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PROJECT REPORT
On
STUDY OF CONSUMER PREFERENCE TOWARDS
FROOTY IN LUDHIANA
Subject: SEMINAR ON PROJECT REPORT
Submitted by:
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TITLE
CONSUMER PREFERENCE TOWARDS FROOTI IN
LUDHIANA
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C O N T E N T S
Chapter
No.
Chapters Sub-Titles
1 Introduction Introduction to the project
Objectives of the study
Company profile
2 Review of literature
3 Research Methodology Research Design
Data Collection
Sampling Plan
4 Data Analysis & Interpretation
5 Results and Findings
6 Suggestions
Conclusion
Appendix Bibliography
Questionnaire
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CHAPTER- I
Introduction
A soft drink is a beverage, often carbonated, that does not contain alcohol. (Carbonated
soft drinks are more commonly known as soda, pop, tonic, or soda pop in parts of the
United States and Canada, or fizzy drinks in the U.K.; sometimes called minerals in Ireland)
The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard
drink". The term "drink", while nominally neutral, often carries connotations of alcoholic
content. Beverages like colas, sparkling water, iced tea, lemonade, squash, and fruit
punch are among the most common types of soft drinks, while hot chocolate, hot tea,
coffee, milk, tap water,alcohol, and milkshakesdo not fall into this classification. Many
carbonated soft drinks are optionally available in versions sweetened with sugars or withnon-caloric sweeteners.
SCOPE OF PROJECT
1. Detailed study of the noncarbonated soft drinks industry in Ludhiana.
2. Analysis of Frootis performance against the other prevailing noncarbonated soft
drinks brands in the country.
3. Analyzing consumer perception based on various parameters such as purchase
frequency, effect of sales promotion schemes, brand attributes and consumer loyalty,
packaging ,
OBJECTIVES OF THE PROJECT
1. To s tudy the tas te and preferences of the consumer.
2 . To s tudy the market response to the packaging of Frooti.
Consumer preference for a product can make or break a
company. If
o all colors would sell the same amount or car
manufacturers would only produce one color.
However, this is not the case. Those
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http://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Colahttp://en.wikipedia.org/wiki/Sparkling_waterhttp://en.wikipedia.org/wiki/Iced_teahttp://en.wikipedia.org/wiki/Lemonadehttp://en.wikipedia.org/wiki/Squash_(drink)http://en.wikipedia.org/wiki/Squash_(drink)http://en.wikipedia.org/wiki/Fruit_punchhttp://en.wikipedia.org/wiki/Fruit_punchhttp://en.wikipedia.org/wiki/Hot_chocolatehttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Coffeehttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Tap_waterhttp://en.wikipedia.org/wiki/Alcoholhttp://en.wikipedia.org/wiki/Alcoholhttp://en.wikipedia.org/wiki/Alcoholhttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Carbonationhttp://en.wikipedia.org/wiki/Colahttp://en.wikipedia.org/wiki/Sparkling_waterhttp://en.wikipedia.org/wiki/Iced_teahttp://en.wikipedia.org/wiki/Lemonadehttp://en.wikipedia.org/wiki/Squash_(drink)http://en.wikipedia.org/wiki/Fruit_punchhttp://en.wikipedia.org/wiki/Fruit_punchhttp://en.wikipedia.org/wiki/Hot_chocolatehttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Coffeehttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Tap_waterhttp://en.wikipedia.org/wiki/Alcoholhttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Sugar -
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manufacturers produce many colors, including
twice as many in white, or whichever color is
trendy or popular at the time.
Difference of Opinion consumers generally like a
product, it can stay around for years and sell millions of
copies. However, if consumers do not like the product, it
could disappear very quickly if the company cannot
figure out how to fix the problem.
2. Definition
Many consumers choose to buy white cars instead of red
or blue no matter what brand the car is, where it was
built or how many cup holders it has. This is a consumer
preference. Why is white the most popular car color?
Some people say it is because it signifies purity or even
technology. The color of a car has nothing to do with how
the car functions, so logic would say that
o Sometimes, consumer preferences may lead to
negative results. Shampoo companies found that
their customers associate suds with cleanliness,
leading them to add sudsing agents to their
products even though the amount of suds has
nothing to do with how well the shampoos cleanhair. The first company to add more suds to
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their formula was able to use it as a marketing
and promotional advantage. Other companies
followed suit, leading to a sudsiness competition.
Unfortunately, the more sudsy the lather, the worse the
shampoo will clean. This is true for two reasons.
According to the Fox Avenue Salon website, "First, the
extremely sudsy shampoo takes much longer to rinse out
of your hair, resulting in excessive use of water. Secondly,
with so many suds the hair doesn't seem to get as clean."
So, instead of manufacturers educating customers on how
shampoo works, they add chemicals to adjust their
products to the consumer preference.
How Companies Find Consumer Preferences
o Companies routinely test the market to find out
what customers like and dislike about their
products and competitors' products. This is
usually done by an internal marketing
department or outsourced to a market research
firm. Phone interviews, paper surveys,
electronic surveys, focus groups and consumer
samplings are common methods for gathering
information.Market Research Example
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o Here is a popular example of market research:
A customer has finished shopping and paying
for merchandise at a local grocery store. Before
handing the receipt to her, the cashier points to
and explains that she has been invited to
participate in a short survey about her visit. If
she chooses to participate, she will receive $5 off
her next visit and a chance to win a large
monetary grand prize.
How Companies Use This Information
o After gathering information, the next step for
the company is to determine what it means.
Analysis of the information may lead the
company to change the formula, packaging,
color, size or some other feature of the product.
In the case of the suds in the shampoo, the
manufacturers may find that customers are
continuing to prefer and associate the foamy
lather with high quality cleanliness, leading
them to keep the same formula or decide to add
even more of the sudsing agent.
