Parle Agros (Frooti)

RIMS INTERNATIONAL SCHOOL OF BUSINESS & TECHNOLOGY PROJECT GUIDE: PROF. MRS PRIYA CHOWDHURY

December 16, 2010

SUBJECT NAME
MARKETING.

PRESENTED BY:
KEYUR.P.DESAI

BBA FIRST YEAR

HIGHER NATIONAL CERTIFICATE

ASSIGNMENT GUIDELINES 1. This Assignment is designed to help you achieve a Merit or Distinction. 2. During your Structured Individual Study (SIS), you are required to answer each question above (Outcomes Assessment Criteria) which has been covered separately in respective Lessons. 3. In your answer, write about the key concepts highlighted by the Lesson (underpinning knowledge). 4. You can get an idea of the key concepts by referring to the Lessons handout, in the Overview section of the Lesson. 5. Look for real-life examples to apply your key concepts (applied knowledge). 6. Make use of the SIS time to research books. 7. During your SIS time, use the computer to research recommended websites and word process your Assignment. 8. Follow the guidelines given in your Handbook. 9. Study the Merit and Distinction Descriptors below to ensure that your work demonstrates compliance in order for it to be considered for their respective Awards. It is important that the work you produce is carefully planned & written. Your work should demonstrate (a) your understanding of the theory you have learned (underpinning knowledge) and (b) your ability to apply it to real life/contemporary situations/case study (applied knowledge). Please follow the instructions below: 1. Start each answer from a new page 2. Highlight each question clearly 3. Avoid bullet points and restrict the use of numberings; remember that you are supposed to write an essay. 4. All work should be comprehensively referenced and all sources must be acknowledged fully, this includes books & journals used as well websites visited. Details such as page numbers, publishers and publication year should also be stated, in addition to the name of the author(s) and publication. Books, articles and journals should be the main sources; net sources are allowed up to 25% max. 5. Follow Harvard referencing system. 6. Ensure that your work is within the stated word limit. 7. All work should be word-processed. 8. Pages should be numbered (bottom right hand corner) 9. Assignment sheet should be attached in the front. 10.Spell checks the document and read thoroughly for grammatical errors. 11.1.5-line spacing is preferred but is not essential. 12.Bibliography at the end of the assignment. The correct format to answer each question (Task) is as follows: 1. Introduction (analyse the question which theory is it trying to ask you to demonstrate?) 2. Underpinning Knowledge (write about the relevant theory/points) 3. Applied Knowledge (apply the theory/points you have written about in your underpinning knowledge to your case study/real life example) 4. Conclusion (summaries what you have written in 2 & 3 above).

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UNIT LECTURER HAND OUT DATE STUDENT

Unit 1 Marketing Mrs. Priya Chowdhury 15.10.10

VERIFIER SUBMISSION DATE TERM

Course HNC Ms. Reena Clifton 29.11.10 Dec10

Assignment cover Sheet GRADE DESCRIPTORS

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PASS DESCRIPTORS (F RO M O utc ome s Asse ssme nt C ri te ri a) Investigate the concept and process of marketing

L e arne r s Evid e nce Sho ws

Tut o r to Che c k

COM M EN TS/ FEEDB AC K

compare alternative definitions of marketing Identify the main characteristics of a marketing oriented organisation explain the various elements of the marketing concept

Explore the concepts of segmentation, targeting and positioning

Identify and explain macro and micro environmental factors which influence marketing decisions Outline the factors which influence the choice of targeting strategy explain how buyer behaviour affects marketing activities in two different buying situations

Identify and analyse the individual elements of the extended marketing mix

describe how products are developed to sustain competitive advantage Explain how distribution is arranged to provide customer convenience explain how prices are set to reflect an organisations objectives and market conditions Illustrate how promotional activity is integrated to achieve marketing objectives

Apply the extended marketing mix to different marketing segments and contexts

recommend marketing mixes for two different segments in consumer markets explain the differences in marketing products and services to organisations rather than consumers explain how and why international

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DISTINCTION DESCRIPTORS Use critical reflection to evaluate own work and justify valid conclusions

L e arne r s Evid e nce Sho ws Synthesis has been used to generate and justify valid conclusions The validity of results has been judged Self criticism of approach has taken place Evaluation has taken place using defined criteria Realistic improvements have been proposed against characteristics for success Autonomy/independence demonstrated Substantial activities/projects have been planned, managed and organized The unforeseen have been accommodated The importance of interdependence has been recognized Ideas generated and decisions taken Self evaluation has taken place Convergent and lateral thinking have been applied Problems have been solved Capacity for innovation and creative thought has been used Receptiveness to new ideas have been demonstrated Unfamiliar contexts have been applied

COMMENTS/FEEDBACK

Take responsibility for managing and organizing activities

3 Demonstrate convergent, lateral and creative thinking Any Other Comments

Grade Given by Tutor: Pass Merit Distinction IV Grading Check: Agree Disagree Tutor Signature:Date: .

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MODIFY GRADE TO Students Response:

IV Signature: Date: ..

Student Signature:

Date:

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School of Business Management Marketing

Course Unit Lecturer Student

BTEC Higher Nationals HNC Business Studies Unit 1: Marketing Individual Assessment Ms. Ronak Khan
Name

Issue Date: 15.10.10

Due Date: 29.11.10

Student No.

