mkt finale

SUBJECT NAMEMARKETING.

PRESENTED BY:KEYUR.P.DESAI

BBA FIRST YEAR HIGHER NATIONAL CERTIFICATE

RIMS INTERNATIONAL SCHOOL OF BUSINESS & TECHNOLOGY

PROJECT GUIDE: PROF. MRS PRIYA CHOWDHURY

December 16, 2010

Parle Agro’s

ASSIGNMENT GUIDELINES

1. This Assignment is designed to help you achieve a Merit or Distinction. 2. During your Structured Individual Study (SIS), you are required to answer each

question above (Outcomes Assessment Criteria) which has been covered separately in respective Lessons.

3. In your answer, write about the key concepts highlighted by the Lesson (underpinning knowledge).

4. You can get an idea of the key concepts by referring to the Lesson’s handout, in the Overview section of the Lesson.

5. Look for real-life examples to apply your key concepts (applied knowledge).6. Make use of the SIS time to research books.7. During your SIS time, use the computer to research recommended websites and

word process your Assignment.8. Follow the guidelines given in your Handbook.9. Study the Merit and Distinction Descriptors below to ensure that your work

demonstrates compliance in order for it to be considered for their respective Awards.

It is important that the work you produce is carefully planned & written.Your work should demonstrate (a) your understanding of the theory you have learned (underpinning knowledge) and (b) your ability to apply it to real life/contemporary situations/case study (applied knowledge).

Please follow the instructions below:1. Start each answer from a new page2. Highlight each question clearly3. Avoid bullet points and restrict the use of numberings; remember that you

are supposed to write an essay. 4. All work should be comprehensively referenced and all sources must be

acknowledged fully, this includes books & journals used as well websites visited. Details such as page numbers, publishers and publication year should also be stated, in addition to the name of the author(s) and publication. Books, articles and journals should be the main sources; net sources are allowed up to 25% max.

5. Follow Harvard referencing system.6. Ensure that your work is within the stated word limit.7. All work should be word-processed. 8. Pages should be numbered (bottom right hand corner)9. Assignment sheet should be attached in the front.10.Spell checks the document and read thoroughly for grammatical errors.11.1.5-line spacing is preferred but is not essential.12.Bibliography at the end of the assignment.

The correct format to answer each question (Task) is as follows:

1. Introduction (analyse the question – which theory is it trying to ask you to demonstrate?)

2. Underpinning Knowledge (write about the relevant theory/points)3. Applied Knowledge (apply the theory/points you have written about in your

underpinning knowledge to your case study/real life example)4. Conclusion (summaries what you have written in 2 & 3 above).

UNIT Unit 1 – Marketing Course HNCLECTURER Mrs. Priya

ChowdhuryVERIFIER Ms. Reena Clifton

RISBT, MUMBAI, INDIA KEYUR DESAI

HAND OUT DATE

15.10.’10 SUBMISSION DATE

29.11.’10

STUDENT TERM Dec’10Assignment cover Sheet

GRADE DESCRIPTORSPASS

DESCRIPTORS(FROM

Outcomes Assessment

Criteria)

Learner’s Evidence Shows Tutor to

Check

COMMENTS/FEEDBACK

1 Investigate the concept and process of marketing

compare alternative definitions of marketing

Identify the main characteristics of a marketing oriented organisation

explain the various elements of the marketing concept

2 Explore the concepts of segmentation, targeting and positioning

Identify and explain macro and micro environmental factors which influence marketing decisions

Outline the factors which influence the choice of targeting strategy

explain how buyer behaviour affects marketing activities in two different buying situations

3 Identify and analyse the individual elements of the extended marketing mix

describe how products are developed to sustain competitive advantage

Explain how distribution is arranged to provide customer convenience

explain how prices are set to reflect anorganisation’s objectives and market conditions

Illustrate how promotional activity is integrated to achieve marketing objectives

4 Apply the extended marketing mix to different marketingsegments and

recommend marketing mixes for two different segments in consumer markets


contexts explain the differences in marketing products andservices to organisations rather than consumers

explain how and why international marketing differsfrom domestic marketing

MERIT DESCRIPTORS

Learner’s Evidence Shows COMMENTS/FEEDBACK

1 Identify and apply strategies to find appropriate solution

- Relevant theories and techniques have been applied

- Effective judgments have been made

- Complex problems with more than one variable have been explored

- An effective approach to study and research has been used.

2 Select/ design and apply appropriate methods/techniques

- A range of sources of information used

- The selection methods and techniques/sources justified

- The design of methods/techniques justified

- Complex information/data have been synthesized and processed.

- Appropriate learning methods/techniques applied

3 Present and communicate appropriate findings

- Appropriate structure and approach has been used

- Logical and coherent arguments have been presented

- Technical language accurately used

- A range of methods of presentation has been used

- Appropriate media used

- Familiar and unfamiliar contexts have been used

- It is appropriate for familiar and unfamiliar audiences


DISTINCTION DESCRIPTORS

Learner’s Evidence Shows

COMMENTS/FEEDBACK

1 Use critical reflection to evaluate own work and justify valid conclusions

- Synthesis has been used to generate and justify valid conclusions

- The validity of results has been judged

- Self criticism of approach has taken place

- Evaluation has taken place using defined criteria

- Realistic improvements have been proposed against characteristics for success

2 Take responsibility for managing and organizing activities

- Autonomy/independence demonstrated

- Substantial activities/projects have been planned, managed and organized

- The unforeseen have been accommodated

- The importance of interdependence has been recognized

3 Demonstrate convergent, lateral and creative thinking

- Ideas generated and decisions taken

- Self evaluation has taken place

- Convergent and lateral thinking have been applied

- Problems have been solved

- Capacity for innovation and creative thought has been used

- Receptiveness to new ideas have been demonstrated

- Unfamiliar contexts have been applied

Any Other Comments

Grade Given by Tutor:

Tutor Signature:…………………Date:……….

