Sunday, August 9, 2009

Tropicana


Fruit juices are perceived as anytime beverages, with consumption being spread more or less evenly between the mid-mornings, afternoons and evenings. Moreover, Generation Now is as much inclined to sipping fruit juices as colas, with teenagers driving the maximum trials.

Among packaged fruit beverages, the `awareness to trial' ratio of PepsiCo's Tropicana juice brand has been rated the highest. Up to 17 per cent of the respondents were aware of Tropicana, while the brand's trial stood at 11 per cent. In addition, eight per cent of the respondents stocked the brand at their homes.

Another interesting finding is that the average Indian may have a legendary weakness for mango, but when it comes to preference of fruit-based juices; his choices are in tune with international trends. Therefore, it is orange juice that is the most preferred fruit juice flavour in India, followed by apple, sweet orange and mixed fruit.

The findings indicate that most packaged juice-drinking consumers’ travel abroad on Holidays. Other attributes of branded juice consumers include employment of domestic help, ownership of assets and credit cards, and health consciousness with 80 per cent respondents going to aerobic classes or working out at gymnasiums.

Understandably, therefore, awareness and trial levels of packaged juices are higher within the SEC A category, than among SEC B consumers, the majority of whom rated these as aspirational.

As a clear indication that consumers perceive fruit juices as a grocery purchase, 60 per cent of the respondents consume fruit juices at home. While 55 per cent of the respondents consumed 1-litre packs at home, 45 per cent consumed 200-ml packs.

The Rs 100-crore packaged fruit juice market is estimated to be growing at 25-30 percent annually, with Tropicana and Dabur Foods' Real holding about 40 per cent market share each.

Tropicana is a subsidiary of PepsiCo family, a leader in foods and beverages. Tropicana went Public in 1969. It was purchased by Beatrice in august 1978 for $490 million in cash and stock and then sold to The Seagram Company Ltd., the Canadian alcoholic beverage maker, for $1.2 billion in March 1988. Later, they sold it to PepsiCo in 1998.

The juice business was sold to the beverage giant for $3.3 billion in cash. Rodkin was then the President and CEO of the company. Tropicana Products, Inc.: the leading producer of chilled orange juice and claims the top spot in the overall U.S. orange juice market, with a share of 33 percent. Tropicana distributes its products in 23 countries.

Initially Tropicana was launched with a bitter taste but gradually they changed it to sweet to attract the Indian consumers. In a way, it revamped their products to suit the Indian palate. To target the people who feel health as “The Most Important” factor to purchase a drink, Tropicana took on the health awareness and from now on “The Indian Medical Association (IMA)” will endorse PepsiCo’s Tropicana fruit juices-“partnership for health”! It Launch of 'Tropicana Twister’ to target the young generation. In addition to this, it introduced new flavors i.e. mango nectar, guava pulp and litchi juice- tickling the Indian taste buds. Advertisements were a perfect mix of modern and traditional trade via trial generations, TV, radio, outdoors and consumer-trade promotion.

Since, its market share is 30% - after Minute Maid and Real – there is an opportunity to increase this and make Tropicana a leader in this segment.


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