product positioning and opportunity analysis for...

GALAXY International Interdisciplinary Research Journal_______________________ ISSN 2347-6915 GIIRJ, Vol.2 (3), MARCH (2014)

35

PRODUCT POSITIONING AND OPPORTUNITY ANALYSIS FOR A

NEW PRODUCT LINE OF CARBONATED FRUIT JUICES FOR

PEPSICO IN INDIA

DR. RITESH K. PATEL

ASSISTANT PROFESSOR,

POST GRADUATE RESEARCH CENTRE FOR GOVERNANCE SYSTEMS (CGS), GUJARAT TECHNOLOGICAL UNIVERSITY (GTU), AHMEDABAD,

GUJARAT, INDIA.

ABSTRACT

The paper was focused on the launch of carbonated fruit juices in India and was broken down

into two decision problems: Is there an opportunity for a new product line of carbonated fruit

juices in India and what should be the positioning of such a product line? In order to do this,

we conducted secondary research, In-depth interviews and expert interviews at the

exploratory stage. For a descriptive analysis, we conducted quantitative survey.

On the basis of results found during analysis, we suggest that there is an ample opportunity to

launch a product in the carbonated fruit juice segment in India due to rapidly growing

segment and an increased awareness towards health among urban higher income consumers.

PepsiCo should target this segment in the introductory stage. The carbonated fruit juices lay

at the intersection of carbonated drinks and fruit juice category and the positioning of the

product is critical to determine future opportunity and competition. Key attributes associated

with carbonated drinks segment are Freshness, thirst quenching and brand and key features

associated with fruit juices are taste, health, and value for money and brand. Depending on

the key attributes identified from exploratory survey and by detailed quantitative analysis, we

suggest PepsiCo to launch its product with positioning ―Every day for Health with

freshness, no added preservative or color. Given that there is a clear preference for the 200ml

pack and the pert bottle, Pepsi Co should launch these during introduction. Given the high

preference of Orange flavor among both men and women, Pepsi Co should start with this,

and then expand to apple and mango. The pricing should be in the Rs 13-18 range. We can

afford to bias towards the higher end given that we are targeting urban higher income group.

Conclusions are made based on exploratory research, in-depth interviews and focus group

discussion findings, which may not be accurate as these tools have certain limitations. Some

important factors could have been missed by the researcher that might change the

interpretation of analysis. The major part of the sample population consisted of population

below 25 years of age, male and higher income segment. Thus, the survey results could have

a bias towards these characteristics of people. There could also be some limitations due to

methods used.

KEY WORDS: Fruit Juice Market in India, Carbonated Fruit Juices, Perceptual Mapping of

Fruit Juice Brands, Market Opportunity Analysis, etc.


36

Introduction

The fruit/vegetables juice market in India grew by 26% in 2011 to reach a total of 54 billion

INR. It is further broken down to 100% juice, juice drinks (up to 24% juice), fruit-flavored

drinks (no juice content) and nectars (25-99% juice). Fruit/vegetable juice total constant

value sales are expected to rise at a CAGR of 19% over the next 5 years. Category is

dominated by juice drinks, which accounted for a 78% total volume share in 2011. The fruit-

based carbonated drink segment has a market size of Rs 2 billion at present with products like

Parle Agro's Appy Fizz, Pepsi's Nimbooz and Coca-Cola's Minute Maid Nimbu Fresh having

a strong presence. Detailed category quantitative data is attached in the appendix. Coca-cola

India Pvt. Limited is the market leader with 28.2% market share by value followed by Parle

Agro (23.8%) and PepsiCo (21%). Among brands frooti and maaza together enjoy around

45% market share but they have shown a declining trend given the entry of healthy fruit

juices and other differentiated products. Real fruit juice and Tropicana capture the next 27%

of the market and it has been more or less stable in past 5 years. The category is forecasted to

grow at CAGR of 20% over next 5 years by value and 22% by volume.

Industry Trends

With the growing health and wellness trend in consumers the focus is shifting from

soft drinks to healthy fruit drinks. Consumers in urban areas are shifting to

vegetable/fruit juices

The total value growth of 26% was underpinned by the strong growth of nectars and

100% juice in the wake of rising health awareness.

Companies have started to focus marketing efforts to increase health awareness to

promote fruit juices

Single-flavoured juice products continue to dominate sales but manufacturers are

introducing mixed flavours to differentiate their product offerings. Straying beyond

the mainstay flavours, new options such as cranberry, lychee and pomegranate are

becoming increasingly popular.

100% juice registered the fastest growth in total volume terms, with a 30% increase in

2011. The product ís pure and natural image played well with the health trend.

Manufacturers are introducing products with different value propositions, such as

vitamin-, nutrient- or fiber-enriched variants.

Products in the juice drinks category are popular in India as they are priced at a

similar level to carbonates, thus consumers are shifting from carbonates to perceived

healthier options without having to increase their expenditure substantially.

