Minute Maid

Submitted to:

Sir Bilal Ilyas

Group members:

Hashir Khan 11589

Sehar Aslam 11581

Khadija Iqbal 11577

Sarfraz Khan 11575

Umer Asif 11529

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Minute Maid

Table of ContentsEXECUTIVE SUMMARY....................................................................................................................4

History Of Minute Maid.................................................................................................................6

Minute Maid in Pakistan.............................................................................................................6

COMPANY’S MISSION.......................................................................................................6

COMPANY’S VISION..........................................................................................................7

Our Values................................................................................................................................8

COMPANY’S VALUES........................................................................................................8

At Minute Maid we are committed to providing organic and hygienically processed food products to our customers.Papaya Pulp.........................................................................................8

Papaya Pulp....................................................................................................................................9

Description.................................................................................................................................9

Uses........................................................................................................................................9

SITUATIONAL ANALYSIS................................................................................................................10

MICRO ENVIRONMENT.......................................................................................................10

INTERMEDIARIES.................................................................................................................10

CUSTOMER...................................................................................................................................13

MACRO ENVIRONMENT................................................................................................................14

DEMOGRAPHICS...................................................................................................................14

ECONOMIC FACTORS...............................................................................................................14

POLITICAL FACTORS...........................................................................................................14

CULTURAL FACTORS..........................................................................................................15

TECHNOLOGICAL FACTORS..............................................................................................15

MARKET ANALYSIS........................................................................................................................16

MARKET SIZE........................................................................................................................16

MARKET GROWTH TREND............................................................................................................16

COMPETITORS ANALYSIS..............................................................................................................17

Strengths and Weakness analysis of competitors.......................................................................20

CORE COMPETENCIES OF KEY PLAYERS........................................................................................21

EVALUATING THE CUSTOMERS IN TERMS OF CORE NEEDS AND WANTS.....................................22

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Minute Maid

THE BUYING HABITS OF CUSTOMERS...........................................................................................22

Budgeting.....................................................................................................................................24

DIFFERENTIATION AND POSITIONING STRATEGY.........................................................................25

PROMOTION.................................................................................................................................28

PROMOTIONAL BUDGET...............................................................................................................29

SALES PROMOTION.......................................................................................................................29

Direct Marketing...........................................................................................................................30

POSITIONING................................................................................................................................31

TARGET CUSTOMER......................................................................................................................31

REGULAR USERS...........................................................................................................................31

Summary of Healing Properties of Papaya..................................................................................32

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Minute Maid

ECUTIVE SUMMARY

This report is based on Papaya Pulp Juice . Papaya Pulp is A Fast Moving Consumable

Good (FMCG) by Minute Maid. Minute Maid has a reputable history of making

famous and delicious products, which are admired by its ultimate customers and

consumers with the passage of time. Now Company has recently introduced its New

Product Papaya Pulp Juice. We made this report about this product in which different

marketing aspects are discussed.

The objective of this report is to sketch a plan for Papaya Pulp Juice so that it can achieve

it sales target. We have done a complete Market Analysis of this product keeping in view

the affects of Micro and the Macro Environmental factors that can help in the research

and development of Papaya Pulp Juice.

Buying Behavior of the customers is analyzed and a complete marketing goal is set for

the product.

Finally we have implied the Marketing Mix strategy to see whether makes Papaya Pulp is

a market leader or not.

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Minute Maid

History Of Minute Maid

In 1945, the National Research Corporation (NRC) of Boston, Massachusetts, developed

a method of concentrating orange juice into a powder using a high-vacuum evaporation

process previously developed for dehydrating medical products for use in the U.S. war

effort. The US Army had a need for 500,000 lb (227,000 kg) for the war, so NRC created

a new branch, the Florida Foods Corporation. Led by John M. Fox, the company won the

government contract for $750,000.The war ended and the contract was canceled before

the factory could be built, but with investment, the company moved forward with a

product.

