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Alok Mahajan-M090700004 1
Juice Market Analysis-Tropicana &Competition
Alok Mahajan-M090700004 2
PepsiCo Global Headquarters: Purchase, N.Y.
Fortune 500 Company
Employees: Approximately 285,000 worldwide
Chairman & CEO: Indra K. Nooyi
Alok Mahajan-M090700004 3
F.M.C.G Industry Snap-Shot
Indian FMCG industry size estimated at
around US$ 25 bn.
Steady double digit growth in the
sector
Personal care & Food products dominate the
sector
Many categories are currently small
andoffer huge potential
Rural India contributes c. 33%
of the overall FMCG sector
Source: AC Nielsen 4
Category Wise Share of the Sector
baby Care2%
H/hold4%
other5%
personal care22%
food product43%
fabric care12%
hair care8%
otc product4%
Alok Mahajan-M090700004 5
Juice Market-Industry(India)
• Indian Juice industry pegged at Rs 600 Crore Major Growth Drivers
Health Consciousness
Disposable Incomes
Sophisticated cocktail culture
Alok Mahajan-M090700004 6
Consumption Aggregate
Alok Mahajan-M090700004 7
Product InformationTropicana-Impulse Buy
Alok Mahajan-M090700004 8
Packaged Fruit Juice
Fruit Juice
Nectar
Drink
Fruit Content Decreases,water content increases,Price decreases
Dabur’s Real –a real challenge
• Dabur’s Real –Main Competitor– Comes in two Variants –Nectar &
Active
• Dabur’s Real-First Mover Advantage– Tropicana following catch up
policy
• Dabur’s Real Market Share- Delhi 60%
• Tropicana Market Share Delhi-20%
• Tropicana ‘s Aim is to fill the gap of 40%
Alok Mahajan -Summer Trainee-PepsiCo India 9
Alok Mahajan-M090700004 10
Project -3 phases
• Finding untapped market for Tropicana • Find out market share of Tropicana and Real• Find Cross Selling Status of Gatorade• Find Distributor and trade margin of competitors• Improvement -Recommendations
Market Survey-Central Delhi
• Finding untapped sales potential across Traditional Trade of Central Delhi• Calculating manpower needed to cover untapped shops• Find sales that can be generated by Institutes across Delhi
Estimatie Exercise
• Hands on Experience for Tropicana/Gatorade• Traditional Trades-West Delhi
Sales Exercise-West Delhi
Area Covered-Central Delhi
Alok Mahajan -Summer Trainee-PepsiCo India 11
S.No Area Name
1 Chandni Chowk
2 Karol Bag
3 Canaught Place
4 Patel Nagar
5 Old Rajinder nagar
6 Sadar Bazar
7 Pahar Ganj
8 Gole Market
9 Jhandewalan
Alok Mahajan-M090700004 12
Market under Scanner:-Karol Bag
13% 3%
30%
53%
Karol Bag Tropicana StatusNo Juice Market Real Only Tropicana Only Both Present
Shops Tropicana Present
89%
Shops Gatorade Present11%
Gatorade Availability Status-KArol Bag
Shops Covered
30
No Juice Market
4
Tropicana Only
9
Real Only
1
Gatorade Present
3
Both Present
16
14
Market under Scanner-Gole Market, C.P, Pahar Ganj
Alok Mahajan-M090700004
real only6%
trop only45%
real+trop27%
no juice21%
C.P,Paharganj,Gole Market-Tropicana status
Shops Tropicana Present
89%
Shops Gatorade Present
11%
Gatorade Cross Selling Status
Shops Covered
33
No Juice Market
7
Tropicana Only
15
Real Only
2
Gatorade Present
3
Both Present
9
15
Market under Scanner-Chandni Chowk
real only12%real+trop
8%
no juice80%
Tropicana Status-Chandni Chowk
100%
Gatorade Cross Selling Status
Shops Tropicana PresentShops Gatorade Present
Alok Mahajan-M090700004
Shops Covered
25
No Juice Market
20
Tropicana Only
0
Real Only
3
Gatorade Present
0
Both Present
2
Alok Mahajan-M090700004 16
Market Under Scanner-Jhandewalan
No Juice53%
Real+Tropi-
cana7%
Real Only7%
Tropicana Only27%
Gatoraid Only7%
Jhandewala-Status Tropicana
Shops Tropicana Present
83%
Shops Gatorad
e Present
17%
Gatorade Cross Selling Status
Shops Covered
14
No Juice Market
8
Tropicana Only
4
Real Only
1
Gatorade Present
1