Modern retail outlets though constitutes only 19% volume sales in 2011

The on-trade channel accounted for 14% of total volume sales in 2011, having grown

by 20% since 2010. Within the on-trade channel, fruit/vegetable juice is mainly

consumed in bars and restaurants, including as a mixer.


37

Unpackaged fruit/vegetable juice is very popular in India, considered to be fresh and

natural. They are easily available and are cheaper compared to packaged drinks. But

quality and hygiene might create doubts in minds of consumers.

Orange was the leading flavor in volume terms for both 100% juice and nectars in

2011. However, juice drinks was dominated by mango, which accounted for 85% of

volume sales. Mixed fruit is emerging as a popular flavor in 100% juice, rising to a

volume share of 19% in 2011.

Competitive Analysis

With the launch of its brand Minute Maid in the 100% juice category in 2011, the

share of Coca Cola is expected to grow in 2013. The unique selling point of this

product is that it contains no added preservatives or added colors.

Regional players have also started entering the category to tap the growing potential.

Tunip Agro Pvt Ltd, Balan Natural Foods, Allied Foodstuff & Beverages Ltd and

Surya Food & Agro Ltd are some of these.

Dabur Ltd also launched Réal Activ Fiber+ juices which the company claims aids

Dabur India rebranded its products by shifting its positioning from taste to health, as

well as through changes to packaging. The digestive system and weight management.

Brick liquid carton packaging is the most popular for the category in India. Products

from one litre down to 200ml are offered to cater to at-home consumption as well as

consumption on the go.

Table 1 Off-trade Sales of Fruit/Vegetable Juice by Category: % Volume Growth 2006-

