| case study on fruit drinks -
August 10th, 2007
Project on Fruit Drink Marketing
(Case Study)
CASE :
MAC India a 100% subsidiary of USA based parent company, wants to launch health drink for sports people and iced tea. Preliminary research indicated that Indian public is becoming increasingly health conscious and cola market has become saturated.
India’s beverage market size is 720 million liters, which includes soft drinks, tea, coffee, and mineral water but does not include health drinks. In tetra pack the only success is Parle Agro’s FROOTI, MAC INDIA intends processing 250 tons fruits in the first year to make health drink, which will be expanded up to 2000 tones by 5th year.
After the initial success of health drink is ensured, it wants to launch iced tea.
Questions :
(1) State and explain the problem area of the case?
(2) Advice on the marketing mix and market segmentation strategy?
Solutions For above Question :
(1) (i) MAC India is venturing in a new market segment that is health based drinks which are not made available.
Parle Agro’s Frooti is a competitor of Mac and has a huge success.
The biggest task before MAC India is not only to introduce fruit based health drinks to Indian customer but also design a successful marketing mix and market segmentation strategy.
(ii) After the success of health is ensured it has to continue with launch of iced tea, which is again a new concept in India.
(2) The Indian beverage market size is 720 million liters Frooti capital is available in tetra pack is a mango based drink. MAC should first introduced apple based drink as apple is associated with health of the people at large. It should be ensure that the health based drink introduced by MAC is not positioned against Frooti capital.
As per the market demand we required to suggest marketing mix strategy that is 4P’s strategy, they are:
(a) Product
(b) Price
(c) Promotion
(d) Place
Which we explain are as follows
(a) Product :
Health drink with real fruit juice is a novelty drink which gives energy, contents real fruit and it is more thicker.
The drink will contain extracts of fruit juices, sugar, permitted colours, and added flavours.
Apple based health drink will be available in a pack of 300ml. After some time it will be available in different flavours as (i) Orange, (ii) Strawberry, (iii) Lime,
(iv) Pineapple.
(b) Price :
In order to compete with the prevailing price of Parle Agro’s FROOTI, the strategy is to provide more in quantity or nearly the same price.
(c) Production :
The company will use promotional tools like intensive advertising and publicity. News papers, Radio, T.V., Street shows, etc. will be intensively used.
(d) Place :
Physical distribution
The distribution channel network will be :
MANUFACTURER
|
AGENTS
|
DISTRIBUTORS
|
RETAILERS
|
CUSTOMERS
The product of the company will move from its factory to 20 depot located in different parts of Mumbai and Pune.
They will also have distribution stockiest around.
Market segment strategy.
The market is segmented in 3 parts :
(i) Socio-economic-based on income level and social class.
(ii) Demographic-based on age, sex, family size, race religion and occupation, etc.
(iii) Psychographic-related to lifestyle of the people. | 
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