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MARKETING PLAN FOR AMBROSIA (A seasonal fruit flavoured Basundi)

SUBMITTED TO: PROF. PRATIK MODI

SUBMITTED BY: Group -3B Anant Sambhavam Arpan Bajpeyi

(P37105)

Hillol Dey

(P37135)

Mitesh Chhabaria

(P37147)

Shubham Agarwal

(P37164)

Vaibhav Kahate

(P37176)

Vinay Gurao

(P37178)

TABLE OF CONTENTS Executive Summary .................................................................................................................. iii Situation Analysis ...................................................................................................................... 1 Market Need Identification ................................................................................................... 1 Market Growth and Trends ................................................................................................... 2 Product and its Characteristics .............................................................................................. 2 Analyzing Environment ............................................................................................................. 3 Analyzing Competition ............................................................................................................ 6 Consumer Behaviour ................................................................................................................. 8 Market Segment and Targeting ................................................................................................ 8 Positioning ................................................................................................................................. 9 Branding..................................................................................................................................... 9 Packaging ...................................................................................................................................11 Pricing ........................................................................................................................................11 Place (Selling point) ................................................................................................................. 12 Promotion ................................................................................................................................. 13 Distribution .............................................................................................................................. 11 Promotion ................................................................................................................................. 13 Communication Mix ................................................................................................................ 14 Print Media............................................................................................................................... 14 Demand Forecast ..................................................................................................................... 16 Sales and Revenue Forecast ..................................................................................................... 16 Break Even Analysis ................................................................................................................ 16 Demand Forecast ..................................................................................................................... 14 Evaluation and Control ............................................................................................................ 17 Implementation ........................................................................................................................ 18

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LIST OF ANNEXURES Annexure I ................................................................................................................................... v Annexure II .................................................................................................................................vi Annexure III ............................................................................................................................... vi Annexure IV ............................................................................................................................... vii Annexure V ................................................................................................................................ vii Annexure VI ...............................................................................................................................viii Annexure VII.............................................................................................................................. viii Annexure VIII ............................................................................................................................ ix Annexure IX .................................................................................................................................x Annexure X ..................................................................................................................................xi Annexure XI .................................................................................................................................xii Annexure XII................................................................................................................................xii Annexure XIII .............................................................................................................................xiii Annexure XIV ..............................................................................................................................xiii Annexure XIV ..............................................................................................................................xiv

LIST OF FIGURES Figure 1: Ambrosia Logo ............................................................................................................. 1

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EXECUTIVE SUMMARY In India, people crave for very delicious seasonal fruits. Seasonal fruits are those which remain available in market for few months say 1-4 months. Void of seasonal fruits all over the year in market mold people to various processed fruit viz. juices, jam , jellies, marmalade, fruit cheese, pickles, sauces, ice-cream, Shrikhand, halwa etc. Many such products are available in market, but people wants variety of other unexplored applications which will be tasty, healthy & available throughout the year. Because of existing need and craving of people for processed seasonal fruit we need an intervention in the form of various seasonal fruit packaged basundi, which will have longer shelf life. So people will be delighted if we can give the taste of these fruits in offseason through basundi. Ambrosia, a mouth watery & delicious basundi consisting of various fruit flavours with a shelf life of one month from Anant Sambhavam group will be enthralling the market soon. Product will be launched in Anand Market of Gujarat state with Custard Apple, orange, mango and pine Apple flavours. Anand is known as education hub, many aspirational students come here for higher education. Lots of manufacturing companies are located near anand which results in overall market size expansion and thus opportunities & demand of our product. Analysing the needs of various age groups, it was found that the product would cater best to the needs of youth and the middle-aged people. The age group targeted, thus, ranges between 15–40 years. Prevalent problem of diabetes and cautiousness about health in the area restricted us in considering the people above the age of 50 in our target segment. In income category we have considered people having income more than Rs.15000 /Month as our target segment. Making use of data from available surveys, the demand estimated in the first year of operation is close to 210300 litres. The breakeven point in Rupees for the first year is Rs.6541667/-. The inflow of revenue in the first year is expected to be Rs.10515000. thus we can say that we will reach the breakeven point in very first year of our operation. After analysing the need and the market characteristics, it is essential to develop a strategy make the brand popular amongst the target segment. Since our target is middle class and above middle class section of society, a unique image has to be built of the product. This can be primarily done iv

through the packaging and pricing, supported by an appropriate communication mix.

