Marketing Project On Fruit Juice

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REPARED_BY

Marketing Project on Fruit Juice


by Commerce Solutions in Marketing

Executive summary
India is a tropical country and has accorded a favorable reception to thirst quenchers such as fruit
juices and aerated drinks. Ready to serve kiwi juice is a beverage prepared from clarified kiwi juice.
When chilled the RTS beverage makes for a nutritious and refreshing drink. The nutritive value of real
fruit beverages is far greater than that of synthetic products, which are being bottled and sold in large
quantities throughout the country. If real fruit juices could be substituted for these synthetic
preparations, it would be a boon to the consumer as well as the fruit grower.
India is a market of diversity diverse with regards to incomes, price points of products, culture and
preferences and a marketer has to get use to these diverse characteristics of the market.
Drinking juice is not a part of our culture. We drink water with our meals but in the West one starts
the day with breakfast and a glass of juice. Juice is to a great extent considered as a luxury not a
necessity in our society, surely but slowly things are changing mainly in the urban and semi urban
areas, where the population is getting more and more health conscious and are realizing the important
nutrient values of fruit and are making them a part of their daily diet.
The companies in this Rs. 100 crore industry will have to organize various promotional activities from
time to time mainly to increase sampling and to educate the consumers about packaged fruit juice that
it is as pure and nutritious as fresh juice which is perceived as fresh as it is extracted in their presence
i.e. actual or assumed.
There are two main brands in this segment of non- carbonated drink markets; they are Real from
Dabur and Tropicana from PepsiCo. These two players command around 80% market share in the
organised sector.
We can observe this industry growing and new players entering the market. In recent times we have
seen the entries of some international brands, like Berri [Australia], Ballantyne [Australia], and Tipco
[Thailand], with the intention to strengthen their hold in India and to grow with the market.
Company

Shreeji Enterprises Pvt. Ltd will be entering the food processing industry with its first launch i.e. a
Kiwi fruit juice.
Three of the four investors have full operational responsibilities. SD and SY are the co-founders and
have both entrepreneurial and industrial experience. PB brings operational management and financial
skills to the operation.

Shreeji Enterprises Pvt. Ltd has a Strategic Alliance with the New Zealand based company Zespri
International Limited to supply the kiwi fruits to India. Pursuant to our company policy stating
"Quality First, Credit Prominent", we process our KiwiJoos with strict production standard, quality
control and sophisticated processing technology, we at all time provide our consumers the natural and
healthy Kiwifruit juice.
Our Start up costs, listed below, has been financed to date by the investment from its owners.
Following are the parameters:

Particulars Amount
Land & site development;[x[ acres @ Rs. [y] lakh per acres xxx
Building and civil works xxx
Plant and machineries xxx
Miscellaneous Fixed Assets xxx
Preoperative expenses xxx
Preliminary expenses xxx
Technical know-how and engineering fees xxx
Contingencies @ 10% xxx
Capital Expenditure xxx
Margin money for working capital xxx
Project cost xxxx

Market Analysis

Market Analysis Summary:

One can sense an evolution that the industry has seen with development in the tetra- pack market,
there also has been a natural progression from drinks to nectars to juices and while traditionally fruit
drinks were aimed at children, the new brands like Onjus, Real, and Life have focused on young
adults and professionals.

Although fruit drinks focus strongly on out of home consumption, the juices and nectars have been
concentrating on takeaways or in-home consumption with more choice coming in, the tetra- pack
market is likely to witness further segmentation.

Packaged fruit juices are getting recognized as social drinks now, with dominant consumption being
observed in the company of family and friends. People have started to perceive fruit juices as anytime
beverages, with consumption being spread more or less evenly between the mid mornings, afternoons
and evenings. And generation now is as much inclined to sipping fruit juices as colas, with teenagers
driving the maximum trials.

If the findings of a usage and attitude study conducted by market research agency Indica Research
across 1200 adults in Sec A and Sec B households in Delhi and Mumbai are anything to go by, then its
not just champagnes and colas that qualify as social beverages.

The results of the research can be briefly put as follows:


Among packaged fruit beverages, the awareness to trial, ratio of PepsiCos Tropicana juice brand has
been rated the highest. Up to 17% of the respondents were aware of Tropicana, while the brands trial
stood at 11%, also, 8% of the respondents stocked the brand at their homes. Other parameters where
Tropicana edged out competitors included taste, health, purity and nutrition, according to the study,
Tropicana was also perceiver as reasonably priced.
The average Indian may have a legendary weakness for mango, but when it comes to preference of
fruit-based juices; his choices are in tune with international trends. Therefore it is orange juice that is
the most preferred fruit juice flavour in India, followed by apple, sweet orange and mixed fruit.
The findings indicate that most packaged juice drinking consumers travel abroad on holidays.
Other attributes of branded juice consumers include employment of domestic help, ownership of
assets and credit cards, and health consciousness with 80% respondents going to aerobic classes or
working out at gymnasiums.
Understandably therefore, awareness and trial levels of packaged juices are higher within the Sec A
category, than among Sec B consumers, the majority of whom rated these as aspirational.
Awareness levels are similar in both Mumbai and Delhi; more trials are generated by Delhities than
their counterparts in Mumbai.
The consumers are starting to perceive fruit juices at home. While 55% of the respondents consumed
1- litre packs at home, 45% consumed 200ml packs.

The fruit beverage market has more acceptances in Northern and Western India, which is due to the

climatic conditions prevailing there with relations to the rest of the country.

Market Segmentation:

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

Under the fruit drinks the first segmentation is between real fruit drinks and synthetic drinks.
The real fruit drinks are based on natural fruit pulp or juice.
The synthetic drinks are synthetic products with fruit or other flavors.

Broad taste preferences could be another way to define the 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. For the purpose of segmentation, on the basis of fruit pulp content, market can be
segmented as:

Fruit juice with pulp content more than 80%. Brands falling in this category are Onjus, Real,
Tropicana, etc.
Fruit Nectar with pulp content between 40% to *0%. Life and Xs come in this category.
Fruit Drinks with pulp content less than 40%. Frooti and Jumpin are the popular brands in this
category.

Segmentation could also be on the basis of the benefits provided to the consumer:
One benefit could be the nutrition content it gives to the consumer so one market could be the healthconscious 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 can be 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 traveling.
People who are using it on the breakfast table as a part of their menu i.e. in-house use.

Players very often choose one or more of such segmentations to differentiate their product and target
market and accordingly plan their distribution and promotion patterns.

Market Needs:

Consumers usually, are not going to accept something that doesnt taste good even if it is good for
them or has certain benefits. Companies working to bring a new food product to the market have two
questionsdoes it taste good and will consumers buy it?

Market Trends:

Tropical fruits and flavours dominate the market, yet some consumers are still hesitant to try
unknown exotic flavours like cherimoya, guanabana and carambola. Companies have found the best
way to introduce exotics is in combination with familiar flavours. A flavour combination that began in
the new age, 5% to 10% juice category, and has spread to other beverage categories as well as to other
products like kiwi, strawberry, etc. stating that it was a small company that took the risk and won.

Smaller companies lead the way, as they are more willing to try exotic flavours even though the larger
companies have a larger staff and budget, and can afford to search out the trends. The large
companies tend to introduce prototypes that are pretty well-tested. They are always interested in the
next flavour trend, but usually are not the first to debut it.

Fortified drinks are also gaining market i.e. the juice is processed and an additional nutritious trait is
added to enhance its wholesome value e.g. with additional calcium, vitamin C etc.

One can notice the population in the country mainly in the cities becoming more and more aware with
regard to the nutritional aspect of life. This knowledge, coupled with the consumers desire for a
healthier lifestyle, has greatly impacted the evolution of juice and juice-based drinks over the last few

years.

Industry analysis:

The Rs 100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually, with
Tropicana and Real holding 40% market share each.

The market can be categorized in terms of product content and there are three major product contents
available.
Drinks: Juice with pulp content less than 40%,
Nectars: Juice with pulp content between 40 - 80%,
Juices: Juice with pulp content more than 80%,

The canned juice market initially covered brands like NAFED, Noga, Midland, Gold Coin and Druk.
These were fruit juices and nectars and not drinks. But they did not make a mark in the market due to
reasons such as high price, unattractive packaging and lack of right promotion programme.

Parle Agros Frooti, a mango drink, was introduced in the tetra pack in 1985 and since then has been a
leader in its segment. The market has suddenly picked up since 1994-95 and a few players have
emerged as market leaders.

Leading Manufacturers of Fruit Beverages in India:

Company Brand flavours


1. Parle Agro Frooti Mango, Guava, Pineapple, Strawberry & Orange
Appy Apple
2. PepsiCo Ltd. Tropicana Orange, Nature Sweet, Apple,
Grape, Pineapple, Tomato, Mixed Fruit.
Slice Mango, Litchi, Orange & Guava.

3. Dabur Real Grape, Guava, Orange, Pineapple, Tomato, Mixed Fruit, Litchi, Mango.
Real Active Orange, Apple
4, Godrej Foods Jumpin

Re

Xs Orange, Apple

Orange, Apple

Orange, Apple
5. Coca Cola Maaza Mango
6. BBI. II Tree Top Mango
7. Voltas Volfruit Mango
8. Hindustan Grapy Red Grapes, Litchi, etc.
9. HP Agri HPMC Apple Marketing
10. North East Agro Mkt. Ltd. NERAMAC Pineapple
11. Kerala Milk Mkt. Milma Mango, Pineapple
12. Salstar Foods Regold Mango, Apple Mixed
13. Mohan Meakins Gold Coin Apple Juice
14. Modern Foods Rasika Mango, Guava
15. Eastern Fruit Efil Mango, Litchi
16. NAFEED Nafed Apple, Mango, Processed Guava, Pineapple, Orange
17. Vadilal Industries Ltd. Vadilal Mango, Pineapple, Orange
18. Himgiri Foods Himgiri Mango, Pineapple, Orange
19. Lakhanpal Foods VAFA Mango, Pineapple, Orange

20. WIMCO Ltd. Sunsip Tropical Fruits Kioces


21. Tims Products TIMS Mango, Pineapple, Orange, Guava
22. BEC foods ROLZ Mango, Mixed Fruit Juices
23. The Maharashtra Inds. Development Corp. Ltd. NOGA Pineapple Agro.

[The above mentioned list consists of the brands noticeable in metros and as such there are a large
number of small canning units scattered all over the country catering to niche markets.]

Imports:

With a whole range of product lines opened up for imports over the past 14 months, these exporters
have now full freedom to exploit the huge Indian market. The fruit juice market in India is not yet
large enough to justify investing.

Today the consumer has got a wide variety to choose from as many foreign food and personal products
can come in unrestricted now. The Indian market place has seen a dramatic increase in the range and
quality. There is expected to be some level of competition in these areas. Quality will have to improve
and manufacturers will have to be more cost effective.

Proliferation of product range is also proving to be a problem for retailers with limited space on their
shelves. With Indian producers also improving and enhancing their variety, products are jostling for
space.

Consumers belief in India products too is going up; earlier issues were of durability and poor shelf
life. Now, Indian products have moved up to the next level. This could make it tough for imported
products to make a dent in established categories, especially where there is a substantial price
difference.

The complex sales tax structure In the various states confounds the exporter of fruit juices for
instance, it is myriad varying from state to state i.e. Central sales tax in Delhi at 85 and in Kerala it is
20%, while Maharashtra has VAT plus octroi hence fixing prices is quite an exercise and when you add
on these, the product becomes expensive. Right now, sale of imported goods from stores is at the top
end and is small percent of store turnovers. But this is expected to go up in the years to come. Imports
may not really make an impact in the market, but could allow legitimacy to some of the products that
come through the grey market channel.

The removal of QRs [Quantitative Restrictions] is not expected to have a major impact on the Rs 100
crore organised domestic juice market. This could be on account of the continuance of customs
duties at around 30-35% & juices have been coming into India under the open license policy for over 2
years now. As such, there has been no change ion the Exim policy for the juice market.

Through industry players are confident that there will not be a deluge of juice brands but they expect
some more additions in this category mainly because this market is growing and not necessarily as a
fallout of Exim policy. They also believe the stage is not set for any major price restructuring, or price
war in the Indian juice market as yet, as this market is very small still, and normally severe price wars
happen only when the market becomes big.

Both Berri and Ballantyne are among the recent entries in the industry. Berri fresh juice producer
which has 60% of the Australian domestic market and sells to over 30 countries. The companys
products such as Apple, Orange, dark Grape and Apricot juices are now available at supermarkets in
the major cities in India. Yet, in the year that Berri has been in the market, it has found the response
to be good. It has gained about 5-6 % of the fruit juice market. For Berri, whose biggest market
happens to be Asia, India is still small. But the company is serious about growing it. Ballantyne also as
Australian company is also not looking at investment in India at this stage.

Problems with imports:

The imported products on offer in most stores stocking foreign foods reveal that they are close to
their expiry dates.

Most such products available now come through the grey market. Most of these products, especially
those that come from South-East Asian countries, are imported by agents who supply to stores. As the
imported process itself is a long drawn out affair, often food products land up on shelves quite close to
their expiry dates and there is also a danger then of agents tampering with expiry dates and
consumers buying stale food.

The other problem that retailers face is that since they are dealing with agents there is a problem of
returns of products when they are past expiry dates. Its not an issue when a retailer is dealing with a
company as there is a mechanism for accepting returns. At times companies are seen to import
through their own channels and supply it to the retailers.