Pass Merit

Distinction

IV Grading Check :

IV Signature:……………… Date:…………..

Agree Disagree MODIFY GRADE TO


Student’s Response:

Student Signature: Date:


School of Business Management

Marketing

Course BTEC Higher Nationals HNC Business Studies

UnitUnit 1: MarketingIndividual Assessment

Lecturer Ms. Ronak Khan Issue Date: 15.10.’10

Due Date: 29.11.’10

StudentName Student No.

Instructions

-You are required to produce an academic report of 3000 words (+/- 10%) covering all the questions given below.

-You are required to reference sources with Harvard Referencing Style.

-The college’s regulations concerning cheating, collusion and plagiarism apply to this assessment.

Assignment

In a growing number of organisations, marketing is now viewed as a source of competitive advantage; thus greatly contributes to the success of the organisation.

Choose an organisation that you are familiar with and answer the following questions:

1. Investigate the concept and process of marketing in your chosen organisation.

2. How does your chosen organisation pursue the Segmentation, Targeting and Positioning activities to serve customers’ needs?

3. Identify and analyse the individual elements of the extended marketing mix, applied in your chosen organisation.

4. Apply the extended marketing mix to different marketing segments and contexts (specially International Markets)

5. Provide any recommendations.


Table of Contents:-

I Executive Summary 9II Introduction about the company 10III Flagship product Frooti 11

Part 11 Investigate the concept and process of marketing in you chosen

organisation?12

Part 22 How does your chosen organisation pursue Segmentation, Targeting

and Positioning activities to serve customer’s needs?16

2.1 What is Segmentation? 182.2 Frooti’s Segmentation? 182.3 What is Targeting? 202.4 Frooti’s targeting strategies? 212.5 What is Positioning? 222.6 Parle Agro’s Frooti’s Positioning? 23

Part 3

3 Identify and analyze the individual elements marketing mix, applied in your chosen organisation?

30

Part 44 Apply the extended marketing mix to different marketing segments and

contexts (specially International Markets) 37

Part 5

5 Please provide Recommendations for Frooti? 40IV Conclusion 41V Bibliography 42


List of Diagrams and figures

1.1 The logo of Parle Agro 101.2 The original variant of Frooti 111.3 The different kinds of Frooti family. 111.4 Demonstrates the different kinds of variants of Frooti. 131.5 The chart of market orientated strategy. 142.1 The SWOT Analysis of Frooti. 162.2 The company’s macro environment of Frooti 172.3 The table of different ways of segmenting. 182.4 The Frooti’s dimensions of Segmentation. 192.5 The pie chart of Primary market elements of Frooti in B2C segment. 212.6 The pie chart of Secondary market elements of Frooti in B2B segment. 222.7 The Positioning of Frooti brand. 232.8 Demonstrate the diagram of value analysis. 242.9 Illustrate the overall model of consumer behaviour. 262.10 Explains the factors that affect the business buying behaviour. 262.11 The factor affecting the two different buying situations. 272.12 Demonstrates Ansoff’s Matrix of Frooti 282.13 The market mapping chart 293.1 Different types of marketing mix. 303.2 Frooti’s Product hierarchy. 313.3 Prove the pull strategy used by Frooti. 323.4 The different pricing strategies of Frooti. 333.5 The Distribution channel of Frooti. 344.1 The annual growth rate of Africa. 384.2 Shows the 7P’s of Frooti in Africa. 39


Executive Summary:-

Marketing is a best known word in business language. It is a dimension for every

business to achieve their goal. “Peter Drucker genero”: interactive marketing &

technology, 2007 wrote that, “because the purpose of business is to create

customer”, the business enterprise has two- and only two – basic functions:

marketing and innovation. Marketing and innovation produce results; all the rest

are cost. Marketing is the distinguishing, unique function of the business.

This report explains about Parle Agro’s Frooti, their strategies, how they do

their marketing orientation, marketing research, their market segmentation,

targeting and their positioning and how do they build their extended marketing

mix in the current country and internationally.

The outcome of this report will help the author to examine the role and practice of

marketing within the changing business environment with a concise and

contemporary overview of marketing and the skills to underpin further study in

the specialist field of marketing.


INTRODUCTION ABOUT THE COMPANY.

Parle Agro Pvt, Ltd. Manufactures, distributes, sells and exports fruit

drinks in India and internationally. It offers fruit and milk drinks, packaged water,

apple and mango drinks in polyethylene terephthalate (PET) bottles and

containers and tetra packs. The Parle Agro, a large food and beverage

organisation based in Mumbai, consistently aims at evolving and sustaining an

iconic profile for beverage packaged water and confectionery products.

Diagram 1.1 The Logo of Parle Agro (www.frootifoundation.com).

Parle Agro Private Ltd is looking at product expansion in its various business

segments to sustain growth in a sluggish market. In the fruit drink segment where

Parle Agro has hugely popular product ‘Mango Frooti’, it is planning to get into

orange and pineapple under the same brand of Frooti.

At the same time, it has also embarked on stretching the franchise of its existing

brands- Frooti, Appy and Bailey Mineral water. It knows the market and has

sustained its brand in spite of the huge unorganized segment. At the moment, its

only advantage is its distribution strength.


The Flagship product Frooti

The ‘fresh n juicy’ Frooti brand, is dominating the packaged fruit based drinks

category since its launch in 1985. Frooti Mango, which has 75% market share in

tetra packs, grew by a modest 4% in 2001 according to ORG- Marg data. Larger

pack (1Liter) and more pure juices (such as orange and pineapple) would soon

appear under the Frooti brand, taking on the existing competitors in these

flavours and sizes – brands such as Tropicana, Real and Onjus

Figure 1.2 The Original Variant of Frooti. (www.kraftinteractive.net)

Frooti has always been positioned as a drink for kids but now the company has

position it as a drink for the youth, especially, the college going teenagers. Parle

Agro’s has an enormous distribution reach of 10 lakhs outlets, including leading

hotels and restaurant, eateries, super- markets and paan shops. Meanwhile,

Parle Agro is planning to tap the rural market. With its strongest brand Frooti.

