The document discusses the fruit beverage market in India and a company called Fruit Bar Inc. that aims to produce organic fruit juices. It provides details on the market size and growth, Fruit Bar's product offerings and target markets, and financial projections that estimate profits will increase from 11 lakhs in the first year to over 35 lakhs in the third year as sales grow.

1. Team Members
Ajaypal Singh
Gargi Kapadia
Chandan Bangera
-Mr. Rajeev Bal

3. Beverages Market in India
Alcoholic
Drinks
Beer Spirits
Wine
Soft Drinks
Bottled
Water
Carbonated
Drinks
Juices
Energy
Drinks

4.  Branded fruit beverage market in India is
estimated to be worth Rs. 1,200crore
(nectars, drinks and juices combined).
Juices - over 85% pulp content
Nectars - 20% to 85% pulp content
Fruit Drink – Less than 20% pulp content
Segment Market Share
Juices 30%
Nectors 10%
Fruit Drink 60%

5.  The Fruit Drink market has grown at a 20% to 25% rate.
 Of this, more expensive juices segment has grown at rate
of 40% this year. It accounted for only 15% of the fruit
beverage 3 years back.
 In–home consumption of juices has gone up from 30%, 3
years back to 80% today.
 Mango based drinks account for two thirds of fruit drinks
industry.
 More than 80 % of sales happen through the unorganized
route - juice centers, street corner shops and so on.

6. Produce Fruit Juice & Fruit Drinks.
Unique Position in terms of using Organic Fruits with
different flavors, for utmost customer satisfaction.
An Environment-Friendly Company Dedicated to sustainable
development and corporate social responsibility, as a service
and preservation of nature.
Headquarter in Mumbai.
Satellite Branches in Major Metros.

7. “Fruit Bar takes its cue from Mother nature herself.”
Simplicity, Purity and Balance are the three pillars
upon which our juice line is built.
We make use of nature's own gifts by nourishing our
bodies with only locally sourced, organic fresh fruits.
Using the purest produce we can lay our hands on
and ensure that every Fruit Bar bottle that leaves our
kitchens is a well thought out and encouraging
prescription for health - from the inside out.

8. “We at Fruit Bar envision a bright and prosperous future.”
Nature has provided us with the necessary elements and
we have the knowledge and experience to accomplish it.
Our customers’ families are our top priority; providing
healthy beverages for the entire family to enjoy is our aim.
Using the best that technology has to offer and the most
experienced staff we hope to continue on our journey to be
the first choice in beverages.
Mother Earth gave us the tools and we will persevere in
perfecting the juice-making process.

9.  India currently produces about
50 million tones of fruits, which
is about 9% of the world’s
production of fruits.
 Though India has a strong raw
material base, it has been unable
to tap the potential for
processing and value addition in
perishables like fruits and
vegetables.
 Only about 2 % of the fruits and
vegetables in India are
processed, which is much lower
when compared to countries like
USA (65 %), Philippines (78%)
and China (23)%.

10. Factors Driving Demand for Our Product:
 Changing age profile- A relatively larger share of young
population which has the ability to spend on processed foods.
 Increase in income- The middle and upper middle income
groups growing at a faster rate than in developed countries
resulting in higher spending on food.
 Social changes- Increasing number of working women.
 Life style factors- Increasing health consciousness and need
for convenience fruit drink.
 Availability of Organized Retail outlets- These provide the
much needed forward linkages.

11. “A well Defined Target Market is the first element to a
successful marketing strategy.”
Fruit Bar Inc. will diversify their market by producing organic
fresh fruit juices.
It is healthier with the combination of vitamins higher than
any other drinks.

12. Primary Market
• Kids (fond of fruit juice
specially mango and
strawberry)
• Teens (tendency to
experiment)
• Youth (experimental and
buying power / diet
conscious)
• Working People
(refreshment)
• Housewives
• Elderly People
Secondary Market
• Movie Theaters / Malls
• Amusement Parks
• Schools / Colleges
• Airlines / Railways
• Hotels / Restaurants / Pubs
• Sports Clubs

13. “Market segmentation is a marketing strategy that involves dividing a
broad target market into subsets of consumers who have common
needs and priorities, and then designing and implementing strategies to
target them.”