Since, we have many features to differentiate our product and can claim a superior quality because of the presence of reliable production process; we can use a Perceived Value Pricing method to arrive at a price of Rs 250/litre. This has been calculated after careful analysis of various online surveys and direct interviews. Uniformly adjusted pricing mechanism will be used for all the package varieties like 200ml (Rs 50), 500ml (Rs 125) & 1000ml (Rs 250). Which is slightly higher than the average market price of Rs 230/litre. We would be employing an Intensive distribution strategy. We will incorporate a 2-level distribution channel to reach all the significant point of purchase. Ambrosia will be easily available in market via organised retail stores, canteens, normal retail shops, Hotel & Restaurants. Communication media such as news paper, App, social networking sites, websites, pamphlets will help us in brand building & promotion. The suggestions of the customers will be of utmost importance in evaluating our performance. Special occasions and festivals (like Diwali, Holi) etc would be targeted to reach a large number of customers for collecting their direct face-to-face feedback. Various feedback forms can also be floated online for getting insights about the satisfaction level of consumers. Arrangements of special events will help us to acquire some suggestions along with successful promotion in a jovial environment. The comments on the social media platforms and play store will help us to get idea about the thoughts of the consumers. this will help us to improve our product and capture new market. Anand market if successfully safeguard our position, we will be planning for the expansion in the new markets of Ahmedabad and Baroda.

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SITUATION ANALYSIS MARKET NEED IDENTIFICATION: India is known to be a fruit basket of the world. After China, India has been considered as the second largest producer of fruits. Due to skilled manpower deficiency, poor cold storage facilities, inefficient post harvest management and minimal technological interventions, India is the second largest producer contributes only 1% of the global market of the fruit processing industry. In India, the wastage of fresh fruit, produce has been estimated to be of a very high order, i.e. around 30-35% of the total production during harvest, storage, grading, transport, packaging and distribution because of the challenges involved in the industry. With the creation of adequate specialized cold storage facilities, logistics infrastructure, skilled manpower and modern technological interventions, post harvest losses can be minimized resulting in higher returns to the major stakeholders of the entire fruit supply chain i.e. farmers and the consumers1.

In India, people crave for very delicious seasonal fruits. Seasonal fruits are those which remain available in market for few months say 1-4 months. Void of seasonal fruits all over the year in market mold people to various processed fruit viz. juices, jam , jellies, marmalade, fruit cheese, pickles, sauces, ice-cream, Shrikhand, halwa etc. Many such products are available in market, but people wants variety of other unexplored applications which will be tasty, healthy & available throughout the year.

Because of existing need and cr aving of people for processed seasonal fruit we need an intervention in the form of various seasonal fruit packaged basundi, which will have longer shelf life. So people will be delighted if we can give the taste of these fruits in offseason through basundi. Young students during survey also expressed that they prefer custard apple basundi or custard apple ice cream rather than custard apple due to convenience of eating. Also most of the people belong to high income group so they are ready to spend money if the quality is good.

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MARKET GROWTH AND TRENDS: The Indian food processing industry accounts for 32 % of the country‟s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth2. It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP). The food industry is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$65.4 billion by 20183

India is the world‟s largest milk producer and dairy is the one of the most promising segments of food processing4. Demand for dairy products is expected to grow at a healthy rate of 15 to 20 per cent over the next five years5. The segment offers a high potential for value addition – the level of processing value addition, at 37 per cent, is amongst the highest in the food processing industry. At the same time the share of organised players is still small, at 15 per cent, indicating the potential for growth for organised players. Basundi business is characterised by high volumes and low margins. Penetration levels are yet quite low in this segment, with product acceptance largely restricted to the urban population. Product innovation and branding play a key role in success of these products

PRODUCT AND ITS CHARACTERISTICS Value Proposition: Currently, few companies have basundi in their product portfolio that too with few flavours only. It is because of this unfulfilled need, we have come-up with the concept of various seasonal fruit flavoured basundi with shelf life of one month.

1

Fruit processing industry in India, Research gate, Jan 2016

(https://www.researchgate.net/publication/298855725_Fruit_Processing_Industry_in_India_A_Short_Review) 2 Processed Fruits & Vegetables, Agricultural and Processed Food Product Export Development Authority (APEDA), 2015

(http://apeda.gov.in/apedawebsite/SubHead_Products/Other_Processed_Fruits_Vegetables.htm) 3 Food and agriculture organization (FAO), 2013 (http://www.fao.org/Wairdocs/X5434E/x5434e05.htm) 4

A joint report by IIM-Calcutta and Academic Foundation- India Food Report, 2016. (http://www.ibef.org/industry/indian-food-industry.aspx) 5

Food Processing Market and Opportunity, India Brand Equity Foundation, 2016 (http://www.ibef.org/download/Food_Processing_270608.pdf)

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We can say that the demand for such product is latent. Because of existing need & craving of people for processed fruit in dessert category, we plan to launch our basundi delicacy, AMBROSIA in four flavours viz. Orange, Custard Apple, Mango & Pine-apple.