Rather than selling powder to the public market, the company decided to create frozen

orange juice concentrate, using a process that eliminated 80 percent of the water in

orange juice. A Boston marketing firm came up with the name Minute Maid, implying

the juice was quick and easy to prepare

The first shipment took place in April 1946. The same month, the company was renamed

Minute Maid in Pakistan

Minute Maid entered the Pakistani market in 2008. Here they have used the same

advertising concept as they have used in India i.e. "where is the pulp?" as both countries

market are similar to each other

COMPANY’S MISSIONOur mission declares our purpose as a company. It serves as the standard against which

we weigh our actions and decisions. It is the foundation of our Manifesto.

To refresh the world in body, mind and spirit.

To inspire moments of optimism through our brands and our actions.

To create value and make a difference everywhere we engage

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Minute Maid

COMPANY’S VISIONOur vision guides every aspect of our business by describing what we need to accomplish

in order to continue achieving sustainable growth.

•People:

Being a great place to work where people are inspired to be the best they can be.

•Portfolio:

Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy

people's desires and needs.

•Partners:

Nurturing a winning network of customers and suppliers, together we create mutual,

enduring value.

•Planet:

Being a responsible citizen that makes a difference by helping build and support

sustainable communities.

•Profit:

Maximizing long-term return to shareowners while being mindful of our overall

responsibilities.

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Minute Maid

Our ValuesOur values serve as a compass for our actions and describe how we behave in the world.

•Leadership:

The courage to shape a better future

•Collaboration:

Leverage collective genius

•Integrity:

Be real

•Accountability:

If it is to be, it's up to me

•Passion:

Committed in heart and min

COMPANY’S VALUES

Enterprise

Empowerment

Accountability

Trust

Teamwork

At Minute Maid we are committed to providing organic and hygienically processed food products to our customers.

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Minute Maid

PAPAYA PULP

Our farm will yield Organic Papaya from June- September. and weight of each fruit

varies from 1.25 Kg. - 1.5 Kg.

DESCRIPTIONDeliciously sweet with musky undertones and a soft, butter-like consistency, it is no

wonder the papaya was reputably called the "fruit of the angels" by Christopher

Columbus. Once considered quite exotic, they can now be found in markets throughout

the year. Although there is a slight seasonal peak in early summer and fall, papaya trees

produce fruit year round.

USESPapaya has many uses, including as food, as cooking aid, in medicine. The stem and the

bark are also used in rope production. The ripe fruit is usually eaten raw, without skin or

seeds. The unripe green fruit of papaya can be eaten cooked, usually in curries, salads and

stews. It has a relatively high amount of pectin, which can be used to make jellies.

Green papaya fruit and the tree's latex are both rich in an enzyme called papain, a

protease which is useful in tenderizing meat and other proteins. Its ability to break down

tough meat fibers was used for thousands of years by indigenous Americans. It is

included as a component in powdered meat tenderizers.

Papaya is marketed in tablet form to remedy digestive problems. Papain is also applied

topically (in countries where it grows) for the treatment of cuts, rashes, stings and burns.

Papain ointment is commonly made from fermented papaya flesh, and is applied as a gel-

like paste. Harrison Ford was treated for a ruptured disc incurred during filming of

Indiana Jones and the Temple of Doom by papain injections.

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Minute Maid

SITUATIONAL ANALYSIS

MICRO ENVIRONMENT

INTERMEDIARIES

Minute Maid follows two ways of collecting raw fruits. They are direct collection and

indirect collection.

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Minute Maid

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Collection Mechanism

Direct Collection Indirect Collection

* IntermediariesProvide Raw Material

* Minute maid Outlets* 8 Regions

* 100 Plus outlets in each region

Minute Maid

Intermediaries supply 30% of fresh fruits out of the total production. The company is

planning to eliminate this source of getting fruits due to three reasons.

1: Quality is not consistent at times.

2: Availability is not ensured to its fullest extent.

3: As fresh fruits are the key ingredients for making of Papaya Pulp, the company is

trying to adopt uniform channel of direct collection.

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Minute Maid

CUSTOMER

Minute maid has targeted the high-income class in urban areas. The company has

targeted the people who are aware of UHT and are quality oriented. People who give

preference to organic, hygiene and purity go for Minute maid . Minute maid has

targeted ladies whose incomes are high and who care about the quality of the product and

that are why the company has targeted the urban areas and not rural because that way the

company wouldn’t have been able to achieve it’s goal.

