The Induction Process

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Table Of Contents


SUMMARY OF INDUCTION 1


SUMMARY OF THE INDUCTION PROGRAMME AT VIKING


ORIENTATION CHECKLIST


INDUCTION CHECKLIST (TRAINING) 4


VIKING'S CALL CENTRE INDUCTION AGENDA 5


INDUCTION EVALUATION 7


APPENDIX


Orientation Table of Contents


Welcome to Viking 10


Coles-Myer 11


An Australian Company 11


Our Values 1


Viking's Mission Statement 1


Why You Were Chosen As A Viking Employee! 14


Empowerment 15


You Are Viking! 16


Chronology of Key Events 17


Viking Australia History 18


Organisational Chart 0


Production Capabilities 1


Why has Viking become so Successful?


How can you contribute to Viking?


Our Business Priciples


First Aid Officers 5


Fire Wardens 6


Evacuation Procedure 7


The Local Area North Rocks 8


General Expectations 0


Catalogues 1


Viking's Range Of Catalogues


Catalogue Codes


Private Sale Catalogues 4


How Do We Compile A Mail Shot? 5


What Are Remails? 6


The Steps Involved to Process an Order 7


The Basic Phone Order Flow 8


Web-site Information


Glossary Of Terms 40


Summary Of Induction


Induction is the first step in building a two-way relationship between the organisation and the employee.


When employees first join the organisation it is an unique opportunity for the organisation to harness the moment and express how valuable this opportunity is for both parties as this is the time which to utilise all of the motivation, enthusiasm and ideas that starting a new role will bring.


As the pressure of workload increase this opportunity then diminishes. It is therefore important that each new employees member is supported and given every opportunity to be integrated into the business. A rigorous and well-planned Induction process is key in achieving this.


The transition to the new workplace is made easier and more effective for both the new employee and the employer if there is an effective induction process eg; following objectives covered.


· The organisation;


· The department;


· The organisational policies; and


· Their own key performance indicators.


· All aspects of the employment relationship;


· The organisational structure;


· All communication channels within the organisation;


· The geography of the workplace.


Benefits of Induction include


· Avoiding any doubt on the part of the new employee, especially in respect of levels of quality of performance required by the organisation;


· Giving the new employee a sense of certainty in not only their job but their total professional environment;


· Avoiding any possible personal grievance actions through the failure of the employer to adhere to Performance Management procedures.


Summary Of the Induction Programme At Viking


When looking at the Viking induction process it is extremely hard to fault, as this process is driven towards the well being of both parties the "organisation - employer" and the "employee". This process starts from


· The commencement "letter of offer" which is sent to the new employee with contains a starter pack explaining all the necessary details that they may require.


· The first day where it is all about the "meet and greet" process, which then blends into the orientation process.


· The Induction "training" process then really start's to focus on the individual departmental objective's, which in the call centre's case is approximately two weeks in length, however the whole process is looked at over a one Month period.


· One of the most important parts of the induction process is the time Viking takes as a whole to ensure that the feedback from the "evaluation process" is utilised for the benefit of the organisation and not pushed aside.


Attached and in order are the following checklists that display how the "Induction" process is delivered and also to what time frame it is delivered in


· Orientation Checklist


· New Hire Checklist


· Induction Training Checklist (first five days)


· Induction Evaluation Checklist


· Orientation Program "Booklet" (I have attached this as a whole due to the important directional focus of the organisation towards expectations of the employee towards the company's value's of Fanatical Customer Service "FCS".


As a whole Viking looks at empowering the employee through the Induction process by drilling down into segmentations of each process that is expected in their daily role through multiple method's such as, communication and training with peers and managers (employers) as well as the overall organisation goals and value's. If the employee does not understand what the role is, how it "FIT's" into the organisation, who is who or what are the actual expectations of the role then why have an Induction programme? Viking looks at the benefits, expectations, and overall structure of roles and the organisation so each employee understands exactly what is from them and what is expected from the employer. Viking looks at ensuring the best "FIT" from the employee's perspective and as well from the employer's perspective as with out this no matter how hard you try "square pegs do not "FIT" into round holes.


What are my thoughts on Vikings Induction Programme Simply if I need to look at an induction programme in the future I will be ensuring that I have a copy of this one tucked away for safe, keeping.


Orientation Checklist


DAY ONE


Time Agenda Activity


- .0 Welcome to Viking Introduce each other activity. Use snakes to pair people up and interview the following person. Ask Family, prior job, attraction to job, years of customer service experience, interests, favourite movie / TV show. Present. Add up years of C/S history.


.0 - 10.0 Welcome to Viking Overview Video, Orientation book, values, mission and philosophies


Morning Tea


11.00 - 1.00 Viking Introduction cont. Policies


Lunch


1.0 - 1.0 Tour of Warehouse and Corporate Take trainees around Viking


1.0 - .00 Introduction to Catalogues Given order entry book and catalogues. Given 15 mins to look through catalogues. Write down 5 observations. Discuss.


.00 - .45 Introduction to AS400 Discuss the importance and trainees sit at terminals and begin logging in.


Break


.45 - 4.0 Order entry Screens Order type, header screen, detail screen, Price orders


4.0 - 4.45 Debrief Trainees encouraged asking questions and debriefing day. Revise some of the key issues.


DAY TWO


Time Agenda Activity


.0 Welcome and Review Review what was discussed in day two. What were your impressions of the organisation?


.0 - 10.0 Welcome to Viking Overview Video, Orientation book, values, mission and philosophies


Morning Tea


11.00 - 1.00 Viking Introduction cont. Policies


Lunch


1.0 - 1.0 Tour of Warehouse and Corporate Take trainees around Viking


1.0 - .00 Introduction to Catalogues Given order entry book and catalogues. Given 15 mins to look through catalogues. Write down 5 observations. Discuss.


.00 - .45 Introduction to AS400 Discuss the importance and trainees sit at terminals and begin logging in.


Break


.45 - 4.0 Order entry Screens Order type, header screen, detail screen, Price orders


4.0 - 4.45 Debrief Trainees encouraged asking questions and debriefing day. Revise some of the key issues.


Induction Checklist (Training)


NEW HIRE TRAINING CHECKLIST


To Do Form required Contact Form Sent Action Complete


1 AS400 Access AS400 New User Request Form Lorraine /05/00 Yes


ID Tags Security Request Kelly Tritton /05/00 Yes


PC Access/Email Network & Email Access Form Carl Shen/Fraser /05/00 Yes


4 Training Manual Book Melissa Molloy /05/00 Yes


5 Name Plates Email Leeanne Williams /05/00 Yes


6 Coffee Mugs Email Laura /05/00 Yes


7 Extension List Email Flo /05/00 Yes


Viking's Call Centre Induction Agenda


Day 1


Time Topic Suggested Activity Reference


- 100am Greeting/Orientation Do interviews in pairs, general chat. Give details on amenities, kitchens etc. Overview of Viking - Values, missions and philosophies. Laura - orientation handbook


Break


1045 - 110 Orientation cont. Laura - orientation handbook


110 - 100 Order Entry Manual and G book Allow 15 min to look through the G book and hand out OE manual. Explain AS400 and were to find Viking Acct numbers and codes on a customers catalogue. G Book and OE manual


Lunch


10 - 145 Logging on Have trainees sit at terminals and begin to log on to the system. Password for PC (Au-Trainer/Sydney) Password for AS400 (orderent/orderent) Explain keys used to navigate the system emphasise the TAB key


145 - .00 First 4 screens in Order Entry 1. Order type and Account number - explain how orders are placed and how we access the account . The Header Screen - What info can be found and what needs to be completed to move on. .The Detail Screen - What info can be found and how to change lines enter products etc. 4. Total Screen - emphasise importance of totalling order and advising h/fee.


Break


.15-4.15 First 4 screens in Order Entry Discuss Handling fee what it is for and also discuss freight charges and when they are applied to a customers order. Line Comment Sheets


4.15-4.0 Debrief Discuss day briefly and let go early


Day


Time Topic Suggested Activity Reference


0 Revision Revise yesterday's screens. Questions and Answers


0 - 45 Call Flow Discuss Call Flow Manual p1


45 - 100 Practice Using all four screens using G book and entering lines/changing/sale pricing. Practise moving between screens and the functions that are used to do this.


Break


1045 - 1.00 Function Keys Begin with the function keys that are used when entering an order starting with the header screen. Give lots of examples of each and allow practice time before moving on Manual p14-4


Lunch


1.0-.0 Function Keys Continue with Function Keys Manual p14-4


.0-4.0 Buddying Buddying


Break


4.0-5.00 Review of Day Discuss afternoon on phones, questions etc.


Day


Time Topic Suggested Activity Reference


0 Revision Revise all of yesterdays content, through questions, a game, scenarios etc.


.0-10.0 Continue with Functions Continue with function keys Manual p14-4


Break


10.45-1 Continue with Functions Continue with function keys Manual p14-4


Lunch


1.0-.00 Keying Faxes Very simple faxes for processing. Either in pairs or individually


.00-4.0 Buddying Listening for correct order flow and how to access information for the customer


4.0-5.00 Review of Day Discuss calls any questions etc


Day 4


Time Topic Suggested Activity Reference


.0-10.0 Revision Revise all of yesterdays content, through questions, a game, scenarios etc. G book Race, mark out lines on floor and first person to end will win a prize by finding the correct page numbers for certain products


Break


10.45-1.00 Catalogues Give each trainee a copy of the current sale catalogues as well as G book. Discuss Sale pricing and what prices to quote customers. Do Catalogue Quiz back of manual. Copies of current catalogues


Lunch


1.0-1.0 Keying Fax's Practise Role play using Fax's Fax's


1.0-.0 Order Entry Main Screens Stress that these screens have been seen already, it is just a different way of accessing information. Give examples of each screen and have trainees practice with these screens Manual p6-6


Break


.45-4.0 Buddying Making notes of any questions or different approaches things liked/disliked


4.0-5 Review of Day Discussion of calls and experiences


Day 5


Time Topic Suggested Activity Reference


.00 - 0 Revision Revise all of yesterdays content, through questions, a game, scenarios etc.


.0 - 10.00 Compatibility Quiz Complete quiz, discuss answers Manual pg 75


10.00 - 10.0 New Account Set Ups Discuss Differences between prospects and established accounts


Break


10.45-11.00 New Account Set Ups Start with Flow Chart Manual pg 8


11.00-1.0 New Account Set Ups Step-by-Step fields required setting up new account. Read thru manual then do each field one by one on system Manual pg 41


Lunch


145 - 4.45 On the floor Reps back at their own stations.