Instructions -You are required to produce an academic report of 3000 words (+/- 10%) covering all the questions given below. -You are required to reference sources with Harvard Referencing Style. -The colleges regulations concerning cheating, collusion and plagiarism apply to this assessment. Assignment In a growing number of organisations, marketing is now viewed as a source of competitive advantage; thus greatly contributes to the success of the organisation. Choose an organisation that you are familiar with and answer the following questions: 1. Investigate the concept and process of marketing in your chosen organisation. 2. How does your chosen organisation pursue the Segmentation, Targeting and Positioning activities to serve customers needs? 3. Identify and analyse the individual elements of the extended marketing mix, applied in your chosen organisation. 4. Apply the extended marketing mix to different marketing segments and contexts (specially International Markets) 5. Provide any recommendations.

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Table of Contents:I II III 1 2 2.1 2.2 2.3 2.4 2.5 2.6 Executive Summary Introduction about the company Flagship product Frooti Part 1 Investigate the concept and process of marketing in you chosen organisation? Part 2 How does your chosen organisation pursue Segmentation, Targeting and Positioning activities to serve customers needs? What is Segmentation? Frootis Segmentation? What is Targeting? Frootis targeting strategies? What is Positioning? Parle Agros Frootis Positioning? Part 3 3 4 Identify and analyze the individual elements marketing mix, applied in 30 your chosen organisation? Part 4 Apply the extended marketing mix to different marketing segments and 37 contexts (specially International Markets) Part 5 5 IV V Please provide Recommendations for Frooti? Conclusion Bibliography 40 41 42 9 10 11 12 16 18 18 20 21 22 23

List of Diagrams and figures

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1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 3.1 3.2 3.3 3.4 3.5 4.1 4.2

The logo of Parle Agro The original variant of Frooti The different kinds of Frooti family. Demonstrates the different kinds of variants of Frooti. The chart of market orientated strategy. The SWOT Analysis of Frooti. The companys macro environment of Frooti The table of different ways of segmenting. The Frootis dimensions of Segmentation. The pie chart of Primary market elements of Frooti in B2C segment. The pie chart of Secondary market elements of Frooti in B2B segment. The Positioning of Frooti brand. Demonstrate the diagram of value analysis. Illustrate the overall model of consumer behaviour. Explains the factors that affect the business buying behaviour. The factor affecting the two different buying situations. Demonstrates Ansoffs Matrix of Frooti The market mapping chart Different types of marketing mix. Frootis Product hierarchy. Prove the pull strategy used by Frooti. The different pricing strategies of Frooti. The Distribution channel of Frooti. The annual growth rate of Africa. Shows the 7Ps of Frooti in Africa.

10 11 11 13 14 16 17 18 19 21 22 23 24 26 26 27 28 29 30 31 32 33 34 38 39

Executive Summary:Marketing is a best known word in business language. It is a dimension for every business to achieve their goal. Peter Drucker genero: interactive marketing & technology, 2007 wrote that, because the purpose of business is to create RISBT, MUMBAI, INDIA KEYUR DESAI Page 10

customer, the business enterprise has two- and only two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are cost. Marketing is the distinguishing, unique function of the business. This report explains about Parle Agros Frooti, their strategies, how they do their marketing orientation, marketing research, their market segmentation, targeting and their positioning and how do they build their extended marketing mix in the current country and internationally. The outcome of this report will help the author to examine the role and practice of marketing within the changing business environment with a concise and contemporary overview of marketing and the skills to underpin further study in the specialist field of marketing.

INTRODUCTION ABOUT THE COMPANY. Parle Agro Pvt, Ltd. Manufactures, distributes, sells and exports fruit drinks in India and internationally. It offers fruit and milk drinks, packaged water, apple and mango drinks in polyethylene terephthalate (PET) bottles and containers and tetra packs. The Parle Agro, a large food and beverage

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organisation based in Mumbai, consistently aims at evolving and sustaining an iconic profile for beverage packaged water and confectionery products.

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

Parle Agro Private Ltd is looking at product expansion in its various business segments to sustain growth in a sluggish market. In the fruit drink segment where Parle Agro has hugely popular product Mango Frooti, it is planning to get into orange and pineapple under the same brand of Frooti. At the same time, it has also embarked on stretching the franchise of its existing brands- Frooti, Appy and Bailey Mineral water. It knows the market and has sustained its brand in spite of the huge unorganized segment. At the moment, its only advantage is its distribution strength.

The Flagship product Frooti The fresh n juicy Frooti brand, is dominating the packaged fruit based drinks category since its launch in 1985. Frooti Mango, which has 75% market share in tetra packs, grew by a modest 4% in 2001 according to ORG- Marg data. Larger pack (1Liter) and more pure juices (such as orange and pineapple) would soon appear under the Frooti brand, taking on the existing competitors in these flavours and sizes brands such as Tropicana, Real and Onjus RISBT, MUMBAI, INDIA KEYUR DESAI Page 12

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

Frooti has always been positioned as a drink for kids but now the company has position it as a drink for the youth, especially, the college going teenagers. Parle Agros has an enormous distribution reach of 10 lakhs outlets, including leading hotels and restaurant, eateries, super- markets and paan shops. Meanwhile, Parle Agro is planning to tap the rural market. With its strongest brand Frooti. There are plans to set up a separate distribution in the product itself. It is learnt that the company is also set to launch some niche products.