Both Present
2
Market under Scanner-Sadar Bazar
Alok Mahajan-M090700004 17
22%
78%
SadarBazar -Tropicana Status Real Only No Real No Tropicana
Shops Covered
9
No Juice Market
7
Tropicana Only
0
Real Only
2
Gatorade Present
0
Both Present
0
Market under Scanner-South Patel Nagar
No Real No Tropicana
31%
Real Only 44%
Trop-icana Only13%
Real +Tropicana13%
South Patel Nagar-Trop-icana
75%
25%
Gatorade Cross Selling Status
Shops Tropicana Shops Gatorade
Shops Covered
16
No Juice Market
5
Tropicana Only
2
Real Only
7
Gatorade Present
1
Both Present
2
Alok Mahajan-M090700004 19
Market under Scanner-East Patel Nagar and Rajinder Nagar
Real Only14%
No Juice
market4%
Tropicana Only29%
Both Present54%
East Patel Nagar, Rajinder Nagar-Tropicana Status
Tropicana Present77%
Gatorade Present23%
Gatorade Cross-Selling Status
Shops Covered
28
No Juice Market
1
Tropicana Only
8
Real Only
4
Gatorade Present
7
Both Present
15
Alok Mahajan-M090700004 20
Market under Scanner-West Patel Nagar
50%
14%
14%
21%
West Patel Nagar-Tropicana Status
No Juice Market RealOnlyTropicana Only Real +Tropicana
Tropican Present83%
Gatorade
Present
17%
Gatorade Cross Selling Status
Shops Covered
14
No Juice Market
7
Tropicana Only
2
Real Only
2
Gatorade Present
1
Both Present
3
Alok Mahajan-M090700004 22
Consolidated Status-Central Delhi
REAL ONLY14%
TROP ONLY23%
BOTH PRESENT28%
NO JUICE35%
Consolidated Status-Central Delhi
Gatorade16%
Tropicana84%
Gatorade Cross Selling Status
Alok Mahajan-M090700004 23
Estimation Exercise=Phase 2Area Population
2010
Shop
covered –
C.E
Shop
covered -
me
Ratio=population/shop Shop
deficit
PSR
required
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
Chandni Chowk 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
Pahar Ganj 733325.45 125 15 5866.60 2808.30 15.60
Total 64,10,541 636 183 25,006 138
Assumptions:-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.
Alok Mahajan-M090700004 24
Institution-Across Delhi
Embassy 58 Hospitals(2006) 140
Psu Joint Venture 55 Hotels 72
Offices relating Sports 11 Private Engineering
Colleges(IP university)
85
Tourism and
Hospitality
4 Gymnasiums 750
Sports Complex 16 Schools 4862
Colleges Under Delhi
University
83 Hospitals 140
Government
Establishments
72 Hotels 72
BFSI 20 Private Engineering
Colleges(IP university)
85
Cooperatives 8 Gymnasiums 750
Educational and
Training
93 Schools 4862
Cultural 21 Forecasted Yearly Sales
(211 crore)
Alok Mahajan-M090700004 25
Sales Exercise-Phase 3Price-Case Quantity-
CasingMargin Price-Casing Scheming
Tropicana100%
1L,12 piece 15% 887 1 carton free with 1 case or 8-10%
Tropicana Nectar
1L,12 piece 15% 782.5 1 carton free with 1 case or 8-10%
Tropicana 100%
200ml,30 piece 15% 573.9 1 case free with 5 case
Tropicana Nectar
200ml,30 piece 15% 469.5 1 case free with 5 case
Gatorade R.T.D500ml,24 bottle 10% 763.6 1case+2 bottle free
Gatorade Powder
35 g,24 mono carton
18% 1830.5 1case+1 Monocarton free
Alok Mahajan-M090700004 26
Sales Exercise
11 new accounts opened
sold 33 Monocarton Gatorade
5 bottles Gatorade R.T.D
2 Cases Tropicana 1L
1 case Tropicana 200ml
Billing Amount
Billing Amount
• Tropicana• Rs.2052
• Gatorade• Rs2675
Alok Mahajan-M090700004 27
Factory
Carry and Forward
Distributor Modern Trades
Wholesalers
Retail Trade
Consumers
Distribution Cycle
Alok Mahajan-M090700004 28
Inference-Phase 1
• According to survey ,only 23 shops in Central Delhi have kept only Real
• If P.S.R sells one case Tropicana 1L and one case Tropicana 200 ml at one such store it will cost 1200INR(app)
• So sales from 23 such stores:-27600INR • P.S.R goes to a store four times in a month for
order then total sales will be 110400INR(1.10L)• So in one year sale will be 1324800INR (13.24L).
