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A hypothetical case of launching a fruit juice product in india by a mnc company. For consumer behavior analysis
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Global beverage ltdSubmitted by Amit
Niharika
Navien
Demand Of Fruit Juice in India
Year Rs(bn)2007-08 6.302008-09 6.852009-10 7.402014-15 10.90
Year FJC(%)
1990-91 - 1996-97
40.3
1996-97 - 2001-02
16.1
2001-02 - 2006-07
10.3
2004-05 - 2009-10
16.0
2009-10 - 2014-15
15.0
CAGR 30% one of fastest growing industryValue 1500 cr(2011)Expected CAGR : 15% in 3 yrsHealth concern awareness increasing among consumersClassify the colas and h=jucies as differentHas aceepted juices as social drinkConcerns: highly price sensitive market
Market Growth Rates of Fruit Juice in India
Fruit Juice in India
Market trends
WAGU health drink
Positioning: supplement with morning breakfast
Potential: 1.12 bl uses som form of food and beverage(generalizing 12 city search to national level of 1.2 bl population 93% of the respondents consumed some form of foodor beverage, other than water in the morning.
WAGU
Quality
Pri
ce
Launch Strategies
• Launch plan• Aggressive launch throughout all the
important cities. Initial targets small and little populated cities
• Promotion budget• 30% 1st yr and gradually reducing to 2.5% of
sales at the end of 3rd yr
Jan Feb Mar Apr May Jun July Sep Oct Nov Dec
Phase 1
Phase 2
Phase 3All small and mid citiesMetros and villages Follow-up
Advertising & budgeting
• Strategy & execution• Mother and spouse as a major decision maker• Emotional marketing showing relationship
values and health• Media : TV, Radios
• AD spending 30% of target sales in 1st yr
Projected sale: 12 crore bottle in 1st yr
jan feb mar apr may june july aug sep oct nov dec0
2
4
6
8
10
12
14
Projected sales
Sale
s in
cro
re
Advertising & budgeting continues…Total sales= 10crore unitRevenue= 200 croreAd spending= 30% of total revenue= 60 crore(approx.)
TV AD: Frequency: 2 ads for 5 hr 3days a weekIn 4 channels
Cost: 2*3*3*52*4*100000 = 37.44crore
Radio ad:Frequency: 2 ads/ hr for 5hr all days in 3 channels
Cost: 2*5*365*2*10000= 10crore
public campaign by company year2 in a month in 12 cities(5000*2*12) 1.2 lac 14.4lac1/month in 1000 small cities 50lac 6 cr(5000*1*1000= 50 lakh)
Total(approx) 6.15 cr
Remaining 5 cr will in sponsoring events:-School contest-Seminars
Awareness Program
THANK YOU