impulsive sellers
DESCRIPTION
TRANSCRIPT
Case: IMPULSIVE
SELLERS
Funsip- Dump or Dare???
What went wrong with initial launch of Funsip?
Faulty distribution system
Low penetration
Low levels of promotion-an impulse product to be chosen over other impulse product what is important is:
Visibility (packaging) e.g. Mirinda cans- very attractive
Extensive Promotion
Low on resources (financial, intellectual) at that time
Should Funsip be launched again? Why or why not?
Yes
R & D costs already invested (sunk cost)
Have resources (both financial and intellectual) now
Positive market signals (expected 200% growth in the food industry)
Only effort needed- Strong distribution network (his might act as a friction)
They know their mistakes (strong probability that they won’t repeat them)
Real life example- Mirinda was re-launched in India in 1996 after its first launch in 1991 (http://www.financialexpress.com/news/pepsico-to-relaunch-enhanced-
mirinda/44309/)
(Financial View: NPV must be considered)
Contd..
Caution-
Have to introduce new flavors/ products (fruit drinks, nectar and juices, coolers ) in the same segment (coke, Mirinda, sprite etc)
Get rid of fear of failure
Current Scenario
Fruit drink segment - estimated at Rs 250-300 crore (branded and packaged)
Juice market is valued at Rs 150 crore
Existing popular brands in India-
Parle's Frooti
Godrej's Jumpin
Coca Cola's Maaza
Pepsi's Tropicana
Dabur's Real
Nastle's Milo
Soya milk from ProSoya
Branded fruit juices - Surya Foods
Current Scenario (Contd..)
Too many competitors now!!
Establishing a new brand in this competitive environment is difficult
May not launch Funsip
Thank you
“To be a success in business, be daring, be first, be
different”- Marchant