Appy Fizz is a product by Parle Agro, introduced in India in 2005. Appy Fizz consists of carbonated apple juice, and is used as the basis for cocktails and is a popular drink with the youth. After the success of Appy which was clean apple juice, Parle launched its sequel product as Grappo Fizz, which is a carbonated grape juice.
The drink was the subject of a successful campaign of advertising at cricket matches in 2005-08.
Appy Fizz is also manufactured and marketed in Bangladesh by Global Beverage Co Ltd. under license from Parle Agro. Appy fizz nowadays is at a high demand. Appy fizz as opposed to the messaging hoax does not cause cancer.
Priyanka chopra is currently a celebrity endorser of Appy fizz.
2. Fourth largest sector in the Indian economy FMCG sector
Developing awareness, easier access & changing lifestyles have been the key for growth in sector
The number of online users in India is likely to cross 850 Million by 2025.
People are elegantly accepting Ayurvedic products, which has occasioned in growth of FMCG,
Patanjali Ayurveda, with a m-cap of US$ 14.94 Billion. The company aims to developed globally in
the next 5-10 years
Household & Personal Care is the leading segment, accounting for 50% of the overall market. Hair
care (23%) and Food & Beverages (19%) comes next in terms of market share
The Food processing sector is the key link between Agriculture & Manufacturing. In a developing
economy like India, it contributes as much as 9 -10% of GDP, in Agriculture & Manufacturing sector.
FMCG Sector
https://www.ibef.org/
3. 1595
3600
0 1000 2000 3000 4000
2016
2020
Total Consumption expenditure (US$
billion)
CAGR Linear (CAGR)
49
104
0 20 40 60 80 100 120
2016
2020F
FMCG market in India (US$ billion)
CAGR Linear (CAGR)
29
100
0 20 40 60 80 100 120
2016
2020F
Rural FMCG market in India (US$
billion)
CAGR Linear (CAGR)
FMCG Sector
https://www.ibef.org/
4. Agriculture
17%
Industry
29%
Service
54%
Sector contribution to India's GDP
Agriculture Industry Service
FY2000
• Indian FMCG Industry US$ 9 billion
• Market size of chocolates <US$ 100 million
• Market size of personal care <US$ 3 billion
FY2017
• Indian FMCG Industry US$ 49 billion
• Market size of chocolates US$ 1,766.6 million
• Market size of personal care US$ 12.58 billion
33.3 35.7 38.6 43.1 49 57.4
0
20
40
60
80
2012 2013 2014 2015 2016 2017F
Trends in FMCG revenues over the
years (US$ billion)
Revenues
The FMCG sector in India created revenues
of US$ 49 billion in 2016.
By 2020, the revenues of the sector are
estimated to US$ 104 billion
In 2016, revenues for FMCG sector elevated
to US$ 49 billion.
In the long run, with the system becoming
more obvious & easily compliable,
demonetization is expected to value
organized players in the FMCG industry.
FMCG Sector
https://www.ibef.org/
5. PORTER’S FIVE Analyses of FMCG Industry
Bargaining power of
suppliers:
MODERATE
Barriers to Entry:
MODERATE
Intensity of Rivalry:
HIGH
Bargaining power of
Consumers:
LOW
Threat of
Substitute:
