juicy battle

8/14/2019 Juicy Battle

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JUICY BATTLE


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Need Family

Juice

Product ClassNon-carbonated

Beverages

Beverages

Product Line

Packaged

JuiceProduct Type

ProductFamily

Thirst

Quenching


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ROUND #1


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To become worldspremier beverageindustry and therebycreating healthy

financial rewardsand growth

To provide largestrange of refreshing,preservative freefruit beverages for

the health and wellbeing of everyhousehold

VisionVision


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COMMITMENT

1. Promoting health &wellness

2. Focus on productreformulation

COMPETENCY

1. Strong productportfolio

2. Developing nichebusiness

3. Ayurvedic foundation

STRATEGIC INTENTSTRATEGIC INTENT


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Total soft drink

(Organised)

3 8 0

6 1

C a r b o n a t e dN o n c a r b o

Total Market

Rs4418Cr

14%

86%

Unorganised Organised

Total Market

Rs4392Cr

Total Non-carbonated

market

MARKET STATS


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Drink

65%

27%

8%

Fruit juice Nectar Drink

9%

3%1%

55%

2%

30%

Real TropicanaNBBD-Safal Parle-Appy

Godrej-Xs Other

Non-Carbonated beverage

Total:

Rs615CrTotal:

Rs215Cr

Fruit juice & Nectar

Over all segment growth rate=27%; Expensive segment growth=40%

MARKET SHARE


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62

34

58

35

55

38

0

10

20

30

40

50

60

70

2004 2005 2006

Real Tropicana

MS

Time

Dabur

Market share

Due to new entrants

Trop


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Net sales contribution of different Dabur business

CCD CHD DFL IBD Others

67% 8% 11% 13% 1%

FOOD

11%

Particulars Rs Cr

Net revenue

(%Growth)

1039.6

(17.8)

PAT

(%Growth)

126.6

(12.2)

EPS 2.2

DFL

(%Growth)

190

(27)

PBIT(DFL)

(% Growth)

13.6

(15.8)

Juices

( % Growth)

66.4

(29)

Growth only 2nd toCCD business(30%)


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Real active9%

Junior

6%

Others

5%

Real

80%

Real Real active Junior Others

Reals-Contribution to top line

DFL=190Cr


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Net sales contribution of different Pepsico business

PI FLNA PBNA QFNA

35% 32% 28% 5%

International

35%

Particulars $ Mn

Net revenue

(%Growth)

32562(Rs147KCr)

(11)

EPS(%Growth)

2.6

15

PI

(%Growth)

11376(Rs52KCr)

(15)

PAT

(% Growth)

1607(Rs7KCr)

(21)


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6.9

13.8

11.7

8.8

0

200

400

600

800

1000

1200

1400

1600

2003 2004 2005 2006

0

2

4

6

8

10

12

14

16

Net revenueProfitability

TREND CHART-Dabur

RsCr


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13.23%

14.39%

12.52%

16.06%

11.95%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2002 2003 2004 2005 2006

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Net revenue Profitability%

TREND CHART-PepsiCo

$Mn


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9 8TROPICANA REAL

Objective(3) 3 2

Strategy(3) 3 2

Market share(4)

3 4


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JUICE Varietyseeking product

Low involvementHi involvement

Significant BrandDifference

Few Brand

Difference

Product Category


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19

%

81

%

Planned Unplanned

53%47%

Impulsive Non-Impulsve

BUYING PATTERN


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Consumption pattern2006

2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2006

Inhouse consumption Outside consumtion

Consumption Pattern


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0

5

1 0

1 5

2 0

2 5

3 0

M A X M I N

C o n s /

M n

lt s / m

n t h

Highly seasonal demand

Fruit production=9 Mn tonne

(growth=12%)

Total soft drinkmarket(juice+carbonated)=US$1Bn

Juice Market= 230 Mn Ltr

Packed juice=1%

Consumption is a group activity

60% prefer to see the juice they

buy

Facts about industry

Demand gap


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Geographical TROPICANA REAL

Location Metros/mini metros Metro/mini metro

DemographicAge Bachelor/newly

married/FN1/FN2Mothers/children 6-14/young executives

Income Hi spendable income/hi assetand saving Hi spendable income/hiasset and saving

Education/occupation

Educated/executive/working professionals

Educated housewives/executive/workingprofessionals

Social Class SEC-A/SEC-B SEC-A/SEC-B

SEGMENTATION


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Behavioral

Knowledge of theproduct

aware aware

Psycho graphic

Lifestyle Actualizers(statusoriented)/Experiencers/striver

s

Believers/strivers

Personality Self-confidence Sociability


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Energy balance=calories in

calories out Small, strategic and tuck in

acquisitions leading toorganic growth

Strategic alliance with

vendors/Agro-industries

Substitute for carbonated

beverages Entering the choice set by

increasing the productlength

Collaboration withhospitality industry/workplace

GROWTH OPPORTUNITYGROWTH OPPORTUNITY


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Variety seeking

Health seeking

R-Junior

T-Healthy kids

R-Active

T-Light n healthy

Real

T-fibreT- organic

Tropicana

Real

Product MappingProduct Mapping


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Price

Fruits flavours

Fruits+veg flavours

R

T

R

T

Price MappingPrice Mapping

Rs 3-4/lt


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Multiple Pack Sizes

For varied consumption

needs and occasions

Smart Sport SymbolFor identifying healthier

lifestyle products

Spin-Cap Tetra Pack

Retaining freshness &

preventing adulteration

Exotic Range of Flavors

For varied consumption

tastes and choice

ILORING STATEGIES TO SEGMEILORING STATEGIES TO SEGME


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7 9TROPICANA REAL

Segmentation(4) 2 3

Growth opportunity(3) 3 3

Tailoring needs(3) 2 3


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ROUND #2


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Fun for you productsto- wellnessproducts

Addresses safety

needs

Preservative freedrink

Various flavors nvariants

Real Active orange-carrot

CUSTOMERS NEEDCUSTOMERS NEED


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Portraying

youthfulness andfreshness

Communicatingbenefits of good

health

TVC uses lifestyle

imagery Communicationdirected at distinctaudiences

GETTING CLOSERGETTING CLOSER


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juicy battle

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