Figure 1.3 The family. (www.clickindia.com)

Different Kinds of Frooti

1. Investigate the concept and process of marketing in you chosen organisation? Marketing in itself is a complex exercise which works with and against a number of forces. Successful marketing strategies create a desire for a product. There are set of different definitions of marketing which the organisation seems to take into consideration while approaching the markets.

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Parle seems to insist on combining business with innovation. Peter Drucker genero: interactive marketing & technology, 2007 wrote that, because the purpose of business is to create customer, the business enterprise has two- and only two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are cost. Marketing is the distinguishing, unique function of the business. Philip Kotler defines marketing as, satisfying needs and wants through an exchange process. (Sources from definition of marketing: marketing definition and marketing concept, from http://www.learnmarketing.net/marketing.htm). Here Kotler is trying to say that within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being satisfied; clearly the greater the benefit provided the higher transactional value an organisation can charge. Marketing action at Parle management captures the essence of the marketing concept in being responsive to customer and their needs but it cannot be happen unless knowledge about customer will be enough to meet their expectancies. Marketing at Parle seems to concentrates on marketing mix, which are product, price, place and promotion. Marketing management consists of five tasks. It starts from identifying target markets the management need to identify those customers that they want to make exchange with. Then there is reliance on marketing research management has to collect information on current and potential customers needs.

From here starts the Product development the company need to develop the product that will meet customers needs and expectations. The decisions regarding marketing mix management have to determine price, promotion and

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distribution for the product. Final step is monitoring build relationship with customers and collect information about changing customers needs and expectations (marketing management and strategy, Prentice Hall). Doyle P., Stern P., (2006)
Figure 1.4 Demonstrates The Different Kinds of Variants of Frooti. (www.adleanwar.com)

As Baker said, marketers have experimented with different combination of product, pricing, promotion and distribution. Parle has moved beyond the traditional 4Ps of marketing. In 1950s E. Jerome McCarthy developed the four Ps, which has become the most enduring framework of the marketing mix. He grouped 12 Bordens elements into price, product, promotion and placement (also known as place for distribution). Leadley P., Forsyth P., (2004), marketing: Essential principles, New Realities. Parle Agro has seen a trend towards fruit- based products. Also the most important strategy that Frooti adopts is a market orientated approach which has helped them survive in competitive environment for a very long time.

A marketing orientated approach means a business reacts to what customers want. The decisions taken are based around information about customers needs and wants, rather than what the business thinks is right for the customer. Whereas product orientated approach means the business develops products based on what it is good at making or doing, rather than what a customer wants.

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This approach is usually criticized because it often leads to unsuccessful products - particularly in well-established markets. Definition of market orientated approach (2008) [online] (updated on 10th November 2008) (http://tutor2u.net/business/gcse/marketing_orientation.htm) [Accessed on 8th November 2010]

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

Critical Analysis:Parle Agro Pvt ltd has emerged as successful market orientated company over the years and it has helped them to bring no. 1 fruit based product (Frooti) (source available at: www.parleagro.com [online] (copyright 2009-2010) (Accessed on 8th December 2010) in the choices of consumer minds (preferred by the consumer). They should start manufacturing Tetra packs within their manufacturing base rather outsourcing them to other suppliers or like when deciding upon a new product innovation (like Frooti with pineapple flavour). The reason being that, firstly there will be cost reduction for the firm because as Parle Agros Frooti going to make the Tetra packs within their manufacturing base, then cost paying to the suppliers will deducted and it will lead to better financial position of the business. The other reason of manufacturing tetra packs within their manufacturing base is because quality check will be done within the organisation rather than sending an employee to the suppliers place for the quality check, which thus also leads to RISBT, MUMBAI, INDIA KEYUR DESAI Page 16

less time consuming of checking the quality of the product. As Parle Agros Frooti has shifted to JIT technique of production it will be better for the Parle Agros Frooti to reorder the stock of tetra packs, if they setup the manufacturing process of Tetra packaging within their base, which will lead to better Delivery time of the product.

2. How does your chosen organisation pursue Segmentation, Targeting and Positioning activities to serve customers needs? The market environment is a marketing term and refers to all of the forces outside of marketing that affect marketing managements ability to build and maintain successful relationships with target customers. The market environment consists of both the macroenvironment and the microenvironment. Marketing environment are the factors and forces outside marketing that affect marketing managements ability to develop and maintain successful relationship with its target customers. Taking into consideration the micro RISBT, MUMBAI, INDIA KEYUR DESAI Page 17

environment it is the companys internal environment factors which influences marketing decision of the company. They are as follow: - Suppliers, market intermediaries, customers and competitors. STRENGTH 1) The product along with its tetra packaging gives the juice nutritious dimension as well as caters to the climatic variations across the logistic network across the country. 2) It is its packaging (tetra packs) which has given Frooti an edge over the competitors products. WEAKNESS 1) Market Competitive and local variants in the market. 2) Non uniform price structure across the country. OPPORUNITIES 1) Can enter a market with different flavours under the same brand name. THREATS 1) Competitors products are widely available across the country. 2) Marketing and advertising cost is also rising which making difficult for Frooti to get eye catching consumers. 3) Competition with MNC is causing Frooti not be a brand leader.

