For introducing juice in any new market following information is required to be considered:
Countries selected for testing the new product and reasons behind them
Size of fruit juice market
Juice flavors currently existing in market and their respective share
Major brands operating in considered markets
What are the new product (juice) launch in last 2 years
What is key distribution of channel
What is the minimum budget available
These would provide relevant information about the prospective market. This will facilitate the information collection about overall trends regarding the drinking habits, likings and disliking etc in the respective countries. With this information the research plan would be devised based on current position in the market. For instance, with information regarding major brands the company will be able to get insights regarding the type of names considered catchier in the respective markets and flavors bringing in greatest revenue. This in turn will provide some information about expected acceptability of cranberry juice.
The team has to focus on the variety of things. Along with the information requirements mentioned above, at the initial stage the team shall exploit the information regarding the market characteristics of juice. For example, India is still in traditional stage and local brands are competing against unpacked brands, whereas Mexico is in modern state and international brands are taking up share and Japan is step ahead from these two countries where market is saturated and top line growth is limited (Euromonitor, 3).
At the second stage, consumer acceptance of cranberry fruit shall be tested and also surveys regarding the packaging, title etc shall be conducted. This will facilitate the company in taking important decisions regarding the title and packaging of the product.
Research method shall involve both primary and secondary sources of information. For secondary source extensive research about the fruit and vegetable juices in different countries are provided by agencies like Euromonitor etc.
Primary research shall also be conducted to get product specific idea of customers with both written and activity based survey. Research Plan shall consider option in following categories:
Packaging (preferred packaging range in different countries) (Haffner)
Advertisement concepts can be understood from both primary and secondary sources. For instance, orange juice labels and advertisements present that juice has been made from freshly grown oranges and this increases its sales (Thomas). Concepts that sell benefits sell more than product.
Question # 1:
Ocean Spray has developed Boysenberry juice with high dietary values and firm is in order to introduce it in US market has to make a decision about benefits to be sold in message. Ocean Spray has to make a decision about the selection from the available two categories. Both categories have their respective markets and characteristics and selection of either of two will change entire plan and hence, Ocean Spray has to identify that what differentiating factor will more appeal to the larger target audience.
STRENGTHS: Ocean Spray quality is better than private labels and has market leader position in juice drinks. It has high brand awareness (Core Communications, 2). Apart from this the boysenberry juice has high quantity of Vitamins C and K, manganese, and dietary fiber. Also the juice has low amount of saturated fat. Hence it can be positioned as good option for losing weight and maintaining good health.
WEAKNESSES: Its lack of focus on the freshness concept that is the best selling benefit of fresh juices (Core Communications, 2).
OPPORTUNITIES: Benefit of heritage still has potential to exploit that can bring benefit of emotional values attachment that lacks in other private label. There is increase in the demand of the products and juices which are healthy (Core Communications, 3-4).
THREATS: Increasing competition from private labels and increase in their shelf space. Improving and growing juice sector also results in increasing the competition.
In order to come up with more thorough and extensive SWOT analysis there should be information about acceptability of customers for new innovations at premium price. Along with this there should be information regarding the customers’ preferences and demands. Also the information regarding the market share of the competitors and competition level in different categories will be beneficial for this analysis. All of this information will allow the company to come up with better analysis and hence the product will be launched with better positioning.
In order to get insights regarding the consumers’ preferences it will be beneficial to conduct primary and secondary research. This research will gather information from the target customers along with the distributors and store representatives. It will be beneficial to include the distributors and store representatives in the research as they will be able to give information regarding the trends in the market and the shelf space of different competitors in both categories. It will also be helpful to evaluate the characteristics of target audience of the product in two categories specially characterizing the price sensitivity. In order to come up with effective positioning strategy it is essential to first understand and comprehend the needs and preferences of the customers.
Core Communications. Ocean Spray: The Cranberry Source. n.d. Web. 25 Sep. 2012. <http://oceanspray.corecomms.org/PDFs/oceansprayreport[screen].pdf>
Euromonitor. From Traditional to Postmodern: the evolution of soft drink drinking habits. Aug. 2012. Web. 26 Sep. 2012. <http://euromonitor.typepad.com/files/the-evolution-of-soft-drink-drinking-habits.pdf>
Haffner, Rick. “Innovation in Liquid Concentrates in the US.” Euromonitor International. 18 Sep. 2012. Web. 26 Sep. 2012. <http://blog.euromonitor.com/2012/09/innovation-in-liquid-concentrates-in-the-us.html>
Thomas, Pat. Behind the Label: orange juice. 15 Jul. 2009. Web. 25 Sep. 2012. <http://yalepress.typepad.com/squeezed/2009/07/behind-the-label-orange-juice.html>