India is a difficult market mainly because of delays at the docks, tariffs and duties on various
products, bribery and corruption and the lack of a cold chain (for horticulture produce). Things when
they arrive do not get straightway into cold storage i.e. the inadequate infrastructure to handle the
distribution of fresh produce, which causes a rapid deterioration in the quality.

Therefore, while there could be more brands in the organised juice market, the bigger chunk of the
market will, in all likelihood, continue to be with the already existing players. Fruits and their
derivatives are expected to enter India in huge quantities and once the market becomes bigger and
volumes come in, prices of imported goods are expected to come down.

Substitute:
Fruit juice companies have to face a two level competition i.e. on the first level with the substitutes
and the then the players within the industry. The sip war is comprised of the following players with
respect to India.

Soft Drinks (both carbonated and Non- carbonated soft drinks)


Soft Drinks are divided into carbonated and Non- carbonated drinks. While Cola, lemon and oranges
are carbonated drinks mango drinks come Non- carbonated category.

Flavoured Milk (energy, N-Joy etc.)


Just like fruit drinks Flavoured milk is also positioned on the health platform. Companies are trying to
project it as a fun drink with added flavours and innovative packaging.

Mineral Water
Fruit drink sellers consider even mineral water as substitute to their offerings. The main assumption
is that packs ensure quality delivery.

Other products
Milk by- products like buttermilk and lassi also serve as major substitutes. They compete in terms of
low price as well as easy availability. These drinks are also considered important from the health
perspective.

Distribution patterns:

Distribution network and reach are vital factors for success of the brands in the fruit beverage market.
It is mainly the distribution strategy that the companies are focusing upon.

The distribution is mainly done through stockist. The companies also have franchises that work as a
separate entity. Some companies also have their C & F agents to give the product to the distributors,
who further distribute to the retailers. To co-ordinate the things properly with the distributors,
companies keep their own field force.

Below the figure shows the many ways the companies in this industry are seen to be operating:

The urban Indian retail sector has traditionally been structured around three small retail entitiesthe
grocer, the general store and the chemist.

The grocer stocks non packaged, unbranded commodities such as rice, flour, and pulses, as well as
branded fast moving consumer goods (FMCGs)
The general store stocks only branded, packaged FMCGs.
The chemist, a part from dispensing pharmaceuticals products, sells branded FMCGs such as
personal care products and health foods.
Departmental stores and supermarkets.
Others:
Bakeries and confectioners
Fruit juice/ tea stall/ vending machines
Ice-cream parlours,

Electrical and hardware stores and


Non-food boutiques, etc.

These retail outfits stock branded FMCGs that gel with their businesses.

Supply chain integration does not quite matter in the case of the small retailer because of the small
scale of his operations. He normally deals directly with wholesalers with whom he is able to negotiate
rates.
Retail consolidation (consolidation of buying power) among supermarket operators is unlikely to hurt
small retailers simply because it will affect manufacturers directly, who will not want to compromise
on the distribution reach to offer large volumes to a few big retailers.

The small retailers form an integral part of the wide distribution network set up by the large FMCG
companies. Marketers have also found that private/ store brands from supermarkets can prove to be a
threat to their own brands and hence, desist from encouraging retail consolidation.

Consumption and buying Patterns:

The Indian lifestyle has a traditional predilection for fresh fruits and vegetables or those processed at
home. People go in for fresh fruits vending from kiosk fountains, which produce instant juices from
fresh fruits in the presence of the consumer.

One reason is the unavailability of hygienically produced and well- preserved products with the use of
preservatives. The fact that it is packed denies its freshness. This was also a reason why some of the
real but branded fruit juices launched in the late 1980s and early 1990s did not succeed.

Taste is often the secondary consideration in the Indian market for beverages. Fruit juices also lose on
roughage, which is an important part of fruit nutrition. Few people know the difference between a
juice and nectar.

In general, the Indian consumers have become health conscious now and are looking for healthy and
natural appetizing juices. They are moving away from synthetic drinks to natural and wholesome fruit
juices. At present;

Per capita consumption of juices in India is estimated at a fraction of a litre i.e. 200ml.
The consumption of fruit juices in take home packs is estimated at 17250 mnlt.
Consumers go for convenient and economy products.
So small packs are well suited for travelers and children and large take home packs for families and
price conscious people.
Availability in chilled form and brand awareness plays a crucial role in purchase decision.
This has implications for the need for availability of the product and in the right form.
While there is no aversion to consumption of fruit beverages by any group, the main consumers of
this market are people in the age group of 30 and below.
Young adult and teenagers predominantly consume tetra pack drinks.
Brand loyalty is very low, as all the products taste the same.
But brand loyalty is high in case of kids.
Though there is a lot of difference between brand awareness and brand loyalty.
Consumers are money conscious where the purchase of fruit beverages is concern.
Consumers are not ready to explore the market.
They do not want to change their taste and are stuck to their old brands.
Orange and other drinks are slowly picking up and breaking the loyalty towards old brands.

Main Competitors:
A host of brands are jostling for thirst space. Not just colas but beverages and fruit juices of all hues
are adorning shop shelves. From bottled iced-tea to branded chhaas, fruit-based drinks and flavoured
milk, beverage makers have gone berserk with product innovation as new variants continue to flood
the market.
Fruit drinks are high on the swig list in summers as it is part of the health fad sweeping the nation.
Health conscious consumers are increasingly giving aerated drinks the go by and making a beeline for
fruit-based concoctions. Moreover, sporadic controversies about pesticide-infested cola drinks are
said to be driving consumers towards fruit-based drinks as a safer alternative. That is why even
existing players are going all out to pour out new flavours.

Dabur:

Dabur Foods that was set up in 1997 has brands like Hommade, Lemoneez and Capsico in its basket.
The Rs. 37 crore Dabur Foods ltd, a wholly owned subsidiary of Dabur India ltd ahs two brands of
juice in the market, they are;
Real
Real Active

For its Real brand, Dabur is focusing on increasing in home consumption by targeting mothers and
children. It is priced in the range of Rs. 60 to 65 [1 liter] and Rs 15 [200ml] except for Guava that is
sold in the range to Rs 65 to 70 and Grape that is sold for Rs. 70 to 75. Its ingredients are water, fruit
concentrate, sugar, citric acid and flavours of;
Grape, Guava, Orange, Pineapple, tomato, Mixed Fruit, Litchi and Mango.

The Real Active brand is targeted towards fitness- crazy young consumers. The drink is positioned on
the health plank. It was launched towards the end of 2002. At the same time, the company plans to
position Real Active as its premium juice brand, while Real would be targeted at consumers belonging
to socio economic categories B and C also. It contains only fruit concentrate and water. It is priced at
Rs. 68 and 70. It is available in the Flavours of;
Apple and orange.

The company was eyeing a turnover of Rs. 60 crore in the year 2001 -02, which is an increase of nearly
50%. According to the company it ahs seen a growth of 44% in the financial year 2001-02 as compared
to 34% in 2000- 01. The company plans to increase the advertising spends for the brand by nearly
40%. Today the advertising and marketing budget for the brand by nearly Rs 8 Crore. The companys
thrust is on increasing in-home consumption therefore they are mainly targeting the mothers and
children.

However, the company has restricted its activities in the urban areas only and wishes to fully
consolidate markets in the cities before looking at the small towns and rural areas Dabur Foods claims
to be the market leader in the pure juice category such as Punjab, Delhi, Haryana, etc.

PepsiCo:

The Pepsi operations in India are now the part of the new Asian division of PepsiCo Beverages
International formed by the merger of PepsiCola International, Tropicana and Gatorade, the sports
beverage company acquired from Quaker Oates. Earlier, India was one of the eight business division
of the beverage company that used to report to PepsiCo International in New York directly. Now it
reports to PepsiCo Beverage International Asia in Hong Kong. PepsiCo Beverage International is a
division of PepsiCo Inc. This move has been prompted by the need to give greater regional focus to
new products like Tropicana and Gatorade so that they become a key element of the overall portfolio
of the US beverage major.
PepsiCo Inc. is one of the worlds largest food and beverage companies. The companys principle
businesses include:
Frito Lay snacks
Pepsi-Cola beverages
Gatorade sports drinks
Tropicana juices
Quaker Foods

Pepsi India is already working on a strategy to launch a bevy of Gatorade products in the country by
the end of this year. These are as follows:
Gatorade Thirst Quencher
Gatorade Nutrition Shake
Gatorade Energy Drink
Propel Fitness Water
Gatorade Energy Bar
It is also planning to give a major thrust to the juice business through the launch of a host of new
products under the Tropicana brand name i.e. on the health and energy platform. PepsiCo has so far
invested around Rs. 100 Crore inn ready to drink juice segment where the company has two brands
Tropicana & Slice. It has 14 plants in India producing fruit juices & 2 of them work on tetra pack.
Tropicana:

Tropicana entered the country in 1998. Tropicana is currently imported in a concentrated form, which
is later reconstructed at a plant in Baramati, near Pune and vacuum packed into tetra packs after
paying an import duty. It covers around 18 cities of India. The factor of its success is that it has a
tightly controlled distribution system on top of an equally controlled production and this in turn helps
it keep its taste constant and the company boasts of it too.

Tropicana Beverage Co. recently announced the companys inclination towards bringing in an entire
series of juices and other health drinks from its international portfolio into India in the coming years.
The Tropicana brand, per se, has been positioned on the health platform.

Pepsi also plans to give its juice brand which has seen many hurdles in the nascent and niche juice
market a renewed thrust in the coming days. A price revision of the brands is also on the anvil.

Since 2001, Tropicana roped in celebrities in the field of nutrition and health to sell its brands. Under
which they got renowned people in the field of health to recommend their clients to use their brand.
The list of names included the likes of Anjali Mukherji, Sabina Sehgal Saikia and Vandana Luthra,
who promote the brand, positioned as a health drink, to their upwardly mobile clientele. Even
celebrity doctors and pharmacists were included in its list of marketers. Tropicana is also sold through
various health clubs like Talwalkars, Personal Point, etc. in Mumbai and Delhi. In the past as a part of
its promotional activities, the company had conducted a Tropicana Health Run in the capital, slated
for World Health Day, which was on April 7, 2001. Tropicana also runs a programme called The
Tropicana Club under which every time one buys a pack of Tropicana he earns points which he can
collect and exchange for a wide range of gifts and also, as a member he gets unique offers, exciting
gifts and interesting information on keeping fit and looking good.

The company is seen to intensify its distribution network, with a greater thrust on large institutions.
Apart from retail and consumer level promotions, Tropicana is being promoted through health
bulletins and health leaflets. The company intends to continue with its unconventional retail thrust.
Apart from the 20,000 to 25,000 outlets across 18 cities that Tropicana has a presence in, the brand is
being placed across gymnasiums, fitness centers in 5-star hotels, coffee shops, airlines, hospitals,
offices and health stores. These points of consumption are not consequential in providing high
volumes, but important from the imagery point of view. Typically, non-retail stores have been
contributing 12 15 % of the brands sales. Tropicana evokes a high brand loyalty among health
conscious middle and upper-middle class segments. The company is seeking to project itself on the
health platform and has an ad spend of around 20% of its sales.

The brands existing tagline of Taste of Good Health has now got an extension statement of Dont
forget the juice, Tropicana 100% pure fruit juice. Tropicana is packaged in a 200 ml slim pack
[which replaces its 250 ml pack] and 1-liter in a flat pack tetra pack. The company is seen to run
promotions in coordination with its other offering like a scheme where 16 gm pack of Lays Magic
Masala that comes free with a 200 ml pack of Tropicana. Worldwide, Tropicana has a host of juice
brands under its belt. Brands like Twister, Dole, Looza, Fruvita and Juice Bowl, which could find their

way into the Indian market in the coming years. It has decided to make changes in the composition of
its juices to suit the Indian taste buds. For instance, realizing that Indians like a sweet flavour, it
decided to launch a separate sweet orange juice product specifically for the Indian market. Since it
could not dilute its juice content, it decided to substitute part of it with grape juice to make it sweeter.
Even its launched tomato and mixed fruit juices have been altered to suit the Indian palate.

Currently, in terms of market share, Tropicana is believed to trail behind rival Real (Dabur) but is not
far behind and also has close to 40% market share of the estimated Rs 100 crore branded juice
market.

Pepsi sets the pace for backward integration of Tropicana, as a first step towards backward integration
for its pure juice business Tropicana is foraying into contact farming of citrus fruits like oranges and
Keanu. Punjab- Jallowal has been chosen as the location for the project. The 3 phase project
involving trials, nursery and contract farming, is being pursued jointly by Pepsi and the Punjab Agro
Export Corporation. Through in its infancy at the moment, the project vision however is of about
seven years. If successful, it would mean 100% localization of orange juice and it becoming the supply
center to other regions.

A present Tropicana has the following flavours:


Orange, Nature Sweet, Apple, Grape, Pineapple, Tomato, Mixed Fruit.

Slice:
PepsiCo in 2002 poised to make deep inroads into juice drink segment in India with seven new
variants of its Slice brand. For the first time in companys history, a Litchi variant of Slice was
introduced. Apart from that, a guava and Orange flavours was also being offered. Apart from 200 ml
slim line cartons priced at Rs 10 each, Slice juice drinks is subsequently made available in 250 ml
returnable glass bottles as well.

The company invested significantly to bolster the Slice brand in the year 2002 and plans to invest
heavily through the year while Slice is now available in litchi, orange, mango and Guava flavours, they
are expected to be soon joined by Slice Cocktails.

