Introduction of fruit Juice Company in India 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. 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. 1200 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 organized 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 India is the second largest for foods and vegetables in the world. The total production of food and vegetables is estimated to be around 148.5 million tones, out of which fruit account for only 48.5 million tones and the rest 100 million tones is accounted for by vegetables. However, the Fruit juice market has not been fully tapped because of poor infrastructure, poor storage facility, and highly unorganized market, chiefly constituted by road side vendors. Consumer still prefers to buy juice from road side vendors even if juices are unhygienic. The major growth drivers in fruit juice market are, increase in health consciousness among consumers, increase in disposable incomes, and more sophisticated cocktail culture. Major Player and their brands: Pepsi with its brand Tropicana Dabur foods with its brand Real Coca Cola India with its brand Maaza

Industry analysis: The Rs 1200 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually, with Tropicana and Real holding 30% and 55% of the market share respectively. 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 program. 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. 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.

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 health-conscious segment. Second benefit is thirst quenching, so the other segment could be those buying the drink or nectar for satisfying the thirst. Another very broad segmentation 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. inhouse 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.

Target Markets: The women of the house Children The teenagers In-home consumption Out of home consumption Dabur Foods Dabur Foods that was set up in 1997 has brands like Hommade, Lemoneez and Capsico in its basket. Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. The Rs. 37 crore Dabur Foods ltd, a wholly owned subsidiary of Dabur India ltd has two brands of juice in the market, they are; a) Real b) Real Active For its Real brand, Dabur focuses on increase 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 plan. 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. 500 crore in the year 2011 -12. According to the company it has 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 has always been known for innovation. It has always been heading off in untested directions by launching a new range called Coolers which included traditional recipes like Aam Ka Panna (a green mango drink). It had

also launched a pomegranate juice and a water melon drink. A jamun variant followed. Below is the porters five forces model for Real Juice:

Threat of New Entrants

There is a lot of scope for new competitors entering the market. (An established brand in the FMCG may be able to successfully enter the market with a new product.)

Bargaining power of the customers

The bargaining power of the suppliers is quite low because Dabur owns most of the production and supply systems. Due to the size of the company there are lots of economies of scale which give them more power than suppliers.

Dabur Real pepsico Tropicana

and

Bargaining power of the customers

Due to current environment, the customer has high bargaining power. However, as Dabur is such a well established entity it can offer very competitive prices and strategies for its products.

are the major players in the Industry, rest others just sneak in a little market share.

Threat of Substitute Product

The analysis shows that the threat of the substitutes is high. Companies do differentiate their Production lines, as the customer demand new tastes and healthier options.

Competition

Pepsi's Tropicana brand fruit juice has registered double digit growth and has outpaced the growth of the packaged fruit juices market in India. India is a very important market for Tropicana and is among the top 10 biggest markets for the brand. The company sources orange juice concentrates from Brazil. Tropicana is available in orange, apple, grape and cranberry flavours and a cocktail in Ruby-red. They come in Tetra packs of one litre and pet bottles of 500 ml and one litre. Pepsi also markets an energy drink for the sports personnel, called Gatorade, and a sugar-free Diet Pepsi. Dabur and Pepsi Foods arent the only companies that are moving into overdrive in the juice business. As the Indians are getting more used to packaged juices a slew of companies are hoping to grab a share of the action. The result is that players like Dabur Foods, Pepsi Foods, Godrej Industries Foods Division, Mother Dairy and even the small Ladakh Foods are betting big money on this market by flooding it with new fruit beverages. Its a huge market with its potential still to be tapped, says Sanjay Sharma, head of marketing at Dabur Foods. There are now racks filled with fruit juices, nectars and drinks. The swift growth in the market has attracted entrants like Mother Dairy which launched the Safal brand of juices. Safal is currently available in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods,

