COCOFRESH

Presented by-Babita Shahi (29015)

Ritu Choudhary (29028)Suruchi Singh (29034)

Taveshi Manohar (29036)

Flow of the presentation

• Why Cocofresh• Defining Industry• Industry Analysis• Porter’s 5 forces• PESTLE• Product positining map• Mobility barriers• Positioning map with two competitors• Value chain of Cocofresh• Competitive advantage

Why Coco Fresh…..• India is one of the leading producers of coconut in the

world (ranks third) producing 13 million tonnes per annum.• Coconut drink:

– Low in carbohydrates, sugar content– 99% fat free– Rehydrate the body and it is a natural isotonic beverage– It is a nutritious and refreshing health drink and hence a

better alternative to the existing Fruit drinks.• People are now more health and diet conscious.• Very few players are there in coconut water based health

drink manufacturing in India.

Defining Industry:• Conducted survey.• Sample taken: 100 Respondents.• “COCO Fresh” would be positioned as Health and refreshing

drink so fruit juice industry suits the best industry.

Survey result : Defining Industry

othersThirst quencherRefreshing drink

Health drinkno response

What do you consider coconut water?

100

80

60

40

20

0

Per

cen

t

INDUSTRY ANALYSIS

• The total beverage industry in India is estimated to grow at 17% this year.

• Market for carbonated soft drinks in India stood at Rs 7,200 crore in 2007 which plummeted by about 5% for the second consecutive year in 2007.

• With people turning more health conscious, the non-carbonated beverage segment has become one of the fastest growing and most exciting businesses at the moment.

• We would be operating in the fruit juice industry.• Main competitors: Fruit drinks and Fruit based Drinks mainly

Tropicana , Slice of Pepsico, Real of Dabur, Frooti of Parle and Maaza of Coca Cola.

• The demand for fruit juices in the fiscal year 2008-09 was Rs. 6.85 billion. It is expected to be Rs. 10.9 billion in the fiscal year 2014-15.

Market Share of Different Categories

Category Market Share

Fruit Beverages 66%

Fruit Nectar 7%

Fruit Juices 27%

Market Share of Different players

Real Tropicana Safal Others0%

10%

20%

30%

40%

50%

60% 57%

30%

4%

9%

PORTER’S FIVE FORCES

Rivalry among existing

competitors

PESTLE ANALYSIS

• Government RegulationsPOLITICAL

• Inflation• Money supply• Energy/fuel cost• Interest rate

ECONOMIC

•Increase in disposable income•Increasing health awareness•More sophisticated cocktail culture

SOCIO-CULTURAL

•Flash Pasteurization•CDB Technology

TECHNOLOGICAL

•Food and Drugs Act•Consumer Packaging and Labeling Act•Food safety laws

LEGAL

•Environment friendly packaging

ECOLOGICAL

PRODUCT POSITIONING MAP

High Price

High availability

Low Price

Low availability

1

SG 1

SG 2

SG 3 Cocofresh

Tropicana

Real

Slice

Maaza

Frooti

Cocofresh

Mobility Barriers

• Brand Name• Distribution Network• Scale of operations

POSITIONING MAP WITH 2 COMPETITORS

Frooti

Tropicana

Nutrient Value

Availability

COCO Fresh

Coconut Water

After COCO fresh

Value Chain: Coco Fresh

Value Chain

Analysis

Procurement

• From Sakhigopal and nearby areas in Orissa• Around 25000 nuts required per day in the

first year

• Proximity to raw material suppliers

• Proximity to Domestic customers and export site

• Cost• Infrastructure• Quality of Labour• Other Facilities

Location- Sakhigopal

MANUFACTURING

• Total capacity of plant : 30 lakh lts of processed coconut water per annum.

• Machineries used: – Coconut water collection tank– Filter– baby boiler– SS Jacketed fettle– autoclave– additive mixing tank– coconut water storage tank – volumetric filling machine.