HIGH
•Large number of substitute inputs
•Low cost of switching suppliers
•Input have little impact on costs
•Diverse distribution channel
Bargaining Power
of Suppliers
• Government limits competitors
• Low storage cost
• Large industry size
• Relatively few competitors
• Exit barriers are low
Intensity of
Rivalry
•Limited number of substitute
•Substantial product differentiationThreat of
Substitutes
•Strong distribution network required
•Geographic factors limit competition
•Strong brand name is important
•High Capital requirements
Barriers to Entry
6. Parle Agro Pvt. Ltd.
NAME OF THE COMPANY PARLE AGRO
TYPE Private Limited
INDUSTRY FMCG, Food & Beverage
FOUNDED 1984
FOUNDER Chauhan Family
HEADQUARTERS Vile Parle(East), Mumbai, India
AREA SERVED India
KEY PEOPLE Prakash Chauhan (Chairman & MD)
Schuana Chauhan (CEO)
Alisha Chauhan (Director)
Nadia Chauhan (Director)
PRODUCTS Frooti
Appy
LMN
Hippo
Bailley
NUMBER OF EMPLOYEES 1000
OUTLETS 8,00,000
CHANNEL PARTNERS 4,000
MANUFACTURING FACILITIES 76
REVENUE US$431 Million.
SUBSIDIARIES Packaged Drinking Water
Food Retail
PET Performs.
WEBSITE http://www.parleagro.com/about.html
Prakash Chauhan
(Chairman &
MD)
Schuana
Chauhan
(CEO)
Alisha
Chauhan
(Director)
Nadia
Chauhan
(Director)
7. SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITY
THREATS
Parle Agro Pvt. Ltd.
Strengths Weaknesses
Tough brand
Differentiated product range.
Broad distribution network.
Sturdy supply chain.
Durable existence in rural
markets.
Catering to mass.
Improved understanding of
consumer psyche
Dependency on retailers &
grocery.
Stores for presenting diversified
Parle.
Products on shelf, induce
impetuous buy.
Dependence on Parle G.
Opportunities Threats
Expected annual growth of 20%
Low per capita consumption.
Changing consumer preference.
Swelling demand for sugar free.
Diet biscuits.
Increase in the cost of raw
materials
Competition from other brands.
Growing distribution cost.
Admittance of various new
entrant, ITC etc.
10. Marketing
1.Available in different sizes.
2.Attractive packaging wrap around the product.
3.Competative price points for various sizes.
4.Good distribution and availability at retail store.
5.Strong brand backing of parent brand.
1.Less product differentiation with competitor product.
2.Dependence on retails and stores.
3.Low motivations to distributors.
1.To improve sales through combo offers with other products.
2.Enhance brand image repositioning through increased marketing communication.
3.Demand for health for health drink.
4.High potential for growth.
1.Customer retention in the face of increased competition.
2.New entry of any fruit drink.
3.Increase in distribution cost.
SWOT Analysis
S
W
O
T
11. MarketingProduct
Product by Parle Agro,
Introduced in India in
2005.
It consists of carbonated
apple juice and is used as
the basis of cocktails.
It is also manufactured
and marketed in
Bangladesh by Global
Beverage Co. Ltd. Under
license from Parle
Agro. Price
Being only carbonated
apple juice it is priced
attractively in Indian
market.
Being the only
carbonated apple drink
available its priced little
higher then other soft
drinks.
For 250ml, 300ml, 500ml
and 1000ml it is priced at
Rs15, Rs20, Rs28, and
Rs52. In Indian market.
Promotion
It adopts various advertising
and promotional strategies to
create an increase demand in
market by associating with
life style and behavior and
mainly targeting value based
advertising.
Priyanka Chopra is currently
celebrity endorser of appy
fizz, which appeals to more
youth generation.
Their slogans “A cool drink to
hang out with” attract youth
and party goers.
Place
Appy Fizz has a strong
international presence and is
available in several countries
like Ireland, Japan,
Tanzania,UAE, Unite Kingdom,
Canada and the United States
& etc.
Appy believes in upgrading its
distribution system at every
possible opportunity to reach
a potential customer.
Its distribution channel
includes more than 1500
wholesalers and distributors
to reach an estimated ten
lakh retail outlet.
12. SEGMENTATION
• IDENTIFYING
DIFFERENT
GROUPS OF
CUSTOMERS
TARGETING
• SELECTING WHICH
SEGMENT(S) TO
SERVE
POSITIONING
• IMPLEMENTING
CHOSEN IMAGE
AND APPEAL TO
CHOSEN SEGMENT
• PRODUCT – PRICE-
PROMOTION -
DISTRIBUTION
SEGMENTATION TARGETING POSITIONING(STP)
STP
Income greater than 10,000
For masses.
