1.INTRODUCTION ever India’s sparkling juice drink. · Starting out

1.INTRODUCTION

·      
Appy fizz is a product of Parle agro and
is a champagne in the fruit drinks segment.

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·      
Appy fizz is the
first ever India’s sparkling juice drink.

·      
Starting out in 2005 as a
great-tasting, healthier alternative to colas, ‘Fizz’ soon became a favourite
amongst the Indian youth.

·      
Appy Fizz standed out because
of its mascot, who happens to be the bottle itself – an opinionated, walking,
talking character with a quirky sense of humour which clicked with the youth
almost instantly.

 

ABOUT
THE COMPANY

·       Parle Agro is an offshoot of Shaunak’s Parle Products, which
was founded in 1929 in British India. It was owned by the Chauhan family
of Vile Parle, Mumbai. 

·       Parle Agro commenced operations in 1984. It started with
beverages, and later diversified into bottled water (1993), plastic packaging
(1996) and confectionery (2007). 

·       Frooti, the first product rolled out of Parle Agro in 1985, became
the largest selling mango drink in India.

·       The original Parle group was amicably segregated into three
non-competing businesses.

1.   
Parle Products, led by Vijay, Sharad and Raj
Chauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Kismi Toffee
Bar, Monaco and Krack Jack)

2.   
Parle Agro, led by Prakash Chauhan
and his daughters. (owner of the brands such as Frooti and Appy)

3.   
Parle Bisleri, led by Ramesh Chauhan

·      
All three companies continue to use the family trademark name
“Parle”.

·       But a dispute over the use of “Parle” brand arose,
when Parle Agro diversified into the confectionery business, thus becoming a
competitor to Parle Products. 

·       Parle
Agro works under three main categories:

1.   
Beverages

2.   
Water

3.   
Foods

 

2.SEGMENTATION
TARGETING AND POSITIONING

(STP)

 

Segmentation:

·       Mass
population whose income is more than 10000 have been segmented.

·       Product
found a segment in the market due to its low price, healthy drink and
non-carbonated drink nature.

·       Due
to cheap price the customer segment for the product increased and more people
brought it.

 

Targeting:

·       The
major target was among the kids, Indian youth and fitness and sports people.

·       The
primary market targeted was kids, teen, youth, working people and women.

·       The
secondary market targeted was among the recreational centres and travel
industry.

 

 

 

Positioning:

 

 

·       Parle
Agro positions their product in the market through cool, trendy , youthful
legendary and iconic like Shah rukh khan and Priyanka chopra for frooti and
appy fizz respectively.

·       They
constantly update their packing structure by introducing tetra packs, PET
bottles etc…

·       Advertisements
and campaigns are being conducted often to showcase how consumer gets connect
with FIZZ and to position themselves properly.

·       Their
tagline is “A cool drink to hang out with”.

·       Their
advertising is unique and done in a way such that brand does not lose its
identity.

 

3.PRODUCT AND PRICING STRATEGY

 

·       Appy
fizz has a good quality than other juices or cold drinks since it has apple
juice which is good for the human body.

·       The
strategy of the company was to attract the young customer and aware them about
this healthy drink.

·       The
product is made available in the market in three different size namely
300ml,500ml and 1 litre.

·       Appy
fizz is made available in the market with different price segment depending on
its level as 15rs, 25rs and 48rs.

·       Price
of appy fizz is 10% higher than other competitors like real apple, fanta etc…

·       Appy
fizz is promoted with advertisements projecting them as a heathy fruit juice
meant for young people.

·       In
competence with Coca-Cola drinks, appy fizz promote themselves.

·        They promote more through Tv ads, internet,
posters, banners etc…

·       “A
cool drink to hang out with” tagline of appy fizz was more impressive and
attracted more youth towards it.

·       The
tagline was used mostly in their ads after some jokes and it has also became a
part of their packaging which has become a part of appy fizz.

·       Another
tagline for small size packaging of appy fizz (15Rs) was ” what’s the price of
the party” attracted the younger people to enjoy their party at home.

·       The
initial promotion of appy fizz was done by creativeland asia using the famous
star Saif Ali Khan which portrayed of appy fizz 
making fun with actor in an attractive manner.

·       In
December 2006 ad was created by grey worldwide called television song which
portrayed the concept of drink appy and watch television when we have nothing
else to do.

·       Another
ad by grey worldwide was refrigerator song which featured cartoonist characters
depicting to store the appy fizz in the refrigerator.

 

4.MARKET
SHARE, PROFIT AND SALES

 

·       Appy
fizz holds a market share of nearly 70% being a leader in the apple nectar
category.

·       Frooti
of Parle Agro holds a share of 85% and 33% in the tetra pack and PET category
respectively in the market.

·       Beverages
sector of the Parle Agro holds a market share of 81.25% compared to other
sectors.

·       Appy
fizz launched its product in returnable glass bottles in the rural as well as
small towns.

·       This
initiative was taken by the company to penetrate into the unreachable market
and increase their market share.

·       RGB’S
contribute to the 40% of the total volume of 
Rs.15000 crore of the Indian beverage market.

·       The
initiative was taken as a step to increase their sales volume.

·       Their
sales is in a increasing pace, in 2016 it was around 1364 crores.

·       They
have a profit margin of around 525 crores in 2016.

·       The
company is hoping to cross the Rs.5000 crore mark by 2018.

 

5.COMPETITION AND CHALLENGES

 

·       The
major challenge product faced was with the mango flavoured drinks in the
market. Apple juice is preferred very less when compared to that of the mango
juices.

·       Even
the companies own frooti has once been a challenge for appy fizz

·       Compared
to appy, frooti had a very high advertising and a higher marketing budget.

·       Initial
perception of appy from customers was that it was perceived as drink for
children but the actual plan was that it was introduced as a drink for
teenagers.

·       In
order to overcome the challenges company has launched a six week long
television campaign showing a group of youngsters chilling out with Appy Fizz.

·       The
campaign was done on channels like ESPN, zee café, star world and star plus.

·       A
radio and hoarding campaign is soon to be unveiled on all metros.

·       Price
elastic nature of the Indian softdrinks market is also a greater challenge for
the company.

·       The
competitor from company itself is the latest Frooti fizz which will have a
greater market share.

·       Frooti
fizz has reached 3.2 lakh outlets in a rapid manner whereas appy fizz is in 3.5
lakh outlets.

·       The
latest product from the parle agro is Grappy fizz which is a grape juice has
also became a competitor for appy fizz.

·       The
other competitors for appy fizz are:

1.    Minute
maid apple

2.    Real
apple

3.    Tropicana
apple

4.    Det
monte apple

5.    Paperboat
apple

 

 

6.MARKETING
INSIGHTS

 

·       The
new marketing campaign of appy fizz repositioned many things.

·       The
package was changed.

·       The
logo was tweaked and the design was in line with the Frooti logo design.

·       The
tagline was changed to “Feel the Fizz”.

·       The
appy fizz character has been discarded.

·       New
celebrity Priyanka Chopra has been endorsed.

·       Feel
the Fizz tagline has been felt old and not that much attractive so anytime the
company may be forced to use the previous tagline.

·       Appy
fizz is by nature a niche product.

·       The
current campaign shows the celebrity more in ads rather than the product which
is not a good measure of promoting the product.

·       The
latest campaign was done in such a way to increase the curiosity among the
people.