Tropical Delight Softdrinks
Problem Statement Tropical Delight Soft drinks is a small Canadian company that has a narrow line of drinks with only three flavours that was relatively unknown in the Canadian market but popular in markets of parts of Asia, South Asia and Tropical countries.
Situation Analysis
Strengths – The soft drinks were made with 30% real juice, which is more appealing to consumers who want natural flavours. The products were healthy and contain real fruit juices. Although the company had a small market share, their sales increased steadily over the years. Weaknesses – They had a narrow line of products with only three flavours, which were relatively unknown in Canada. Although sales increased steadily,
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Expand to other parts of British Columbia that also has a large minority population.
Option 1 Breakeven Analysis Total FC - $310,000/0.60 contribution unit = 516,666.67 units
Option 2 Breakeven Analysis Total FC - $200,000/.050 contribution unit = 400,000 units
Option 3 Breakeven Analysis Total FC - $190,000/.55 contribution costs = 345,454.55 units
By using option 1 TDS will sell 116,666.67 units more in 2003 considering is they don’t make any changes, they are only expected to reach 400,000 bottles in sales, as a result they will break even in option 2 and make a loss of (54,545.45 units) for option 3.
Key Decision Criteria To evaluate the alternatives, the key factors would be costs of setting up in other cities within Canada and if it will generate more sales by setting up there. If by expanding, more sales, more market shares and profits are generated then it is better to expand in that specific city but if the costs of setting up there are more than the amount of sales you will make in that city then it is better not to set up there.
Implementation
The best alternative to take would be to expand in the city that has the majority minority population, which is to expand in other cities like Toronto. Due to the high demand for tropical food and drinks, there is a need and thus can create large sales. Because these products will be known to the minority market there, there may be a way to cut
d) Break even sales change that would change the profits by the same amount as a reduction in price.
Expanding a business into Canada is a big step for most companies. Whether this is your first expansion or one of several you’ve completed, you need to conduct extensive market research before you set up shop in the Great White North.
Breakeven Analysis for Product Tylenol Approach 1 - Same price as Tylenol Approach 2a - Cheaper than Tylenol Approach 2b - Cheaper w/lowered trade cost $ $ $ $ Unit Cost (Variable Cost) 0.60 0.60 0.60 0.60 Trade Cost (Selling Price to Retailers) $ 1.69 $ 1.69 $ 1.05 $ 0.70 Fixed Cost (Advertising) 2,000,000 6,000,000 6,000,000 6,000,000 Break-Even Quantity [Fixed Cost/(Trade Cost-Unit Cost)] 1,834,862 5,504,587 13,333,333 60,000,000 Contribution Margin (Unit) 64% 64% 43% 14%
The soft-drink industry capitalizing on creating the best product. Each product has a different taste, formula, and color to entice the consumer. It is important for the product to remain innovative in order to keep the consumers interested. The suppliers can easily differ, because they do not hold much value or put
The current marketing profile of Boost juice is to manage the brand so effectively created. The image of boost juice in the market is very high. The impact it has created in the minds of consumers and competitors is so clearly marked that it has been able to rise itself above the marketplace and position itself in the minds of the customers. The brand communications have also been promising and have fulfilled all those messages which it has committed itself to. This has been the greatest source of equity. The awareness that boost juice has created has put off all other competitors far behind and hence it is the industry leader. The brand is instantly recognizable by its distinct packaging, flavor and inimitable appeal. It is relevant as a healthy juice bar while competitors have not been able to carve that niche. People prefer this to other juice sticks. Boost juice has returning customers the greatest asset that any organization would want and aspire for. It enjoys a lion’s share of market for juice bars and though sold at price premium it commands the respect due to it.
The main point that can be taken from this analysis is that due to its strong brand image, lower shelf-life, and cheaper prices than its competitors, Natureview
Most buyers do not share the same palate, purchase the same quantities, or respond in the same manner to marketing efforts. Therefore, a concentrated Niche Marketing approach will work best to target our selected segment. Instead of pursuing a smaller share of a large market, Exotic Fruit Bars will target a large share of one focused niche. Through niche marketing, Exotic Fruit Bars can achieve strong market positioning by gathering thorough and detailed knowledge of the consumer needs in the niches it serves, and by acquiring a distinct reputation to differentiate Exotic Fruit Bars from it’s competitors.
A. Introduction of company Founded by Janine Allis, formed in the 00s with the first store based in Adelaide, South Australia and specializing in selling fruit juices and smoothies, Boost Juice Bars (Boost Juice, n.d.). According to Boost Juice (n.d.), Boost Juice offers an array of healthy products mainly juices and smoothies that are free of preservatives, artificial flavours, and colours. Besides, Boost Juice also sells a range of healthy snacks which includes wraps, fresh yogurt, muesli bars and soups (Boost Juice, n.d.). Back in 1999, Janine Allis took a trip to the United States and something caught her eye (Boost Juice, n.d.). Everyone in the U.S. was into healthy smoothies and fresh juices -while in Australia, the fast food market was
The company constrained itself within the already available marketing budget that significantly cut down the cost that could have used to advertise the new company plans, that in turn increased the revenues. The company also succeeds due to the unique flavor that it offered in the yoghurt, which was organic and naturally made unlike the competitors who at time incorporated artificial flavors. Finally the company focused on the target consumer group that comprised of women and children. This helped the company to increase its sales that contributed to its success.
Mission Statement: We are dedicated to providing a healthy alternative to energy drinks while delivering the best merchandise, with natural ingredients, for optimal energy.
They were so much bigger than all of their competitors, and no one could really compete on their level.
a. Assuming the most current operational cost levels, what sales must it generate to recoup the above investment?
Not least because of the unique idea of ‘selling’ ‘healthy hedonism’. SoBe’s first beverages were based on teas and juices supplemented with herbs and nutrients, namely ginseng, ginkgo and guarana. These contents suggested healthy products. However, ‘healthy’ soft drinks seem to be something entirely new, especially for young people who often do not attach great importance to healthy products at all. However, the combination of these aspects with an image of pleasure (hedonism) and ‘coolness’ made these ‘lifestyle-drinks’ attractive to the target group.
Their competitive advantages are being one of very few products out there that offer more natural