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Minute Maid

MACRO ENVIRONMENT

DEMOGRAPHICS

Demography is the study of human population in terms of size, density, location, age,

gender, race, occupation and other statistics. Pakistan has population more than 14.50

cores out of which 49% are male and 51% are females. 55% of the population involves in

agriculture. The literacy rate in very low i.e. 39% and population rate is 2.3% annually.

Most of the population lives in rural areas but migration rate is high. The per capital

income is $480 per person annually. That is the main reason why packed juices

contribute to only 3.5 % of total production. The awareness in people is lesser and per

capital income is lower. Hence it is in favor of Minute maid if literacy rate is increased

as well as per capital income so that people feel the importance of fresh pulps juice for

themselves.

ECONOMIC FACTORS

Economic environment includes factors that affect Minute maid’s consumer purchasing

power and spending pattern. The country major economic sectors are underdeveloped.

The common man works hard to meet his basic needs. Thus a large part of the income is

spent on basic needs

POLITICAL FACTORS

Government is facilitating Juice industry. There is no sales tax on the Juice. Hence it is a

real plus point. If the government applies sales tax, then it can adversely affect Minute

maid. As it is already a high priced product, the sales tax will make it more costly. Hence

changing government policies and recoveries in taxes are always a political threat for

Minute maid.

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Minute Maid

CULTURAL FACTORS

As the major percentage of population in Pakistan is not literate, hence the awareness

level is too low. They don’t have idea of cleanliness from biological aspects. There are

many-packed juices such as Nestle, Country and Shezan, which are good in quality too.

TECHNOLOGICAL FACTORS

Currently Minute maid is using UHT technology and further an indirect heating and

cooling effect which is most modern and latest technology not being used by any

company. The real technological challenge for Minute maid is to reduce the cost of

packaging i.e. 25% of its total cost. So any company comes up with a better technical

solution of packaging, then suddenly it can penetrate in the market by lowering the price.

So a continuous RND is required.

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Minute Maid

MARKET ANALYSIS

MARKET SIZE

The total market size is approximately 6 Million Liters annually and in terms of money it

is 360 Million Rupees.

70% share is approximately of 250 ml of the over all market which makes 4.2 Million

Litters.

Shezan Juice 50% 2.1 million

Nestlé’s Share 30% 1.26 million

Others 20% 0.84 million

MARKET GROWTH TREND

Market is increasing at the rate of approximately 26%.

The Major factors which can influence the level of demand of product are Seasons,

Changing Trends, and Diet Consciousness.

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Minute Maid

PEST Analysis

Political analysis

Controlled democracy

Stability in Government

Accountability in all departments

Front role in war against terrorism

Better image in world

Reformation regarding all important fields

All these changes have taken place in last 7 years and it has made Pakistan entirely a

changed country.

Economic analysis

Before year 1999, economy of Pakistan was at worst. Forex was very low and it has to

borrow even to repay loans. Debts were $38 bn. Economics indicators were showing

negative signs. But then change in Government brought many changes. Some positive

points are as under.

Increase in GDP 6% per annum

Increase in per capita income as 8%

Increase in exports up to 12.5 bn dollars

Forex reserve up to 13 bn dollars

Privatization

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Boom in stock market

IT sector development

Repayment of expensive commercial loans and refuse to borrow more from IMF

More than 1 bn dollars investment per year

Situational analysis

Pakistani market has shown good movement towards all types of positive indicators.

Now interest rates are low, saving schemes are giving less profits, consumers banking is

at peaking, new jobs are being created by Government as well as foreign investment.

Income of people is increasing more trends towards FMCG. All these situations are

calling for new and new opportunities and investors.

