2.0 Situation Analysis
In the United States, being more health conscious is becoming more popular. As a result, carbonated drinks are becoming less admired, and fruit drinks are growing in demand. Therefore, the market for low-carb drinks and fruit drinks is expanding. There are many competitors in the fruit drink industry. NAA Bottling Company has critical issues that they face, for example, they need to make sure they have a secure retailer, and they need to ensure they have adequate shelf space in the stores. NAA Bottling needs to differentiate themselves from their competitors’ products, and they need to decide whether they want to associate their fruit drink line with their carbonated beverage line. NAA Bottling Company needs
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Carbonated beverages have been rising in prices, and there has been talk about adding taxes to sodas. The economy is also in troubling times, and people might not be willing to pay for the extras.
2.3 Competition
Some of NAA’s competitors are Minute Maid, Tropicana, and Snapple. Minute Maid which is owned by Coca Cola is the world’s largest marketer of fruit juices and drinks. Minute Maid and other Coca-Cola juices are the leader in the U.S. fruit juices & energy drinks market but Tropicana and other Pepsi juices are close behind. Also Minute Maid is far ahead of Tropicana in the international market. These companies are branching out their brand to many other countries and expansion has helped increase the name visibility globally. This allows them to target every market and ethnicity out there.
Minute Maid launched its orange juice drink to India as part of its strategy to extend its leadership in the juice drink industry in January 2007. Also in 2007, they announced a new line of 100 % Orange Juice products with health benefits from added nutrients and functional ingredients. The Minute Maid Enhanced Juice line includes new Minute Maid Multi-Vitamin, which contains 16 essential vitamins and minerals and Minute Maid Active. In 2010, Minute Maid Enhanced launched a new line of single serve products so you can have it on the go. In 2010, Minute Maid changed the design of
Smashburger is a rapidly expanding burger restaurant concept; they have announced a summary of its 2011 accomplishments and their marketing and expansion plans for 2012. Opening their first location in 2007 and growing rapidly ever since, now in 2011 Smashburger had yet another successful year of growth and consumer acceptance. Smashburger is quickly gaining national recognition for its juicy handmade burgers that are smashed fresh and served delicious, along with its localized recipes that celebrate regional taste profiles in
Essentially, the soft-drink industry is largest beverage industry. It gross millions a year, and has different distribution channels. For example, these soft-drinks are sold in supermarket, Vending Machines, Gas stations, etc. The cost is incomparable to the amount of consumer we currently have in America. If Americans consumer on average 50 gallons in a year. The cost of 2.00 is not missed by the average person. With that said, there is a least likely chance that a person would attempt to duplicate the process at home. The soda making process is too time consuming, and inconvenient when a person can simply can go to the store to purchase. Consumers can either be very loyal to the brand or fickle. Influx in prices can make consumers switch very quickly. However, there are typically incentives associated with loyalty. There are giveaways and contest that entices the customers to keep purchasing. For example, Snapple does this with a real fact on every lid. I personally know people that will buy the product just to read the facts.
Consider the ski resort satisfaction data we used in class (“satisfaction.sav” in Week 7 folder). This is data based on a survey of 500 users of a ski resort. In class we did part of the analysis. In this question you will be asked to redo some of the analysis and complete the rest. For part a), b) and c), write down your null and alternative hypotheses and then discuss the hypothesis testing results based on SPSS output. Please show your SPSS output for part a), b), and c).
Meijer Superstore, Speedway, and Walgreens are the locations used at the center of research to compare and contrast several brands of single serving-size, refrigerated, water and tea. During this exploration, the marketing mix; product, price, placement, and promotion were observed among the several brands. Coca-Cola will benefit from the research where unique observations emerged. These observations include the placement of flavoring drops to add to water, the availability of Vitamin Water in both the water and sport drink sections, and the price and placement of PepsiCo products vs. Coca-Cola products, which included both water and tea, in the Meijer Superstore.