4.45 - 5.00 Debrief Clarify issues / assess calls


Induction Evaluation


EVALUATION


COMPANY DATE


SESSION NAME TRAINER Melissa Molloy


PARTICIPANT NAME (optional)


Would you kindly rate this session overall


Excellent Very Good Good Fair Poor


Would you kindly evaluate the trainer


Excellent


Poor


Trainers presentation skills 5 4 1


Trainers subject knowledge 5 4 1


Trainers ability to interact with students 5 4 1


Please evaluate the session


Excellent


Poor


Course content and structure 5 4 1


Course materials and presentation 5 4 1


Course relevance to your work environment 5 4 1


Please explain your evaluation


What are the three most valuable things you have learned from the session?


1


What recommendations would you make to improve this session in terms of


(The trainer, videos, materials, content, comfort, group interaction, other?)


Please complete the following statements in whatever way is most


appropriate for you


The course made me feel


I liked


I didnt like


I wish we had time to


Id also like to say


Thank you so much for your participation. I hope you enjoyed the session


Appendix


Orientation Table of Contents


Welcome to Office Works & Viking!


Coles-Myer - An Australian Company


Our Values


Our Mission Statement


Why You Were Chosen As A Viking Employee!


Empowerment


You Are Viking!


Chronology of Key Events


Viking History


Organisational Chart


Production Capabilities


Why has Viking become so Successful?


How can you contribute to Viking?


Our Business Princ


First Aid Officers


Fire Wardens


Emergency Contingency & Evacuation Procedure


The Local Area North Rocks


General Expectations


Catalogues


Viking's Range Of Catalogues


Catalogue Codes


Private Sale Catalogues


How Do We Compile A Mail Shot?


Remails


The Day In The Life Of An Order


The Basic Phone Order Flow


Web-site Information


Glossary Of Terms


Welcome to Viking


On behalf of the management team and employees of Viking Office Products, we would like to formally welcome you. You are now officially part of the Viking family and we believe you will enjoy all your experiences here.


You are now a part of an organisation that has operated in Australia for years and in early 00 become a subsidiary company of Officeworks Superstores (Coles Myer). Officeworks' acquisition of Viking on rd January 00, has meant we are now a part of Australias largest retailer of office supplies. While both organisations share the same passion for customer service and the desire to be Australia's first choice in office supplies, they continue to operate as competitors in the market place.


To understand the overall organisation, Officeworks has more than 6 stores and is Australia's largest retailer of office supplies, catering specifically for the needs of small to medium size businesses, home offices and students alike. With more than 7,000 office products under the one roof, Officeworks Superstores offer customers the convenience of one-stop shopping for their office supplies, equipment and services. Officeworks employs ,800 people to cater specifically to the needs of their customers.


Viking in contrast operates call centres and distribution centres across three states (VIC, NSW & WA), focusing on 'direct marketing' as opposed to retail sales. There are 0 employees who work for 'Viking'. The combined strength and size of Officeworks and Viking, allow us to offer unique benefits to all our customers and employees, whilst always remembering that our single most important asset is our people.


Viking is now in a rapid growth phase, which means that you'll have an exciting opportunity to grow and develop if you are committed, flexible and dedicated to getting the job done. In response, Viking will be committed to providing you with support and technologies to make your job easier, which in turn raise our level of service. Ultimately though, your success lies with you and the enthusiasm you show today will suitably prepare you for a rewarding career at Viking.


Over the next few weeks you are to begin an exciting adventure. During your training you will discover whom Viking is, what were about and your role in Viking's future success. You can be assured that at Viking you are a valued member of the team and will be given the opportunity to grow personally and professionally.


Think of the following Orientation booklet as a prospectus and let it help confirm why you've made the right decision to come and work for Viking.


As it is impossible to cover everything here, if you have any questions, problems or are in doubt as to how policies affect you, please feel free to ask your Manager or Human Resources Manager. Either will do everything they can to make your time at Viking a happy and successful one.


Coles-Myer


An Australian Company


Officeworks is part of Coles-Myer. Therefore, as a Viking employee you have the opportunity to grow and develop within this large Australian owned organisation. So to give you an overview of where you fit it…here are some facts about Coles-Myer.


· Operates around 1800 stores in Australia and New Zealand


· Is listed on the stock exchanges of Australia, London, New York and New Zealand


· Is Australia's largest non-government employer with over 160,000 staff


· Operates the following retail brands Coles, Bi-Lo, Myer, Grace Bros, Megamart, Kmart, Target, Liquorland, Officeworks, Vintage Cellars, Harris Technology, Shop fast and Emerging Businesses.


· Company Chairman is Mr Richard Allert and Chief Executive Officer and Managing Director is Mr John Fletcher


· Spends around $1 billion a year buying merchandise and services from over 61,000 suppliers


· Has over 580,000 shareholders. The majority of Coles Myer's non-employee shareholders are "mums and dads", holding 5,000 or less shares.


· Is Australian-owned, with a head office located in Melbourne, Victoria


· Is more than 100 years old.


Coles Myer's Vision


Coles Myer Ltd. will create benefits for its stakeholders - its customers, staff, suppliers and shareholders - by being the best retailer in every market in which the company operates.


We will achieve this goal by


· Meeting customer needs through dynamic, innovative, retail businesses, which are leaders in value and service.


· Recruiting, training and promoting outstanding people who are selected and rewarded solely on merit.


· Building long term, mutually beneficial supplier relationships.


· Providing consistently superior returns to shareholders.


· Being a responsible and caring corporate citizen.


We will be known for honesty, leadership and open and responsive communication. We will set standards of best practice. We create and welcome change. We aim for simple and productive internal structures. We make optimum use of our retail and management knowledge, our technology and the talents of our people. Whatever we do, we do with integrity. Over time, we aim to be the best retailer in the world, not by our standards but by those of others.


Our Values


Our mission at Viking is simple - to impress each individual customer so much, that they WANT to buy from us again. We have an entrenched belief that our employees need to continually demonstrate FANATICAL customer service for us to achieve this. This means surprising our customers with personal and exceptional service and exceeding their expectations 100% of the time.


We appreciate our customers can buy their office supplies from a variety of retailers, so it is imperative that we build relationships and provide them with reasons to return. Even though our prices are competitive, it is our "fanatical" service that keeps our customers buying from Viking. Likewise, it is our services which include, free overnight or same-day delivery, no hassle returns, open account credit, one year unconditional guarantee and many more.


At Viking our values are entrenched within our culture and we have a firm believe that to be successful they must be lived and breathed.


Respect for the individual


¨ We value diversity across the Company


¨ We praise publicly and provide constructive feedback'


¨ We listen; we understand and we are responsive to each other


¨ We treat every employee, customer and supplier with honesty, dignity and respect.


¨ We provide a safe place to work for our employees and to shop for our employees and to shop for our customers.


Fanatical Customer Service


¨ We impress our customers (internal and external) so much that they want to buy from us again.


¨ We give higher priority to people than to tasks.


¨ We do it right the first time but "wow" our customers on recovery when we miss.


Excellence in Execution


¨ We are committed to grow shareholder value.


¨ We consistently involve employees at all levels toward the relentless improvement of our business.


¨ We hold ourselves and our teammates accountability for results.


¨ We strive for perfect execution every day.


¨ We reward innovation and intelligent risk taking.


¨ We celebrate the wins.


Viking's Mission Statement


Viking sells office products to small and medium size businesses nationwide through innovative, aggressive direct marketing catalogues and programs.


To be successful and grow our company, while each of us advance our careers and benefit our families, we are committed to the following


1. That every customer, large or small, receives our best honest and personal service.


. That each of our efforts result in so impressing our customers that they want to buy from us again.


. That we provide quality business products at significant savings while generating acceptable profits for our company.


4. That we strive to provide "Same Day or Next Day Delivery" to all our customers nationwide.


5. That Viking grow at a healthy rate, producing exceptional results through effective and aggressive marketing, intelligent cost control and involved, results-oriented management.


6. That each employee take responsibility for maintaining our business and for recognising needed changes to "fix" that which is not acceptable.


7. That Viking be recognised by its employees, customers and suppliers for EXCELLENCE, INTEGRITY AND MARKET LEADERSHIP.


Viking's Value Statment


8. Every employee, customer and supplier will be treated honourably and with mutual respect in all matters.


. Every employee will be compensated fairly and afforded career opportunities in accordance with his/her skills, personal effort and future potential.


Why You Were Chosen As A Viking Employee!


Viking believes that its employees' are its most valuable asset and to be successful you need the right people. Therefore we place a great emphasis on recruiting. We don't just focus on your technical skills, we look for personal attributes and qualities that our customers will respond too. In other words, you have been selected because of the person that you are, not just for the technical skills you have to fulfill the task.


Qualities that are important to Viking


· COMPASSION & CARING


· RESPONSIBILTY


· SENSE OF HUMOUR


· STRONG CUSTOMER SERVICE


· FLEXIBILITY


The above characteristics are essential when dealing with customers and fellow colleagues. We receive hundreds of letters each year from our customers complimenting our employees on their manner, general attitude and professionalism. We are renowned for our service and now in your new role you too can help to strengthen these relationships.


Empowerment


Dictionary Definition


To give (someone) the power or authority to do something


Viking Definition


To have the power or authority to always say YES


You Are Viking!


Even though we may sell the very best office equipment and provide an excellent delivery service, it is when our customers hear you on the telephone, that they form an opinion of us….thus….. YOU ARE VIKING!


You are the person who influences whether our customer's call back. The way you sound and what you say greatly impacts how the customer feels and consequently what they'll tell people about Viking. Therefore, it is essential to make our customers feel important and feel as though we appreciate the time that they've taken to place the order.


You are often the first contact the customer will have with us, so it is extremely important that you make a lasting impression. Think about your own experiences with Call Centres… What do you expect as a customer? Use this insight to control your calls and provide the service that you expect.


Chronology of Key Events


160 Viking founded by Rolf Ostern in Los Angeles, California


10 IPO - Initial Public Offering, Viking goes public on the Nasdaq stock market


Vikings first launch into Europe opening of Leicester, United Kingdom


11 nd Public Offering. All debt eliminated.


Database Marketing begins with individualized catalog covers.


1 Opening of Sydney, Australia Call Center & Distribution Center


16 January Opening of Melbourne, Australia Distribution Center


Bruce Nelson appointed President & COO


Irwin Helford continues as Chairman of the Board & CEO


June Sales reach ONE BILLION DOLLARS


18 May Viking and Office Depot announce Merger Agreement


August Viking and Office Depot merger approved. Viking becomes a wholly owned subsidiary of Office Depot, Inc. Combined revenues total $ billion, the largest supplier of office products in the world.


1 December Consolidated revenues for Office Depot & Viking worldwide exceed $10 billion.


000 October Viking launches Internet in Australia www.vikingop.com.au


001 February Viking Australia wins Country of the Year


April Viking Australia announces acquisition of Sands & McDougall in Western Australia.


August Viking ships first same day delivery to Perth metro customers.


December Viking Australia Managing Director, Anne


Cashman is promoted to Senior Vice President and General Manager of US Viking.


00 March Chris Furtado joins Viking as Managing Director


August Viking and Office Depot announce Sale of Viking


00 January rd - Sale Official. Viking now a whole-owned subsidiary of


Officeworks Superstore


August Chris Furtado left the Viking Business as Managing Director.


Andrew Thompson assumed the role of General Manager Direct Businesses.


October Sands and McDougall business merged with Corporate Express.


Only the distribution centre remained with five full time employees.


Viking Australia History


In August 1, Viking Office Products was incorporated and a success story began to unfold. Viking Australia opened its doors and commenced trading from Pike St, Rydalmere on the 5th October 1. Our very first order was taken at 10.00am on that day, the first of over 100! Our first repeat order was taken the very next day. The customer was so impressed when he received his goods on the morning of the 6th October that he rang to place another order. That was the beginning of our FANATICAL CUSTOMER SERVICE!


On the 5th November 1 (exactly one month after opening) Viking received over 1000 orders. In one month we had a database of 1,418 customers.


In the first nine months of trading to June 0, 14 Viking Australia reported revenue of A$ Million. In our first full financial year (ending June 0, 15) we reported revenue of A$5 Million. In the last financial year (8 ) our total revenue was A$115 Million.


When Viking entered the Australian market, there was little, if any, direct marketers in the office products industry. Since then many companies have attempted to imitate the Viking method of reaching its customers through catalogues with varying levels of success. However, rather than concentrating on the competition of our competitors and their activities, Viking choose to focus all its energies on the needs of our people & customers.


That is why FANATICAL CUSTOMER SERVICE is so important to us at Viking.


Since we opened our doors in 1, our business has gone from strength to strength and we are growing at a rapid rate. Viking entered a lease agreement in 1 to occupy the office and warehouse facility at Pike St, Rydalmere.


The lease was signed in the knowledge that the space available would meet our current needs and allow enough space for growth within our first lease period of five years. However, by the end of 14, only after one year of trading it was obvious that we had outgrown the site. So in early 15 we were forced to lease additional office space in South St, Rydalmere (one block away from where we were). At this stage there was only one department located off the Pike St site. As the company grew, it was obvious that to meet the growing needs of our business and 4 more departments moved to the South St site by the end of 15. At this stage we were also looking for a more permanent solution to our problem. We started looking for new office facilities. We analysed where our employees lived and found a central location of land at North Rocks. In February 16 we purpose built our new facilities and in October 16 we moved in and all the office staff were again in one location.


Our warehouse staff joined us in July 18, moving into a brand new warehouse complete with the most modern technology in the Australian office products industry. In total Viking has invested over $1 Million in building this location. That was a significant investment for a company that had only been operating for almost 5 years.


As we kept increasing our business and attracting more customers we were looking for ways in which we could improve the quality of our services. One solution was to open a warehouse satellite in Laverton, Melbourne. This increased our service to customers in the Western & Southern states of Australia. Melbourne has a distribution centre only and was opened on January 1th, 16. Therefore all orders are taken in Sydney & packed, picked & shipped in Melbourne. All our Customer Service & Credit enquiries are handled through our call centre in Sydney. The goods are only shipped out of Melbourne. Approximately 0 people work in Melbourne compared to 10 in Sydney.


The warehouse in Melbourne is extremely advanced with up to date technology and ships to places such as Perth, Adelaide, Melbourne, Tasmania & Southern NSW. It also enables our customers who are in the Melbourne CBD to receive their goods on the same day as ordering.


Viking Australia is constantly changing and will no doubt continue to grow like it has in its first five years of operation. We must remember that our customers will only keep coming back to us and we will continue to keep growing if we ALL provide FANATICAL service to EVERY customer, EVERY time.


Organisational Chart


Production Capabilities


Viking


· currently receives in excess of 000 orders EVERYDAY!


· dispatches 100% of all orders taken EVERYDAY!


· picks & packs over 5000 cartons EVERYDAY!


· handles over 10000 different stock items EVERYDAY!


· receives over 4000 customer calls EVERYDAY!


· strives to maintain below 0.5% in abandon calls EVERYDAY!


· provides customers in Sydney & Melbourne Metropolitan areas with same day service EVERYDAY!


· maintains a backorder level of less than 0.5% of sales EVERYDAY!


· catalogues to prospects and customers across Australia EVERYDAY!


· serves businesses across the nation EVERYDAY!


· delivers orders throughout Australia EVERYDAY!


· opens in excess of 150 new accounts EVERYDAY!


Why has Viking become so Successful?


From the outset Viking has always been committed to the customer by providing Fanatical Customer Service. We strive to impress our customers (regardless of cost) through dedication and commitment and believe that every Viking employee can make a difference. The reason our customers return is not just because to our competitive prices, but the services we offer. We will admit that we are not the leaders in offering the lowest prices in stationery, but we are one of the leaders in the service industry.


The services that keep us competitive and encourage our customers to return


· 0 day free trial on EVERY product we sell.


· A one year money back guarantee on ALL our products.


· Same Day delivery for all our customers in the Sydney & Melbourne Metro areas. ( the order must be placed by 110am)


· A dedicated customer service department & product specialists to efficiently handle any customer enquiries or problems.


· 1800 numbers for customers to call customer service, credit, collections & order entry.


· Our backorders are kept to a minimum. Our products are rarely out of stock.


· Flexible hours Monday to Friday 7am 7pm


Saturdays 8am pm


How can you contribute to Viking?


The whole purpose of your role at Viking is to ensure that our customers are well looked after. All we ask is that you continue to serve ALL our customers both internal and external to the best of your capabilities.


We aim at Viking to ensure that the service we offer to our customers is beyond their expectations. We believe that if our customers receive great service they are more likely to return to us again and again for their stationery needs.


We know that if customers are impressed with our quality of service, they are more likely to spread the word to family and friends and "word of mouth" is by far one of the most effective forms of advertising.


Whilst these beliefs benefit the company, what about you? Why should customer service be your priority? Besides being the reason you were employed, it should be more about the satisfaction that comes from treating people with respect and being respected in return. Your satisfaction should come from knowing that you're not just doing your job, but performing to the best of your ability.


We believe that if you treat people well they will usually respond in the same positive manner, which in turn will make your make role far more enjoyable.


Our Business Priciples


A CUSTOMER is the most important person in our business


A CUSTOMER is a person who brings us wants and needs it is our job to fill those wants and needs.


A CUSTOMER is not dependent upon us we are dependent on our customer


A CUSTOMER is not an interruption of our work a customer is the purpose of it


A CUSTOMER does us a favour when he/she calls we are not doing a favour by serving him/her


A CUSTOMER is part of our business not an outsider


A CUSTOMER is not a cold statistic he/she is a flesh and blood human being with feelings and emotions like our own


A CUSTOMER is not someone with whom we argue or match wits


A CUSTOMER is deserving of the most courteous and attentive treatment we can give


A CUSTOMER is the person who makes it possible to pay our salary whether we are a warehouse employee, telephone rep, office employee, manager or president


A CUSTOMER is the life-blood of every business


First Aid Officers


GROUND FLOOR


Karen Purkis Financial Services Ext. 4458


Lee-Anne Williams Merchandising Ext. 447


FIRST FLOOR


Jackie Carlo Credit Ext. 5810


Joselyn Newcombe Credit Ext. 5807


DISTRIBUTION CENTRE


Gosal Ajit Singh Goods Inwards Ext. (Page)


Joe Vetrano Goods Inwards Ext. (Page)


Fire Wardens


Chief Warden Brian Rennie (Ground Floor, Merchandising)


CALL CENTRE / OFFICE


Deputy Chief Warden Lynne Gamble (First Floor, Call Centre)


Area Wardens Nayef Abourizk (Ground Floor, Merchandising)


Margaret Gallagher (First Floor, Call Centre)


Wardens Kathy Horner (First Floor, Call Centre)


Barbara Kerr (First Floor, Call Centre)


Liz Kogan (First Floor, Call Centre)


Mark Pellow (First Floor, Call Centre)


Damien Yee (First Floor, Direct Response)


Michael Mariakis (Ground Floor, Merchandising)


SYDNEY DISTRIBUTION CENTRE


Deputy Chief Warden Ken Davison (Assembly/Dispatch)


Area Wardens Charlie Assaf ((Assistant Manager Receiving)


Glen Mansfield (Production Co-ordinator)


Dean Williams (Assistant Manager Returns)


Wardens David Cubitt (Goods Inwards/Inventory)


Rob Larkin (Transport)


Emergency Contingency and


Evacuation Procedure


1. Rescue/assist anyone in immediate danger


. Advise receptionist of location and nature of the emergency Dial (Receptionist will advise Chief Warden and the emergency services)


If unanswered/busy/after hours contact emergency services direct. Obtain an outside line and DIAL 000


The chief Warden /Area Warden/ Wardens and other members of the Emergency Control Organisation will assess the situation, take control and issue instructions. Directions given by the Emergency Control Organisation personnel must be observed.


. Fight the fire only if you are trained and it is safe to do so.


4. Evacuate the area when instructed by Wardens. When instructed to evacuate, move quickly but in an orderly manner, as directed by Area Warden/Wardens


5. Proceed to assembly area. If you have a mobile phone take it with you.


6. Remain in assembly area. Do not re-enter the building until authorised to do so.


All staff are to make themselves aware of the location of portable fire extinguishers, emergency exits and the location of the assembly area.


