History of Marketing
It is hard for many to believe, but when compared to economics, production and operations,
accounting and other business areas, marketing is a relatively young discipline having emerged
in the early 1900s. Prior to this time most issues that are now commonly associated with
marketing were either assumed to fall within basic concepts of economics (e.g., price setting was
viewed as a simple supply/demand issue), advertising (well developed by 1900), or in most
cases, simply not yet explored (e.g., customer purchase behavior, importance of distribution
partners).
Led by marketing scholars from several major universities, the development of marketing was in
large part motivated by the need to dissect in greater detail relationships and behaviors that
existed between sellers and buyers. In particular, the study of marketing led sellers to recognize
that adopting certain strategies and tactics could significantly benefit the seller/buyer
relationship. In the old days of marketing (before the 1950s) this often meant identifying
strategies and tactics for simply selling more products and services with little regard for what
customers really wanted. Often this meant companies embraced a “sell-as-much-as-we-can”
philosophy with little concern for building relationships for the long term.
But starting in the 1950s, companies began to see that old ways of selling were wearing thin with
customers. As competition grew stiffer across most industries, organizations looked to the buyer
side of the transaction for ways to improve. What they found was an emerging philosophy
suggesting that the key factor in successful marketing is understanding the needs of customers.
This now famous Marketing Concept suggests marketing decisions should flow from FIRST
knowing the customer and what they want. Only then should an organization initiate the process
of developing and marketing products and services.
The marketing concept continues to be at the root of most marketing efforts, though the concept
does have its own problems (e.g., doesn’t help much with marketing new technologies) a
discussion of which is beyond the scope of this tutorial. But overall, marketers have learned they
can no longer limit their marketing effort to just getting customers to purchase more. They must
have an in-depth understanding of who their customers are and what they want.
F&B Specials
The branded fruit juice market in India is estimated to be worth Rs 500 crore organised fruit
beverage market (nectars, drinks and juices combined) and the segment is growing at about 30
per cent per annum. Big players like Dabur, Pepsi, Godrej and Parle Agro are already in the
market and in view of the swift growth in the market, newcomers like Surya Foods and Agro,
Mother Dairy, Ladakh Foods, Pioma Industries have come into the market with new products in
the recent years.
Amit Burman, Chief Executive Officer, Dabur Foods, told Food & Beverage News in an
interview that the market share of Dabur's Real Fruit juice is now 60 per cent. No doubt Dabur's
Real Fruit juice is the market leader followed by Pepsi's Tropicana. The two major fruit juice
makers in India, Tropicana and Dabur are going all out to tease Indian taste buds with ethnic
flavours. However, Godrej's Jumpin is slowly achieving its space in the fruit juice market.
Godrej Industries Foods Division has introduced fruit juices under the Xs brand, which earlier
only consisted of nectars. Parle Agro's Frooti and N-Joi too are doing well in the market. Delhi
NCR-based Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the
juices segment. Mother Dairy has recently launched the Safal brand of juices. Safal is currently
available in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods, makers
of the Leh Berry seabuckthorn berry drink, has now launched an apple-peach combination juice
and a mixed fruit variant. Ahmedabad-based Pioma Industries, makers of the Rasna brand of soft
drink concentrates, test marketed a diluted mango juice in Andhra Pradesh recently. There are
now racks filled with fruit juices, nectars and drinks.
