Marketing Plan Organic Juices

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Table of Contents

1. Executive Summary__________________________________ p.3 2. Background ________________________________________ p.4 3. Secondary Research_________________________________ p.4 4. Qualitative Research_________________________________ p.6 5. Recommendations___________________________________ p.8

1. Executive Summary

This research reports on the New Zealand organic beverage industry and investigates the current market situation and the purchasers’ beliefs, attitudes and preferences that are driving its growth.

Secondary Research

The secondary research section uncovered statistical facts, such as the size of the domestic organic market – that is valued at $40 million (Cork, 2001) and that 846,648 people (20% of the N.Z population) in New Zealand eat and drink a diet that is 80% organic (Coriolis Research, 2001). In terms of the industries growth rate, the organic sector has been experiencing a 47% increase since 1991 and more specifically the ambient organic juice market grew at 3.8% from June 2006 to June 2007 (Lepionka, 2007).

The main brands in the New Zealand organic beverage industry are Phoenix Organics in the juice sub-category – this brand has been growing at 28% since 2002 (Stock Exchange Announcement, 2005); Bell Tea’s Twinings Organic tea bags are the most dominant product in the organic tea industry (Winters, 2001), furthermore The Real Wine Co. is one of the most dominant brands in the wine sector as it offers a range of 70 wines from New Zealand and around the globe (OrganicDirect, 2007).

New Zealand Organic Specialty stores sell 40% of organic food and beverages and out of the supermarkets New World and Pak’n Save have the largest market share of organic products sold with 18% of this market share and an annual turnover of $5.7 million of organic products (Coriolis Research, 2001).

Qualitative Research

The Qualitative research uncovered the reasons why people buy organic beverages, these factors include; they like the taste, they want to help sustain the natural environment, they look for the healthy option, they want to appear as “elite” and they enjoy the novelty of purchasing and drinking organic beverages.

The most favoured sub-categories were the chilled organic juices and “sparkling” drinks; these categories were also perceived to have the highest demand. A reasonable price for a 275ml bottle of this kind of beverage would be around $3.00 – $3.50 in a café and around $2.80 at a supermarket.

The perceived demographics of organic beverage purchasers were; young (15 – 40 years old) professional people who live in urban towns with the majority being female.

The main perceived draw-backs with organic beverages was that the price often discourages purchase and many people are already brand loyal to conventional beverages. Another draw-back of most organic beverages is their low visibility on café and supermarket shelves. All three interviewees only knew of the Phoenix organics range and had never seen other organic beverages in the chilled fridges of supermarkets or café’s.

Recommendations

The main recommendations were to launch a Sparkling (carbonated) beverage and focus on distributing it to supermarkets in Auckland’s “trendy” suburbs of New Market, Parnell, Remuera and Takapuna. Additionally, a distribution proposal should be implemented with local restaurant owners adding the new beverage to their menu’s and encouraging bars to specialize the product as a ‘mixer’ drink with Vodka in “Happy Hours”.

The product should be offered in a 275ml ‘convenience’ bottle that is glass, with textured finish in places. The shape of the bottle should be innovative yet still attractive and a minimalist design should be used on the labeling with the certified organic stamp clearly visible. Clear bright colours should be used as opposed to pastels.

2. Background:

An organic beverage is made with produce that has been...
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