FRUIT JUICE ( BEVERAGE ) INDUSTRY- G R O U P 9

- A E G I D I U S S A V I O M O N D O L

- A L O K K U M A R

- A R I F A L I B I S W A S

- C H A N D R A K A N T E Z O N G

- C Y R I L V I C T O R

- P R E T A M L A H A

- R A N J E E T S I N G H

CURRENT MARKET SCENARIO

The juices category was valued at INR18,949.2m ($459.2m) in 2012, representing a CAGR of 20% since 2005.

Players like Dabur Foods, Pepsi Foods, Godrej Industries' Foods Division, Mother Dairy and even the small Ladakh Foods are betting big money on this market by flooding it with new fruit beverages. "It's a huge market with its potential still to be tapped," says Sanjay Sharma, head of marketing at Dabur Foods.

The juices market was led by fruit drink (0-29% juice) (representing 72.2% of the total value) followed by nectar (30%-99% juice) and 100% fruit juice (from concentrate), with a 23.5% and 3.8% market share, respectively. Vegetable juice accounts for the remaining 0.5% share.

The rising consumption of packaged products reflects the demand for the organized juice market. 

GROWTH DRIVERS

There are several reasons behind the growth the Indian Packaged juices category has realized; some of these are mentioned below.

Changing consumer lifestylesIncreased Health Awareness Hygiene mattersBooming modern retail Introduction to new flavors

Market Segmentation

The fruit juice market is segmented between real fruit juices and synthetic drinks.

The real fruit juices are based upon natural fruit pulp.

The synthetic drinks are synthetic products with fruit or other flavours.

Segmentation could also be on the basis of benefit provided to the consumer

Nutrition ContentThirst Quenching

Another why broad segmentation can be on the type of situation in which the drink is used

People who are on the more e.g outdoorPeople who are using it on breakfast table as

the part of their menu.

MAJOR PLAYERS in the MARKET

DABUR INDIA

Réal has been the preferred choice of consumers when it comes to packaged fruit juices, which is what makes India's No. 1 Fruit Juice brand. A validation of this success is that Réal has been awarded ‘India’s Most Trusted Brand’ status for four years in a row.

A research conducted by Blackstone Market Facts even pointed out that Réal was preferred by over 50% of the respondents. What’s more, Réal was liked for being the better tasting juice - a category where likeability is primarily driven by taste.

Real Fruit juice

ACTIV

Burrst

PEPSICO | India

TROPICANATropicana continues to select the best fruit to manufacture high-quality juices and original products, pioneer innovative processes and explore new markets for its products. It is committed to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide the daily benefits that one needs.

TROPICANA 100 %

TROPICANA

SLICE Slice was launched in India in 1993 Slice Mangola was introduced in 1994

NIMBOOZ

India’s first nationally available packaged Nimbu Pani. It was launched in India in 2009.

DUKES

Founded in 1889 by Dinshwaji Pandole, a Parsi gentlemanBought by PepsiCo in 1994

Coca-Cola | India

Minute – Maid PULPY ORANGE

NIMBU FRESH

GUAVA

MAZAAIntroduced in 1970s, Maaza has today come to symbolize the very spirit of mangoes. Universally loved for its taste, color, thickness and wholesome properties, Maaza is the mango lover's first choice

PARLE - AGRO

FROOTI

APPY Fizz

GRAPPO Fizz

PORTER’S FIVE FORCES ON

FRUIT JUICE INDUSTRY

PORTER’S FIVE FORCES

The Five Forces were Porter’s conclusions on the reasons for differing levels of competition, and hence profitability, in differing industries. They are empirically derived, i.e. by observation of real companies in real markets, rather than the result of economic analysis.

Porter’s Five Forces model is a useful generic structure for thinking about the nature of industries. The definition of an industry is as follows: “The group of firms producing products that are close substitutes for each other”.

Michael Porter – Competitive Strategy

PORTER’S FIVE FORCESMODEL

Competitive Rivalry in the Industry

The Rs 100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually, with Tropicana and Real holding 40% market share each

The market can be categorized in terms of product content and there are three major product contents available:

Drinks: juice with pulp less than 40% Nectars: juice with pulp content between 40-80% Juices: juice with pulp content more than 80%

Parle Agro’s Frooti, a mango drink, was introduced in 1985 and since then has been a leader in its segment

