The threat of entry Due to Innocent having a strong position, it makes it harder to gain entry into the smoothie market. Nevertheless, Vegesentials came into the market only 2 years ago but have achieved a strong distribution network at a number of stores such as Waitrose, Ocado, Tesco, Whole Food Market, Holland & Barretts etc. Vegesentials was able to gain entry into the market because they are known as a ‘Market Nicher’ i.e. they offer products that are focused to meet specific demand of customers which are not met by mainstream products. Vegesentials use cold pressed/high pressure product to make their raw 50/50 fruits and vegetables. These raw drinks are positioned as more nutritious than standard products due to having been-heat processed. …show more content…
(Tutor2u, 2015) According to Mintel 2014, 1 in 4 buyers (23%) only buy branded fruit juices/smoothies when they are on promotion, demonstrating the cost driven behavior of consumers when buying fruit juice, juice drinks and smoothies. For this reason, fruit juices/smoothies are constantly on promotion. (Gibbons, 2012) Yet, again only 29% of buyers only purchase these drinks because they can afford it. Especially with wages rising faster than inflation for most of 2015, this will benefit the market, as real consumer income is strengthening, as customers are can afford it are also willing to make purchases’; this is also expected to have greater impact in the future. The rising number of UK children from 0-14 years is set to rise by 6.4% over 2015-20, higher than the 3.7% increase predicted for the whole UK population. This rise should benefit the market, as parents with children under the age of 16 have above average usage. (Mintel, …show more content…
The distribution channel of Happy Monkey relies a lot on the suppliers and thus needs to take care of competitiveness among their suppliers etc. Climate related threats is a big issue affecting farmers worldwide as well as businesses, due to its unpredictability, it is important for Happy Monkey to be prepared for any surprises as it might cause a surge in the cost to get the fruit crop to be supplied to them. Climate change will also have an affect on Happy Monkey consumers purchasing power and needs as they are becoming more aware of these changes impacts, they are more willing to favor Happy Monkey and their products if they demonstrate efforts to reduce their environmental impact. Threats of Substitutes These are simply products from another industry that offers similar benefits to the consumer as the firm producing the product, as they meet the same need. Substitutes offering may be cheaper than the firm producing it, making it more attractive to consumers, resulting to more sales, which causes a high risk to the firm. We already know that Happy Monkey aims to school age of 4-12 years, but whereby parents don’t have the time to make their kids lunchbox, the best next substitute is the free school meals offered to kids under the age of 16 years. This affects Happy Monkey, as these free school meals
The fruit juice and health drinks market has, over the past couple of years, seen a massive growth both in terms of sales and of the increasing demographic of customers that are choosing to purchase the products, especially at the expense of carbonated drinks. In 2006 the estimated value of the total market was £2.77 billion at retail selling price, having grown from 30.7% in 2002 (Key Note, 2007). Innocent Drinks are the markets biggest player with a market share of around 62% , selling in excess of 600,000 drinks every week (Barnett, 2005) The business is currently valued at £100 million. Not only content with being the largest distributor of smoothies the business has branched out to start the selling of "thickies" a yoghurt based drink which promises to be a hugely innovative idea and also water based fruit drinks aimed at children.
Their strong balance sheet gives them a tough war chest and the ability to experiment in foreign markets. We recommend that Hormel continue investments in acquisitions that have sustainable product-life cycles and act as extensions of the integrated strategic position that Hormel has been pursuing up to this point. As an example, China is the global leading stakeholder in peanut production with over 37% of the world’s supply. This market in particular is extremely important in the context of Hormel’s recent acquisition of Skippy Peanut Butter. After meeting with Fred Halvin, Vice-President of Corporate Development, he shared how one strategic issue associated with growing internationally is the way certain products are perceived in different markets. In general, Asian countries prefer products made and sourced in the U.S. as opposed to China. This is because of actual and perceived differences in quality and production standards. Putting more efficient and modern technologies in the hands of farmers is just the first step in building an image of quality outside of the U.S. Further collaboration with organizations like the Rainforest Alliance will help Hormel set goals for quality standards, long-term revenue growth, and overall shared value creation so that Hormel can develop vertically integrated supply chains that provide long-term security for the acquisitions they make to extend their
Throughout “Consuming Kids,” there are negative interpretations of the marketing on children. The future is in the hands of a younger generation. Ironically, the marketing is harming young children through various medical issues. There are studies shown that there is an increase in bipolar disorder, as well as ADHD. As more children begin to cease playing outside, there is a surge in childhood obesity. Children are not being marketed to play outside. The advertisements on TVs show children inside and lazy. Without physical activity, there is a higher chance of depression, as the child grows up. Type 2 diabetes is uncommon within children, unless it is hereditary. But, this is not the case within our growing generation. Type 2 diabetes has become prevalent, as a result to children
Marketers become rich by selling the idea of happiness to children; that life is all about buying and getting, and money is happiness. This ill treatment of children, by marketers, negatively affects social aspects of children. In more recent years, marketers have started to push more expensive, “branded” products to children. As Velmha La.Point states, “There’s a mantra in American society you are what you have, you are what you buy, you are what you own. The corollary of that, is and if you don’t have it, then you are a nobody”(Consuming Kids). This then leads to things such as depression or low self-esteem if ...
