Daily Juice: A Detailed Marketing Plan for Entering the Indian Market

This report outlines a comprehensive marketing plan for Daily Juice, an Australian juice brand, to enter the Indian market. It begins with a country profile of India, highlighting its economic growth, population size, and favorable initiatives like 'Make in India'. The report analyzes the competitive landscape, identifying key players like Real and Tropicana, and assesses the market scenario, noting the growing demand for fruit juices in India. Cultural aspects are also examined using Hofstede's dimensions, emphasizing the importance of collectivism and religious influences. The report then discusses consumer attitudes, including ethnocentrism and affinity, and proposes segmentation and targeting strategies. It concludes with recommendations for market entry and expansion, aiming to help Daily Juice establish a successful presence in the Indian market.

Running head: INTERNATIONAL MARKETING
International marketing
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the foreign market entry strategy of Daily Juice. India is
being selected as the host country for Daily Juice. This report determines the market potentiality
of India from different aspects. In addition, some of the challenges as well as a few opportunities
to be gained by Daily Juice are also being discussed in this report. Effective targeting and
segmentation strategies are also being discussed in this report along with analyzing the ideal
entry mode choice for them. This report concludes with a number of strategic recommendations
that will help Daily Juice to have effective market operation in India.

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Table of Contents
Introduction......................................................................................................................................3
Country profile.................................................................................................................................3
Competitive analysis........................................................................................................................4
Market scenario...........................................................................................................................5
Competing brands in the market..................................................................................................6
Cultural aspects in Indian market....................................................................................................7
Consumer’s attitudes.......................................................................................................................9
Segmentation strategy....................................................................................................................10
Targeting strategies........................................................................................................................10
Market entry strategy.....................................................................................................................11
Market expansion strategy.........................................................................................................11
Conclusion.....................................................................................................................................12
Recommendations..........................................................................................................................13
Reference.......................................................................................................................................15

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Introduction
Entering in the foreign market is one of the major considerations for the contemporary
business organizations due to the reason that competition in the existing domestic market is
rapidly increasing along with the reduction in the profitability of the companies (Gnizy, Baker
and Grinstein 2014). Thus, it is becoming more important for the business organizations to
consider the foreign markets in order to lower the dependency on the domestic market and
enhance the global market share and revenue. However, entering in the foreign market is having
different advantages and disadvantages for the organizations and these factors should be
effectively determined prior to the entry in the new host country.
This report will discuss about the potentiality of Daily Juice of Australia in entering in
the foreign market. Daily Juice is one of the leading local juice brands in the Australian market
and is 100 percent Australian grown brand. They were founded in 1989 and are a well known
brand in the Australian juice market. Currently they are having number of products in the juice
category ranging from orange juice to apple and mixed fruit. They are also offering vegetable
juices as well. Thus, with the growth in demand for the authentic juices over the carbonated
drinks in the recent time, it will be a huge potentiality for Daily Juice to enter in the foreign
market.
Country profile
India is selected as the chosen country for Daily Juice to enter and start their foreign
business. India is chosen due to the reason that it is the country with having highest rate of
economic growth in the world. According to the report, the current growth rate of India is
standing at 7.1 percent, which is the highest in the world. This is denoting that market growth