Very cheap price and healthy drink
and non-carbonated drink
Due to cheap price customers buy
frequently
Target Market: Recreational, Kids,
Lifestyle, Sports, Fitness, Health
Primary market: Kids, Teens, Youth,
Working People, Women.
Secondary market: Travel Industry,
Recreations Centers Cool, Trendy & Youthful.
Legendary & Iconic
Introduced tetra packs, PET bottles
Tag Line: “A cool drink to hang out
with”
FIZZ campaign.
Ads for showcasing how consumer
connect with FIZZ
13. INTRODUCTION
MATURITY
NO DECLINE
GROWTH
Product life cycle (PLC)
• Appy launched in 2005
• Still hold the dominant position.
• First caught the fancy of Indian
consumer with its Tetra pack and
some smart campaign.
• Positioned as a Kids drink.
• Healthy drink as compared to
carbonated drink
INTRODUTION
• Positioned as a apple drink i.e. A
Cool Drink to Hang Out With for
over 12 yrs.
• Introduced a series of new variants
and packaging.
GROWTH
• In late 00’s it achieved its
maturity stage, it was facing
stagnation in sales.
• appy variant came with slim
paper can aimed at the college
youth.
MATURITY
• Appy even hasn’t attained its
decline stage, it is now
confronting stagnation with a
market share of 60%-75%.
• Appy is now repositioning itself
once more.
DECLINE
14. BUSINESS FINANCE
GROSS PROFIT & NET PROFIT
2016 (in Cr) 2015 (in Cr) 2014 (in Cr)
Net Sales 1363.9 1251.8 972.9
Direct Cost 839.3 784.2 669.4
Gross Profit 524.6 467.6 303.5
GP Margin 38% 37% 31%
2016 (in Cr) 2015 (in Cr)
Net Sales 1363.9 1251.8
Profits After Tax 108.0 107.2
Net Profit Margin 79% 85%
0
200
400
600
800
1000
1200
1400
1600
Net Sales Direct Cost Gross Profit
2016 2015 2014
0
200
400
600
800
1000
1200
1400
1600
Net Sales Profits After Tax
2016 (in Cr)
2015 (in Cr)
http://www.aceanalyser.com/log
in.aspx?MenuTab=C&msg=URLR
efuser&ResHeight=738&Res=136
6
15. DIRECT AND INDIRECT COSTS OF THE COMPANY
BUSINESS FINANCE
Direct Cost 2016 (in Cr) 2015 (in Cr)
Raw Material Consumed 629.1 605.8
Power & Fuel Cost 51.6 54.9
Employee Cost 140.7 120.9
Increase/Decrease in stock 17.9 2.6
Percentage Change 7% 17%
605.8
54.9
120.9
2.6
482.8
54
118.7
13.9
0
100
200
300
400
500
600
700
Raw Material Consumed Power & Fuel Cost Employee Cost Increase/Decrease in stock
Indirect Cost 2016 (in Cr) 2015 (in Cr)
Other Manufacturing
Expense
62.4 53.1
General & Administration
Expense
39.8 30.6
Selling & Distribution
Expenses
182 156
Miscellaneous Expenses 25 20.3
Percentage change 18.9% 2.8%
0 20 40 60 80 100 120 140 160 180 200
Other Manufacturing Expense
General & Administration Expense
Selling & Distribution Expenses
Miscellaneous Expenses
http://www.aceanalyser.com/login.aspx?MenuTab=C&msg=UR
16. BUSINESS FINANCE
DEBT/EQUITY RATIO
2016 (in Cr)
Total Debts 26.6
Equity 510
Debt/Equity ratio 0.052
Debt equity ratio usually calculated to find out the nature of management of the organization, if Debt equity
ratio is more than 0.5, then management is aggressive in nature, and vice versa.
