Minute Maid

Submitted to: Sir Bilal Ilyas Group members: Hashir Khan Sehar Aslam Khadija Iqbal Sarfraz Khan Umer Asif 11589 11581 11577 11575 11529

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Minute Maid Table of Contents

E........................................................................................................................ 4 ECUTIVE SUMMARY............................................................................................5 Minute Maid in Pakistan..................................................................................6 COMPANYS MISSION...................................................................................6 COMPANYS VISION.....................................................................................7 Our Values.................................................................................................. 8 COMPANYS VALUES....................................................................................8 At Minute Maid we are committed to providing organic and hygienically processed food products to our customers........................................................8 PAPAYA PULP ....................................................................................................9 DESCRIPTION..................................................................................................9 USES........................................................................................................... 9 SITUATIONAL ANALYSIS...................................................................................10 MICRO ENVIRONMENT..................................................................................10 INTERMEDIARIES..........................................................................................10 CUSTOMER......................................................................................................13 MACRO ENVIRONMENT....................................................................................14 POLITICAL FACTORS.....................................................................................14 CULTURAL FACTORS.....................................................................................15 TECHNOLOGICAL FACTORS...........................................................................15 market analysis ..............................................................................................16 MARKET SIZE................................................................................................16 MARKET GROWTH TREND................................................................................16 COMPETITORS ANALYSIS.................................................................................20 Rani Juice ........................................................................................................21 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 years 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. 21 Fresher Juice ...................................................................................................21

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Minute Maid
Juice Nahi, Fruit Hai Yeh its 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 dont offer pulpy of fruits in their juice and this is only edge for Minute Maid . ........21 CORE COMPETENCIES OF KEY PLAYERS...........................................................22 EVALUATING THE CUSTOMERS IN TERMS OF CORE NEEDS AND WANTS..........22 THE BUYING HABITS OF CUSTOMERS...............................................................22 Budgeting........................................................................................................24 DIFFERENTIATION AND POSITIONING STRATEGY..............................................24 4 Ps................................................................................................................ 28 Price................................................................................................................ 28 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....................................28 Product .......................................................................................................... 28 As our product is new we should promote Papaya health benefits...................28 Place...............................................................................................................28 For promotion we will use Colleges , Universities and Shopping Malls , it would be best place to promote and over there we will do free sampling .................28 PROMOTION.....................................................................................................28 PROMOTIONAL BUDGET...................................................................................29 SALES PROMOTION..........................................................................................29 Direct Marketing..............................................................................................29 POSITIONING ..................................................................................................31 TARGET CUSTOMER.........................................................................................31 REGULAR USERS..............................................................................................31

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Minute Maid

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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

COMPANYS MISSION
Our 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

COMPANYS VISION
Our 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 Values
Our 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

COMPANYS 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.

DESCRIPTION
Deliciously 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.

USES
Papaya 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 gellike 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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Collection Mechanism

Direct Collection
* Minute maid Outlets * 8 Regions * 100 Plus outlets in each region

Indirect Collection

* Intermediaries Provide Raw Material

90 80 70 60 50 40 30 20 10 0

East West N orth

1 Qtr st

2 Qtr nd

3 Qtr rd

4 Qtr th

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Minute Maid

9 0 8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0

East West North

1st Qtr

2 Qtr nd

3 Qtr rd

4 Qtr th

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 wouldnt have been able to achieve its 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 maids 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 dont have idea of cleanliness from biological aspects. There are manypacked 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 Nestls Share Others 50% 30% 20% 2.1 million 1.26 million 0.84 million

MARKET GROWTH TREND Market is increasing at the rate of approximately 26%.

8 7 6 5 4 3 2 1 0 2000 2001 2002 2003 2004 2005 Sales in liters

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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Minute Maid 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 19 | P a g e

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

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Minute Maid Good management 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 years 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 its 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 dont offer pulpy of fruits in their juice and this is only edge for Minute Maid .

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Minute Maid

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 Nestls 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 Nestls 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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Minute Maid

Shezan Juice 50 % Market Share Urban & Rural Area as target market

Remaining: 15% Market Share Includes Tops, Country etc. Varies in quality

Nestle 30 % Market Share Rural Area as target market High in price

Papaya Pulp 5% Market Share Rural Area as target market Less sugar

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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 3.2 billion sales) Papaya sales 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.

DIFFERENTIATION AND POSITIONING STRATEGY

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Minute Maid 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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Minute Maid

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 To increase sale volume To maintain or increase market share To stabilize prices To meet competition

Sales oriented

Status quo-oriented

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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Minute Maid 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 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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Minute Maid Comparison with The Competitors Pricing Strategy.

BRANDS Papaya Pulp Nestle Shezan

SIZE 1Ltr 500ml 1 Ltr 250ml 1 Ltr 250ml

PRICE Rs. Rs. Rs. Rs. Rs. Rs. 65 20 60 15 28 8

4 Ps 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 Colleges , 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: PROMOTIONAL METHODS The company mainly uses the following two promotional methods: 28 | P a g e

Minute Maid * * * * * * 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

Direct Marketing

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Minute Maid 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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Minute Maid

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.

SUMMARY OF HEALING PROPERTIES OF PAPAYA

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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 dont 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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