Services Marketing Management

Product Launch Project Report on

FRUIT BAR Inc.Team Members

Ajaypal SinghGargi KapadiaChandan Bangera

-Mr. Rajeev Bal

As Good As a Fruit

Beverages Market in India

Alcoholic Drinks

Beer

Soft Drinks

Branded 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%

Nectors 10%

Fruit Drink 60%

Industrial Analysis

The Fruit Drink market has grown at a 20% to 25% rate. Of this, more expensive juices segment has grown at rate

of 40% this year. It accounted for only 15% of the fruit beverage 3 years back.

In–home consumption of juices has gone up from 30%, 3 years back to 80% today.

Mango based drinks account for two thirds of fruit drinks industry.

More than 80 % of sales happen through the unorganized route - juice centers, street corner shops and so on.

Market Analysis

Fruit Bar Inc.Produce Fruit Juice & Fruit Drinks.

Unique Position in terms of using Organic Fruits with different flavors, for utmost customer satisfaction.

An Environment-Friendly Company Dedicated to sustainable development and corporate social responsibility, as a service and preservation of nature.

Headquarter in Mumbai.

Satellite Branches in Major Metros.

“Fruit Bar takes its cue from Mother nature herself.” Simplicity, Purity and Balance are the three pillars

upon which our juice line is built. We make use of nature's own gifts by nourishing our

bodies with only locally sourced, organic fresh fruits. Using the purest produce we can lay our hands on and ensure that every Fruit Bar bottle that leaves our kitchens is a well thought out and encouraging prescription for health - from the inside out.

Mission

“We at Fruit Bar envision a bright and prosperous future.” Nature has provided us with the necessary elements and

we have the knowledge and experience to accomplish it. Our customers’ families are our top priority; providing

healthy beverages for the entire family to enjoy is our aim. Using the best that technology has to offer and the most

experienced staff we hope to continue on our journey to be the first choice in beverages.

Mother Earth gave us the tools and we will persevere in perfecting the juice-making process.

Vision

India currently produces about 50 million tones of fruits, which is about 9% of the world’s production of fruits.

Though India has a strong raw material base, it has been unable to tap the potential for processing and value addition in perishables like fruits and vegetables.

Only about 2 % 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 Product: Changing age profile- A relatively larger share of youngpopulation which has the ability to spend on processed foods. Increase in income- The middle and upper middle incomegroups growing at a faster rate than in developed countriesresulting in higher spending on food. Social changes- Increasing number of working women. Life style factors- Increasing health consciousness and needfor convenience fruit drink. Availability of Organized Retail outlets- These provide themuch needed forward linkages.

Demand for Our Product

Target Market

Primary Market

• Kids• Teens• Youth• Working People• Housewives• Elderly People

Secondary Market

• Movie Theaters / Malls• Amusement Parks• Schools / Colleges• Airlines / Railways• Hotels / Restaurants / Pubs• Sports Clubs

Market SegmentationGeographic

Fruit Bar will seek to serve both domestic and international customers.Metropolitan Cities, major cities/towns of the states.Density of Area: Urban, Semi-urban, Rural.Climate: Tropical

Demographic

Age – all age groupGender – Both Male and FemaleIncome – middle & hi-end consumerOccupation – student, working and retired peopleNationality/race – doesn’t matter

Psychographic

Lifestyle YesValue YesAttitude Yes

BehavioralBenefit soughtProduct usage rateBrand loyaltyProfitabilityIncome status

SWOT Analysis

STRENGTH1) Adequate Availability Of Raw Materials2) Price, a competitive advantage3) Natural Product4) Organic Healthy Fruits

WEAKNESS1) Seasonal Availability of Fruits2) Late Entry into the Market3) Dependence On Monsoon

OPPORTUNITY1) Participation with a growing Industry2) Competitive advantage over carbonated soft drinks3) Possible deal with Cricket Associations

THREATS1) Cut Throat Competition2) Unstable Government Policies3) Rising Global Warming

SWOT

The 4P’s

Product“Organic is a 100% fruit juice which will be produced and marketed by

the Fruit Bar Inc.”

Our product lie in Introduction Period of PLC:

Low sales High costs per customer Negative profits Innovator customers Few competitors

Objective: 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

Product Life Cycle

In the initial phase we would be outsourcing fruit processing and packaging of Fruit Juices under Fruit Bar brand.

Fruits such as Orange, Apple, Pineapple etc would be purchased from Kullu. Fruit Processing & Packaging would be outsourced to local producer.

Mango would be purchased from Hazira and Dahej. Fruit Processing & Packaging would be outsourced to local

producer. Mode of Transport: Road Transport

Place

• As a new comer our pricing strategy is to introduce our products in the market at lower prices so as to create huge demand in the market and then compete with other competitors.

• As we come up in the demand, we will increase our prices and will provide more efficient and affordable juices.

Pricing

Penetration Pricing: Our product will be lie on penetration strategywith high quality & low price. For introducing new product . Price low to capture market share. Expect to make profit in volume.

• As we are in the Introduction phase, our objective is to create brand awareness through Informative Advertising.

• Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample Distribution, Organizing Events, TV Commercial etc.

• Tie Up with major Cinema halls to promote our products during Intervals.

• In-film advertising, in its most effective form, is about a brand being a part of the cinema's content.

Promotion

• Every purchase points are awarded• Merchandise • The Big Banana Peel

Promotion

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.

•Creating a community on facebook.• Creating a Fan page on facebook.• This will enable the brand to keep its TA engaged and updated on theintroduction of new flavors and events.

•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.

3 Year Financial PlanningTarget of capturing 5% of the market share within a year and 30% by 2016-end.

Initially we would be outsourcing the processing of fruits, but after 3 years we would check the feasibility of starting our own processing plant.

R&D Department to be set up by early2015 early, in order to facilitate innovation in existing products.

We would open Satellite Branches in Major Cities to facilitate product training & improve on Market Share.

No. Particulars 1st Year 2nd Year 3rd YearA Installed Capacity (In Tonnes) 1070 1070 1070

Capacity Utilisation 75% 85% 85%

Sales Realisation(20% growth yoy) 115.00 138.00 165.60

B Cost of Production

Raw Materials 54.75 60.23 66.25

Packing Materials 4.25 4.68 5.14

Salaries 21.25 23.38 25.71

Stores and Spares 1.50 1.65 1.82

Selling and Distribution 8.5. 9.35 10.29

Administrative Expenses 5.00 5.50 6.05

Total 95.25 104.78 115.25

C Profit before Interest and Depreciation 19.75 33.23 50.35

Interest on Term Loan 3.32 3.32 3.32

Interest on Working Capital 0.28 0.28 0.28

Depreciation 2.23 2.23 2.23

Net Profit 13.92 27.40 44.52

Income-tax @ 20% 2.78 5.48 8.90

Profit After Tax 11.14 21.92 35.61

THANK YOU

As Good As a Fruit