11

% volume growth 2010/11 2006-11 CAGR 2006/11 Total

100% Juice 30.8 24.6 200.7

- Frozen 100% Juice - - -

- Not from Concentrate 100% Juice - - -

- Reconstituted 100% Juice 30.8 24.6 200.7

Juice Drinks (up to 24% Juice) 23.8 22.1 171.6

- Asian Juice Drinks - - -

- Frozen Juice Drinks - - -

- Juice Drinks Excluding Asian 23.8 22.1 171.6

Fruit-Flavoured Drinks (No Juice Content) - - -

Nectars (25-99% Juice) 26.8 23.2 183.6

- Frozen Nectars - - -

- Unfrozen Nectars 26.8 23.2 183.6

Table 2 Leading Flavours for 100% Juice: % Volume Breakdown 2006-2011

% retail volume 2006 2007 2008 2009 2010 2011

Apple 19 18.5 18.5 18 17.5 17

Mango 4 4.5 5 5.5 5.5 5.5

Mixed fruits 15.5 15.5 16.5 16.5 18 18.5

Orange 42 42 41 41 40 40

Total 100 100 100 100 100 100


38

Table 3 Leading Flavours for Juice Drinks(up to 24% Juice): % Volume 2006-11

% retail volume 2006 2007 2008 2009 2010 2011

Apple 4 3 3 2.5 1.5 1

Lemon 0.5 0.5 1 6 9.9 7

Mango 92 91 88 85 83.5 85

Orange 1 2.5 5.5 4.7 4.1 4.5

Total 100 100 100 100 100 100

Other flavours 2.5 3 2.5 1.8 1 2.5

Table 4 Leading Flavors for Nectars (25-99% Juice): % Volume Breakdown 2006-2011

% retail volume 2006 2007 2008 2009 2010 2011

Apple 30 30 29 28 28 28

Lychee 1 1 1 2 3 4

Mango 7 9 10 10 10 10

Mixed fruits 1 1 1 1 2 3

Orange 40 40 39 38 38 38

Total 100 100 100 100 100 100

Table 5 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2007-2011

% off-trade volume 2007 2008 2009 2010 2011

Coca-Cola India Pvt Ltd 31.7 32.4 32.7 35.3 32.3

Parle Agro Pvt Ltd 34.8 33.5 30.5 29.5 27.9

PepsiCo India Holdings Pvt Ltd 15.1 15.3 18.1 19.2 18.1

Dabur India Ltd 10.8 11 9.7 9.1 9.3

Tunip Agro Pvt Ltd - - 0.7 0.7 0.8

Godrej Hershey Foods & Beverages Ltd 0.3 0.3 0.3 0.3 0.3

Ceres Fruit Juices (Pty) Ltd - 0.1 0.1 0.1 0.1

Tata Global Beverages Ltd - - 0.3 0.7 0.1

Godrej Foods Ltd - - - - -

Dabur Foods Ltd - - - - -

Others 7.3 7.3 7.7 5 11.2

Total 100 100 100 100 100


39

Table 6 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2008-2011

% off-trade volume Company 2008 2009 2010 2011

Maaza Coca-Cola India Pvt Ltd 28.4 29.2 29.5 28.2

Frooti Parle Agro Pvt Ltd 29.2 26.5 25.7 24.8

Réal Dabur India Ltd 10.1 9.7 9.1 9.3

Slice PepsiCo India Holdings Pvt Ltd 7.6 7.8 7.9 8.3

Tropicana PepsiCo India Holdings Pvt Ltd 7.7 7.6 7.5 7.8

Minute Maid Coca-Cola India Pvt Ltd 4 3.5 5.8 4.1

Appy Parle Agro Pvt Ltd 4.3 3.9 3.8 3.2

7-Up PepsiCo India Holdings Pvt Ltd - 2.7 3.8 1.9

Onjus Tunip Agro Pvt Ltd - 0.7 0.7 0.8

XS Godrej Hershey Foods & Beverages Ltd 0.3 0.3 0.3 0.3

Ceres Ceres Fruit Juices (Pty) Ltd 0.1 0.1 0.1 0.1

T!ON Tata Global Beverages Ltd - 0.3 0.7 0.1

Real Twist Dabur India Ltd 0.8 - - -

Coolers Dabur India Ltd 0.2 - - -

Coolers Dabur Foods Ltd - - - -

Réal Dabur Foods Ltd - - - -

Real Twist Dabur Foods Ltd - - - -

XS Godrej Foods Ltd - - - -

Others Others 7.3 7.7 5 11.2

Total Total 100 100 100 100

DEFINING THE RESEARCH PROBLEM

Problem Definition

Based on the scope of the research, two decision problems were identified

1. Is there an opportunity for a new product line of carbonated fruit juices in India?

2. What should be the positioning of such a product line?

Based on literature review and information obtained from secondary sources, four research

problems were identified

1. To assess opportunity for a new product line of carbonated fruit juices in India?

2. To find out the important attributes/benefits and determine possible positioning of such a

product

3. To find out the best product concepts by consumer need and acceptance

4. To find out the best packaging and SKUs for such a product

5. To find out the possible price point

The first research problem would help us in assessing the scope of the opportunity. The latter

research problems would help us to identify the ideal product features, target market and

positioning of the product. Questionnaires were prepared which would aid us in obtaining the

information necessary to answer these questions in addition to secondary data available. The

entire research matrix for this study is summarized below.


40

Research Design

A large amount of information and analysis would be needed before PepsiCo can reach

decision of launching a carbonated fruit juices category. The ultimate decision would depend

on the consumer preferences, their expectations from different types of beverages and the

impact of such a launch. If, such a category is launched, the required positioning is to be

decided. To understand the current industry, information on consumer buying behavior would

need to be collected. For our purpose, the factors like energizing, fizzy, tasty, refreshing,

thirst quencher, becoming popular etc. would be considered and their relative importance for

the consumers would be evaluated. Once the consumer preferences are known, their

expectations from such a product need to be established. Some of the benefits like freshness,

energizing, healthy, tasty etc. would be a part of the questionnaire. Also, the gap between the

consumer needs and what is offered currently in the market would be evaluated. This would

help decide the positioning for the product. It could be a low end product competing with the

fruit juices category or it could be a high end product competing with energy drinks. For

launching the product we will also need information for possible packaging and SKU sizes.

This would come from the consumer buying behavior. Information on buying frequency

preferred SKU sizes and attractive packaging for the desired positioning options would be

collected.

Stage 1: Secondary Research First of all various secondary data sources such as literature surveys and articles were

identified and studied in order to understand the current industry status: various branded and

unbranded products in market, variants available, product positioning, price, target audience

and consumer segments, distribution channels and consumer perception of the brand/product.

A list of various attributes is attached in appendix 1.

Stage 2: Exploratory Research

Qualitative research was conducted to understand the underlying reasons and motivations of

people to consume the currently available cold beverages. A small number of representative

cases we chosen and an unstructured and non-statistical research was conducted to develop

an initial understanding. Within the quantitative research techniques, the direct approach was

used. The purpose of the survey i.e. the intention to launch a carbonated fruit juice by Pepsi

was disclosed.

In-depth interviews were used among the direct approaches. Given the wide variety of

drinks available, tendency of people to get biased by group response, complicated

consumption behaviour, importance of experience and the heterogeneity of choices of the

target segment, 15 in-depth interviews were conducted to understand the underlying

motivations, beliefs, attitudes and feeling for positioning, pricing etc. The outcome would

also help us in understanding the consumer perception of the product, scope for a new

carbonated fruit juice, possible pricing and packing.

Expert Interview was also used to further understand the industry characteristics that helped

us understand and determine selling side features related to distribution etch in detail. The

transcript for the interview is attached in appendix 4. The sole idea behind conducting these


41

interviews was to understand the buying behavior of consumers and frame our Questionnaire

based on the results obtained.

Stage 3: Descriptive Research

A quantitative descriptive research was conducted through a survey. A structured

questionnaire targeted at current consumers of carbonated drinks and fruit juices was used to

obtain customer preferences and ideal positioning.

Sampling method On account of time and resource constraints imposed by the course, we were not be able to

incorporate a probabilistic sampling method. We used a non-probabilistic method of

sampling called quota sampling targeting equitable distribution in above three market

segments.