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COMPANY PROFILE
PARLE AGRO PVT. LTD.
MISSION:
To provide consumers superior, wholesome agro based food and drink
b an ds t hr ou gh wh ic h P ar le c an b ui ld a p ro fi ta bl e; g row th o ri en te d
organization.
Parle is a leading Indian Food and Beverage Company, the only Indian
transnational giant with the past experience of having successfully launched
leading soft drink brands l ike Frooti , Apply, N - Joi and Bailley. Today
its brand portfolio consists of No. 1 brands like Frooti along with Apply, N-
Joi and Bail ley . Parle agro was the f i rs t to iden ti fy the dormant mango
segment in India and launch Indias f i rs t na tional Mango dr ink - Froo t i
Mango. Today Frooti has an 85% market in the Fruit Drink segment.Today,
the Parle Group turnover is over Rs.600 crore with a group strength of over
1000 employees, including over 400 professionals.
PRODUCTS
1. FROOTI:
It is the flagship brand of Parle agro. It was introduced in 1985 and it was
the first Fruit Drink to be introduced in India.
2. BAILLEY AQUA :
It is a mineral water and was launched in the year 1993. It is one of the first brands to get an ISI certification Bailley conforms to stringent BIS Norms.
I t u nd er go es 5 1 q ua li ty c on tr ol t es ts i nc lu de s 3 2 c he mi ca l t es ts , 9
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micro biolog ical t es ts and 1 0 p hysica l t es ts and mee ts interna tion al
standards laid down by WHO, USFDA, PFA.
Parle Bailley Aqua is unique because it has the same consistent taste across
India. This is because of the unique purifying process ing system, which
remov es a ll min eral s and s al ts and p ut s b ack o nly exact p remeas ured
quantities of salts and minerals necessary for the human body. Bailley Aqua
is purified with chemical free natural U.V. Treatment.
3. N-JOI:
Parle Agro entered the dairy segment with the launch of N-JOI. N-Joi is
Indias first real fruit and dairy fresh milk drink. It contains orchard fresh
pulp of mango / s trawberry and dairy fresh healthy low fat cows milk. Its
full of natural goodness and wholesomeness. N-Joi is nutritious filler and a
delicious smooth frui t and milk drink. N-Joi Mango with dairy fresh milk
and N-Jo i s t rawberry wi th dai ry f resh mi lk have been ra ted as the Mos t
Innovative products in the Beverage Industry.
4. APPY:
An apple drink from Parle, its available in a sleek, international pack. The
b rand has been pos i tioned as the champagne o f apple d r inks due to i t s
unique richness of taste. Unlike ordinary apple drinks, Appy spells style and
exclus iveness which makes i t a par ty favour i te in the upper crus t o f the
society. Apply is made from freshly picked ripe apples sourced from the rich
natural environs of Himachal Pradesh. The clear and crisp Apply Nectar is a
premium product available in a 200 ml easy to pour pull-tab opening pack.
WHY FROOTI:
Soft drink market can be divided into two categories:-
1 . Carbonated sof t dr ink
2 . Non-carbonated soft drink (NCSD).
Frooti is the market leader in the NCSD category with around 60%
market share. The NCSD market is growing but there is intese competition
among the various segments in th is market . The market share of Frooti in
the NCSD category is on the decline because of the Fruit Juice Segment,
which is increas ing at the rate of 20% per annum along with the s luggish
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growth of the Fruit drink segment. To counter th is onslaught, Frooti has
introduced PET bott le packing in 250 ml, 500 ml and 1000 ml and Tetra-
pack packing in 65 ml quantity. Therefore, we have taken up this project to
suggest recommendations to Parle to increase the share of Frooti in NCSD
category and to study the market response of the new packaging of Frooti.
ABOUT FROOTI:
Mango - Indias national and most premium fruit was a virtually untapped
segment unti l the year 1985, which saw the launch of Frooti Mango in a
trendy convenient tetra-pack. Frooti Mango is Parle Agros flagship brand
and Indias leading fruit drink with an 85% market share. Now, Frooti also
comes in PET bott le packing. Frooti is l ike an Indian ambassador and is a
hot favourite not only in India but all across the world. Frooti is the first tetra
pack fruit juice in India. Launched in 1984, Frooti still holds a dominant position in the
Rs300 crore tetra pack fruit juice (TFJ) market. Frooti over these years have carved out a
niche for itself in the market. Frooti instantly caught the fancy of Indian consumer with its
tetra pack and some smart campaigns. Initially the drink was positioned as a kids drink. The
product was perceived as a healthy fruit drink by the mothers . So within a short span of
time, the brand was an alternative to the unhealthy colas. The tetra pack had other
benefits also. Fruit juice is a perishable product and tetra pack have extended the shelf life
of Frooti because tetra packs have 2 layers of paper and a plastic coating that ensured
tamper proof and enhanced shelf life. Lured by the success of Frooti, there was a lot of
new launches in the TFJ market. Players like Godrej with Jumpin, kissan etc tried their luck
in this market but failed to dislodge Frooti. Frooti was positioned as a mango drink that is
Fresh-n-juicy For over a 7 years, the company promoted the product using that famous
baseline. The product has tried to create excitement in the market through a series of new
variants and packing. But in late nineties the brand was facing stagnated sales. The
company tried to excite the market with an orange and pineapple variant but both the
variant bombed. The came the experiment with packaging. The YO! Frooti variant came
with a slim paper can aimed at the college going youth. Worried by the stagnating sales,Parle tried to reposition the brand to appeal to youth aged between 16-21. The positioning
changed to be more fun based. The package also changed. The old green color of the bottle
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changed to more bright mango color with lot of graphics added to it. One of the most
famous marketing campaigns India have witnessed took place during the repositioning. The
campaign is the famous Digen Verma campaign. This campaign was considered as one
of the most successful teaser campaigns in India. The campaign lasted for 15 days started in
February 2001. The campaign was about a faceless person Digen Verma. There were
posters and outdoors all across the markets that had messages like Who is Digen verma
Digen Verma was here etc. This created lot of excitement in the market and Digen Verma
became the most talked about faceless name at that time. The campaign was executed by
Everest communication. But the campaign was not followed up and the hype was not
translated to long term brand building. Frooti is basically a nectar based drink so it is not
100% fruit juice, it also have some preservatives added to increase the shelf life. Although
Frooti did not face much competition in the category it created, competition came from a
slightly different category, 100% fruit juices. Parle saw the emergence of the 100% fruit
drink market and launched N-joi brand but it did not clicked. Parle could have extended
Frooti to this market also .The brand Real from Dauber is the main player in this category.
