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Cover Story April’09 Beware! Tough Competition Ahead this Summer 500-600 crores, and is growing at strong double digits rate. The fruit drink market, on the other hand, is much larger, at around Rs 1300 cr. Rasna, which is a dominant player in this category, has some smart plans up its sleeve this summer. Rasna is launching Re. 1 pack for rural market and concentrating on fruits market. But it’s not only beverages that picked up the benefits of summer. Summer is also the season for the Rs 2000-crores ice cream industry.
This season the country’s largest brands, Amul and Kwality Wall’s, are all geared up for the show.
Kwality Wall’s has launched two new flavours, Blackforest Flirt and Strawberry Tease Cake under its Cornetto brand and another two flavours, Jelly Burst and Crunchy Choco Dip, under its Paddlepop brand and its competitor Amul is also ready with five new ice cream flavours. Tata Tea launched T! ON and enters into non carbonated drinks market.
T! ON is a tea and fruit based cold beverage. This is an experiment Tata Tea is doing to attract the youth. The launch of Grappo Fizz is also announced Parle Agro. Like Appy Fizz, Grappo Fizz is not just about the brand in a bottle, but an entire brand persona woven around it.
The bottle in fact communicates directly with consumers introducing Grappo Fizz as Appy Fizz’s cousin. The bottle lists down Grappo Fizz’s CV in a witty, engaging manner and gives out details about Grappo Fizz.
Are they New Taste? Nimbooz was inspired by fresh nimbu paani used to refresh instantly to the Indian people. The ethnical drink nimbu paani market is very large in summer in unorganised sector especially on the streets and railway stations. PepsiCo and Parle Agro want to capture this market during summer in organised sector. This ight Begins!
Yes, summer has arrived and beverages industries are fighting to capture maximum shares in Rs. 7,500 crores domestic beverages markets for their new products. Along with beverages, ice cream industry is also giving tough competition to beverages industry to expand its turnover and take its share from beverages industry. Today, ice cream industry’s market share is approximately Rs. 2000 crores. Beverages market is divided into many sectors like carbonated, non carbonated, fruit juices and fruit drinks. But, it is largely dominated by the colas.
According to meteorological Department, most parts of the country recorded temperature 2-4 °C above normal in the last few months, and in certain places it has exceeded 40 °C in February, weather data showed. We should not forget, February is considered a winter month. The temperature will be above normal this summer which will boost the sales of beverages. Since mid-February and March we have been feeling the heat. This will increase demand for ice-cream and beverages. Every major beverages and ice cream company had introduced new products this year in the market.
PepsiCo and Coco Cola have already launched their products in market to capture the market. Dabur too is ready with its packs of fruit juices under its old brand name Real and new one with Activ. Similarly, Hindustan Unilever (HUL) is ready with the Kwality Wall’s ice cream range. The infamous brand AMUL’s company The Gujarat Cooperative Milk Marketing Federation (GCMMF), which is the market leader in ice-creams category, is counting on the scorching months ahead to unleash its full range of ice creams, milk shakes and ready-to-drink milk products such as lassis.
New Launches There seems to be a common strategy in this summer battle. This time, taste seems to be the flavour of the season. Coca-Cola has launched Fanta Apple while PepsiCo is counting on Nimbooz, a lemon juice, along with Nimbooz Parle Agro has also launched the same flavour with brand name LMN. The trend in the beverages segment is slowly moving away from carbonated soft drinks to fruit juices and flavours, according to industry experts. The packaged fruit juice market is today worth around Rs. F intention has made nimbu paani a branded product in Indian market.
Currently nimbu pani is consumed in vendor stalls by the roadside or at home. While the roadside nimbu pani has hygiene issues, achieving a consistent taste in home-made nimbu pani is a task. But how safe is our organised drinks is a matter of concern and debate. According to Ms Punita Lal, Executive DirectorMarketing, PepsiCo India, “PepsiCo is delighted to introduce Nimbooz, a packaged nimbu paani offering specially developed to suit Indian tastes and preferences. Nimbu paani is a well loved Indian drink and Nimbooz brings consumers this well-loved taste backed by PepsiCo quality. ” Ms Alpana
Titus, Executive VP-Flavours, PepsiCo India, said, “Nimbooz will be relevant and affordable offering for consumers on the go because of its readyto-drink format that is both convenient and hygienic. The proposition of the Indian refresher perfectly captures the mass appeal of this product and will certainly drive consumer connect. ” Nadia Chauhan, Joint Managing Director and CMO, Parle Agro said, “Nimbu Pani has traditionally been India’s most commonly consumed cold beverage. In fact the idea of a branded lemon drink is so simple that you would wonder why nobody thought of it earlier.
The challenge for us was packaging a natural product while retaining its fresh, original taste through out its shelf life. For the last 20 years, Parle Agro has been the market leader in fruit based beverages; we have constantly worked keeping in mind Indian preferences while formulating products that cater to the Indian palate. It is without any doubt that, only an Indian company can understand what real nimbu pani tastes like and what the Indian consumer wants in a packaged offering. ” International apple flavour launched by Coco Cola India “Fanta Apple” is also not new for Indian beverages consumer.