PepsiCo is sourcing litchis from Muzaffarpur, guavas from Karnataka and Allahabad, and mangoes
from Ratnagiri.
Mangola:
Mangola, the other fruit-based beverage in the PepsiCos list, has a healthy presence in Maharashtra.
Pepsi Foods acquired Mangola, originally a brand of Dukes, when it officially stepped into the

domestic market while Mangolas distribution is restricted to Maharashtra; Slice is available in all
markets.

Pepsi, in association with foods and toiletries major Hindustan Lever, launched Lipton Iced Tea in
returnable glass bottles and PET bottles. It has also introduced Mirinda in apple and strawberry
flavours. Pepsi had earlier said they planned to reduce their dependence on cola and bring it down to
40 per cent of total sales in the next few years. Pepsi came on aggressively with its "Oye Bubbly"
campaign. Coca Cola promised consumers a date with Aishwarya Rai with its "Thanda Aish Cash"
promotion. It also promoted ThumsUp through March and April with its "Hai Dum?" campaign
featuring Bollywood actor Akshay Kumar.

Parle Agro:

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 a hugely popular product
Mango Frooti, it is planning to get into orange and pineapple under the same brand of Frooti. While
orange pulp will be imported from Brazil, pineapple will be sourced from Thailand.

At the same time, it has also embarked on stretching the franchise of its existing brandsFrooti, Appy
and Bailley Mineral water. It knows the market and has sustained its brands in spite of the huge
unorganized segment. Besides, the company will use its existing distribution network to get into the
new categories. At the moment, its only advantage is its distribution strength.

Parle Agro boasts of a franchise network which few can match. It has two different sets of franchisees
for its packs (11 franchisees) and mineral water (18 franchisees) that manufacture and distribute its
brands. It ahs also attempted to venture into direct distribution by engaging special trucks to
transport its brands to retail outlets. For instance, in Mumbai, it has 50 trucks plying between its
factories and the outlets. Besides, future plans include introduction of the same direct distribution
system for its franchisees across the country.

Flushed with funds after selling of its portfolio of soft drink brands, Thumps Up, Limca and Mazza
and bottling facilities to Coca-Cola the company has enough cash and this is evident since it has not
got listed. It also has a massive distribution network to reach its end consumer. Besides, the goodwill
of the Parle brand is a great help in its new ventures.

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 sizes (1 liter) 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.

Frooti has always been positioned as a drink for kids but now the company is looking forward to
position it as a drink for the youth, especially, the college going teenagers. This was the basic rationale
behind the Digen Verma Campaign, where a real life, down to earth person, who, like any college
student likes to bunk classes, is a good sportsman and is a popular figure in the college, with whom
the teenagers could actually associate themselves with Digen Verma.

Parle Agros product portfolio includes Appy, Frooti and N-Joi (a milk base drink, which are priced at
Rs 10. New PET bottles have been introduced in 1 liter and 500 ml for mango Frooti at a price of Rs 28
and Rs 18 respectively. It has recently introduced a green mango flavour in the tetra pack and is also
priced at Rs. 10. Parle Agros has an enormous distribution reach of 10 lakh outlets, including leading
hotels and restaurants, eateries, super markets, and paan-shops. Meanwhile, Parle Agro is planning
to tap the rural markets with its strongest brand Frooti. There are plans to set up a separate
distribution in the product itself.
In keeping with market sentiments, cola biggies Coca Cola and Pepsi, too, are focusing on innovation
in their non-cola portfolio. Coca Cola has launched Maaza in pineapple and orange variants in 125 ml
tetra packs and large family packs. It recently started a new facility in Bareilly to cater to the growing
demand for Maaza in north and central India. It is learnt that the company is also set to launch some
"niche" products.
Parle Agro has seen a trend towards fruit-based products. Parle Agro spent Rs 5 crore (Rs 50 million)
to relaunched its flagship mango drink, Frooti, with modified packaging and a new ad campaign. It
launched a guava drink, Frooti Guava, in Mumbai and other western regions in 65ml packs priced at
Rs 2.50. The company is now out with Appy Fizz, an aerated apple drink in champagne-shaped PET
bottles. Launched in Bangalore, it is being rolled out in Kolkata and Chennai in 500 ml and 300 ml
packs retailing at Rs 25 and Rs 18, respectively. The 60 million case fruit beverage market never had it
so good. Of the Rs 7,000-8,000 crore (Rs 70-80 billion) drinks market, fruit beverages account for Rs
500 crore (Rs 5 billion), growing at 25- 30 per cent annually. Like most drinks, summer accounts for
65 per cent of total sales.

Godrej:

Godrej Foods Limited is into the business of manufacturing and selling processed foods and trading of
vegetable oil. The company has a number of leading cooking oil brands like CookLite, Godrej and fruit
juice brands like Jumpin, Xs, refresh in its product portfolio. The companys main source of revenue is
its oil trading business, which makes performance of its business highly dependent on commodity
price trends.
It has 3 fruit beverage brands in its product portfolio, while Jumpin and Xs are national brands,
Refresh is available only in states of UP and Rajasthan.

Jumpin:
Jumpin brand is positioned as a fruit drink. It is available in the flavours of orange, pineapple, apple
and mango. Jumpin is available in 200ml and the price for all the flavours are Rs 10.

Xs:
Xs is targeted towards adolescents positioned as nectar drink. Xs is available in following flavours
litchi, mango and guava and it is priced at Rs 15 for the 250ml pack.

Refresh:
Refresh is positioned as a mass market drink but targeted towards adults.

Godrej Industries' foods division with its XS fruit juice launched in 1998 in litchi, guava and mango
flavours. Exotic blends of Godrej include fruit juice Berry Blast (strawberry-cherry-black currant) and
Triple Tickle (apricot-peach-apple). The new range is priced at Rs 15 for 200 ml and Rs.65 for 1000
ml. Godrej Foods, "The idea is to come out with exotic flavours that will combine great taste with
attractive packaging for the youth." With the new offerings, he expects to see a 30-40 per cent rise in
sales.

Gujarat Co-operative Milk Marketing Federation:

(Amul)
Pitching in to pose further competition to the colas is the recent launch of Amul Masti chhaas by the
Gujarat Co-operative Milk Marketing Federation. Amul has also added two new variants -- strawberry
and mango flavours -- to its milk drink brand Amul Cool. Amul are currently selling 400,000 units of
Amul Cool per day with six flavours. That is 23 per cent higher than last summer, when they had just
four flavours. Coming next from the Amul stable is Cool Cafe, a coffee drink to be launched in
Mumbai, Delhi and Gujarat.
Retailers, however, say that while such efforts lead to a temporary revival in offtake, sales tend to
slacken once the promotions end.

Product

Kiwi fruits are small oval fruits with a thin brown skin, soft green flesh and black seeds. They are rich
in many Vitamins, flavonoids and minerals. In particular, they contain a high amount of Vitamin C
(more than oranges), as much potassium as bananas and a good amount of beta-carotene.

Anti Oxidant properties of Kiwi Fruit


It is important to note that kiwi fruits contain a remarkable amount of Vitamin C, E and A. Vitamin C
is a water-soluble antioxidant that has been proven to protect our body from free radicals,
dramatically improving the health of individuals who consumed it regularly against all kinds of
disease, from cardiovascular problems to cancer and obesity. Vitamin E has been proven to have
similar effects, but is fat-soluble and thus is complimentary to Vitamin C in its functions. Kiwi fruits
contain both these vitamins in high amount, which help protect our body against free radicals from all
fronts. Kiwifruit seed are where the most of the Vitamin E and dietary fiber are found.
Kiwi fruits have a high fiber content
The high content in dietary fiber helps improving diseases such as diabetes, by controlling sugar
levels, and cancer color, since fiber binds to toxic compounds in the colon and helps us expel them.
Fiber has also been proven to reduce cholesterol levels, improving the conditions of patients with
cardiovascular diseases and lowering the probability of heart attacks.
Summary of Kiwifruit Health Benefits
Eating kiwi fruit is clearly a healthy choice, particularly useful in these cases:
Prevents Asthma
Prevents wheezing and coughing, especially in children
Protects our DNA from mutations
Provides a healthy amount of antioxidants and vitamins
Helps prevent colon cancer thanks to a high fiber content

Kiwi Fruit Nutrition Content Research

Nutrient Content Gold Kiwifruit Green Kiwifruit Main Functions


181 ug/100g
Flesh 158 ug/100g
Flesh Stabilize VAInhibit Oxidation & Free Radicals Prevent TumorImprove
FecunditySlow Aging

Vitamin E
Bearing Phenols 3.025 mg/100g
Seed 2.72m g/100g
Seed Inhibit OxidationEnhance ImmunityParticipate In DNA SynthesisSlow Aging Inhibit
Mutation Prevent Cancer

Vitamin C
Anti-Scurvy Acid 135.96 mg/100g
Flesh 154.95 mg/100g
Flesh Accelerate CollagenSynthesis Stop Bleeding Accelerate Amino Acid
MetabolismInhibit OxidationActivate FolacinExpel Toxin

Chlorophyl
481.50 ug/g
Peel 222.51 ug/g
Peel Prevent Inflammation Inhibit CancerDetoxification Accelerate Wound Close AntiCholesterin

Arginine 0.0953%
Flesh 0.0463%
Flesh Provide Baby Need Amino AcidAccelerate Immunocyte ActivityPromote Secretion of
Growth Hormone Prolactin and Insulin

Se 3.17 ug/100g
Seed 1.53 ug/100g
Seed Inhibit Oxidation Prevent CancerProtect DNA Inhibit MutationPrevent Cardiovascular
DiseasesSlow Aging

Polysaccharide 4.56 g/100g


Peel 3.44 g/100g
Peel Inhibit OxidationPrevent CancerInhibit MutationRepair & Shield CellsLower Blood
GlucoseImprove ImmunityAccelerate DNA SynthesisStrengthen Marrow Hematopoiesis

Polyphenol 4.56 g/100g


Seed 8.47m g/100g
Seed Inhibit Oxidation ConvergenceStop bleedingAntisepticPrevent Cardiovascular
Diseases

Monkey Peach Alkali 0.82 %


Seed 0.83 %
Seed Sedation Reduce Blood Pressure Improve Sex Function

Product Description:

This product is actually a mix of 20 percent pure kiwi juice, water, and cane sugar. With a strong,
accurate kiwi flavor, this could actually turn out to be a pretty tasty orange juice substitute a possible
motivation for placing a high-visibility Vitamin C label across the front of the package.
1) Kiwifruit Juice in 250ml PET Bottle

Product code: KS250ML


Description: Kiwifruit Juice
Packing: 24 X 250ml
Gross Weight: 12.5kg
Approx. Qty per 20ft FCL: 1400 Cartons

This Ready-To-Drink variant offers an option to retail operations catering to customers looking for
healthy, thirst quenching single serve options. The well-designed packaging ensures that it stands out
whether it be displayed in normal shelves or walk-in chillers.
It is also ideal for foodservice operators looking to offer single serve items on the beverage menu.
Inventory control becomes less complicated and KiwiJoos are definitely a refreshing addition to any
beverage menu. Stored at an ambient temperature away from direct sunlight or heat, the product has
a shelf life of one (1) year from date of production. It should be consumed immediately upon opening
and KiwiJoos are best served chilled. MRP of this 250 ml bottled drink will be Rs. 30.

2) Kiwifruit Juice 1.2 liter Concentrate

Product code: KC25FFM


Description: Kiwifruit Concentrate
Packing: 12 x 1.2lt
Gross Weight: 16.5kg
Approx. Qty per 20ft FCL: 1008 Cartons

This product comes attractively packaged in a 1.2 Litre PET Bottle with a recommended dilution rate
of One (1) part concentrate to Seven (7) parts water. This variant offers value for money and
convenience for those with large families or entertains frequently.
It is also ideal for the foodservice establishments as it requires minimal storage space and no
refrigeration is required, allowing them to cater for large functions. Stored at an ambient temperature
away from direct sunlight or heat, the Concentrate has a shelf life of one (1) year from date of
production. Upon opening, the product should be kept refrigerated. KiwiJoos are best served chilled.
MRP of this 1.2 Lt bottled drink will be Rs. 130.

3) Kiwifruit Juice Drink in Tetra Brik Aseptic 1litre and 2 litre Slim line Re Cap

Product code: KS01TPSL


Description: Kiwifruit Juice Drink
Packing: 12 X 1lt, 12 X 2lt
Gross Weight: 13kg
Approx. Qty per 20ft FCL: 1350 Cartons

This Tetra Brik variant is UHT processed, contains no preservatives and comes with a convenient resealable non-drip spout. It is an ideal choice for active families or individuals who want a convenient
yet nutritious thirst quencher. With this addition, KiwiJoos has now a wide range of packaging choices
to suit both consumers and retailers.
Foodservice operators looking for a shelf safe; space saving re-sealable packaging can now opt for this
variant. The Tetra Brik variant has a shelf life of one (1) year from date of production when stored at
ambient temperature. Keep away from direct sunlight and heat. Keep refrigerated upon opening.
KiwiJoos taste best when served chilled. MRP of this 1 lt Tetra pack will be Rs. 90 and MRP of 2 lt
Tetra pack will be Rs. 180.

4) Kiwifruit Juice in 5 litre HDPE Tub

Product code: KS05FFM


Description: Kiwifruit Juice
Packing: 24 X 5lt
Gross Weight: 23kg
Approx. Qty per 20ft FCL: 840 Cartons

This is a Ready-To-Drink variant ideal for foodservice operators catering for large volumes. The
product offers a refreshing change to your beverage menu and is a versatile ingredient for concocting
cocktails or other non-alcoholic cocktails.
Storage is convenient, as it requires no refrigeration. The product has a shelf life of one (1) year from
the date of production when stored at ambient temperature away from direct sunlight and heat. The
product should be kept refrigerated upon opening. KiwiJoos are best served chilled. MRP of this 5 lt
HDPE tub will be Rs. 400.