14. Geographic
Fruit Bar will seek to serve both
domestic and international
customers.
Metropolitan Cities, major
cities/towns of the states.
Density of Area: Urban, Semi-urban,
Rural.
Climate: Tropical
Demographic
Age – all age group
Gender – Both Male and Female
Income – middle & hi-end consumer
Occupation – student, working and
retired people
Nationality/race – doesn’t matter
Psychographic
Taste Drinkers – Trying something new
Adults Lifestyle – Dieters / Health
Consciousness
Youth possibly wanting to drink what
adults drink
Behavioral
Benefit sought – Trendy Drinkers /
Nutrition Alternative
Brand loyalty – Diet and Health
conscious adults
Attitude – Enthusiastic and Positive
Youth

15. STRENGTH
1) Organic Healthy Product
2) Different attractive packaging as per need
3) Original Fruit Taste with Pulp
4) Fresh and Energetic
5) Reasonable Price
6) Anti - Oxidant
WEAKNESS
1) Seasonal Availability of Fruits
2) Late Entry into the Market
3) Dependence On Monsoon
OPPORTUNITY
1) Participation with a growing Industry
2) Competitive advantage over
carbonated soft drinks
3) Possible deal with Cricket
Associations
THREATS
1) Cut Throat Competition
2) Unstable Government Policies
3) Rising Global Warming
SWOT

17. “Organic is a 100% fruit juice which will be produced and marketed by
the Fruit Bar Inc.”

18.  Our product lie in Introduction Period of
PLC:
 Low sales
 Negative profits
 Innovator customers
 Objective: To create awareness of
product
 Offer a basic product
 Selective distribution
 Awareness – dealers and early adopters
 Induce trial via heavy sales promotion

19.  In the initial phase we would be outsourcing fruit
processing and packaging of Fruit Juices under Fruit Bar
brand.
 Fruits such as Orange, Apple, Pineapple etc would be
purchased from Kullu. Fruit Processing & Packaging would
be outsourced to local producer.
 Mango would be purchased from Hazira and Dahej.
 Fruit Processing & Packaging would be outsourced to local
producer.
 Mode of Transport: Road Transport

20. • As a new comer our pricing strategy is to introduce our products in the
market at lower prices so as to create huge demand in the market and then
compete with other competitors.
• As we come up in the demand, we will increase our prices and will provide
more efficient and affordable juices.
Penetration Pricing:
 Our product will be lie on
penetration strategy
with high quality & low price.
 For introducing new product .
 Price low to capture market share.
 Expect to make profit in volume.

21. Product
name
Cost of raw
material
Production
Cost
Marketing
Cost
Profit Price per
unit
Retailers
selling price
Blood
Orange
Juice
15 4 5 8 32 40
Apple Juice 15 4 5 8 32 40
Summer
fruit with
mango and
peach
18 5 5 8 36 45
Raspberry
and Apple
Juice
21 6 5 8 40 50
Passion
Fruit
Orange and
21 6 5 8 40 50

22. • As we are in the Introduction phase, our objective is
to create brand awareness through Informative
Advertising.
• Use of Print Media, Radio Advertisement,
Hoardings in Public Spots, Sample Distribution,
Organizing Events, TV Commercial etc.
• Tie Up with major Cinema halls to promote our
products during Intervals.
• In-film advertising, in its most effective form, is
about a brand being a part of the cinema's content.

23. Social Networking: In order to reach out to the TA and ensure that they
feel more connected with the brand it is necessary to start making
conversation.
•Creating a community on facebook.
• Creating a Fan page on facebook.
• This will enable the brand to keep its TA engaged and updated on the
introduction of new flavors and events.
•Creating an active account on a micro-blogging site such as twitter,
where regular tweets on product and event updates will ensure
interactivity.
• Followers will be encouraged to tweet their suggestions on new
flavors.

24. Target of capturing 5% of the market share within a year
and 30% by 2016-end.
 Initially we would be outsourcing the processing of fruits,
but after 3 years we would check the feasibility of starting our
own processing plant.
 R&D Department to be set up by early2015 early, in order
to facilitate innovation in existing products.
 We would open Satellite Branches in Major Cities to
facilitate product training & improve on Market Share.

25. No. Particulars 1st Year 2nd Year 3rd Year
A Installed Capacity (In Tonnes) 1070 1070 1070
Capacity Utilisation 75% 85% 85%
Sales Realisation(20% growth yoy) 115.00 138.00 165.60
B Cost of Production
Raw Materials 54.75 60.23 66.25
Packing Materials 4.25 4.68 5.14
Salaries 21.25 23.38 25.71
Stores and Spares 1.50 1.65 1.82
Selling and Distribution 8.5. 9.35 10.29
Administrative Expenses 5.00 5.50 6.05
Total 95.25 104.78 115.25
C Profit before Interest and Depreciation 19.75 33.23 50.35
Interest on Term Loan 3.32 3.32 3.32
Interest on Working Capital 0.28 0.28 0.28
Depreciation 2.23 2.23 2.23
Net Profit 13.92 27.40 44.52
Income-tax @ 20% 2.78 5.48 8.90
Profit After Tax in lakhs 11.14 21.92 35.61