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Juice Market Analysis- Tropicana &Competition Alok Mahajan-M090700004 1

Juice market industry(india)

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Page 1: Juice market industry(india)

Alok Mahajan-M090700004 1

Juice Market Analysis-Tropicana &Competition

Page 2: Juice market industry(india)

Alok Mahajan-M090700004 2

PepsiCo Global Headquarters: Purchase, N.Y.

Fortune 500 Company

Employees: Approximately 285,000 worldwide

Chairman & CEO: Indra K. Nooyi

Page 3: Juice market industry(india)

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

Page 4: Juice market industry(india)

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%

Page 5: Juice market industry(india)

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

Page 6: Juice market industry(india)

Alok Mahajan-M090700004 6

Consumption Aggregate

Page 7: Juice market industry(india)

Alok Mahajan-M090700004 7

Product InformationTropicana-Impulse Buy

Page 8: Juice market industry(india)

Alok Mahajan-M090700004 8

Packaged Fruit Juice

Fruit Juice

Nectar

Drink

Fruit Content Decreases,water content increases,Price decreases

Page 9: Juice market industry(india)

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

Page 10: Juice market industry(india)

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

Page 11: Juice market industry(india)

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

Page 12: Juice market industry(india)

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

Page 13: Juice market industry(india)

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

Page 14: Juice market industry(india)

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

Page 15: Juice market industry(india)

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

Page 16: Juice market industry(india)

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

Page 17: Juice market industry(india)

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

Page 18: Juice market industry(india)

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

Page 19: Juice market industry(india)

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

Page 20: Juice market industry(india)

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

Page 21: Juice market industry(india)

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.

Page 22: Juice market industry(india)

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)

Page 23: Juice market industry(india)

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

Page 24: Juice market industry(india)

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

Page 25: Juice market industry(india)

Alok Mahajan-M090700004 27

Factory

Carry and Forward

Distributor Modern Trades

Wholesalers

Retail Trade

Consumers

Distribution Cycle

Page 26: Juice market industry(india)

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).

Page 27: Juice market industry(india)

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 )

Page 28: Juice market industry(india)

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.

Page 29: Juice market industry(india)

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).

Page 30: Juice market industry(india)

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.

Page 31: Juice market industry(india)

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.

Page 32: Juice market industry(india)

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

Page 33: Juice market industry(india)

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

Page 34: Juice market industry(india)

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

Page 35: Juice market industry(india)

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

Page 36: Juice market industry(india)

Alok Mahajan-M090700004 38

• Thank You