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and market opportunity in the Indian market will be more for Daily Juice. In addition, it is also to
be noted that India is having the second largest population in the world and thus the potential
market size for Daily Juice will also be more for Daily Juice (Boutabba 2014). This is another
reason behind selecting India as the host country. Another major favorable reason behind
selecting India is the Make in India initiative by the government of India. Under this initiative,
foreign investors are given tax and other benefits for manufacturing in the country (Sangwan
2015). Thus, Daily Juice can also avail this facility and can have favorable business process in
the host country. It is also being reported that free trade agreement between Australia and India
is proposed and having this will help Daily Juice to have favorable international business process
between their home and host country. In terms of the political environment also, India will be the
most effective and favorable country for Daily Juice due to the reason that India is the largest
democracy in the world and having stable government structure (Malhotra 2014). Thus, the
political risk will also be low for Daily Juice in operating in India.
Competitive analysis
India with having huge population and market opportunity is also having high intensity of
competition in the market. There are number of competitors present in the Indian and offering
wide variety of products in the market. The major competitors for Daily Juice in the Indian
market are Real, Tropicana, Minute maid, Saint and Tang. Majority of these brands are backed
by the multinational organizations and having favorable market penetration in the Indian market
(Han, Dong and Dresner 2013). However, in the Indian market, the intensity of the competition
is not balanced and it is mainly segregated in the urban areas. According to the report of world
economic forum, India is having the ranking of 98 in terms of the intensity of the local
competition (www3.weforum.org 2018). Thus, it can be concluded that though Daily Juice will

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face a number of competitors in the Indian market but they will also have the advantage of lower
intensity of competition.
Market scenario
In the recent time, market for fruit juices is rapidly growing in the Indian market. This is
mainly due to the reason that customers are increasingly changing their preferences from
carbonated soft drinks to healthier options such as fruit drinks. It is reported that currently, the
fruit juice market in Indian is standing at US$ 200 million that is huge compared to some other
major economies (Grandviewresearch.com 2018). It is also being reported that the market will
grow at a rate of 15 percent in the next three years. Thus, it can be concluded that Daily Juice
will be able to have a huge market opportunity by entering in the Indian market.
Figure: 1
Growth rate of the fruit juice industry in India

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Source: (Grandviewresearch.com 2018)
According to the above figure, it is see that the major competition of the fruit drinks will
be with the vegetable based drinks. In addition, it is also being stated that the proportion of the
fruit drink will increase compared to the vegetable drinks. Thus this is also denoting that the fruit
juice market of India is having huge market and business potential. Daily Juice will be able to tap
the market potentiality by entering in the Indian market. Moreover, it is also reported that the
average price level of the fruit juice market in India is relatively higher compared to the
carbonated drinks. Thus, it is important for Daily Juice to properly design their pricing strategy
in operating in the Indian market.
Competing brands in the market
Figure: 2
Top 5 brands in the Indian fruit juice market

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Source: (Bhushan 2018)
According to the above data, majority of the market share in the Indian fruit juice market
is being held by Real and Tropicana with having more than 80 percent of the market share. Thus,
for the new entrants in the market such as daily Juice, the major competition will be with these
two players in the market. In addition, it is also to be noted that there are other various small and
medium brands currently operating in the Indian market. However, the smaller brands are mainly
operating in the lower price level in the market while the bigger brand such as Real and
Tropicana are operating in the higher price level (Garg and DIRD 2015). It is being identified
that the existing competitors in the Indian market are offering global products such as orange and
mango juice along with offering some localized products concentrated to the Indian market.
Thus, it is important for Daily Juice to offer their existing products as well as offering new
products in accordance to the taste and preference patter of the Indian customers.
Cultural aspects in Indian market

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Figure: 3
Cultural differences between Australia and India
Source: (www.hofstede-insights.com 2018)
According to the Hofstede’s cultural dimensions, India is having more concentrated
towards the hierarchical structure along with having the major influence of the society on the
individualistic choice. In addition, it is also stated that India is less concentrated towards
innovation and thus Daily Juice should take the tried and tested way for operating in the Indian
market. One of the major features of the cultural dimensions of India is the social and collectivist
orientation. Thus Daily Juice should have products in the market that will be socially acceptable
over offering any radical products. In addition, due to the reason that India is having more
collectivist type of society, negative word of mouth will affect the business potentiality of Daily
Juice (www.hofstede-insights.com 2018). This is due to the reason that in Indian society,
generation of the negative word of mouth will hamper the business and will influence the
individual buying preferences. Another major cultural factor that should also be considered by
Daily Juice is influence of religions on the society. India is having higher influence of religion in
the society and thus any offerings contradicting with the traditions and religious pattern of the
society will not get succeed.
Another major challenge to be faced by Daily Juice is the cultural difference between
their home and host country. According to the Hofstede’s cultural dimensions, Australia and
India are having different cultural factors and it is important for Daily Juice to effectively
consider the differences. One of the major differences is the power distance. In Australia, the
positioning of the products is not much important and a single product can be marketed across a