Sampling Plan

Target Population: The survey was floated through the internet on Qualtrics.com and sent to

friends and contacts through social networking channels. The targeted number was around

150, and a number of 120 were reached. The unit of analysis was individual. Strata: Based

on secondary research and results from the exploratory and research, we identified the ideal

candidates to answer the problems were end-level consumers. We want to test the

acceptability of our product among the urban population and did a quota sampling based on

age, gender and salary.

Data transcribing and cleaning: Data was transferred from Qualtrics survey software

directly in the form of .csv file for analysis on minitab. Cleaning the data was done through

consistency checks and manual removal of imperfect responses.

Data Preparation

After collecting all responses and eliminating spurious ones, we prepared the codebook

containing an exhaustive list of the variables corresponding to the questions and assigned

codes according to the scale type. The codebook consisted of a total of 24 questions and 89

variables. A codebook summary is shown in Exhibit 1.

Measures and Variables

Cronbach's alpha was used as a measure of internal consistency for the variables measured on

Likert Scale to determine if the scale is reliable. The research had three sets of questions to

determine the value of two dependent variables i.e. overall satisfaction and purchase

intention. Each question was a 5-point Likert item from "strongly disagree" to "strongly

agree". In order to understand whether the questions in the questionnaire all reliably measure

the same latent variable i.e. a Likert scale could be constructed; a Cronbach's alpha was run

on the data collected. It was used for the three sets of variables below:


42

Independent Variables

Code Dependent Variables Code Cronbach’s

alpha

Features associated with

carbonated drink recently

consumed

4 to 8 Overall satisfaction and

repurchase likelihood of

carbonated drinks

9, 10 0.72

Features associated with fruit

juice recently consumed

15 to

20

Overall satisfaction and

repurchase likelihood of fruit

juice

21,22 0.81

Features associated with

carbonated fruit juice

recently consumed

27 to

33

Overall satisfaction of

carbonated fruit juice

34 0.77

Interpretation of the Cronbach’s alpha can be as below:

Cronbach's alpha Internal consistency

α ≥ 0.9 Excellent

0.8 ≤ α < 0.9 Good

0.7 ≤ α < 0.8 Acceptable

0.6 ≤ α < 0.7 Questionable

0.5 ≤ α < 0.6 Poor

α < 0.5 Unacceptable

Based on these we conclude the following:

The data for determining the overall satisfaction and repurchase of carbonated drinks

is on the borderline of the acceptable limit.

The data for determining the overall satisfaction and repurchase of fruit juices is well

in good limit and hence the scale for these variables is reliable.

The data for determining the overall satisfaction carbonated fruit juices is in the

acceptable limit.

Data Interpretation and Use

Identifying priority attributes in customer purchase of carbonated fruit drinks From the qualitative results, we obtained a list of attributes expected by consumers in

carbonated drinks and fruit juices. After determining the relative importance of these features

using regression, the perceived performance of carbonated fruit juices was tested on these

features to determine what features of each of these are associated with carbonated fruit

juices. Questions 3, 4, 5, 8, 9, 10, 13 and 14 provided this data. Determining the competitive

positioning of Appy on the critical attributes identified After determining the features

associated with carbonated drinks, fruit juices and Appy, we can determine the positioning of

Appy which is our current competition in this segment. Assess the customer reaction to the

product concepts After obtaining the important features for the carbonated drinks and fruit

juices, a perceptual map was constructed to determine the performance the three different

product concepts to obtain an overall rating. This rating with believability was used to do a

regression on buying intention to determine the best product concept. Identify possible


43

packaging options, SKU size and price points Cross tabulation was used to determine the

possible packaging, SKU size and pricing options.

Product Concepts:

P1. Fruit juice with fizz

P2. Health juice with taste and freshness

P3. Daily consumption health drink

RESULTS OF QUANTITATIVE SURVEY

Q3. Association of benefits with recently consumed carbonated drink: On the basis of survey

responses it comes out that FRESHNESS, THIRST QUENCHING and TASTE are benefits

that consumers derive from the carbonated drinks with TASTE being the most popular with

88% consumers associating. Value for money is the least popular benefit among the

consumers with only 21% of consumers associating with it.

Figure 1Perceived strength of features with carbonated drinks


44

Q6. Most of the consumption of carbonated drinks happens in restaurants (69%) or on the go

(58%). Only 26% of respondents chose home as place of consumption.

Figure 2 Place of consumption of carbonated drinks

A cross tabulation analysis was done understand the relation between place of consumption

and frequency. The analysis shows that most of the people consume carbonated drinks for 2

to 3 times a week with maximum consumption occurring at the restaurants/bars or on-the go.


45

Q8. Association of features with recently consumed carbonated drink: More than 75% of

respondents associated taste/flavor and health with consumption of fruit juices. ENERGY and

QUALITY as benefit closely followed with 65% respondents associating with it. Value for

money and BRAND were the least associated with.