Future Products:

Aerated Kiwi drinks


Kiwi Kraze (Kiwi-apple-lemon)
Gold Kiwifruit Juice
s
Kiwi wine

Packaging:

Juices can be found in every type of packaging. In early days, cans and glass bottles were the only
available types of packaging. Today, the assortment includes PET bottles, sports bottles and brick
packs.

Introduced to reduce shipping weight or to allow small children to pour their own juice, PET bottles
provide another benefit: shatter- resistant properties. Juices found in refrigerator case typically come
packed in gable-top cartons. The newest innovation in cartons is the re-closable plastic cap. Some
single- serving juice drinks come in sports-top PET bottles. Some companies concentrate on
proprietary packaging, with easy grips or unusual eye-catching shapes.

Packaging is an important part of promotion today hence the company has decided that KiwiJoos will
be served in transparent PET bottles for all the quantities and will carry the company Logo/ Symbol,
nutrient value of the juice and the statutory requirements like the ingredients etc.

Key Success Factors:

Processing and Packaging technologies used:


State of the art production and packaging technology is a must in this industry. This gives an edge in
packaging and ensuring freshness of product besides enhancing the image.

Distribution Strategies, Logistics and reach in the market:


A strong distribution network is essential for ensuring availability to fight competition from the other
players and also the substitute that have a strong distribution reach.

Regional taste preferences:


Companies should take into account the regional taste preferences and build products to serve the

same. Various concoctions and formulations in the US and other foreign markets suggest that such
strategy is necessary to live the image of the company and remain in the forefront.

Product portfolio and variants produced:


Innovations in terms of ethnic flavours and mixes will pay off. With respect to KiwiJoos we must
make sure we increase our product baskets as we cant exist with only one flavour and many flavours
will also help in leveraging and ensuring that there is optimum utilization of resources.

Sourcing of raw materials:


Global sourcing strategy will give an edge over other players in terms of both cost and quality
advantages.

Flexible and effective marketing mix:


The product mix, promotional mix, pricing mix and distribution mix should be made effective and
should be flexible in all sense it should help us to combat the primary competitors i.e. players in the
fruit beverage market and the substitutes i.e. soft drinks, flavoured milk, mineral water and
unbranded sector.

Strategic alliances and joint ventures:


Strategic alliances and joint ventures help in gaining competitive advantage in packaging, distribution
and product formulations.

SWOT Analysis:

Strengths:

Innovative flavour hence we are bound to get the attention with proper communication.
Committed, capable and ambitious management.
We can gain incentives as we will be a SSI and so we can pass these to capture more market.
Flexibility in our operations as initially we will be confined to few cities so can focus our efforts on
the tasks.

Weakness:

Our distribution set up initially will be weak when compared to the others in the market.
Kiwi as a fruit is new in the market and not all people take the risk of experimenting with taste.
We are entering the market with only one flavour and our next flavour will be out only after six
months of the first launch.
Our financial constraints with respect to our competitors demand that our resources are used
optimally.
We will not be able to price our product lower than the others in the market as we have a longer
distribution channel and managing this channel also will be an important task. Also as our product is
not available in India its cost of acquiring increases and therefore it cannot be sold at a low price in the
initial stage.

Opportunity:

The market is in a growing stage and fairly small in terms of market share as compared to other
thirst quenching and healthy drinks so at this stage our entry is expected to be noticed.
The market has a presence of only few players and they are not too aggressive in their acts.
More and more people in the urban areas are getting health conscious and are making fruit juice a
part of their daily diet. Hence the market is growing.

The government policies are expected and are showing trends to encourage the food processing
industry.
The kiwi fruit can be then cultivated in India in the regions of Himachal Pradesh, Uttranchal
Pradesh, Sikkim, Arunanchal Pradesh, Meghalaya, Jammu and Kashmir and Nilgiri Hill, to cut down
the cost of imports of the fruit.

Threat:

Our competitors are deep pocketed and they could harm us by getting aggressive in their
promotional activities.
The competitors have strong brand images in the market because of their other businesses and their
presence in the market from an early stage.
Indian market has characteristic of serving a wide variety people which is a challenge for all the
marketers.
Others can adopt the flavour and the value of a unique flavour could be neutralized soon.

Marketing Strategy:

Marketing Summary:

Pursuant to our company policy stating "Quality First, Credit Prominent", we process our KiwiJoos
with strict production standard, quality control and sophisticated processing technology, we at all
time provide our consumers the natural and healthy Kiwifruit juice.

KiwiJoos is a new flavour in the market and the company is also new so its marketing budget cannot
be limited. So the strategy will be to enter the market with a big bang. Developing visibility and brand
equity is the key. KiwiJoos will be advertised in different media with respect to our target market i.e.
the women of the house and children who are an important influencing factor in todays scenario. The
teens are the most who like to try out new and different products so even they are an important target
audience.
In addition to the advertisements which will be used to drive consumer sales, KiwiJoos will leverage a
networking campaign with respect to the distributors and sale promotion at the points of purchase i.e.
local restaurants, gyms etc. to drive commercial sales.

KiwiJoos will be on the shelf in all markets by 15th February, the company will start supplying its
stock by 6th February. The promotional activities will start from 12th February.

Mission:

KiwiJoos mission is to provide the highest quality of fruit juices. We exist to attract and maintain
customers. When we adhere to this maxim, everything else will fall into place. We will ensure that our
products will exceed the expectations of our customers i.e. we develop a competitively superior value
proposition and value- delivery system.

Marketing Objective:

Maintain positive and steady growth each month.


Experience an increase in new customers i.e. we have to ensure that our products have a high trial
rate which will help us to turn these new customers into long term customers.
Generate brand equity at the markets we are catering to as well as within the supplier and
distribution networks.

Financial Objectives:

Realize a 3% increase in the gross profit margins through efficiency gains every year.
Reduce the logistic cost associated with product delivery by 10% by the end of the first five year of
operation.

Target Markets:

The women of the house


Children
The teenagers
In-home consumption

Out of home consumption

The women of the house and children are an important influencing factor in todays scenario. As the
KiwiJoos contains lots of health benefits, the women who care for her family wants her family to be
healthy and so are they are targeted.

The children are attracted to the beautiful ads and demand for the products as they want to
experiment things just for the sake of it or for their self satisfaction.
The teens are the most who like to try out new and different products. Todays teens are the most
health conscious and put in lots of efforts to be healthy. So even they are an important target
audience.

In- home consumption:


This group of people buys fruit juices for home consumption and in many case treated as grocery item
and is on the shopping list and forms an important part of their diet.

For an average Indian population juice consumption is seen as a luxury and is a very urban
phenomena as people in the urban are getting more and more health conscious and relating and
accepting juices as a healthy social drink. These people are typically sophisticated and are exposed to
the idea of healthy living and are concerned of the well being of their families.

Usually the lady of the house takes the buying decision but she is influenced by her offsprings many
times to the extent of brands and flavours.

One of the strong characteristics features which is common throughout our target audience is that it is
considered that juice is fresh only when it is extracted on the spot for consumption purpose and it is
considered to be better than the packaged ones available in the market. This mind set will have to be
changed and the customers will have to be convinced that KiwiJoos is fresh, has all the nourishments
intact and is available without the hassle of extraction for consumption.

Out of home consumption:


This consumption pattern is usually observed in people who feel the need to quench their thirst, get
refreshed or both. These types of people are important of KiwiJoos as they are the people who will try
the product in small quantity and give us an in road in the home for in home consumption, which is
our focus area.
If this segment is satisfied then they will start personal use of KiwiJoos and they will also act as a
source of mouth - to - mouth publicity, which is considered to be one of the best in its kind.

This segment is challenging one as there is a dual pattern of consumption which mainly exists here i.e.
firstly an individual decides if he/she would like to have a fruit juice or a substitute like carbonated
soft drinks, water, flavoured milk, etc. then if he/she chooses fruit juice, they have to chose from the
available alternatives then he makes a choice among the available brands with respect to the perceived
value and its cost.

Such type of consumption is usually seen;


On roads i.e. in front of the general stores, railway stations, bus stands, airports etc.
Entertainment zones like amusement parks, cinemas, parks, theaters, etc.
Eating-places like restaurants, college canteens, hotels, etc.
Working places like offices, aerobics classes, gymnasiums, places of worship etc.
The key to serving this segment would be to be available and visible at points of purchase and
including the person to buy, with effectively communicating to them that KiwiJoos is a healthy
alternative to satisfy the thirst ensuring taste, fun and good health.
It is positive that fruit juices are being perceived as anytime beverage. Generation now is as much
inclined to sipping fruit juices as colas, with teenagers driving the maximum trials.

Positioning:

KiwiJoos will position itself as a no compromise drink where a person does not have to make any
compromise with the fun element of having the refresher and the health element and that it is also
socially appreciated/ accepted.

It will be communicated to the customers that nor do they have to make any compromises and that
nor do the producers make any compromise in bringing them KiwiJoos which is made from fresh kiwi
fruit and is produced under a well controlled and a healthy environment.
To put our point forward initially we will be using the tag line:.and we will be
promoting the kiwi flavour as Exotic Kiwi.

Brand Logo:

Strategies:

The single objective is to position KiwiJoos as the natural and healthy Kiwifruit juice in the cities it is
served, commanding a 30% market share within 5 years. The marketing strategy will seek to first
create customer awareness regarding product, develop the customer base and work towards building
customer loyalty.

KiwiJoos seeks to communicate the message that it is the natural and healthy Kiwifruit juice in the
market and will help them in not compromising on fun and health and that a customer can have both.

This message will be communicated through a variety of methods with the communication tools/
promotional mix.

The advertisements will be for the purpose of building and registering KiwiJoos as natural and healthy
Kiwifruit juice and not only for our introductory flavour but also for the flavours in future. The ads
and the promotional activities will be concentrating only on the cities in which KiwiJoos is served
hence the main weight age will be given to the local media and advertisement on the national level
only to the objective making our presence felt.

Marketing Mix:

Marketing mix comprises of approaches to price, distribution, advertising and promotion.

Pricing:
Price is the marketing mix element that produces revenues, the others produce costs and it is also one
of the most flexible elements as it can be changed quickly, unlike product features and channel
commitments. India is known as a price sensitive market i.e. an Indian customer wants more value at
low price.

The companys objectives with regards to pricing is to survive the resistance from the existing players,
maximize profits and increase its market share in the five cities it is catering.

KiwiJooss pricing will be a premium pricing. As we are targeting the sec A and sec B of the middle
class and also the Elite class the price must be affordable to consumers. Consumers are ready to shell
out little extra money for the exotic and classic drink that has many health benefits. Even though we
are catering only one flavour initially the pricing is close to the competitors pricing.

KiwiJoos will be priced as follows:

250 ml Rs.30
01 liter Rs. 90
1.2 liter Rs. 130
02 liter Rs. 180
05 liter - Rs.400

Distribution:

The distribution or reach factor is a marketing mix element that needs to be monitored over a period
of time. Unlike product improvement or positioning strategies that are extremely sensitive to
consumer preferences and changes, distribution inertia could dawn on the company over a period of
time. An attempt to link distribution with the changing environment will ensure that a great deal of
slow damage is averted. As consumer behaviour changes, competition picks up and the product moves
through its life cycle, new channels may have to be considered, evaluated and chosen.

The company Shreeji Enterprises Pvt. Ltd has its KiwiJoos manufacturing and packaging plant in
Nasik. The Kiwi fruits will be imported from New Zealand based company Zespri International
Limited.

The company will be moving in the first phases i.e. the first year we will have an aim of entering only
few major cities of India and establishing our brand with Kiwi flavour which will be seen as a launchpad for our other offerings i.e. flavours. The initial launch will be in the following cities:

Chennai
Bangalore
Delhi
Mumbai, Pune and Nasik
Kolkata

The transportation to the cities will be basically through rail and road depending on cost effectiveness.
The inventory level will be decided with respect to the season and in coordination with the distributor
and the company representatives. The company will have its representatives positioned at each city
that will coordinate with the distributors and the company will interact with the retailers inorder to
ensure the company first hand information about the product with relation to the customers. There
will be 5 representatives stationed at each city who will have to make 40 calls a day in their respective
territories.

To keep the channel active and result oriented following initial steps will be taken;
They will be given discounts on cash purchases.
The goods will be available on credit basis also.

Retailers have to be segmented based on Volume, exclusiveness, complementary products handled


and basic requirement of refrigeration facilities, which is a must for our product. These factors will be

given consideration before incentive schemes are worked out.

KiwiJoos will be marketed through different channels. All different sizes will be available at places
where buyer buys products in greater volume;

Supermarkets

scount stores like Big Bazaar, Apna bazaar, etc.


Hyper Mall
Petrol pumps

Chemists, General and Convenience stores

Health clubs, Gym, Gymkhanas etc.

Entertainment zone: Theaters, Cinemas, Parks, Amusement parks, Game Parlours etc.

Ice-cream Parlours

Hotels & Restaurants

Bakeries

In certain areas such stores may not exist so in these areas the bottles will be available at specific
stores at the discretion of the representatives and distributors, these stores should be able to serve the
basic idea.

The effectiveness of our channel will only be known when we assess our chosen channel on the
following criteria:

Are the customers expectation been met by us?

