Distribution Strategy of Saint Juice

Presented by Group 5Foods & Beverages (Retail Sector)

Fruit Juice Market in IndiaRs. 500 crore packaged fruit drink market,

growing @20~25% Annually.Tropicana & Real- Market leaders, 40%

share.Packaged fruit juice- “Social drink”,

“Anytime beverages”, “Health drink”.Flavour Preferance- Orange, Apple, Sweet

orange, mixed fruit.Per capita consumption estimated at

200ml.Summers accounts for 65% of annual sales.

Source: Indica Market Research Agency.

Market Segmentation

• Real fruit drinks• Synthetic fruit drinks

Content

•(Juices) Pulp content > 80% eg. Onjus, Real, Tropicana•(Nectar) 40% < Pulp content < 80% eg. Life, X’s• (Drinks) Pulp content < 40% eg. Frooti, Jumpin

Fruit Pulp content

• Health conscious• Thirst Quenching

Benefits to consumer

Challenges: Threat of substitutes

Soft-drinks (carbonated & non-carbonated).

Flavoured Milk.Mineral water.Milk products such as Lassi,

buttermilk.

The “Sip War”

Consumer buying patternSmall Packs- convenience, on-

the-way consumption.Large Packs- Take home, price

conscious.Availability (shelf space) & brand

awareness.Predominant consumer age <

30years.Low brand loyalty- same taste.Key: Availability in right size at right

place

About Parle AgroParle Agro has annual turnover of

Rs.8.5 Billion that is expected to touch Rs.30 Billion in next 2 years.

Mission- “Refreshing India”First to introduce Tetra Packs in

India.First to introduce fruit drinks in

PET bottles.

Beverages: Portfolio Frooti- mango drink launched in

1985 in tetra pack, market leader in its segment (75% in its category)

Appy Fizz & Grappo- Aerated drinks in champagne shaped PET bottles.

N-joi (Milk based drink)LMN- Non carbonated, real lemon

juice, goodness of vitamin C.

Existing Distribution NetworkDirect Distribution network:- Own

fleet plying between factory & outlets. In Mumbai fleet of 50 owned trucks.

Franchise network:◦Mineral Water 18 franchise.◦Other beverages 11 franchise.

Saint Juice: The ProductPositioning: 100% pure juice with

no added preservatives, flavours and sugar.

Target Market segment: Health conscious consumers.

Tag line- 100% Juice, nothing else.

3 Flavours: Orange, Grape, Mixed Fruit

Available at 1ltr & 200ml SKU’s.

Saint Juice: The ProductPositioned as premium juice with

100% fruit content.Competitors- Dabur’s Active,

Pepsico’s Tropicana.Pricing:

Promotion: TV advertisement.

Flavour\ Pack

1 Litre 200ml

Orange, Grape

Rs. 95 Rs. 20

Mixed Fruit Rs. 100 Rs. 22

Saint Juice: Distribution StrategyMetros, Mini-metros and top 3

cities of every state.Point of purchase:-High locality

Supermarkets, Hyper market and self-service stores.

Point of consumption:- Multiplexes, hotels, restaurants.

Saint Juice: Distribution Strategy

Manufacturing @ Hyderabad Factory

End User

FranchiseStockist/

DistributorAgent

Retailer

ResultsSales have jumped 80 per cent. Activation has seen as much as

95 per cent conversion for the brand!

Future PlansThe Rs 8-crore campaign will also have an outdoor component and will be backed by on-ground sampling.Expansion to Tier 3 cities.

Parle Agro Retail Barometer: Backbone of PA’s marketing structure.

Information gathering network monitoring sales at approximately 21,000 outlets among 300 towns in the country.

Gives a monthly indication of outlets covered by the distribution network, simultaneously identifying strong and weak zones.

Stock and display levels of the company's brands as well as competitive brands are determined for each monitored outlet.

Corresponding sales figures are tracked on a daily basis, as is off take speed- helps in calculating the average time spent by the products on the shelves.

Advantages: optimal inventory, guaranteeing movement of only the freshest stock & quick response.

Thank You

Cheers!