Andhina Dian Adhyanti Daniella Arenander Emir Isidan Fernanda Schmid
Economic Environment• 2008 recession:
• Great impact until 2010
• Reduced consumption of healthy and organic products:
• More expensive
• “Luxury goods” rather than necessities.
• Premium fruit juice market: growth of 34.64% to $346.5 million (2012)*
• Trends:
• Health Awareness
• Balanced Diet
• Organic / All-Natural
• No sugar added
• Added benefits
• 1 in 4 adult American are LOHAS (Lifestyles of Health and Sustainability) consumers
http://www.factsfiguresfuture.com/issues/october-2012/super-premiums-have-sales-juice.html
Company
• Family-run company
• Two years in the market
• Fruit juice with fiber
• Four flavors:
• Peach Mango
• Concord Grape
• Blueberry Açaí
• Pome Blue Cram
Target Market
• Demographic:• Age range: 25-45• Gender: Female / Male• Middle-upper Classes (>60k
USD year)
• Psychographic:
• Independent
• Social
• Cool & trend-setting
• Health-conscious
• Open to trying new products
• Able and willing to spend money on healthier foods
• Practice Sports
• Work
• On the search for convenience
• Impulse Purchase
• On-the-go snacking
• Geographic:
• USA Market
• Focus:
• CA, WA, CO, NY, IL, MA, FL
• Market Size:
• US Population: 317MM
• > 60k USD/year: 37.5MM
• LOHAS (25%): 9.4MM
Consumer Personas
Liz is a 28-year-old production assistant, lives in Los Angeles. Practices Pilates 2x/week. Checks on all nutrition facts before buying food.
Robert is a 38-year-old chef & restaurant owner in NY. Needs Fiber because his diet isn’t healthy. Likes running in Central Park.
Carol is a 42-year-old mother of two teenagers in Orange County. Wants to keep and shape and be an example for her kids.
Number of Flavors Sizes Products Benefits Kcal USD
Nak
ed
Pep
siC
o 16 Smoothies (14 Fruit, 2 Vegetable),6 Juices4 Coconut Waters
15,2324864
Juices, Smoothies & Coconut Water
Protein, Vitamins
420 3,99
Od
wal
la
Co
ca-
Co
la
8 Juices, 29 Smoothies (4 fruit, 3 Vegetable, 10 Protein, 3 Kids, 3 Refreshment, 6 Superfood).
12 32
Juices, Smoothies &Cereal Bar
Protein, Vitamins
350 2,49
Bo
lth
ou
se
Cam
pbell’s 13 Juices
13 Smoothies (2 Breakfast / 4 Protein)4 Coffee
15,232
Juices, Smoothies, Coffee drinks,Dressings, Carrots.
Protein, Vitamins, Fiber (2 items)
420 2,99
Evo
luti
on
Fr
esh
Star
bu
cks 8 Fruit Juice,
4 Vegetable Juices,5 Smoothies (1 Protein)5 Hydrate
15,232
Juices, Smoothies, Cereal Bar, Nuts
Protein 280 4,99
Po
m
Pom
8 Juice (1 Lite), 3 Tea 15,232
Juices, Tea, Fresh Fruit, Pills, Juice Concentrate
Anti-oxidants(natural on fruit)
280 3,99
Juic
eo
lo
gy
Dak
len 4 Juices 15,2 Juices Fiber 180 2,99
Competition
Suppliers’ Power
Few suppliers
Expensive machinery
Barriers to Entry
Fast growth, good margins – very interesting market!!!
3rd-party production & distribution
Relatively easy to copy
Establish new brand
Substitutes
Fresh pasteurized Juices / Smoothies
Other sources of fiber (whole grain bread, granola bars, Activia)
Buyers Power
High Cost of Product Introduction
High promotional Level
Payment Dates
Rivalry
Biggest beverage companies in the world
High level of investment
Alternative ways to conquer market (ex: Odwalla
smaller size & price-point)
Porter’s 5 Forces
ProductProduct Objective:
• Sell 2.2 million bottles in 2014.
Product Strategy:
• Develop a line of healthy premium juices with fibers.
