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Juice Guys Case Study Analysis Of A Business

Juice Guys Case Study Analysis

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Juice Guys™ In the summer of 1998, Nantucket Nectar created a subsidiary of their brand called Juice Guys. This new product was comprised of fresh juice and fruit smoothie drinks that were taking over the West Coast. Within three-and-a-half months, Juice Guys had sold a total of 175,000 items ranging from smoothies, yogurts, sorbets, Nantucket Nectar drinks and fresh squeezed juices. Juice Guys’ revenue went up to 91% and they made a profit of $227,000 in sales. Noticing the tremendous success within the industry in such a short time, Nantucket Nectar and Juice Guys decided to expand this new juice retail concept into the East Coast. Their primary focus within the East Coast was expansion into the Boston market. Although this…show more content…

The purpose of these interviews were to enable the founders to gain a perspective of what the consumer’s needs, wants, likes and dislikes concerning a juice store were. This was beneficial to the Nantucket Nectars employees because it allowed them to communicate with their potential future customers, it enabled them to get their brand name and product out in the new market and it also created potential successful long-term growths for future locations and geographical expansions. The marketing research that took place resulted in the following findings about the Juice Guys retail concept such as: the atmosphere should smell fruity, warm and inviting, and the employees should be fun, young and chatty. In addition, it proved that the Beacon Hill District should address the issue of year round business by: doing more promotions in the winter months, serve seasonal beverages such as: hot apple cider, pumpkin smoothies and cinnamon smoothies as well as serving other products such as: t-shirts, hats, vitamins, power bars and newspapers. I feel that the research findings were very beneficial and could have been very influential in helping out with the challenges that the Juice Guys had to face in trying to implement their product into a new and diverse marketplace.
My recommendations would be to take the information from the research and adhere to the customer’s needs and

Tags : Marketing, Tropicana, PepsiCo, Nielsen, ITC, Dabur, BE This Week, B Natural

In 2014, the gap between the top two packaged juice brands in India was over 14%. An aggressive PepsiCo, with 38.3% value market share for Tropicana in March, was expected to close in on homegrown market leader Real over the next few years.

In three years, the second largest player, Tropicana, appears to be running out of juice, if market share figures from industry sources are anything to go by.

While in March 2017, PepsiCo’s flagship juice had slipped to 28.3% in value market share, in April-June quarter it continued its fall to 25.6%, according to three industry officials quoting Nielsen MAT value share data. In contrast, Dabur’s Real maintained its lead: 56.6% in March 2017 and 53.4% in April-June quarter.

The fall for Tropicana is for real. Though the MNC brand had some good years, marketing experts reckon PepsiCo has lost track in establishing its hard-worked-out credentials that placed Tropicana closest to fruit in the `2,000 crore packaged juices market in India.

“Recent years have seen a degree of brand-neglect for sure,” says brand strategist Harish Bijoor. In contrast, Dabur has taken Real into the gut of the Indian market, penetrating non-traditional markets as well. “The Real brand has really taken the high-ground of the real one closest-to-fruit,” he avers, adding that for PepsiCo, maintaining a consistent laser-sharp focus on categories as wide as colas, juices and snacks has been taking a toll. Each of these needs focussed brand competence and deep investments, which seem to be missing in recent years, and that’s a telling sign.

PepsiCo, for its part, contends that it has been witnessing strong double-digit growth for Tropicana.

“As per policy, we don’t comment on country-specific market share or analyst reports,” said a PepsiCo India spokesperson. The value market share data that indicates a decline is incorrect and does not corroborate with company’s estimates, the spokesperson added in an email response. The brand has limited its offerings in the commoditized, highly discounted and lower juice content space, points out the spokesperson, declining to give any internal market share numbers.

However, food and beverage experts believe its positioning is a clear reason for Tropicana slipping down the ranks.
“It is very breakfast centric whereas Real enjoys an all-day drink positioning with a wide range of variants,” says Jaspal Sabharwal, a food and private equity industry veteran. Real’s positioning advantage, he lets on, is at its peak because India’s 440 million millennials love Ayurvedic and natural products. Over 390 million Gen-Z have seen more of juice and green tea around them than soft drinks.

“Real derives best residual advantage out of this demographic match,” adds Sabharwal, pointing to another advantage the local giant enjoys. Real’s cost structure allows it to be more aggressive than Tropicana because it has manufacturing plants in tax-incentive zones. “Real uses this cost leverage to its advantage by pushing 200 ml packs in institutional, hotels and airlines segment,” he says.

Dabur attributes its success to constant innovation with new variants.

“Dabur has the largest range with 25 different variants of Real and Real Activ,” says marketing head for juices and beverages, Mayank Kumar, who declines commenting specifically on market share numbers. The brand, he points out, has invested in sales infrastructure to significantly enhance its reach into new geographies and town classes with a strengthened portfolio, especially suited for such markets.

Conceding competition has intensified in the Juices Nectars and Still Drinks (JNSD) market with the entry of a number of regional brands and players, Kumar asserts that Dabur has managed to stay relevant by enhancing its offerings on health, taste and nutrition. “Dabur is the pioneer in the packaged juice market in India and enjoys a dominant share,” he says.

What has added to the woes of Tropicana is the almost non-existent Western-style breakfast culture in the country.

“India is not a breakfast country,” says Ashita Aggarwal, head of marketing at SP Jain Institute of Management and Research. The reason hobbled Kellogg’s and is now affecting Tropicana. Most of India has early brunch: parantha in the north, idli in the south and poha in the west. Cereals and juices for breakfast is a very urban, upper-class phenomenon. She believes this may explain why McDonald’s has not been able to crack breakfast in India in spite of pushing it aggressively. New entrants such as Paper Boat and ITC’s B Natural have only added to the woes of Tropicana and squeezed its share, she adds.

PepsiCo contends that it’s focusing on creating differentiated offerings. Take, for instance, Tropicana Essentials, a functional juice platform featuring 100% juice with no added sugar, which targets nutrient deficiencies in India. “The product line is seeing a strong response from consumers in the premium, core nutrition segment,” the spokesperson says.

But will it be enough to reclaim lost ground? “Perhaps not,” says Aggarwal. “PepsiCo would need to do a lot more to juice up the brand.” Given Tropicana Essentials just launched this summer, it has a long slog before a large number of consumers start actively seeking it out. Looks like the question PepsiCo needs to be asking is ‘Oh Yes, Kabhi?’.