makers of the Leh Berry seabuckthorn berry drink, also launched an applepeach combination juice and a mixed fruit variant. Even Godrej Industries Foods Division introduced fruit juices under the Xs brand (which earlier only consisted of nectars) and a soya milk fruit juice based drink called Sofit. Parle Agro of Frooti and N-joi fame too is rumoured to be on the verge of new launches. To add to the buzz, players are now looking at different pack sizes and price points. New entrants are also expected to join the fray in the Rs 500-crore organised fruit beverage market (nectars, drinks and juices combined). One newcomer is likely to be Ahmedabad-based Pioma Industries makers of the Rasna brand of soft drink concentrates, which test marketed a diluted mango juice in Andhra Pradesh, but dropped the launch plan after a lackluster response. Industry experts predict that the company may try again. Whats making all these players enter into fruit beverages market? For one, the fruit drink market has grown at a 20 per cent to 25 per cent rate. Obviously, some segments are doing better than others. Fruit-based milk drinks like N-joi are currently stagnating. But fruit-based soya milk, another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. But its not just the health fad that has led to the growth spurt. Cola sales fell dramatically after the pesticide controversy and this seems to have benefited the fruit beverage industry. Substitute Fruit juice companies have to face a two level competition i.e. on the first level with the substitutes and 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 in noncarbonated category. Flavored 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.

Analysis: In trillion Indian Rupees Aggregate Consumption across Income Brackets

80 70 60 50 40 30 20 10 0 1985 1995 2005 2015 2025 globals strivers seekers aspirers deprived

Note: globals= >1,000,000 strivers= 500,000-1,000,0000 Seekers= 200,000-500,000 Aspirers= 100,000-200,000 deprived= <100,000

News Dabur eyes Rs 500 crore sales turnover from Real juice
BS Reporter / New Delhi February 21, 2007

Dabur Foods, a 100 per cent subsidiary of FMCG company Dabur India, aims to achieve a sales turnover of Rs 500 crore by 2010 from its flagship juice brand Real. Towards this, the company will invest Rs 100 crore over three years. Of this, Rs 70 crore will be utilised for expanding manufacturing lines in Jaipur, Siliguri and Nepal. Currently, Dabur Real contributes Rs 175 crore to the kitty of Dabur Foods, which has an overall turnover of Rs 225 crore. The other brands of Dabur Foods are Active, Coolers and Hommade. To ensure sustained growth of Dabur Real, the company was evaluating the jams and jelly market and also cut-fruits and fruit syrup market though no immediate announcements in these categories were expected, Amit Burman, CEO, Dabur Foods, said. Over the past 10 years, Real has had a compound annual growth rate (CAGR) of 33 per cent. Our focus over the next three years will be to achieve a CAGR of 25 per cent, thus increasing turnover from the brand to Rs 500 crore by 2010, Burman said. Dabur has also done a packaging and design makeover of its Real brand. Explaining the rationale behind the new packaging, Sanjay Sharma, general manager, sales and marketing, said: The new look has a two-fold agenda - to retain the loyalty of our current consumer base and to attract more consumers. The Rs 350 crore domestic branded juice market is growing at a CAGR of 25 per cent. According to a study by AC Neilson, Dabur Real has nearly 57 per cent market share, while Tropicana is a distant second with 25 per cent share. To cater to the demands of the exports market, the new manufacturing lines would also cater to the markets in the West Asia and African countries, Burman said. The growing fruit juice and health drinks market
Wednesday, March 16, 2005
P N V Nair, Mumbai

With people turning more health conscious, the non-carbonated beverage segment has become one of the fastest growing and most exciting businesses at the moment. For some time now, manufacturers have experimented with some of the formulation and taste issues, offering the consumers better tasting, more healthful alternatives. Evolving from drinks containing a hint of herbs or vitamins, beverages have become an important delivery vehicle for efficacious amounts of nutritional ingredients. Beverages are unusual products in that everyone expects to try new varieties, even from established brands. While all segments of the beverage market are evolving, the growth seems to be directed more towards healthy, light and low-calorie drinks, in particular organic and fruit juice varieties. The Rs 500 crore non-carbonated beverage market in the country is composed of fruit drinks, nectar and juices. While the fruit drink segment is estimated at Rs 250-300 crore (branded and packaged), the juice market is valued at Rs 150 crore and the nectar is a small category of about Rs 35-50 crore. And the popular brands vying for a share in the sector are Parle's Frooti, Godrej's Jumpin, Coca Cola's Maaza, Pepsi's Tropicana, and Dabur's Real, Nastle's Milo, Soy milk from ProSoya and branded fruit juices from Surya Foods among others.

