Green Ox

Topics: Marketing, Target market, Antioxidant Pages: 6 (1718 words) Published: March 8, 2011
In this report, we analyze the data presented in the “Green Ox” case, with a view to determining a marketing strategy for Palmer Jackson, Inc. The time is fall of 2003; the data presented is with reference to this, if not explicitly stated otherwise. All market research data has been provided by Marketing Studies, Inc. Other mentioned data has been taken from the case. Data from any other sources is explicitly identified. Attribute/Benefit Analysis

As per consumer research, the following is the list of perceived key attributes and benefits of sports drinks, vegetable juices and antioxidant pills: AttributesBenefitsRemarks
Sports drinks-Contains electrolytes.
-Comes in many flavors.
-Not carbonated. Easy to ingest and digest.
-Easy to carry to the gym and playing field/court.-Helps restore hydration. - Makes them feel like an athlete. Older people prefer a self-perception of being athletic. V7-Contains vegetables.
-Looks like tomato juice.
- Contains natural antioxidants.-Cancer prevention.
-Good for overall health.- V7 drinkers found health a primary benefit. -Ideals-oriented people mentioned antioxidants as a benefit and were more likely to mention it as a primary benefit of V7. Antioxidant pills-Contains antioxidants. -Cancer prevention. -Good for overall health.

We find that most of the above attributes and benefits can be addressed by Green Ox in its present form. This fact, coupled with the following, support its entry into the market: 1.Antioxidants benefits: Benefits include anti-aging properties like maintaining healthy hair, nails and skin, protecting from cellular damage. Medical benefits include reduced risk of cancer, particularly lung, prostate, and colorectal (source: 2.Sports drinks market category growth rates are robust, as shown below (growth per year, averaged over last 5 years): CategoryGrowth

Sports drinks15%
Carbonated drinks2%
Overall beverages5%

3.V7 and antioxidant pills unit sales have grown 60% and 25% respectively over the last 2 years; their retail margins are approximately 30% and 80% respectively. 10% of antioxidant pill users would prefer to imbibe the antioxidants in beverage rather than pill form. 4.Number of people taking preventative measures against disease has grown 400% over the last 10 years. 5.V7 is not currently marketing its antioxidant properties. Overall, here are the Points-Of-Parity and Points-Of-Difference vis-à-vis Green Ox’s competitors: Sports drinksV7Antioxidant Pills

Points-Of-ParitySports drink - it rehydrates, boosts sports performance, aids muscle recovery. Antioxidants. Antioxidants. Points-Of-Difference Antioxidants- they are healthy, anti-aging, and reduce risk of cancer Sports drink. Sports drink, easier to ingest and digest in liquid form.

We proceed to identify the target market segments, retailer and pricing break-even analysis (including number of flavors), distribution analysis and positioning. Target Customer Segment Analysis
The survey done by Marketing Studies, Inc., shows that we have the following categories displaying the strongest tendency to favor Green Ox on impression: Sports-beverage drinkers categoriesFavorableUnfavorable

1Psychographics: ideals-oriented74%26%
2Income > $35K60%40%
3Age > 40 yrs85%15%
4Have children (Yes)65%35%
The relative age segment sizes in the sample population: < 25 yrs = 25%, 25 – 40 yrs = 35% and > 40 yrs = 40%. The category of people > 40 yrs of age shows the maximum inclination towards Green Ox. The ideals-oriented psychographic shows the next-highest preference for it. As per Exhibit I of the case, this psychographic is motivated by ideals and characterized by traits like- maturity, general knowledge, responsibility, high-income, conservativeness, loyalty, etc. The third category (income > $ 35K) has the least, though still significant, preference among the four. On the basis of...
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