To Contact Emergency Services Direct


Obtain an outside line Dial "000" ask the operator for the service you require i.e. Fire/Police/Ambulance. Wait to be connected and calmly advise the operator of


Building Viking Office Products


Location 15-17 Loyalty Rd, North Rocks


OR


1 5 Fitzgerald Rd, Laverton North


State clearly the location and nature of the emergency


After Hours Once you have raised the alarm, evacuate the building


The Local Area North Rocks


Welcome to the suburb of North Rocks The home of Viking Office Products.


Following is some information about the local area of North Rocks and a list of shops, services & local supplies close to our site.


Petrol Stations


Mobil Cnr Statham and North Rocks Rd


Banks


St George Westfield Shopping Centre, North Rocks Road


ANZ Westfield Shopping Centre, North Rocks Road


Other Services


Australia Post Westfield Shopping Centre, North Rocks Road


General Practitioners 41 North Rocks Road (Doctor's surgery also in Westfield)


Optometrist Westfield Shopping Centre, North Rocks Road


Dentist - North Rocks Road


Chemist Westfield Shopping Centre


Veterinary Surgery 6 North Rocks Road


Westfield Shopping Centre


· Franklins


· Hairdresser & Beauty Salon


· Patisserie & Donuts


· Poultry Shop


· Clothing Alterations


· K Mart


· Rabbit Photo


· Shoe Repairer


· Pet Shop


· Health Food


· Dymocks


· Coles


· Green Grocer


· Butcher


· Delicatessen


· Bakery


· Music Shop


· Video-Ezy


Food Services


Viking makes a point of looking after its employees. One such way is by providing a full catered and subsidised cafeteria called CAFÉ VALHALLA (Viking Heaven). You are able to purchase a wide variety of meals from breakfast to snacks to daily menus and sandwiches. You are also able to pre-order your lunch. Please see Caf staff for instructions. The Caf closes around .0pm


There are also a variety of fast food outlets at Westfield. There are also outlets located in the area such as Pizza Hut, Massinis Italian Restaurant, Chinese Kitchen & Treasure Chinese Seafood Restaurant. The closest McDonalds is located in Church St, Parramatta.


Transport


Harris Park Transport run buses from Parramatta Station to Beecroft via North Rocks Rd. See reception for timetable information


General Expectations


While every manager has their own expectations for the people in their department, there are some general Viking expectations for everyone who joins our call centre.


· Punctuality


· Good attendance


· Honesty


· Respect


· Practice safe work habits


· Rumours are counter productive


· Maintain a positive and flexible outlook


· Full days work for a full days pay


· Communicate openly


· Always say "yes"


· Do it right the first time


· Be a team player


· Take initiative Be empowered!!


· Offer suggestions


· Learn as much as you can !!


· Follow guidelines & procedures within Viking as well as any legislation


· Ask questions


· Provide Fanatical Customer Service "….. and Then Some !" service to EVERYONE our external & internal customers


· And….ultimately enjoy yourself !!


"If you find a job you really love You'll never work again!"


Catalogues


Viking mails a wide range of catalogues to their customer's that cater to most business requirements. We target small to medium size businesses via direct mail through catalogues. At present this is our only form of advertising. We do not have a retail outlet and do not have any sales reps. Our catalogue is our "salesperson". Our sole advertising budget is geared towards catalogue marketing.


Examples of the businesses who receive our catalogues


Schools Service Stations


Hospitals Builders


Solicitors Painters


Accountants Hotels / Clubs / Restaurants


Churches Office managers & secretaries


In the financial year (July 8 June ) Viking mailed over 160 million catalogues worldwide. In Australia alone over 10 million catalogues were mailed out to existing and potential customers.


Since the catalogues are our only form of sales it is important that you remember, YOU are the first impression the customer has of Viking. YOU are the most important person at Viking. YOU will determine whether that customer returns.


Viking's Range Of Catalogues


"Y" Book Prospect


"G" Book General Buyers Guide


"GA" Book General Buyers Guide (Sample Group)


"A" Book Monthly Sale Book


SPECIALIST CATALOGUES


"F" Book Furniture Catalogue


"I" Book Imaging Supplies


"J" Book Filing Supplies


"T" Book Technology


"W" Book Warehouse Book


"P" Book Paper Supplies Book


"X" Book Xmas Book


Catalogue Codes


Each catalogue has its own prefix-


e.g. A61


The letter indicates which book is being used-


e.g. A Sale Book


F Furniture Book


G Buyers Guide


N Imprint Book


P Paper Book


The 1st digit refers to Australia;-


e.g. A61


G67


The second digit refers to the current month-


e.g. A61 January


A67 July


When October is reached 1 is added to the country digit and the current month digit will reflect the month-


e.g. A70 October


P7 December


The "G" book is unique, the numbers after the "G" are the numeric sequence of the catalogue. The "G" book comes out twice a year, January & June. This book is known by many names the "big book" or the "Buyers Guide".


Private Sale Catalogues


Viking also sends out a number of catalogues with ink jetting (personalising) on the front and back of the catalogues. The reasons for these are varied-


· To reactivate customers (customers who haven't ordered in a while)


· Informing customers of Vikings services (same day delivery etc)


· Cross selling products


· Free offers (buy 10 reams of paper get a free post it cube)


· Offering equivalent Viking Products (Viking diaries instead of Collins diaries)


Viking finds that talking to customers on a "one-to-one" basis enables us to develop a deeper relationship with the customer. The customer then feels as though we understand their business needs and what they expect from us. This improves our response rates greatly, which means that we generate more sales and profit.


Viking is striving to be more personalised when sending catalogues, therefore, it is EXTREMELY important for us to obtain the correct information when setting up accounts.


How Do We Compile A Mail Shot?


The overall mail plan at Viking is prepared each year, prior to the end of financial year. The reason being that marketing budgets are set to determine where there is growth in sales, gross profit and the $$'s to allocate to advertising.


The expiration date for each catalogue is then determined. Some books have a longer life span. For example "A" books usually have a life of five weeks. Specialty books such as the P, K, F etc are all given different "lives" some of these could be three months, some of these could be four or even up to six months. This means that the pricing within these books will be current for the life of that book. Expiration dates appear on the front of each catalogue.


The mailing schedule is then prepared prior to the new year starting. This schedule includes our selections from our customer base.


The procedure is as follows


1. Data processing bureaus and printers receive a copy of the schedule.


. A catalogue is chosen.


. A list of suitable customers is selected from rented lists & Vikings own database.


4. The information is processed onto a computer tape.


5. The printers receive the tape and process the catalogues in batches according to geographical area.


6. The printers then lodge our catalogues, which are already sorted into areas, and Australia Post who then delivers these to our customers.


What Are Remails?


If the same catalogue is mailed again, we call that a remail. Remails are targeted at people who have ordered from that book before.


Remails are sent to reinforce that the catalogue still has a "life" and to prompt for that further order.


If a book has two remails the second remail will be identical to the very first book the customer received, however they will have a different keycode.


In order to be able to track and analyse results, each and every mailing is treated uniquely. We do this by allocating a 4-digit keycode that appears after the account number.


e.g. CO54685 MNAA


This keycode is then tracked back to a particular month & type of buyer


e.g. MNAA 08/6 First Time Multibuyer


A MULTIBUYER is defined as someone who has purchased more than once in that calendar year.


A SINGLEBUYER is defined as someone who has purchased only once in that calendar year.


Selections are targeted towards multibuyers & lapsed customers (someone who has purchased in the previous year but has not since) because we know they have made more than one purchase.


The Steps Involved to Process an Order


Step 1 It all begins with Merchandising. They determine what products to carry, what the products will sell for, negotiate costs and plan the presentation of the products in the catalogues.


Step Then our Creative Services department does the graphic design, layout and creation of our catalogues.


Step Direct Response department determines which catalogues we will mail to which customers and when. They also decide which companies to target as prospective customers.


Step 4 The Mail Department helps us too. They send out individual catalogue requests, as well as process our enormous volume of mail.


Step 5 Inventory Control makes sure we have enough stock in our warehouses to fill all our customers orders without delay. They have the overall responsibility for our backorder level.


Step 6 Our Couriers (Comet & Allied) make sure we have everything in place so that we will be able to get the orders to our customer's quickly and economically.


Step 7 IS (Information Services) makes sure we have functional systems and equipment to help us assist our customers.


Step 8 Our Accounting team makes sure our bills are promptly paid so that our vendors help us in every way. Of course our payroll officer makes sure we get our pay on time too.


Step The Human Resources department helps us make this a great & safe place to work by providing us with benefits & helpful service.


Step 10 The Training Department kicks in by helping to develop the staff at Viking & developing training programs unique to Vikings needs.


Step 11 Our Distribution Centres are staffed & managed so that we can ship out 100% of our customers orders the same day.


Step 1 Our Call Centres are filled with fanatical people, ready & eager to handle any customer need from entering orders to establishing credit.


Then it happens…. The customer receives our catalogue and you have the opportunity to provide fanatical customer service.


The Basic Phone Order Flow


Web-site Information


Viking www.vikingop.com.au


Officeworks www.officeworks.com.au


For your Interest


Coles-Myer www.colesmyer.com.au


Viking USA www.viking.com


Your Viking Email Address firstname.lastname@viking.net .au


Glossary Of Terms


Abandon Call The customer has disengaged their call whilst waiting on the queue.


ATL (Authority to Leave) The customer takes responsibility for the order to be delivered without a person to sign upon delivery.


Backorder When a product is out of stock at the time of ordering, it will be placed on backorder for the customer & will ship out once stock has been received from the supplier.


Call Tag Arranging a pickup of goods to be returned.


Cancelled C/H Order has been cancelled from credit hold.


Card Left When the courier calls to deliver the goods but no one is in attendance to accept & sign for them, they therefore will leave a card so the customer can call to arrange a second delivery for the goods.


COD (Cheque on Delivery) Only applies to customers in our same day areas. This process is only instigated by the Credit Department. Our drivers will only pick up cheques. They will not pick up cash.


Credit Hold An order status. This order is being reviewed in credit for many reasons such as they have exceeded their credit limit or they are overdue in paying their invoice etc.


Customer Service The Customer Service department handles all after sales enquiries i.e. returns, missing goods, discounts etc.


Customer Service Product Specialist Looks after the after sales service on all our electrical products e.g. fax machines & copiers.


Credit Reject Customers account has been closed. This could be at the customers request or that we have had problems in terms of collecting on the account. Any credit reject accounts need to be checked with the credit department.


