has grown at
rate of 40% this year. It accounted for only 15% of the
fruit beverage 3 years back.
 In–home consumption of juices has gone up from
30%, three years back to 80% today.
 Mango based drinks account for two thirds of fruit
drinks industry.
 More than 80 % of sales happen through the
unorganized route - juice centers, street corner
shops and so on
About FP AGRO PVT LTD
 FP Agro will produce fruit juice & fruit drinks.
 FP Agro is going to make unique position in terms
of corporate presence with its advanced
technology and the instrumentation required to
manufacture a Juice that has many different
flavors, for utmost customer satisfaction.
 FP Agro will be an environment-friendly company
dedicated on sustainable development and corporate
social responsibility, as a service to society and
preservation of nature.
 FP Agro headquarter will be situated in Mumbai and it
would be having Satellite branches in major Metros.
MISSION
“To be a leading producer of fruit juices based on
 dedication to nature, corporate and process
hygiene, dynamic leadership and commitment
to our partners and stakeholders.”
VISION
 “To be India’s Premier Fruit Juice Company,
 offering nutritious & superior quality tasting
drinks to its consumers. By 2016 we aim to
achieve 30% of Market Share, and while doing it
we would be the best in terms of consumer
value, customer service, employee talent, and
consistent and predictable growth.”
Why this Product?
 India currently produces about 50 million tonnes of fruits, which is
about 9% of the world’s production of fruits.
 Though India has a strong raw material base, it has been unable
to tap the potential for processing and value addition in
perishables like fruits and vegetables.
 Only about 2 percent of the fruits and vegetables in India are
processed, which is much lower when compared to countries
like USA (65 %), Philippines (78%) and China (23)%
Why this Product?
Factors Driving Demand for Our Product
1) Changing age profile- A relatively larger share of young
population which has the ability to spend on
processed foods
2) Increase in income- The middle and upper middle
income groups growing at a faster rate than in
developed countries resulting in higher spending on
food
3) Social changes- Increasing number of working women
4) Life style factors- Increasing health consciousness and
need for convenience fruit drink
5) Availability of Organized Retail outlets- These provide
the much needed forward linkages
TARGET MARKET
 Primary Market
– Kids – Fond of Fruit Juice (fond of mango,
strawberry)
– Teens – More experimental
– Youth – Experimental and more buying
power
– Working People
– Housewives
– Elderly people
 Secondary Market
– Travel Industry
– Airlines, Railways and Local Transport
Systems
– Recreational
– Movie Theatres, Malls, Amusement Parks.
– School, Colleges
– Hotels, Restaurants, Bars etc.
Market Segmentation
 Market segmentation is the process in
marketing of dividing a market into distinct
subsets (segments) that behave in the same
way or have similar needs
Variables Used for Segmentation
1) Geographic variables
2) Demographic variables
3) Psychographic variables
4) Behavioral variables
Market Segmentation Variables
 Demographic
 Age – all agegroup
 Gender – Both Male and Female
 Family size - doesn’t matter
 Education - doesn’t matter
 Income – middle & hi end consumer
 Occupation – student, working and retired people
 nationality/race – doesn’t matter
 language - doesn’t matter
 Behavioral
 benefit sought
 product usage rate
 brand loyalty
 profitability
 income status
Geographic
 By leveraging the benefits of liberalization
and integration of the markets of the
world, FP will seek to serve both
domestic and international customers.
 Metropolitan Cities, major cities/towns of
the states.
 Density of Area: Urban, Semi-urban,
Rural.
 Climate: Tropical
Psychographic
Personality No
Lifestyle Yes
Value Yes
Attitude Yes
Major Competitor Analysis
 Dabur's flagship brand Real fruit
juice is a market leader in the
packaged fruit juice category.
 Real with a market share of 57 %
offers to its consumers the largest
range of 9 juices that comprise
orange, mango, pineapple, mixed
fruit, grape, guava, tomato, litchi
and cranberry.
 Real Active orange carrot juice,
India's first packaged fruit +
vegetable juice.
 Spread over 11 acres and geared
to process 150 tonnes of fruit per
day, it has the capacity to
produce 192 tonnes of
pulp/concentrate
 Tropicana is a product of vast
PEPSI family and has a
market share of 25%
 The company sources
orange juice concentrates
from Brazil.
 They come in Tetrapaks of one
litre and PET bottles of 500 ml
and one litre.
 Pepsi also markets Gatorade
an energy drink for the sports
personnel which is a sugar-free
Diet Pepsi.
 Pepsi, in association with
Unilever have launched Lipton
iced tea
Major Competitor Analysis
 Frooti from Parle Agro is the
largest distributed fruit drink with
85% market share (Tetra Pack)
 It reaches more than 10 lakh retail
outlets in up to class C towns
 Parle’s Agro’s APPY, in 1996
had a market share of 5% in the
fruit drink segment
 In 2003 its new variant-APPY FIZZ
was launched which was a hit.
