Green Ox

Green Ox

1. PROBLEM STATEMENT

Palmer Jackson developed a new line of sport beverages - Green Ox with added benefits of antioxidants and hired a well-respected marketing research firm- Marketing Studies Incorporated to carry out a competitive intelligence study and deduced Green Ox competitors from established sports drinks, vegetable juices, most notably V7 and also indicated that about 10% of people consuming antioxidants in pills form would be interested in a beverage rather than a pill.

Palmer Jackson had to make decisions before introduction of Green Ox:

1. Which segment to target

2. Positioning the product

3. Setting Manufacturer Price and Retail Price

4. What flavors to introduce

Strengths:

Reduced risk of cancer

Sports drinks provide fuel to working muscles and this category is growing fast in beverage market

Weaknesses:

Green Ox being more expensive to produce due to added costs of antioxidants.

Considerable financial resources required for each additional flavor.

Opportunities:

Sports drink category important for overall image of store.

Growing interest of consumers in antioxidants and growth of sports drink market.

Threats:

Croc-Ade with the greatest unit market share

Competition with other forms of antioxidants.

2. RECOMMENDED COURSE OF ACTION

Segments:

Through a series of questions designed for consumers, Marketing Studies Incorporated segmented different customers based on their psychographics and demographics. Based on the results (Table 4), I would recommend, Green Ox should focus on the “Thinkers and Believers” psychographic, as they tend to be well educated and seek out information in decision making process. They are alert to opportunities and are open to consider new ideas, making them more likely to buy a new product. The second psychographic to focus on is the “Experiencers and Makers”. They are enthusiastic about new possibilities, seek variety and get impressed by practical or functional purpose. The demographics to target that would be attracted to the benefits of Green Ox based on their prior experiences with similar products: