Since its inception in 1985, Frooti has been a staple at various occasions, from birthday parties to weddings, serving as a refreshing beverage choice. Today, within the 8000 crore industry, it commands a substantial 48% share, marking its significant contribution. Transitioning from its humble beginnings, Tetrapacked Frooti has ascended to become India’s premier beverage, reigning supreme in the market.
Though initially a 300-crore business under Prakash Chauhan’s leadership, Frooti saw exponential growth to reach 4000 crores in just a few years. However, the pivotal shift came under the guidance of Nadia Chauhan, daughter of Prakash, who took charge of the beverage division Parle Agro within Parle groups, established by her grandfather Mohanlal Chauhan. Nadia’s strategic marketing approach played a crucial role in this remarkable transformation. Now, let’s delve deeper into her fascinating success story.
PC: Printweek India
Marketing Strategy Behind Frooti:
“A Good Marketing Strategy Brings Out The Best Outcomes“. The Chauhans followed the rule efficiently. Right from the outset, Prakash Chauhan astutely implemented his marketing strategy by introducing Frooti with mango flavor, tapping into the Indian fondness for mangoes. Its launch marked a significant milestone as Parle Agro became the first company to offer Frooti in a convenient tetra pack format, aligning with Indian consumer preferences for trial purchases. This innovation contrasted favorably with Coca-Cola and PepsiCo glass bottle sales, which required returns to shopkeepers post-consumption. Coupled with competitive pricing, this approach proved highly successful, establishing Frooti as a preferred beverage choice.
Another significant aspect of Frooti’s success was its visually appealing green packaging, which contributed to its allure. Under Prakash’s chairmanship, the company thrived, reaching a 300 crore milestone, with Frooti accounting for 95% of its revenue.
However, Nadia’s entry into the business at the age of 17 brought fresh perspectives and aspirations for expansion. Growing up in a business-oriented family provided her with valuable insights and maturity to envision the company’s growth trajectory. With ambitious goals, she aims to elevate revenue to 20,000 crores by 2030. Amid Frooti’s triumph, Schauna Chauhan, CEO of Parle Agro and elder daughter of Prakash Chauhan, also played a pivotal role. Now, let’s explore their innovative marketing strategies.
1. Color Marketing:
Upon joining the company, Nadia Chauhan’s first initiative was to revamp the packaging. Despite green being soothing, she opted for a vibrant yellow hue to better reflect the mango juice inside. Collaborating with New York-based studio Sagmeister & Walsh, they redesigned the packaging color and removed the regular rectangular shape into the Pentagon structure, retaining only the title in green. Now, whenever we think about Frooti yellow color automatically appears in one’s mind. This bold move proved successful, enhancing the product’s visual appeal and contributing to the company’s success.
2. Packaging Innovation: The Samosa Pack
In her next strategic move in 2004, the company pioneered the introduction of mango juice in a triangular Indian Samosa Pack, priced at just ₹2.50, targeting the rural market. This innovative packaging allowed Frooti to penetrate even the most remote areas of Rural India, where purchasing power is typically lower. Though specific sales figures aren’t disclosed, Nadia Chauhan fondly refers to this SKU as ‘Magic Frooti’ due to its remarkable impact on brand sales.
3. Reduce Dependency On One Product:
By 2004, the company’s reliance on Frooti sales, comprising about 95% of its revenue, raised concerns about future profitability. Recognizing the risks associated with being solely a mango juice provider amidst competitors like Slice, Maaza, and Real, diversification became imperative. Dependence on a single product posed significant risks, highlighting the need to broaden the product portfolio to ensure sustained profitability and mitigate market uncertainties.
In 2005, Nadia initiated a diversification strategy by introducing Appy Fizz, India’s first apple-flavored soft drink under Parle Agro. This innovative move proved to be a game-changer, significantly boosting the company’s profit margin to 70% and increasing the CAGR to 36%. Not only did it mark a pivotal moment for the company, but it also revitalized Frooti’s relevance in the market.
4. Remove Kid Centric Tag:
Before 2012, advertising efforts primarily targeted children. However, recognizing the importance of appealing to a broader demographic, the company adopted a strategic shift by enlisting Brand Ambassadors. Starting with Shahrukh Khan in 2012, the company gradually diversified its roster with celebrities like Allu Arjun and Varun Dhawan. Presently, the brand ambassadors include Ram Charan and Alia Bhatt, representing diverse age groups and conveying the message that Frooti is suitable for everyone. This strategic move effectively broadened the brand’s appeal and market reach.
5. Sales Network:
Frooti’s sales network is extensive and diverse, utilizing various channels and strategies to ensure broad consumer access. Firstly, it is widely available in retail stores spanning from grocery shops to supermarkets, catering to both urban and rural areas. Additionally, wholesalers play a crucial role in distributing Frooti to smaller retailers, further enhancing its accessibility.
The brand has also capitalized on the online market, making Frooti available on e-commerce platforms for convenient purchasing. Moreover, Parle Agro’s direct distribution system ensures efficient supply chain management and timely deliveries. Frooti’s presence extends beyond traditional retail channels to include institutional sales to schools, offices, and hospitals. Furthermore, the brand engages in promotional activities to increase visibility and drive sales. Lastly, Frooti’s international presence expands its reach to global markets. Through this multi-faceted approach, Frooti maximizes its market penetration and sales potential.
A Perfect Duo Partnership:
The success of Parle Agro is attributed to the harmonious partnership between the Chauhan sisters. Schauna oversees manufacturing, compliance, quality, finance, and technical aspects, while Nadia focuses on strategy, sales and marketing, and research and development. This division of responsibilities, aligned with their respective strengths, has propelled Parle Agro to unprecedented success. Together, they constitute a dynamic duo that has revolutionized the industry and established Parle Agro as a dominant force in the market.
Conclusion:
In conclusion, Frooti’s success story is a testament to the power of innovation, strategic thinking, and adaptability. From its inception as a pioneering mango-flavored drink to its evolution into a diverse beverage portfolio, Frooti has consistently adapted to changing consumer preferences and market dynamics. Through innovative packaging, strategic diversification, and effective marketing initiatives, Frooti has solidified its position as a household name in India. As it continues to expand its reach and offerings, Frooti exemplifies resilience, vision, and a relentless pursuit of excellence in the ever-evolving beverage industry.
See our latest blog on Cashify…