There are plans to set up a separate distribution in the product itself. It is learnt

that the company is also set to launch some “niche” products.

Figure 1.3 The Different Kinds of Frooti family. (www.clickindia.com)


1. Investigate the concept and process of marketing in you chosen

organisation?

Marketing in itself is a complex exercise which works with and against a

number of forces. Successful marketing strategies create a desire for a product.

There are set of different definitions of marketing which the organisation seems

to take into consideration while approaching the markets.

Parle seems to insist on combining business with innovation. “Peter Drucker

genero: interactive marketing & technology, 2007 wrote that, “because the

purpose of business is to create customer, the business enterprise has two- and

only two – basic functions: marketing and innovation. Marketing and innovation

produce results; all the rest are cost. Marketing is the distinguishing, unique

function of the business.

Philip Kotler defines marketing as, “satisfying needs and wants through an

exchange process.” (Sources from definition of marketing: marketing definition

and marketing concept, from http://www.learnmarketing.net/marketing.htm). Here

Kotler is trying to say that within this exchange transaction customers will only

exchange what they value (money) if they feel that their needs are being

satisfied; clearly the greater the benefit provided the higher transactional value

an organisation can charge.

Marketing action at Parle management captures the essence of the marketing

concept in being responsive to customer and their needs but it cannot be happen

unless knowledge about customer will be enough to meet their expectancies.

Marketing at Parle seems to concentrates on marketing mix, which are product,

price, place and promotion. Marketing management consists of five tasks. It

starts from identifying target markets – the management need to identify those

customers that they want to make exchange with. Then there is reliance on

marketing research – management has to collect information on current and

potential customers needs.


From here starts the Product development – the company need to develop the

product that will meet customers’ needs and expectations. “The decisions

regarding marketing mix – management have to determine price, promotion and

distribution for the product. Final step is monitoring – build relationship with

customers and collect information about changing customers’ needs and

expectations” (marketing management and strategy, Prentice Hall). Doyle P.,

Stern P., (2006)

Figure 1.4 Demonstrates The Different Kinds of Variants of Frooti. (www.adleanwar.com)

As Baker said, marketers have experimented with different combination of

product, pricing, promotion and distribution. Parle has moved beyond the

traditional 4Ps of marketing. In 1950s E. Jerome McCarthy developed the “four

Ps”, which has become the most enduring framework of the marketing mix. He

grouped 12 Borden’s elements into price, product, promotion and placement

(also known as place for distribution). Leadley P., Forsyth P., (2004), marketing:

Essential principles, New Realities.

Parle Agro has seen a trend towards fruit- based products. Also the most

important strategy that Frooti adopts is a market orientated approach which

has helped them survive in competitive environment for a very long time.


A marketing orientated approach means a business reacts to what customers

want. The decisions taken are based around information about customers’ needs

and wants, rather than what the business thinks is right for the customer.

Whereas product orientated approach means the business develops products

based on what it is good at making or doing, rather than what a customer wants.

This approach is usually criticized because it often leads to unsuccessful

products - particularly in well-established markets. Definition of market orientated

approach (2008) [online] (updated on 10th November 2008)

(http://tutor2u.net/business/gcse/marketing_orientation.htm) [Accessed on 8th

November 2010]

Figure 1.5 The Chart of Market Orientated Strategy. (Field research)

Critical Analysis:-

Parle Agro Pvt ltd has emerged as successful market orientated company over

the years and it has helped them to bring no. 1 fruit based product (Frooti)

(source available at: www.parleagro.com [online] (copyright 2009-2010)

(Accessed on 8th December 2010) in the choices of consumer minds (preferred

by the consumer). They should start manufacturing Tetra packs within their

manufacturing base rather outsourcing them to other suppliers or like when

deciding upon a new


product innovation (like Frooti with pineapple flavour). The reason being that,

firstly there will be cost reduction for the firm because as Parle Agro’s Frooti

going to make the Tetra packs within their manufacturing base, then cost paying

to the suppliers will deducted and it will lead to better financial position of the

business.

The other reason of manufacturing tetra packs within their manufacturing base is

because quality check will be done within the organisation rather than sending an

employee to the supplier’s place for the quality check, which thus also leads to

less time consuming of checking the quality of the product. As Parle Agro’s Frooti

has shifted to JIT technique of production it will be better for the Parle Agro’s

Frooti to “reorder the stock” of tetra packs, if they setup the manufacturing

process of Tetra packaging within their base, which will lead to better “Delivery

time of the product.”


2. How does your chosen organisation pursue Segmentation, Targeting

and Positioning activities to serve customer’s needs?

The market environment is a marketing term and refers to all of the

forces outside of marketing that affect marketing management’s ability to build

and maintain successful relationships with target customers. The market

environment consists of both the macroenvironment and the

microenvironment.

Marketing environment are the factors and forces outside marketing that

affect marketing management’s ability to develop and maintain successful

relationship with its target customers. Taking into consideration the micro

environment it is the company’s internal environment factors which influences

marketing decision of the company. They are as follow: - Suppliers, market

intermediaries, customers and competitors.

STRENGTH WEAKNESS OPPORUNITIES THREATS

1) The product along with its tetra packaging gives the juice nutritious dimension as well as caters to the climatic variations across the logistic network across the country.

2) It is its packaging (tetra packs) which has given Frooti an edge over the competitors products.

1) Market Competitive and local variants in the market.

2) Non uniform price structure across the country.

3) The demand for local raw material is subject to fluctuate which in turn leads to variations of quality input.

1) Can enter a market with different flavours under the same brand name.

