Tropicana Marketing Essentials - Essay Example

Tropicana Marketing Essentials Introduction of Tropicana Company Tropicana is a subsidiary of soda Behemoth Company, Pepsi that makes orange juice at a Bradenton facility located in Florida and sells it to the US and Canada markets (Berinstein, 2003: 89). Tropicana has a variety of flagship juice offerings that include reduced calorie, reduced sugar, and calcium fortified versions. In addition, it has smoothies that consist of yoghurt and juice blend as well as Tropicana pure, which is the company’s premium juice line and sold in grocer’s produce section. Tropicana also produces juice on behalf of Dole Company under license and the naked juice for Pepsi Company. Marketing is the broadest sense in business and incorporate everything that is there to understand about markets. It revolves around bringing products or services into a market and developing new markets. This paper will tackle the essentials of marketing in respond to Tropicana Company. Tropicana Marketing Essentials Marketing involves creating an appealing brand for products. Serious managers should enforce a brand that is recognizable and sellable then seed it into new markets as well as those still accessible. This requires creating a brand content that consumers have genuine interests in since nowadays consumers filter ads out. Branding and its content should be the key player in everything a company does while preparing products for marketing (Lamb, Hair, and McDaniel, 2011:63). Therefore, for Tropicana to succeed, it has incorporate considerable measures ranging from spending time on product branding to spending time in marketing. Knowing that product is what a company sells and not just the physical product the company is offering. Tropicana understands that the different types of juices it offers have customer value and benefit both the company and clients since the cutting edge and feature of the juices is within the price range of the product (Slatter, 2005:276). In determining the essence of marketing the products Tropicana produces, price is a key factor. The amount of money a customer must pay in order to obtain a Tropicana product is an essential element of assessing whether the features added in the product are valuable or cutting few low value features is necessary. Price enables companies to be in a position to understand whether the product they are offering is in line with the prevailing economic features or opting for other measures is considerable (Dubrin, 2011:301). For Tropicana to roll in a new product, it must bear in mind that the current market structure revolves around taste, price, health standards, and other recognizable 21st century related elements. In some cases, some managers assume place is not important especially when dealing with online marketing. Nevertheless, place is very vital since it sets legal and financial issues. Moreover, in marketing, there is the core subject of every company, which is promotion. Promotion composes of the bigger portion of marketing essentials as it includes sponsorships, advertisements, public relations, viral marketing, special offers and many more. This entails that every Tropicana product needs a blend of place, price, and promotion (Doyle, 2008:93). When the product is cheap, placing is better and this leads to lower price offering. Offering attractive Tropicana products at a reasonable price can reduce marketing expenses. Additionally, it can make customers queue in the distribution outlets and travel further in search of the product. This means that the product will need less promotion since the product has its own optimum blend for customers and market conditions (Allen and Albala, 2007: 372-74). Development of new Tropicana Juice (Pomegranate Juice) Products offered by Tropicana portray that the company does not only sell juices, but also sells health. The health of consumers is of utmost importance to Tropicana due to its healthy orange juice with fiber that it launched on December 14, 2005. Due to firm distinctive marketing essentials of Tropicana, there is no juice from pomegranate in its wide line and range of juices. Therefore, if Tropicana can produce juice pomegranate, it can distinguish itself from competitors and subsequently realize huge returns due to monopoly (NLRB, 2007:616). Pomegranate fruit has elements suitable for protecting cancer and heart related diseases. Introducing a new type of juice with disease curative elements, Tropicana can soar to greater heights in terms of revenue generation and distinction of the company’s products. Hence, its intensive concern for consumers’ health can lead to a drastic upswing in the company’s sales. The promotion and marketing messages Tropicana conveys while pushing the sales of its products are smart. As such, marketing activities of Tropicana are playing a big role in its success. Commercials casted on televisions are memorable and appealing (Ryan and Jones, 2012:4-5). For instance, a woman is trying to find an orange juice in a supermarket’s shelf. A farmer offers the woman a fresh orange juice. This particular commercial portrays an impression to consumers that Tropicana juices are always fresh. The recent Tropicana’s television commercial had a message that urged consumers to have a Tropicana morning. The commercial was very successful since it talked about health, freshness, and taste whereby everyone wants to have fresh and healthy morning with a tasty breakfast. Another essential of marketing that Tropicana has is the good marketing strategy. Tropicana has a marketing stratagem, which is its field stadium in St. Petersburg, Florida where it hosts many sporting events such as baseball games and concerts. A gigantic stadium has roughly 45,360 seats with an entertainment center, food cord and a shopping plaza all surrounded by many Tropicana products for sale. With this respect, Tropicana enjoys a huge level of marketing opportunity whereby launching a new product with taste and health benefits priced reasonably can revolutionize the financial status of the company (Heisinger, 2009:56). Besides, putting into consideration that the market for the new is free as for now, enforcing a plan that can ensure wide market coverage can essentially generate large pool of clients, which in turn can result to huge financial and other related benefits. Marketing Strategic Plan for Pomegranate Juice The strategic advantages that Tropicana enjoys currently as a company are variable. The company is now enjoying UK and Germany soft drinks market. However, by use of the same marketing essentials such as strategic advantages, Tropicana can