2) Can enter a global market with a good 3) The demand for reputation. local raw material is subject to 3) Have the fluctuate which in opportunity to turn leads to collaborate with variations of quality foreign brands in input. order to obtain a larger customer share.

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

The macro environment is totally in contrast with micro environment, they are the company external factors which influence the marketing decision of the company. Here is an example given in the diagram which tells us that which is the external factors and the internal factors which influences the decision making of the Parle Agros Frooti.

Figure 2.2 The Companys Macro Environment of Frooti (Field research)

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2.1 What is Segmentation? A market segment is when a market is divided into sub-groups of potential or actual customers who share similar needs/wants, characteristics, or buying behaviour. These sub-groups are not divided by the supplier/ marketer, instead they already exist. They just need to be recognized and differentiated. When such groups are identified by suppliers and are marketed by different products and services, it is known as market segmentation. There are many bases on which a market could be segmented. Such as: Geographic segmentation While providing the customers with a service, it is important that the customers are at present or around the delivery point in order to receive the service. Demographic segmentation While segmenting a market demographically, on the bases of Age, Gender, Family size, Occupation, Education, Religion, Income, Social class. Psychographic segmentation On the basis of the lifestyle, personality characteristics and social class factors taking into consideration. Behavioural segmentation It is based on the usage rate and loyalty of the customers

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

2.2 Frootis Segmentation? There has been no general acceptance of the product forms in fruit beverage market. The consumer is basically concerned if it is a fruit juice or synthetically constituted product. Product segmentation, therefore, should be clearly delimited. The entire segmentation exercise for Frooti product is indeed driven by these variables. Under the fruit drink the first segmentation is between real fruit and synthetic drinks. The real fruit drinks are based on natural fruit pulp or juice whereas the synthetic drinks are synthetic products with fruit or other flavours.

Figure 2.4 The Frootis Dimensions of Segmentation. (Field research)

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A broad taste preference seems to be another way to define market. The market is at present also segmented on the basis of fruit pulp content. For the purpose of segmentation, on the basis of fruit pulp content, market can be segmented as comprising Fruit juice with pulp content more than 80%. Another segment can Fruit nectar with pulp content between 40% to *0%. Third section comprises fruit drinks with pulp content less than 40%.Segmentation at Parle seems to be influenced by benefits provided to the consumer. One benefit could be the nutrition content it gives to the consumer so one market could be the 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 is based on the type of situation in which the drink or nectar is used. People who are on the move i.e. outdoor use e.g. those travelling.

People who are using it on the breakfast table as a part of their menu i.e. in house use. Demographic is another way to segment the existing and future markets for Frooti. The brands consumer section is broadly divided into two segments primary segment, consisting of children in the age group of 4-12 years and secondary segment, consisting of all adults who love fruit based non carbonated drinks. Psychographic division might have also been considered. The youth segment was targeted with sub- segment Pre-teens (9-12), Teenagers (12-15), above teenagers (16-19). These are new impulse category. 2.3 What is Targeting? When a firm finishes segmenting a market, they get many opportunities from which the firm has to decide which segments it can serve the best and are the most profitable. Thus, market targeting is when the firm decides to choose a set of buyers who demand for a similar product.

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Once the market has been segmented and well identified, Parle Agro Frootis brand should check if they will be beneficial to serve the selected segment or not. The DAMP methods (discernible, accessible, measurable, and profitable) are used to benchmark the capability of the target market. (Strategic management book second edition by Alex Miller and Gregory G. Dess) Discernible how to differentiate the selected segment from other segments. Accessible how can a segment be accessed through market communication. Measurable will the segment be quantified and the size of the segment determined. Profitable will the serving of that segment be profitable.

2.4 Frootis targeting strategies? Target market for Frooti constitutes the Recreational purpose, fitness; Health; Lifestyle and Sports. The Primary market comprise the kids Fond of fruit juice; Teens more experimental; youth- experimental and more buying power; Working people; Housewives; and the elderly people. Whereas the secondary market revolves around Travel industry- Airlines, Railways and local transport systems; Recreational places like- Movie theatre, Malls etc. Below are the two Pie chart diagrams both of Primary market and as well as the secondary market respectively, which will helps us draw a proper conclusion on how Parle Agro Pvt ltds Frooti brand does.

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

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

2.5 What is Positioning? Kotler (2008) says the way a product is defined by consumers on important attributes the place the product occupies in consumers minds relative to competing products is known as the products positioning. In marketing, Positioning has come to mean the process by which marketers try to create an image or in the minds of their target market for its product, brand or organisation. Products are created in the factory, but brands are created in the mind. This is said by a positioning expert. The statements mentioned above explains that while positioning your product, Parle Agros Frooti brand must focus on the way the customers are likely to think about the product.