2) Can enter a global market with a good reputation.

3) Have the opportunity to collaborate with foreign brands in order to obtain a larger customer share.

1) Competitor’s products are widely available across the country.

2) Marketing and advertising cost is also rising which making difficult for Frooti to get eye catching consumers.

3) Competition with MNC is causing Frooti not be a brand leader.

Figure 2.1 The SWOT Analysis of Frooti. (Field research)


The macro environment is totally in contrast with micro environment, they are

the company external factors which influence the marketing decision of the

company. Here is an example given in the diagram which tells us that which is

the external factors and the internal factors which influences the decision making

of the Parle Agro’s Frooti.

Figure 2.2 The Company’s Macro Environment of Frooti (Field research)


unforseen circumstances occur like no rain during mango season or else early spells of thunder showers ruining the crops and as well the fields.

various kinds of machinery been produced in the market for faster production therefore Frooti may face the problem of upgradtion as well as staying competent.

if the production of mangoes goes deficit, then the prices of mango increase which in turn leads to Frooti paying more high cost in purchasing mangoes

The age group which is affecting Frooti at present is 4-12 years i.e. children due to the change in the fashion trends. which is making them to opt for competitors products.

Demographic Economic

Natural ForcesTechnologic

al

2.1 What is Segmentation?

A market segment is when a market is divided into sub-groups of potential

or actual customers who share similar needs/wants, characteristics, or buying

behaviour. These sub-groups are not divided by the supplier/ marketer, instead

they already exist. They just need to be recognized and differentiated.

When such groups are identified by suppliers and are marketed by different

products and services, it is known as market segmentation. There are many

bases on which a market could be segmented. Such as:

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Behavioural segmentation

While providing the customers with a service, it is important that the customers are at present or around the delivery point in order to receive the service.

While segmenting a market demographically, on the bases of Age, Gender, Family size, Occupation, Education, Religion, Income, Social class.

On the basis of the lifestyle, personality characteristics and social class factors taking into consideration.

It is based on the usage rate and loyalty of the customers

Figure 2.3 The Table of Different Ways of Segmenting. (Field research)

2.2 Frooti’s Segmentation?

There has been no general acceptance of the product forms in fruit

beverage market. The consumer is basically concerned if it is a fruit juice or

synthetically constituted product. Product segmentation, therefore, should be

clearly delimited. The entire segmentation exercise for Frooti product is indeed

driven by these variables.

Under the fruit drink the first segmentation is between real fruit and synthetic

drinks. The real fruit drinks are based on natural fruit pulp or juice whereas the

synthetic drinks are synthetic products with fruit or other flavours.


FROOTI'S Dimensions of Segmentation

Real versus synthetic fruit DrinksTaste and Fruit Pulp PreferencesBenefits extendedPsychographicsDemographicsPlace and situation of use

40% of Real vs Syn-thetic

20% of Taste & Fruit pulp

14% of Benefits Exten-ded

8% of Pscho-graphic

9% of place and Situation of use

Figure 2.4 The Frooti’s Dimensions of Segmentation. (Field research)

A broad taste preference seems to be another way to define market. The market

is at present also segmented on the basis of fruit pulp content. For the purpose of

segmentation, on the basis of fruit pulp content, market can be segmented as

comprising Fruit juice with pulp content more than 80%. Another segment can

Fruit nectar with pulp content between 40% to *0%. Third section comprises

fruit drinks with pulp content less than 40%.Segmentation at Parle seems to be

influenced by benefits provided to the consumer. One benefit could be the

nutrition content it gives to the consumer so one market could be the health-

conscious segment. Second benefit is thirst quenching, so the other segment

could be those buying the drink or nectar for satisfying the thirst.

Another very broad segmentation is based on the type of situation in which the

drink or nectar is used. People who are on the move i.e. outdoor use e.g. those

travelling.


9% of demographic

People who are using it on the breakfast table as a part of their menu i.e. in

house use.

Demographic is another way to segment the existing and future markets for

Frooti. The brand’s consumer section is broadly divided into two segments –

primary segment, consisting of children in the age group of 4-12 years and

secondary segment, consisting of all adults who love fruit based non

carbonated drinks.

Psychographic division might have also been considered. The youth segment

was targeted with sub- segment – Pre-teens (9-12), Teenagers (12-15), above

teenagers (16-19). These are new impulse category.

2.3 What is Targeting?

When a firm finishes segmenting a market, they get many opportunities

from which the firm has to decide which segments it can serve the best and are

the most profitable. Thus, market targeting is when the firm decides to choose a

set of buyers who demand for a similar product.

Once the market has been segmented and well identified, Parle Agro Frooti’s

brand should check if they will be beneficial to serve the selected segment or not.

The DAMP methods (discernible, accessible, measurable, and profitable) are

used to benchmark the capability of the target market. (Strategic management

book second edition by Alex Miller and Gregory G. Dess)

- Discernible – how to differentiate the selected segment from other

segments.

- Accessible – how can a segment be accessed through market

communication.

- Measurable – will the segment be quantified and the size of the segment

determined.

- Profitable – will the serving of that segment be profitable.


2.4 Frooti’s targeting strategies?

Target market for Frooti constitutes the Recreational purpose, fitness; Health;

Lifestyle and Sports.

The Primary market comprise the kids – Fond of fruit juice; Teens – more

experimental; youth- experimental and more buying power; Working people;

Housewives; and the elderly people.

Whereas the secondary market revolves around Travel industry- Airlines,

Railways and local transport systems; Recreational places like- Movie theatre,

Malls etc.

Below are the two Pie chart diagrams both of Primary market and as well as the

secondary market respectively, which will helps us draw a proper conclusion on

how Parle Agro Pvt ltd’s Frooti brand does.