The Rs 1,100 crore health food drinks (HFD) market, classified into two categories of white and brown segments, has remained stagnant for the last several years despite GSKCH (GlaxoSmithKline Consumer Healthcare) and Cadbury's attempts to activate the category. While Cadbury's Bourvita has been at the forefront of the HFD market, GSKCH has also been active. Apart from repositioning its Horlicks brand from health drink to a fun drink, GSKCH more recently has launched its brown drink Boost in 100gm sachets as well in Tetrapak as a ready-to-drink product. GSKCH's Horlicks and other brands like Boost, Viva, Maltova, together have a 75 % share of the health food drinks market. Horlicks alone, as a white beverage, is believed to have an over 50 % market share. Nestle's Milo, however, being a brown drink faces direct competition from Cadbury's Bournvita and GSKCH's Boost. The market has marginally moved from the white malted beverages to the brown segment. The latest to join the race is GCMMF, which has relaunched its health food drink branded as Amul Shakti.

Dabur rebrands 'Real' juice, eyes Rs 700 cr from food div

PTI Dec 5, 2010, 11.13am IST

NEW DELHI: Homegrown FMCG firm Dabur India today said it is giving its juice brand 'Real' an image makeover as part of its strategy to garner a sales of Rs 700 crore from its food division in the next three years. The company said it is now focusing to highlight the nutritional aspect of its juices as against the earlier practice of promoting the brand for taste. "Over the years, consumers have accepted the taste (of Real) and loved it. And, now we are educating consumers about the nutrition aspect of our juices. Hence, we decided to go for a re-branding," Dabur India Head of Marketing (Foods) K K Chutani told PTI. As part of the exercise, the company has changed the logo and also the packaging of all its Real products. Besides, it has also signed on actress Sonali Bendre to promote the brand. While the company did not specify details on the investments for the initiative, it is understood to have invested around Rs 8 crore on the whole image makeover exercise of the Real brand. "Real is a more than Rs 400 crore brand - the market leader in the packaged fruit juices category in the country. Going forward, we expect to see the brand growing with strong double digit figure," Chutani said. At present, Dabur sells 12 variants under the Real brand. Going forward, the company plans to introduce more variants, he added. Although he did not disclose the sales target of the brand on the back of the new initiative, other officials of the company said Dabur is eyeing a total sales of Rs 700 crore from its foods division in the next three years up from Rs 500 crore at present. Real accounts for nearly 80 per cent of the total sales of Dabur's food division, which sells fruit juices under the brands 'Real', 'Activ', 'Burst', apart from 'Hommade' cooking paste and others. Dabur currently has two plants in Nepal and Rajasthan that produce 'Real' fruit juices.

November 01, 2010 09:08 ET

Fruit Juice Market Projected to Grow 3.4% Annually Through 2014

ROCKVILLE, MD--(Marketwire - November 1, 2010) - MarketResearch.com has announced the addition of Business Insights's new report "Innovations in Fruit and Vegetable Juices: Emerging opportunities in premiumization, sustainability and positive health" to their collection of Beverages market reports. For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=2836985. The global market for juices was valued at approximately $79bn in 2009. This market is projected to grow at a CAGR of 3.4% during 2009-14 to reach a value of $93bn in 2014. According to the report, among all new product launches across major soft drinks categories, juices accounted for 30.9% share in 2009, an increase of 7.8 percentage points over 2006. Additionally, the juices have outperformed functional drinks in NPD in 2009 by recording an 11.0 percentage point higher share than functional drinks. During 2006-09, only 2.6% of all new juices launched were innovative. In 2009, 63.6% of all innovations in juices were in formulation. Health and wellbeing continued to be a key growth driver for innovation in functional juice formulations primarily owing to a rise in consumer focus on preventive healthcare. The fruit drinks (0-29% juice) continue to dominate all other juice categories with a share of 46.1% in NPD in 2009, an increase of 5.8 percentage points over 2006. The share of nectars in NPD has also increased by 4.2 percentage points over 2006 to reach 17.0% in 2009. In 2009, 'no preservatives' garnered the highest share of 11.3% among all other claims, an increase of 3.7 percentage points since 2006 replacing 'high vitamins' as the most used claim. The close second is 'high vitamins' that accounted for 9.3% share of all claims used in new product launches in 2009, a decline of 1.7 percentage points from 2006. Major fast food chains such as McDonald's Corporation are also promoting the consumption of fruit and vegetable juices, specifically among children by customizing their menus for kids.

