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Marketing Management A Project Report on FP Agro Pvt Ltd Group Members Marshall D’Souza # 115 Maulik Mehta # 136 Nikhil Mehta # 137 Vishal Pansari # 149 Kamlesh Parmar # 150 Niket Raut # 161
AgendaIndustry AnalysisWhy this Product?About the CompanyMission & VisionTarget MarketCompetitive AnalysisSWOT AnalysisMarketing Mix (4 P’s)
INDUSTRIAL ANALYSISBranded fruit beverage market in India is estimated to be worth Rs. 1,200crore (nectars, drinks and juices combined)Juices - over 85% pulp contentNectars - 20% to 85% pulp contentFruit Drink – Less than 20% pulp content Segment Market Share Juices 30% Nectars 10% Fruit Drink 60%
INDUSTRIAL ANALYSISThe Fruit Drink market has grown at a 20% to 25% rate.Of this, more expensive juices segment has grown at rate of40% this year. It accounted for only 15% of the fruit beverage 3years back.In–home consumption of juices has gone up from 30%, threeyears back to 80% today.Mango based drinks account for two thirds of fruit drinksindustry.More than 80 % of sales happen through the unorganizedroute - juice centers, street corner shops and so on
About FP AGRO PVT LTDFP Agro will produce fruit juice & fruit drinks.FP Agro is going to make unique position in terms ofcorporate presence with its advanced technology and theinstrumentation required to manufacture a Juice that hasmany different flavors, for utmost customer satisfaction.FP Agro will be an environment-friendly company dedicatedon sustainable development and corporate socialresponsibility, as a service to society and preservation ofnature.FP Agro headquarter will be situated in Mumbai and it wouldbe 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 about9% of the world’s production of fruits.Though India has a strong raw material base, it has been unable to tap thepotential for processing and value addition in perishables like fruits andvegetables.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 Product1) Changing age profile- A relatively larger share of young population which has the ability to spend on processed foods2) Increase in income- The middle and upper middle income groups growing at a faster rate than in developed countries resulting in higher spending on food3) Social changes- Increasing number of working women4) Life style factors- Increasing health consciousness and need for convenience fruit drink5) Availability of Organized Retail outlets- These provide the much needed forward linkages
TARGET MARKETPrimary Market – Kids – Fond of Fruit Juice (fond of mango, strawberry) – Teens – More experimental – Youth – Experimental and more buying power – Working People – Housewives – Elderly peopleSecondary Market – Travel Industry – Airlines, Railways and Local Transport Systems – Recreational – Movie Theatres, Malls, Amusement Parks. – School, Colleges – Hotels, Restaurants, Bars etc.
Market SegmentationMarket segmentation is the process in marketing ofdividing a market into distinct subsets (segments) thatbehave in the same way or have similar needsVariables Used for Segmentation1) Geographic variables2) Demographic variables3) Psychographic variables4) Behavioral variables
Market Segmentation Variables Geographic DemographicBy leveraging the benefits of liberalization and Age – all age groupintegration of the markets of the world, FP will Gender – Both Male and Femaleseek to serve both domestic and international Family size - doesn’t mattercustomers. Education - doesn’t matterMetropolitan Cities, major cities/towns of the Income – middle & hi end consumerstates. Occupation – student, working and retired peopleDensity of Area: Urban, Semi-urban, Rural. nationality/race – doesn’t matter language - doesn’t matterClimate: Tropical Psychographic Behavioral Personality No benefit sought product usage rate Lifestyle Yes brand loyalty Value Yes profitability Attitude Yes income status
Major Competitor AnalysisDaburs flagship brand Real fruit juice is a Tropicana is a product of vast PEPSImarket leader in the packaged fruit juice family and has a market share of 25%category. The company sources orange juiceReal with a market share of 57 % offers to concentrates from Brazil.its consumers the largest range of 9 juices They come in Tetrapaks of one litre andthat comprise orange, mango, pineapple, PET bottles of 500 ml and one litre.mixed fruit, grape, guava, tomato, litchi andcranberry. Pepsi also markets Gatorade an energy drink for the sports personnel which is aReal Active orange carrot juice, Indias first sugar-free Diet Pepsi.packaged fruit + vegetable juice. Pepsi, in association with Unilever haveSpread over 11 acres and geared to process launched Lipton iced tea150 tonnes of fruit per day, it has thecapacity to produce 192 tonnes ofpulp/concentrate
Major Competitor AnalysisFrooti from Parle Agro is the largest Maaza was launched in 1976.distributed fruit drink with 85% market In 1993, Maaza was acquired by coca colashare (Tetra Pack) India.It reaches more than 10 lakh retail outlets Over the years, Maaza has becomein up to class C towns synonymous with mango. Parle’s Agro’s APPY, in 1996 had a The drink became a hit with successfulmarket share of 5% in the fruit drink advertisement campaigns like "Taazasegment mango, maaza mango, and Botal meinIn 2003 its new variant-APPY FIZZ was aam, maaza hain naam.launched which was a hit. It is available in 200 ml , 250 ml , 125 ml Tetrapak and 200 ml Tetrapak.