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diverse customer segments. This is mainly due to the reason that power distance in Australia is
less. On the other hand, the power distance of India is more and thus, the positioning statement
of Daily Juice is important in the Indian market in order to have a certain level in the target
market.
Consumer’s attitudes
Consumer’s attitudes are one of the major factors in determining the sales potential of a
particular product in the host country. This is due to the reason that if the customers are having
the positive attitude towards the home country, then the probability of getting succeeded in the
host county will be more. One of the major elements in the consumer’s attitude is consumer
ethnocentrism (Lee and Yun 2015). This refers to the value given by the host country consumers
towards from the products from a particular home country. In the case of Daily Juice, they will
have positive consumer ethnocentrism towards the majority of the foreign countries including
Australia. In addition, it is also being perceived by majority of the Indian customers that foreign
brands hold more quality over the national brands.
The next element is the consumer animosity. This refers to the anger or negative attitude
of the host country population towards the home country of the organization. However, in the
case of Daily Juice, the relationship between India and Australia is favorable and the people of
India do not hold any negative attitude towards Australia (Fong, Lee and Du 2014). Thus, Daily
Juice will have favorable environment in this case. The next element is consumer affinity. This
refers to the concept of emotional attachments between the consumers and the organizations. In
the case of Indian fruit juice market, the major two brands already built favorable brand
attachments with the target customers. Thus, it will be difficult for new entrants such as Daily

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Juice to create that level of attachment with the customers. Thus, Daily Juice will have the
advantage of the favorable image of their home country Australia in the Indian market but they
have to enhance their brand value in order to create the brand attachments in the market.
Segmentation strategy
Segmentation strategy for Daily Juice in the Indian market should be wide and diverse
and based on different aspects. In terms of the geographical segmentation, target customer
segments can be divided on the basis of different regions in India. This is possible due to the
reason India is a vast country with having different regions with different geographical elements.
In terms of demographic segmentation, the target market can be segmented on the basis of
gender, age groups and occupation (Cross, Belich and Rudelius 2015). In terms of the
psychographic segmentation, customers can be segmented on the basis of personality and
lifestyle. The most potential target segment for Daily Juice will be the age group between 14 to
60. The target demographic segment is vast due to the reason that fruit juice can be offered to
both younger and older generation. Both the genders will be targeted. In terms of the geographic
segmentation, market can be segmented on the basis of potentiality in tier I,II or III cities.
Targeting strategies
Targeting strategies can be designed on the basis of local taste and preference of the
target customers. This is due to the reason that the targeting strategies followed in the Australian
market will not be applicable for the Indian market (Haenlein and Libai 2013). For instance,
media used in promotional activity in the Australian market will not be effective for the Indian
market. On the other hand, the positioning statement should also be designed based on the