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 FLAVOURS

1. Parle Agro Frooti Mango, Guava, pineaple, mango

Appy apple

Grappo grapes

2. Pepsico Ltd. Tropicana Orange, apple, grape, mango, mixed fruit

Slice Mango, orange

3. Dabur Real Grape , guava, orange, mango, mixed fruit, litchi

Real Active Orange, apple

…continued

4. Coca Cola Maaza mango

5. Godrej Foods Jumpin Orange, apple

Dabur was set up in 1997 had brands like Hommade, Lemoneez in its basket. Later, it has two brands of juice in the market Real, & Real Active The Pepsi operations in India are part of the new Asian division of Pepsico beverages international, Tropicana and Gatorade, the sports beverage company acquired from Quaker Oates Currently, in terms of market share, Tropicana is believed to trail Behind rival Real(Dabur) but it is not far behind and also has close to 40% market share of the estimated Rs 100 crore branded juice market

MAJOR COMPETITORS

THREAT OF NEW ENTRANTS

Dabur launching a new range called Coolers, which includes traditional recipes like Aam Ka Panna (a green mango drink). It has also launched a pomegranate juice and a watermelon drink. A jamun variant will soon follow

Pepsi Foods is also aiming at customers with more exotic tastes with an orange-apple combination and a tropical fruit fusion drink (a mix of mango, guava, pineapple, orange and apple juices)

Market is attracting newcomers like Mother Dairy, which recently launched the Safal brand of juices. Safal is currently available in orange, mixed fruit, grape and an orange-apple combination.

THREAT OF SUBSTITUTE PRODUCTS

Fruit juice companies have to face a two level competition i.e., on the first level with the substitutes and then the players within the industry. The ‘sip war’ comprised of the following players with respect to India

Soft drinks (both carbonated & non- carbonated) Flavoured milk (energy, njoy etc..) Mineral water Other products (buttermilk, lassi) Fresh fruit juices vending from kiosk fountains (produces instant

juices from fresh fruits in the presence of customers)

BARGAINING POWER OF CUSTOMERS

Customers are money conscious where the purchase of fruit beverages is concern

Customers are not ready to explore in the marketBrand loyalty is high in case of kidsIt has the implications for the need for availability of the product

and in the right form (chilled form)Young adult and teenagers predominantly consume tetra pack

drinksCustomers go for convenient and economic productsPer capita consumption of juices in India is estimated at a

fraction of a litre i.e. 200ml

BARGAINING POWER OF SUPPLIERS

Around 96% of the grapefruit juice concentrate imported in the EU is sourced from just five markets

Israel is the most important of them, contributing 50% of a total import volume

The US accounts for another 21%, with 8% to 10% sourced from Cuba, Mexico and South Africa

Ecuador is known to be the major source of passionfruit purees and concentrates used in juices, both in the EU and elsewhere in the world

Almost all single-strength mango purees are sourced from South East Asia, principally India and Pakistan

Cranberry juice concentrate is primarily, although not exclusively, sourced from the US, where around two thirds of the world’s cranberries are cultivated

Peach and guava are sourced from a number of different markets, China, Turkey and India being prominent suppliers of each, with Malaysia also believed to be of consequence to the guava trade

PRODUCT MIX

The set of all product lines and items that a particular seller offers for sale. Width:the number of different product lines the company

carries. Length:the total number of items the company carries within

its product lines. Depth:the number of variants offered of each product in the

line. Consistency:how closely related the various product lines are

in end use, production requirements, distribution channels, or some other way.

PRODUCT LINE EXTENSION In the JUICES range Dabur introduced : Coolers (Low fruit Content) Real ( High fruit pulp Content) Real ACTIV (Health Conscious Youth) Real Juniors (for the children below 6 years of age) Real Schoolpack

WHY THESE STRATEGIES?

Line Extension Strategy was adopted by Dabur because: It could attract different target audience Could renew Interest and liking for the brand by introducing

new variants It could increase its market share Diversify without much risk Moved from its Core strategy and hence could give customers

something better and different

POSITIONING

Dabur through its diversified brands has tapped various target segments like the :

Youth Health Conscious People School Children Mothers Existing Old age group

Innovators Late Majority LaggardsEarly

adoptersEarly

Majority

Classification of Adopters

Adopters can be classified into five groups based on the time when they adopt:

INNOVATORS: The first 2.5 per cent to adopt innovation.

EARLY ADOPTERS: The next 13.5 per cent to adopt.

EARLY MAJORITY. The next 34 per cent to adopt.

LATE MAJORITY: The next 34 per cent to adopt.

LAGGARDS: The final 16 per cent to adopt.

Branding Strategies

Tropicana (PepsiCo.)

The new Tropicana 100% juice communication, aims to unlock the juice category in India, by positioning it as a critical constituent of the breakfast menu. With the growing lifestyle trend of ‘rushed breakfast’, nutrition often tends to get compromised. The new campaign introduces the powerful functional benefit of nine natural fruit nutrients in the juice.