Technology

• Hygienic & aseptic environment• Simple technology• Developed and promoted by Coconut Board of

India• 6-7 month old nuts are used

Filtered

through

pressure

filters

Desired

Additives + Sugar

Concentrate is autoclave

d

Cooled

Tetra

packs

MARKETING STRATEGIES: 5 C’s Analysis

COMPANY

CONTEXT

COMPETITORSCOLLABORATORS

CONSUMERS

MARKETING STRATEGIES: STP Analysis

Segmentation

• Broad market segment of SEC A and SEC B

Targeting • Health conscious

people, the youth who consider going natural as fashionable.

• Institutional buyers like airlines, railways, upmarket restaurants and hotels

Positioning

• As a health drink that is extremely nutritive and also highly refreshing.

MARKETING STRATEGIES: 4 P’s Analysis

PRODUCT

•Differentiated product.•Shelf life : 6 months.•Accreditation FPO and other quality control certifying agencies like HACCP.

PRICE

•Initially in tetra packs of 200 ml and 1 lt capacity priced at Rs. 15 and Rs. 85 respectively

PROMOTION

•Push strategy•Heavy Advertisement.

PLACE

•Pan India market coverage•Distribution channels and centres•Place our product mainly in modern retail format stores, hypermarkets

Chairman and Board of Directors

CEO

Marketing and sales (General manager)

Production (General Manager)

Administration (General Manager)

Procurement(Manager)

Manufacturing & Quality control (Manager)

Marketing (Manager)

Sales(Manager)

Finance (Manager)

HR (Manager)

Supervisor

Staff

Plant Executive

Supervisor

Staff

Quality Executive

Staff

Executive Executive Executive Executive

FINANCIAL ASPECTS

Land -1500000

Buildings -3500000

Plant & machinery -10000000

Contingencies -500000

Preliminary pre-operative expenses -800000

Working capital margin -4701562.5

total investment -21001562.5

Sources: CDB

Investment

Raw material 10,000 coconuts

Final Products 2000 lt

Yield

CAPITAL STRUCTURE

Equity 5250390.625

Term Loan 10500781.25

CDB’s credit link subsidy 5250390.625

Total 21001562.5

IRR: 27.316 %Break even Capacity : 37.44

Competitive Advantage

• Coco Fresh is the first “packaged coconut water” going to be launched at National level

• First Movers advantage• Differentiated product

THANK YOU

BACKUP SLIDES

ACTIVITIES TASKS

PROCUREMENT • Procurement of quality coconuts.• Maintaining good suppliers relation.• Warehouse management.

MANUFACTURING • Cost effective processing.• Standard and customized packaging.

QUALITY CONTROL • Regular quality check at procurement and processing.• Hygiene maintenance.

MARKETING AND SALES • Timely delivery of product.• Maintaining good relation with wholesalers.• Promotion.• Customer feedback.

FINANCE • Asset management.• Financial decisions.• Maintaining proper records.

HUMAN RESOURCE • Recruitment / Training.• Employee welfare.• Coordination between departments.

• . At present the coverage under coconut is 46690 ha with average annual production of 33 nuts per palm and total production of 2742 lakh nuts.

Demand for Fruit Juices in IndiaYear Rs (billions)

1995-96 1.62

2000-01 2.48

2001-02 3.55

2002-03 3.95

2003-04 4.35

2004-05 4.80

2005-06 5.30

2006-07 5.80

2007-08 6.30

2008-09 6.85

2009-10 7.40

2014-15 10.90

Product Qualities• sterile, nutritious, thirst

quenching health drink for all ages

• enormous therapeutic properties

• natural sugars, salts, and vitamins and is low in fat, calories and has no cholesterol

• highly rejuvenating tonic• the same level of electrolytic

balance as we see in our blood

pH     4.5

Total solids   4.71 g/100 ml

Sucrose 1.28 g/100ml

Total sugar  2.08 g/100ml

Ash 0.62 g/100ml

Sources of Availability of Plant and Machinery

•  S.P. Engg. Corporation, Easalganj, Kanpur,U.P.

      •  Ace pack Machines, Coimbatore

      •  Perfect Machine Traders, Kuruppam Road,

Trichur-680 001

      •  Equipment Agencies, Kallai Road, Calicut