Figure 2.5 The Pie Chart of Primary Market Elements of Frooti in B2C segment. (Field research)


Primary Market Elements of Frooti

Kids - 1-10

Teens - 10-16

Youth - 18-25

Elderly - 40 & above

45%

32%

19%

4%

35%

22%

23%

20%

Figure 2.6 The Pie Chart of Secondary Market Elements of Frooti in B2B segment. (Field research)

2.5 What is Positioning?

Kotler (2008) says the way a product is defined by consumers on

important attributes – the place the product occupies in consumers’ minds

relative to competing products is known as the product’s positioning.

In marketing, Positioning has come to mean the process by which marketers try

to create an image or in the minds of their target market for its product, brand or

organisation.

“Products are created in the factory, but brands are created in the mind”. This is

said by a positioning expert.

The statements mentioned above explains that while positioning your product,

Parle Agro’s Frooti brand must focus on the way the customers are likely to think

about the product.

2.6 Parle Agro’s Frooti’s Positioning?


Secondary Market Elements of Frooti

TravelTransport JunctionsRecreationBusiness places

Frooti’s positioning relates to how its service is positioned in its

consumers’ minds. So therefore Frooti Ads are no longer just to create buzz, they

are created keeping in mind a long term brand vision.

Al Ries and Jack Trout consistently observe that Positioning is what you do the

mind of the consumer. (Positioning: the battle for your mind New York:

McGraw- Hill, 1981). As such positioning exercise intends to create awareness

regarding what does Frooti as mango drink, mean to the consumer and how is it

different from that of competitors. It seeks to strengthen own current position and

grab an unoccupied position between fruit juice and their hygienic availability.

Packaging – Frooti in tetra pack, which retains the freshness and nutritious value

intact.

Figure 2.7 The Positioning of Frooti brand. (Field research)

The other way Parle Agro’s Frooti’s brand can position their product is by the

value analysis.


Creating the Positioning Push of Frooti in B2C

Multi Channel AdvertisingDifferentiation ElementsUse of Product LaddersLocal Solutions

40%

35%

20%

5%

There are 3 factors which needs to be considered in preparing value analysis by

Parle Agro’s Frooti brand they are as follows:-

1. Appearance (aesthetics).

2. Performance (function).

3. Economy of manufacture.

Appearance (aesthetics)

Performance (function) Economy manufacture

Figure 2.8 Demonstrate the Diagram of Value Analysis. (By Peter Stimpson)

The appearance aspect is very important for Frooti as they are into the

manufacturing industry and because of “the first impression is the last

impression” it becomes vital for them to have a luxurious appearance of their

Products in order to create a lavish impact.

Along with the Appearance, the economy of manufacture is important to Frooti as

brand because it will help to them to know the taste of the product, raw material

(Component) are good or not because if it’s improper than it will affect the brand

of the product.

“Philip Kotler (1965) in a book of marketing insights states that Consumer

behaviour refers to the mental emotional process and the observable behaviour


of consumers during search, purchasing and post consumption of a product or

services.” This means that the consumer behaviour studies include how people

buy, what they buy, when they buy, why they buy and what is their reaction after

the product is being purchased. It also takes into the account the essential

elements like psychology, sociology, anthropology and economics.

The factors that affect the consumer buying behaviour are as follows.

1. Geographic factors (These Geographic factors might include different

regions of the country) Parle Agro needs to keep in mind the different

types of consumers taste and fashion, so therefore needs to keep a

track of different types of taste and the purchasing habit in the different

states of the country.

2. Demographic factors (These factors include Age, Gender, Family size,

Religion, Income, social class). This one of the factors that majorly affects

Parle Agro’s Frooti because firstly there is a change in the consumer

buying habit i.e. taste, fashion and the disposable income of the person

which is making consumers opt for the another product. Therefore in order

overcome the problem as stated above Parle Agro should continuously be

in touch with customers so that they can keep a track on the trends in the

market. Also the other reason which is affecting is that, in some state of the

country like Madhya Pradesh, Jammu & Kashmir etc has seen a trend in

an Ageing Population of above 60% which affecting Frooti therefore

Frooti should come out with newer variants so that it suits that can

kind of Population like Health conscious products, sugar free content

for diabetic patients, multi grain flavour and even vitamin flavour

which will suit the older people.


Figure 2.9 Illustrate The Overall Model of Consumer Behaviour.

Business buying behaviour is the decision-making process by which formal

organizations establish the need for purchased products and services and

identify, evaluate, and choose among alternative brands and suppliers.

Organizations could be corporate, manufacturing firms, Service firms,

Institutional & Government markets.

Figure 2.10 Explain The Factors That Affect Business Buying Behaviour.

The factors which affect business buying behaviour are as follows:-


Overall Model of Consumer Behaviour

Self-Concept&

Learning

Decision Processes

External Influences

Internal Influences

Culture

Subculture

DemographicsSocial statusReference groups

Family

Marketing Activities

Perception

LearningMemory

Motives

Personality

Emotions

Attitudes

Problem RecognitionInformation SearchAlt Eval & SelectionOutlet select & PurchasePostpurchase Processes

ENVIRONMENTALLevel of demand Economic outlookInterest rateRate of technological changePolitical and regulatory developmentscompetitive developmentsSocial responsibility concerns

ORGANIZATIONAL

Objectives

Policies

Procedures

Organizational Structures

Systems

INTERPERSONAL

Interest

Authority

Status

Empathy

Persuasiveness

INDIVIDUAL

AgeIncome Education Job positionPersonalityRisk attitudesCulture

BUSINESSBUYER

1) Interest rates: - This is one of the factors which have affect Parle Agro’s

Frooti over the years. The reason why interest rate is affecting is because it is

making difficult for Parle Agro to buy their raw materials from their suppliers.