2.6 Parle Agros Frootis Positioning? Frootis positioning relates to how its service is positioned in its consumers minds. So therefore Frooti Ads are no longer just to create buzz, they are created keeping in mind a long term brand vision. Al Ries and Jack Trout consistently observe that Positioning is what you do the mind of the consumer. (Positioning: the battle for your mind New York: McGraw- Hill, 1981). As such positioning exercise intends to create awareness 35% regarding what does Frooti as mango drink, mean to the consumer and how is it different from that of competitors. It seeks to strengthen own current position and grab an unoccupied position between fruit juice and their hygienic availability. Packaging Frooti in tetra pack, which retains the freshness and nutritious value intact.
Figure 2.7 The Positioning of Frooti brand. (Field research)

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20%

The other way Parle Agros Frootis brand can position their product is by the value analysis. There are 3 factors which needs to be considered in preparing value analysis by Parle Agros Frooti brand they are as follows:1. Appearance (aesthetics). 2. Performance (function). 3. Economy of manufacture. Appearance (aesthetics)

Performance (function)

Economy manufacture

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

The appearance aspect is very important for Frooti as they are into the manufacturing industry and because of the first impression is the last impression it becomes vital for them to have a luxurious appearance of their Products in order to create a lavish impact. Along with the Appearance, the economy of manufacture is important to Frooti as brand because it will help to them to know the taste of the product, raw material

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(Component) are good or not because if its improper than it will affect the brand of the product.

Philip Kotler (1965) in a book of marketing insights states that Consumer behaviour refers to the mental emotional process and the observable behaviour of consumers during search, purchasing and post consumption of a product or services. This means that the consumer behaviour studies include how people buy, what they buy, when they buy, why they buy and what is their reaction after the product is being purchased. It also takes into the account the essential elements like psychology, sociology, anthropology and economics. The factors that affect the consumer buying behaviour are as follows. 1. Geographic factors (These Geographic factors might include different regions of the country) Parle Agro needs to keep in mind the different types of consumers taste and fashion, so therefore needs to keep a track of different types of taste and the purchasing habit in the different states of the country. 2. Demographic factors (These factors include Age, Gender, Family size, Religion, Income, social class). This one of the factors that majorly affects Parle Agros Frooti because firstly there is a change in the consumer buying habit i.e. taste, fashion and the disposable income of the person which is making consumers opt for the another product. Therefore in order overcome the problem as stated above Parle Agro should continuously be in touch with customers so that they can keep a track on the trends in the market. Also the other reason which is affecting is that, in some state of the country like Madhya Pradesh, Jammu & Kashmir etc has seen a trend in an Ageing Population of above 60% which affecting Frooti therefore Frooti should come out with newer variants so that it suits that can kind of Population like Health conscious products, sugar free content for diabetic patients, multi grain flavour and even vitamin flavour which will suit the older people. RISBT, MUMBAI, INDIA KEYUR DESAI Page 24

Figure 2.9 Illustrate The Overall Model of Consumer Behaviour.

Business buying behaviour is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. Organizations could be corporate, manufacturing firms, Service firms, Institutional & Government markets.
Figure 2.10 Explain The Factors That Affect Business Buying Behaviour.

The factors which affect business buying behaviour are as follows:1) Interest rates: - This is one of the factors which have affect Parle Agros Frooti over the years. The reason why interest rate is affecting is because it is making difficult for Parle Agro to buy their raw materials from their suppliers.

2) Competitive developments: - Competitors in fruit juiced segment has emerged successful in competing with other existing brands. Like for example the main competitor of Frooti are Real juice and Tropicana which have kept Frooti on it toes for a quiet a few years. Therefore in order to eliminate or to be in the line with a competitor Frooti needs to constantly review their marketing strategies and comes with newer variants or increase their market share so that Frooti remains competitive with other competitors. The other factors that affect the overall consumer and business buying behaviour are as follows:-

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Factor Demand Customer

Consumer buying behaviour Direct demand from consumer, for Frooti Buyer and user are same i.e. target consumer for Frooti like teenagers, youth and kids. General, as in what the Frooti manufactures for the consumers. Only for consumer durables goods for my product Frooti. Mainly based on image of the retailer stocks up the product (Frooti). Low Elastic Consumer are often price sensitive so low prices Long with middle men

Business buying behaviour Derived or a joint demand Not the same as the target consumer for example here the consumers for Frooti will be other major Fruit juices industries. Customer specifications i.e. as per the requirements of other major fruit juices industries. Critical and included in buying specifications Based more on the performances of the product (Frooti). High Inelastic Competitive bidding takes place Short and direct

Specifications

Services support

Customer characteristic

Quantity purchased Demand Pricing Intermediaries

Figure 2.11The Factors Affecting the Two Different Buying Situations

Critical Analysis: - Parle Agros Frooti has reached its objectives of STP in urban areas of the country; as a result the STP of Frooti has been stagnated for past few years. However according to the author, Frooti should revise their STP and tap a totally different segment that is Rural Areas and bring some innovation in the approach of marketing by adopting Ansoffs matrix for their market development strategy where they will come to know potential growth strategies. Keeping in mind, that people in rural area are very sensitive in tasting; pricing the product so therefore Frooti should have a proper market research report in place, to know what demand for their product is.

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

Newer variants for ageing population like Sugar free juice

Tapping the rural market as a new segment.