Product Tactics:
• Launch a Green flavor
• Re-launch Grape flavor with Plum and Blackberry
• Launch family-size bottle (32oz)
• Develop new visual identity and packaging
• Increase appetite appeal
• Develop Unique Selling Proposition
Juiceology - The Original Fiber Juice
A refreshingly pure and nutritious blend of
premium juices and whole grain extracts.
• Whole grains: heart health, healthy
weight
• Only 98 calories per serving and NO
SUGAR ADDED
• ZERO fat, Cholesterol FREE, and Vegan -
Wheat gluten-free
• All grains, fibers and vitamins come
from fresh raw foods
Product
PricePrice objective:
• Achieve a contribution margin of $711.096 (32% of net sales) in 2014.
Price strategy:
• Skimming:
• Increase the price to increase brand value perception
• Differentiate from competitors (no added value from fiber)
Price Tactics:
• Increase the price from $2,99 to $3,49
• Establish $6,00 Price for 30oz bottle
• Must continue affordable and below market leader (Naked Smoothies)
• Increase promotional level (BOGO, $1OFF Coupon)
Price
Bolthouse (2,99)
Sambazon (2,99)
KonaRed (2,99)
Kombucha (2,78)Aloe King (1,99)
Simple Orange (1,59)
Tropicana (1,69)
Evolution Fresh (4,99)
Naked (3,99)
Pom (3,99)
Juiceology (3,49)
Odwalla (2,99 – 12ox)
“Me-to
o” b
ran
ds
Low
differen
tiatio
nH
igh
Va
lue
Bra
nd
s
Place
Place objectives: • We want to be in 6 different store chains (Kroger, Walgreens, CVS
pharmacy, Safeway, Whole Foods, 7-eleven) with a target of 1644 stores.
Place strategy:• Work with 5 different distributors (one for each chain) and 20 jobbers (only
in CA) for 7-Eleven and smaller independent stores/fitness centers.• We are looking for mass stores (Krogers, Safeway) to generate volume and
visibility stores (Whole Foods, fitness centers) to increase brand awareness.
Place tactics:• Pay higher sales commission than other juice brands• Create Sales Incentives & Rewards / Recognition• Regular meetings / trainings with distributors sales teams• POP material: shelf talkers.
Place
Juiceology
Broker (commissioned)
Retailer Chains
Consumers
Jobber
Independent Retailers & 7-Eleven
Consumers
Promotion
Promotion objective:
• Create awareness through a target number of exposures of 390MM
Promotion strategy:
• Focus on publicity and Product Trial.
Promotion tactics:
• Regular press releases with nutritionist backup (product guarantee)
• Social media: viral videos, Facebook fanpage, Instagram, Twitter
• Create new brand website
• Advertisement: health & lifestyle magazine
• Product Trial: in-store, marathons, parks, fitness centers
• Coupons, Buy-1-get-1 new flavor free
Promotion
2014 J F M A M J J A S O N D
Demand
Trade Shows X X X X
Sales Incentives X X X X X
Press Releases X X X X X X X X X X X X
Viral Videos X X
Facebook / Instagram Contests X X X X X
Magazine Ads X X X
In-store Product Trial X X X X
Fitness Center Product Trial X X X X X
Parks Product Trial X X X X
Coupons X X X X X
Marathons X X X X X
BOGO X X X X
Breakeven Point
0
500000
1000000
1500000
2000000
2500000
0
50
00
0
10
00
00
15
00
00
20
00
00
25
00
00
30
00
00
35
00
00
40
00
00
45
00
00
50
00
00
55
00
00
60
00
00
65
00
00
70
00
00
75
00
00
80
00
00
USD
Volume
Breakeven
Profit
VariableCostsFixedCosts
SWOT
STRENGHTS:
First movers on whole grains
Flavors developed in-house
Fast decision-taking
WEAKNESSES:
New brand: low brand awareness
New concept: Juice + Fiber difficult to explain)
Limited resources (Money & People)
OPPORTUNITIES:
Development of new segment (Juice with fiber)
Consumers looking for new products
Health trend on the rise
Whole grains in high demand
THREATS:
Established brands copying the fiber concept
Smaller brands being bought by big companies with high advertisement and
marketing budgets