2) Competitive developments: - Competitors in fruit juiced segment has

emerged successful in competing with other existing brands. Like for example

the main competitor of Frooti are Real juice and Tropicana which have kept

Frooti on it toes for a quiet a few years. Therefore in order to eliminate or to be in

the line with a competitor Frooti needs to constantly review their marketing

strategies and comes with newer variants or increase their market share so that

Frooti remains competitive with other competitors. The other factors that affect

the overall consumer and business buying behaviour are as follows:-

Factor Consumer buying behaviour Business buying behaviour

Demand Direct demand from consumer, for Frooti

Derived or a joint demand

Customer Buyer and user are same i.e. target consumer for Frooti like teenagers, youth and kids.

Not the same as the target consumer for example here the consumers for Frooti will be other major Fruit juices industries.

Specifications General, as in what the Frooti manufactures for the consumers.

Customer specifications i.e. as per the requirements of other major fruit juices industries.

Services support Only for consumer durables goods for my product Frooti.

Critical and included in buying specifications

Customer characteristic Mainly based on image of the retailer stocks up the product (Frooti).

Based more on the performances of the product (Frooti).

Quantity purchased Low High

Demand Elastic Inelastic

Pricing Consumer are often price sensitive so low prices

Competitive bidding takes place

Intermediaries Long with middle men Short and direct

Figure 2.11The Factors Affecting the Two Different Buying Situations


Critical Analysis: - Parle Agro’s Frooti has reached its objectives of STP in

urban areas of the country; as a result the STP of Frooti has been stagnated for

past few years. However according to the author, Frooti should revise their STP

and tap a totally different segment that is Rural Areas and bring some innovation

in the approach of marketing by adopting Ansoff’s matrix for their market

development strategy where they will come to know potential growth

strategies. Keeping in mind, that people in rural area are very sensitive in

tasting; pricing the product so therefore Frooti should have a proper market

research report in place, to know what demand for their product is.

Figure 2.12 Demonstrates Ansoff’s Matrix of Frooti

Parle Agro should revise their segmentation, targeting, and positioning in order to

be the market leader they need to tap this market.

For example their segmentation in the rural areas (developing cities or areas

in the country) might be geographic segmentation because this will make

consumers aware that Frooti as a product is existing in the market. And for this to


Newer variants for ageing population like Sugar free juice

The original variant i.e. Frooti with bit of new innovation like different flavours.

Tapping the rural market as a new segment.

Amalgamation in B2B sector

be done Parle Agro’s Frooti should be present at the delivery point where

customers frequently visit.

Whereas their Targeting strategies might be mostly, targeting health

conscious segment as well as the primary market which consists of

underprivileged students and the working people (farmers). However they

should try to do innovative styles of packaging which will catch the eyes of the

consumers with promotional schemes like “Buy 1 gets 1 free” etc. Therefore

Parle Agro should keep in mind that, as first impression is the last impression

they should try to fulfil all the needs and wants which are demanded by the

consumers.

Figure 2.13 The Market Mapping Chart.

Then comes the positioning factor for Parle Agro’s Frooti where in rural areas it

should be position on the basis Appearance, Performance, Economy of

Manufacture. Therefore Parle Agro should position their product in such a way

that whenever consumers demand for a fruit drink, then preference of choice

should Frooti rather than the competitor’s products like Real juice, Onjus etc.

The other way positioning the Frooti in Rural areas is by adopting product

positioning chart where it describes how new brands will relate to the other


Low Price

Healthy image

Standard image

Frooti

Real JuiceAppy Fizz

Onjus

High Price

competing brands, for which Parle Agro’s Frooti should adopt market

mapping chart.

3. Identify and analyze the individual elements marketing mix, applied in

your chosen organisation?

The extended marketing mix includes seven main factors to take into

consideration in order to satisfy the customers’ needs profitably. These factors

are:

Figure 3.1 Different Types of Marketing Mix.

The Frooti’s extended marketing mix strategy:-

Product:-

Kotler , the marketing guru clearly observes that in order to be market leader,

watch the product life cycle; but more important, watch the market life cycle.

Kotler (2004) suggested that a product should be viewed in three levels:


Product

Price

Promotion

PlacePeople

Physical evidence

Process

Level 1: Core Product. What is the core benefit your product offers? Customers

who purchase a Frooti tetra pack are indeed purchasing more than just that.

They are buying “health”.

Level 2 Actual Product: it promise health drink and as well thirst quenching

product for the customers. The aim is to ensure that adding features and benefits

to ensure that their product offers a differential advantage from their competitors.

Level 3: Augmented product: What additional non-tangible benefits can you

offer? Competition at this level is based around after sales experience, delivery

and so on.

Figure 3.2 Frooti’s Product Hierarchy. (Field research)

Package:-

Parle treats packaging as an element of product strategy. The obvious

advantage in case of Frooti as product offering is it’s tetra packaging which

retains and sustains the freshness and nutrition of the contents .Rising consumer

affluence means that consumers are willing to pay a little more for the


Augmented Product

Delivery and credit to Wholesalers and retailers in stocking their product. Or else Frooti should come out with soft toys for small kids like batman, Barbie when purchasing Frooti etc.

They can provide refrigerator to wholesaler and retailers to stock their product in line Pepsi and other competing brands.

Actual ProductTetra Packaging Brand name “Frooti”

Design – PET bottles and different kind’s tetra packaging like triangles

Core Product – Frooti is a healthy product.Nutrition – Fruit mango and pulp of

FrootiPromotion &

Marketing strategies Consumer

convenience, appearance, dependability, and prestige of better packages(7Ps-

extended marketing mix, retrieved march 6th from http://www.12manage.com)

Frooti since its commercial launch continues to reap the advantages of tetra

packaging for preserving the nutrition .The mass packaging is supported by PET

packaging.

Promotion mix:-

Modern marketing of Frooti is more than just developing a good health product,

pricing it attractively, and making it available to target customers is equally

significant. Parle agro consistently communicates with its customers. Parle uses

a specific mix of advertising, personal selling, sales promotion, and public

relations a company uses to pursue its advertising and marketing objective.