Real effectively positioned itself as a premium healthy drink for adults. Frooti was not able
to appeal to adults and was considered as a mango drink while Real is not restricted to any
flavor. Frooti also changed its positioning statement from Fresh-N-juicy to Juice Up your
life which have not clicked with the customers. Although Frooti enjoys a commanding
(75%) market share , Frooti is facing stagnation. May be some serious steps should be
taken to increase the usage of the product. The launch of PET bottle Frooti is a step in this
direction. Recently Frooti also launched a Green mango variant just to create some hype
in the market. Frooti may have to reposition itself again to appeal to cola drinkers.
INDUSTRY PROFILE
NON-CARBONATED SOFT DRINK INDUSTRY IN INDIA
AN OVERVIEW :
The non-carbonated SOFT DRINK (NCSD) sector can be class if ied as
Fruit drinks, Nectar and Juices. The classification is based on the percentage
of the fruit pulp content in the beverage. Fruit drink has to have minimum
fruit pulp content of 10%, while Nectar needs to have a minimum fruit pulp
content of 25%. The total s ize of the branded non-carbonated beverages in
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the o rg an ized s eg ment i s e st imated a t Rs.50 0 c ro res. The F ru it d rink
segment is estimated at Rs.250-300 crores, while the Juice market (Branded
& Packaged) is es t imated at Rs 150 crores . Nectar is a small category of
around Rs 35-50 crores. In the fruit drink category, Parles Frooti, Godrejs
Jumpin and Coca-Colas Maaza and Pepsis Slice are the major brands . In
the Nectar segment, the key national p layers are - Dabur, Godrej Xs and
Parles Appy. The two key national level p layers in the ju ice segment are
Tropicana and Real . Real is the market leader with 55-60% market share.
Tropicana has an estimated share of 30-35%. Several local / regional brands
also ex is t, besides a huge unorgan ized sector . The Ju ice ca tegory is the
fastest growing segment at present, estimated to be growing by 20-25% p.a.
The frui t drinks category has also been witness ing growth of around 5%
p.a.The main reason for this growth in the NCSD Category is the change of
the consumer preference from the carbonated to the non-carbonated soft
drink sector mainly due to increas ing Health Awareness among consumers
and the Pes ti cide i ss ue relat in g to Cok e and Pep si . In the F ru it Drink
segment, Frooti is the clear market leader with around 85% market share but
in the NCSD category as a whole; i ts share has been declin ing because of
the g ro wth in F ru it J uice s eg ment . So, w ith the g ro wth o f the NCSD
category, Frooti has to compete with al l the segments in th is category to
take a larger share of this growth.
COMPETITORS:
The main competitors of Frooti are as follows:-
1. Maaza
2. Slice
3. Real
4. Tro pic ana
5. Jumpin
We are not taking into account the nectar segment as it constitutes a small
part of the NCSD category and also, the growth is very sluggish in this
segment.
MARKETING MIX:
Marketing decisions generally fall into the following four controllable
categories:-
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1. Product
2. Price
3 . P lace (d is t ribut ion)
4. Pr omot ion
The t erm mark et in g mix b ecame p op ular ized a ft er Nei l H . Borden
published his 1964 article, The Concept of the Marketing Mix. Borden began
using the term in his teaching in the late 1940s after James Cull i ton had
d es cr ib ed t he m ar ke ti ng m an ag er a s a mi xe r o f i ng re di en ts . T he
ingredients in Bordens marketing mix included product planning, pricing,
branding, distribution channels, personal selling, advertising, promotions,
packaging, d isp lay , serv icing , physical handl ing , and fact f ind ing and
analysis . E. Jerome McCarthy later grouped these ingredients into the four
categories that today are known as the 4 Ps of marketing, Product , price,
place and promotion.
These four Ps are the parameters that the marketing manager can control ,
subj ec t t o t he i nte rna l a nd e xte rna l c onstr ai nts of t he ma rke ti ng
environment. The goal is to make decis ions that center the four Ps on the
cus to mers in the t arge t marke t in o rd er to c reate p erce iv ed v alue and
generate a positive response.
PRODUCT DECISIONS:
The term product refers to tangible, physical products as well as services.
Here are some examples of the product decisions to be made:
1. Br and name
2 . Fun ct io na li ty
3. Styling
4. Quality
5. Safety
PRODUCT:
A product is anything that can be offered to a market to sat is fy a want or
need.Indias first real fruit drink in a Tetra Pak is available in - Frooti Mango,
Green Mango. Frooti Mango is from premium Indian Mangoes . Frooti has
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also been introduced in PET bottle packing. Mango Frooti contains vitamin
A which is essen t ia l fo r eye s igh t , g rowth and heal thy sk in . Froo t i i s a
delicious and refreshing ready to serve fruit beverage.