Are the channels serving the targeted segments?

Are our intermediaries motivated?

Future thought on distribution:

In our category if we are to become a national brand we will have to have a number of manufacturing
plants close to markets to ensure savings on distribution costs which in turn could our brand a
competitive edge with regard to the pull at the retailer level through good margins to the retailers.

In the plan to go international our KiwiJoos will be available in Japan, France, Greece, Hong Kong,
Macao and China mainland in the future.

Promotional Strategy:

The promotional efforts will be on two fronts i.e. on our direct customers and the end consumers. This
should ensure KiwiJoos a push from the distribution and a pull from the customers.

All our promotional efforts should serve some basic criteria like the activities should carry a feel good
appeal and should enhance emotional attachment of the target with KiwiJoos.

KiwiJoos will be advertised in cost effective media like newspapers, radios, hoardings, at bus stands,
and the most important and effective will be through TV advertisements. There will be some cosmetic
variations of these advertisements when they are launched across the country. Regional celebrities
who appeal to consumers may also be used in advertisements intended for various regions these
celebrities will represent our positioning.

Sales Promotion:

We will be tying up with few other marketers and piggy backing our product on theirs; this is expected
to give us access to the shopping list and homes of our target. Marketers that we intend to tie up with
will be the ones that have a place in the shopping list of the lady of the house e.g. branded wheat, salt,
frozen vegetables, magazines etc.

The company will also tie up with supermarkets and other stores, which are mainly volume oriented,
by piggy backing our product on their in-house products. Both the above routes will help us in
sampling our products to our target customers and in the right manner.

Attention will be given to the presentation part too, POP materials, store displays, stickers etc. will be
used to create awareness at the retail outlet.

Advertising:

Advertising will be exercised with a media mix, which will consist of:

Print Media:

Print Media will be used in the form of news papers of various languages. Print media will be mainly
used with a purpose of communicating and complimenting our sales promotion schemes to pursue
and gives us visibility.

Audiovisuals:

Television as a media will be used to inform the qualities and benefits of KiwiJoos and give us
visibility and build the brand image with the customers. The combinations of TV channels will be used
at different intervals. The channels will be selected keeping in mind our target i.e. the lady of the
house channels showing good TRP ratings for their soaps; the influencers i.e. her offspring music,
movie channels, cartoons, etc.

Audio:

Radio will be a key element in our media mix as it is cost effective and will cover our catering cities
precisely. Under the brand name we will be running contests, sponsoring programme, etc. This will
help us reach out to our target audience and the influencers.

Outdoor:

Outdoor communication will be done to help us get the visibility i.e. with the help of Hoardings, which

will be placed at areas that are prone to traffic jams and at toll Stations. Railway stations in Mumbai
will be a good target area for such print media as it also has maximum visibility because majority
people travel daily by trains to work. In respect of this media the company will be very selective.

Posters:

Posters will be created by the company during the events and will be carrying the company logo,
brand name and the picture and the tag line.

Public Relation:

The company will be a part of events and/or will also be organizing its own events. The events will be
chosen on the core values of community relation and whole family participation. The company will be
a part of children and youth involving events like college/ school festivals, meets, etc and only use
these as a platform to getting closer to their influencers and sample their product at a concession or
commission basis.

World Wide Web:

We will make our presence felt on the internet by hosting a website for the brand KiwiJoos which will
be named www.kiwijoos.com which will;

The website will be imparting the information about our products, quality and values i.e. history of
kiwi, its cultivation, its benefits etc.

Run online contests

Give health tips

Give recipes

Opinion section - person is free to express his thoughts and feedbacks

The website will be a tool to get closer to our customers and understand them better and will serve an
entertainment and utility value.

Time frame:

An assortment of promotional tools will be used to increase visibility for KiwiJoos but the promotional
activities will be concentrated differently with relation to the seasonal pattern in the country. India is a
country with varying climate- winter, summer and monsoon (heavy in west coast between June and
September where as in East coast during mid October to December). Though the promotional
activities will be continuous throughout the year but the degree and combination will vary. This is
intone to the perspective of the target market where it is noticed that soft drinks are consumed less
during the winters and the monsoon period.

Marketing communication budget:

In the initial period the marketing communication budget approved by the company is Rs. 80 lakh to
maximum of 1 crore. Later when our product portfolio is expanded i.e. within a span of one and a half
years from commencing operation the company will adopt the percentage of sales method i.e. the
company plans to spend 15% of sales on promotional activities.

Marketing Research:

During the development of the marketing plans, several focus groups will be used to gain insights
about our customers. These focus groups will provide us with helpful insight, which will compliment
the decision making process.

An additional source of dynamic market research will be the feedback mechanisms with the help of
our website www.kiwijoos.com , the contests which the company will be a part of and the primary
research which may be done by us or another party if felt the need or in combination.

These will be the steps which will be taken to understand the brands position in the customers mind
and will serve the purpose of being close to our customer to understand him better. Shreeji
Enterprises Pvt. Ltd will work hard in analyzing and implementing suggestions in order to improve its
offerings aw well as to show its commitment to the customer and convey to them that their
suggestions are valued.

An important source of information will also be our competition. The company will keep an eye on the
competitors activities as they are a constituent of our environment and their activities are bound to
affect us. This will be done with the help of the secondary data available and primary data from our
customers, our channel members and others.
______________________________________________________________________

Fruit Magic Marketing Plan by Team Fruitilicious


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1. I. EXECUTIVE SUMMARYFruit Magic develops products that are relate to the current
trend of health and fitness. This marketingplan illustrates our market segments and the
strategies and promotions we are employing to getcustomers and create a solid sales
stream. The unique characteristics of Fruit Magic is its ability toprovide customers the

healthy benefits that each product inherent. Customers are after the benefitsthey receive
not the product itself.Fruitilicious Marketers, as what they call themselves develop
strategies and tactical promotions andstrategise to provide developing opportunities both
for the company and the customers. With these, itwill establish a stronger niche for the
company and loyalty from the customers. illThe marketing plan consists of 5 sales
promotions for Fruit Magic lounges and stalls which will beexecuted from March-July
2011, and a mellow Fruit Magic jingle to suit the lounges cosy and relaxing July
ungesambiance. Fruitilicious Marketers also considered designing a flyer to increase
consumer awareness oftheir brand and promote the variation of Fruit Magics healthy
products. II. THE CHALLENGEThe following marketing objectives are th focus of this
marketing plan: the Increase consumer awareness of the healthy aspects of drinks and
other products of Fruit Magic by 5%. 1
2. Increase sales by 3% of Fruit Magic lounge in fruit magic lounge by promoting the
healthyproducts of Fruit Magic. The 3% came from PHP 521, 441.00 monthly sales of
fruit magiclounges and stalls.Computation: PHP 231.751894 - Average of shakes prices
X 2500 - Regular number of cups served daily PHP 57, 9379.735 X 30 - Number of days
in a month PHP 17, 381,392.05 X 0.03 PHP 521,441.00 - Projected SalesIncrease profits
of store or stalls by 2% by offering the other healthy products of Fruit Magic.The 2% came
from PHP 347,627.842 monthly sales of fruit magic lounges and stalls.Computation: PHP
231.751894 - Average of shakes prices age X 2500 - Regular number of cups served
daily PHP 57, 9379.735 X 30 - Number of days in a month mber PHP 17, 381,392.05 X
0.02 PHP 347,627.842 - Projected Sales 2
3. To be a company that both, promotes the total well being of people through provision of
sound well-being options to those who are in search of a healthy lifestyle, and develops
general public appreciation and awareness for a fit and healthy way of living. To ensure
total satisfaction in its service through a team of happy, motivated, dedicated,
responsible, disciplined, and energized professional associates.III. SITUATION
ANALYSISA. SWOT Analysis Strengths o Captures certain percentage of coffee
enthusiast. o Leading in juicing industry o Clear vision of healthy products o Open for
franchising o Centralise commissary Weaknesses o Not easily found in rural areas. o
Employees are not well trained and unknowledgeable about Fruit Magic. well-trained o
Offers small space unlike other similar stores. o Lack of aggressiveness in advertising
Opportunities o Nowadays, most people are shifting to healthy kind of living. o Arising of
much kind of diseases and sickness increases the demand of fruits and other healthy
products. o People are now aware of the benefits of healthy products. o Fruit Magic is a
solution for people who are looking or needing for healthy products. 3
4. o People are inclined in the thing that will benefit them and will contribute to their
wellness. o Changing age of possible target customers o People are much aware of
having rest Threats o Intense competition with both direct and indirect competitors and
also due to tertiary outlet. o Some product of Fruit Magic is unknown to the customers. o
Competitive locations of Fruit Magic competitor. o Competitive price of Fruit Magic
competitor. o Some of target markets are still unaware of fruit magic and its product. o
Unbounded changing of customers demand and preferences. ing B. Company
AnalysisFRUIT MAGIC is currently enjoying its popularity as the leading source of the
freshest fruit juices andconcoctions in the country.It was in 1993 when Mr. and Mrs.
Ricardo Meneses pioneered juicing and established the first ever freshfruit juice bar in

the country. It was made known under the brand name RPM Fruit Magic with a
sloganthat displays Mr. Juiceman. 4
5. Fruit Magic instantly became a hit by simply offering a healthy alternative to soda and
other artificially alternativemade beverages. News hit the mall circuit and two additional
stores followed - The Glorietta andLandmark branches. In 1999, Mr. Alan Escalona, a
doctor by discipline, and a businessman by profession,took Fruit Magic into higher
ground, changing the simple fruit juicing service to a mainstream fresh fruit icjuice brand.
It was a success.Currently, Fruit Magic is investing on new developed products such as
healthy pizza, sandwiches, yogurtice cream and many more to continue offering fresh,
leading edge product ideas.The target market is aimed at health conscious consumers,
consumers who need and look for healthyproducts. Increasing awareness of the benefits
of healthy products encourages people to shift onhealthy kind of living which increases
the demand for provider of healthy products like Fruit Magic. C. Target Market Description
o Fruit magics target customer is between the ages of 25 and 45 who have healthy kind
of living. They often need and look for healthy products that fruit magic offer. products o
Fruit magics target customer are typically or married and either men or women. Who
need and look for a great tasting yet healthy food. Who are willing to spend and looking
for a value and benefits regardless of the price. o Fruit Magic is also aiming young
professionals that are looking for place to relax and magic of healthy foods for their
journey n life. o Fruit Magic are also capturing teenagers either full time student in college
and high school or a working students that are willing and able to buy or willing and
sooner be able to buy, who are unique and want to become unique. D. Customer
AnalysisCustomers nowadays are being conscious regarding on how they look inside and
out. So the productsbeing offered in Fruit Magic Store are perfect for those individuals.
The market that the company are orefocusing is on AB Market and reaching the class C
market, which is niche marketing. It is much easier tohandle than having a mass
marketing. The only problem is that, a lot of competit competitors are sproutingmaking
competition more intense. The company must therefore provide the needs of the people
withcreative ideas on how they will attract and keep the market.According to a study
conducted by the Center for Marketing Intelligence in 2009, when consumers saythey are
on a diet, theyre dieting for their health. Rather than losing weight or looking better,
68percent of respondents say that feeling healthier is the reason for dieting. Perhaps
the difficulty of the 5
6. process of weight loss dieting has taken its toll, and instead of deprivation, adding
healthful foods to etingmeals may be the better option. Consumers now want to be
healthy and enjoy life.1Customers are easy to persuade regarding new try outs but the
only problem is how a business g try-outs going tomake that customer a happy and
satisfied one, making them a loyal customer. Hence, the managementof any organization
must adapt to modernization and be ready for the battle of changing customerneeds. E.
Factors Affecting Consumer Purchase Environmental FactorsEnvironment also plays an
important role in decision making of each customer and because of thearising of different
diseases people now is becoming conscious of the products they are buying.Nearly twothirds of consumers are also more likely to check nutritional information on labels. Theyre
thirds morelooking for four important items: fat, calories, sugar and trans fat. Natural is
also the most frequentlyfeatured claim on food and beverages. This, along with plus
claims or that which includes vitamins andcalcium, are also gaining popularity among