Amalgamation in B2B sector

Figure 2.12 Demonstrates Ansoffs Matrix of Frooti

Parle Agro should revise their segmentation, targeting, and positioning in order to be the market leader they need to tap this market. For example their segmentation in the rural areas (developing cities or areas in the country) might be geographic segmentation because this will make consumers aware that Frooti as a product is existing in the market. And for this to be done Parle Agros Frooti should be present at the delivery point where customers frequently visit.

Whereas their Targeting strategies might be mostly, targeting health conscious segment as well as the primary market which consists of underprivileged students and the working people (farmers). However they should try to do innovative styles of packaging which will catch the eyes of the consumers with promotional schemes like Buy 1 gets 1 free etc. Therefore Parle Agro should keep in mind that, as first impression is the last impression RISBT, MUMBAI, INDIA High Price KEYUR DESAI Page 27

they should try to fulfil all the needs and wants which are demanded by the consumers. Appy Fizz Standard image Frooti Low Price
Figure 2.13 The Market Mapping Chart.

Real Juice Healthy image

Onjus

Then comes the positioning factor for Parle Agros Frooti where in rural areas it should be position on the basis Appearance, Performance, Economy of Manufacture. Therefore Parle Agro should position their product in such a way that whenever consumers demand for a fruit drink, then preference of choice should Frooti rather than the competitors products like Real juice, Onjus etc. The other way positioning the Frooti in Rural areas is by adopting product positioning chart where it describes how new brands will relate to the other competing brands, for which Parle Agros Frooti should adopt market mapping chart.

3. Identify and analyze the individual elements marketing mix, applied in your chosen organisation? The extended marketing mix includes seven main factors to take into consideration in order to satisfy the customers needs profitably. These factors are:
Figure 3.1 Different Types of Marketing Mix.

The Frootis extended marketing mix strategy:RISBT, MUMBAI, INDIA KEYUR DESAI Page 28

Product:Kotler , the marketing guru clearly observes that in order to be market leader, watch the product life cycle; but more important, watch the market life cycle. Kotler (2004) suggested that a product should be viewed in three levels: Level 1: Core Product. What is the core benefit your product offers? Customers who purchase a Frooti tetra pack are indeed purchasing more than just that. They are buying health. Level 2 Actual Product: it promise health drink and as well thirst quenching product for the customers. The aim is to ensure that adding features and benefits to ensure that their product offers a differential advantage from their competitors. Level 3: Augmented product: What additional non-tangible benefits can you offer? Competition at this level is based around after sales experience, delivery and so on. Augmented Product Delivery and credit to Wholesalers and retailers in stocking their product. Or else Frooti should come out with soft toys for small kids like batman, Barbie when purchasing Frooti etc. Actual Product Tetra Packaging Brand name Frooti Core Product Frooti is a healthy product. Nutrition Fruit mango and pulp of mango Design PET bottles and different kinds tetra packaging like triangles

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

Figure 3.2 Frootis Product Hierarchy. (Field research)

Package:-

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Parle treats packaging as an element of product strategy. The obvious advantage in case of Frooti as product offering is its tetra packaging which retains and sustains the freshness and nutrition of the contents .Rising consumer affluence means that consumers are willing to pay a little more for the convenience, appearance, dependability, and prestige of better packages(7Psextended marketing mix, retrieved march 6th from http://www.12manage.com) Frooti since its commercial launch continues to reap the advantages of tetra packaging for preserving the nutrition .The mass packaging is supported by PET packaging. Promotion mix:Modern marketing of Frooti is more than just developing a good health product, pricing it attractively, and making it available to target customers is equally significant. Parle agro consistently communicates with its customers. Parle uses a specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objective. Therefore it will help them to obtain higher market share as well it will them to enter a totally different market with different customers and also it will them create brand image worldwide which are its marketing objective. Communication tools Advertising Advertising has so permeated everyday life that individuals can expect to be exposed to more than 1,200 different messages each day (Advertising: Definition, 2007). Frooti is extensively using above the line promotion like TV, Magazines, Internet etc for which Frooti has gain a larger customer base and as well as remind the existing customer to repurchase the product. Frooti are using pull strategy for which their consumers are willing to buy their product.
Figure 3.3 Prove the Pull Strategy Used By Frooti. (www.marcleshay.com)

PULL STRATEGY OF FROOTI USED IN THEIR PROMOTION. RISBT, MUMBAI, INDIA AD Campaign KEYUR DESAI Page 30

Demand

Price:The Frooti has taken these factors into consideration when deciding a price. These are as follows: cost of production, competitive conditions in the market, competitors prices, business and marketing objectives, price elasticity of demand and last whether it is a new or an existing product. Therefore in India, Frooti has developed different pricing strategies for different regions over the years, for instances like in metro cities Frooti has develop a penetration and competitive pricing for which they have survived for so long and in rural areas they have set price value base pricing. This is show that Frooti are keeping in mind that as they want to attract a larger customer base they are using different pricing strategies for different level of income groups that is according to the standard of living of the people in each region. For example if we take into consideration metro cities like Mumbai for 1 litre PET bottle they charge Rs 28 and for the same 1 litre PET bottle in rural areas they charge Rs 15 which clearly shows they are using different pricing strategies for different regions.
Figure 3.4 The Different Pricing Strategies of Frooti. (Field Research)

Place:Thus the most vital part of marketing mix strategy the Place because after making all the product, then promotion and pricing the final needs to be distributed to end user that is consumer. Currently Frooti places their product in the typical college going crowd hung out at canteens, Bus Stops, Railway platform, Restaurants and movie theatre. Below is the Distribution chart of Frooti.