Dabur Foods introduced for the first time in the Indian market Cranberry juice - Real Cranberry
Nectar. An innovative product from Dabur Foods' portfolio, Real Cranberry Nectar is exotic fruit
juice nectar, available in 1-litre packs. According to sources, Real Cranberry offers the exotic
flavour and nutritive value of cranberries, rich in vitamins, minerals and antioxidants, which
make it a healthy beverage. Dabur Foods' flagship brand, Real offers the largest range of fruit
juices, which are an assortment of traditional Indian and international flavours - orange, mango,
tomato, pineapple, mixed fruit, grape, guava, litchi and cranberry. Real Fruit Juice is a packaged,
100 per cent preservative-free fruit juice brand offering consumers the great taste and wholesome
nutrition of freshly squeezed juice in a hygienic and attractive pack. Dabur Foods is the only
juice company in India and among the top 5 companies in the world to use the latest spin cap
tetra pack, cold fill technology and spill-proof double seal cap for packaging. Real Fruit Juice is
India's first and only packaged Fruit Juice brand to get SGS (Societe Generale de Surveillance)
certifications for high safety standards used in packaging that conform to the stringent HACCP
and GMP standards. The brand has also won the award for 'Highest sales growth achieved by a
brand' in the non-dairy category. Dabur Foods also launched preservative-free fruit juice a sub-
brand Real Junior in 2004, targeted at kids below six years - creating an age-specific market
segmentation. This is claimed to be a first of its kind segmentation in the Indian fruit juice
market in keeping with Dabur's marketing strategy of segmenting the market with customised
fruit juices. Real Junior has two flavours - mango and apple, enriched with calcium, in 125 ml
packs for children below six years. The vibrant packs with animated fruit characters are intended
to appeal to children by highlighting the taste and nutrition of Real Junior. Dabur Foods has a
portfolio of nine variants under the Real brand, which offers the largest range of fruit juices - an
assortment of traditional Indian and international flavours - orange, mango, tomato, pineapple,
mixed fruit, grape, guava, litchi and cranberry. To expand the choice-set of juices for consumers,
Dabur Foods has constantly been introducing innovative variants like Real Activ Orange Carrot -
India's first fruit-vegetable juice. The company has also launched multiple-size options to kids
like Real Fruit Juice School packs that suit varied consumption needs and occasions. Dabur
Foods had launched "India's first" packaged, fruit-plus-vegetable juice, Real Activ Orange
Carrot, a blend of juicy oranges and sweet carrots. A nutritious powerhouse to boost the health.
This powerful combo brings together the taste and nutrition of orange, with the beta-carotene
rich carrot juice that is recognised by health experts as the 'wonder juice'. Packed with high
amount of antioxidants Vitamins A, C and E, Real Activ Orange Carrot juice provides instant
rejuvenation to body and also strengthens the immunity levels. Real Activ Orange Carrot juice is
a delicious and convenient way to include more vitamins and minerals in your diet. Carrot juice,
also known as the 'miracle juice,' is beneficial for eyes, skin and the digestive system. Orange
juice provides energy, relieves nausea and also helps in improving resistance of the body. Real
Activ is targeted at health conscious young executives for whom fitness is a way of life and is
available in orange and apple flavours.
Pepsi's Tropicana
Tropicana has launched a sub-brand Tropicana Tropics and is introducing new flavours mango
nectar, guava pulp and litchi juice under this brand. It may be recalled that Pepsi had launched
mango and litchi flavours earlier under its fruit drink brand 'Slice' in returnable glass bottles.
Tropicana juices have 80 per cent fruit pulp content. At present Tropicana has about seven
flavours in the market - apple, pineapple, orange, apple orange, grape and mixed fruit. The
company is now working on building the same capacities for other fruits like guava, pineapple,
papaya pulp, grapes and pomegranate. PepsiCo teamed up with Punjab Agri Export Corporation
for a joint citrus cultivation project in 2003 in Punjab. The company was looking for a similar
deal with pineapple farmers in Kerala. Dabur Foods is going local with a vengeance with its fruit
juices. It is also aiming to expand its market by introducing juices with a lower price tag. The
company has launched a new brand 'Coolers' in four variants - green mango, pomegranate,
jamun, and water melon with one litre of Cooler priced at Rs 50. Coolers like Tropicana Tropics
also contains only 20 per cent of fruit pulp against over 80 per cent in Real variants.
According to sources, Tropicana Pure Premium orange juice is made from one thing - Orange.
Original with no pulp, Homestyle with some pulp, and Grove stand with lots of pulp. Also look
for the Calcium fortified products: Calcium plus Vitamin D with no pulp, and Grove stand (Lots
of Pulp) with Calcium. Tropicana Pure Premium is the orange juice brand.
The foods division of Godrej Industries has been one of the pioneers in the fruit drinks and fruit
nectar categories in India. It offers two well-known brands - Jumpin and Xs. Jumpin - this range
of fruit drinks is available in four flavours: mango, pineapple, apple and orange. It comes in an
innovative baseline pack design that is trendy and easy to hold. Flavour retention is high and
freshness of taste is never lost. Jumpin can be enjoyed straight or in a punch or cocktail. It is
available in slim packs of 200 ml in trays of 27 (straws provided). Also available in 1000 ml
packs. Xs - this brand comes in three flavours: mango, litchi and orange. Xs contains high-
quality fruit pulp, which makes it tastier and more filling than ordinary fruit drinks.