D.O.D (Delivery on Demand) Continuous Same Day delivery . Only available in Sydney & Melbourne metro areas.


Drop Ship An order that is shipped directly from our suppliers warehouse to the customer.


Drop Ship Specialist Person who co-ordinates the ordering, damaged goods & invoicing on all items that come directly from the supplier.


ETA Estimate time of delivery.


Imprint Products that are personalised printed with name, address or logo.


In Process An order status. This order is either still being processed OR has been processed but is in credit to have the credit card debited.


Invoiced An order status. The order has been shipped & invoiced.


MS (Miscellaneous Action) Usually opened on Same Day delivery enquiries for missing goods, late deliveries or when spare parts are required for merchandise. Basically, it is everything that requires a follow up for a customer. An MS leaves the inquiry open. Credit & Collections will not start collecting on this customer until the problem is resolved.


New Customer Audit An order status. This account is being reviewed in credit, as it is a new customer.


Order Deleted An order status. Only reflects on the day the order is deleted.


POD Proof of Delivery


RA (Return Authorisation) Also known as a call tag. The customer arranges return of goods purchased through the customer service department.


Ready for Shipper An order status. When the order has been released from credit & is ready for the packing/picking list to be printed in the warehouse.


Same Day Refers to delivery time for Sydney & Melbourne metro areas. If the customer orders before 11.0am (10.0am for Gosford), they will receive the goods the same afternoon.


Shipped - An order status. The order has been picked, the carton has been sealed, label has been scanned & the order is ready to be shipped or already shipped.


Shipper Printed An order status. When the packing/picking list has been printed & the order is ready to be picked or is currently being picked.


Tracer (TR) A method done to locate missing goods or goods that have not arrived to the customer.


Tracing Specialist Responsible for follow up on any goods that go undelivered or are damaged after the first reorder has taken place. They will also negotiate with our courier company on insurance claims.


Void Where an order is to be cancelled & the status shows shipper printed. This is due to various reasons such as the customer has requested it or Viking has made an error when entering the order etc.


Will Call An order that the customer (or courier) will call & collect from our warehouse.


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Nietzsche's morality

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In A Nietzsche Reader, Nietzsche's views on morality are outlined. Although his ideas are bold and pointed, they also are at times contradictory. Many of his concepts and arguments are more thought provoking than practical. It would be a difficult task to maintain a strong set of ethics, while at the same time be a true follower of Nietzsche. Not only would it be difficult because of the wide variation in the way he defines morality, but it would also be difficult to find the median between the propositions he requires one to adhere to. However it does seem that there possibility of reaching


When Nietzsche first defines morality, he states "Morality is nothing other than obedience to customs." (pg. 87) These customs are formed from tradition which is "A higher authority which one obeys, not because it is useful but because it commands." (pg. 87) However Nietzsche acknowledge that laws which do not make sense should not be law, as they cause more trouble then they would impede. Essentially, when one abides by the law which one is command to, they are furthering the good of the community, but not necessarily themselves.


Nietzsche believes that following the law is part of morality. In fact, he states that one's conscience is just, "The voice of laws." (pg. 85) The conscience is what tells one what is right and wrong. As long as the reasons behind the laws are good, then those laws should be followed. It would be immoral not to follow those laws. However, a successful crime which breaks the law is, in fact, moral. The idea is that the "crime" will be realized as right and then define the new law of the community.


Morality is also defined as "The herd instinct of the individual" (pg.10). This herd instinct is very similar to the concept of the good for the community. One must not look out for one's self interest exclusively, but instead look out for the greater good for the community. With the concept of the herd instinct and following what is commanded, morality is taken out of the hands of the individual and instead controlled by society. Since "Free-doers are at a disadvantage compared with freethinkers because people suffer more obviously from the consequences of deeds than from those of thoughts" (pg. 1), those who act free from the bounds of society are likely to be punished. So those who commit what they believe to be a moral action, are punished.


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The major difficulty with maintaining a strong set of ethics, and being a follower of Nietzsche comes when one's moral beliefs differ with what is commanded by society. It is not often the case that one bases their morality entirely off what is commanded to them, there will always be discrepancies between the law and one's personal ethics. The way Nietzsche suggests one must remedy this situation is not by committing acts of crime alone, but successful ones. After this, one's personal moral beliefs will become the law ideally. This method for morality is unpractical and only allows individual thought to those who are able to commit successful crimes, or in other words the elite.


Please note that this sample paper on Nietzsche's morality is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Nietzsche's morality, we are here to assist you. Your persuasive essay on Nietzsche's morality will be written from scratch, so you do not have to worry about its originality. Order your authentic assignment and you will be amazed at how easy it is to complete a quality custom paper within the shortest time possible!


Courage of their convictions

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Courage of their Convictions


August 31, 2002


The Courage of their Convictions


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In reading Peter Iron's book The Courage of Their Convictions, I came to learn of the lives and situations of some ordinary Americans who had unequivocal beliefs and sought the protection of the United States Constitution. The Constitution does not specifically address all the possible issues that could come up for debate, rather it sets forth basic principles about which our country was founded. It was written over 225 years ago by men who had the courage of their own convictions, and yet how could they have known that their creation would be used to judge those who didn't want to fight in Vietnam, or by others who believed that their religious beliefs should keep them from saluting the American flag. Our founding fathers would probably be astounded by the world in which we live today, and yet I believe they would agree that all Americans, like the Gobitises, the Jafrees, and even Michael Hartwick, must stand up for what they believe is right and not be cowed by others, even by their own government.


Our Constitution has to be flexible and open to interpretation. I believe that this


aspect is a major factor in its ability to transcend the times. One problem though that comes with this flexibility is that contemporary political and social issues will and do affect its interpretation. After all the Supreme Court is a political institution, where the


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President appoints members who share his values, which suggests that the justices might vote along political lines. When the Gobitis' children refused to salute the American flag on religious grounds, they were expelled from school. The family took their case to the Supreme Court, where they lost because Chief Justice Frankfurter's view that religious beliefs didn't relieve a citizen of his political responsibilities prevailed. Had I lived in the 1930's I might have agreed, but if the case was decided today, I'm sure the expulsions would have been seen as violating our First Amendment rights. Then take the case of Michael Hartwick. When his case was decided, the Supreme Court was "sharply divided" (389). The majority found that the Constitution did not give homosexuals a fundamental right to engage in sodomy. Justice Byron White, a "stern judicial moralist", based the opinion on morality and religious tenets banning sodomy (389). The dissent, on the other hand, focused on the right of privacy and that allowed individuals to engage in intimate relationships without intrusion by government. In his opinion, Justice Blackman urged the court to reconsider, saying, "…depriving individuals of the right to choose for themselves…poses a far greater threat to the values most deeply rooted in our Nation's history than tolerance of nonconformity could ever do" (391). The case simply required a Constitutional interpretation by the highest court and yet the justices couldn't find common ground. It would seem that the justices were so divided because of political, or religious beliefs, not because the Constitution itself was not particularly clear on this matter.


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The "fight" in the various plaintiffs is in itself remarkable. Not because they were naturally belligerent, but because their belief in the fundamental "rightness" of their particular cause was so complete that they never thought twice about fighting for it.


J.D. Shelley simply wanted to live in a house that would suit his family, one that he could afford and one that could help him get on with his life. He didn't care that all his neighbors were white and most might not want him there; he was not intimidated; it wasn't something that would make him leave. And he wasn't about to back down when he was sued for violating the property's racial covenant. Likewise, Robert Bell knew that once he chose to get involved with the sit-ins, there would be no backing down. He admits that he wasn't a particularly brave person, and he eventually decided not to continue with the active sit-ins and other demonstrations. But Bell did move on to go to Harvard Law School, and eventually he became a judge. He felt compelled to give back to the community, and in his own way to continue the fight for equality. Why? Because he fears that complacency is the very thing that will hinder progress and hamper our individual freedoms (152). Daniel Seeger didn't recognize that by checking the "no" box on his draft registration form, his life would change, but it did. The other remarkable thing about these plaintiffs is that they all say they would "fight their fight" all over again if given a second chance. Why? Because it would be the right thing to do, not for the Constitution itself, but to give it an opportunity to make a difference. In their personal statements, each one said something similar to what Dr. Jane Hodgson said: "When I


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first got involved in this issue, I really didn't foresee all the complications…But I haven't any regrets. I wouldn't do it any differently" (279). The conclusions they came to remind all of us that these small, individual struggles are crucial to maintaining individual freedoms for all Americans.


Please note that this sample paper on courage of their convictions is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on courage of their convictions, we are here to assist you. Your persuasive essay on courage of their convictions will be written from scratch, so you do not have to worry about its originality. Order your authentic assignment and you will be amazed at how easy it is to complete a quality custom paper within the shortest time possible!


The fruit beverage industry is still in the nascent stage. The spectrum varies from well-entrenched players like Parle Agro's "frooti", Enkay Texofood's "Onjus" and "Life" godrej food's "jumpin" and dabur's "real". Leading foreign brands in the market

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The fruit beverage industry is still in the nascent stage. The spectrum varies from well-entrenched players like Parle Agro's "frooti", Enkay Texofood's "Onjus" and "Life" godrej food's "jumpin" and dabur's "real". Leading foreign brands in the market are PepsiCo's "Tropicana". There are other significant players like Noga, Xs and Refresh, but roadside vendors and stalls meet most of the consumer need. The Indian consumer, on an average, has also not awakened to the fact that there are a number of fruit beverages available in tetra packs and are hygienic and healthy to consume.


In this context, the industry needs to be studied to find the structure in terms of players, substitutes and others factors governing the success of leading players.


This report attempts to study the following:


Essay service for your The fruit beverage industry is still in the nascent stage. The spectrum varies from well-entrenched players like Parle Agro's "frooti", Enkay Texofood's "Onjus" and "Life" godrej food's "jumpin" and dabur's "real". Leading foreign brands in the market paper


To study and analyze the consumer preferences for the purpose of devising launch strategy consistent with the needs of the target segement.


Also to do a study of Indian beverages sector and provide company with required information to take informed decisions .


· Fruit beverages market in terms of major players, market size, growth and demand, market shares of players, segmentation statements and positioning of the various products available.


· The consumer segments and their habits and practices also have been studied along with


· To analyze the reasons for success and make a set of best practices and strategies for the players. The company profiles also need to be studied to be able to cross-compare and make deductions as to what are the best practices existing.