Technological analysis

Pakistan is considered as developing country. Although it is nuclear power yet it lacks

behind in other technologies. Now it has made good progress in digital revolution but still

it has to import heavy machinery from developed countries

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Minute Maid

SWOT

Strengths

Increased demand in pure juices

Presence of enough market to be profitable

Media coverage

Accessibility of markets

Small no of nectar and pure juices producers

Awareness in consumers

Majority of family styles in population

Less no of tastes in market

　

Weaknesses

High cost of production

Low transportation infrastructure

Separated market

Opportunities

New tastes can be introduced

More segments can be targeted

Trends in fresh juices

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Minute Maid

Threats

Trends of juices

Form competition

Foreign companies coming in Pakistan

COMPETITORS ANALYSIS

The key players of the Juice Industry are:

Nestle

Shezan

Tops

Country

Maza

Rani

Fresher

Strengths and Weakness analysis of competitors

Strengths

Brand awareness

Only brands since many decades

Strong brands

Excellent advertising campaigns

Good distribution channels

Good management

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Minute Maid

Weakness

No. 2 quality in market

Hatred against Western brand

Western taste

No participation in social development

Limited range of tastes

Rani Juice

Rani Juice is under Blue Berry its main market is in Arab but we can find its product all

over world , if we talk about Rani Juice in Pakistan we have limited market due to much

reason . Rani can give us tough time because their concept of juice is same as Minute

Maid (pulpy) but there are way behind from Minute Maid for number of reason but we

have still keep in mind that if Rani Juice will come up with new marketing strategies ,

although it will make year’s to come at Minute Maid position , Rani Juice have strong

market in Arab countries, in Arab countries Minute Main need years to conquer their

market

Fresher Juice

”Juice Nahi, Fruit Hai Yeh” it’s the tag line of Fresher juice . Fresher did great in market , they started their product from Rs.35(500ml) now we can see Fresher is at Rs 50 and few flavor of Rs70 , their Juice quality is best but they don’t offer pulpy of fruits in their juice and this is only edge for Minute Maid .

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CORE COMPETENCIES OF KEY PLAYERS

Customers want juices but now the trends are changing towards pure pulp juices. So the

analysis shows that there are different kinds of customers in terms of juices. Some people

want quality juices without any brand name and some people want only Nestle. People

are also price conscious. But sometimes availability is also a factor. So conclusion says

that there are several competencies of the key players:

Price

Quality

Availability

Brand Name

Strong Promotion

EVALUATING THE CUSTOMERS IN TERMS OF CORE NEEDS AND WANTS

Customers need juices and wants are now converting towards pure pulp juices and Nestle

has played a vital role in creating awareness about health consciousness.

THE BUYING HABITS OF CUSTOMERS

Buying habits of customers were ordinary before the entrance of Nestle in pure juices,

because customers were not into imported brands before Nestlé’s nectar. Nestle is one of

the very famous multinational organization of the world. It deals with food products

ranging from juices to liquids and dry milk. The organization is running with an excellent

system namely “Nestle Quality System”. Creative advertisement of Nestlé’s nectar has

created an awful awareness in the minds of the customers. The result of this awareness is

that customers are now more inclined towards pure juices because of their health

sensitivity. That is why Minute maid wants to introduce pure juice in the 250 ml pack

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Nestle

30 % Market Share

Rural Area as target market

High in price

Papaya Pulp

5% Market Share

Rural Area as target market

Less sugar

Shezan Juice

50 % Market Share

Urban & Rural Area as target market

Remaining:

15% Market Share Includes Tops,

Country etc. Varies in quality

Minute Maid

Budgeting

As we know there are different techniques used for budgeting. Minute maid uses top

down technique i.e. top management decide how much budget to allocate for each

product.

Although there is no hard and fast rule for budgeting in Minute maid yet there are

certain criteria for allocation of budget. As a guideline Minute maid allows 2.5 to 4

percent of its gross sales to be spent in marketing activities expenses. For instance look at

the table given below

Account Heads Amount in Pak Rupees

Papaya sales Share (approximately 50% of total

sales)

3.2 billion

Papaya sale’s Marketing Budget (2.5%) 80 million

We find from this table the amount of Rs.80 million as marketing budget for the brand of

Minute maid. This amount is further subdivided into “above the line” & “below the line”

marketing activities.

In ATL activities TV, Outdoor and Print media are included. On the other hand, in BTL

segment there are different activities like sponsoring different concerts, parks etc. and

material for point of purchase.

The problem with this approach is that when sales of a particular brand are declining then

marketing budget for that brand also declines. When a brand needs the money for

advertisement then it does not have it because of its poor outcomes. Management looses

the interest in that brand and it is stuck in a vicious circle.

