Xtreme Juice Smoothies - Marketing Project

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Pepsico, Inc. 22.10%

Ocean Spray Cranberries, Inc. 5.00%

Dr. Pepper Snapple Group, Inc. 4.80%

Other 41.40%

Total 100%

(Adapted from Marketline, 12)

Market Volume

In 2012, the United States juice market decreased by 1.1% reaching about 14, 539.4 million liters. From 2008 to 2012 the market volume decreased by a negative (2%).

United States Juice Market Volume Forecast From 2012 -2017

Year Million Liters % Growth

2012 14,539.40 -1.10%

2013 14,473.00 -0.50%

2014 14,573.30 0.70%

2015 14,715.60 1.00%

2016 14.838.60 0.80%

2017 14,974.50 0.90%

(Adapted from MarketLine, 9)

Description of product category

A variety of products is offered by the each of the leading competitors. Each company is different but they offer similar products.

Dr. Pepper Snapple

• Carbonated drinks include: 7UP, Dr. Pepper, A&W, Sunkist soda, CanadaDry, Squirt, RC Cola, Big Red, Vernors, Diet Rite and Sun Drop.

• Non-Carbonated Drinks: Snapple, Hawaiian Punch, Mott’s, Clamato, YooHoo, Deja Blue, FIJI, AriZona, ReaLemon, Nantucket Nectars, Mr. and Mrs. T mixers, Mistic and Rose’s.

Dr. Pepper Snapple operates 18 manufacturing facilities as well as 115 distribution centers and warehouse facilities across the U.S. Dr. Pepper Snapple recorder revenues of 5,995 million in 2012, which was a 1.6% increase to the previous year. (MarketLine,22-23)

Ocean Spray Cranberries

Juices and Drinks: cranberry cocktails, grapefruit, blueberry, and energy juice drinks as well as veggie and sugar free drink mixes.

• Fresh Fruit: cranberries, grapes, blueberries, pomegranate arils, and citrus fruits.

• Caisin Branded Cranberries: Dried cranberries and blueberry, cherry and pomegranate juice infused dried cranberries, and Trail Mix cranberries

• Sauces: cranberry and jellied cranberry sauces.

Ocean Spray Cranberries is owned by more than 700 cranberry growers in Wisconsin, New Jersey, Oregon, Massachusetts and Washington. Ocean Spray is a private entity therefore; they choose not to release their financial information. (MarketLine,25)

PepsiCo, Inc.

• Carbonated drinks: Pepsi, Mountain Dew, Gatorade, 7UP, Electropura, Sierra Mist and Mirinda.

• Juices, Teas, and Bottled water: Tropicana, Electropura, Unilever, Aquafina, and Epura.

Pepsi is the second largest food and beverage company in the world. It has 85 bottling distributions, 445 warehouses, distribution centers and offices. The company reported revenues of 65,492 million in 2012 which was a 1.5% decrease from the previous year. (MarketLine, 26-27)

The Coca-Cola Company

• Carbonated Drinks: Coca-Cola, Diet Coke, Fanta and Sprite, Coca-Cola Zero, Coca-Cola Light

• Other Drinks: Fanta Orange, Fanta Zero Orange, Fanta Apple, Sprite, Diet Sprite, Sprite Zero, Sprite Light, Simply Orange, Simply Apple and Simply Grapefruit.

Coca-Cola products are sold in more than 200 countries worldwide and produce more than 3,500 beverages. Coca-Cola recorded revenues of 48,017 in 2012 which was a 3.2% increase from the previous year. (MarketLine, 30-31)

Pricing

The prices of these products vary depending on the brand, product and size. Due to the recent concerns for health and money, consumers have been choosing to buy the beverages that will benefit them the most. What consumers look for in beverages are value added benefits such as high intake in vitamins, low sugar, low calories and a good price. These products would be bottled water, natural juices, teas and energy drinks. The products that are struggling from this are the high sugar and calorie intake beverages. In many cases, consumers can no longer afford pricy beverages due to financial circumstances and will look to save money on what they consider discretionary purchases. (ChangeLab Solutions, 56-57)

Products Offered by Xtreme Juice Competitors

All three companies provide similar products. Below you can find a table for each company with a list of the products they serve and with a description. As you can see, a few of the products are similar and are offered by all three companies. What makes each product unique is not WHAT they are but rather HOW they are made. Each company uses different ingredients and there is a different process to how each product is produced. For example, Smoothie King and Tropical Smoothie probably wouldn’t use the same ingredients in their smoothie because they’re for a different group of consumers. A person who just left the gym wouldn’t go to tropical smoothie for a smoothie; it is more likely that they will go to smoothie king because some of their smoothies are specially made to be a post-work out meal. The same would go for a teenage girl who just wants a fresh fruit drink. She would most likely prefer to go to Jamba Juice or Tropical Smoothie for her choice of Beverage.

Jamba Juice Products

Smoothies Fresh made smoothies made with 100% fruit juice, sherbet and frozen yogurt.

Shots Tiny shoots that provide energy, immunity and antioxidant boosts.

Tasty Bites Sandwiches, snack wraps, fresh fruits, baked goods.

Jamba Kids Meal Veggie and fruit smoothies packed with protein and nutrients.

Fresh- Squeezed Juices Natural, fresh, and delicious juices made on the spot.

Hot Tea Talbott teas.

Boots A delicious mix of extra energy, vitamins and caffeine.

Tropical Smoothie Products

Snacks Wraps, sandwiches, flatbreads.