Frooti comes in Fruit drink segment of NCSD category (NON-
CARBONATED SOFT DRINK).
Frooti is available in following quantities:-
65 ml (only Tetra pack packaging)
200 ml (only Tetra pack packaging)
250 ml
500 ml (only PET Bottle)
1000 ml (only PET Bottle)
Hence, we can see that Frooti has got a very large quantity basket.
PRICE DECISIONS:
Some examples of pricing decisions to be made include:
1 . Pricing s trategy (skim, penetrat ion, etc)
2 . Sugges ted re ta i l p r ice
3. Volume discounts and wholesale pricing
4. Cash and early payment discounts
5 . Seaso na l pr ic in g
6. Bundli ng
7 . P rice f l ex ib il ity
8 . Pr ice d iscr iminat ion
PRICE:
TETRA PACK PACKAGING
QUANTITY PRICE (Rs.)
65 ml 2.50
200 ml 10.00
250 ml 12.00
PET BOTTLE PACKAGING
QUANTITY PRICE (Rs.)
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250 ml 10.00
500 ml 20.00
1000 ml 30.00
In order to maintain i ts posi t ion as a market leader, Frooti is offering i ts
product in d ifferent quanti t ies and prices depending upon the consumer
requirements, preferences and income-levels.
As we can see from the above table, Frootis new 65 ml packaging is priced
at Rs 2 .50 on ly , ta rgeting the lower income-group and i t has a lso been
introduced in PET bottle packaging as it is more cost-effective as compared
to Tetra-pack packaging to become more competitive in the market.
DISTRIBUTION (PLACE) DECISIONS:
Distribution is about getting the products to the customer.
Some examples of distribution decisions include:
1 . Dist r ibut ion channels
2. Market coverage (inclusive, selective, or exclusive distribution)
3 . Specif ic channel members
4 . Inventory management
5 . W ar eh ou si ng
6 . Dist r ibut ion cen ters
7 . Ord er p ro cess in g
8 . T rans po rtat io n
PLACE:
Frooti is the highest distributed brand in Fruit drink segment with an 85%
marke t s ha re in Ind ia . F ro ot i r each es more than 1 0 l ak h retai l o ut le ts
through more than 1500 distributors and wholesalers directly and indirectly.
This is borne out by Parle Agro winning the Beverage Industry award for the
Best Managed Supply Chain 2002 and the Highest Retail Availability in the
year 2002. Frootis excellent distribution system has already been proved in
our market survey and analys is where 90% of the respondents agreed that
Frooti is readily available to them.
PROMOTION DECISIONSIn the context o f the market ing mix, p romot ion represents the various
asp ec ts o f marke ting commu nica tion , tha t i s, t he Commu nica tion o f
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information abo ut the p ro du ct w ith the g oa l o f g en erat in g a p os it iv e
customer response.
Promotion decisions include:
1 . Promotional s trategy (push, pull , etc)
2 . A dv er ti si ng
3. Personal sel ling & sales force
4 . Sales p ro mo tion s
5 . Publ ic re lat ions & publ ici ty
6. Marketing communications budget
PROMOTION:
In a strategic move, Parle Agro Ltd is revamping its marketing plans in
a bid to promote its flagship brand Frooti in the overcrowded category. In
fact, the company has taken a different marketing route by launching a host
of new retailing and packaging initiatives to pump up volumes. Three years
ago, Parle Agro introduced a mysterious character called Digen Verma and
created a hype around this person through an aggressive outdoor campaign
which was quiet a success. Parle Agro had introduced two characters called
Fro ot i and T i o n every 2 00 ml p ack o f F ro ot i a s p ar t o f i ts r et ai ling
ini t ia t ive. These two characters are being d isp layed on the packs o f the
drink. And through tongue twisters, puzzles and various interactive games,
the characters are en ter ta ining the ch ild ren as well as increas ing thei r
k no wled ge abo ut f amou s p er so na li ti es and cur rent a ffai rs . These two
characters are very different in nature. While Frooti is an affable girl who is
good at s tudies , Ti is a naughty boy who keeps running after Frooti to get
his home-work done. With this move, the company expects to share various
activities of its target audience--kids. Recently, Frooti was introduced in a
new tetra pack packaging in 65 ml quantity which is priced at Rs 2.50 each
and Parle is promoting it as 5 KA 2 OFFER, which means 2 packs for Rs
5.
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CHAPTER: II
REVIEW OF LITERATURE
A literature review can be just a simple summary of the sources, but it usually has an
organizational pattern and combines both summary and synthesis. A summary is a recap of
the important information of the source, but a synthesis is a re-organization, or a
reshuffling, of that information. Or it might trace the intellectual progression of the field,
including major debates. And depending on the situation, the literature review may evaluate
the sources and advise the reader on the most pertinent or relevant.
Nowlis (2000) Predicted the likelihood of switching between particular brand tiers due to
price promotions based on the(a) choice set composition; (b) asymmetric switching,
whereby consumers are more likely to switch up from a low tier to a promoted high-tier
brand than from a high-tier to a promoted low-tier brand, is reduced or eliminated if
consumers consider three price-quality tiers; and (c) the compromise effect is reduced when
the lowest tier brand offers a price promotion.
Gedenk & Neslin (1999) Was found in his study that the role of retail promotion in
determining future brand loyalty through its effect on purchase event feedback. Purchase
event feedback represented the effect of current purchases on future brand preference. It
was found that in-store price promotions were associated with negative purchase event
feedback compared to no promotion purchases.
Quester & Justin (1998) was found in his study that the purchase of consumer which
related to different consumption situations. While price remained the most important factor
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overall, all other attributes were ranked differently depending upon the intended usage
situation and the level of product involvement exhibited by respondents.