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Minute Maid

DIFFERENTIATION AND POSITIONING STRATEGY

MARKETING STRATEGIES

Marketing strategy is one of the most important applications of consumer research is to

improve, marketing strategies. Minute maid is using different marketing strategy to

improve its customer values that drive from the products.

DIFFERENTIATION & POSITIONING STRATEGY

They have a change in product market a focus on innovation and change and a flexible

organizational structure headed by younger managers. They are using differentiation

strategy such a strategy emphasize a product that is perceived as unique in the industry

provide distinct advantage or is otherwise set a part from competitors and brand become

their strength.

Minute maid is positioning their product Papaya Pulp in terms of 100% pure and

natural juice, and differentiating Papaya Pulp in terms of Halal, and the other

difference is that there is no sugar and no preservations in the juice.

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PRICING STRATEGY

Pricing Objective

Every marketing task including pricing should be directed towards a goal, Management

should decide on its pricing objective before determining the price itself. The pricing

objectives are as follows:

* Profit oriented:

- To achieve a target return

- To maximize profit

* Sales oriented

- To increase sale volume

- To maintain or increase market share

* Status quo-oriented

- To stabilize prices

- To meet competition

The main objective of every private organization is to achieve profit. Therefore, the

company is mainly "profit oriented" but currently it is also striving to achieve better

market share as compared to its competitor "Nestle'". Therefore, one can say that

company is both profit and sales oriented.

PRICE DETERMINATION

The major factor involved in determining the price by the company is the channel of

distribution. Main portion of the price received from the consumer is because of the cost

on distribution. Due to this factor the company has different prices in north & south

zones. Moreover, fluctuations in Government policies, increasing tax impositions and

rising fuel prices also cause fluctuation in prices of the product countrywide.

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DISCOUNT AND ALLOWANCES

The company uses both quantity discounts and trade discounts to attract more

wholesalers and retailers. The one who is ready to stock more of the product inventory is

given more quantity and trade discounts.

Cash discounts are generally directed towards final consumer. For example, reductions in

price like Rs.1.00 off on 1 liter on Rs.0.50 off on 1 liter packs generally to encourage

more sales to attract new consumers. The company also offers schemes like giving a ½

liter of Minute maid with 1 liter of Orange Pulp Juice pack or to shopkeepers like

buying 20 packs of Papaya Pulp and getting one free.

GEOGRAPHIC PRICING STRATEGY

The company relates on geographic pricing strategy because of the high transportation

cost it has to face. The price is 50 paisa higher on each pack of Minute maid Papaya

Pulp in both "NWFP" and "Baluchistan" as compared to "Punjab" because of the high

cost of transportation and distribution.

MARKET SKIMMING PRICING

The company is currently relying on market skimming pricing e.g. Lower price as

compared to its competitors by claiming that Papaya Pulp is a Juice with no color, no

preservatives and no added sugar as compared to others. This strategy also works well to

attract those classes that relate lower prices with higher quality. Thus, in somewhat

manner the company has tried to become distinctive.

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Comparison with The Competitors Pricing Strategy.

BRANDS SIZE PRICE

Papaya Pulp 1Ltr Rs. 65

500ml Rs. 20

Nestle 1 Ltr Rs. 60

250ml Rs. 15

Shezan 1 Ltr Rs. 28

250ml Rs. 8

4 P’s

Price

In start we have to look over price that it should be profitable on the same time we have to keep very low price because its new flavor

Product

As our product is new we should promote Papaya health benefits

Place

For promotion we will use College’s , Universities and Shopping Malls , it would be best place to promote and over there we will do free sampling

PROMOTION

PROMOTIONAL PROGRAMS

The company develops its promotional program mainly with the objective to influence

the attitude of consumers by creating greater awareness and promoting greater sales. The

company has adopted a very sensible, effective and efficient promotional strategy. It has

used different type of advertisements as titled below:

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Minute Maid

PROMOTIONAL METHODS

The company mainly uses the following two promotional methods:

* TV commercials

* Print ads in popular magazines and newspapers.

* Outdoors advertisement likes billboards, banners, and neon signs.

* Point of sale advertisement in shops, departmental stores and other customers

buying places.

* Sales promotion.