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Distributo r

Franchise Stockies Agen s t

End Use

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Figure 3.5 The Distribution Channel of Frooti.

People: This mainly includes the staffs that are employed by Frooti and their training in order to provide a healthy product for the customers. For example, Frootis employees must be well trained, in order to produce a product of Frooti and also the wholesalers and retailers should know what are the ingredients are there and required languages and presentable in order to easily communicate with the customers that arrive. Parle Agros Frooti should also consider motivating the

staff to ensure that they provide non Zero defected products to the customers in order to keep the customers in touch with product. Physical evidence: Physical evidence is basically the way Frooti presents its products to the customers. For Frooti, it is very important to have a high end and luxurious impact on its customers and thus they have reached, every hotel, railway, bus stops, malls and small retail outlets and last the most important college canteens where their target are easily available of Frooti is equipped with the latest products and flavours shows that physical evidence of extended marketing mix is achieved. Process of service delivery: These are the procedures and mechanisms and the flow of activities through which the customers of Frooti consume its services. The flow of activities for Frooti could be: - checking of raw materials - Sufficient materials in making of the product. - making of the product - Distribution of the Frooti product through various regions, area etc (wholesaler and retailer) - serving the end user with best packaging and as well as a nutritious product.

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Critical Analysis: - According to the author, out of the 7Ps Parle Agros Frooti needs to work upon the People as its one of the 7Ps because the employees are not well trained enough to produce non Zero defected product, as well as the communications skills are also weak so therefore have the difficulty in communicating with its (Sales Forces like) customers, retailers, wholesalers. Therefore in order to overcome the problem stated above Parle Agros Frooti needs to train its staff at such a level where there are no defected products (juice content) being produced as well as no communications problems are faced by Parle Agros Frooti with its suppliers and as well its potential consumers when buying the product. Whereas at the other end they have exceedingly done well in their other Ps like packaging because they (Parle Agros Frooti) were the first ones to introduce Tetra packaging technique as well as PET bottles in place, which has caught the consumers perception, that whenever they wish to have any Fruit juices drink then first thing that comes into mind is Frooti because of it is easy accessible to carry for the consumers. It is packaging that has helped Frooti to survive in this competitive market and has emerged as No.1 fruit drink product. Even their Pricing Strategies has helped them to reach their marketing objective. Using different pricing strategies, that is Competitive and value based pricing for Urban and Rural areas respectively.

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But according to the author Frooti should adopt Geographical base pricing because as they have reached the most distant place of the metropolitan cities they should charge higher price to distant customers to cover shipping cost or lower prices to win the additional business for the company.

Q.4) Apply the extended marketing mix to different marketing segments and contexts (especially international markets)? The on-going worldwide globalization, liberalization of trade, innovation in logistics and transportation, as well as advances in communication and information technologies continue to erode the barrier of geographical distance between B2B companies in different countries. This implies that B2B companies should always pursue global branding in their market offerings. Adapting or standardizing the distribution channels depends on several factors which are the customer, the culture and the product. James C. Anderson and James A. Narus, (2006) Business Market Management: Understanding, Creating, and Delivering Value, pp. 15 and 213. The Frooti as a product has reached globally too many Continents like Asia, America, Asia oceanic etc. Frooti has specifically targeted Africa as their global market because statistically proven in Mckinsey Global Institute (2009) Sizing Africas business opportunities [online] (updated on 25th July 2010) available at: http//www.mckinseyquartely.com [Accessed 24 October 2010]. The reason Parle Agros Frooti choose Africa as their extended marketing because they have the large opportunities in consumer sectors. Secondly the Africas growth acceleration resulted from more than a resources boom. Arguably more important were government actions to end political conflicts, improve macroeconomic conditions and create better business climates, which enabled growth to accelerate broadly across countries and sectors.

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The recent survey conducted by Mckinsey global institute shows the Africas growth was widespread across different sectors.

Figure 4.1 The Compound Annual Growth Rate of Africa.

Rather than services Parle Agros Frooti provides high quality product to their customers. Frooti has wide range of product portfolio to attract various segment groups of consumers. For last 25 years Frooti as a product has created a name for itself and a market various products. The foundation for expansion was focusing on total health and nutrition content and develops a product which is based on customer perception. Price was the key factor that helped Frooti for its success of their affordable price for customers in Africa because their special offers like giving 25% extra content in their PET bottles and giving 1 per 1 free to its customers. The way of Frootis promotional strategy they have build a wonder world in customer mind. Their approach to commercial establishments like offices, factories, and other small enterprise has gained a lot of consumer interest in Africa consumer and business sector segment. The giving vouchers to other commercial establishment are another promotional way for travellers. And also their online webpage is more attractive an effective way of advertising. Frooti way of reaching out to the customers and introducing new products to the customers is an effective one. From holiday makers to business people in Africa (broachers, website or leaflet), the products Frooti provide are clearly mentioned and categorized in an attractive way.