consumers. It used to be that minus tags are benchmarksof good nutrition. Now, instead
of looking for minus or low low-fat/ low-calorie labels, consumers are now
caloriesearching for genuine nutrition, finding the balance between addition and
subtraction.2 n, Human FactorsA human factor refers to the person around a buyer that
may influence his or her decision toward aparticular product such as family and friends.1
Food trends: Positive eating and downturn diet PhilStar.com, May 18 2009 Food
diet,(http://www.philstar.com/Article.aspx?articleid=468648
http://www.philstar.com/Article.aspx?articleid=468648).2 Ibid. 6
7 7. F. Product Review Product DescriptionFruit Magic is known as a provider of healthy
products, each has a distinct taste with correspondingbenefits that is perfect for people
that are food lovers yet are taking health in consideration. Product-Market RelationsFruit
Magic healthy products are best solution for the problem of people who are concern of
theirhealth; people that are in need and looking for healthy foods yet having a racy taste.
Fruit Magic willalso best fit to people who want to start a healthy lifestyle. The following
are products of Fruit Magic with their corresponding prices: owing Frugurt Flavours Small
Medium Large KIWI MANGO YOGURT P75 P100 P125 STRAWBERRY YOGURT P75
P90 P75 BANANA YOGURT P65 P75 P95 MANGO YOGURT P65 P75 P95 Shakes
Flavours Small Medium Large BLUEBERRY BURST P95 P125 RED REVITALIZER P95
P110 FRUIT MAGIC SHAKE P80 P105 STRAWBERRY KIWI P60 P80 P105
RASPBERRY P65 P80 P110 RASPBERRY BANANA P65 P80 P110 RASPBERRY
MANGO P65 P80 P110 7
8 8. FRUIT PENTA MIX P75 P100 STRAWBERRY P55 P70 P100 STRAWBERRY
BANANA P55 P70 P100 STRAWBERRY MANGO P55 P70 P75 MANGO P45 P55 P75
MANGO MELON P45 P55 P75 MANGO BANANA P45 P55 P75 GREEN MANGO P45
P55 P75 MELON P45 P55 P75 WATERMELON P45 P55 P75 CHOCO BANANA P45
P55 P75 BANANA P45 P55 P75Pure Nectar Flavours Small Medium Large ORANGE
P75 P105 P135 THE BODY CLEANSER P65 P95 P110 COLD DEFENDER P65 P95
P110 OLYMPIAN P65 P95 P110 ANTI CANCER P65 P95 P110 APPLE P65 P95 P110
CARROT P65 P95 P110 SMOOTH AS SILK P60 P85 P105 PINEAPPLE P55 P65
P90APPLE-LYCHEE BOTTLE LYCHEE P55 DALANDAN JUICE P35 P40 P55 BUKO
PANDAN P35 P40 P55 SOY MAGIC (500ML) P55 FRUITEAS (500ML) P55GREENMANGO BOTTLE MANGO P55 TRIPLE COMBINATION P65 P95 P110 8
9 9. Functional Boosts Flavours Price per Serving WHEATGRASS POWDER P35.00
DESIGNER WHEY P50.00 LOW FAT YOGURT P20.00 WHEATGRASS BOX
P395.00Wraps Flavours Price per Serving CHICKEN PESTO P140.00 SCD SCDCHICKEN PESTO P112.00 SMOKED SALMON P140.00 ROAST BEEF P110.00 RANCH
GRILLED CHIKEN P100.00Pasta Delite Flavours Price per Serving BAKED MACAND
CHEESE(WHITE SAUCE) P125.00 CARBONARA(WHITE SAUCE) P120.00 EGGPLANT
LASAGNA(WHITE SAUCE) P120.00 CHICKEN BROCCOLI(WHITE SAUCE) P110.00
STEAK AND TOMATO(RED SAUCE) P165.00 SPICY SAUSAGE(RED SAUCE) P120.00
BOLOGNESE(RED SAUCE) P110.00 SPICY TUNA(RTED SAUCE) P120.00 9
10 10. SEAFOOD PASTA(OIL BASED PASTA) P195.00 PRESTO VERDI(OIL BASED
PASTA) P110.00 CHEESE STEAK P185.00 GRILLED CHICKEN SALAD P110.00
CHICKEN SALAD SANDWICH P110.00 TUNA SANDWICH P95.00 TUNA MELT P70.00
HAM AND CHEESE P70.00Salads Flavours Price per Serving PROTEIN SALAD
P180.00 CHICKEN CEASAR SALAD P120.00Healthy Pizza Flavours Prices ALL

MEAT(SQUARE PUFF PIZZA) P290.00 CHEESE BURGER(SQUARE PUFF PIZZA)


P290.00 PEPPERONI(SQUARE PUFF PIZZA) P290.00 HAM AND CHEESE(SQUARE
PUFF PIZZA) P260.00 GOURMET CHICKEN(ROUND PIZZA) P265.00 PESTO
MARGARITA(ROUND PIZZA) P260.00 MEXICAN(ROUND PIZZA) P240.00 WHITE
CHEESE LITE(ROUND PIZZA) P220.00 SEAFOOD ROYAL(ROUND PIZZA) P195.00 10
11 11. Yogurt Flavours Small Medium Large ORIGINAL FROZEN YOGURT P48 P68 P88
SWEET & CREAMY YOGURT P38 P48 P68 Flavours Prices APPLE- -CARROT
(REGULAR) P65.00 APPLE CARROT MEDIUM P110.00 APPLE CARROT LARGE
P110.00 SOY OATMEAL RAISINS P40.00 OATMEAL COOKIES P35.00 G. Competitor
AnalysisAn increase in the awareness of the market about the good benefits of healthy
products paves the wayto increasing competition on healthy products. The increasing
demand for healthy food is creating moreopportunities for people to go into business, and
one of the least expensive but potentially lucrative oneventures to start is selling fresh
fruit juices.Supply is no problem: The Philippines has 11.3 million hectares of farmland
devoted to fruits,vegetables, and other crops, and you could start with as little as
P10,000, says Jennifer Tutanes, a littleresource person with the government run
Technology and Livelihood Resource Center and a food government-runtechnology
professor with the University of Makati.33 Bridget Rabo Ng, Selling Fruit Juices,
Philippine Franchise Business Investments. September 23, 2006
Selling(http://pinoyfranchising.blogspot.com/2006/09/franchising
http://pinoyfranchising.blogspot.com/2006/09/franchising-fruit-juice-and-shake.html). 11
12 12. Direct Competitors Big chill is known by its customers as providers of healthy
products such as pasta, sandwiches and drinks that will also fit for customers that have a
healthy lifestyle. SWOT AnalysisStrengths o Big Chill is open for catering services o Their
menus are more informative it creates awareness to consumers what are they buying.
enus informative,Weaknesses o Prices are expensive o Lack of promotion intended for
awareness thus, much of the market are unaware of Big Chill uchThreats o Intense
competition o Competitors are being more aggressive in promotion and advertising
strategies.Opportunities o AB market is a niche market which is easier to handle. o
Intense competition, generating ideas from competitors Strategy o They are offering other
services like catering that makes them competitive o They are offering new products on
their menu that will surely enjoyed by their customers 12
13 13. Fuzion is a take on the word "fusion" which typically refers to food prepared from
ingredients and techniques from across different places in the world. At Fuzion, we take
pride in selecting the best , fruits, dishes and techniques from all over the world to bring
you a mix of healthy fruit smoothies and Eastern and Western snacks, meals, and
desserts. Fuzion is also selling fresh and nutritious drinks. SWOT AnalysisStrengths o
Fuzion is composing of committed and competitive people which are very helpful in
achieving its ommitted objectives. o Great product idea and strategy that makes it
distinctive. o They offer healthy products with unique taste taste. o Competitive location
that are friendly to customers and are pleasing to the eyes.Weaknesses o Prices are
more expensive compare to competitors xpensive o Market awareness is lowThreats o
Increasing competition to industry to which it is involve o Competitors have competitive
strategies in capturing possible target consumers.Opportunities o AB market is a niche
market which makes it easy to handle and study o Intense competition, generating ideas
from competitors which may find helpful for the company. Strategy o Fuzion now is taking

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their way to market by having a mascot that will be remembered by its market. o Fusion is
having a unique process that makes its product distinctive. o It makes everyone involve
for full awareness. 13
14. Fruitas is widely known by most of us as a provider of healthy drinks which is also
affordable for most of us. SWOT AnalysisStrengths o Stalls are situated in competitive
locations o Brand awareness is high o Prices are cheaper that makes it affordable to
many people o Utilizes more advertisements compared to competitorsWeaknesses o It
has no lounges o Less product choices o Products are not well stored and prepared that
may sacrifice the freshness of its products.Threats o Increasing competition to industry to
which it is involve o Competitors have competitive strategiesOpportunities o People are
attracted on products with quality but low prices. o Intense competition can also be an
opportunity in disguise. Strategy o Fruitas is also taking their way on the market by having
celebrity endorsements. o They open the company for franchise. 14
15. Indirect Competitor Starbucks is the most popular and leading coffee coffee-selling
company in the Philippines. Today, there are more than 160 stores throughout the
country, and Starbucks growth has played a key role in building a strong local coffee
culture in the country. SWOT AnalysisStrengths o They already gained awareness and
are able to establish and position itself on the market. o People now continuously
patronize them regardless of the price. o Starbucks became a status symbol o Starbucks
offers a large coffee menu and grocery items. o It has a cosy atmosphere and is actively
involved in the community with such things as Starbucks Foundation (youth and literacy),
Starbucks Grant for Foundation Giving, and weekly Poetry Fest nights. o Strategically
branch out o Established name and position in the market place.Weaknesses o Much of
the market find starbucks products with h prices high o Issues on the negative effect of
coffee. egativeThreats o Intense competition in coffee industry o The arising of healthy
and cool juices that really fit the warm weather of the Philippines.Opportunities o Filipinos
are really a coffee lovers o Most Filipino has a follow the crowd mentality. o The rise of
advance technology that would create value on products and customers. 15
16. Strategyo They are offering new products such as shakes that is compatible for a
warm weathero They are continuously creating promotions that will build stronger
customers.o Strong commitment to help promote a sustainable social, ecological, and
economic model for production and trade of coffeeo Applying the highest standards of
excellence to the purchasing, roasting, and fresh delivery of coffee.IV. MARKET
SEGMENTATION A. Primary Target Market Economic Class People who belong in the A
Economic Class A-B o A class Top 5% (5 million) Senior Politicians, Land owners, Large
Business Owners o B class 10-15% (10-15 million) 15 Mid-Level Politicians,
Professionals - doctors, engineers, supervisor Level Demographic Segmentation o Fruit
magics primary target customers are between the ages of 25 and 45 who have healthy
kind of living. They often need and look for healthy products that fruit magic offer. o Fruit
Magic aimed at A-B segment. These are the people who read a lot and understand the
benefits of fruit drinks drinks. 16
17. o Fruit magics target customer are typically single or married and either men or
customers women. Who need and look for a great tasting yet healthy food. Who are
willing to . spend and are looking for value and benefits regardless of the price. o
Employed. Higher than average household income Psychographic and Behavioural o
Health Buff In quest of for healthy products that suites their needs and wants. o They are

health and nutrition conscious. o People who seeks and need for the benefits of healthy
products. o People who know the importance of having a healthy body. o People who are
much aware of the importance of healthy products as they continually advance through
life.B. Secondary Target Market Economic Class o C Middle Class 20% (20million
people) Skilled craftsman teachers and nurses as well as bank clerks and retail shop
assistants Demographic Segmentation o Fruit Magic is also aiming at young
professionals that are looking for a place to relax and for the magic of healthy foods for
their journey in life. o Fruit Magic are also capturing teenagers either full time student in
college and high school or working students that are willing and able to buy, or willing and
sooner be able to buy, who are unique and want to become unique unique.
Psychographic / Behavioural o They are riche nouveau fun seekers. o Sports Enthusiast
o Gym addict 17
18 18. o Great qualities of prod products are sought without considering of the price. o Fun,
exciting promotions are essentially the source of reaching and attracting essentially them.
o Seeking for products that are enticing and have a new look for them. o Condo
dwellersV. SHORT AND LONG TERM GOALS Short Term Goals o Increase brand
awareness o Gain sales through different promotions o Increase the market share of the
healthy pizza Long-Term Goals o Be the top of the mind brand name for healthy foods o
Establish more Fruit Magic stalls and lounges o Generate promotions to healthy
lifestyleVI. SELECTED MARKETING STRATEGYA. Product M - Making the process on st
standard to keep the reputation of the company and tation the great taste of its healthy
products. A - Assuring that the product deliver to customers are safe and fresh. G Giving the customer the product with magic smile on their face and providing them a
wonderful experience. I - Inviting the customers to comeback with their friends and
families and share the F and Fruit Magics great tasting and yet healthy foods. agics 18
19 19. C - Caring for customers through delivering the great tasting foods and healthy
products of Fruit Magic and by its friendly and customer oriented employees. Frutilicious
Marketers are promoting all the fruit magic products and its benefits, through this
arketersstrategy; it will keep customers and invite others to come for fruit magic by
delivering qua quality andhealthy foods for everyone. B. Price M - Mindful creation of
products and services that corresponds to their price in a competitive market. A Accentuating those prices is tantamount to quality. G - Guaranteeing that most products
being offered compliments customer needs with reasonable prices. Right prices leads to
growth of Fruit Magic, in turn, lead them to expansion (more branches). I - Fruit Magic
impels on setting prices that are benefiting both company and customers. C - Setting
competitive prices against direct and indirect competitors.Frutilicious marketers maintain
the regular prices of fruit magic products. Customers will be persuadedby the benefits
they will gain from availing the products instead of paying attention to the prices. its C.
Place M - Man, making all Fruit Magic employees well coordinated, well informed and
always well- assures the success of the company through following its missions, vision
and its objectives. Man refers not only with its employee but also to the stores established
at different places that are standing firmly just like a man. 19
20 20. A 100% Awareness The company has to assure that the entire work force are
aware of what fruit magic is, everyone must know its product, its prices, the benefits or
value that the product has, every promotion that the company has for its customers and
all the basic information, to ensure that the customers are not only physically healthy but