http://www.aceanalyser.com/login.aspx?MenuTab=C&msg=UR
LRefuser&ResHeight=738&Res=1366
17. HUMAN RESOURCE MANAGEMENT
ORGANIZATIONAL STRUCTURE
Prakash Chauhan
Chairman & M.D
Schuana Chauhan
Director
Alisha Chauhan
Director
Nadia Chauhan
Director
Marketing
Director
Finance
Director
Operation
Director HRM Director
Marketing
Manager
Sales
Team
Accounts
Assistants
Finance
Supervisor
Production
Team
Member
Production
Team Leaders
Accounts
Assistants
Personal
Manager
18. HUMAN RESOURCE MANAGEMENT
RECRUIMENT SOURCE OF THE COMPANY
The eligible and suitable candidates required for a particular job are available through various sources. These
sources can be divided into two categories,
as shown in Figure-
SOURCES OF MANAGERIAL
RECRUITMENT
PROMOTION
INTERNAL
ADVERTISEMENT
TRANSFER
FORMER
EMPLOYEES
RETIREMENTS
PRESS
ADVERTISEMENT
COMPETITORS
E- RECRUITMENT
WALK -IN
INTERVIEW
EMPLOYMENT
EXCHANGE
PLACEMENT
AGENCIES
CAMPUS
INTERVIEW
19. Selection process & Training Methods
SELECTION
PROCESS
SCREENING OF THE
APLLICATION
TELEPHONIC
INTERVIEW
TEST
INTERVIEW
FINAL
SELECTION
JOINING
FORMALITIES
HUMAN RESOURCE MANAGEMENT
SELECTION PROCESS TRAINING METHODS
ON- THE-JOB TRAINING
• Training is provided in the practical condition according
to the job.
OFF-THE-JOB TRAINING
• Vestibule Training Method
• Role Playing Method
• Movies/videos/computer-based training
• Discussion
20. HUMAN RESOURCE MANAGEMENT
EMPLOYEE BENEFIT PROVIDED
PENSION PLAN
RETIRE PLAN
PERFORMANCE
BONUS
EQUITY
VACATION &
PAID TIME OFF
SICK LEAVE
DIVERSITY
PROGRAMME
JOB TRAINING
LIFE INSURANCE.
DENTAL
INSURANCE.
DISABILITY
INSURANCE.
VISION INSURANCE.
HEALTH-CARE &
INSURANCE.
EMPLOYEE
DISCOUNT.
EMPLOYEE CAR.
FREE LUNCH.
GYM MEMBERSHIP.
EMPLOYEE
ASSISTANT
PROGRAMME.
WORK FROM
HOME.
CHILD CARE.
FLEXIBLE HOUR.
UNPAID EXTENDED
LEAVE.
INSURANCE &
HEALTH
PERKS & BENEFIT FAMILY &
PARENTING
FINANCIAL &
RETIREMENT
VACATION &
TIME OFF
PROFESSIONAL
SUPPORT
https://www.ibef.org/industry/fmcg.aspx
21. HUMAN RESOURCE MANAGEMENT
CAREER PLANNING & ORGANISATIONAL CULTURE•SALES & MARKETING
•ACCOUNTS & FINANCE
•PROGRAMMING & DESIGN
•PRODUCTION
•MAINTENANCE
•PURCHASEMANAGEMENTCAREER
•MATERIAL
MANAGEMENT
•CORPORATE PLANNING
PLANNING
•HUMAN RESOURCE
•ADMINISTRATION
•QUALITY DEVELOPMENT
Co-Workers are very Cooperative.
Work Culture is good and supportive.
Management is Good.
Challenging Work.
Easy accessible location and good working time.
Peers are very helpful.
Competitive working environment.
Profiles are very good.
Employees are happy to accept any challenge.
Professional Growth, Proper Work oriented,
Motivational, Innovative.