1.INTRODUCTION· Appy fizz is a product of Parle agro andis a champagne in the fruit drinks segment.· Appy fizz is thefirst ever India’s sparkling juice drink.
· Starting out in 2005 as agreat-tasting, healthier alternative to colas, ‘Fizz’ soon became a favouriteamongst the Indian youth.· Appy Fizz standed out becauseof its mascot, who happens to be the bottle itself – an opinionated, walking,talking character with a quirky sense of humour which clicked with the youthalmost instantly. ABOUTTHE COMPANY· Parle Agro is an offshoot of Shaunak’s Parle Products, whichwas founded in 1929 in British India. It was owned by the Chauhan familyof Vile Parle, Mumbai. · Parle Agro commenced operations in 1984. It started withbeverages, and later diversified into bottled water (1993), plastic packaging(1996) and confectionery (2007). · Frooti, the first product rolled out of Parle Agro in 1985, becamethe largest selling mango drink in India.
· The original Parle group was amicably segregated into threenon-competing businesses. 1. Parle Products, led by Vijay, Sharad and RajChauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Kismi ToffeeBar, Monaco and Krack Jack)2. Parle Agro, led by Prakash Chauhanand 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 acompetitor to Parle Products. · ParleAgro works under three main categories:1. Beverages2. Water3.
Foods 2.SEGMENTATIONTARGETING AND POSITIONING(STP) Segmentation:· Masspopulation whose income is more than 10000 have been segmented.· Productfound a segment in the market due to its low price, healthy drink andnon-carbonated drink nature.
· Dueto cheap price the customer segment for the product increased and more peoplebrought it. Targeting:· Themajor target was among the kids, Indian youth and fitness and sports people.· Theprimary market targeted was kids, teen, youth, working people and women.· Thesecondary market targeted was among the recreational centres and travelindustry. Positioning: · ParleAgro positions their product in the market through cool, trendy , youthfullegendary and iconic like Shah rukh khan and Priyanka chopra for frooti andappy fizz respectively.
· Theyconstantly update their packing structure by introducing tetra packs, PETbottles etc…· Advertisementsand campaigns are being conducted often to showcase how consumer gets connectwith FIZZ and to position themselves properly.· Theirtagline is “A cool drink to hang out with”.· Theiradvertising is unique and done in a way such that brand does not lose itsidentity. 3.PRODUCT AND PRICING STRATEGY · Appyfizz has a good quality than other juices or cold drinks since it has applejuice which is good for the human body.· Thestrategy of the company was to attract the young customer and aware them aboutthis healthy drink.· Theproduct is made available in the market in three different size namely300ml,500ml and 1 litre.
· Appyfizz is made available in the market with different price segment depending onits level as 15rs, 25rs and 48rs.· Priceof appy fizz is 10% higher than other competitors like real apple, fanta etc…· Appyfizz is promoted with advertisements projecting them as a heathy fruit juicemeant for young people.· Incompetence with Coca-Cola drinks, appy fizz promote themselves.· They promote more through Tv ads, internet,posters, banners etc…· “Acool drink to hang out with” tagline of appy fizz was more impressive andattracted more youth towards it.
· Thetagline was used mostly in their ads after some jokes and it has also became apart of their packaging which has become a part of appy fizz.· Anothertagline for small size packaging of appy fizz (15Rs) was ” what’s the price ofthe party” attracted the younger people to enjoy their party at home.· Theinitial promotion of appy fizz was done by creativeland asia using the famousstar Saif Ali Khan which portrayed of appy fizz making fun with actor in an attractive manner.
· InDecember 2006 ad was created by grey worldwide called television song whichportrayed the concept of drink appy and watch television when we have nothingelse to do.· Anotherad by grey worldwide was refrigerator song which featured cartoonist charactersdepicting to store the appy fizz in the refrigerator. 4.
MARKETSHARE, PROFIT AND SALES · Appyfizz holds a market share of nearly 70% being a leader in the apple nectarcategory.· Frootiof Parle Agro holds a share of 85% and 33% in the tetra pack and PET categoryrespectively in the market.· Beveragessector of the Parle Agro holds a market share of 81.
25% compared to othersectors.· Appyfizz launched its product in returnable glass bottles in the rural as well assmall towns.· Thisinitiative was taken by the company to penetrate into the unreachable marketand increase their market share.· RGB’Scontribute to the 40% of the total volume of Rs.
15000 crore of the Indian beverage market.· Theinitiative was taken as a step to increase their sales volume.· Theirsales is in a increasing pace, in 2016 it was around 1364 crores.· Theyhave a profit margin of around 525 crores in 2016.· Thecompany is hoping to cross the Rs.5000 crore mark by 2018. 5.
COMPETITION AND CHALLENGES · Themajor challenge product faced was with the mango flavoured drinks in themarket. Apple juice is preferred very less when compared to that of the mangojuices.· Eventhe companies own frooti has once been a challenge for appy fizz· Comparedto appy, frooti had a very high advertising and a higher marketing budget.· Initialperception of appy from customers was that it was perceived as drink forchildren but the actual plan was that it was introduced as a drink forteenagers.· Inorder to overcome the challenges company has launched a six week longtelevision campaign showing a group of youngsters chilling out with Appy Fizz.
· Thecampaign was done on channels like ESPN, zee café, star world and star plus.· Aradio and hoarding campaign is soon to be unveiled on all metros.· Priceelastic nature of the Indian softdrinks market is also a greater challenge forthe company.· Thecompetitor from company itself is the latest Frooti fizz which will have agreater market share.· Frootifizz has reached 3.2 lakh outlets in a rapid manner whereas appy fizz is in 3.5lakh outlets.· Thelatest product from the parle agro is Grappy fizz which is a grape juice hasalso became a competitor for appy fizz.
· Theother competitors for appy fizz are:1. Minutemaid apple2. Realapple3. Tropicanaapple4.
Detmonte apple5. Paperboatapple 6.MARKETINGINSIGHTS · Thenew marketing campaign of appy fizz repositioned many things.· Thepackage was changed.· Thelogo was tweaked and the design was in line with the Frooti logo design.· Thetagline was changed to “Feel the Fizz”.
· Theappy fizz character has been discarded.· Newcelebrity Priyanka Chopra has been endorsed.· Feelthe Fizz tagline has been felt old and not that much attractive so anytime thecompany may be forced to use the previous tagline.· Appyfizz is by nature a niche product.· Thecurrent campaign shows the celebrity more in ads rather than the product whichis not a good measure of promoting the product.
· Thelatest campaign was done in such a way to increase the curiosity among thepeople.