Tropicana as a brand is all about nutrition. The new campaign ‘Let’s Make Breakfast 100%’ reinforces the wonders of a warm, nutritious and fulfilling breakfast. This serious everyday issue is tackled in an entertaining and engaging manner.

It is all about the goodness of juice, without the preservatives and artificial flavors.

Real (Dabur)

It is now focusing to highlight the nutritional aspect of its juices as against the earlier practice of promoting the brand for taste.

Over the years, consumers have accepted the taste (of Real) and loved it. And, now they are educating consumers about the nutrition aspect of our juices. Hence, we decided to go for a re-branding.

As part of the exercise, the company has changed the logo and also the packaging of all its Real products. Besides, it has also signed on actress Sonali Bendre to promote the brand.

Frooti (Parle Agro)

"A mango drink was an immediate hit, but the hero of the story was the pack." Tetra packs were unknown to the Indian subcontinent, "Cold drinks were sold in glass bottles to be returned after consumption. But you could carry the tetra pack with you, it was a new thing to do" .

The 'Why Grow Up' campaign was launched. A voice for Frooti that was well within its values and yet so cool and contemporary that people in their heads said, 'Wow! I didn't look at Frooti like that. The 'Fresh n juicy' line which was a baseline earlier became the brand philosophy. On the 'Why Grow Up' theme, "It sounded the most promising bet for the brand because it embodies the spirit of mango. It turns the associations of Frooti with children and childhood on its head, and to its advantage. The logo of Frooti was given a contemporary tweak, the packaging was made brighter and cleaner created Mango Emotions fondly called 'Mangoticons'.

Next came the 'Mango Surprise' campaign for Frooti in 2010 where surprise pranks were executed live on people across major metros. Giant mangoes were dropped from trees and 8-foot mangoes rolled down sloping roads on unsuspecting pedestrians. These moments were captured on hidden cameras and later edited to create the brand's TVC, viral and branded entertainment content. Over 600 juicy mango pranks were played across 30 centres.

Maaza (Coca-Cola)

Maaza's equity is built its equity on campaigns like "Taaza mango Maaza mango", "Bina Guthli Aam" which tried to sell people on the superiority of Maaza to a plain vanilla mango.

Aimed at establishing the all season proposition of the brand, increasing consumption all year long, It is a well established fact that mango consumption is a national phenomenon in INDIA.

Alongside the high-decibel TV campaign, the other components of the brand campaign include out-of-home and on-ground initiatives as well as point of sale activation across key markets. The brand is also looking to leverage digital in a big way for the first time. The brand is betting and investing big-time on the festivals to increase the occasions of consumption". For instance, recently for the first time the brand launched a separate campaign for the southern market around Pongal (in Tamil Nadu, Andhra Pradesh and Karnataka).

.

The campaign takes forward last year's 'Har Mausam Aam' premise to make it 'Har Mausam Love, Har Mausam Aam' and has the popular Bollywood stars Imran Khan and Parineeti Chopra as the new faces for the brand. Set in winter, the film portrays Parineeti as a mangocrazy young girl who has many boys in the neighbourhood crazy about her. In a modern day 'swayamwar' like situation, she announces that he who gets mangoes as” in the off-season will be the chosen one. Accordingly, while the average johnnies set off to look for the elusive fruit, the smart-aleck Imran manages to win her over by offering her the all-season mango delight in a bottle as” Maaza. This campaign marks the first time that the brand has gone in for two big-ticket celebrities.

Elaborating on the brand fit of the two faces, Sridhar adds, "Both Imran and Parineeti are young achievers with a refreshing new outlook to the world. They epitomise the young India — they are go-getters, energetic, sure of themselves and wanting to make a difference." The association is also being looked at as helping strengthen the brand's appeal amongst the youth.

Slice (PepsiCo.)

Mango has been always been associated as a highly indulgent fruit and is known to be a favourite amongst mango lovers. Therefore, for Slice, it was a natural progression to build its brand proposition on the plank of mango pleasure and indulgence. Supporting the new face of Slice is there novel creative idea of 'Aamsutra' .Confident that the great new taste , cool packaging and creative communication will appeal to mango lovers

Slice never had a proper consistent positioning. While Frooti and Maaza positioned itself on the Real Mango Flavor platform, Slice was a confused brand. In 2006, the brand took the positioning of a provider of simple joy platform. The tagline was " Simple Joy ka Raas " . But there also the brand did not catch the imagination of the consumer.