Alok Mahajan-M090700004 29
Continued..
• Cross Selling Gatorade lack assiduous effort• According to survey conducted Gatorade should have
been present at 89 stores.• If a sales man sells 3 mono carton each of both flavors
of Gatorade and 3 R.T.D (ready to drink) cost to shop keeper 550INR(app)
• So weekly sales from 89 shops=Rs 48861• Yearly sales from 89 shops=2345328(Rs 23.45L )
Alok Mahajan-M090700004 30
Continued..
• Conversion of 35% no juice market into juice market will help company increase its value.
• Total 59 shops are classified as no juice market.• If Tropicana can crack 40% shops(23 shops) and place goods
worth Rs 1000 over there.• So weekly sales will be Rs23000• Monthly sales will be Rs92000• Yearly sales will be Rs1104000(Rs 11.04 Lakh)
• So from above calculation we can say Tropicana and Gatorade are closing their eyes on sales of Rs.47.73 Lakh yearly from Central Delhi from current operational plans.
Alok Mahajan-M090700004 31
Inference Phase 2
• Shop Deficit-25006.– If Tropicana is able to find and crack 40% of the above existing
shops (10002 shops) then there will be incremental growth in their business.
– Say one case of Tropicana 100% is being placed at each of the counters then weekly sales will be Rs 8001920(80Lakh app).
– So monthly sales will be 32007680(3.2Crore app)– Thereby yearly sales will be 384092160(38 Crore app)– If only one mono carton of each flavor of Gatorade is kept at
these new shops weekly sales hit a amount of Rs1520304(Rs 15.2Lakh)
– Similarly yearly sales will shoot to Rs18243648 (Rs 1.8 Crore).
Alok Mahajan-M090700004 32
Continued..
• According to manpower and resource estimation Tropicana need to have 138 P.S.R.
• Tropicana had 19 P.S.R For central Delhi so we need to hire 117 P.S.R.
• One Central executive handles 4 P.S.R so Tropicana needs to hire 30 Central executive. Hitherto Tropicana Division had 14 C.E ,So openings are for 16 C.E.
Alok Mahajan-M090700004 33
Inference-Phase 3
• Sampling is a good way to sell your Gatorade Powder.
• Frequent attrition of distributor makes a parochial outlook for Tropicana among retailers.
Alok Mahajan-M090700004 34
Recommendation
• Cover all the market gaps in order to take pie of hidden business worth 47Lakh INR according to sample size.
• Execute plan of estimation exercise to reap benefit of 38Crore Hidden Sales for Tropicana and Rs 1.8 Crore for Gatorade in one year.
• Tap in more and more institutes like hotels, schools, offices, gymnasiums.
• For sales of Gatorade follow O.S.O.S -“ONE SHOP ONE SAMPLE” principle
Alok Mahajan-M090700004 35
Continued
• Have a retailer competition where retailer who will sell maximum juice in month will get a prize.
• Promote Upselling -accelerate cross selling• Capture Sadar Bazar, Chandni Chowk-Great
Opportunity• Push Gatorade in areas like Paharganj –
attracts tourist
Alok Mahajan-M090700004 36
Continued
• Make Distributor Happy-– Give him Credit-15 days– Make Replacement Policy Simple– Provide IT enabled application to streamline
process• Work On Attrition Rate of Distributor to
increase trust of Tropicana in heart of Retailers
Strengths
High Quality product -Great Nutritional valueGatorade-Worlds; No 1 fitness drink @ affordable pricesTropicana great value to retailer-15% marginGatorade great value to retailer -18% marginRising health awareness among customers
Opportunities
Untapped markets of T.T serves as base for new untapped business-chandni chowk, Sadar bazaar
Latest Promotions increasing Brand Awareness among Consumers
Great Potential -Institutions-Colleges, Schools, Gymnasiums
Common wealth games-Gatorade
Threats
Pirated ProductsCheap variant of juicesInflation-rising prices of Commodities
Weaknesses
Dabur's Real ubiquitous across Delhi MarketFollowing Catch up PolicyMarket GapsAttrition rate of Distributor @West DelhiLact I.T infrastructure at Distributors end
S W
TO
Alok Mahajan-M090700004 38
• Thank You