15-02-2013, 11:50 AM
NECTAR BEVERAGES PRIVATE LIMITED, DHARWAD
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INDUSTRY PROFILE
INTRODUCTION TO FRUIT JUICES
With people turning more health conscious, the non-carbonated beverage segment has become one of the fastest growing and most exciting businesses at the moment. Evolving from drinks containing a hint of herbs or vitamins, beverages have become an important delivery vehicle for efficacious amounts of nutritional ingredients. Beverages are unusual products in that everyone expects to try new varieties, even from established brands.
The Rs.500 crore non-carbonated beverage market in the country is composed of fruit drinks, nectar and juices. While the fruit drink segment is estimated at Rs. 250¬-300 crore (branded and packaged), the juice market is valued at Rs 150 crore and the nectar is a small category of about Rs 35-50 crore. And the popular brands vying for a share in the sector are Parle's Frooti, Godrej's Jumpin, Coca Cola's Maaza, Pepsi's Tropicana, and Dabur's Real, Nestle's Milo, Soy milk from ProSoya and branded fruit juices from Surya Foods among others.
FRUIT JUICE INDUSTRY IN INDIA:
The branded fruit juice market in India is estimated to be worth Rs 120 crore (Rs 1.2 billion) and the segment is growing at about 30 per cent per annum. The market leader is Dabur's Real Fruit (50 per cent to 55 per cent) followed by Pepsi's Tropicana (which is not produced in NBPL)..
The major gainers this time around are likely to be leaders in the Rs.150-crore juices industry: Dabur Foods' Real brand that owns 57% of the organised market and Pepsi's Tropicana, which accounts for a little over quarter of the market, according to industry sources. New entrants such as Mohan Meakin that retails juices under the Gold Coin brand, See buckthorn Indage's Leh Berry and Coco Joos from Rittal Impex will benefit as the fruit juices market grows 20%-25% annually.
BACKGROND AND INCEPTION OF THE COMPANY:
In 1984, Nectar Beverages used to produce the Parle products. Like the East India Company centuries ago, the Coca Cola Company entered India in 1994 and ordered all bottlers of Parle products to surrender their plants and businesses to them on expiration of the contract in November 1997. The bottlers of India could not measure up to the huge conqueror from Atlanta and therefore gave up. Some however resisted but eventually were forced to give in. However, Fomento group had out rightly rejected this neo-colonialism. Providence came to their rescue in the form of a Pepsi franchise.
On November 23, 1997, Goa Bottling began producing products of Pepsi Cola Company, Pepsi, Mirinda, Orange, Lehar Soda, Slice Mango, Mirinda Lemon, 7-Up and other products.
The Pepsi Cola Company (called Pepsi Foods Ltd. In India), although thanks globally about its businesses, but it acts locally in its style.
The company believes that local businesses, entrepreneurs, people, are best managed by themselves. Unlike Coca Cola India, which is almost entirely run by American expatriates, Pepsi Company in India (Pepsi Foods Ltd.), is 100% operated by people of Indian skin, culture and pride.
Nectar Beverages was brought to a standstill. The workers moved into the streets themselves to sell Pepsi products. It was of those rare examples in the world where there are no differences between Management and workers and both are partners in fighting the common enemy.
In spite of the plant being closed, all the workers were honorably paid, even though there was total shutdown. Over capacity through Goa plants raised a question of whether or not to restart Nectar Beverages.
SWOT ANALYSIS.
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for Strengths, Weakness, Opportunities, and Threats. Strength and weakness are internal factors and opportunities and threats are external factors. SWOT analysis should distinguish between where your organization is today, and where it could be in future. SWOT analysis is a key concept in the world of corporate planning, strategy formulation and other practical spheres of management.
CONCLUSION:
The market research study conducted using the survey method for determining the market potential for fruit juice in Gadag-Betageri cities. Recommendations have been drawn by the study which will help the company for effective launching of the fruit juice in the market. It is found that juice is on rise because people are becoming health conscious. The company should introduce the fruit juice in small tetra packs of 100ml to penetrate the market. The pricing should be reasonably low compared to competing brands of fruit juices. The unorganized fruit juice is most popular in these cities.