introduce the new product to other markets where fresh juice has considerable degree of revenue returns. Marketing the new product in countries like Canada can boost its sale because the fact that Canadians spend too much on juices. Apart from being very tasty, the new juice product is nutritious too and has fewer calories, and helps in controlling cholesterol and protects consumers against cancer. Obviously, providing consumers with a product that is essential for protecting them against killer diseases like cancer can lead to enormous realization of profits and subsequent withdrawal of stiff market competition (Best, 2010:35). In order to realize and reap the best out of this new product, Tropicana should make the product available to all the available market. Circulating the product to all local stores can act as an added advantage in view of coping up with the current competitive nature of fresh juice companies. Then making sure that Tropicana does not leave any stone unturned while marketing its new product can have substantial benefit. Putting in place a strategic mixture of advertising that include outdoor, print and electronic media in order to create awareness can be a move towards the right direction. In addition, using televised commercials in both news and health channels can help distribute the news at a faster pace as well as placing ads on magazines can assist reach a larger pool of clients (Frazier, 2008:53-55). Due to the continued advancement in technology, Tropicana has everything at its disposal in terms of product marketing. As such, pushing the sales of the existing products and introducing a new product and making it boom within the shortest time possible, it can resolve to use web advertising. Availability of cheap internet is giving companies an opportunity to market their existing products easily and create awareness for new products much faster (Ferell and Hartline, 2010:291). Besides that, Tropicana can use outdoor advertising as a promotional method for launching the new juice flavor. Arguably, outdoor advertising is cheap and can have decisive customer response regarding a new product. Therefore, use of intense promotional tools that also incorporate billboards and free sampling are strategic measures that yield high returns in terms of revenue and can ensure market grip. Tropicana is a potential company due to its mode of venturing into new markets. Besides producing fresh juice products, it also majors in entertainment industry though current revenue recordings show that it is not doing that well in this faculty. Taking a clear outlook at the current market that Tropicana enjoys, we can clearly analyze that it has potential of exploiting new markets. Hence, identification of a new market for the new product should emphasize on different types of household foods consumed by the target customers, maximum expenditure of consumers on fresh juices, fruits, and vegetables. Moreover, the market research should establish the consumers taste with regard to fresh juice (Dobkin, 2007:45). Upon obtaining such data, Tropicana can now consider to venture into that market where consumers spend a dedicated amount of their weekly expenditure on fruits and vegetables. It should also look into health related issues. Market is ripe Tropicana’s new product where consumers are health conscious hence the company derive potential benefits this particular kind of market. Essentials of marketing incorporate factors such as social, demographic, cultural, and lifestyle trends. In order to insure Tropicana’s products conform to the relevant market needs, the company should bear in mind different consumers have different beliefs, religions, and eating habits. However, it is worth noting that, these days most consumers are more conscious with their health needs. This is because of education and intensive awareness globally (Paley, 2006:152). Preferably, Tropicana should understand that consumers tend to demand for juices, fruits, and vegetables as well as foods that are more nutritive and have considerable health benefits. Wherever Tropicana can have market interest, it is common that people there belong to different social classes. Nevertheless, the most suitable market for Tropicana’s new product is where people are health sensible and prefer fresh juice. This means that, a consumer may belong to high, middle, or low societal class but his or her expenditure on juice with high amount of nutrition and health benefits is high (Fox, 2009:93). As a result, Tropicana can reap maximum profits from this kind of market. Documented evidence brings forth that technology is advancing at a vast pace leading to the advent need for healthy and nutritive juice (Treadaway and Smith, 2010:157). With this need comes competition and market exploitation. Therefore, for Tropicana to extend its trail of success it must intensify its ways of product labeling and packing. With the current state of technology, any company can pose competition threat mainly due to labeling and packing. Tropicana should therefore enhance attractiveness in labeling and packing of its products. In fact, for the new product, the company should opt for bright and appealing label that can outshine other products as they appear in outlet’s shelves. This aspect of marketing plays an important role in product promotion. Legal matters play a key role in product marketing. The forces of politics put more emphasis on consumer’s health. In fact, most governments in different nations have Food and Drugs act whereby the bottom line of the act is consumer’s health and nutrients present in the product (Brady, 2010:298). For Tropicana to avoid confrontations with the host country government where the company considers to venture, it must meet all the government requirements as this helps build good business relationship. Good business relationship is a marketing essential necessary for achieving a company’s objectives. Additionally, legal procedures can assist Tropicana conduct a market research in order to segment the market. Market segmentation can help Tropicana identify areas with the most concentrated number of the company’s products. It can therefore be easy to allocate the company resources appropriately and ensure no misuse of company resources. Market segmentation helps define consumers in terms of factors such as age and health conditions, which are favorable elements of choosing markets (Doole and Lowe, 2008:145). Through market segmentation, Tropicana can establish why some customers prefer other drinks like fresh juice or water as substitutes for beverages. With this kind of information, Tropicana can