.further there is a immediate need for strategizing against the substitutes which overlap with the segments of this industry and which is important to build and strengthen market base.


WHAT DO WE WANT TO STUDY?


In broad terms, the major tasks in the project are to study the fruit beverage industry, with specific reference to orange juice which would include the following:


* Study the market size


* Study the major players, their market shares and production capacities, and their sources of raw materials.


* Study the substitute products (flavored milk, soft drinks, mineral water)


* Study the consumer attitude towards this concept


* Study the emerging trends (in products, packaging, pricing and promotion)


WHAT DO WE WANT TO ACHIEVE THEREBY?


The objective to study the above in detail is:


* To thoroughly understand the fruit beverage market


* To predict emerging trends in the packaged fruit juice sector, with specific reference to orange juice.


* To understand the competitive structure and analyze consumer attitudes and preferences in order to suggest an optimum marketing mix to the "PQR COMPANY".


METHODOLOGY:


The fruit beverage market has been studied mainly through publications and articles in magazines and newspapers, websites and data available within the case study..


This data has also been gathered under various market segments existing in the industry and the major consumer tastes and preferences.


For understanding consumer preferences survey method has been employed through questionnaires. Further questionnaires have also been administered to retailers in order to understand consumer segmentation and various competitors.


Informal talks with roadside vendors and fast food huts have also been used to gather data on the existing competition, promotion measures and brand awareness.


4. SUBSTITUTES


The substitutes market is the major threat sector for the fruit beverages. It comprises flavored milk, cold drinks, and mineral water. The fruit beverage industry faces tremendous competition from many substitutes available in the market. Some of the major substitutes are:


1. Soft Drinks (both cola and non-cola drinks)


2. Flavored Milk (Milda, Zip Sip, n-joi etc.)


3. Mineral Water


4. Other milk products like buttermilk and lassi.


4.1. SOFT DRINKS MARKET


Segments: Soft drinks are divided into carbonated and non-carbonated drinks. While Cola, lemon and oranges are carbonated drinks, mango drinks come under non-carbonated category.


Packaging: Soft drinks are available in bottles, cans and large PET bottles for home consumption.


Fountains also dispense them to cater to the demand of fountain drinks by on-the-move consumers who are price conscious.


This market has witnessed a growth rate of around 16 percent for the last two years as compared to the growth rates of 5%-6% in early 1990s and 2%-3% in late 1980s.


Segmentation


The soft drink market can be segmented in accordance with the point of purchase as:


· On -Premise: Around 80% percent of the consumption of soft drinks takes place on-premise, i.e., restaurants, railway station, cinema, etc. which gives a lot of competition to the fruit beverages which competes directly with take-home packs of fruit juices as well as squashes.


· At - Home: The remaining 20 percent of the soft drink consumption is for home.


The cola and non-cola segments are as follows:


· Cola: This accounts for 60 percent of the total soft drink market at the all India level. The brands that fall in this category are Pepsi, Coca Cola, Thumps Up, etc.


· Non-Cola segment which can be further divided into:


* Orange: This segment has a 19 percent market share of the total market. Fanta and Crush fall into this category. The product of PQR Company will face major competition from this category.


* Cloudy Lime: This segment represents 14 percent of the total market. Limca and Mirinda Lemon fall in this category. Limca is the largest non-cola brand and holds a share of around 82 percent of this market.


* Clear Lime: This comprises 3percent of the soft drink market. The major brands, which fall in this category, are Citra, Canada Dry and Sprite.


* Mango: Slice, Maaza and are mango drinks having a market share of 3 percent.


Consumer Habits and Practices


The competition from soft drinks market exists for fruit juices because the consumer segments are universal for both and the reason for purchase in both categories is almost the same.


· Consumers purchase soft drinks primarily to quench thirst. Therefore people traveling and not having access to hygienic water reaching out to soft drinks account for a large part of the sales. Not having access to hygienic water can also result in purchase of fruit beverages and it is here that soft drinks give them the hard battle.


· While there is no aversion to consumption of soft drinks by any age group, the main consumers of this market are people in the age group of 30 and below. Thus, the soft drinks directly compete with the fruit drinks, which are also targeted towards the same age group.


· Brand loyalty is high in the case of kids and people in the age group of 20-30 years. This again is a major threat to the fruit beverages market.


Some of the major strategies, which are being or have been adopted by the cola players to combat competition from the fruit juice market, are:


· Introduction of Diet Pepsi/Coke.


Diet Pepsi/Coke were mainly introduced to capture the health conscious consumers, whom they would have lost to the fruit drink market. They tried to position their products as fun drinks.


· Packaging:


Since the fruit drinks have been positioned as on-the-move drinks, the cola players have introduced cans and 500 ml PET packs. These players also switched back to 200ml bottles mainly to reduce the unit cost in the expectation that such a strategy would lead to more frequent buying.


· In United States, Coca Cola has launched a new product " Frozen Coke". This launch was the result of the company's belief that it would lead to legitimization of the product as a real beverage. (Source: Atlanta Business Journal, May 14-20,1999)


Distribution:


The distribution network of these drinks is very strong and widely distributed which gives a strong shake to the fruit beverages industry. Coke had 5 lakh outlets by the end of 1997 while Pepsi had 3.5 lakh outlets.


4.2. FLAVOURED MILK


Just like fruit drinks, flavoured milk is also positioned on the health platform. Companies are trying to project it as a fun drink with added flavours and innovative packaging.


Due to the perishable nature of flavoured milk, this segment has been dominated by regional players like Energee and Milda. in February 1999, Britannia entered in this segment at the national level with its offering named Zip Sip. Available in five flavours - pineapple, mango, strawberry, chocolate and cardamom, it is made from cow's milk and has no preservatives. It is offered in 200ml tetra packs.


Zip Sip has been positioned as a cool milk drink with Vitamin A that could help bringing about regularity in its consumption and not make it a one-off impulse drink. Due to its projection as a fun drink, the company considers all branded products in the soft drinks and fruit drinks as their competitors. Zip Sip has a vast distribution network with 4,50,000 retailers, targeting 50% of these for Zip Sip, which is a serious threat to the fruit drink business.


Tetra packs are also being used to sell fresh, long-lasting milk packs and ensure quality delivery. Also UHT (Ultra High Treatment) is being used. For these milk products, retailers opine that advertising is crucial for success. While in competition with fruit drinks, retailers are given a margin of around 15 % for flavored milk brands and they encourage more promotional schemes to boost sales.


4.3. MINERAL WATER


This was one of the most surprising finding of our project. Fruit drink sellers consider even mineral water as a substitute for to their offerings. The main assumptions are packs ensure quality delivery. Also UHT (Ultra High Treatment) is being used. Mineral water essentially caters to the demand of travelers and affluent customers which is also the target market for fruit beverages. The consumer's perception as regards contaminated water has also undergone a change and international as well as domestic tourists accept mineral water as a travel companion. The bottle can be


contaminated water has also undergone a change and international as well as Segmentation


The mineral water market is segmented according to the type of consumers:


· Foreign Tourists: Foreign tourists have been the main consumers of the mineral water as they face a lot of digestion problems due to different food habits.


· Domestic Tourists: Domestic tourists have switched to mineral water mainly because of safety and hygiene factors.


Fashion Conscious: Like soft drinks, drinking mineral water is also considered fashionable by some people.


The mineral water consumer is mainly in the age group of 20-35 years and is an educated middle class person. This is also the segment of fruit drinks, which have usually been positioned as fun and health drink for young adults.


The mineral water market is also segmented along pack sizes:


· One litre bottle: it is meant to spell safety and security for consumers. It is positioned on a prestige platform for the achiever segment - who like to make a fashion statement by drinking mineral water. This segment gets the maximum sales.


· 500ml bottle: This size has been introduced in the market to target the individual and local travelers.


· PET bottles: The size of the PET bottles varies from 10 to 20 litres. These are mainly for institutional sales (Wedding parties, Hotels, Corporates,


2.5. CONSUMER HABITS AND PRACTICES


The Indian lifestyle has a traditional predilection for fresh fruits and vegetables or those processed at home. People go in for fresh fruits vending from kiosk fountains, which produce instant juices from fresh fruits in the presence of the consumer. One reason is the unavailability of hygienically produced and well-preserved products with the use of preservatives. The fact that it is packed denies its freshness. This was also a reason why some of the real but branded fruit juices launched in the late 1980s and early 1990s did not succeed. Taste is often the secondary consideration in the Indian market for beverages. Fruits juices also lose on roughage, which is an important part of fruit nutrition. Few people know the difference between a juice and nectar.


In general, the Indian consumers have become health conscious now and are looking for healthy and natural and appetizing juices. They are moving away from synthetic drinks to natural and wholesome fruit juices. At present


· Per capita consumption of juices in India is estimated at a fraction of a litre -200ml.


· The consumption of fruit juices in take-home packs is estimated at 17250 mn lt.


· Consumers go for convenient and economy products. So small packs are well suited for travelers and children and large take home packs for families and price conscious people.


· Availability in chilled form and brand awareness plays a crucial role in purchase decision. This has implications for the need for availability of the product and in the right form.


· While there is no aversion to consumption of fruit beverages by any age group, the main consumers of this market are people in the age group of 30 and below. Young adults and teenagers predominantly consume tetra pack drinks.


· Brand loyalty is very low, as all the products taste the same. But brand loyalty is high in case of kids. Though there is a lot of difference between brand awareness and brand loyalty.


· Consumers are money conscious where the purchase of fruit beverages is concern.


· Consumers are not ready to explore the market. They do not want to change their taste and are stuck to their old brands. Orange and other drinks are slowly picking up and breaking the loyalty towards old brands.


2.6. PACKAGING TECHNOLOGY


With the change in consumer preference for the product, there is a change in the package preference. Tetra-Pack India, a part of the $10 billion Tetra Laval group, has become the major source of brick cartons amenable to aseptic packaging and impairing long product shelf life to the foods.


Packaging has emerged as the 5th P of marketing. Especially in context of food products, packaging has been designed and used to connote wholesomeness and provide convenience.


Coming to fruit drinks, the possible packaging could be using


· Food grade polyethylene.


· Glass bottles


· Canning


· Aseptic packaging


Although a small volume of branded fruit juices are sold loose (an example is hpmc), the loose fruit juice market consists mainly of unbranded players (mainly the restaurants).