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also mentally, and to ensure that the customer knows what they are buying and where
ntally, they buying it and most important to build trust. G - Giving convenience and being
an approachable store. Ensuring that the store is offering customers with convenient
and giving them a wonderful experience. Store must also approachable to its customers
through its jolly and friendly employees so that fruit magic will also be remembered for its
approachable employees. I Informative Store must be informative to keep customers
informed about the store, its promotions customers as well as the products they are
buying. C - 100% Cleanliness The store has to keep and should always implement 100%
cleanliness for food safety and to ensure that the customers are getting the fresh and
safety products to ensure safety their satisfaction.As part of creating awareness for Fruit
Magic, the following are the flyers that will be given to ensurethat customers will be aware
of Fruit M hat Magic and its product as well as its benefits; it will promote thevariation of
Fruit Magics product that will fit every lifestyle of its regular customers and possible
iationcustomers. 20
21. FlyersSpecifications: Size is 6 by 8 inches when folded, consists of 6 panels, back to
back print on high gloss paper 21
22. The front page serves as a summary of the flyerscontent. It is entitled A Fruitful and
Magical Treat forEveryone to promote the variation of Fruit Magicsproducts.There are
panels for Weight Loss, Energy, Protein,Cooler and Wellness which suits every
everyones lifestyle. Page 2Wheatgrass Nutripowder Mix is added with prebioticsfor
healthy digestion and L-Carnitine for weight loss. Itis delicious to savour and best of all
loaded withnutrients that can be a natural solution to commonhealth problems. 22
23. Page 3The Healthy Pizza is made from multimulti-grain, wholewheat dough, loaded
with nutritious ingredients. A ,made to order pizza that will boost energy. Page 4 The
Wraps and Sandwiches contain nutrients and vitamins that keep a healthy body. 23
24. Page 5Frugurt and Shakes that will cool down your day whilegetting adequate
vitamins and nutrients. Page 6Wheatgrass Boost contains chlorophyll oxygen
whichprimes up the brain and all body tissues at theiroptimal level. It is good for
detoxifying the body. 24
25. Fruit Magic has several branches, a total of more than 60 operational stores located
to different placeshere in Manila to best serve and reach each customer and easily cater
on their needs of healthyproducts. In addition to Fruit Magic Lounge, the company is
gearing up as it forays to new food concepts companybeyond juices and shakes. Upon
the idea of Escalona himself, Fruit Magic Co. Inc. has diversified byventuring into pizzas
late last year. The companys pizza bar, called Pizzaiolo, is already gaining a loy
loyalbase of customers in its first outlet at the Atrium of the Manila Ocean Park behind the
QuirinoGrandstand in Luneta Park. To exceed customer requirements and offering
customers higher value offoods and store quality and experience, Fruit Magic company
started establishing its lounges, FruitMagic Lounge is sure to put up a great challenge to
coffee store chains scattered around the metropolis.Its great advantage is their healthy
menu offerings. Aside from its nutritious food, Fruit Magic Loungesets itself apart from its
competitors by having a show kitchen where customers can actually see how tselftheir
orders are being prepared.Fruit magic is also open for franchising, to continually promote
the total well being of people through well-beingprovisions of sound options to those who
are in search of a healthy lifestyle, and to develop generalpublic appreciation and
awareness for a fit and hehealthy way of living. D. Promotion M - Motivate customers to

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purchase products for fruit magic through promotions. A - Aim at the full satisfaction of
customers through each promotion that lately will gain customer loyalty. G - Generating
income through promotions that sooner will lead to satisfaction of both promotions
customer and the company. I - Innovate promotions into a higher level to surprise and
excite the customer. Making impact on consumers that will allow them to change
perception, conviction and preference. C - Create a climate or atmosphere that builds
customer relationships. Communicating Fruit Magic and its products through promotions
for its target customers and potential customers. 25
26. Promotion strategy will help this plan to create awareness for fruit magic and build a
profitablecustomer relationship. Fruit Magic JingleAs part of our promotion we prepare a
jingle that will entertain and relax fruit magic customers at thesame time. The main
purpose of this jingle is also to promote Fruit Magics product through a medley ofsong
that will surely leave an impression about Fruit Magic and its product. Its also a one way
ofintroducing fruit magics other products and telling to customers how fruit magics
product will affect customerstheir lives. Fruit Magic Melody By Fruitilicious Marketers It
makes me smile, not for a while. Cannot hide this feeling of mine A never ending happy
mood Cause with you, I feel so good What is that magic That tickles me in a click So
playfully, so playfully dancing in my wit Is that strawberry, that makes me go crazy Or
pineapple that gives me a smile in me How about banana and kiwi The mango,
watermelon and the raspberry A beautiful melody But wait theres more, more to look for
Yogurt, sandwiches and pizza galore What a healthy world, a healthy smile A healthy
friendship not for a while Is that strawberry, that makes me go crazy Or pineapple that
gives me a smile in me How about banana and kiwi The mango, w watermelon and the
raspberry Fruit Magic melody 26
27. Sales Promotions Promotion A Spin the Pizza Wheel 27
28. Poster 2 by 3 feet The Spinner 3 by 6 feetPrizes Offered 1GB Fruit and Pizza
Shaped Flash Disk 28
29. Fruit PadFruit Magics Limited Edition Mouse Pads Statement Shirts by Fruit Magic
29
30. Spin the Pizza Wheel Objectives Duration Coverage Prizes Offered Target
MarketBuild awareness and develop a March 1- -30,2011 All Fruit Magic There are a total
of Students and Youngsteady market for Fruit Magics Lounges 300 prizes to be
Professionalshealthy pizza. won.Generate customer interest to Prizes include:be
positively inclined towards 100 Flash diskspurchasing the healthy pizza valued at
P580over the regular ones. each.Increase the lounge visitors and 100 Fruitpad
valuedprovide excitement upon at P80 each.purchasing the healthy pizza. One Hundred
FruitBoost the market share and Magic Souvenir T-increase sales of the healthy Shirt
valued at P300pizza. each. Mechanics 1. To qualify for Spin the Pizza Wheel!, customers
must buy any variant of Fruit Magics Healthy Pizza (White Cheese Lite, Pepperoni,
Vegetables, Mexican, All Meat). 2. Upon purchase, customers will be given a one chance
spin. 3. The wheel has 14 pies. In each pizza pie, there are corresponding prices or
freebie. 4. If the selector arrow stops at the pizza pie with the corresponding prize, he will
get a chance to grab that specific item. If the selector arrow stops at the Spin Again pizza
pie, he will get another chance to spin. If the selector arrow stops at the pizza pie with
Outta Luck or Buy Again, it means that he lost in that spin. 30

31 31. Official rules1. Contest runs from March 1 to March 31, 2011.2. Customers will be
given a one chance to spin for one purchase of any healthy pizza.3. Prizes will be
automatically awarded upon spinning the winning panel.4. Prizes to be administered by
Fruit Magic. All of the above Prize details are subject to change without prior notice at
Best Buys sole discretion.5. Prizes are subject to the following restrictions: he A. Each
Prize is non-exchangeable, and not redeemable for cash; exchangeable, B. Each Prize
must be accepted as awarded. The Prize may not be sold, and no component thereof is
convertible to cash; and C. Fruit Magic reserves the right to substitute any of the Prizes
with a prize of equivalent retail any value in the event the Prizes are not reasonably
available at their discretion. Action Plan Date Tasks o Preparation of the materials
needed for the promotion. Find and order materials from the suppliers February 19, 2011
o Managers should orient the employees about the promotion anagers o Posting of
posters/tarpaulins to inform the customers about the incoming promotion o The
promotion will be announced in the Fruit Magic Facebook fan page Magics February 22,
2011 and other social networking site like Twitter Preparation of the materials needed for
the promotion February 24, 2011 All the materials must be on on-hand February 26, 2011
o Start of the Promotion o Employees must inform and encourage customers to purchase
a Healthy March 1, 2011 Pizza to get a one chance spin o Provide a record book
containing the name and e-mail address of mail 31
32 32. participants One week monitoring of the promotion to ensure the customers are
patroniz it and to prevent the occurrence of any problem during the patronizing March 210, 2011 promotion Survey must be conducted to determine the impact of the promo to
urvey March 11-23, 2011 customers Last week of the promotion March 24-31, 2011 A
meeting will be conducted for the evaluation of the promotion based on the facts gathered
from the customers.Budget Promotional Budget Raw Materials Quantity Unit Price Total
Price Plywood 6 PHP 910.00 PHP 5,460.00 Wood 2x3x8 10 PHP 120.00 PHP
1,200.00 Nails 2 kilos PHP 70.00 PHP 140.00 Paint 5 gallons PHP 400.00 PHP 2,000.00
Roller Brush 2 PHP 40.00 PHP 80.00 MAN POWER 2 PHP 200.00 PHP 400.00 Total
Budget PHP 9,280.00 Communication Budget Materials Quantity Unit Price Total Price 2
by 3 feet Poster 30 PHP 120.00 PHP 3,600.00 Prizes Offered Materials Quantity Unit
Price Total Price 1 GB Flash Disks 200 PHP 320.00 PHP 64,000.00 Fruit Pad 200 PHP
80.00 PHP 16,000.00 T-Shirt 300 PHP 80.00 PHP 24,000.00 Total Budget PHP 116,
880.00 32
33 33. Projected Sales 20 - Number of Respondents X 4 - Number of Lounges 80 - Total
Number of Respondents X PHP 256.6667 - Average Number of Pizza Prices PHP
20,533.336 X 4 - Number of Lounges PHP 82,133.344 X 2 - Average Number of Spin
PHP 164,226.688 - PHP 116,880.00 - Capital Budget PHP 47, 386.688 - Projected Sales
33
34 34. Promotion BApril Fruit Days Poster 2 by 3 feet 34
35 35. April Fruit Days Objectives Duration Coverage Prizes Offered Target MarketIncrease
sales by April 1-30,2011 30,2011 All Fruit Magic There are a Students and
Youngencouraging and enticing Lounges total of 300 Professionalsbuyers to join the
prizes to bepromotion. won. Prizes include: 100 Flash disks valued at P580 each. 100
Fruitpad valued at P80 each. One Hundred Fruit Magic Souvenir T- Shirt valued at P300
each. Mechanics1. The magician has to encourage the customers to purchase four (4)
large of shakes with any flavour by offering the fruits to the customers.2. The customers

36

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38
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40

will get a free small shake (worth 45php) with a flavour same with the fruits given by the
magician.3. Aside from the free small shake, prizes will be given such as designed
ballpen and pen pencils with erasers. 35
36. Action Plan Date Tasks March 21, 2011 Managers should orient the employees about
the promotion anagers o Promotion will be communicated to the customers March 25,
2011 o Posting of posters Preparation of the promotion, magician will be informed. And
the materials March 29, 2011 needed should be available o C Celebration of the April
Fruit Days o Start of the promotion o Employees should convince customers to
participate in the promotion April 1, 2011 o Magicians should also encourage customers
to purchase and participate at the same time entertain First monitoring of the promotion
and observation if customers are April 2-12, 2011 responding upon the promotion
Monitoring and observing the customers attitude and responses towards the April 13-19,
2011 promotion Monitoring the effects of the promotion on sales April 20-26, 2011
Evaluation of the promotion April 27-30, 2011Budget Promotional Budget Man Power
Quantity Fix Price Total Price Magician 4 PHP 15,000.00 per PHP 60,000.00 Give AWays Materials Quantity Unit Price Total Price Shakes 60 PHP 45.00 PHP 2,700.00 36
37. Ball pen 500 PHP 40.00 PHP 2 20,000.00 Total Budget PHP 4,700.00
Communication Materials Quantity Unit Price Total Price Posters 16 PHP 120.00 PHP
1,920.00 Total Budget PHP 90, 620.00Projected Sales PHP 90.1470588 - Average
Prices of Shakes (Large) X 4 - Number of Shakes to be Purchased PHP 360.588235 X
15 - Number of Response PHP 5,408.823525 X 8 - Repeat Response PHP 43270.5882
X 4 - Number of Lounges PHP 173,082.3528 - PHP 90,620.00 - Capital Budget PHP
82,462.3528 - Projected Sales 37
38. Promotion CFruitilicious Moment Poster 2 by 3 feet 38
39. Frutilicious Moments Objectives Duration Coverage Prizes Offered Target
MarketIncrease awareness on May 1 - 31, All fruit Magic 1st prize Family, Circle ofFruit
Magic and its 2011 Lounge and Php 7,000.00 friends, Lovers orproducts. Kiosk Couple
and others. 2nd prizePromoting Fruit Magic Php 5,000.00and its product to all ofits target
market as wellas to the potential 3rd pricecustomer that will result Php 3,000.00to
awareness and latelywill contribute to itssales.Creating lifetimememories of
loyalcustomers with the helpof Fruit Magic.Building and maintainingfriendship with
thecustomer by providingthem an unforgettableexperience throughbuying Fruit
Magicproducts. Mechanics 1. The promotion is open to all Fruit Magic customers. 2.
Participants must take photos including any Fruit Magic products at any Fruit Magic
Lounge and stall. Participants must have 2 t0 8 members 3. Images must show the
participants consuming any Fruit Magic products at any Fruit Magic stores. 39
40. 4. Photos will send their creative photos at chelsy@fruitmagic.com.ph. Photos must
have a brief . story about the picture. 5. Photos should contain your complete name,
address and contact no. 6. By uploading your photos, you acknowledge that Fruit Magic
will have the right, without restriction, to use, edit, reproduce, publish and distribute
photos submitted without payment of any compensation or consideration to any other
person or entity. 7. Contestants may only join the contest once. 8. Admin will choose the
best 10 photos. 9. From the best 10 photos the management will choose the best 3
photos and each will receive a cash price and a gift certificate worth of 1000. Prize range
1st prize Php 7,000.00 2nd prize php.5, 000.00 3rd prize Php.3, 000.00 10. Admin will
choose the winning photos based on the criteria. 11. Winners will be contacted to receive

