A marketing management case study on

Grove Fresh Ltd - Marketing Organic Juices

1

} About Case Study

Road Map to GFL case Study

} } } } } } } } }

About GPL Marketing Grove fresh juice Product Pricing Distribution Advertisement Promotion Controversial statements Challenges

} } } } }

STP Analysis 4ps Analysis PEST Analysis SWOT Analysis Conclusion

Background of Grove fresh Ltd (GFL) ---------------------------------------------------------1994: 1996: in UK 1998: German

GFL established by John Taylor in UK GFL became first company to market organic juices

Entered Non-Organic juice market by company Frische

acquiring

2000: 185% &

4

Acquired Fruity King and achieved sales growth of saw a profit of U.S. $ 0.9 million

2001: 100

UFI(a GFL holding) ranked 3rd in Fast Track survey

2003: profit 2005:

GFL registered 52% year on year growth in

Ranked 68th in the Fast Track 100 survey

2006: Continued to dominate UK organic juice market with market share exceeding 60% But encountered problems like slowing market growth, 5 mounting competition, supply shortage.

Sales Turnover of Grove Fresh Ltd. ------------------------------------------------------------

Marketing Grove Fresh ---------------------------------------------------------- Targeted middle-aged people and youth

Product ----------------------------------------------------------------

 GFL marketed organic juices under Grove Fresh brand

 Contained only juice from fruits and vegetables  Used organic farming technique  Health oriented marketing strategy
7

Product categories:
250ml 500ml 1litre 2litre 3litre

Grove Juice of Grove Juice of Grove Juice of Grove Juice of Grove Juice of Orange Orange Orange Orange Orange Grove Juice of Grove Juice of Grove Juice of Mandarin Mandarin Orange Pulp Free Grove Juice of Grove Juice of Grove Juice of Mandarin & Mandarin & Mandarin Mango Mango Grove Juice of Grove Juice of Grove Juice of the Tropics Ruby Red Mandarin & Grapefruit Mango

Pricing -------------------------------------------------------------- Followed a premium pricing policy

 Maintained price parity with competitors

Sr. Brand No. 1. Luscombe Devon 2. insbur ure 3. Duch Origin ls Refresher 4. Tesco ure

Price of 1 liter 3.80 8 ence 2.60 pence

Distribution ------------------------------------------------- Using super market as a distribution channel  E-retailing  Other means such as distributors

10

Advertisement

Use of print media Weekend supplements of national news papers, women's magazines and food titles. Also, they encouraged consumers to become health conscious (video on website).

Controversial posters --------------------------------------------------------------

 Insects wont eat fruits sprayed with pesticides, why would you.  Fruit juice now available in non-pesticide flavor .  With 2.5 kgs of organic fruit in every carton there is no room for pesticides and we spend a lot of time adding nothing to our fruit.
12

Promotion

 Sample distribution  Ad agency HDM for promotion and marketing.  Highlighting health and environment  factor to consumer  Switching to organic juices

Challenges -------------------------------------------------------------- Supply Shortage  Increased number of players in the market  Slow growth of organic juice market  NPD(New product development)
2000 2001 2002 2003 14 2004 47 15 8 5 5 Year Volume Growth % Revenue Growth %

Table: The UK market for organic fruit juice 1999 224 175
35 13 7 5 5

Outlook
 Increase sales and market share.  Maintain position in market  Managing supply of raw-material(fruits) of

proper standard
 Find ways to counter the slowing market

growth
 Undertake NPD to maintain consumer interest
15

4Ps --------------------------------------------Product:  A product is anything that can be offered to a market to ------------------satisfy the wants ,need and desire of the consumer.  Product category: FMCG  They were having product line such as grove fresh juice with various flavours like Apple, orange ,Apple+Mango ,Apple +Cranberry , Grape fruits , traditional lemonade , breakfast juice.  Product diversificationFruity King in UK. merger with Dutch company

 Branding-strong brand image helped to dominate the UK market.  Brand expansion by starting a sub-brand called v-juice
16

Price:

 They followed a premium pricing strategy 

As organic products were considered environmental friendly and by using them customer felt that they were making positive choice to safeguard the environment.

Place:

 Through super market chain they dominated the UK

market for organic products as they did not use the agent middle men and As wholesalers they in their directly distribution channel. further

contacted costumer through e-retailing.

17

Promotion :

 They used print media like weekend supplements of

national news papers to target youngster

 They

did

their

advertisement

through

women

magazines as it targeted females for their product.

 Promotions by giving free samples as promotion is bit

different form advertisement.

18

STP Analysis -----------------------------------------------Segmentation:

 Market was segmented by two variables- age groups an

Targeting:
 GFL targeted middle aged people (Under empty nester  Health conscious people like youngster.
19

Positioning:
 GFL adopted one of the best strategy to position

their product by launching an organic product which is purely an extract of fruit and vegetables and with no extra added preservatives, color and additives.
 Also

the

unusual

combinations

of

fruits

and

vegetables juices has been other unique factor

20

which helped company to differentiate from other competitors in the market.

PEST --------------------------------------------Analysis
------------------Political Analysis
countries standards)
 Controversial advertising campaigns which hampered  Fruits and juices imported from USA and other

were

not

examined

properly(SOIL

the companies image badly

 It created legal problems and ASA accused company

for unethical practices and called for quick action

21

Economical Analysis
 In 2006 due to shortage of fruit and vegetable supply they had to import the fruits from the USA and other countries which had direct impact on countrys economy.
Social Analysis

 Due to organic farming since 1994 the fertility of the land is preserved and giving higher yields in the future.  Organic juices rich in nutrition helped the heart disease patient and others with different health concern.
22

Technological Analysis
 They used farming

latest technology in the organic

 Used e-retailing for distribution of their product 

E-retailing helped product look attractive which added many new customers

23

SWOT ANALYSIS --------------------------------------------Strengths: ------------------ High quality of product  Product diversification (fruit juices to vegetable juices)  Strong customer base  Organic and eco-friendly products  Health conscious drink  Consumers willing to pay extra 20-30% for organic drinks  Innovative marketing strategy  Effective distribution channel  Appealing communication  60% market share in 2006
24

Weakness:

 Supply and production shortage of fruits in UK  Excessive dependence on imports  New product development (NPD) is affected as

sourcing of organic ingredients matching the required standards is difficult. This affects future sales.
25

Opportunity:

 Target other segments of market like kids (as

segmentation approach is on age)

 Develop new variety of products range for middle

class people (segmentation based on income groups)

26

Threats:

 In 2006, demand for organic juices had stabilised.  Slowing market growth  Growth in number of players operating in organic segment  Eg: Everfresh juice corporation, Holiday juice Ltd.

27

Conclusion:
 GFL J  Gr     E O r l r Fr l i l l i i t i Lt

 Futur