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
Innocent is a well-established smoothie and health food company in its home market of the UK and has had success in moving into various markets in the European Union. With the added partnership with global brand Coca-Cola, it could be said that Innocent is in prime position to begin its expansion into new markets globally. This report will note the benefits and potential risks of entering the chosen market of Japan based on research and theoretical analysis.
The European Vice President of United Cereal (UC), Lora Brill, is confronted by a dilemma: to launch a new product called Healthy Berry Crunch as the first ‘Eurobrand’ or not. A wrong decision may destroy her career, especially since Healthy Berry Crunch is not only a new concept of healthy cereal, but also a pioneer of United Cereal’s Eurobrand, which is different from the company’s usual standards. On the other hand, if she makes the right decision, she may be able to grow the company to a whole new level.
“Food buyers in the U.S. spend some $64 billion a year on snacking alone, according to economic research from the U.S. Department of Agriculture.” (NatureBox Raises $30 Million to Sell Snack Subscriptions Internationally, Lora Kolodny, 2015) Healthy snacks are becoming more awareness in many families. There are increasing market ( competition) in food market and healthy snack because today people are more conscious of what they eat. American consumers today are snacking more frequently than pass years. It is a great opportunity for Naturebox to grow in this market. However, today not many people use to shop food online, so it is a challenge for Naturebox to develop brand recognition. As well as it is difficult for Naturebox to compete with those well-known firms/ previous existed companies. Naturebox’s biggest competitors are those firm who also provide healthy snacks. Many customers can easy recognize and aware new brand on the shelves and compare their prices instead of shopping online. Such as local market WholeFood. WholeFood also sells healthy food which compete with Naturebox. Amazon is Naturebox’ biggest threat for online market and as well as many other firms and companies’ concern. Even the vending machine is a big threat for the Naturebox. Naturebox has put a lot efforts on building its reputation, brand awareness, and build strong relationship with its customers and try different way to approach its customers by
Marketing is one of the biggest causes as to why drinking is all around us. Marketing is the achievement of promoting and selling products or services, which also includes ...
...product toward children promising those children toys and gifts and you can even find inside some of those fast food restaurants games that attract children. Because of what they are doing one in six children are obese, the parents must be blamed but still the fast food industries are the ones who are selling that product and marketing it toward those children.
Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...
All the fruits and vegetables are handpicked from farms across the country, and will be delivered to the production line after undergoing through relevant laboratory test and approvals by the research and development department of the company. Dominant production line of the organization will consists of wholly crushed fruits and vegetable extracts with no added artificial flavors that will also be full of nutrients for health benefits. Furthermore, the company would sell fruit smoothies and vegetable smoothies for consumer preferences. All juices and smoothies packages are designed to be recyclable cartons as our main concern is on developing environmental friendly practices. Size choices for the product will be available in three different capacities which are 1L carton,500ML carton and 250ML carton all designed in very unique way where the out core of the package describe the flavor included in. target market for this commodity will be mostly teenagers when demographic segmentation was taken in to account. In addition to this company is also focusing on developing a newly product range specially designed for kids where they have an opportunity to create smoothies by themselves and to have their own fun size
Companies utilize different marketing strategies to appeal to their target audience. The methods they use to market their products usually reflects the target audience’s preferences or needs. Gatorade was invented at the University of Florida in 1965 by a team of researchers. They discovered nutrients were not being replenished when the school’s football team competed and formulated a solution to the problem. Today Gatorade primarily targets athletic or physically active individuals, especially professional athletes. Over time, Gatorade has become one of the most popular and leading sports drink companies in the world. Many people recognize what Gatorade is and what they do to help individuals who need the extra replenishment so they can continue
... it’s a buyer’s market, therefore instead on focus on push advertising and trying to compile prospective customers to buy their product, Pepsi is trying to make Pepsi a part of the consumers life so, whether consciously or unconsciously, if a customer goes out to buy soda the first thing that comes to his/her mind, is Pepsi. I find this especially intriguing, because as an aspiring entrepreneur I hope to one day market my products with the same if not better technics as Pepsi.
The soft drink industry is a highly profitable industry and its success is due to the large consumption of non-alcoholic beverages through which both concentrate producers and bottlers are profitable. Given the U.S. Industry consumption Statistics, Exhibit 1, it is clear that, after deducting beer and wine, soft drinks account for about 90 % of the total liquid consumption, while Coke and Pepsi account for about 75 % of the soft drink industry. The high consumption of CSDs is related to the soft drink industry selling to consumers through five principal channels: food stores, convenience stores, vending, fountain and other. Out of the five channels the case describes vending as the most profitable channel for the soft drink...