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43

44

their prize and the winners will be posted in the fan page. Criteria for JudgingNo. of likes
20 %Creativity of the picture 30%Management Choice 50%Total = 100% Action
Plan Tasks Date April 17, 2011 Fruitilicious moment promotion will be communicated o
Posting of posters/tarpaulins to inform the customers about the incoming promotion o The
promotion will announce in the Fruit Magic Fan Page and other socail April 24, 2011
networking site like Twitter 40
41. o Start of the promotion o Employee should tell the promotion to the customers and
encourage them to participate May 1, 2011 o Participants can now submit their photo to
the management o First monitoring of the promotion to control the number of entries May
2, 2011 o Deadline of submission of entry May 18, 2011 o Admin will start to upload
Fruitilicious Moments that is passed for oments initial screening May 19, 2011 o Photos
will be released for community voting May 26, 2011 o Admin will choose the winning
photos based on the criteria. May 28, 2011 o Winners will be contacted and posted in the
fan page. May 30,2011 o Evaluation of the promotion through recognizing customers
responses toward the promotion. May 31,2011Budget Promotional Budget Prizes
Quantity Unit Price Total Price Cash PHP 15000.00 PHP 15,000.00 Gift certificates 3
PHP 1000.00 PHP 3000.00 Total Budget PHP 18,000.00 Communication Materials
Quantity Unit Price Total Price Posters 100 PHP 120.00 PHP 12,000.00 Total Budget
PHP 30,000.00 41
42. Projected Sales 15 - Number of Entries X 4 - Average Member of Group 60 - Total
Number of Participants X 58.333 - Average Price of Shakes PHP 3,499.98 X 65 Number of Lounges and Stalls PHP 227,498.7 - PHP 28,000.00 - Capital Budget PHP
199,498.7 - Projected Sales 42
43. Promotion D Treat on Receipt Treat on Receipt Objectives Duration Coverage Prizes
Offered Target MarketIncrease number of new June 1 to 30, All fruit Magic Rebates
worthbuyers. 2011 Lounge and of 5% Any fruit magic Kiosk customerIncrease sales
among Focus; youngproducts. professionals and studentsEntice buyers to comeback for
more. 43
44. Mechanicso For every Fruit Magic purchase worth Php500.00 for every single
purchase customers purchase, will get rebate on their next purchase that will worth of
PHP 200.00.o Present the coupon upon your next purchase. Official Ruleso Coupons are
valid until June 30, 2011.o Coupons can be redeemed at any Fruit Magic lounges and
stalls only within the prescribed time of the promo. Action Plan Date Tasks o Orientation
of promotion upon employees May 27,2011 o Promotion will be communicated to
customers by posting posters and announcements to networking sites o The promotion
will be announced in the Fruit Magic Fan Page and other social networking site like
Twitter. May 30,2011 o Management has to assure that all the materials needed are
available o Upon launching of the promotion,employees should continually inform
customers regarding the promotion June 1,2011 o First monitoring of the promotion to
ensure that things are June 12,2011 conforming to the plan o Monitoring of customers
response toward the promotion,different techniques shoul be done to measure customers
attitudes upon the June 13-19, 2011 promotion o Monitoring of the impact of the
promotion at sales of the stores June 20-26,2011 o Evaluation of the promotions to
determine the effectiveness of the June 27-30, 2011 promotion to awareness, customer
satisfacion and in sales 44

45 45. Budget Communication Materials Quantity Unit Price Total Price Posters 200 PHP
120.00 PHP 24,000.00 Total Budget PHP 24,000.00Projected Sales 1st Purchase 5 % of
PHP 500.00 X 15 - Average Estimated Number of Response Monthly PHP 7, 125 X 65 Number of Fruit Magic Lounges and Stalls PHP 435, 125.00 2nd Purchase 5 % of PHP
200.00 X 15 - Average Estimated Number of Response Monthly PHP 2,850.00 X 65 Number of Fruit Magic Lounges and Stalls PHP 185,250 185,250.00 45
46 46. PHP 648, 375.00 - Total of 1st and 2nd Purchase- PHP 24,000.00 - Promo Capital
PHP 624,375.00 - Projected Sales 46
47 47. Promotion EShake it! Take it! Poster 2 by 3 feet 47
48 48. Prizes Fruit Magic Umbrella Fruit Magic Jacket 48
49 49. Shake it! Take it! Objectives Duration Coverage Prizes Offered Target Market
Increase sales by July 1-31,2011 31,2011 All fruit Magicencouraging and enticing
Lounge and The following Any fruit magicbuyers to join the Kiosk are the prizes
customerpromotion. that will be given duringPromoting Fruit Magic this promotion Family,
Circle ofand its product to all of friends, Lovers orits target market as well Fruit Magic
Couple and others.as to the potential jacket andcustomer that will result umbrellato
awareness and latelywill contribute to itssales. Mechanics1. The customer must purchase
any fruit magic juice with a minimum of P150.002. The customer will first be asked and
informed about the promotion.3. The customer will shake the shaker after shaking; he
will pick one item/fruit and read the content. shaker,4. Items picked by customer that
have Fruit Magic logo entitles them to win the item, h ems hence, no logomeans they
lose. 49
50 50. Action Plan Date Tasks o Managers should orient the employees about the promotion
Managers June 20,2011 o Posting of posters/tarpaulins to inform the customers about
the incoming promotion. o The promotion will announce in the Fruit Magic Fan Page and
other socail June 25,2011 networking site like Twitter and Facebook. o Assuring that the
materials needed for the promotion are available. June 27,2011 o Beginning of the
promotion. Again, employees must inform the customers July 1,2011 about the
promotion. o One week monitoring of the promotion to ensure if the customers are July 29,2011 patronizing it. o Monitoring of the impact of the promotion at sales of the stores
July 10-24,2011 o Last week of the promotion and conducting an evaluation about the
July 25-31,2011 effectiveness of the promotion.Budget Promotional Budget Prizes
Quantity Unit Price Total Price Fruit magic jacket 300 PHP 800.00 PHP 240,000
240,000.00Fruit Magic Umbrella 300 PHP 120.00 PHP 36,000.00 Total Budget PHP
276,000.00 MATERIALS QUANTITY UNIT PRICE TOTAL PRICE Shaker 65 PHP3OO.00
PHP19,500.00 Special paper 5 PHP65.00 PH275.00 Total budget PHP19,275.00
Communication Materials Quantity Unit Price Total Price Posters 100 PHP 120.00 PHP
12,000.00 Total Budget PHP 307,275.00 50
51 51. Projected Sales PHP.150.00 X 15 - Number of responses PHP.2250.00 X 65 Number of Stores _________________ PHP.146,250.00 X 5 - (AVERAGE NO. OF
PICKS) _________________ PHP. 731,250.00 - PHP.307,255.00 -(CAPITAL BUDGET)
________________ PHP. 423,975.00 -(PROJECTED SALES) Promo Timeline Promo
Name March April May June July Spin the Pizza Wheel April Fruit Days Frutilicious
Moment Treat on Receipt Shake it! Take it! 51
52 52. Budget Summary Promo Name Budget Spin the Pizza Wheel PHP 116, 880.00 April
Fruit Days PHP 90, 620.00 Frutilicious Moment PHP 30,000.00 Treat on Receipt PHP

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24,000.00 Shake it! Take it! PHP 307,275.00 Over-all Promo Budget all PHP 568,775.00
Key Factors to Success o Ensuring that all the employees are aware of the promotions o
Assuring that advertisement and promotional materials are available o Ensuring
mechanics of the promotions are properly communicated through posters and Fruit
Magics Facebook account. VII. CommunicationPromotions will be communicated and
announced to customers through posters, print ads and othersocial networking sites. Fruit
magic will be communicated to the following places to create awarenessupon potential
customers. 52
53. National Capital Region Quezon City Source: 2010 Study conducted by the National
Statistic Office o Percentage of Employed Citizens of Quezon City 45% Working Non-working 65% 53
54. 65% of population of Quezon City is working while 45% of them are unemployed. o
Number of schools in Quezon City 20% Public School Private School 80%80% are public
schools while the remaining 20% are public schools situated in Quezon City 54
55. ManilaThe unemployment rate in Manila (zip 72442), AR, is 11.00%, with job growth
of -7.50%. Future job 7.50%.growth over the next ten years is predicted to be 14.00%.As
of 2008 there are 511 elementary schools and 220 secondary schools in the National
Capital Region.There are around 81 higher educational institutions VIII. Execution
Guidelines Planning (Before the Promotion) Planning in this process is inevitable;
planning serves as a guide to management and to enables the management; A. Obtain
and commit resources required to each projects. B. Members of the organization carry on
the activities consistent with the chosen objectives and procedures. C. Progress toward
objective is monitored and measured toward so that corrective toward action can be
taken if progress is unsatisfactory. D. One or two weeks before the launching, promotion
will be communicated to customers to ensure that the customers will be aware of the
promotion. 55
56. E. Managers are responsible of communicating the promotion to the entire work force
communicating and educating them the entire promotion and its objectives. Always keep
in mind the 4Ps of the Fruit Magic strategy. The following questions should be included in
the communication of promos to the entire workforce: What will be done? This question
includes the kind of promotion and the benefits that the customers can get out of the
promotion. Why will it be done? This includes communicating the objectives of the
promotions included in this plan. How will it be done? This question refers to the
mechanics of each promotion on how it will work. When it will be done? This refers to the
durations of the promotions. Where it will be done? The place that will be involve in
undertaking the promotion. Who will do it? This refers to the person/s that will be involved
and responsible to the entire promotion. Execution (During the Promotion) At the day of
the promotion employee should inform the customer and communicating the promotion
and the benefits that they ca get. can Employee should also encourage the customers to
join and participate at the promotion. Check stock: Rechecking of the availability of the
materials needed. Managers should always monitor the promotion to make sure that that
everything and everyone is under control and ensuring the success of each promotion. s
56
57. Evaluation (After the Promotion) At the end of the promotion, evaluation should be
done to determine if the promotion is successful or not, if it is motivating to customers, to
spot areas that should be improved that will be useful to latter promotion, to reduce

errors, defects and waste. Use finding; derived findings will be useful for cycle of
improvement. What if scenarios" It is the managers task to identify which course of
action in a particular situation, under particular particular circumstances, and a particular
time, best contribute to the attainment of the management goals. o Understanding and
analyzing the existing situation, and determining its cause. o Deeper planning and
establishing methods or suitable course of action for dealing with the existing situation. o
Choosing the best course of action and implement it to deal with the existing situation. o
Determining the response of the situation to the applied course of action or solution
through regu monitoring and observation. regularIX. ACTION PROGRAMS T - Total
involvement The implementation of the programs or projects begins with the total
involvement of the CEO, top management as well as the entire work force to ensure the
success. Management must practice the philosophy of Management by Wandering
(MBWA) to monitor the implementation of each programs and projects. Management
must ensure right timing to implement projects and programs. Management must
continually find projects for continuous improvements that will attribute to the success of
the company. 57
58 58. A - All channels of communication must be open to ensure knowledge, understanding
and consistent application of every guidelines of each projects and programs. M - Making
decisions in line with Fruit Magics mission and vision and the objectives of with this plan
and the company. A - Aid Fruit Magic has to develop operational plans that will provide
details needed to incorporate strategy into day tegy day-to-day operations.X. BUDGET
SUMMARY Budget Allotment for Promos t Promo Name Budget Spin the Pizza Wheel
PHP 68,500.00 April Fruit Days PHP 81,000.00 Frutilicious Moment PHP 72,000.00 Treat
on Receipt PHP 1,440.00 Shake it! Take it! PHP 300,600.00 Over-all Promo Budget all
PHP 523,540.00 Budget allotment for communication Communication Materials Quantity
Unit Price Total Price Posters 600 PHP 120.00 PHP 72,000.00 Flyers 3000 PHP0.65
PHP1950.00 Total Budget PHP PH 73,950.00 OVER ALL BUDGET PHP 597,490.00 58
59 59. XI. ControlsThis is the process we yearn that company must adhere to and make a
long term practice: long-term OBJECTIVES CONFORM CONTROL BODIES CONTROL
TOOLS COMPARE RESULTS CORRECTION AND ALTERATION CREATE FASTER C
YCLE 59
60 60. CREATE BETTER QUALITY CREATE/ADD VALUE COPE WITH THE CHANGEThe
Magic of 9 Cs Conform Ensuring that actual activities conform to planned activities
before the start of development phase. Control Bodies Business is all about people and
thats why initially people have to control other peop people. The managers should
exercise their different powers to keep everyone on process. They must provide customer
driven quality, helping organizations relationship with customer build trust, confidence
and loyalty. Managers must include improvement as part of all work units. Fruit Magic
needed to develop and designs strategies for changing growing demand for consumers.
Participative Management is necessary to facilitate delegation and encourage employee
to work together as a team. Control Tools Obtaining customer response or feed back for
performance standards and to discover customer dissatisfaction, discover relative
priorities of quality, and identify customer needs through social networking sites,
comment cards and hotlines. Compare results against standards This involves comparing
of the results of the projects against the standards or objectives of this plan and to plan
projects itself. This will identify errors to plan projects. 60

61 61. Correction and alteration This will offer corrections and suggestions of areas needed
to improve to avoid llreoccurrence of the problem. This will also suggest if the objective of
the projects are inneed of alteration.Create Faster CycleFruit Magic has to recognizing
customers demand for improved design, quality or fordelivery time.Create Better
QualityEnsuring that Fruit Magic delivers great tasting products that will result to a
betterprofitable customer relationship.Create/Add ValueEnsuring that values are added to
products or services, so that customer will buy it in services,preference to competitors
offering.Cope with the ChangeChange is inevitable part of any organizations
environment. The control function aidsthe management in responding to resulting threats
or opportunities by helpingmanagers or organization detect changes that are affecting
their products and services.

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