Green Ox

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In this report, we analyze the data presented in the “Green Ox” case, with a view to determining a marketing strategy for Palmer Jackson, Inc. The time is fall of 2003; the data presented is with reference to this, if not explicitly stated otherwise. All market research data has been provided by Marketing Studies, Inc. Other mentioned data has been taken from the case. Data from any other sources is explicitly identified.
Attribute/Benefit Analysis
As per consumer research, the following is the list of perceived key attributes and benefits of sports drinks, vegetable juices and antioxidant pills:
Attributes Benefits Remarks
Sports drinks -Contains electrolytes.
-Comes in many flavors.
-Not carbonated. Easy to ingest
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Rather, the intent is to recommend that the positioning for the product focus on the attributes- maturity, awareness, high-income and ideals-orientation.
The fourth category (have children) is favorable to Green Ox. However, families, especially high-income ones, show a strong tendency to favor club stores for their purchases. As per the information given in the case, such stores do not stock beverage brands without an established sales track record. Therefore, we will not consider the third category.
Note: An educated guess can be made that there is an overlap between the 3 target segments. This is a positive from the point of view that we can focus our attention on a niche segment that is affluent, well-informed, health conscious and highly likely to remain loyal.
Retailer Pricing & Break-even Analysis
To perform a break-even analysis, we have made the following assumptions: (a) retail margin= 60%, (b) the additional fixed cost of production per flavor, including advertising, bottling run and sundries, is $10 million and this is assumed to be an annual cost, except the bottling run, (c) a conservative estimate of percentage share of market figure is derived by multiplying the market segment percentages, as well as the age segment percentage for the category > 40 yrs. The percentage = 74% x 62% x 85% x 40% = 16%. We first determine the retail
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