Question
Book: (Walker and Mullins (2011), Marketing Strategy (7th ed.) Chapters 4) Can you help me with the summary below fora summary attractiveness of RTD fruit
Book: (Walker and Mullins (2011), Marketing Strategy (7th ed.) Chapters 4)
Can you help me with the summary below fora summary attractiveness of RTD fruit drinks:
Case Analysis 1: Category Attractiveness Analysis
RTD (Snapple) Analysis
Aggregate Market
Category Size
-The US fruit juice market generated total revenues of approximately $21.4 billion in 2009.
-This represents a compound annual growth rate (CAGR) of 0.6% for the 2005-2009 period
-Market consumption volumes increased with a CAGR of 1.8% for the period 2005-2009, to reach a total of 16 billion liters in 2009.
-The market volume is expected to rise to 17.5 billion liters by the end of 2014, representing a CAGR of 1.75 for the 2009-2014 period.
Category Growth
-The fruit beverage market is divided into two product segments: 100 percent fruit juices and fruit drinks that contain less than 100 percent fruit juice.
-For the last 10 years, fruit drinks have been gaining share from fruit juices due to innovations in marketing and from the partial insulation fruit drinks have from price swings caused by variations in the world's fruit crops.
-In 2009, fruit drinks (0-29%) sales proved the most lucrative for the US juice market, generating total revenues of $7.2 billion, equivalent to 33.7% of the market's overall value. In comparison, sales of 100% fruit juice (not from concentrate) generated revenues of $5.3 billion in 2009, equating to 24.9% of the market's aggregate revenues
Product life cycle
Sales cyclicity
Seasonality
Profits
Category
Threat of new entrants/exits
Economies of scale
Product differentiation
Capital requirements
Switching costs
Distribution
Bargaining power of buyers
Bargaining power of suppliers
Pressure from substitutes
Category capacity
Current category rivalry
Environment
Technological - Keeping up with different ways to compete with other drinks.
Economic - A consumer's choice to spend the extra money on a flavored drink rather than water or milk depending on income.
Political/regulatory - Shipping overseas or workers in foreign countries. Taxes or loss of shipment to foreign countries.
Social - Lifestyles and preferences of the consumer. What is popular right now.
I need references!!!!
Materials:
- Walker and Mullins (2011), Marketing Strategy (7th ed.), Chapters 4-6
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