It can be served straight and also makes a great cocktail mix. Available in packs of 200 ml in
trays of 27 (with straws). Also available in 1000 ml packs. The foods division of Godrej
Industries has made a mark in the exports market. Jumpin and Xs beverages, manufactured at
India's largest singly located plant, a state-of-the-art facility that has ISO 9002 and HACCP
certification. This plant uses the latest machinery; it has a rigorous testing procedure, and is
manned by a qualified and experienced team of microbiologists and food technologists. The
world-class Mandideep plant, near Bhopal in the northern Indian state of Madhya Pradesh, was
ISO-9002 certified in May 1995 and is the first facility in its category to get the 'quality
management system certification'.
Parle Agro Ltd is betting on 'N-Joi' - positioned as 'real fruit, real milk' - to further slice open the
virgin fruit-milk beverage market. The Mumbai-based company launched N-Joi - initially an
Alphonso mango with fresh dairy milk variant. The company has 11 Tetra Pak facilities in the
country. Initially, the western and southern markets will meet supplies from the Mumbai plant.
Parle Agro's Frooti is reported to be over Rs 250-crore turnover. Frooti's marketshare is claimed
to be 85 per cent in the tetrapak segment and 29 per cent in the mango beverage category
(including bottles and tetrapak). Mango fruit beverage is estimated to account for 91 per cent of
the sales of all fruit juice variants while orange juice accounts for only 3.1 per cent. Further,
under the N-joi brand umbrella, the company launched half-a-dozen milky-fruity variants,
including peach-milk, strawberry-milk, pineapple-milk, banana-milk, and cheekoo-milk. Frooti
remains a dominant mango fruit beverage brand.
Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the juices
segment. It has set up a state-of-the-art manufacturing facility in Noida, Uttar Pradesh, with an
investment of Rs 25 crore. The plant has a capacity of producing 1.5 lakh litres of juice per day.
Branded `Freshgold', the one-litre juice in cartons is available in supermarkets and malls in and
around Delhi for Rs 60. B P Agarwal, Chairman, Surya Foods and Agro Ltd, said that though the
juices are currently available only in the northern markets, the company has a plan to launch it in
the south in near future.
Ladakh Foods is building a portfolio of products from fruit juices to jams and sauces, based on
the little-known seabuckthorn berry, which grows in the Ladakh region. That may seem like a
risky gamble. But Ladakh Foods doesn't think so. It launched Leh Berry a couple of months ago.
Its first fruit juice in Delhi and it's selling it in the more affluent parts of town. Since January the
drink has also been on shopshelves in cities like Hyderabad, Nagpur and Pune. According to
company sources, the juice will be competing with established players as Tropicana and Real.
Leh Berry believes it has the advantage of a fresh taste. But its competitive edge may well lie in
its positioning. Ladakh Foods is marketing Leh Berry as a nutrition drink (it prefers not to use
the word health, with its bitter, medicinal associations), based on the chronicled nutritional
properties of the seabuckthorn fruit. Ladakh Foods' target of capturing at least 7 per cent of the
market share within a year and 20 per cent by 2006-end is ambitious, company sources added.
Mother Dairy has launched packaged fruit juices under the Safal brand. This is nearly 20 years
after it launched its 'Safal' brand of processed Encouraging small and medium scale units in
export promotion efforts. Enlisting the involvement and support of the State Governments in
India for promotion of India's foreign trade. Providing trade information services through
electronic accessibility at Business Information Centre, the ITPO sources added.
He also said that a comprehensive range of services is provided to the overseas buyers. "We
inform and advise them of product availability, price structure, reliable structure, delivery
schedules, quality control status and special information that an overseas buyer may need," he
said.
A catalyst with a selective integrated approach to exports, Aahar concentrates on specific buyers
in overseas markets, specific exports and specific products. It is this micro or pinpointed
approach to export promotion which marks it out from other export promotion exhibition in the
country. For foreign visitors and exhibitors the ITPO sources said, "Arrive in India and leave the
rest to us to fix appointments with Indian exporters, organise visits to manufacturing units,
arrange display of products for foreign companies, locate suitable manufacturers to carry out
modification and product adaptation, identify manufacturing units for export-oriented joint
ventures; and supply data on capacity, equipment, quality control, etc.".
ITPO sources informed that 90 per cent of Aahar 2005 participants have expressed their
willingness for repeat participation in Aahar '06 and also achieved their target.
The venue of Aahar 2006 is Pragati Maidan, New Delhi, Halls 8, 9, 10, 11, 12 & 12A. The
timings of the business visitors 10.00 am to 7.00 pm and for the general visitors 10.00 am to 7.00
pm.