Therefore it will help them to obtain higher market share as well it will them to

enter a totally different market with different customers and also it will them

create brand image worldwide which are its marketing objective.

Communication tools

Advertising

Advertising has so permeated everyday life that individuals can expect to be

exposed to more than 1,200 different messages each day (Advertising:

Definition, 2007).

Frooti is extensively using above the line promotion like TV, Magazines, Internet

etc for which Frooti has gain a larger customer base and as well as remind the

existing customer to repurchase the product. Frooti are using pull strategy for

which their consumers are willing to buy their product.


Figure 3.3 Prove the Pull Strategy Used By Frooti. (www.marcleshay.com)

Price:-

The Frooti has taken these factors into consideration when deciding a price.

These are as follows: cost of production, competitive conditions in the market,

competitors’ prices, business and marketing objectives, price elasticity of

demand and last whether it is a new or an existing product. Therefore in India,

Frooti has developed different pricing strategies for different regions over

the years, for instances like in metro cities Frooti has develop a penetration

and competitive pricing for which they have survived for so long and in

rural areas they have set price value base pricing. This is show that Frooti are

keeping in mind that as they want to attract a larger customer base they are

using different pricing strategies for different level of income groups that is

according to the standard of living of the people in each region.

For example if we take into consideration metro cities like Mumbai for 1 litre PET

bottle they charge Rs 28 and for the same 1 litre PET bottle in rural areas they

charge Rs 15 which clearly shows they are using different pricing strategies for

different regions.


Maharashtra Karnataka Delhi West Bengal0

5

10

15

20

25

30

Pricing in the Urban Areas of the state

Pricing in the Rural Areas of the state

AD Campaign

PULL STRATEGY OF FROOTI USED IN THEIR PROMOTION.

Demand

Company’s Manufacturing Facilities

Franchises Stockiest Agent

Retailer

End User

Distributor

Figure 3.4 The Different Pricing Strategies of Frooti. (Field Research)

Place:-

Thus the most vital part of marketing mix strategy the Place because after

making all the product, then promotion and pricing the final needs to be

distributed to end user that is consumer. Currently Frooti places their product in

the typical college going crowd hung out at canteens, Bus Stops, Railway

platform, Restaurants and movie theatre. Below is the Distribution chart of Frooti.

Figure 3.5 The Distribution Channel of Frooti.

People:

This mainly includes the staffs that are employed by Frooti and their training in

order to provide a healthy product for the customers. For example, Frooti’s

employees must be well trained, in order to produce a product of Frooti and also

the wholesalers and retailers should know what are the ingredients are there and

required languages and presentable in order to easily communicate with the

customers that arrive. Parle Agro’s Frooti should also consider motivating the


staff to ensure that they provide non Zero defected products to the customers in

order to keep the customers in touch with product.

Physical evidence:

Physical evidence is basically the way Frooti presents its products to the

customers. For Frooti, it is very important to have a high – end and luxurious

impact on its customers and thus they have reached, every hotel, railway, bus

stops, malls and small retail outlets and last the most important college canteens

where their target are easily available of Frooti is equipped with the latest

products and flavours shows that physical evidence of extended marketing mix is

achieved.

Process of service delivery:

These are the procedures and mechanisms and the flow of activities through

which the customers of Frooti consume its services. The flow of activities for

Frooti could be:

- checking of raw materials

- Sufficient materials in making of the product.

- making of the product

- Distribution of the Frooti product through various regions, area etc (wholesaler

and retailer)

- serving the end user with best packaging and as well as a nutritious product.


Critical Analysis: - According to the author, out of the 7P’s Parle Agro’s Frooti

needs to work upon the People as its one of the 7P’s because the employees

are not well trained enough to produce non Zero defected product, as well as

the communications skills are also weak so therefore have the difficulty in

communicating with its (Sales Forces like) customers, retailers, wholesalers.

Therefore in order to overcome the problem stated above Parle Agro’s Frooti

needs to train its staff at such a level where there are no defected products (juice

content) being produced as well as no communications problems are faced by

Parle Agro’s Frooti with its suppliers and as well its potential consumers when

buying the product.

Whereas at the other end they have exceedingly done well in their other P’s like

packaging because they (Parle Agro’s Frooti) were the first ones to introduce

Tetra packaging technique as well as PET bottles in place, which has caught the

consumer’s perception, “that whenever they wish to have any Fruit juices drink

then first thing that comes into mind is Frooti because of it is easy accessible to

carry for the consumers”.

It is packaging that has helped Frooti to survive in this competitive market and

has emerged as No.1 fruit drink product.

Even their Pricing Strategies has helped them to reach their marketing objective.

Using different pricing strategies, “that is Competitive and value based pricing”

for Urban and Rural areas respectively.

But according to the author Frooti should adopt Geographical base pricing

because as they have reached the most distant place of the metropolitan cities

they should charge higher price to distant customers to cover shipping cost or

lower prices to win the additional business for the company.


Q.4) Apply the extended marketing mix to different marketing segments

and contexts (especially international markets)?

The on-going worldwide globalization, liberalization of trade, innovation in

logistics and transportation, as well as advances in communication and

information technologies continue to erode the barrier of geographical distance

between B2B companies in different countries. This implies that B2B companies

should always pursue global branding in their market offerings. Adapting or

standardizing the distribution channels depends on several factors which are the

customer, the culture and the product. “James C. Anderson and James A. Narus,

(2006) Business Market Management: Understanding, Creating, and Delivering

Value, pp. 15 and 213.” The Frooti as a product has reached globally too many

Continents like Asia, America, Asia oceanic etc. Frooti has specifically targeted

Africa as their global market because statistically proven in “Mckinsey Global

Institute (2009) Sizing Africa’s business opportunities [online] (updated on 25 th

July 2010) available at: http//www.mckinseyquartely.com [Accessed 24 October

2010].