Figure 3 Perceived strength of features with fruit juices

Q11. A lot of consumption for fruit juices happens in home or at restaurants

Figure 4 Place of consumption of fruit juices

A cross tabulation analysis was done understand the relation between place of consumption

and frequency. The analysis shows that most of the people consume fruit juices for 2 to 3

times a week with maximum consumption occurring at the restaurants/bars or home.


46

Q13. VALUE for money, HEALTH, ENERGY and THIRST QUENCHING were the least

sought after by respondents in a carbonated fruit juice. FRESHNESS and TASTE were given

importance by around than 70% of respondents.

Figure 5 Perceived strength of features with carbonated fruit juices

Q 15. Orange was clearly the most popular flavor followed by Apple, Lemon and Mango.

Figure 6 Flavor Preferences

Cross Tabulation of flavor preference with gender reveals that orange juices leads the

consumption pattern for both male and female which shows that orange juice is perceived

with a higher value as compared to any other flavor. For male, apple and mango are next two

favorite flavors. However, female values lemon and mango equally

Table 7 Preference to flavor(s) of juice to the Gender


47

Q18. Consumers prefer the 200ml pack over other SKU sizes.

Figure 7 Preference for SKU size

Q19. Consumers prefer the pert bottle by a huge margin to other packing. Beyond the pert

bottle, they are indifferent to packaging.

Figure 8 Preference for packaging


48

Q20. 43% of the consumers expect the product to be priced in the Rs13-18 range. The

positioning and marketing will determine the premium Pepsi can charge.

Figure 9 Preference for pricing point

DATA ANALYSIS

Step 1. Identifying priority attributes in customer purchase of carbonated drinks

Correlation and Regression analysis as shown below helped us shortlist freshness, thirst

quenching properties and brand as key properties.

Correlation Analysis: The correlation values are between -0.7 and 0.7 and hence there is

weak correlation between the independent variables. Because the correlations are weak, we

don’t need to do a factor analysis.

Correlation: Freshness, Thirst, Value for Money, Taste, Brand

Regression Analysis: We used a 5% significance level for our analysis and hence dropped

taste and value for money from our final list. R-square is low indicating that there are other

factors also which determine the purchase behavior of carbonated drinks. The Durbin-Watson

stats are within the upper and lower bound.


49

The regression equation is Experience = 1.38 + 0.310 Freshness + 0.196 Thirst + 0.147 Brand

Table 8 Regression Model

Table 9 Analysis of Variance

Step 2: Identifying priority attributes in customer purchase of fruit juices

Correlation and Regression analysis as shown below helped us shortlist taste and flavor,

health, value for money and brand as key properties.

Correlation Analysis: The correlation values are between -0.7 and 0.7 and hence there is

moderate correlation between the independent variables. Because the correlations are not

very high, we don’t need to do a factor analysis.

Correlation: Taste & Flavor, Healthy, Energy, Quality & Value for Money

Regression Analysis: We used a 5% significance level for our analysis and hence dropped

energy and quality from our final list. R-square is low indicating that there are other factors

also which determine the purchase behavior of carbonated drinks. The Durbin-Watson stats

are within the upper and lower bound.

The regression equation is Experience = 0.637 + 0.289 Taste and Flavour + 0.246 Healthy +

0.172 Value for Money + 0.142 Brand


50


Table 11 Analysis of Variance

Step 3: Identifying priority attributes in customer purchase in carbonated fruit juices

Correlation and Regression analysis as shown below helped us shortlist freshness, taste and

health as key properties. Correlation Analysis: The correlation values are between -0.7 and

0.7 and hence there is moderate correlation between the independent variables. Because the

correlations are not very high, we don’t need to do a factor analysis.

Regression Analysis:

We used a 5% significance level for our analysis and hence dropped energy and quality for

money from our final list. R-square is low indicating that there are other factors also which

determine the purchase behavior of carbonated drinks. The Durbin-Watson stats are within

the upper and lower bound.

The regression equation is Repurchase = 2.06 + 0.085 Freshness/Fizz + 0.248 Taste - 0.039

Health


51


Determining the competitive positioning of Appy on the critical attributes identified

Analysis above can be summarized as follows:

Carbonated Fruit

Juice

Carbonated Drinks Fruit Juice

Freshness Freshness Taste

Taste Thirst-quenching Health

Health Brand Value for money

Brand

The regression coefficient for health is negative for Appy. As health is a major concern for

carbonated drinks while it is a perceived benefit of fruit juices, Appy is clearly associated

closer with carbonated drinks in this respect. The freshness feature is also associated with

carbonated drinks while taste is a dominant feature for fruit juices. Thus while on overall

positioning Appy is grouped with carbonated drinks, it has positive taste attribute associated

with fruit juices.

Assess the customer reaction to the product concepts

Product Concepts:





52

Method 1: Simple Ranking Method

Respondents were asked to associate the attributes to one of the three product concepts

designed. From our previous analysis on attributes in case of carbonated drinks and fruits

juices we had arrived at freshness, thirst quenching, taste, health benefits and value for

money as important factors. Table below shows the percentage of respondents picking a

product concept for a particular attribute. Table below shows the ranking of product concepts

on various attributes. Since the gaps are wide for all the possible combinations, different

ranks were possible to all the concepts in all cases.