increase volume of sales and generate more income as well through provision of the new fresh juice that has health preference. Producing and marketing requires a company to keep the best interests of the consumers at heart. As such, it is vital for Tropicana to conform to factors such as convenience. Customers require proper mode of packaging with respect to different activities. Therefore, in order for Tropicana’s new product to address this issue, it should have different packaging styles that include juices sold in larger bottles for home purposes (Brady, 2010:309). Tropicana should ensure the new product taste outshines that of competitors, as taste is one of the valuable reasons as to why consumers purchase certain types of beverages. To add on that, Tropicana should keep in mind age factor can result to either success or failure of a product sales. Youth segment of age is the major consumer of beverage. This means that, the age responsible for mass product movement is youth. This does not exempt the rest of the age bracket. Adults are super conscious with health related matters. Financial Projection (overall) Market analysts say stiff business competition is risky especially when introduction of new a product is the subject. However, this should not be a case to scare Tropicana from introducing their new product, as competition is at times healthy. The top competitor of Tropicana in the world of soft drink provision is Coca Cola Company. It owns the top five soft drink brands and has many running different countries making it a giant beverage provider. Its market capital is larger with lumps of revenue rolling every year. Truthfully, the level of market competition is high with regard to these two beverage providers. Nevertheless, Tropicana can have competitive advantage upon introducing the pomegranate juice that can serve consumers with healthy juice full of nutrients. Therefore, this juice can realize increased annual revenue from the current $6.3 million to more than $10 million per annum. As elaborated, consumers are nowadays aware of lack of nutrients in many beverages that is why they mostly opt for water or juice (Zou, Kim, and Cavusgil, 2009:207). Thus, providing fresh juice that has elements suitable for preventing hazardous diseases like cancer can positively influence massive increase in revenue realization. Recent research results show that nowadays consumers are the king of the market and their constant needs vary with time and place due to change in technology, fashion, tastes, lifestyle, and behavior (Alon, 2003:63). In this century, customers demand hundred percent calorie free juices since they know they can derive tones of potential health benefits from such juices. With this sense, Tropicana’s new product should cater for those factors by incorporating contents that are necessary and suitable for this millennium. It should contain no sugar but should have elements that boost energy. Hence, the elements this paper chose for Tropicana’s new juice are conducive and vital since they are health friendly, energetic, lowers the risk of heart disease, useful alternative against cancer, and has antioxidants which help in preventing damage of cells and tissues that lead to any disease. In view of achieving success, Tropicana should exercise all the marketing essentials available that include market rationale. As the new type of juice enters the market, not many consumers will be aware of the benefits it can provide. Therefore, launching intense marketing strategies as well as educating audience can bring about positive results. Tropicana should aim to establish dense client base with new marketing strategies and promotional tools (Alon, 2003:87). The company can as well meet the firm objectives setting attainable targets that can better the growth of the new product. Coming up with long-term ideas necessary for projecting the well-being of the new juice can positively influence the process of decision-making now. Three-year Financial Forecast (specified) Taking all these strategies into consideration and practice, Tropicana can achieve tremendous financial results. For instance, the diagram above gives a three-year financial projection of Tropicana’s new product whereby, Tropicana can attain total of annual revenue of more than $ 10.3 million by 2014. Currently, the total annual revenue of Tropicana’s beverages and food is $6.3 million. According to financial times, this company’s annual revenue revolves around the above-specified current amount. However, with introduction of this pomegranate juice, Tropicana can increase revenues on annual basis due to market availability. Uniqueness of this product will result to market availability, which will in turn increase Tropicana’s annual revenue. SWOT Analyzing the strengths, weaknesses, opportunities, and threats, Tropicana’s new juice can have a healthy existence in the market. For instance, strength wise, the juice is fresh, energetic, high on minerals, and is health conscious whereas it has only a two weaknesses that are not threatening. The flavor is new and target audience acceptance could be a weakness (Plunkett, 2008:117). However, presence of wide range of opportunities such as no more than one major competitor, congruent distribution, and aggressive market research can potentially result to large amassing of revenues. Summary In summary, by us of the necessary marketing essentials, Tropicana should establish a base of enacting overall marketing objectives of the new type of product. Tropicana should predict and analyze customer’s taste then strive to satisfy their needs. In addition, in order to ensure the product continues to exist in the market while bringing reasonable results, the company should ensure it monitors and analyzes market trends. Consequently, Tropicana should anticipate future changes and initiate strategies to overcome its effects. To keep customers expecting more products with extra benefits, the company should increase positive perception among its customers (Kahn, 2006:109-111). Furthermore, identifying positions that are distinctive, compelling, and competitive is essential for the well-being of the Tropicana’s new commodity. Bibliography Allen, G. J. and Albala, K., 2007. The Business of Food: Encyclopedia of the Food and Drink Industries. Santa Barbara: ABC-CLIO. Alon, I., 2003. Chinese economic transition and international marketing strategy. Westport: Greenwood Publishing Group. Berinstein, P., 2003. Business statistics on the web: find them fast-at little or no cost. Medford: Information Today, Inc. Best, T., 2010. 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