Erdem (1996) was found in his study that consumer preference for brand attributes were
modeled to depend on the attributes of brands bought on the previous purchase occasion.
The results indicated that the average consumer was habit persistent in all the product
categories studied. The proposed models were estimated on Nielsen scanner panel data for
margarine, peanut butter etc.
Gupta (1993) Was found in his study that the effectiveness of a sales promotion by
decomposing the sales bump during the promotion into sales increase due to brand
switching, purchase time acceleration and stockpiling. Results for regular ground coffee
suggested that more than 84% of the sales increase due to promotion came from brand
switching.
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CHAPTER- III
RESEARCH METHODOLOGY
A) DATA COLLECTION
1) Primary Source
Retailers
Consumers
2) Secondary Source
Website
Magazines and Newspapers
B) RESEARCH INSTRUMENTS
Questionnaire
C) SAMPLING PLAN
1) Sampling Unit: any individual who use fruit drinks?
Urban Consumers
2) Sample Size: How many people to be surveyed?
100 Units (of all age groups)
3) Sampling Procedure:
We have taken sample from following areas:
1) Kitchlu Nagar
2) Agar Nagar3) PCTE {Baddowal}
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4) Rajguru Nagar
CHAPTER- IV
DATA ANALYSIS
Data analysis is a process of gathering, modeling, and transforming data with the goal of
highlighting useful information, suggesting conclusions, and supporting decision making.
Data analysis has multiple facets and approaches, encompassing diverse techniques under a
variety of names, in different business, science, and social science domains. My analysis is
given below:
PREFERENCE OF CONSUMERS
TABLE: 1
TYPE OF DRINKS NO. OF RESPONDENTS
CARBONATED DRINKS 20
FRUIT DRINKS 80
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CHART: 1
INFERENCES
1. The consumers are becoming more health conscious .
2 . The market share of NCSD is growing.
3. Great opportunity for Frooti to capture this growing market.
IS FROOTI A HEALTH DRINK?
TABLE: 2
RESPONSE NO. OF RESPONDENTS PERCENTAGE
YES 28 35%
NO 38
CANT SAY 14 18%
Consumer will perceive any drink as a health drink if he / she think drinking
it will benefit his / her health.
This diagram shows the percentage of respondents who perceive Frooti as a
Health Drink.
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CARBONATED
DRINK
FRUIT DRINK
80 %
20 %
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CHART: 2
INFERENCES
1. Frooti is not perceived by the majori ty as a health drink.
2 . Health drink consumers should be targeted.
CONSUMER AWARENESS REGARDING VARIOUS
FLAVOURS OF FROOTI
TABLE: 3
FLAVOURS RESPONDENT PERCENTAGE
MANGO 78 78
GREEN MANGO 18 18
OTHERS 4 4
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YES
NO
CANT SAY
47%
18%
35%
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%respondents
0
10
20
30
40
5060
70
80
90
mango green mango others
%respondents
CHART: 3
INFERENCES:
1 . Thi s d iagram s ho ws the p ercentag e o f r es po nd en ts who a re aware
about the various flavours of Frooti.
2 . Less promotion of green mango flavor.
3 . Less acceptance of green mango flavor among consumers .
SHOULD FROOTI COME IN OTHER FLAVOURS?
TABLE: 4
RESPONSE RESPONDENTS PERCENTAGE
YES 62 77
NO 18 23
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YES
77%
NO
23%
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CHART: 4
INFERENCES:
1. This diagram shows the percentage of respondents who think that
Frooti should come in other flavours.
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WHICH OTHER FLAVOURS SHOULD BE THERE?
TABLE: 5
FLAVOURS RESPONDENTS PERCENTAGE
ORANGE 30 36PINE APPLE 27 33
GRAPES 18 23
OTHERS 5 8
36%
33%
23%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
ORANGE APINE APPLE GRAPE OTHER
OTHER
GRAPE
PINE APPLE
ORANGE
CHART: 5
INFERENCES:
1. In other flavors, consumers have gone for orange and pine apple
2. Consumers want Frooti in o ther f lavors .
3 . Huge market in f lavors o ther than Mango.
4 . Consumers also prefer s trawberry and lemon.
WHICH TYPE OF DRINK FROOTI IS?
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TABLE: 6
TYPE RESPONDENTS PERCENTAGE
FAMILY DRINK 39 49
CHILD DRINK 35 44
YOUTH DRINK 6 7
CHART: 6
INFERENCES:
1. Frooti is more of a family drink rather than a child drink.
2 . Frooti has market in al l age-groups .
IS FROOTI READILY AVAILABLE?
TABLE: 7
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RESPONSE RESPONDENTS PERCENTAGE
YES 72 90
NO 8 10
90%
10%
YES
NO
CHART: 7
INFERENCES:
1. This diagram shows the percentage of respondents who think Frooti is
readily available.2 . Good distr ibution channel of Frooti .
3 . Good demand for Frooti in the mar
.
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EFFECT OF PROMOTIONAL SCHEMES ON CONSUMER
TABLE: 8
RESPONSES RESPONDENT PERCENTAGE
SA 27 34%
AGREE 12 14%
NEUTRAL 17 22%
DISAGREE 16 20%
SD 8 10%
34%
14%
22%
20%
10%
0%
5%
10%
15%
20%
25%
30%
35%
SA A N D SD
SA
A
N
D
SD
CHART: 8
INFERENCES:
1. This diagram shows the percentage of respondents whose buying
behaviour is influenced by promotional schemes.
2 . Consumers are at tracted towards promotional schemes.
3. Buying decision of consumer can be changed through consumer
schemes.
