Product and Market Description of Tropicana Orange Juice - Assignment Example

Product and Market of Tropicana Orange Juice 1A. what is the history of your product? Tropicana original orange juice is now known as 100% Tropicana Pure Premium Orange Juice, and its history can be traced back to 1949 when the owner of the organization started selling freshly squeezed orange juice from excess oranges (Pania et al 3). Later, in 1954, the organization changed its production method by introducing and pioneering flash pasteurization, which instantaneously raised and lowered temperatures of orange juice in a short period of time. This led to a prolonged shelf life that enabled the transportation and manufacture of the chilled orange juice to various parts of the country. The products were then shipped to other parts of the world like France in the 1970s and orange juice wars with other rivals like in Coca Cola began in the 1980s. In subsequent years, the product’s packaging and marketing strategies have changed but the taste and content have remained relatively the same. 1B. Has your product changed over the years? In 1949, the product was simply freshly squeezed orange juice but in 1954, it became a chilled product made using flash pasteurization. In 1983, packaging was reduced to a smaller quantity but the prices remained the same; this mirrored developments in earlier periods (1964) when the organization created its own bottles and sold the product in such containers (Pania et al 3). The product maintained similar tastes until 2006 when it was diluted to become less thick and less calorie-rich. In 2009, its packaging was altered to a generic form but 3 months later, the company went back to its original packaging as customers complained; now it is found in plastic bottles. 1C. Is your product a top brand? Tropicana original orange juice won the IPA Effectiveness Awards 2006, Silver because of its campaign advertisement conducted in the United Kingdom (“IPA effectiveness awards 2006…”). The brand also boasts about getting Carbon Trust product footprint certification in 2007 because of determining the environmental" impact or ecological footprint of its production process. It is also a recipient of the Beverage Innovation Awards in 2009 by an organization of the same name because of the sustainability initiatives in production and rainforest consumer awareness programs (“2013 Annual report” 102). 1D. What is the brand’s market share? The brand currently boasts of market share leadership in the orange juice market as it accounts for 28% of all juices sold in the US. A drop had been recorded in 2009 when the company made a repackaging blunder, but its shares recovered thereafter. Currently, the next most competitive brand is Simply Orange by Coca Cola, which accounts for 14% of the market while Citrus World holds 12% market share. Its own diluted version of 50% orange juice takes up 3% of the market share while private labels account for the rest of the market share, that is, 31% (Stanford). 2. What is the average retail price of your product? Currently, the product goes for $3.49 for a 64 Oz packet; however, coupons and others reward programs can reduce the price by up to a dollar (“Tropicana Orange juice raises prices”). This price is considered reasonable in the retail market although Simply Orange may go for 40 cents less than the above amount. Generally, the organization has refrained from engaging in price wars as it believes consumers appreciate its quality and longevity in the market. 3A. Describe your product’s target market? The brand targets people on the go who would like fresh juice but have not time to prepare it from scratch. These may include professionals with busy lifestyles and students who have tight schedules and a lot to do at any one time. In addition to being someone on the go, the company also targets people who are health conscious as the product is marketed as 100% natural. People who purchase the product also appreciate its tastefulness, so having a trendy taste is one of the things that make it stand out. In essence, the target market consumer is one who busy or highly values convenience, health conscious, and wants a tasty beverage to start their morning or quench their thirst (“2013 Annual report” 23). 3B. What consumer sales promotions does your company use to promote your product to its consumer target market? The company relies heavily on the use of coupons as some can be found as newspaper inserts or can be located in supermarkets like Wal-Mart. Clients can enjoy up to $1 reduction on the product if they use them (“Tropicana coupons”). It also relies on rewards like the Tropicana Juicy rewards which notes accumulated points from purchase of the orange juice, then allows registered members to use it for other activities. In-store sampling is also conducted so that buyers can get a taste of the product and so are promotions involving additional products that can be given if one purchases the item. 3C. Where does your company promote and advertise to reach the target market? Tropicana Inc. is fond of relying on television advertisements, which are usually witty and captivating; they usually consist of messages about the richness and goodness of the juice for stressful mornings. It relies on social media; recently, it has a campaign in which it encouraged people to tweet about their most frustrating mornings. One can also find humorous advertisements for the products on billboards or posters in public areas like train stations; for instance, a particular one said “My boyfriend just changed his status to single”. Newspaper and magazine adverts are also common, but it often chooses the former format when it has something new to tell the public. Its website contains plenty of promotional information as well so as to encourage people to participate in their programs; clients can get accurate details about a campaign or scheme in session. 3D. Is your product involved in sponsorship, events, sponsor teams, cause marketing? Tropicana has participated in a series of sponsorship events such as The NASCAR Cup in Florida; it should be noted that there is a sentimental value attached to Florida concerning its oranges, so it makes sense that the brand would participate (“Tropicana juices up…”). This took place between 2002 and 2005, and was designed to publicize the brand to a vast number of sports enthusiasts as well as participants. It also partners with the National Football League in a series of sponsorship events; this came in the wake of the buyout from Pepsi CO, which has always partnered with the NFL. Tropicana orange juice is regarded as part of the Pepsi family, so sponsorship ties with the Football League are in line with the mother company’s strategy. Tropicana has also worked with a number of other forms of partners in Hollywood such as its sponsorship of the Lion King in Broadway where it aimed at reaching children as a target market. 