Dabur eyes 5% share in fruit drink mkt

Press Trust of India / New Delhi June 19, 2009, 20:38 IST

FMCG major Dabur, which recently launched it fruit drink 'Real Burrst', is eyeing a 5 per cent market share in this segment in the next three years. "Our plan is to consolidate our position in the fruit juice market besides expanding into fruit drink segment, which we have just entered into (with) Real Burrst," Dabur's Foods Division Marketing Head K K Chutani said. The fruit drink market is estimated to be about Rs 1,100-1,300 crore in size and is growing at 30 per cent per annum, he said while adding, "Its this market that we have entered with Real Burrst, and we are looking at capturing a near 5 per cent share of this pie in the next three years." The company operates in two segments fruit juice and fruit drink in the category under 'Real Activ', 'Real' and Real Burrst brands respectively. "Three brands 'Real Activ', Real and Real Burrst have been positioned on the health, nutrition and refreshment platforms respectively," he added.

The company has launched two more flavours blackcurrant and peach under its flagship brand Real and with the launch of these two variants, Dabur has now 14 variants, the company said in a statement. Food busines of the company contributes around 13 per cent of the total domestic sales of the company.

Fruit juice segment poised for 30% growth Saturday, March 04, 2006 Sabyasachi Samajdar, New Delhi The branded fruitju ice market in India is estimated to be worth Rs 500 crore organised fruit beverage market (nectars, drinks and juices combined) and the segment is growing at about 30 per cent per annum. Big players like Dabur, Pepsi, Godrej and Parle Agro are already in the market and in view of the swift growth in the market, newcomers like Surya Foods and Agro, Mother Dairy, Ladakh Foods, Pioma Industries have come into the market with new products in the recent years.

Vision To provide largest range of refreshing, preservative free fruit beverages for the health and well being of every household. Growth Opportunities Substitute for carbonated beverages Entering the choice set by increasing the product length Collaboration with hospitality industry/work place

TAILORING STATEGIES TO SEGMENT Smart Sport Symbol For identifying healthier lifestyle products Spin-Cap Tetra Pack Retaining freshness & preventing adulteration Multiple Pack Sizes For varied consumption needs and occasions Exotic Range of Flavors For varied consumption, tastes and choice

Costumer needs Preservative free drink Various flavours n variants Real Active orange-carrot Competencies Trusted name in natural health care over 100 yrs Healthy product mix of natural & herbal products Developing Capabilities Setting up strategic manufacturing bases Implemented SAP to enhance quality of supply chain

Integrated Functions DARE program(driving achievement of retail excellence) Point of sale software at stockists

Competitive advantage First mover advantage Learning curve advantage Innovation in product offering Redefining traditional marketing dynamics Corporate Social Responsibility Sundesh-Welfare organization Committed to maintain ecological balance Reforestation of Himalayas

Environmental Changes Calorie consciousness New generation getting attracted towards packed foods Costumer Focus Preservative free Taste close to real fruit Full of nutrients & vitamins.

Demand for Fruit Juices in India Year Rs. (Billion) 1995-96 1.62 2000-01 2.48 2001-02 3.55 2002-03 3.95 2003-04 4.35 2004-05 4.80 2005-06 5.30 2006-07 5.80 2007-08 6.30 2008-09 6.85 2009-10 7.40 2014-15 10.90 (source: Intecos CIER) Market Growth rate of fruit juices in India Period 1990-97 1997-2002 2002-2007 2007-2010 2010-2015 (source: Intecos CIER) CAGR 40.30% 16.10% 10.30% 9.00% 8.00%