P2 scores higher rank (1-2) in all the six attributes and for P2 taste and health benefits are the

major attributes associated by respondents. Thus, from this analysis our choice of product

concept is P2 which is a healthy drink with favorite tastes. This is different from the

observation we had for the existing carbonated fruit drink (Appy), wherein health had

negative correlation with the choice of consuming the drink. Hence, our positioning would be

unique in the market and it would be communicated in that way.

P1 P2 P3

Freshness 48% 35% 27%

Thirst Quenching 23% 48% 38%

Refreshing 25% 56% 44%

Taste/flavor 29% 65% 15%

Health Benefits 6% 75% 23%

P1 P2 P3

Freshness 1 2 3

Thirst Quenching 3 1 2

Refreshing 3 1 2

Taste/flavor 2 1 3

Health Benefits 3 1 2


53

Method 2: Factor Analysis and Perceptual Map

Factor analysis was done using overall Factor rating deduction from the data:

Variable Factor1 Factor2

Freshness 0.345 0.366

Thirst Quenching 0.292 0.688

Taste/Flavor 0.360 -0.369

Health Benefits 0.323 -0.602

Overall factor reductions

Factor 1

Factor 2

P1

0.36

0.19

P2

0.74

-0.23

P3

0.33

0.17

0%

10%

20%

30%

40%

50%

60%

70%

80%

P1

P2

P3


54

Perceptual Map Plot




Product Concept Uniqueness

Freshness

Thirst Quenching

Taste/Flavor

Health Beneftis

P1

P2

P3

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8


55

Purchase Intent

The product concepts rated on purchase intent also exposed that product concept 2 was mpst

acceptable

Cross Tabulation Analysis for packaging options, SKU size and price points

To determine dependence and possible correlations, cross tabulation analysis was done

between packaging, SKU size and price points.

Age and Packaging Pert Bottle is the most preferred package across all the age groups.

Metal Pert Bottle Glass Indifferent

Below 25 yrs 13 32 11 12

25 - 45 yrs 4 11 0 7

46-60 yrs 1 1 1 1

Above 60 yrs 0 0 0 0

Annual Income vs. Price willing to pay for 200 ml Majority of the people across the entire income group are willing to pay Rs. 13-18 for 200 ml

bottle.

Rs 10 to 12 Rs 13 to 18 Rs 19 to 22 >Rs 22

<3,00,000 3 6 3 0

3,00,000-10,00,000 19 18 7 0

>10,00,000 15 19 6 0


56

RECOMMENDATIONS

1. Secondary and exploratory research exposed that there is opportunity in India to

launch a product in the fruit juice segment due the rapidly growing segment and an

increased awareness towards health among urban higher income consumers. PepsiCo

should target this segment in the introductory stage.

2. The carbonated fruit juices lie at the intersection of carbonated drinks and fruit juice

category and the positioning of the product is critical to determine future opportunity

and competition.

3. Key attributes associated with carbonated drinks segment are Freshness, thirst

quenching and brand and key features associated with fruit juices are taste, health, and

value for money and brand.

4. Depending on the key attributes identified from exploratory survey and by detailed

quantitative analysis, we suggest the PepsiCo launch its product with positioning

―health juice with Health and freshness, no added preservative or color.

5. Given that there is a clear preference for the 200ml pack and the pert bottle, Pepsi Co

should launch these during introduction.

6. Given the high preference of Orange flavor among both men and women, Pepsi Co

should start with this, and then expand to apple and mango.

7. The pricing should be in the Rs 13-18 range. We can afford to bias towards the higher

end given that we are targeting urban higher income group.

LIMITATIONS

1. As conducted as part of exploratory research, in-depth interviews and focus group

discussion findings may not be accurate as these tools have limitations. Some

important factors could have been missed that might have changed our analysis.

2. The quantitative survey had 120 responses, out of which only 96 responses were

genuine. Out of these 87.5% had consumed carbonated drinks and 80% had consumed

fruit juices which made the sample size further smaller for analysis. Extrapolation of

inferences from these responses may not be true in some cases.

3. The sample population consisted of a huge fraction of population below 25 years of

age, male and higher income segment. Thus, the survey results could have a bias

towards these characteristics of people.

4. Data analysis methods such as Correlation, regression analysis and factor analysis

have their own limitations and assumptions. While we tried our best to ensure limited

effect on the inferences, it may have missed a few factors.

5. Quantitative questionnaire was designed after several iterations to make sure all the

factors were included. Yet, all the necessary aspects may not be covered thoroughly in

the questionnaire due to practical limitations.

6. Due to limitations in getting a long questionnaire filled, we restricted it to 24

questions. However, this could also have made the respondents impatient and resulted

in random/inaccurate responses. While 120 responses were considered to ensure

limited role of outliers, the responses could still be misleading.