Extended marketing mix

Place. African region: Congo, South Africa. Etc RISBT, MUMBAI, INDIA

Product. Providing high quality.

Price Affordable price for the consumer. KEYUR DESAI

Promotion Offer vouchers, leaflets. Page 36

People. Its youth, teenager, kids.

Process. From exporting to reaching the target consumer

Physical evidence. To provide a health product.

Figure 4.2 The 7Ps of Frooti in Africa.

Critical Analysis:One of the major changes which Parle Agro has done in its marketing mix strategies (Internationally) in Africa (Congo) market is it product as well as price and promotion. They have largely emphasised on this 3 Ps is because firstly in Congo the people there are very sensitive in trying new products so therefore Parle Agros Frooti has maintained its Nutrition Value content in Tetra packaging (the reason being that Africa (Congo) market is one of the developing market and there no such fruit based products available in the Congo market) with utmost attractive design and shapes which has caught the eyes of the consumers. Secondly their pricing has changed, in comparison with India, Parle Agro charges Rs 28 for 1 litre of PET bottle and Rs 10 in Tetra packs, but whereas if we see in Africa (Congo) Market they have their pricing Strategies as per the different social classes present in the country and also Parle Agros Frooti have taken into consideration the rate of inflation in the country also taking into consideration per capital income of the population. Also they have specifically used both above & below line promotion to reach its consumers. 5. Please provide Recommendations for Frooti? Frooti in Others Flavours Now, the most striking fact is that Frooti is available in Orange, Strawberry and Pineapple flavours in selected cities in Maharashtra like Mumbai and Pune. PLACE:Retail chain of NCSD in India

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To capture the huge unorganized sector, Frooti should be promoted as a retailing chain outlet in India on the lines of Barista which is in the retailing of coffee. This outlet should contain all the variants of Frooti in different flavours and quantities and it should also be served in glasses. Also, this outlet can be used to provide fresh fruit juices in various flavours at a very reasonable price. This move will help Parle to capture a major chunk of the huge unorganized sector which is more than Rs 500 crore. But, this is a highly risky move and requires lot of capital so; Parle should first experiment by opening a few outlets. PROMOTION The nutrient content of Frooti should be highlighted on the package so that the consumer can become more aware and perceive Frooti as a Health drink. The quality standard of Frooti should be approved by a reputed authority or organization (like ISO series) and this be promoted. Taking the cost consideration into account, Parle Agro can go for more distributor and retailer margins, as by getting more margins the retailers and the distributors will promote Frooti more efficiently. It should also provide more consumer schemes. Parle can also promote Frooti by providing various offering like. For this Frooti should project its brand ambassador.

Conclusion:Parle Agro (Frooti) is one of the leading food and beverage organisation based in Mumbai in every consumer minds. They have use many attractive and intelligent ways of orientation, market research, their market segmentation, targeting and to their positioning, to their marketing mix and the environment to attract their customers.

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Frooti is a market orientated product which means that according to the consumers needs and wants it produces its product. Frooti has 75% market share in Fruit juice based product and is the market leader in fruit juice segment. Frootis strategy is to make their product available anywhere and wherever. Frooti has segmented its product on the basis of Demographic, Geographic and Psychographic and has successfully achieved its objective over the years by using this type of Segmentation. Frooti has always been positioned as a drink for kids but now the company has position it as a drink for the youth, especially, the college going teenagers and their attractive Tag Line why grow up has convinced the consumers that Frooti is not only for Kids, Youth & teenagers but for everyone. Parle Agros Frooti focuses more on product, packaging, pricing and process out of the 7Ps. There are varieties of packaging (of Frooti) made available to consumer from lower to premium range. Packaging is another aspect for Frooti as the appearance of the product will make the consumer attract and buy. Frooti in India and Africa (Congo) are different as from the product to process. In Africa (Congo) they have specifically aimed at Pricing, Product and Process and have successfully reached in the consumers minds.

Bibliography:1. Genero : interactive marketing & technology, 2007 2. Miller, A., and Dess, G., of Strategic management book. 3. Kotler, P. Armstrong, G., Saunders, J & Wrong, V. 2002. Principles of marketing. Third European Edition. Prentice-hall, Harlow: Pearson education limited.

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4. James C. Anderson and James A. Narus, business market management: understanding, Creating and delivering value, pp 15 and 213. 5. Doyle p., Stern P., (2006), marketing management and strategy, prentice hall. 6. Kotler, P. and G. Armstrong, Marketing: An Introduction. Third ed.1993, USA: Prentice Hall, Inc. 7. Stimpson, P.S., 2006. Business Studies. Chennai: Chennai Micro Print (P) ltd. 8. Definition of marketing: Marketing definition and marketing concept, from http://www.learningmarketing.net/marketing.htm 9. http//www.mckinseyquartely.com 10. 7 Ps of marketing Healthcare Success Strategies, Retrieved from http://www.healthcaresuccess.com/articles/the 7-ps-ofmarketing.html 11. 7 Ps extended marketing mix, Retrieved from http://www.12manage.com/methods booms bitner 7Ps.html 12. http://www.parleagro.tradeindia.com 13. http://www.kraftinteractive.net 14. http://www.marcleshay.com

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