Marketing Project On Fruit Juice.docx 6b526p

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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 PepsiCo’s Tropicana juice brand has been rated the highest. Up to 17% of the respondents were aware of Tropicana, while the brand’s 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 X’s 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 doesn’t 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 questions—does 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 consumer’s 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 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 Agro’s 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.

Consumer’s 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 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 company’s 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 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 focuon.

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 entities—the 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 1980’s and early 1990’s 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 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 company’s 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 world’s largest food and beverage companies. The company’s 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 company’s 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 brand’s existing tagline of ‘Taste of Good Health’ has now got an extension statement of ‘Don’t 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 it’s launched tomato and mixed fruit juices have been altered to suit the Indian palate.

Currently, in 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 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 tly 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 company’s 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 ed 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 PepsiCo’s list, has a healthy presence in Maharashtra. Pepsi Foods acquired Mangola, originally a brand of Duke’s, when it officially stepped into the

domestic market while Mangola’s 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 brands—Frooti, 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 Agro’s 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 Agro’s 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 for Rs 500 crore (Rs 5 billion), growing at 25- 30 per cent annually. Like most drinks, summer s 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 company’s 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 VA、Inhibit Oxidation & Free Radicals Prevent Tumor、Improve Fecundity、Slow Aging

Vitamin E （Bearing Phenols） 3.025 mg/100g （Seed） 2.72m g/100g （Seed） Inhibit Oxidation、Enhance Immunity、Participate In DNA Synthesis、Slow Aging Inhibit Mutation、 Prevent Cancer

Vitamin C （Anti-Scurvy Acid） 135.96 mg/100g （Flesh） 154.95 mg/100g （Flesh） Accelerate Collagen、Synthesis Stop Bleeding、 Accelerate Amino Acid Metabolism、Inhibit Oxidation、Activate Folacin、Expel Toxin

Chlorophyl 481.50 ug/g （Peel） 222.51 ug/g （Peel） Prevent Inflammation、 Inhibit Cancer、Detoxification Accelerate Wound Close、 AntiCholesterin

Arginine 0.0953% （Flesh） 0.0463% （Flesh） Provide Baby Need Amino Acid、Accelerate Immunocyte Activity、Promote Secretion of Growth Hormone Prolactin and Insulin

Se 3.17 ug/100g （Seed） 1.53 ug/100g （Seed） Inhibit Oxidation Prevent Cancer、Protect DNA Inhibit Mutation、Prevent Cardiovascular Diseases、Slow Aging

Polysaccharide 4.56 g/100g （Peel） 3.44 g/100g （Peel） Inhibit Oxidation、Prevent Cancer、Inhibit Mutation、Repair & Shield Cells、Lower Blood Glucose、Improve Immunity、Accelerate DNA Synthesis、Strengthen Marrow Hematopoiesis

Polyphenol 4.56 g/100g （Seed） 8.47m g/100g （Seed） Inhibit Oxidation Convergence、Stop bleeding、Antiseptic、Prevent 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 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 of ethnic flavours and mixes will pay off. With respect to “KiwiJoos” we must make sure we increase our product baskets as we can’t 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 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 t ventures: Strategic alliances and t 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 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 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 d 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 today’s 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 ments 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 today’s 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. Today’s 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 offspring’s 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 ments will be for the purpose of building and ing 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 ment 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 company’s 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.

KiwiJoos’s pricing will be a 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 retailer’s 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, , 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 d in cost effective media like newspapers, radios, hoardings, at bus stands, and the most important and effective will be through TV ments. There will be some cosmetic variations of these ments when they are launched across the country. Regional celebrities who appeal to consumers may also be used in ments 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 s

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 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 competitor’s 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 and others. ______________________________________________________________________

Fruit Magic Marketing Plan by Team Fruitilicious 1

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

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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 lounge’s cosy and relaxing July unge’sambiance. Fruitilicious Marketers also considered deg a flyer to increase consumer awareness oftheir brand and promote the variation of Fruit Magic’s 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 shake’s 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 shake’s 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

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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 magic’s 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 magic’s 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, they’re 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. They’re 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 ed 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 ments 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 magic’s 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 magic’s 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 Magic’s great tasting and yet healthy foods. agic’s 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 ed 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 Magic’s 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 s, back to back print on high gloss paper 21 22. The front page serves as a summary of the flyer’scontent. It is entitled A Fruitful and Magical Treat forEveryone to promote the variation of Fruit Magic’sproducts.There are s for Weight Loss, Energy, Protein,Cooler and Wellness which suits every everyone’s 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 company’s 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 Magic’s product through a medley ofsong that will surely leave an impression about Fruit Magic and its product. It’s also a one way ofintroducing fruit magic’s other products and telling to customers how fruit magic’s 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 there’s 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 ½ feetPrizes Offered 1GB Fruit and Pizza Shaped Flash Disk 28 29. “Fruit Pad”Fruit Magic’s 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 Magic’s 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 Magic’s 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 .4. Prizes to be istered by Fruit Magic. All of the above Prize details are subject to change without prior notice at Best Buy’s 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 Magic’s 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 ¾ 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 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

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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 Magiroducts. 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 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 [email protected]. Photos must have a brief . story about the picture. 5. Photos should contain your complete name, address and no. 6. By ing 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 the contest once. 8. 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. will choose the winning photos based on the criteria. 11. Winners will be ed to receive

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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 will start to Fruitilicious Moments that is ed for oments initial screening May 19, 2011 o Photos will be released for community voting May 26, 2011 o will choose the winning photos based on the criteria. May 28, 2011 o Winners will be ed and posted in the fan page. May 30,2011 o Evaluation of the promotion through recognizing customer’s 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 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 ment and promotional materials are available o Ensuring mechanics of the promotions are properly communicated through posters and Fruit Magic’s Facebook . 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. 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 4P’s 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 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 manager’s 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 Magic’s 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 C’s Conform Ensuring that actual activities conform to planned activities before the start of development phase. Control Bodies Business is all about people and that’s 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 organization’s 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.