Business Report on Ocean Sprays Juice Brand
Essay by aazra nahas • August 8, 2019 • Case Study • 2,531 Words (11 Pages) • 1,069 Views
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Table of Contents
Executive Summary 2
Introduction 2
Company Summary 2
Mission 2
Vision 2
About the company 2
Industry overview 3
SWOT Analysis 4
Strength 4
Weakness 4
Opportunities 4
Threats 4
Marketing 5
Branding 5
Market Segmentation 5
Competition 7
Positioning 7
New products 7
Marketing Mix 8
Product 8
Pricing 8
Placement 8
Promotion 8
Recommendation 9
Conclusion 9
Reference 10
Executive Summary
Ocean spray is an agricultural cooperative which consists of growers of cranberries and grapefruits and has around 700 growers currently. They have passed the billion-dollar mark in the sales of cranberry juices and is planning to expand their market to other countries to cater to a larger market and also increase their product line by expanding the variety of flavors of juices. They have a well-established market in Australia and has 90 percent market share of cranberry juices.
Ocean spray juices are planning to expand their product lines which will include three new varieties of juices and juice blends namely raspberry juice, blueberry juice and a berry blend which consists of cranberry and blueberry. The expansion of the product lines will be funded by the owners and the internally generated cash flows. The potential target market has been identified which mostly consists of the current market and due to the increase in product line there is a potential for a wider market. This plan will help generate profits in the upcoming years
Introduction
Ocean spray is an agricultural cooperative formed in 1930 and it consists of growers of cranberries and grape fruits and currently has around 700 growers all around the world. The cooperative employs more than 2000 people and has sales of 1.2 billion. Their products mainly consist of cranberry juices and cranberry based products. Ocean sprays has had a number of innovations which includes first juice blends and first juice boxes. It was initially started by three cranberry growers who wanted to expand their market in cranberries.
Company Summary
Mission
The mission of Oceans spray juices is to connect farmers to families for a better life. They are committed to a healthier planet full of healthier people.
Vision
Ocean spray juices are committed to sustainably grow 100 percent of their fruit by 2020.
About the company
The Ocean spray commenced in 1930 when 3 independent cranberry growers namely Marcus Urann, John Makepeace and Elizabeth Lee worked together to create innovative products with the fruit they loved. Later the company flourished and added facilities, plants and new growers. By the nineties the ocean spray became a billion-dollar company and changed the face of cranberry juices forever. The various products they sell currently are various varieties of cranberries such as classic cranberry, Pink cranberry, 100% juice cranberry and diet cranberry juice.[1]
Industry overview
The international juice market currently has had a market change as consumers are more focused on healthy changes such as nutritional benefits and less sugar. The industry is emerging with new players which focus on varied taste, flavors and preferences as per region. Another trend that can be seen is the variety of blend juices that are in the market. In order to give competition several competitors are trying to capture the mass as well as premium consumers in order to capture the market. It can also be noticed that juices with antioxidants and acai berries are expected to increase popularity by 2021. There are also growth opportunities for diet juices and juices with no sweeteners. The leading players in the global markets are Welch, Del Monte, PepsiCo, coco-cola co, Dr pepper Snapple group inc, Nestle and Citrus world.
However, in the Australian market the juice market is different from international markets. There is extreme competition between the local and international fruit juice manufacturers. Goldstein research analyst has forecasted that the fruit juice market is expected to reach USD 1.3 billion by 2025. The key factors that are expected to increase the growth of Australian fruit juice market are rising health concerns, huge packaging industry, research activities in the beverages industry and rising farming of fruits.
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SWOT Analysis
Strength
- Ocean spray juices has attained 90 percent share in Australia for the cranberry juice segment
- Cranberry juice is unique in terms of health benefits as it has abundance of vitamin C and antioxidants which is helpful in maintaining a healthy urinary tract.
- The cooperative of growers of Ocean sprays controls around three fourths of the worlds cranberry supply and has thus created a high barrier to enter into the market.
Weakness
- The range of juices are limited as currently only cranberry juice is being sold and the next step is to launch 3 more varieties. Therefore, Oceans spray has not ventured into juices such as mango, orange, pineapple etc.
- They have not ventured into other local shops and have only provided their juices to supermarkets.
Opportunities
- Premium beverages featuring exotic fruits like cranberries and blueberries are expected to become more popular.
- Growth of juices with antioxidants will strengthen as consumers focus mostly on health benefits and quality.
Threats
- There is an increased competition between local fresh juice bars and international fruit juice manufacturers.
- Slow growth in household disposable income has led consumers to choose cheaper options.
- The intake of soft drinks has increased among the youth due to decreased prices and hence they choose soft drinks over fruit juices.
Marketing
Branding
When Ocean sprays was introduced in the market it was totally unknown hence brand awareness was essential (Elliott, 1991). The big brands such as golden circle and berri had been in the market for more than 40 years and yet Oceans spray established a niche market for cranberry juices in Australia. Brand awareness helped Ocean spray to target its consumers. The health benefits of the drink were publicized and from the below chart it is understood that cranberries are extremely high in antioxidants as compared to many other berries.
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