Previously also apple flavoured drink had launched by Parle Agro with brand name “Appy Fizz”. Venkatesh Kini, Vice-PresidentMarketing, Coca-Cola India said, “It gives me immense pleasure to announce the national launch of Fanta Apple. Apple is one of the most preferred fruits in the country. This product has been developed specially for Indian palates. The launch of Fanta Apple is a step towards strengthening the company’s market leadership in the fruit flavoured sparkling drink segment. Beverage Market Carbonated drinks are dominated by PepsiCo and Coco Cola companies, globally. In the fruit based category also Coco Cola’s Maaza is the leader with 33 per cent market share and Parle’s Frooti shares second place with 27 per cent whereas PepsiCo’s Slice shares only 13 per cent. As people in India are becoming health conscious and they want to look good and stay fit, they are switching to non carbonated drink. Now, non carbonated drinks have an option to quench the thirst and get rid by the summer.
In this summer, introduction of nimbu paani will definitely increase the share of fruit based drinks. Coco Cola’s Fanta Apple will also increase the share as people’s tendency is to check atleast one time any product introduces to consumers. Tion, a beverage product from Tata Tea introduced which might be new taste for everyone because it is blend of tea as well as fruit juices. Youth will definitely try this drink at least once for the taste. If this taste captures the market then there will be new trend Indian will get. This is a unique product that can compete with every cold beverage available in the market, as it provides energy, refreshment and health,” Sangeeta Talwar, Executive Director, Tata Tea told. Through Commercials Beverages companies want to fight with their rival not only through introduction or launching of new products but also with commercial advertisements.
The new communication program has been designed to position Maaza as the best and the only way to quench the thirst of Mango lovers who have an ultimate desire to have Mango, anywhere and anytime, best captured by the tagline, ‘Maaza Lao Aam ki Pyaas Bujhao’ (i. . Quench your thirst for Mangoes by Maaza). The latest initiative aims to connect with both young and old consumers across India who have strong urge to have their favourite fruit, Mango- the national passion of India. This commercial ad is just not a commercial ad but it is answer to Slice ‘aamsutra’ where Katrina Kaif performed in this ad. In-addition, the company has also has Minute Maid Pulpy Orange, a naturally refreshing juice drink, offering an unmatched taste experience due to the presence of natural ‘Orange Pulp’.
With a larger juice drink portfolio and by launching a fresh communication for Maaza, Coca-Cola in India is all set to extend its leadership in the juice drink segment lacking far behind to another major company. Parle Agro plans to give new look to its 24 years old mango drink brand “Frooti” in the summer of 2009. For this, they have already invested Rs. 10 crores for its designing and promotion. They have hired Creativeland Asia (CLA) to work on the repositioning exercise. Parle Agro Director Nadia Chauhan said: “With Frooti, consumers have never had a dull moment.
Through out its 24 years of existence, the brand has innovated all along the way, be it brand communication, pack design or ad campaigns. This summer, Frooti will undergo a complete makeover. Mangoes are perhaps the only fun fruit with which many consumers’ childhood memories are associated. ” PepsiCo has also drawn up an intensive consumer activation campaign to market it new product Nimbooz. The 360 degree marketing communication plan will revolve around building awareness through multi-city launches and road shows, comprehensive 3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors.
Complimenting the on-ground initiatives is the TV commercials that reflects Nimbooz’s ‘Ekdum Asli Indian’ proposition. Aggressive trial generation & sampling initiatives will also be taken forward across major cities of the country. A special ‘Nimbooz Highway Gadi’ has been created that will visit the four major highways connecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education. Price Competition There is tough fight for the price. PepsiCo’s Nimbooz comes in three formats of packaging for consumers. They are 200ml returnable glass bottle, 200ml tetra pack and 350ml of PET bottle.
Prices for 200ml returnable glass bottle and tetra pack are Rs. 10 whereas 350ml PET bottle will be available at Rs. 15 to consumers. LMN will be available in 110ml Tetra, 200ml Tetra and 500ml PET bottle priced at Rs. 5, Rs. 10 and Rs. 23 respectively. Tata Tea has launched TiON in three flavours in 400ml pet bottles. The flavours consist of Mango Rush, Peach Punch and Apple Buzz priced at Rs. 22 for 400ml pet bottle. Fanta Apple will be available across the country in a range of pack sizes – 200 ml & 300 ml returnable glass bottles (RGB) priced at Rs. 8 and Rs. 0 respectively, and in mobile 600 ml PET pack priced at Rs. 22. Conclusion Though the carbonated market is growing with the rate of 10 to 12 per cent, but the introduction of fruit flavoured and fruit based drink will definitely affect this dominating market. That’s why major carbonated companies are putting their hands in this fruit flavoured and fruit based beverages market. As consciousness for health is increasing people will prefer low calories drink, so market for carbonated drinks will go down as carbonated drinks contain high calories and switch to low calories like fruit drink or juices.
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