Product Characteristics: Basundi is defined as a preparation of boiled and sugared milk (Cow or Buffalo), used mostly in western and southern part of India. Ambrosia Basundi has a more thick body than the normally present in basundi and it will be enriched with the richness of fruit pulp/juice, which is main characteristic of this product. The product will have a granular texture. Ambrosia basundi prepared by standardized process having light brown colour and smooth consistency with minute suspended flakes has a balanced composition of fat 18-22 %, sucrose 20-22 %, protein 7-9 % and 28-32 % total solid. Various physico-chemical properties are acidity 0.3-04 %, PH 6.00-6.70, specific gravity 1.12 and viscosity 75.24 mPa.s6.

Basundi available in market has a very short shelf life of 1-2 days except one or two companies which gives six month shelf life but available only in one flavour. Our Product will be available in four delicious fruit flavour viz Orange, Custard Apple, Mango & Pine-apple in poly propylene glass which will remain in good condition for 30 days at 7-9 ⁰C. Stock keeping units will be 200 ml, 500 ml & 1 Litre

ANALYZING ENVRIONMENT

Macro Environment Demographic Environment: Population Growth- Population of Anand grew by 12.8 % in 2011 from 2001. Current population of anand city is 209,410. Many factors contribute to the increase in population viz. migration from rural area to anand, migration from other cities to anand for job.

6.

Development in Dairy Traditional product, 2006 (http://www.dairyprocessingcaft.com/wp-content/uploads/2012/05/Traditional-Dairy-Products-2006.pdf)

7. Population development of anand, 2011 (https://www.citypopulation.de/php/india-gujarat.php?adm2id=2415)

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Also, Anand is known as education hub, many aspirational students come here for higher education. Lots of manufacturing companies are located near anand which results in overall market size expansion and thus opportunities & demand of our product. Employment Status (Census 2011) usually employed

61,032

casually employed

10,993

not employed

114,843

Table 1- Employment status of Anand city, census 2011

Literacy level of population- Literacy level of Anand city is high i.e. 84.37 % and national average is 59.5 %. Male literacy is 91.82 % and female is 76.36 %. A high level of literacy indicates higher involvement in purchase decision and more inclination towards quality & tasty products. With the level of education increases people get aware more about hygiene and will prefer packaged basundi instead of open which is made by local halwai. Economic Environment: Economy of the anand is very vibrant which ranges from farming to big scale industries. City also consists of large number of NRI population and businessmen. Mostly people belongs to higher income group and middle class, they had a potential to spend money for the taste and quality. Expenditure data on desserts, dairy products and juices of local people is highly prominent. Technological environment: Ambrosia is a product which is evolved from many technological innovation and unique procedures and packaging. Our portfolio of products includes Orange, custard apple , mango and pineapple basundi, this fruits are seasonal and are available in market for on-an average 1-4 months a year

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Our unique process of pulp extraction, preservation, production of basundi & packaging will serve the need of customer throughout the year8. Our product category is highly perishable and at each stage we have high risk involved in handling the fruits and preserving the pulp throughout the year. Inspite of all we will make sure that the product is free from the problems of bitterness, development of off-flavor, discoloration. Socio-cultural Environment: Anand perfectly represents the culture of Gujarat state, no gujarati meal is complete without dessert being served, During survey one of the notable response on dessert was “Either we will eat it after or before meal, but damn sure that we will eat”. People of Gujarat love to eat sweet, Gujaratis are known for their sweet tooth and always look for exploring the variety of sweets. This will help in easy movement of product in market and then to houses. Hence we can conclude that every external factor is in favour of AMBROSIA and we can expect a huge success after the launch. MICRO ENVIRONMENT The Company: Anant Sambhavam Group launching the product under the brand name “AMBROSIA”. Group consists of six very enthusiastic, knowledgeable and hardworking people having sound knowledge of operations, marketing and finance. Well equipped with the technology, designed value chain and supply chain will results into continuous prompt supply. Quality Assurance & Quality Control, Marketing & sales team will ensure th...