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intensity of the competition in the market. This is due to the reason Daily Juice should position
their products in the market in such way that the intensity of the competition will be lower.
Market entry strategy
It is recommended that Daily Juice should initiate joint venture mode of entry in
operating in the Indian market. This is recommended due to the reason that initiation of the joint
venture will help Daily Juice to have their physical presence in the host country as well as having
less risk and responsibility in operating in the host market. The major advantages that will be
gained by Daily Juice from the initiation of the joint venture market entry strategy are presence
of less risk and responsibility (Laufs and Schwens 2014). This is due to the reason that in the
case of joint venture, Daily Juice will come in to partnership with a local Indian firm in doing
business. Thus, they will not to invest the entire capital in the host market. In addition, initiation
of the joint venture market entry mode will help Daily Juice to effectively determine the local
taste and preference. Daily Juice being an Australian born company will find it difficult to have
the idea about the local market trend, which can be effectively and properly done by the local
partner.
However, apart from the advantages to be gained from the initiation of the joint venture,
there are few disadvantages also to be faced by Daily Juice. One of the major disadvantages to be
faced is lack of control in the venture. This is due to the reason that in the joint venture, Daily
Juice will not have full control on the organization and it have to be shared with the local partner.
Market expansion strategy
It is recommended that that Daily Juice should initiate the market penetration strategy in
order to expand their current market. This will help them to penetrate in the host country market

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by offering more product assortment. Currently, fruit juice market in India is not heavily
penetrated due to having lower product assortment (Rousseau and Vranken 2013). In addition, it
should also be noted that India is having hue diversity in its population with having different
taste and preference pattern. Thus, initiation of the market penetration strategy will help Daily
Juice to offer more assortments of products in meeting the diverse customer requirements and it
will also help Daily Juice to expand their market vertically. It is also being recommended that
Daily Juice should initiate their market expansion strategy through phased manner (Sui and
Baum 2014). This is due to the reason that phased implementation process will help Daily Juice
to identify the shortcomings in the first phase and rectifying those accordingly. This will ensure
that the entire processes of expansion strategy will be more effective.
Conclusion
Therefore, from the given analysis it could be inferred that the host country of India
seems a considerably attractive market for the juice company, Daily Juice. India is considered to
be an emerging economy has been on a high growth rate in the recent years. Daily Juice can take
the advantage of this fact and invest their product base in India where there is an increasing
population of the young generation who are health conscious. He report outlined the various
strategies which need to be adopted by the brand in order to ensure that it is successful in India.
The only consideration which Daily Juice needs to take is that there is an environment of cut
throat competition in India and that there are several international brands competing for the top
position. For this purpose, the company needs to have a good strategy with respect to pricing and
positioning in order to ensure it is able to ace in the domain. The next section will be discussing
certain recommendations which need to be adopted by the company to ensure success.

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Recommendations
Given below are certain recommendations that Daily juice of Australia can follow to ensure
success in Australia:
1. Competitive Pricing Strategy
As stated previously, there are various juice brands present in the country and they have
established themselves as the leading competitors thereby undertaking a huge market
share. If the Daily Juice of Australia wants to be successful in its domain, it will be
required to ensure that it follows an appropriate pricing strategy, specifically the
competitive pricing strategy. The adoption of the competitive pricing strategy will help
the company in competing with the different juice brands (Foxall 2014).
2. Correct Positioning
India has a vast population of younger generation and a majority of these youngsters are
extremely health conscious (West, Ford and Ibrahim 2015). They want to keep up with
the western brands and engage in the consumption of the healthiest products. Hence, in
order to attain success, it is the duty of Daily Juice of Australia to position itself as a
100% natural juice brand. This perception in the minds of the different customers will go
a long way in helping the company to attain success in the long run.
3. Appropriate distribution Channel
Daily juice needs to select the correct distribution channel. It is recommended that at
present Daily Juice seeks to target the urban population and thus, for this it needs to form
an alliance with the distributors and maintain good relationships with them in order to
ensure that they are successful in reaching the target market (Chernev 2018).
4. Modification

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Lastly, Daily Juice needs to understand the social-cultural background of the Indian
market and modify its products accordingly. It needs to consider the fruits which are
preferably consumed by the target market and modify the juices in that perspectives.
Doing so would make it largely popular in the business domain (Proctor 2014). If the
company is unable to do so then it may not be successful and the Indian crowd would not
like to consume an alien taste. Hence, customization and modification according to the
host country`s taste is crucial for the successful expansion.

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