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Tropicana marketing

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Solene Fraioli

on 11 February 2013

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Transcript of Tropicana marketing

Christian Busch, Solène Fraioli, Alexis Pranzer, Jonas Richter
Tropicana belongs to PepsiCo

2nd largest food & beverage company in the world

Topicana is distributed in 63 countries (US & Canada, Latin America, Asia, Europe)  world’s leading producer of branded orange juices Production of not-from-concentrate juice, using only oranges from Florida
First glass bottles shipped to France / Europe Characteristics of the brand
Introduction of flash pasteurization method, extending the juice's shelf life to 3 months while maintaining its flavor
Founded in Bradenton, Florida by Italian immigrant Anthony T. Rossi Health benefits advertised with focus on breakfast beverage – Freshness is the guiding principle
(“Pure Premium” has 16 fresh-picked oranges squeezed into each 59-ounce container) Strategic Planning Global success factors Being the producer of the freshest juices to Poland and become
a high-price premium brand there

Long-term: Covering the market with the entire range of juices which is typical for Europe Northern American market: 54 varieties
Reduced variety in Europe, e.g. in Belgium 23 tastes (Pure Premium, Essentials, Limited Edition)
No presence in Central & Eastern Europe so far „From the grove to the glass“
Strategic Objectives „Tropicana uses the best in fruit to give you great-tasting, nutritous juice and juice-based beverages.“ Corporate Mission Growth Strategy - Ansoff-Matrix Entering the Polish market with existing product „Pure Premium“ because Not-from-concentrate juice has highest value growth (45.5% from 2006-2011) Competitive Strategy –
Porter‘s Generic Strategies Emphasis on the freshness as benefit of a premium product (niche), because
“trends driving new product developments, health and wellness is likely to be key” [Euromonitor] 1947 1954 1966 Since 1998 Marketing analysis SWOT The polish fruit/vegetable juice market - Facts In 2011, sales of fruit/vegetable juice were effectively static, amounting to PLN3.6 billion
Market is approaching saturation
Not from concentrate 100% juice sees the fastest off-trade value growth at 6% in 2011
Unit prices increase by 5% in 2011 Infrastructural Environment Independent small grocers are the leading distribution channel Discounters are expanding Unpackaged juice is not popular Consumer Behaviour Increasingly price sensitive

Turning attention towards products that claim to provide health benefits

Orange and apple flavours are the most popular choices within 100% juice

Poles tend to choose well-known brands

Conservative in choice Prospects & Conclusion Naturalness, polarisation, health and wellness will be the key drivers
Ageing population and rising health awareness
Highly volatile economic environment


The french market is one step ahead of the polish fruit/vegetable juice market. Pest Market segmentation Market
targeting Market
positioning A product of quality, effective, made of natural products, for those who care about wellness Positive identification Middle and upper income : due to higher prices

Part of urban living : new consumer trends are observed only in an urban setting

Lifestyle : from young urban adults with a dynamic rhythm of life to urban families with children

The advantage sought: concerns about well-being around high quality products Product and brand strategy Fresh
Natural
100% Orange
Healthy
Vitamins
Original
Pure Premium Pricing strategies & Programs
(Blue Ocean) Focus differentiation strategy Higher perceived added value
combined with a higher price Distribution strategy & channels Easy access to distribution channel thanks to: Strong commerical relationships with: Marketing communications strategy Sales promotion in supermarkets Variables used for our segmentation : http://www.tropicana.fr/#/carrouselproduit Tropicana global segmentation : differentiated marketing Advertising in urban lifestyle and health magazines Corporate Social Responsability add efficiencies to their distribution

manage they carbon footprint

use renewable energy

constantly working to reduce their use or non-renewable energy Customer
relationship marketing P E S T olitical : economic : ocial : echnologic : Uncertainity in labour market, Expenditure cuts, tax hikes Volatile currencies, Unstable raw material supplies, Financial crisis Increasingly price sensitivity, Ageing population, Rising health awareness Strenghts Weaknesses Opportunities Threats Corporate design : like everywhere –
the „old design“ was perceived better TV commercials The French fruit/vegetable juice market :
An example of a successful implementation of the brand French market in a nutshell Bibliography tropicana.com
tropicana.fr
pepsico.com
FRUIT/VEGETABLE JUICE IN FRANCE Euromonitor International July 2012
FRUIT/VEGETABLE JUICE IN FRANCE Euromonitor International August 2012
pepsicopoland.com Green technology Packaging Packaging shows the brand values

Simple but fancy

The packaging is attractive and shows the authenticity of the product Sponsoring of sports events and of cultural events... Sponsoring of health
information days in schools The health and wellness trend = driving new product and flavour development (smoothies, vegetable smoothie, stevia, superfruit flavours…)

Not from concentrate 100% juice saw the most dynamic total volume and value sales growth of 2% and 6%, respectively, in 2011. Driven by the strong performance of smoothies and chilled 100% juice.

Many brand owners responded to increasing consumer price-sensitivity by downsizing their pack sizes + decrease in retail price. (ex : Innocent, Tropicana)

Increasing competition from private label products : leading brands use promotional offers to boost demand Leader on the market for chilled juices

Effective distribution, high visibility

Good reputation and excellent location

Successfully surfing on the  health and wellness trend Declining market share on Tropicana chilled juices

Decreasing customer loyalty

Absence of Tropicana in some growing niches Trends : wealth and wellness, encouraged by the State (fight against obesity)

2012 : Tax on sugary drinks and artificially sweetened soft drinks(not on 100% juice) 100% juice expected to see the most dynamic total volume and value sales growth

Strong growth of the market of smoothies and fruits & vegetables Juice market is stable at maturity

Economic crisis causes a decrease in purchasing power, increasing price sensitivity

Strong competition from Private Label (low prices generating strong sales volumes) Tropicana’s position in the French market Porter 5 forces The classic juice market is highly competitive…

Unless you have a distinct (differentiation strategy) product from the competition Low Supplier concentration

Buyers bargain in power is low due to Pepsico size

Threat of substitutes are high

High entry/exit Barriers In January 2009 Tropicana had to learn a lesson by
changing the package design due to the lack of Social CRM

In May 2009 launch of the official facebook page, and in 2010 launch of the official facebook-page of Tropicana France

Existence of a Club Tropicana (news, playlists, advice...) Facebook-page for Poland
Telephone & eMail-support as it is in other countries Leader on the market for chilled juices
Effective distribution (high visibility and presence in the shelfs)
Good reputation and excellent location with higher CSP representing the bulk of sales Easy Substituion
No Brand Image/Awareness in Poland
Cannibalization (Toma) Juice market is reaching maturity
Economic crisis causes a decrease in purchasing power
Strong competition and dangerous from Private Labels
Highly volatile economic environment
Domination of domestic companies
Increasing price sensitivity Change in consumers’ expectations: demand orientation towards more health and pleasure

Strong growth of the market of not from concentrate 100% juice

Ageing population and rising health awareness
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