The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) collectively hold about 70% of the US market which can making very hard for new entry to succeed in this industry. However, the decline in CSDs consumption has opened a great market for non-carbonated and health conscious drinks. So, LaMarquise intends to take advantage of this opportunity to develop its market of flavored syrups and fruits concentrate juices, also to note that there are very few competitors when it comes to flavored syrups in the U.S. The products are great refreshing drinks for adults and children and contain no preservatives or harmful chemicals. Furthermore, our marketing plans and strategies will offer an opportunity to succeed in this competitive market.
Using the product/market expansion grid shown in Figure 2, apply the growth opportunities available to managers in Starbucks Turkey.
Nantucket Nectars' numerous strengths have led to their success. They produce all natural products that have a great taste, have a very strong management team as well as a strong branding, guerilla marketing skills, possess the ability to exploit small, rapidly changing market opportunities, last good access to single-serve distribution in the New Age beverage market, and is the best vehicle for juice companies to expand into the juice cocktail category without risking their own brand equity. In addition, Nantucket Nectars' management team has the required knowledge and experience with the single-serve business and thus has the ability to add value to large player who wants to roll out new single-serve products.
It would only make sense that the company is paying attention to what their customers need, want, and think. If the company is up for it, they will create a loyal customer and a good sector in the marketplace in regards to their products.
Innovation is important to both distribution channels, but more important to the finished goods model since the juice category has seen a decrease on both volume and market share. At the same time the carbonated soft drinks market has grown in both volume and market share. In order to increase the volume sold in the juice aisle a brand extension should be developed. By adding more SKU’s and promoting to the eight to twelve year old group, sales
Gatorade has emerged as the global leader in sports nutrition beverages by continually managing their brand to signify high energy, athletic excellence combine with one of the most efficient new product development and introduced processes in the beverage industry. As a result of being able to consistently synchronize these many components of their business so well, Gatorade today holds a 75% market share in the sports nutrition market globally today. Gatorade is owned by PepsiCo, which has made it possible for the company to sell in 80 countries today. Gatorade relies heavily on the PepsiCo distribution and retail network globally. Gatorades' revolutionary approach to managing branding for beverages has served to increase the total market size for this product category globally (Huang, Sarigöllü, 2012). Despite the continued widespread adoption of Gatorade as a healthy energy drink, the company has encountered resistance to its brand and the ingredients used for creating the many variations of Gatorade energy drinks (Tallon, 2009). Despite these setbacks the Gatorade brand continues to experience exceptional growth and stability over time.
Jamba Juice is a smoothie retailer in the United States in the restaurant industry. Jamba Juice offers 100% fruit smoothie and juice with healthy snacks. This paper will explain the strategic issues faced by Jamba Juice, and the strategy used to be successful. Jamba Juice has maintained financial discipline, cost management, and improvements that are the reason sales are increasing. Jamba Juice strives to follow their mission and vision statement, and markets aggressively. Over the next five years, the market for smoothies is expected to increase by 10-15%. (Brixler, Brian) Consumers are seeking healthier food and beverage options for a meal. Smoothies offer a healthy option instead of drinking soda.
During the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing several new non-carbonated beverage brands. These included Minute Maid Juices to Go, PowerAde sports beverage, flavoured tea Nestea (in a joint venture with Nestle), Fruitopia fruit drink and Dasani water, among others. In 2001, Minute Maid division launched the Simply Orange brand of
The focused Corporation of the subject strategic proposal is PepsiCo Beverages North America. This company was originally founded in 1898 by a North Carolina druggist. PepsiCo Beverages North America (herein referred to as the ‘Company’) sells several brands of consumer beverages in the United States and Canada. The various beverage products span through carbonated soft drinks, juices, readymade teas, isotonic sports drinks, bottled water, and enhanced waters. Several established brands include Diet Pepsi, Mountain Dew, Gatorade, Tropicana products, Aquafina Water, Sierra Mist, Mug, Propel, Sobe, and Dole. Refer to the Competitor Analysis section for in depth product information and listings.