CONSUMER AWARENESS REGARDING PACKAGING OF
FROOTI
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TABLE: 9
RESPONSE NO. OF RESPONDENTS PERCENTAGE
YES 64 80%
NO 9
CANT SAY 7 9%
PET BOTTLE
11%
9%
80%
YES
NO
CANT SAY
CHART: 9
TABLE: 10
RESPONSE NO. OF RESPONDENTS PERCENTAGE
YES 67 83%
NO 3
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CANT SAY 10 13%
TETRA PACK
83%
4%13%
YES
NO
CANT SAY
CHART: 10
TABLE: 11
RESPONSE NO. OF RESPONDENTS PERCENTAGEYES 76 95
NO 3
CANT SAY 1 2
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TIN CAN
95%
3%2%
YES
NO
CANT SAY
CHART 11
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GLASS BOTTLE
88%
10%2%
YES
NO
CANT SAY
CHART 12
INF
ERENCE
1. Consumer is well aware of packaging of Frooti.
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TABLE: 12
RESPONSE NO. OF RESPONDENTS PERCENTAGE
YES 70 88%
NO 8
CANT SAY 2 2%
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CONSUMER AWARENESS REGARDING AVAILABILITY OF
VARIOUS QUANTITIES OF FROOTI .
TABLE: 13
RESPONSE NO. OF RESPONDENTS PERCENTAGE
YES 40 50%
NO 31
CANT SAY 9 11%
65 ML
50%
39%
11%
YES
NO
CANT SAY
CHART: 13
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TABLE: 14
RESPONSE NO. OF RESPONDENTS PERCENTAGE
YES 66 82%
NO 13
CANT SAY 1 1%
200 ML
82%
17%
1%
YES
NO
CANT SAY
CHART: 14
TABLE: 15
RESPONSE NO. OF RESPONDENTS PERCENTAGE
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YES 40 50%
NO 34
CANT SAY 6 7%
500 ML
50%
43%
7%
YES
NO
CANT SAY
CHART: 15
TABLE: 16
RESPONSE NO. OF RESPONDENTS PERCENTAGE
YES 39 49
NO 34
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CANT SAY 7 9
1000 ML
49%
42%
9%
YES
NO
CANT SAY
CHART: 16
INFERENCE:
1. As Frooti in 65 ml quantity was recently introduced and half of the
respondents know about it, this shows good promotion and good
initial demand for new packaging .
CONSUMER PREFERENCE FOR VARIOUS QUANTITIES OF
FROOTI
TABLE: 17
SIZES RESPONDENTS PERCENTAGE
BELOW 100ml 16 20.4%
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200-250ml 22 27.4%
500ml 72 90%
1000ml 16 20.4%
20.4
27.4
90
20.4
0
10
20
30
40
50
60
70
80
90
BELOW 100ml 200-250ml 500ml 1000ml
BELOW 100ml
200-250ml
500ml
1000ml
CHART: 17
INFERENCES
1. There is good demand for al l the quanti t ies .
2 . Great demand fo r 500 ml .
3 . Introduction of 65 ml was a good move.
CONSUMER RESPONSE FOR THE MOST CONVENIENT
FORM OF PACKAGING
TABLE: 18
PACK RESPONDENT PERCENTAGE
TETRA PACK 24 30
PET BOTTLE 41 51GLASS BOTTLE 15 19
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30%
51%
19%
tetra packing
PET - BOTTLE
GLOSS BOTTLE
CHART: 18
INFERENCE
1) As F ro ot i was the f ir st to int ro du ce PET b ot tl e p acking in
N CS D c at eg or y, t hi s sh ow s i t w as t he r ig ht m ov e f ro m
convenience point of view.
Result &findings
1 . 78% of consumer aware about mango frooti,18% know about the green mango frooti.
2.77%of the respondents said that frooti should come in market in o thers
flavors.
3. According to respondents others flavors like orange, pineapple should bein market.
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4 .49% of the respondents cons idered f roo t i as family d r ink . And 44%
respondents considered it child drink.
5. Maximum respondents said promotional schemes really in impact on them
to buy frooti.
6. Most of the consumer aware of different types of packaging of available
in market.
SWOT ANALYSIS:
The overall evaluation of a ones strengths, weaknesses,
opportunities and threats is called SWOT analysis.
STRENGTHS OF FROOTI:
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1. Market leader in NCSD category-60% market share.
2. Innovative - First packaged Mango drink in Indian
market, first to introduce Tetra pack, PET bottle
packaging in NCSD category.
3. Quick market responder - Introduced 65 ml packaging to
cater different segments.
4. Frooti has got a very large quantity basket - available in
various quantities like 65 ml, 200 ml, 250 ml, 500 ml and 1
Litre.
5. Efficient distribution network-readily available.
6. Frooti is a health drink - Contains Vitamin A.
7. Frooti has got a strong Brand Equity.
WEAKNESSES OF FROOTI
1. Frooti is not perceived as a health drink. As per our
survey majority of our respondent didnt consider Frooti
has a health drink.
2. Frooti has limited variety of flavour - only mango and
green mango.3. Frooti means mango, syndrome in the mind of
consumers.
4. Margin given to retailers and distributors is less as
compared to its competitors.
5. The main target audience of Frooti is kids.
6. Frooti has no brand ambassador.
7. No brand expansion - Brand equity of Frooti is not
utilized properly.
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OPPORTUNITIES FOR FROOTI
1. Huge untapped unorganized sector in NCSD category.
2. Huge untapped market in other flavours - Orange,
Pineapples, Grape.
3. Growing market share of NCSD category.
4. Demographically, in the coming years around 55% of the
population will consist of below 35 years in age, which
should be major target market for Frooti.
5. Increasing health awareness among consumers - As per
our survey 88% of the respondents preferred fruit drink
to carbonated drink.