References

http://www.fnbnews.com/article/detnews.asp?articleid=34516&sectionid=11

http://articles.timesofindia.indiatimes.com/2012-06-25/india-

business/32407984_1_fruit-juices-carbonated-juices-market


http://articles.timesofindia.indiatimes.com/2012-06-25/india-business/32407984_1_fruit-juices-carbonated-juices-market



57


http://www.euromonitor.com/soft-drinks-in-india/report`

http://www.euromonitor.com/fruit-vegetable-juice-in-india/report

http://blog.euromonitor.com/2013/01/soft-drinks-in-2013-growth-to-continue-as-

demand-diversifies.html

http://www.euromonitor.com/concentrates-in-india/report

http://www.companiesandmarkets.com/News/Food-and-Drink/Indian-concentrates-

market-driven-by-innovation-in-the-powdered-segment/NI7779

http://uk.finance.yahoo.com/news/indian-concentrates-market-driven-innovation-

000000513.html

http://www.hindustantimes.com/business-news/rajnigandha-maker-forays-into-

powdered-drinks-rasna-zone/article1-906695.aspx

http://nopr.niscair.res.in/bitstream/123456789/7878/1/NPR%206(4)%20315.321.pdf

http://www.indianindustry.com/fruitsvegetables/4104.html

http://www.eiriindia.org/Industrial_Project_Reports/Industrial_Project_Reports_On_

TAMARIND_BASED_PRODUCTS

http://articles.economictimes.indiatimes.com/2012-12-19/news/35912400_1_pepsico-

india-piruz-khambatta-tropicana


business/29446728_1_coca-cola-india-fanta-sprite

http://www.business-standard.com/article/management/tang-gets-ready-to-dissolve-

in-the-crowd-113052300974_1.html

http://retailview.in/blog/pepsico-launches-new-tropicana-fruit-powders/

http://www.thehindu.com/business/Industry/rasna-enters-readytodrink-beverage-

segment/article4670248.ece

http://www.dnaindia.com/money/report-rasna-to-uncork-fortified-water-fruit-juices-

1814228

http://m.economictimes.com/news/news-by-industry/cons-products/food/coke-tanks-

up-juices-portfolio-to-take-on-pepsico/articleshow/20025458.cms

http://www.dabur.com/Products-Foods-About%20Real1


business/32407984_1_fruit-juices-carbonated-juices-market

http://smallb.in/sites/default/files/knowledge_base/AreportonIndianFoodProcessingIn

dustry.pdf

http://articles.economictimes.indiatimes.com/2013-01-11/news/36280000_1_rasna-

beverages-juices-hommade

http://www.rediff.com/money/report/rasna-takes-on-tropicana/20130514.htm

http://www.mydigitalfc.com/foods-and-drinks/pepsico-expands-tropicana-portfolio-

018

http://www.thehindubusinessline.com/marketing/pepsico-india-launches-tropicana-

juice-mixes/article4439429.ece

http://newindianexpress.com/business/news/India-thinks-healthy-drinks-

healthy/2013/06/09/article1626493.ece

http://www.gujagro.org/agro-food-processing/freeze-dried-fruit-powder-24.pdf

http://www.reportlinker.com/ci02029/Fruit-and-Vegetable.html

http://www.just-drinks.com/news/pepsicos-tropicana-powder-mix_id109055.aspx



http://www.euromonitor.com/soft-drinks-in-india/report%60

http://www.euromonitor.com/fruit-vegetable-juice-in-india/report

http://blog.euromonitor.com/2013/01/soft-drinks-in-2013-growth-to-continue-as-demand-diversifies.html

http://blog.euromonitor.com/2013/01/soft-drinks-in-2013-growth-to-continue-as-demand-diversifies.html

http://www.euromonitor.com/concentrates-in-india/report

http://www.companiesandmarkets.com/News/Food-and-Drink/Indian-concentrates-market-driven-by-innovation-in-the-powdered-segment/NI7779

http://www.companiesandmarkets.com/News/Food-and-Drink/Indian-concentrates-market-driven-by-innovation-in-the-powdered-segment/NI7779

http://uk.finance.yahoo.com/news/indian-concentrates-market-driven-innovation-000000513.html

http://uk.finance.yahoo.com/news/indian-concentrates-market-driven-innovation-000000513.html

http://www.hindustantimes.com/business-news/rajnigandha-maker-forays-into-powdered-drinks-rasna-zone/article1-906695.aspx

http://www.hindustantimes.com/business-news/rajnigandha-maker-forays-into-powdered-drinks-rasna-zone/article1-906695.aspx

http://nopr.niscair.res.in/bitstream/123456789/7878/1/NPR%206(4)%20315.321.pdf

http://www.indianindustry.com/fruitsvegetables/4104.html

http://www.eiriindia.org/Industrial_Project_Reports/Industrial_Project_Reports_On_TAMARIND_BASED_PRODUCTS

http://www.eiriindia.org/Industrial_Project_Reports/Industrial_Project_Reports_On_TAMARIND_BASED_PRODUCTS

