Fruitzone India Limited Case Study

                                                            National University

                                               MKT 634

                                           Market Research

                                                                             July 2019

                                                                    Week One: Case Study

           Fruitzone India Limited

Question 1: Has the management decision problem been defined appropriately? Explain in detail.

Answer:  The management decision problem has been defined appropriately by the organization to research company. Mr. Hemant, the MD of Fruitzone India Limited had decided to launch new fruit juice. He asked Preeti , the marketing manager to conduct a detailed study to examine different issues related to the launch of sugarcane juice and they would then plan to conduct detailed market Over the week, Preeti looked at recent fruit juice industry reports and also reports on the health benefits of sugarcane juice with detailed findings to him. After week so they decided that it might be worth considering the feasibility of a new sugarcane-based juice. He wanted to study the performance of the beverage’s division, Hemant asked the business intelligence team to provide him with the market research and sales reports for the last five years. He was especially interested in the juice brand Tropiviva. He is more was a health freak and loved fruits and fruit juices and always wondered Tropiviva did not offer more variants his favourite, sugarcane juice, was not offered by Tropiviva. India had large climatic and geographical variations and was blessed with a few fruit varieties. Consumer for juices also varied across regions and seasons.The  team decided to entrust a marketing research company, India Monitor International (IMI), to conduct the market research study at Fruitzone India Limited, the Indian subsidiary of the multinational company Gypsy Inc, the global leader in the beverages industry.

In short,Mr. Hemant thought that there is an opportunity in the fruit juice market which help us increase our market share.

b. And he was confident that they can achieve good sales by launching a new flavour of juice i.e., sugarcane.

c. The main weightage is given to the pros and cons of packaged sugarcane juice to make the decision.

Question 2. Critique the overall research plan prepared by India Monitor International?

Ans: - India Monitor International (IMI) conducted the market research in two phases, exploratory research and confirmatory research. The exploratory research was sub divided into secondary data analysis, focus group discussions and in-depth interviews.: -

1. Exploratory Research – This is conducted in three parts: -

1. Secondary Research – This involved using industry reports and internal marketing data of Frutizone to investigate performance of Tropiviva products and compare it with competitors’ products and demand for their current products in the market. The sources like newspapers, magazines and online databases were also used. IMI studied the current fruit juice market and reviewed some secondary research reports that give the clear picture of sugarcane juice in the market.

1. Primary data from the Focus Group Discussions- In this the focus group participants were given online survey in which participants who consumed packed fruits juices on a frequent basis participated in discussions. These questions asked participants such as a age, profession, marital status etc.

1. Primary Data from In-Depth interviews-The regional sales manager of the store managers were conducted to identify recent trends in the packed juice market. Fruit juice vendors were also interviewed to understand customer Specifically, three roadside vendors of sugar cane juice were interviewed. Combining the observations from the moderated focus group discussions, the in-depth interviews and secondary data, a research matrix that contained the seven research questions mapped with the justification for the information need and potential information sources was created and several retail juice consumption behaviors.

1. Confirmatory Research – In this it has been planned to be done with a detailed survey of potential customers and if favorable then test market simulation did at one or two cities.  

Question3: Is the exploratory research plan prepared by IMI appropriate? Explain in detail?

Answer :  The Indian Fruit Juice Industry large part of the fruit juice market in India is still untapped due to poor infrastructure, storage facilities and a highly unorganized market, mainly constituted by roadside vendors. in the juice segment, unorganized comer shops and roadside vendors are still possible for more than 90% of sales. However, Indian customers are now moving towards consuming packed fruit juices. The major driving factors for this shift are increasing per capita disposable income and increasing health consciousness. The trends in the Indian fruit juice market were optimistic. Sugarcane Opportunity Being a sub-tropical country with prolonged summers, India has a large population which seeks relief from heat in beverages like cola, fruit juices etc. With increasing levels of health- consciousness among people, the demand has shifted from cola beverages to packed fruit juices. In such a scenario, there is a huge potential for juices which also have a cooling effect- lime and sugarcane being the major ones. Though lime is already seeing a lot of supply in the packaged form, sugarcane supply is yet to catch up with demand. Insights from Focus Group Discussions People consume packed fruit juices along with breakfast or lunch, at parties or as meal supplements. Most of the consumption happens at homes for families, and with friends for the young Families with busy parents tend to use packed juices for children and older family members as they perceive these to be hygienic and healthy. Families bought packaged juices to inculcate good drinking habits among children. Ease of consumption and a ready option for guests are all these as inferior to fresh fruit juice and both target segments were concerned about the effects of preservatives. Sugarcane juice is consumed during summers predominantly at retail outlets, for its hydrating effects. Consumers said it was hard to imagine sugarcane juice coming into the home in storable form. In summary, freshness, great taste, hydrating and cooling effects were the key selling points for the focus group participants. In winter tastier variants like ginger, lime etc. might be tried to bring in people baying it primarily for its taste so key factors favoring packed fruit juices. Youth Insights from In-depth Interviews Retail Store Managers and Regional Sales Mana Fresh fruit juice is any day better than packaged ones, as the prime reason for drinking juices is good health. For family consumption, it is not possible to go to a kiosk/juice stall every time, hence it is better to bring the juice home in packaged form. The brand adds trustworthiness to the product, thus increasing the trial rate for any new offering. Also, consumers prefer buying the brand Real" in packaged juices of 500ml quantity than “Tropiviva" since "Real" is an Indian brand. Also, consumers largely tend to favor tetra packs over bottles. There is some difference in the taste of packed juice compared to fresh juice. If the taste was millet, people might consume mere of packaged fruit juice. might consume more Sugarcane Juice V typically in summers for its refreshing effects, and good Sugarcane juice has taste comes a close second. However, for children, it is usually the other way around. Consumers like watching the juice being prepared right in front of their eyes. They do not sugarcane juice can be preserved for long and still retain its freshness. Consumers itis not good for old people/ diabetics. Flavored cane juice with masala or lime is a which is already available in bottles, is a competitor for sugarcane juice.