4. Of what is your product made? The product is predominantly made of juice squeezed from fresh oranges as well as flavor packs, water and sweeteners (Walker). It is asserted that the product only consists of 100% orange on the packaging but there is more to this than meets the eye. The oranges are squeezed and the product is then flash pasteurized in order to eliminate any toxins that may cause illnesses. The organization holds a patent for its method of pasteurization as it was invented in the 1950s. Since orange supply dwindles throughout the year, it is common for the organization to experience shortages. For this reason, it de-aerates the juice by removing oxygen from it so that the product can be stored in voluminous tanks for periods of up to one year. Once the process is complete and the juice is retrieved after the long storage, it usually loses all the flavor that makes it predominantly orange juice. Therefore, flavors are added in order to restore that taste; these flavor packs are made from essential oils that technically come from oranges but are chemical extracts (D’Arcy). Overall, the production process involves an assembly line where employees will check on the quality of the product from time to time but most of the processes are automated. 5A. Describe your product’s style and design. The product is a liquid and has a rich orange color; it also tastes like orange although there is a distinct difference between freshly-squeezed homemade juice and Tropicana original; this stems from the presence of certain additives in the manufacturing process. The product has had a consistent taste for the past few decades and its consistency is what keeps customers coming back. The juice is stored in an attractive plastic bottle designed to capture customers’ attention through its fruitiness and vibrant color. Tropicana also ensures that the product comes in convenient packages that are ready to access and drink directly from the bottle (Pania et al 15). 5B. Describe your product’s packaging Initially, the product was packaged in a carton box with the image of a fresh orange and straw stuck inside it; this was the signature image that many consumers came to identify the product with. Later on, in 2009, the organization repackaged the juice into a generic looking carton with a glass of juice, but backlash caused them to resume the original packaging. Currently, the product can be found in plastic bottles with the brand name as well as the image of an orange and a straw inserted inside it. This bottle is easier to use than the carton as it does not require glass; it is also attractive and sends the message that it is orange juice from the image outside. Use of bold colors like orange and green evoke a sense of nature and health; they are likely to wet consumers’ appetite and lead them to buy it. Finally, product information can also be found on the package as one learns that it is the Orange Pure Premium in the middle of the bottle where one cannot miss it. 5C. Does your product have a recognizable well-known logo? The Tropicana Pure Premium Orange juice has one of the well-recognized logos in marketing – it is the name Tropicana in green and the words pure premium just beneath it. The ‘i’ in Tropicana has a leaf and the words pure premium is written on a banner beneath the company brand name. The curvatures and bends on the logo reflect nature, as they appear natural; likewise, the use of green and the leaf also convey these messages. Font sizes have been selected carefully to still reflect that warm and relatable look; even this name itself suggests the tropics, natural products and freshness (Everson). 6. Does your product come with a warranty or guarantee? All Tropicana orange juices have a sell by date that lets consumers know when the product will go bad; therefore, this is the company’s guarantee of freshness. If mold is found in the product when the sell by date is still quite far, then customers have a right to demand compensation. The company also affirms that it is 100% orange juice; some clients have taken issue with this express warranty. However, the courts decided that since additives are orange extracts, then the organization is not liable to false advertising charges. 7. List an abundant amount of features of your product and next to each feature state the benefit of that feature Feature Benefit Durability Can be drunk days after purchasing or packed for travel Flavor Is enjoyable and tasty and has that distinct natural feel Design Can be drunk directly from the bottle, so it is convenient and also easy to store. The message is clear to understand Color Attracts customer’s attention and conveys clear message on the product being sold (orange juice) Materials It is made using environmentally-friendly products Labeling Tropicana is easy to remember and saves time when shopping Market share Continued market share dominance ensures consistency and reliability of the brand Works Cited “IPA effectiveness awards 2006: Silver award –Tropicana Pure Premium”. Campaign Live. 3 Nov. 2006. Web. 8 Oct. 2014. http://www.campaignlive.co.uk/news/602956/ “Tropicana juices up NASCAR weekend at Chicagoland speedway with Busch race sponsorship”. Chicago Land Speedway. 18 Apr. 2002. Web. 8 Oct. 2014 http://www.chicagolandspeedway.com/Articles/2002/04/TROPICANA-JUICES-UP-NASCAR-WEEKEND-AT-CHICAGOLAND-SPEEDWAY-WITH-BUSCH-RACE-SPONSORSHIP.aspx D’Arcy, Paul. “How Tropicana misled you: The story of a bad brand”. Science of revenue. 2014. Web. 8 Oct. 2014. http://scienceofrevenue.com/tag/how-tropicana-orange-juice-is-made/ Everson, Matt. “Eight major failures of the Tropicana redesign”. astuteo 10 Feb. 2009. Web. 8 Oct. 2014. http://astuteo.com/desktop/articles/tropicana-redesign Pania, Nitasha, Tezir Turgut, Lynn Raposo, Shilpi Kapur and Abhishek Mandal. “Marketing plan for Tropicana Promlife”. tezir 1 May 2006. Web. 8 Oct. 2014. http://tezir.com/marketing/management/PomLife.pdf “Tropicana coupons”. Passion for Savings. 2014. Web. 8 Oct. 2014. http://www.passionforsavings.com/brand/tropicana-coupons/ “2013 Annual report”. PepsiCo. 2014. Web. 8 Oct. 2014. http://www.pepsico.com/Assets/Download/PEP_Annual_Report_2013.pdf Stanford, Duane. “PepsiCo adds water to Tropicana Orange products to juice margin”. bloomberg 15 Feb. 2012. Web. 8 Oct. 2014. http://www.bloomberg.com/news/2012-02-15/pepsico-adds-water-to-tropicana-to-juice-brand-s-margin-retail.html “Tropicana Orange juice raises prices”. The Associated Press. 10 Mar. 2010. Web. 8 Oct. 2014. http://www.nytimes.com/2010/03/11/business/11juice.html?_r=0 Walker, Andrea. “Ask an academic: Orange juice”. Newyorker. 12 May 2009. Web. 8 Oct. 2014. http://www.newyorker.com/books/page-turner/ask-an-academic-orange-juice Read More