The concept of Aamsutra has created a distinct identity for the brand in the category and has been well received by consumers. The whole concept of the Aamsutra campaign is to bring alive the sensorial, highly pleasurable experience associated with enjoying this fruit. The Slice campaign is known for its distinct imagery and this year’s new campaign themed ‘Ab Ras Barsega’, celebrates the joy and abundance of mangoes in the form of ‘Ras Ki Holi’. The campaign has a totally new Indian look and feel and takes the Slice experience of mango indulgence to another level. In terms of a differentiated positioning, we intend to own the platform of pure mango pleasure. We are confident that this new campaign will create further consumer connect, thus driving consumption.

The creative thought behind the new communication was to enhance the Slice experience into dimensions of pleasure, sensuality and indulgence. These are very relevant yet untapped codes of this category. Most players are appropriating the basic attribute of the fruit, whereas the differentiation lies in pushing mango pleasure to the next level. And that is exactly what 'Aamsutra'will do.

Slice also roped in the Bollywood Diva Katrina Kaif as the brand ambassador. The brand launched its first Aamsutra campaign during the summer of 2008

INTEGRATED MARKETING COMMUNICATION

DABUR REAL

India no. 1 fruit juice

Brand Ambassador:- Bipasa Basu

'India's Most Trusted Brand' status for 8 years in a row

Real Juices, from the Dabur Group has unveiled its new six-layer packaging design and campaign. Focussing on the nutrients aspect of packaged juices, the brand has also roped in Sonali Bendre-Behl for the campaign

Real also announced its tie-up with the latest superhero

movie, Man of Steel, as part of which the Real

200ml packs will feature a promotion where

consumers can SMS and stand to win Man of Steel

goodies

Along with the traditional mediums of television, print, OOH, among others, the brand has also tied up with three DTH operators for this campaign. During the campaign, every time a viewer switches on the DTH service, he is greeted with the advertisement (TVC on Tata Sky and static banner for eight seconds on Dish TV and Airtel).

Mazza

A COCA COLA PRODUCT

BRAND AMBASSADOR:- IMRAN KHAN & PARINEETI CHOPRA

Maaza bets on Mangoes' all season love with 'Har Mausam Aam' campaign

In 2009, the company launched an intergrated communication design to position Maaza as the best and the only way to quench thirst for the mango lovers with its tagline- “Maaza Lao, Aam Ki Pyaas Bujhao”

In 2012, Maaza launches the New- “Har Mausam Aam” campaign. This campaign aims to provide the mango lovers across the country to satiate their desire for mangoes throughout the year

2013 – The new Maaza Ad positions the brand around ‘romance’. Maaza takes the idea of “Har Mausam Aam” forward and adds a delightful twist of ‘love’ starring popular Bollywood stars- Imran Khan and Parineeti Chopra in their TV commercial. The campaign titled ‘Switty’

PARLE FROOTI

BRAND AMBASSDOR:- SHAHRUKH KHAN

Parle launches Frooti Foundation

The Frooti Foundation donates a carton of mangoes to an orphanage

The company has signed up with Radio One for 'Aam baatne se bat tha hai

The new campaign for Frooti, which continues the brand’s positioning of ‘Why Grow up?’

INTEGRATED MARKETING COMMUNICATIONS

TROPICANA

After a successful series of TVCs on the theme – ‘Now Breakfast Shall Win’, Tropicana is launching ‘Tropicana Breakfast Club’ on leading social networking platforms like Facebook and Twitter. The recently launched campaign metaphorically depicts everyday battles between breakfast and the interruptions that lead to a rushed morning - to establish Tropicana 100%’s relevance in this situation

India Resort in Alibag to be rebranded as U Tropicana Alibag and to be managed by Absolute Hotel Services India

SLICE

BRAND AMBASSDOR:-KATRINA KAIF

Slice continues with Aamsutra brand proposition for new campaign

Slice launches in Mumbai to bring Pure Mango Pleasure to India's Mango Capital

Slice offers opportunity to date Katrina Kaif this summer

Slice builds on indulgence with Pure Pleasure Holidays

PRODUCT INNOVATION

Dabur came out with the first 100% fruit juice with its brand Réal Activ range of fruit and vegetable juices with no added sugar & preservatives. 

 Dabur came out with the first fruit fibre beverage – Réal Activ Fiber+.

 Dabur launched Real Junior has been launched in two

flavours - mango and apple, enriched with calcium, in 125 ml packs for children below six years.

 Dabur added the 'exotic fruit nectar variant in its list

Product Innovation By Pepsico

PepsiCo launches a First ever in the industry- NEW

Tropicana Coconut fruit blends

PepsiCo launches new Tropicana Fruit powders with real fruit juice & no added preservatives, artificial flavours or artificial colours

PACKAGING

Parle Agro launched frooty in a pack of rs 5 for 110ml

Real Activ Drinking Yoghurt is packed using advanced six layers Tetrapak technology that keeps it fresh for six months without any preservatives.

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