In spite of the cost advantage food grade poly packaging is almost out of question because


· It does not provide the kind of shelf life required to store seasonal juices for the off-season.


· It is not tamper proof and hence is not perceived to be wholesome.


Glass is burdened with the cost disadvantage which can be overcome only by giving up the on the move image. This means a loss of one segment of the market. However glass is expected to come back in a big way owing to its environmental friendliness coupled with the increased environmental awareness. A lot of research is also on the way to make glass cheap and light in weight.


All most all the major players in the fruit juice segment have positioned themselves as either on the move / nutritious/fun to have drinks. To project this image, tetra packs have served the best. (See appendix 1)


Canning is very useful in terms of the longer shelf life but has constraints in the form of time and effort required and the technological know how.


Consumer Habits and Practices


· Consumers are growing more health conscious and are morecareful of their drinking habits.


· Brand loyalty is very low as all the products taste the same so they can buy just any product which is on the shelf, same as that of soft drinks and fruit beverages.


· Availability in the chilled form and brand awareness plays a crucial role in purchase decisions.


· While there is no aversion to consumption of mineral water by any age group, this product is mainly consumed by the people in the age group of 20-35 years who have less attraction of soft drinks or other synthetic drinks whereas youngsters look in for soft drinks and fruit beverages to quench their thirst.


· Visibility is another factor that should be taken care of by the companies as consumers are not very brand loyal and consume whatever is in front of them.


4.4. OTHER MILK PRODUCTS


As the major demand for fruit beverages is during summers, milk by-products like buttermilk and lassi also serve as major substitutes. They compete in terms of low price as well as easy availability. These drinks are also considered important from the health


. INDUSTRY ANALYSIS


A cross company analysis needs to be done to analyze the fruit beverage industry in the following heads:


· A cross comparison and preliminary analysis


· Analysis of reasons for the success of leading players to identify the sources of competitive advantage


· Make a set of best practices to ensure success for any player


5.1. CROSS COMPARISON


The players in this industry have been around for less than five years and they have adopted a mix of strategies to grab market shares. While some strategies are widespread among all the players, some of them are exclusively used by only particular companies, which can presently be said to be the major success factors for them.


The crucial factors for success in this industry are identified as follows:


· Sourcing of raw materials


· Technology used for processing


· Product portfolio and variants produced


· Packaging technologies used


· Distribution strategies, logistics and reach in the market


· Strategic alliances and joint ventures to gain competitive advantage in packaging, distribution and product formulations.


The players can be compared across some universal factors such as:


· Source of raw materials


· Product portfolio and variants


· Packaging technology


· Distribution reach and logistics


· Promotion schemes.


· Strategic alliances.


· Exports


Table 5.1 Cross comparison of major players in fruit beverage market


PARLE AGRO ETL GODREJ FOODS NOGA DABUR FOODS PEPSICO


Raw Materials Largely from India Oranges from Florida and Brazil, Alphonso mangoes Alphonso mangoes for Xs, (others n.a.) Local Sourced from Brazil Apples from China, pineapples from Thailand and Phillipines. Oranges from Brazil and USA


Product portfolio Frooti, Appy, Yo Frooti, Yo Appy(drinks) Onjus (orange juice), Life (mango nectar) Jumpin (drink), Xs (nectar), Refresh (drink), Jumpin Masti (nectar) Juices, nectars and squashes Real (juices and nectars) Tropicana(100% juice)


Positioning Fun drinks for children Onjus-natural taste, on the move drink; for young adults), Life-fun drink Jumpin as a fun drink, Xs as a nutritious drink cum snack NA Started as on the table family drink and shifted to on the move drink.Currently as soft drink kind of beverage with added health benefit. As a breakfast food


Flavors Mango, orange, apple Mango, orange Mango, orange, apple, pineapple, guava, litchi Orange, pineapple and mango Mango, pineapple, orange, mixed fruit Orange, pineapple, grapes and mixed(orange and white grape)


Production facility 7 plants 1 plant at Vapi Plants at Mandideep, Bhopal, Mumbai, Mysore, Wasik Plant in Nepal Concentrate from plants in Florida, blended locally under its supervision at Dynamix dairy Industries' a plant in Baramati, Maharashtra


Packaging Tetra packs (200 ml and 300 ml) Tetra packs (250 ml and 1 litre take-home) Tetra packs Cans and tetra packs (250 ml, 300 ml and 1 litre) Tetra packs (250 ml,350 ml,500 ml and 1litre) Tetra packs (500 ml and 1-litre)


Distribution Franchises, stockists, and strong rural network 302 towns and outlets like general supermarkets and departmental stores 50000 towns, with distributors and retailers. Reach in places like Leh, Sikkim and Guwahati Kiosks, 150 dealers across the country Network of 80,000 outlets in 280 cities and big towns. Comprises of depotsàstockistsàretailers. Delhi, Mumbai, Hyderabad and Bangalore.


Advertising agency Advertising Avenues DMB&B NA. NA NA


Sales segments Institutional sales minimal (airlines, hotels, railways) Share in all income segments, institutional sales in military canteens, airlines, hotels and clubs Middle and lower income segments, Primary market- Mumbai, strong institutional sales, efforts to make a mark in retail segments Upper and middle income classes. Institutional sales (airlines, marriage orders) and special occasions), almost no competition in Gujarat Upper income segments due to high price and metropolitan cities.


Alliances none Blue Diamond Almond Growth Association Foreign and Indian partners for production and marketing Elopack (Norway ) for packaging technology Tropicana was acquired by PepsiCo.


Exports Europe, American and Arab Largest exporter of juices, pulp and concentrates to Europe and North America 20% of total manufactured volume to west Asian countries None None NA


5.2. ANALYSIS OF REASONS FOR SUCCESS :


The fruit beverage industry is growing at a pace of 15% per annum. And the market is still in a nascent stage. In the last four to five years, three players have emerged as the market leaders: Enkay Texofoods with Onjus, Dabur with Real and PepsiCo with Tropicana. The challenge in front of the leaders currently is to expand the market further as well grab the largest shares.There are old as well as new players like Godrej foods with Jumpin, Xs and Refresh, Parle with Frooti and NOGA. The market leaders have adopted various strategies and made many strategic moves to emerge as leaders. Following is the analysis of the three current market leaders:


ONJUS


· This drink has cashed in on the first mover advantage


· The brand has consistently followed the ATA model of availability, taste and affordability.


· Onjus sources its raw material from Brazil and Florida and has mixed it with Indian mandarin to cater to Indian tastes.


· It targets all the income segments and is priced comparatively lower than Tropicana and Real and has a large chunk of institutional sales.


· It has built a strong distribution network spanning 302 towns.


· It has emerged as the largest exporter of fruit juices , pulp and concentrates to Europe and North America


· Onjus initially used a penetration pricing strategy and then hiked the prices to come at par with other brands and skim the market.


· The Onjus controversy over sourcing of its raw materials did not harm its position due to its strong image in the market.


· It also has a strong promotional drive to push sales.


REAL


· Dabur learnt from its failures with real. Initially priced higher than Onjus, it lowered its price.


· Real has the advantage of the brand name 'Dabur' which is associated with health in India.


· It also changed its packaging, positioning and advertising to give Real a new look.


· The positioning was changed from on-the-table to on-the-move to take advantage of volumes. It is also promoted as a soft drink with additional health benefits.


· Dabur incurs low cost of production owing to import of fruits from Brazil than European traders.


· With the alliance with Elopack, Norway, it has a superior packaging of 9-layer foil. It also offers a tetra pack with a cap that can be screwed back. Imported packaging technology gives Dabur an upper hand.


· Real stresses on sweetened tastes. By this, it caters to Indian taste preferences. (Indians find Tropicana juice bitter).


· A strong distribution network with enough margins for dealers.


· Continuous innovation has helped Dabur to keep pace with market (plans to come up with vegetable juices)


TROPICANA


· The main advantage is that Tropicana is a well-established brand in US.


· It has a strong research base, which helps it in coming up with new flavours.


· To cater to Indian tastes it has come up with a special Orange and White Grape blend.


· Global sourcing strategy enables it to provide quality products.


· In terms of distribution, this brand has the greatest advantage. (Pepsico has more than 600,000 outlets in India)


5.3. WHAT ARE THE BEST PRACTICES?


Since the industry is still in the nascent stage, the practices adopted by the leaders can give a fair idea of what practices would lead to the success of any player. These practices are also combined with the trends in the western fruit beverage market.


The success of the market leaders suggests that:


· State of the art production and packaging technology is a must. This gives an edge in packaging and ensuring freshness of product besides enhancing the image.


· A strong distribution network is essential for ensuring availability to fight competition from the other players and also the substitutes which have a strong distribution reach.


· Companies should take into account the regional taste preferences and build products to serve the same. Various concoctions and formulations in the US and other foreign markets suggest that such strategy is necessary to live the image of the company and remain in the forefront.


· Innovations in terms of ethnic flavours and mixes will pay off. (Kool Kokum)


· Global sourcing strategy will give an edge over other players in terms of both cost and quality advantages.


· Strong advertisement especially media campaigns would help the players in the fruit beverage market to combat competition from soft drinks, flavoured milk, mineral water and unbranded sector.


From the trends observed all around the globe, one can see that:


· Continuous innovation in product formulations, in terms of blends, fortifications and health concoctions would become a necessity in future to differentiate products. Such a strategy would help players to remain in the market.


· New forms of packaging like resealable tetra packs, screwable caps, plastic on glass etc. suggest that fruit beverages continuously require small revisions in terms of product formulations and packaging and also need strategic changes in marketing aspects like promotion, pricing volumes sold, advertising and promotion.


The entrants and existing player need to appreciate the fact that growth in the market with onslaught of global competitors will have to be met with better preparations in marketing strategies and continuous promotion, advertising and product changes will be required to fight competition.


There is another determinant to success of the players in this industry and this includes the tropical fruit market scene in Asia and the world.


5.4. THE TROPICAL JUICE MARKET IN ASIA


The tropical juice market in Asia can give some insights into the future of the market in India.Way back in 1998, despite the growing popularity of tropical juices, there were indications that traditional suppliers would not be able to serve the market. There were adverse economic and weather conditions also in Thailand and India. Mango production In India was hit hard by higher than normal temperatures, followed by floods. There were certain adverse conditions in Thailand such as weather conditions, economic crisis, depreciation in baht, low purchasing power and less import demand, leading to shortage of transport containers and a rise in shipping costs.


