Essays on Food and Drinks Market- Case of Tropicana Case Study

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The paper "Food and Drinks Market- Case of Tropicana" is a perfect example of a case study on marketing. 1.1 Tropicana profile and logo history Tropicana is an American firm that primarily produces soft drinks. It has been owned by PepsiCo since 1998 and has been trying to gain a foothold in the UAE market since 2012. The company was founded by Anthony Rossi in 1947 in Bradenton, Florida (Weyer 12). The company’ s headquarters are in Chicago, and its main product is orange juice. Unlike Masafi which produces food products like rice, Tropicana specializes in juices and soft drinks only.

PepsiCo has bottling companies in the UAE that produce Tropicana soft drinks under license, making the company’ s products are readily available (Weyer 15). The company is still trying to establish itself in the UAE soft drinks segment, as evidenced by its low popularity and small market share. The company intends to significantly increase its market share within two years through aggressive marketing and price control. This will be followed by a five-year plan that is aimed at making the company the market leader in the UAE soft drinks segment (Weyer 16). Brand Features 2.1 Tropicana juice features Tropicana soft drinks are produced hygienically and in accordance with the highest quality standards that meet local and international benchmarks.

They are sold in appealing packages that also meet the highest possible standards (Business Monitor). Tropicana products have a distinct flavor because only the best ingredients are used in production. Considering that the fruits are farmed in the best possible conditions and using the best technology available, it is no surprise that Tropicana juices taste much better than others.

Below is a summary of the brand features of Tropicana soft drinks (Weyer 17). Simple & easy to remember Tropicana created a simple and visible logo that is easily recognizable. The colors are bright and symbolically reflect the sunny weather of the UAE. The brand name is also very easy to remember. Brand name issues Because it is a late entrant in the UAE soft drinks segment, Tropicana has developed a unique and catchy brand name that resonates with the people of UAE, particularly the youth. The products were positively received following their launch. TOM factors Tropicana urgently needs to strengthen its brand because on current evidence it is seriously underperforming.

Local brands dominate the market and the right strategy must be adopted to give it an edge. Characters as Brand Tropicana advertises online and in other media like TV and radio. The company uses video, sound, and outdoor advertising to market and characterize its products.   Sometimes a brand character may be misconstrued Tropicana uses very bright colors in its advertising and packaging. Arab countries like the UAE are very conservative and minimalist in their practices, so bright colors may be perceived negatively in some cases. Package designs & brands The packaging is made from the best materials and meets the highest standards to guarantee freshness for a long time even after the juice is opened.

The packaging represents what Tropicana stands for quality and longevity. Slogans   “ Each drop comes from the fruit” and “ 100% Pure Squeezed Sunshine” are some of the slogans used by Tropicana. Linking brand to some other entity PepsiCo markets Tropicana as an independent product and therefore it is difficult to link the two entities. In fact, very few people know that PepsiCo owns the company. Co-branding Tropicana is wholly-owned by PepsiCo therefore co-branding is not possible.   Literature Review 3.1.

a Branding Tropicana is well-branded and marketed. The brand is yet to become as strong as intended but this will come with time (Weyer 18). Current branding is focused on stealing ahead of its locally-produced rivals. 3.1. b Country Of Origin Effect (COE)                       The UAE soft drinks market has been dominated by locally-produced goods for very long. People know that Tropicana is a foreign product and are yet to take to it. This will probably come with time, but American products are well-respected in the country (Weyer 18).

America has a good rapport with the UAE in terms of trade and foreign relations. It is expected that the company’ s fortunes will change with more marketing. 3.1. c The selected brand Tropicana has focused solely on the soft drinks market, where it has a diverse range of products in terms of juices (Weyer 20). For instance, although its orange juice is very popular, there are lemonades, squashes, and fruit mixes that expand the company’ s product portfolio. Once it has acquired the most market share, Tropicana will introduce more products as time goes so as to strengthen its grip on the market. 3.1.

d Future of brands in global markets Contrary to the situation in the UAE where Tropicana lags behind local products, the brand is doing very well internationally. It dominates several regions in the United States, Latin America, and Africa, trailing only Coca-Cola (Weyer 23). The experience the company is having now is typical of new products that are trying to penetrate large markets with fast growth. It takes time, but results start showing after a while. Methodology 4.1 Tropicana Juice Research Analysis The total collected responses to the Tropicana survey was 17.

One respondent skipped, and of the remaining 16 12 were Emirati (75%) while 4 (25%) were from other nationalities. Male and female respondents were both 8-8 (50%). Based on the findings; Alrawabi (25%) and Allan (18.75%) were the most popular brands. They had a total market share of 43.75%. The least known brands were innocent & GoodBelly which both had 0.00% of responses. 28.57% were aware of the American origin of the Tropicana juice brand.

In addition, 37.50% of respondents agreed that Tropicana juice can be easily found in UAE outlets. Also, the majority of them (62.5%) had not tried Tropicana juice. The majority (81.25%) were not frequent consumers of Tropicana. 25% stated that they plan to try Tropicana juice in the future, while 18.75% said that they do not intend to try it in the near future. Analysis of primary data 5.1 Tropicana primary data & A-T-A-R Model Company Origin Brand Awareness Outlet availability No plan to try Tropicana Tropicana   6.25% 37.5% 18.75% Tropicana juice ATAR model. ATAR stands for Awareness, Trial, Availability, and Retrial, and this model is used for sales forecasting for newly-developed products (Business Monitor).

The following values are from the survey done on Tropicana juice and used on the ATAR model. AW = %of respondents who are aware of the Tropicana juice brand. 6.25% AV = % of respondents who agreed on easy availability. 37.5% T= % of respondents who ultimately tried the product at least once. 37.5% Rs= The proportion of respondents who expressed their willingness to switch to the selected brand in the future. 25.00% Rr= The respondents who had already experienced the brand. 37.5% Market Prospects (MP) = AW x T x AV x R, where R=Rs / (1+Rs – Rr) 1st to find R=0.25/ (1+0.25 – 0.38) R= 0.29 2nd MP= (0.0625 x 0.375 x 0.375 x 0.29) x 100 MP= 0.26%                       The low MP is indicative of Tropicana’ s very low and poor brand positioning. Conclusion The company needs to reconsider selling the product in the UAE or come up with better strategies for marketing the product.

This is because the ROI can decline to disastrous levels if the MP continues dropping. It is recommended that Tropicana concentrate on other potential markets, diversify its products, or exit the UAE market.

References

Business Monitor. "United Arab Emirates Food & Drink Report." Business Monitor. Business Monitor, 4 Sept. 2014. Web. 18 Oct. 2014. http://store.businessmonitor.com/united-arab-emirates-food-drink-report.html

Weyer, Courtney. Emerging Food and Drinks Markets Growth Opportunities in Brazil, Russia, India, China and the UAE. London, U.K.: Business Insights Ltd., 2007. Print.

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