* Buses (New Khan and Daewoo) Printed posters

PROMOTIONAL BUDGET

The promotional budget is formed on the basis of percentage of sales. Normally 2-3% of

sales are reserved for promotional activities.

ADVERTISING

Currently, the company is relying on advertising on nominal basis. The media used is

mainly TV and billboards while the other Medias used vary in cases. As compared to its

competitor Nestle and others its advertising level is presently very high.

For the evaluation of advertising effort currently no specific scientific methods is used.

But the company is considering maintaining such a technique to improve its future

promotional activities. But right now due to shortage of funds it is not feasible.

For advertising purposes the company hires top leading and attractive looking models

that present it in an attractive manner explaining all the qualities hidden in the product "

Minute maid ".

SALES PROMOTION

Sale promotion is mainly directed towards wholesalers / retailers by providing quantity

and trade discounts and to some extent towards the final consumer by providing cash

discount

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Minute Maid

Direct Marketing

For a large company, it is difficult to do one-to-one marketing or direct marketing. They

use communication process for direct marketing.

Process Of Communication

Identifying Target Audience

Minute maid has identifies its target audience. These are the health conscious people.

They target them by research, and as a result, in their advertising they directly show that

their product that is Papaya Juice is good for their health.

Determining the response sought

It includes the buyer readiness process that has further steps. Minute maid has created

an “awareness” about Papaya juice to the general people that its good for their health due

to its quality, packaging, and freshness.

Delivery of message.

Basically, delivery of message is that how you convince the consumer. Minute maid

convinces the general people by showing the various features of its products. Minute

maid always shows its strong points in the advertisements that are mostly shown on T.V,

on hoarding etc.

Selection of media

Minute maid use non-personal media for the promotion of Papaya Juice but sometimes

they also use personal media by personally visiting their customers. Minute maid also

uses celebrities including models for promotion. The strategy of promotion through

celebrities is used in all over the world including Pakistan.

Collection of feedback.

Minute maid also likes to know the feedback of users. People can write to them and also

they can give any suggestion about the brands of Minute maid Foods.

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POSITIONING

In positioning the product in the market the company considers "purity" and "Price" as

the two main attributes of the product. Currently the company is in the category of high

priced and high purity about equal to its greatest competitor Nestle Juice.

Another major challenge facing the company is to introduce urban consumers to the idea

of packed Juices. Consumers are concerned that sterilized products contained

preservatives or were somehow not genuine because, unlike fresh juices, Minute maid

brand contained no preservatives. In one early promotional campaign, households were

given two samples of Minute maid, one for immediate consumption and the other to be

consumed four days later, the goal was to demonstrate that while the juice remained

packaged it did not require refrigeration. Minute maid was positioned as a pure product,

processed in a scientific, hygienic way, and consistent in quality throughout the year. It

means that even if it is preserved for long period it still remains pure and fresh.

TARGET CUSTOMER

Target customer of Minute maid is present in middle, lower middle and upper class. Size

of the target market is too much to get more market share and the target customer is

residing in urban and rural areas. They can be accessible and available to the company

providing juices through the effective and efficient distribution network and awareness

by promotion. Using all the means available in the country from print media to visual

one.

REGULAR USERS

All age factors fall in the target market of Minute maid that belong to the middle and

upper income class. Both males and females married or single, with no specific

occupation are the occupants of Minute maid.

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SUMMARY OF HEALING PROPERTIES OF PAPAYA

Increases quality of proteins in whole organism.

Revitalize the human body and maintain energy and vitality.

Encourages the renewal of muscle tissue.

Supports cardiovascular system.

Boosts up the immune system.

Helps with the digestive system, by breaking down the proteins and supporting

production of digestive enzymes.

Papaya can be use also externally as a treatment for skin wounds that don’t heal

quickly, for this you can use papaya peel or ointments made out of papaya.

Prevents the cataract formation.

Due to high vitamin A, it lowers the risk of emphysema in smokers and passive

smokers.

Alleviates inflammation.

Helps with the nausea and constipation.

Can benefit people suffering colon cancer and other forms of cancers and aliments

of cardiovascular and gastrointestinal systems.

Limitations

Due to limited time and knowledge limited research was done.

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