This suggests that such developments, whatever they are, affect demand. This is evident in the fact that there was a threat to Asia's strong position in the international juice market even when demand for tropical juices grew.


In the global market, the European and US importers are the major buyers of tropical juices. These importers mainly demand mixed tropical drinks. In Europe, many juice concentrates (including guava, banana, papaya, and others) are mixed with orange and pineapple to form nectars and special tropical blends. Netherlands is the largest continental importer of juices for mixing purposes and usually does so for resale to the rest of Europe.


In the U.S., the tropical juices are also enjoying increasing popularity. From 1994-1996, the total volume of banana juice imports grew by 15 percent whereas imports of tropical juices excluding banana and pineapple increased by 50 percent during the same period, both in volume and value terms.


The long-term trend in the U.S. juice market points toward increasing popularity for tropical juices. An important reason being sighted for this increase is the growing number of Asian and Latin American immigrants, which in turn has sustained the growth of ethnic based food stores. A more recent development is the popularity of multivitamin drinks during hot weather. These drinks are prepared by mixing juices such as mango, papaya, guava and others with vitamins and health related supplements.


The following fruits have the following demand patterns in the world:


Pineapple


The price of pineapple juice has increased over the last couple of years due to Asian production shortfalls, which have caused unrest among the importers worldwide. Philippines and Thailand are largest pineapple suppliers by volume. Shrinking demand and shortage in production has led to a 13 percent reduction in U.S. imports.


Unlike the U.S., demand in Europe continues to be strong despite the high prices. EU pineapple juice imports have doubled over the past ten years, to nearly 100,000 metric tons per year. Imports of this magnitude began in 1994 and have hovered at this level. This juice is especially popular in the Mediterranean countries where temperatures are high during the summer season.


Thailand is the largest pineapple concentrate exporter to the European Union, normally accounting for 25 percent of all imports.


Mango


The concentrates from Central and South America enjoy popularity among U.S. and European juice importers.


Banana


Normally supplied in large quantities by India, buyers have begun to look for alternate sources as the supply and the quality of banana puree have been put to question because of some bad seasons in last few years. Costa Rica dominates the U.S. market, supplying over half of all imported banana puree.


Other Fruits


In the U.S. other tropical juice imports (except banana and pineapple) have shown steady growth in recent years. Brazil and Ecuador are the two major players who hold the top spot in the export of juices.


India is the main supplier of white guava whereas the pink guava (more popular guava variety for juice making processes) is exported by Malaysia, Brazil, South America and Venezuela.


5.5. STRATEGY AGAINST SUBSTITUTES


The substitutes pose a major threat to this industry. One reason is that consumers are still not very much predilected towards health drinks. They get a wide variety to choose from when they buy from the same shelf. The same shelf contains, cold drinks, flavored milk and mineral water.


6. TRENDS IN THE INDUSTRY:


Ø Current growth rate of the fruit beverage industry is estimated to be 50-60% above the last year. The decibel levels of Real and Tropicana and the gap that existed for packaged juices have spurred this growth according to the industry analysts.


Ø Consumption of fruit juices in take home packs is estimated at 17250 million liters and could increase to 21570 million liters in the coming few years. The entry of other global players, who are entering both with and without domestic alliances, will expand the domestic market faster with their promotion strategies. These strategies would mostly take up the form of a full-fledged media campaign.


Ø There are few changes in the consumer behavior as well, which have spurred the market for fruit juices viz


· Consumers are turning away from the high-calorie, sugar loaded juice drinks in favor of more natural, vitamin-fortified products.


· Culture of orange juice with break fast is growing very fast.


· In the western markets, all-natural juices are the strongest growth leaders and are slowly replacing the concentrated fruit


beverages and novel fruit drinks.


· Also, consumers increasingly prefer chilled or ready to drink products over from-concentrate variety.


The growth of white spirits market is causing juices to grow as well. It is acknowledged that rum or vodka taste best with a variety of juices or juice mixtures, Gin goes well with grape fruit juice and Bourbon Whiskey can be mixed with Peach, Apricot, Mango, Papaya and orange juices. Owing to the same trend some fanciful juice mixtures like Raspberry with Mango have started gaining popularity. (Source: Nations Restaurant News.15th March 1999)


The developments in the western markets have always have had a trickle down effect on the Indian market, so a lot of changes can be anticipated in the product & packaging of these products in the near future.


Ø With respect to the fruit juice market, the two main drivers identified are the quality of the juice and the consistency of the quality. This means that the Indian consumer has to be convinced that the juices are pure and do not contain any preservatives. (Source: THE ECONOMIC TIMES, Brand Equity, 9th Feb, 2000)


Ø Energy has emerged as another option for the positioning of fruit beverages. Fruit products companies in the west have already begun using this ground. (Drug Store News. 27th Sep.1999)


Ø Ocean spray of Weltfleet farms brand relaunched its 100% juice line named as Ocean Spray premium 100 percent juice. The products contain cranberry and red grape juices and emphasizes health. The company has also launched cranberry juice cocktail plus (27 percent juice) having vitamin C, A and E as well as 130 percent of daily-recommended allowance of calcium.


Ø Vitamin fortified juices have become the rage. Sales of calcium fortified Tropicana pure premium orange juice, rose 173 percent since 1997. Tropicana has three offerings of calcium-fortified juice and one offering of orange juice with Vitamin E and C.


Ø Tropicana goes against Coca Cola's Minute Maid brand. Minute Maid has tropical blends and fortified natural juice products like orange tangerine and orange passion. In answer Tropicana has similar newcomer varieties like Tangerine orange and tropical orange. (Source: Discount Store News 22nd March, 1999)


Ø A few ethnic flavours like Kool Kokum's Jaljira and Regent Agro's Coco Sip are into the market and are expected to be a hit.


From these trends we see that a number of combinations in terms of fruit juices mixture and fortifications (Vitamins and Minerals) can be formulated and be used to expand the market.


Ø In the bottled juice market there are well known brands in specific niches, such as Welch's in grape juice niche and ocean spray in cranberry juice niche. They have enjoyed large volumes by building on publicity and research, claiming the health benefits of grapes and cranberries. Example: Cranberry juice helps in preventing urinary tract diseases and grapes have natural antioxidants to reduce the risk of some cancers and heart diseases.


Any company can create a niche for itself by concentrating on a particular juice and then advertise to cash upon the desired tastes demanded by the consumers.


Ø Owing to the demand for convenience, plastic packaging has emerged over glass packaging. Half Moon Bay California created new packaging for its natural refrigerated juices. The new bottles are made of recyclable HDPE (High Density Poly Ethylene) plastic, which extends product shelf life by 10 percent and has tamper resistant resealable screw on caps.


Ø Tetrapak is experimenting with an innovative "Tetrafino " packaging. This is expected to be cheaper but the shelf life offered would be maximum 45 days. The main advantage would be less cost and more volumes with more shelf like and further revenue generation.


APPENDIX


What is Aseptic packaging?


Aseptic packaging is the packaging of a product in germ free ingredient. The product to be packed should be aseptically processed. There is no point in trying to protect a product from external contamination if it already consists of spoilage causing organisms.


What is aseptic processing?


Aseptic processing involves, heating the product rapidly to a temperature of 137-140 degrees centigrade, holding it at that temperature for a few seconds and quickly cooling down to room temperature. This kills spoilage causing bacteria without affecting the taste or nutrients in the product. The entire process takes place in a closed, pre-sterilized system to prevent re-infection. To safe guard the high microbiological quality imparted by the process, the aseptically processed milk is conveyed to the packaging machine in a closed, pre-sterilized system and metered aseptically to packs, which are sterilized and formed inside the machine.


What is Tetra Pak packaging?


Tetra Pak is a brand name, which has come to imply the technology. This essentially consists of 6 layers of packaging. (See figure below)


1. Polyethylene: seals liquid in


2. Polyethylene adhesive layer: Gives extra strength


3. Aluminum: keeps flavor in and light, odors and oxygen out


4. Polyethylene: for adhesion


5. Paper board: gives rigidity and strength.


6. Polyethylene: keeps moisture and germs out.


Advantages of tetra packs:


1. Allow a larger shelf life with no additional preservatives.


2. Original taste and flavor of the juice is preserved


3. Can be stored and distributed without refrigeration


4. Tamper evident and hence rules out possibility of adulteration or contamination.


5. Makes it possible to transport the nutritional but perishable product across long distances.


6. Juices of even seasonal fruits can be made available to the consumer throughout the year.


Limitations of Tetra Packs:


1. Cost is high as compared to pouch packaging. One litre pouch pack would cost about Rs 3.50 whereas the same sized tetra pack would cost about Rs.5.50. (there are some arguments against this, to quote B.L.Venkateshwar general manager, Parle Agro "Though tetra packed fruit drinks are expensive upfront, once analyzed they give value for money, a 200 ml Frooti is priced at Rs 8 so is a 300ml fizzy soft drink. But the thirst quenching ability of the former is probably more. Not to forget that it has extra nutritional value attached to it"(source: THE ECONOMIC TIMES, 22/4/99)


2. The product cannot be seen by the eyes. (This is overcome by vivid designs on the pack.)


3. Tetra Pak market faces excessive duties and taxation. May be because of this the Tetra Pak market is growing at only 10-12% when the bottled beverage market is growing at a rate of 25%/annum.


What is canning?


It is the filling of the fruit juice or any product in a can, hermetically sealing it and then heating up to 125 degrees Celsius for approximately 20 minutes. This process eliminates any microbes but adversely affects the flavor and texture of the product. An alternative solution was found in aseptic packaging, but until recently, traditional aseptic packaging using thin-walled metal cans have been considered impossible.


Now Beverage presterilization has emerged to overcome the limitation of canning. Here instead of sterilizing the product inside a can, the beverage is pre sterilized for just a few seconds at 140 degrees Celsius before filling the cans aseptically.


Advantages of canning:


Provides better opportunities for improving the products image.


Makes product suitable for vending machines.


Environment friendly. (The beverage can is easy to recycle)


Limitations of canning:


This is suitable only for carbonated beverages. (Carbonated beverages produce their own pressure, which supports the walls. Unpressurized don't do this and the can feels floppy).


The solution came as introducing an extra stage into the process which is, placing a drop of sterile liquid nitrogen placed on top of the product before the can is sealed. When the liquid nitrogen warms up it evaporates, pushes oxygen out of the headspace and pressurizes the can.


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