Relaunch of Frooti-The 'Digen Verma' Campaign

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Case Details:

Case Code : MKTG005
Case Length : 5 Pages
Period : 2000-2001
Pub Date : 2001
Teaching Note : Available
Organization : Parle Agro
Industry : Food, Beverages & Tobacco
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

'Frooti' faltering?

'Frooti' was launched by Parle Agro in 1984. It was the first tetrapak drink to be introduced in the Indian market. By 2000, Frooti had a majority market share of the Rs. 300 crore tetrapak fruit drink market. However analysts felt that this 16-year-old brand had been losing its appeal over the years.

The brand, which scored a 100 on product likability and quality and a 95 on product recall, had dropped in the top-of-the-mind ranking to 60, from 95 two years ago.

The sales of 'Frooti' also had dropped over the years. The situation worsened with the increase in competition.

In addition to the threat it faced from soft drinks marketers, Frooti' witnessed heightened competition in its own segment tetrapak fruit drinks and juices. With pressure mounting from all sides, Parle Agro was forced to rethink its strategy...

Campaign Tale

The youth segment, which 'Frooti' targeted, was extremely difficult to break into partly because of the perception that 'Frooti' was a kids drink and partly because of the hold that competitors had already established over the market.

By targeting the youth, 'Frooti' would be in direct competition with the Cola MNCs (Pepsi and Coca-Cola) which were immensely popular, not to mention other tetrapak fruit drinks and all the other beverages targeted at the youth.

The relaunch strategy for 'Frooti' therefore focussed on the one hand on breaking the image which the youth associated 'Frooti' with and on the other on convincing the youth that it was a better alternative than the colas.

Said, Prakash Chauhan, MD, Parle, “For some reason, a soft drink in tetrapak is perceived as one meant for children...

Can Digen Verma Generate Sales?

The 'Digen Verma' campaign seemed to have been very successful in terms of the interest it generated. For Rs. 30 million spent on it, the customer awareness it was likely to capture for 'Frooti' seemed quite phenomenal. Though the campaign had been successful in generating interest, some analysts were skeptical about whether a campaign could actually generate sales...


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