Gfl marjetin

A marketing management case study

onGrove Fresh Ltd -

Marketing Organic Juices1

Road Map to GFL case Study• About 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: GFL established by John Taylor in UK

1996: GFL became first company to market organic juices in UK

1998: Entered Non-Organic juice market by acquiring German

company Frische

2000: Acquired Fruity King and achieved sales growth of 185% &

saw a profit of U.S. $ 0.9 million

3

2001: UFI(a GFL holding) ranked 3rd in Fast Track 100 survey

2003: GFL registered 52% year on year growth in profit

2005: 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, mounting competition, supply shortage.

4

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

5

Marketing Grove Fresh ----------------------------------------------------------- GFL marketed organic juices under Grove Fresh brand

Targeted middle-aged people and youth

Product---------------------------------------------------------------- Contained only juice from fruits and vegetables

Used organic farming technique

Health oriented marketing strategy

6

250ml 500ml 1litre 2litre 3litre

Grove Juice of Orange





Grove Juice of Mandarin


Grove Juice of Orange Pulp Free

Grove Juice of Mandarin & Mango



Grove Juice of the Tropics

Grove Juice of Ruby Red Grapefruit


Product categories:

7

Pricing---------------------------------------------------------------- Followed a premium pricing policy Maintained price parity with competitors

Sr. No.

Brand Price of 1 liter

1. Luscombe Devon £ 3.802. Sainsbury Pure 98Pence3. Duchy Originals

Refresher£ 2.60

4. Tesco Pure 99 pence

8

Distribution--------------------------------------------------- Using super market as a distribution channel

E-retailing

Other means such as distributors

9

Advertisement

Use of print mediaWeekend supplements of national news papers,

women's magazines and food titles.Also, they encouraged consumers to become

health conscious (video on website).

http://www.fruitjuicefacts.org/

Controversial posters-------------------------------------------------------------- “Insects won’t 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”.

11

PromotionSample distributionAd agency HDM for promotion and marketing.Highlighting health and environmentfactor to consumerSwitching to organic juices

Challenges---------------------------------------------------------------- Supply Shortage Increased number of players in the market Slow growth of organic juice market NPD(New product development)Table: The UK market for organic fruit juiceYear Volume Growth % Revenue Growth %

1999 224 175

2000 47 35

2001 15 13

2002 8 7

2003 5 5

2004 5 5 13

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

14

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 diversification- merger with Dutch company “Fruity King” in UK.

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

15

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 wholesalers in their distribution channel. As they

further directly contacted costumer through e-retailing.

16

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.

17

STP Analysis

---------------------------------------------------------------

Segmentation:

Market was segmented by two variables- age groups and income.

Targeting:

GFL targeted middle aged people (Under ‘empty nesters’)

Health conscious people like youngster.

18

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 which helped company to

differentiate from other competitors in the market.

19

---------------------------------------------------------------- Political Analysis

Fruits and juices imported from USA and other countries were

not examined properly(SOIL standards)

Controversial advertising campaigns which hampered the

companies image badly

It created legal problems and ASA accused company for

unethical practices and called for quick action

PEST Analysis

20

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 country’s 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.

21

Technological Analysis They used latest technology in the organic farming

Used e-retailing for distribution of their product

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

22

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

23

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.

24

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)

25

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.

26

Conclusion:GFL JourneyGrove Fresh Ltd STP STP Analysis4p AnalysisPEST AnalysisdSWOT AnalysisFuture Prospect

Education

Gfl marjetin