The reason Parle Agro’s Frooti choose Africa as their extended marketing

because they have the large opportunities in consumer sectors. Secondly the

Africa’s growth acceleration resulted from more than a resources boom. Arguably

more important were government actions to end political conflicts, improve

macroeconomic conditions and create better business climates, which enabled

growth to accelerate broadly across countries and sectors.

The recent survey conducted by Mckinsey global institute shows the Africa’s

growth was widespread across different sectors.


Resources

wholesale and retail

agriculture

telecommunications

Manufacturing

Financial intermediation

Tourism

Real estate

0 1 2 3 4 5 6 7 8 9

compound annual growth rate

compound annual growth rate

Figure 4.1 The Compound Annual Growth Rate of Africa.

Rather than services Parle Agro’s Frooti provides high quality product to their

customers. Frooti has wide range of product portfolio to attract various segment

groups of consumers. For last 25 years Frooti as a product has created a name

for itself and a market various products. The foundation for expansion was

focusing on total health and nutrition content and develops a product which is

based on customer perception.

Price was the key factor that helped Frooti for its success of their affordable price

for customers in Africa because their special offers like giving 25% extra content

in their PET bottles and giving 1 per 1 free to its customers.

The way of Frooti’s promotional strategy they have build a wonder world in

customer mind. Their approach to commercial establishments like offices,

factories, and other small enterprise has gained a lot of consumer interest in

Africa consumer and business sector segment. The giving vouchers to other

commercial establishment are another promotional way for travellers. And also

their online webpage is more attractive an effective way of advertising. Frooti way

of reaching out to the customers and introducing new products to the customers

is an effective one. From holiday makers to business people in Africa (broachers,

website or leaflet), the products Frooti provide are clearly mentioned and

categorized in an attractive way.


Figure 4.2 The 7P’s of Frooti in Africa.

Critical Analysis:-

One of the major changes which Parle Agro has done in its marketing mix

strategies (Internationally) in Africa (Congo) market is it product as well as

price and promotion. They have largely emphasised on this 3 P’s is because

firstly in Congo the people there are very sensitive in trying new products so

therefore Parle Agro’s Frooti has maintained its Nutrition Value content in Tetra

packaging (the reason being that Africa (Congo) market is one of the developing

market and there no such fruit based products available in the Congo market)

with utmost attractive design and shapes which has caught the eyes of the

consumers. Secondly their pricing has changed, in comparison with India, Parle

Agro charges Rs 28 for 1 litre of PET bottle and Rs 10 in Tetra packs, but

whereas if we see in Africa (Congo) Market they have their pricing Strategies as

per the different social classes present in the country and also Parle Agro’s Frooti

have taken into consideration the rate of inflation in the country also taking

into consideration per capital income of the population.

Also they have specifically used both above & below line promotion to reach its

consumers.


Extended marketing mix

Product.Providing high quality.

People.Its youth, teenager, kids.

Place.African region: - Congo, South Africa. Etc

Process.From exporting to reaching the target consumer

PriceAffordable price for the consumer.

Physical evidence.

To provide a health product.

PromotionOffer vouchers, leaflets.

5. Please provide Recommendations for Frooti?

Frooti in Others Flavours Now, the most striking fact is that Frooti is

available in Orange, Strawberry and Pineapple flavours in selected cities in

Maharashtra like Mumbai and Pune.

PLACE:-

Retail chain of NCSD in India

To capture the huge unorganized sector, Frooti should be promoted as a

retailing chain outlet in India on the lines of Barista which is in the retailing of

coffee.

This outlet should contain all the variants of Frooti in different flavours and

quantities and it should also be served in glasses.

Also, this outlet can be used to provide fresh fruit juices in various flavours at a

very reasonable price. This move will help Parle to capture a major chunk of the

huge unorganized sector which is more than Rs 500 crore.

But, this is a highly risky move and requires lot of capital so; Parle should first

experiment by opening a few outlets.

PROMOTION

The nutrient content of Frooti should be highlighted on the package so that

the consumer can become more aware and perceive Frooti as a Health drink.

The quality standard of Frooti should be approved by a reputed authority or

organization (like ISO series) and this be promoted.

Taking the cost consideration into account, Parle Agro can go for more

distributor and retailer margins, as by getting more margins the retailers and the

distributors will promote Frooti more efficiently. It should also provide more

consumer schemes.

Parle can also promote Frooti by providing various offering like. For this Frooti

should project its brand ambassador.


Conclusion:-

Parle Agro (Frooti) is one of the leading food and beverage organisation based in

Mumbai in every consumer minds. They have use many attractive and intelligent

ways of orientation, market research, their market segmentation, targeting and to

their positioning, to their marketing mix and the environment to attract their

customers.

Frooti is a market orientated product which means that according to the

consumer’s needs and wants it produces its product. Frooti has 75% market

share in Fruit juice based product and is the market leader in fruit juice

segment.

Frooti’s strategy is to make their product available anywhere and wherever.

Frooti has segmented it’s product on the basis of Demographic, Geographic and

Psychographic and has successfully achieved its objective over the years by

using this type of Segmentation. Frooti has always been positioned as a drink for

kids but now the company has position it as a drink for the youth, especially, the

college going teenagers and their attractive “Tag Line why grow up” has

convinced the consumers that Frooti is not only for Kids, Youth & teenagers but

for everyone.

Parle Agro’s Frooti focuses more on product, packaging, pricing and process out

of the 7Ps. There are varieties of packaging (of Frooti) made available to

consumer from lower to premium range. Packaging is another aspect for Frooti

as the appearance of the product will make the consumer attract and buy.

Frooti in India and Africa (Congo) are different as from the product to process. In

Africa (Congo) they have specifically aimed at “Pricing, Product and Process”

and have successfully reached in the consumer’s minds.


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