Strengths & Weakness of Competitors Name Strengths WeaknessCavinKare Pvt Ltd Acquired Maa Fruits Pvt Ltd Entering in a new Distribution network segmentCoca Cola India Global leader in beverages New Entry Growing FastPepsiCo Global Brand in beverage Less Product LineParle Agro Market share Less Product LineDabur Market leader Less cost effectiveGodrej Beverages Innovation New entryLadakh Foods Nutrients TasteMother dairy Cost Effective New Entry
SWOT ANALYSIS STRENGTH WEAKNESS • Adequate availability of raw • Seasonal availability of fruitsINTERNAL materials • Brand acknowledgement • Price, a competitive advantage • Late entry into the market. • Natural Product. • Dependence on HP fruits. • Dependence on Monsoon OPPORTUNITY THREATS • Participation with a growing • Cut throat competitionEXTERNAL industry. • Unstable government policies • Competitive advantage over • Rising Global Warming carbonated soft drinks. • Success of incredible India campaign • Possible deal with Mumbai Criket Association (MCA).
ProductFresh Punch is a 100 percent fruit juice whichwill be produced and marketed by the FP AgroIndustries Ltd.BRAND NAME: FRUIT PUNCH
Our Product VariantsMixed Fruit Orange Crispy Apple Mango Bytez Mania
Product Life CycleOur product lie in Introduction Period of PLC Low sales High costs per customer Negative profits Innovator customers Few competitorsObjective: 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 Hazira and Dahej(Himachal Pradesh) (Gujarat)
PlaceIn the initial phase we would be outsourcing fruit processingand packaging of Fruit Juices under FP brand.Fruits such as Orange, Apple, Pineapple etc would bepurchased from Kullu. Fruit Processing & Packaging would beoutsourced to local producer.Mango would be purchased from Hazira and Dahej. FruitProcessing & Packaging would be outsourced to localproducer.Mode of Transport: Road Transport
PricingAs a new comer our pricing strategy is to introduceour products in the market at lower prices so as tocreate huge demand in the market and then competewith other competitors.As we come up in the demand, we will increase ourprices and will provide more efficient and affordablejuices
Pricing StrategyPenetration 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
PromotionAs we are in the Introduction phase, ourobjective is to create brand awarenessthrough Informative Advertising.Use of Print Media, RadioAdvertisement, Hoardings in PublicSpots, Sample Distribution, OrganizingEvents, TV Commercial etc.Tie Up with major Cinema halls topromote our products during Intervals.In-film advertising, in its most effectiveform, is about a brand being a part of thecinemas content.
Web MarketingSocial 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.
5 Year Financial Planning (Rs. in lacs)No. Particulars 1st Year 2nd Year 3rd Year 4th Year 5th YearA Installed Capacity (In Tonnes) 1070 1070 1070 1070 1070 Capacity Utilisation 75% 85% 85% 85% 85% Sales Realisation (20 % Growth yoy) 115.00 138.00 165.60 198.72 238.46B Cost of Production 23.00 27.60 33.12 39.74 Raw Materials 54.75 60.23 66.25 72.87 80.16 Packing Material 4.25 4.68 5.14 5.66 6.22 Salaries 21.25 23.38 25.71 28.28 31.11 Stores & Spares 1.50 1.65 1.82 2.00 2.20 Selling and Distribution 8.50 9.35 10.29 11.31 12.44 Administrative Expenses 5.00 5.50 6.05 6.66 7.32 Total 95.25 104.78 115.25 126.78 139.46C Profit before Interest & Depreciation 19.75 33.23 50.35 71.94 99.01 Interest on Term Loan 3.32 3.32 3.32 3.32 3.32 Interest on Working Capital 0.28 0.28 0.28 0.28 0.28 Depreciation 2.23 2.23 2.23 2.23 2.23 Net Profit 13.92 27.40 44.52 66.11 93.18 Income-tax @ 20% 2.78 5.48 8.90 13.22 18.64 Profit after Tax 11.14 21.92 35.61 52.89 74.54 Source: MOFI (Ministry of Food Processing Industries )
5 Year PlanningTarget of capturing 5% of the market share within a year and30% by 2016-endInitially we would be outsourcing the processing of fruits, butafter 3 years we would check the feasibility of starting our ownprocessing plant.R&D Department to be set up by 2013 early, in order tofacilitate innovation in existing products.We would open Satellite Branches in Major Cities to facilitateproduct training & improve on Market Share.FP Agro will be undertaking a host of energy conservationmeasures
BibliographyInternet:mofpi.nic.inwww.exportersindia.comnews.reportlinker.comwww.indiaagronet.comhpagrisnet.gov.inwww.scribd.comMinistry of Food Processing Industries :Ministry of Food Processing Industries (MFPI): MFPI is the Nodal agency fordevelopment of the processed food sector in the country. MFPIs financialassistance schemes include schemes for technology upgradation, HRD, Qualitytesting, R&D, TQM, backward and forward integration, development ofinfrastructure including food parks, abattoirs, cold chains etc.