 Maaza was launched in 1976.
 In 1993, Maaza was acquired by
coca cola India.
 Over the years, Maaza has
become synonymous with
mango.
 The drink became a hit with
successful advertisement
campaigns like "Taaza mango,
maaza mango,' and 'Botal mein
aam, maaza hain naam.
 It is available in 200 ml , 250 ml , 125
ml Tetrapak and 200 ml Tetrapak.
Strengths & Weakness of Competitors
Name Strengths Weakness
CavinKare Pvt Ltd Acquired Maa Fruits Pvt Ltd
Distribution network
Entering in a new
segment
Coca Cola India Global leader in beverages
Growing Fast
New Entry
PepsiCo Global Brand in beverage Less Product Line
ParleAgro Market share Less Product Line
Dabur Market leader Less cost effective
Godrej Beverages Innovation New entry
Ladakh Foods Nutrients Taste
Mother dairy Cost Effective New Entry
SWOT ANALYSIS
STRENGTH
• Adequate availability of
raw materials
• Price, a competitive
advantage
• Natural Product.
INTERNALEXTERNAL
OPPORTUNITY
• Participation with a
growing industry.
• Competitive advantage
over carbonated soft
drinks.
• Success of incredible
India campaign
• Possible deal with Mumbai
Criket Association (MCA).
WEAKNESS
• Seasonal availability of
fruits
• Brand acknowledgement
• Late entry into the market.
• Dependence on HP fruits.
• Dependence on Monsoon
THREATS
• Cut throat competition
• Unstable government
policies
• Rising Global Warming
Marketing Mix
Product
 Fresh Punch is a 100 percent fruit juice
which will be produced and marketed by
the FP Agro Industries Ltd.
 BRAND NAME: FRUIT PUNCH
Our Product Variants
Mango
Mania
Crispy AppleMixed Fruit Orange
Bytez
Product Life Cycle
Our product lie in Introduction Period of
PLC
 Low sales
 High costs per customer
 Negative profits
 Innovator customers
 Few competitors
Objective: To create awareness of product
 Offer a basic product
 Price at cost-plus
 Selective distribution
 Awareness – dealers and early
adopters
 Induce trial via heavy sales
promotion
Place
Kullu
(Himachal Pradesh)
Hazira and Dahej
(Gujarat)
Place
 In the initial phase we would be outsourcing fruit
processing and packaging of Fruit Juices under FP
brand.
 Fruits such as Orange, Apple, Pineapple etc would be
purchased from Kullu. Fruit Processing & Packaging
would be outsourced to local producer.
 Mango would be purchased from Hazira and Dahej.
Fruit Processing & Packaging would be outsourced
to local producer.
 Mode of Transport: Road Transport
Pricing
 As a new comer our pricing strategy is to introduce
our products in the market at lower prices so as to
create huge demand in the market and then compete
with other competitors.
 As we come up in the demand, we will increase our
prices and will provide more efficient and affordable
juices
Pricing Strategy
Penetration Pricing
 Our product will be
lie on penetration
strategy with high
quality & low price
 For introducing
new product
 Price low to
capture market
share
 Expect to make
profit in volume
Promotion
 As we are in the Introduction phase,
our objective is to create brand
awareness through Informative
Advertising.
 Use of Print Media, Radio
Advertisement, Hoardings in Public
Spots, Sample Distribution,
Organizing Events, TV
Commercial etc.
 Tie Up with major Cinema halls to
promote our products during
Intervals.
 In-film advertising, in its most
effective form, is about a brand
being a part of the cinema's
content.
Web Marketing
Social Networking: In order to reach out to the TA and ensure that they
feel more connected with the brand it is necessary to start making
conversation.
facebook
 Creating a community on facebook
 Creating a Fan page on facebook
 This will enable the brand to keep its TA engaged and updated
on the introduction of new flavors and events
twitter
 Creating an active account on a micro-blogging site such as
twitter, where regular tweets on product and event updates will
ensure interactivity
 Followers will be encouraged to tweet their suggestions on new
flavors.
 Target of capturing 5% of the market share within a
year and 30% by 2016-end
 Initially we would be outsourcing the processing of
fruits, but after 3 years we would check the feasibility
of starting our own processing plant.
 R&D Department to be set up by 2015 early, in
order to facilitate innovation in existing products.
 We would open Satellite Branches in Major Cities to
facilitate product training & improve on Market Share.
 FP Agro will be undertaking a host of energy
conservation measures
5 Year Planning
Bibliography
mofpi.nic.i
n
www.exportersindia.c
om
news.reportlinker.com
www.indiaagronet.co
m hpagrisnet.gov.in
www.scribd.com
Thank YOU

Fruitpunchvr7 110312045656-phpapp01

  • 1.
