consumer behavior project launching fruit juice

Hamdard University Islamabad Campus

Consumer Behavior: Launching new product fruit Juice

Prepared And presented by M. Umair Arshed BBA Vi

• ObjectiveObjective• AimAim• LocationLocation• Mission Mission • Vision Vision • Target MarketTarget Market• Competitive Competitive

AnalysisAnalysis

The product selected is Juice and our brand name is Fruit Splash Juice

• Fruit Splash Juice will produce juice in the following varieties :AppleAppleOrangeOrangePineapplePineappleGrapesGrapesGuavaGuavaMangoMangoMixed FruitMixed FruitStrawberryStrawberry

• Basic purpose is to provide fresh and health Basic purpose is to provide fresh and health fruit juices to the people of Pakistanfruit juices to the people of Pakistan

• Target of capturing at least 5 per cent of Target of capturing at least 5 per cent of the market share within a year and then 15 the market share within a year and then 15 per cent over the time.per cent over the time.

“ “To be a leading producer of fruit juices based To be a leading producer of fruit juices based on dedication to nature, corporate and process on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to hygiene, dynamic leadership and commitment to our partners and stakeholders.” our partners and stakeholders.”

“ “To be capable to deliver the range and To be capable to deliver the range and quality of Juice which the customer demands, quality of Juice which the customer demands, which can only be fulfilled by the modern which can only be fulfilled by the modern technologytechnology

•Enough availability of raw Enough availability of raw materialsmaterials•High consumer retention rateHigh consumer retention rate•Price, a competitive advantagePrice, a competitive advantage•Natural productNatural product

•Seasonal availability of fruitsSeasonal availability of fruits•Brand acknowledgementBrand acknowledgement•Limited financial resourcesLimited financial resources•Tough competition in the marketTough competition in the market

•Participation with a growing industry.Participation with a growing industry.•Competitive advantage over carbonated Competitive advantage over carbonated soft drinkssoft drinks•Awareness among consumerAwareness among consumer

•Cut throat competitionCut throat competition•Unstable government policiesUnstable government policies•High Tax rate in PakistanHigh Tax rate in Pakistan•Competitors High resourcesCompetitors High resources

• Tax Laws Tax Laws • Stability of Government Stability of Government • Law of hiring and promotionLaw of hiring and promotion

• Increasing GDPIncreasing GDP• Growing middle class Growing middle class • Higher Disposable Incomes, hence more Higher Disposable Incomes, hence more

consumer buying powerconsumer buying power• Easy availability of loans from banksEasy availability of loans from banks

• Changing consumer habits & lifestyles - The Changing consumer habits & lifestyles - The Pakistan consumer of today is clearly seeking Pakistan consumer of today is clearly seeking healthier alternatives healthier alternatives

• Consumer buying behavior Consumer buying behavior

• Advancement of newer technologyAdvancement of newer technology• Government providing thrust on R&DGovernment providing thrust on R&D

• Market segmentation is the process in Market segmentation is the process in marketing of dividing a market into distinct marketing of dividing a market into distinct subsets (segments) that behave in the same subsets (segments) that behave in the same way or have similar needsway or have similar needs

• Variables Used for SegmentationVariables Used for Segmentation1.1. Geographic variables Geographic variables 2.2. Demographic variables Demographic variables 3.3. Psychographic variables Psychographic variables 4.4. Behavioral variables Behavioral variables

• Fruit Splash has set geographic target area. Fruit Splash has set geographic target area. Company will serve domestic and rural areas.Company will serve domestic and rural areas.

• Metropolitan Cities, small cities of the pakistan, Metropolitan Cities, small cities of the pakistan, and towns. and towns.

• Density of Area: Urban, Semi-urban, Rural. Density of Area: Urban, Semi-urban, Rural.

• Climate: TropicalClimate: Tropical

• Age – all age group Age – all age group • gender – Both Male and Female gender – Both Male and Female • family size - doesn’t matter family size - doesn’t matter • Education - doesn’t matter Education - doesn’t matter • Income – middle & lower middle class consumerIncome – middle & lower middle class consumer• occupation – student, working and retired people, occupation – student, working and retired people,

labourlabour• religion – doesn’t matter religion – doesn’t matter • nationality/race – doesn’t matter nationality/race – doesn’t matter • language - doesn’t matter language - doesn’t matter

Personality Personality No No

LifestyleLifestyle YesYes

ValueValue YesYes

Attitude Attitude YesYes

• benefit sought benefit sought • product usage rate product usage rate • brand loyalty brand loyalty • profitability profitability • income status income status

• Users perceive fruit juice as a healthy drink.Users perceive fruit juice as a healthy drink.