http://articles.economictimes.indiatimes.com/2012-12-19/news/35912400_1_pepsico-india-piruz-khambatta-tropicana

http://articles.economictimes.indiatimes.com/2012-12-19/news/35912400_1_pepsico-india-piruz-khambatta-tropicana

http://articles.timesofindia.indiatimes.com/2011-04-19/india-business/29446728_1_coca-cola-india-fanta-sprite

http://articles.timesofindia.indiatimes.com/2011-04-19/india-business/29446728_1_coca-cola-india-fanta-sprite

http://www.business-standard.com/article/management/tang-gets-ready-to-dissolve-in-the-crowd-113052300974_1.html

http://www.business-standard.com/article/management/tang-gets-ready-to-dissolve-in-the-crowd-113052300974_1.html

http://retailview.in/blog/pepsico-launches-new-tropicana-fruit-powders/

http://www.thehindu.com/business/Industry/rasna-enters-readytodrink-beverage-segment/article4670248.ece

http://www.thehindu.com/business/Industry/rasna-enters-readytodrink-beverage-segment/article4670248.ece

http://www.dnaindia.com/money/report-rasna-to-uncork-fortified-water-fruit-juices-1814228

http://www.dnaindia.com/money/report-rasna-to-uncork-fortified-water-fruit-juices-1814228

http://m.economictimes.com/news/news-by-industry/cons-products/food/coke-tanks-up-juices-portfolio-to-take-on-pepsico/articleshow/20025458.cms

http://m.economictimes.com/news/news-by-industry/cons-products/food/coke-tanks-up-juices-portfolio-to-take-on-pepsico/articleshow/20025458.cms

http://www.dabur.com/Products-Foods-About%20Real1



http://smallb.in/sites/default/files/knowledge_base/AreportonIndianFoodProcessingIndustry.pdf

http://smallb.in/sites/default/files/knowledge_base/AreportonIndianFoodProcessingIndustry.pdf

http://articles.economictimes.indiatimes.com/2013-01-11/news/36280000_1_rasna-beverages-juices-hommade

http://articles.economictimes.indiatimes.com/2013-01-11/news/36280000_1_rasna-beverages-juices-hommade

http://www.rediff.com/money/report/rasna-takes-on-tropicana/20130514.htm

http://www.mydigitalfc.com/foods-and-drinks/pepsico-expands-tropicana-portfolio-018

http://www.mydigitalfc.com/foods-and-drinks/pepsico-expands-tropicana-portfolio-018

http://www.thehindubusinessline.com/marketing/pepsico-india-launches-tropicana-juice-mixes/article4439429.ece

http://www.thehindubusinessline.com/marketing/pepsico-india-launches-tropicana-juice-mixes/article4439429.ece

http://newindianexpress.com/business/news/India-thinks-healthy-drinks-healthy/2013/06/09/article1626493.ece

http://newindianexpress.com/business/news/India-thinks-healthy-drinks-healthy/2013/06/09/article1626493.ece

http://www.gujagro.org/agro-food-processing/freeze-dried-fruit-powder-24.pdf

http://www.reportlinker.com/ci02029/Fruit-and-Vegetable.html

http://www.just-drinks.com/news/pepsicos-tropicana-powder-mix_id109055.aspx



58

Exhibit 1

Variable

No

Description Q

No

Scale

Type

1 to 2 Whether any of carbonated drinks or fruit juices are

consumed

1 Nominal

3 Weekly frequency of consumption of carbonated drinks 2 Interval

4 to 8 Features associated with carbonated drinks recently

consumed

3 Interval

9 Overall satisfaction with the carbonated drink 4 Interval

10 Likelihood of repurchase of the carbonated drink 5 Interval

11 to 13 Place of consumption of the carbonated drink 6 Nominal

14 Weekly frequency of consumption of fruit juice 7 Interval

15 to 20 Features associated with fruit juice recently consumed 8 Interval

21 Overall satisfaction with the fruit juice 9 Interval

22 Likelihood of repurchase of the fruit juice 10 Interval

23 to 25 Place of consumption of the fruit juice 11 Nominal

26 Trial of carbonated fruit juice 12 Nominal

27 to 33 Features associated with carbonated fruit juice recently

consumed

13 Interval

34 Overall satisfaction with the carbonated fruit drink 14 Interval

35 to 42 Whether the consumer likes a flavor 15 Nominal

43 to 64 Whether the identified attributes are associated with the

three product concepts

16 Nominal

65 to 67 Believability of product concepts 17 Interval

68 to 70 Overall purchase intention of product concepts 18 Interval

71 to 74 Preferred SKU size for carbonated fruit juice 19 Nominal

75 to 78 Preferred packing for carbonated fruit juice 20 Nominal

79 Preferred price point 21 Interval

80 to 84 Age 22 Nominal

85 to 86 Gender 23 Nominal

87 to 89 Family Income 24 Nominal

product positioning and opportunity analysis for...

Documents