    New Product LaunchingStrategies & Marketing Management Report on FP Agro Pvt Ltd SUBMITTED TO SUBMITTED BY Dr. S.S. BANWAIT DEVI LAL PROFESSOR & HEAD OF ME(MT IInd SEM.) DEPTT. OF MECHANICAL ENGINEERING ROLL NO. 152208
  • 2.
    Agenda  Industry Analysis Why this Product?  About the Company  Mission & Vision  Target Market  Competitive Analysis  SWOT Analysis  Marketing Mix (4 P’s)
  • 3.
  • 4.
    INDUSTRIAL ANALYSIS  Brandedfruit beverage market in India is estimated to be worth Rs. 1,200 crore (nectars, drinks and juices combined)  Juices - over 85% pulp content  Nectars - 20% to 85% pulp content  Fruit Drink – Less than 20% pulp content Segment Market Share Juices 30% Nectars 10% Fruit Drink 60%
  • 5.
    INDUSTRIAL ANALYSIS  TheFruit Drink market has grown at a 20% to 25% rate.  Of this, more expensive juices segment has grown at rate of 40% this year. It accounted for only 15% of the fruit beverage 3 years back.  In–home consumption of juices has gone up from 30%, three years back to 80% today.  Mango based drinks account for two thirds of fruit drinks industry.  More than 80 % of sales happen through the unorganized route - juice centers, street corner shops and so on
  • 6.
    About FP AGROPVT LTD  FP Agro will produce fruit juice & fruit drinks.  FP Agro is going to make unique position in terms of corporate presence with its advanced technology and the instrumentation required to manufacture a Juice that has many different flavors, for utmost customer satisfaction.  FP Agro will be an environment-friendly company dedicated on sustainable development and corporate social responsibility, as a service to society and preservation of nature.  FP Agro headquarter will be situated in Mumbai and it would be having Satellite branches in major Metros.
  • 7.
    MISSION “To be aleading producer of fruit juices based on  dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders.”
  • 8.
    VISION  “To beIndia’s Premier Fruit Juice Company,  offering nutritious & superior quality tasting drinks to its consumers. By 2016 we aim to achieve 30% of Market Share, and while doing it we would be the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth.”
  • 9.
    Why this Product? India currently produces about 50 million tonnes of fruits, which is about 9% of the world’s production of fruits.  Though India has a strong raw material base, it has been unable to tap the potential for processing and value addition in perishables like fruits and vegetables.  Only about 2 percent of the fruits and vegetables in India are processed, which is much lower when compared to countries like USA (65 %), Philippines (78%) and China (23)%
  • 10.
    Why this Product? FactorsDriving Demand for Our Product 1) Changing age profile- A relatively larger share of young population which has the ability to spend on processed foods 2) Increase in income- The middle and upper middle income groups growing at a faster rate than in developed countries resulting in higher spending on food 3) Social changes- Increasing number of working women 4) Life style factors- Increasing health consciousness and need for convenience fruit drink 5) Availability of Organized Retail outlets- These provide the much needed forward linkages
  • 11.
    TARGET MARKET  PrimaryMarket – Kids – Fond of Fruit Juice (fond of mango, strawberry) – Teens – More experimental – Youth – Experimental and more buying power – Working People – Housewives – Elderly people  Secondary Market – Travel Industry – Airlines, Railways and Local Transport Systems – Recreational – Movie Theatres, Malls, Amusement Parks. – School, Colleges – Hotels, Restaurants, Bars etc.
  • 12.
    Market Segmentation  Marketsegmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs Variables Used for Segmentation 1) Geographic variables 2) Demographic variables 3) Psychographic variables 4) Behavioral variables
  • 13.
    Market Segmentation Variables Demographic  Age – all agegroup  Gender – Both Male and Female  Family size - doesn’t matter  Education - doesn’t matter  Income – middle & hi end consumer  Occupation – student, working and retired people  nationality/race – doesn’t matter  language - doesn’t matter  Behavioral  benefit sought  product usage rate  brand loyalty  profitability  income status Geographic  By leveraging the benefits of liberalization and integration of the markets of the world, FP will seek to serve both domestic and international customers.  Metropolitan Cities, major cities/towns of the states.  Density of Area: Urban, Semi-urban, Rural.  Climate: Tropical Psychographic Personality No Lifestyle Yes Value Yes Attitude Yes
  • 14.