• Users drink fruit juice as a refreshing Users drink fruit juice as a refreshing alternative to carbonated drinks.alternative to carbonated drinks.

• Users willingly spend on products related to Users willingly spend on products related to health and lifestyle.health and lifestyle.

• Users enjoy fruit juice not only as a means Users enjoy fruit juice not only as a means of healthy life, but as an intrinsically of healthy life, but as an intrinsically enjoyable activity in itself.enjoyable activity in itself.

Primary and Secondary Primary and Secondary MarketsMarkets

Market SegmentationMarket Segmentationo Geographic variables Geographic variables o Demographic variables Demographic variables o Psychographic variables Psychographic variables o Behavioral variables Behavioral variables

• The juice and juice drink category is among the fastest The juice and juice drink category is among the fastest growing segments growing segments

• Fruit drinks as a category is growing at 18-20 per cent, Fruit drinks as a category is growing at 18-20 per cent, carbonated soft drinks are growing at 6-8 per cent. carbonated soft drinks are growing at 6-8 per cent.

• It’s the fastest growing liquid beverage category.It’s the fastest growing liquid beverage category.

• More than 90 % of sales happen through the More than 90 % of sales happen through the unorganized route - juice centers, street corner shops unorganized route - juice centers, street corner shops and so on. and so on.

• RecreationalRecreational• FitnessFitness• HealthHealth• LifestyleLifestyle• SportsSports

Primary MarketPrimary Market • Kids – Fond of Fruit Juice (fond of mango, Kids – Fond of Fruit Juice (fond of mango,

strawberry) strawberry)

• Teens – More experimental Teens – More experimental

• Youth – Experimental and more buying power Youth – Experimental and more buying power

• Working People Working People

• Housewives Housewives

• Elderly peopleElderly people

• Secondary MarketSecondary Market

Travel Industry – Airlines, Railways and Local Travel Industry – Airlines, Railways and Local Transport SystemsTransport Systems

Recreational – Movie Theatres, Malls, Parks, Recreational – Movie Theatres, Malls, Parks, school, collages, hospitals, hotels, restaurants, school, collages, hospitals, hotels, restaurants, bars etc.bars etc.

Identification Of Identification Of CompetitorsCompetitors

» Nestle JuicesNestle Juices

» Coca Cola (Minute Maid Pulpy Orange / Maaza )Coca Cola (Minute Maid Pulpy Orange / Maaza )

» OlfruitOlfruit

» ShezanShezan

» TopsTops

» Pepsi(Slice)Pepsi(Slice)

» Fruit VitalsFruit Vitals

Product Place Pricing Promotion

Type Fruit Juice

Features Fruit Splash is a 100 percent fruit juice which will be produced and marketed by Ahsan & umair Industries Ltd.

PLC Our product lie in introduction period

Identification brand name – Fruit Splash

Our product lie in introductionperiod Low sales High costs per customer Negative profits Innovator customers Few competitorsObjective: to create awareness and trial Offer a basic product Price at cost-plus Selective distribution Awareness – dealers and early adopters Induce trial via heavy sales promotion

Distribution Channel Product location availability Modes of transportation

Cities

Rural Areas

Within region

• Fruit Splaash has set geographic target area. Fruit Splaash has set geographic target area. • In start we will target only small cities and rural areas. In start we will target only small cities and rural areas.

Because most of the population of Pakistan belongs to Because most of the population of Pakistan belongs to rural areas. And mostly people of rural areas are not rural areas. And mostly people of rural areas are not aware about brands and not loyal with brands.aware about brands and not loyal with brands.

• Density of Area: Semi-urban, Rural, TownsDensity of Area: Semi-urban, Rural, Towns

• From road transportation

Apply the concept of providing quality product at optimum price

Provide profitable discounts, deals and schemes

Adopt sales oriented objective

Have one price policy to maintain a goodwill among customers.

So, as a new comer our pricing strategy is to introduce our products in the market at lower prices so as to create the huge demand in the market and to compete with other competitors.

As we come up in the demand, we will increase our prices and will provide more efficient and affordable juices

Promotional Tactics Provide free samples in the market for the brand

awareness

The following shows the advertising in the print media, electronic media etc – to our target audience by using the message showing a glass full of juice “Drink this much every day”

Fruit Splash 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.

Thank YouThank You