THREATS FOR FROOTI
1. Decreasing share in NCSD category - Fruit juice segment
consisting of Real and Tropicana is increasing at the rate
of 20-25% per annum as compared to sluggish growth in
other segment.
2. Presence of huge unorganized market.
3. High consumer preference for flavours other than mango
and green mango.4. Competition with global giants - Coke and Pepsi.
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RECOMMENDATIONS FOR FROOTI ON THE BASIS OF
MARKETING MIX
PRODUCT
Frooti in Others Flavours:
1. As per our survey, 77% of the respondents want Frooti in
flavours other than mango and green mango like Orange,
Pineapple and Grape.
2. Now, the most striking fact is that Frooti is available in
Orange,
Strawberry and Pineapple flavours in se lected ci ti es in
Maharashtra like Mumbai and Pune.
3. These flavours are not available in Hyderabad and
Secunderabad region.
4. Our main competitor Real is availab le in many flavours
like mango, orange, guava, grape, apple, pineapple and
mix fruit etc.
5. So, to compete with Real and other competitors, the
present variants of Frooti in orange, pineapple and
strawberry flavour should be made available all over
India.
6. Frooti should also be made available in grape flavour as
there is a great demand for this flavour, especially in theunder 20 age-group segment.
2. The Appy case :-
1. Appy is a new product launched by the Parle agro. It is a
nectar drink which comes in apple flavour.
2. Now the question is that Parle agro has not used the brand
equity of Frooti in branding Appy.
The reasons for this can be :-
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1. Appy is a nectar drink and is in a different segment from
Frooti which is in the fruit drink segment.
2. Parle agro is promoting Appy as a look alike for
champagne drink and is targeting the upper income class
consumers.
PLACE:
1. Retail chain of NCSD in India
2. To capture the huge unorganized sector, Frooti should be
promoted as a retailing chain outlet in India on the lines
of Barista which is in the retailing of coffee.
3. This outlet should contain all the variants of Frooti in
different flavours and quantities and it should also be
served in glasses.
4. Also, this outlet can be used to provide fresh fruit juices
in various flavours at a very reasonable price. This move
will help Parle to capture a major chunk of the huge
unorganized sector which is more than Rs 500 crore.
5. But, this is a highly risky move and requires lot of capital
so, Parle should first experiment by opening a few outlets.
PROMOTION:
1. The nutrient content of Frooti should be highlighted onthe package so that the consumer can become more aware
and perceive Frooti as a Health drink.
2. The quality standard of Frooti should be approved by a
reputed authority or organization (like ISO series) and
this be promoted.
3. Taking the cost consideration into account, Parle Agro can
go for more distributor and retailer margins, as by getting
more margins the retailers and the distributors will
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promote Frooti more efficiently. It should also provide
more consumer schemes.
4. Parle can also promote Froot i by providing various of fer in
g like Refr igerators.
BRAND AMBASSDOR FOR THE FROOTI:
1. Frooti is needed to be promoted as a health drink and
should target not only the kids but also the other
members of the family.
2. For this Frooti should project its brand ambassador
who will help consumers perceive it as a health drink.
3. The Brand ambassador should be someone who
symbolizes good health and along with him / her a
cartoon character (someone very popular among kids)
should also be introduced so that Frooti does not loses
its current taret audience-kids.
SUGGESTION:
1. Frooti can go for Salman Khan as a brand ambassador as
he is very popular in India and symbolizes good health.
(Punch line can be something like After gym, have aFrooti) Along with him, Frooti should also go for a
famous cartoon.
2. Character like Scooby Doo or Pokemon to target the kids
and both of them should feature together in the
advertisement.
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CONCLUSION:
We can conclude the following:
1. By taking some initiatives, Frooti can compete with the fruit
juice segment comprising of Real and Tropicana, and can
maintain its position as a market leader in the NCSD
category.
2. The consumers response to the new packaging (PET botte
and 65 ml Tetra pack) of Frooti is positive as shown in the
survey.
LIMITATIONS:
1. The corporate office of Parle Agro is situated in Mumbai
and so we could not gather information from there.
2. We could not find the reason why Frooti was not
introduced in other flavours like orange, pineapple etc on
all India basis (We sent an E-Mail to the company but
didnt get any reply).
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OPPORTUNITIES FOR FROOTI
6. Huge untapped unorganized sector in NCSD category.
7. Huge untapped market in other flavours - Orange, Pineapples,
Grape.
8. Growing market share of NCSD category.
9 . De mo gra ph ically, in the co min g ye ar s aro un d 5 5% o f the
population will consist of below 35 years in age, which should
be major target mar ket for Frooti.
1 0. I ncre as in g hea lth awa ren ess am on g c ons ume rs - A s p er ou r
survey 88% of the respondents preferred fruit drink to carbonated
drink.
THREATS FOR FROOTI
5. Decreasing share in NCSD category - Fruit juice segment
consisting of Real and Tropicana is increasing at the rate of 20-
25% per annum as compared to sluggish growth in other segment.
6. Presence of huge unorganized market .
7. High consumer preference for flavours other than mango and
green mango.
8. Competit ion with global giants - Coke and Pepsi .
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RECOMMENDATIONS FOR FROOTI ON THE
BASIS OF MARKETING MIX
PRODUCTFrooti in Others Flavours:
7 . As pe r o ur s urv ey, 7 7% of th e res po nde nts w an t Fr ooti in
f lavour s o ther t han mango and g reen mango l ike Orange,
Pineapple and Grape.
8. Now, the most s tr iking fact is that Frooti is available in Orange,
Strawberry and Pineapple flavours in selected cities in
Maharashtra like Mumbai and Pune.
9. These flavours are not avai lable in Hyderabad and Secunderabad
region.