    Major Competitor Analysis Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice category.  Real with a market share of 57 % offers to its consumers the largest range of 9 juices that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry.  Real Active orange carrot juice, India's first packaged fruit + vegetable juice.  Spread over 11 acres and geared to process 150 tonnes of fruit per day, it has the capacity to produce 192 tonnes of pulp/concentrate  Tropicana is a product of vast PEPSI family and has a market share of 25%  The company sources orange juice concentrates from Brazil.  They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre.  Pepsi also markets Gatorade an energy drink for the sports personnel which is a sugar-free Diet Pepsi.  Pepsi, in association with Unilever have launched Lipton iced tea
  • 15.
    Major Competitor Analysis Frooti from Parle Agro is the largest distributed fruit drink with 85% market share (Tetra Pack)  It reaches more than 10 lakh retail outlets in up to class C towns  Parle’s Agro’s APPY, in 1996 had a market share of 5% in the fruit drink segment  In 2003 its new variant-APPY FIZZ was launched which was a hit.  Maaza was launched in 1976.  In 1993, Maaza was acquired by coca cola India.  Over the years, Maaza has become synonymous with mango.  The drink became a hit with successful advertisement campaigns like "Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain naam.  It is available in 200 ml , 250 ml , 125 ml Tetrapak and 200 ml Tetrapak.
  • 16.
    Strengths & Weaknessof Competitors Name Strengths Weakness CavinKare Pvt Ltd Acquired Maa Fruits Pvt Ltd Distribution network Entering in a new segment Coca Cola India Global leader in beverages Growing Fast New Entry PepsiCo Global Brand in beverage Less Product Line ParleAgro Market share Less Product Line Dabur Market leader Less cost effective Godrej Beverages Innovation New entry Ladakh Foods Nutrients Taste Mother dairy Cost Effective New Entry
  • 17.
    SWOT ANALYSIS STRENGTH • Adequateavailability of raw materials • Price, a competitive advantage • Natural Product. INTERNALEXTERNAL OPPORTUNITY • Participation with a growing industry. • Competitive advantage over carbonated soft drinks. • Success of incredible India campaign • Possible deal with Mumbai Criket Association (MCA). WEAKNESS • Seasonal availability of fruits • Brand acknowledgement • Late entry into the market. • Dependence on HP fruits. • Dependence on Monsoon THREATS • Cut throat competition • Unstable government policies • Rising Global Warming
  • 18.
  • 19.
    Product  Fresh Punchis a 100 percent fruit juice which will be produced and marketed by the FP Agro Industries Ltd.  BRAND NAME: FRUIT PUNCH
  • 20.
    Our Product Variants Mango Mania CrispyAppleMixed Fruit Orange Bytez
  • 21.
    Product Life Cycle Ourproduct lie in Introduction Period of PLC  Low sales  High costs per customer  Negative profits  Innovator customers  Few competitors Objective: To create awareness of product  Offer a basic product  Price at cost-plus  Selective distribution  Awareness – dealers and early adopters  Induce trial via heavy sales promotion
  • 22.
  • 23.
    Place  In theinitial phase we would be outsourcing fruit processing and packaging of Fruit Juices under FP brand.  Fruits such as Orange, Apple, Pineapple etc would be purchased from Kullu. Fruit Processing & Packaging would be outsourced to local producer.  Mango would be purchased from Hazira and Dahej. Fruit Processing & Packaging would be outsourced to local producer.  Mode of Transport: Road Transport
  • 24.
    Pricing  As anew comer our pricing strategy is to introduce our products in the market at lower prices so as to create huge demand in the market and then compete with other competitors.  As we come up in the demand, we will increase our prices and will provide more efficient and affordable juices
  • 25.
    Pricing Strategy Penetration Pricing Our product will be lie on penetration strategy with high quality & low price  For introducing new product  Price low to capture market share  Expect to make profit in volume
  • 26.
    Promotion  As weare in the Introduction phase, our objective is to create brand awareness through Informative Advertising.  Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample Distribution, Organizing Events, TV Commercial etc.  Tie Up with major Cinema halls to promote our products during Intervals.  In-film advertising, in its most effective form, is about a brand being a part of the cinema's content.
  • 27.
    Web Marketing Social Networking:In order to reach out to the TA and ensure that they feel more connected with the brand it is necessary to start making conversation. facebook  Creating a community on facebook  Creating a Fan page on facebook  This will enable the brand to keep its TA engaged and updated on the introduction of new flavors and events twitter  Creating an active account on a micro-blogging site such as twitter, where regular tweets on product and event updates will ensure interactivity  Followers will be encouraged to tweet their suggestions on new flavors.
  • 28.
     Target ofcapturing 5% of the market share within a year and 30% by 2016-end  Initially we would be outsourcing the processing of fruits, but after 3 years we would check the feasibility of starting our own processing plant.  R&D Department to be set up by 2015 early, in order to facilitate innovation in existing products.  We would open Satellite Branches in Major Cities to facilitate product training & improve on Market Share.  FP Agro will be undertaking a host of energy conservation measures 5 Year Planning
  • 29.
  • 30.