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Monday, July 12, 1999

Godrej Foods: Jumpin' out of the red? 

Namrata Singh  
Mumbai, July 11: Godrej Foods claims that its loss making tetrapak fruit drink `Jumpin' has turned around, partly due to initiatives to reduction wasteful expenditure. Jumpin has registered a five per cent growth in turnover, at the end of Summer '99. This has come about as a consequence of the contribution of Jumpin going up to Rs 12 per tray to turnover -- in contrast, Jumpin' had been bleeding at the rate of Rs 6 per tray last year.

Godrej Foods managing director Sudhir Awasthi attributes this to inefficient plant operations and a large number of unprofitable schemes which were launched to promote the brand. A tray contains 27 cartons of 200 ml Jumpins, each priced at Rs 8.

``Jumpin has now started contributing Rs 12 per tray and has registered a growth of five per cent. This is after we brought about operational efficiency at the plant level and the fact that we have become strict on schemes that are to be launched on the brand,'' said Awasthi.

Operational efficiency in food processing, as per therecommendations of management consulting firm Andersen Consulting, has resulted in savings of Rs 6 crore in 1998-99, claims the company.

Awasthi said that in the previous year a number of consumer schemes were launched on Jumpin which failed to elicit a favourable response and this led to losses. ``This year we have made it clear to brand managers that they will be responsible for any scheme which is launched on the brand as previously unnecessary schemes have had a negative impact,'' he said.

Volumes of Jumpin have risen to 12 lakh trays during the season, and the company is said to be on track with projections to touch 25 lakh trays this year. The company is targeting a five per cent growth in sales of Jumpin this year.

Godrej Foods had kicked off major marketing initiatives to revive Jumpin last year. To start with, the company repositioned Jumpin targeting kids and offered toon tatoos with the drink as an incentive which went well with the positioning of the drink.

The re-definition of Jumpin'sUSP to make it a drink for children, helped the company to revive the brand's fortunes, industry observers said.

Today, Godrej Foods clearly has three layers in tetrapak fruit drinks: Jumpin for kids at a mid-sized price point of Rs 7, the recently-launched Xs for adults which is a premium tetrapak drink priced at Rs 10-12, and Refresh priced at the economy level of Rs 5.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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