1 0. O ur main co mp etito r Rea l is av aila ble in man y fla vou rs lik e
mango, orange, guava, grape, apple, pineapple and mix fruit etc.
1 1. S o, to co mp ete with Rea l an d oth er co mp etito rs , th e p re se nt
variants of Frooti in orange, pineapple and strawberry flavour
should be made available all over India.
12. Frooti s hould a lso b e made a vailable i n grape f lavour a s
there is a great demand for this f lavour, especial ly in the under
20 age-group segment.
2. The Appy case :-
3. Appy is a new product launched by the Parle agro. It is a nectar
drink which comes in apple flavour.
4. Now the question is that Parle agro has not used the brand equity
of Frooti in branding Appy.
The reasons for this can be :-
3. Appy is a nectar drink and is in a different segment from Frooti
which is in the fruit drink segment.4. Parle agro is promoting Appy as a look alike for champagne drink
and is targeting the upper income class consumers.
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PLACE:
6. Retai l chain of NCSD in India
7 . To ca ptu re th e h ug e u no rg an ize d s ecto r, Fr oo ti s ho uld b e
promoted as a ret ai ling cha in out le t in India on the l ines of
Barista which is in the retailing of coffee.
8. This outlet should contain al l the variants of Frooti in different
flavours and quantities and it should also be served in glasses.
9 . Also, thi s out le t can be used to provide f resh f ru it juices in
various flavours at a very reasonable price. This move will help
Parle to capture a major chunk of the huge unorganized sector
which is more than Rs 500 crore.
10. But, this is a h ighly risky move and requires lot of capital
so, Parle should first experiment by opening a few outlets.
PROMOTION:
5. The nutrient content of Frooti should be highlighted on the package so that
the consumer can become more aware and perceive Frooti as a Health drink.
6. The quality standard of Frooti should be approved by a reputed authority or
organization (like ISO series) and this be promoted.
7. Taking the cost consideration into account, Parle Agro can go for more
distributor and retailer margins, as by getting more margins the retailers and
the distributors will promote Frooti more efficiently. It should also provide
more consumer schemes.
8. Parle can also promote Frooti by providing various offering like
Refrigerators.
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BRAND AMBASSDOR FOR THE FROOTI:
4. Frooti i s needed to be promoted as a heal th dr ink and should
target not only the kids but a lso the other members of the
family.
5. For this Frooti should project i t s brand ambassador who wi ll
help consumers perceive it as a health drink.
6 . The Brand ambassador should be someone who symbolizes
good hea lth and a long with h im / her a car toon character
(someone very popular among kids) should also be introduced
so that Frooti does not loses its current taret audience-kids.
SUGGESTION:
3. Frooti can go for Salman Khan as a brand ambassador as he i s
very popular in India and symbolizes good heal th. (Punch l ine
can be something l ike After gym, have a Frooti) Along with
him, Frooti should also go for a famous cartoon.
4 . Character l ike Scooby Doo or Pokemon to t a rget the k ids and
both of them should feature together in the advertisement.
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CONCLUSION:
We can conclude the following:
By taking some initiatives, Frooti can compete with the fruit juice
segment comprising of Real and Tropicana, and can maintain its
position as a market leader in the NCSD category.
The consumers response to the new packaging (PET botte and 65 ml
Tetra pack) of Frooti is positive as shown in the survey.
LIMITATIONS:
3. The corporate office of Parle Agro is situated in Mumbai and so
we could not gather information from there.
4. We could not find the reason why Frooti was not introduced in
other flavours like orange, pineapple etc on all India basis (We
sent an E-Mail to the company but didnt get any reply).
BIBLIOGRAPHY:
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Erdem Tulin (1996): A dynamic analysis of Market Structure based on Panel Data,
Marketing Science, Vol. 15 Issue 4, pages (359-363).
Gedenk Karen & Neslin Scott A (1999): The Role of Retail Promotion in determining
Future Brand Loyalty: Effects on Purchase Event Feedback, Journal of Retailing,; winter ,
vol. 75, Issue4, pages (433-437).
Gupta Sunil (1993): Reflections on `Impact of Sales Promotions on When, What, and How
Much to Buy, Journal of Marketing Research (JMR), Nov, Vol. 30 Issue 4, pages (522-526).
Nowlis Stephen (2000): Sales Promotions and the Choice Context as Competing
Influences on Consumer Decision Making, Journal of Consumer Psychology, Vol. 9, Issue
1, pages (11-16).
Quester Pascale G. & Smart Justin (1998): The influence of consumption situation and
product involvement over consumers, Journal of Consumer Marketing, Vol. 15, Issue 3,
pages (220-224).
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QUESTIONNAIRE
Name:Age:
Occupation:
1. Do you drink Soft Drinks?
Yes No
2. If yes, which Soft Drinks?
Carbonated Drinks Fruit Drinks
3. Do u know Frooti is available in many flavor?
Yes No
4. If yes what are they?
Mango
Green mango
Other .
5. Should Frooti come in other flavor?
Yes No
6. If yes, which flavor?
Orange
pine apple
Grape
Other
7. Is Frooti a health drinks?
Yes No8. What type of drink frooti is?
Family drink Child drink youth drink
9. Do you agree that advertising influence you to drink Frooti?
Strongly agree agree cant say disagree strongly disagree
10. Do you know Frooti is available in many packages?
Yes No
if yes
11. Which packages do u prefer most?
Pet bottle
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Glass bottle
Tetra pack
12. Do you know Frooti is available in many quantities?
Yes No14. Which quantity do you prefer most?
65 ml
200 ml
500 ml
1000 ml
15. Do u think frooti is the best drink?
Strongly agree agree cant say disagree strongly disagree