Tropicana Juice Case Study

EXECUTIVE SUMMARY

Opportunity:

Tropicana, a brand from PepsiCo, is the world's only global citrus juice business. Tropicana is the top juice producer in the United States for over 50 years now. It has now expanded to Asian and European countries. Tropicana has almost all flavors of juice except Pomegranate juice.

The Concept:

We plan to launch a new flavor of juice - pomegranate juice called "PomLife" in Toronto, Canada. Considering the fact that pomegranate juice's market is unoccupied as of now, we plan to cover at least 75% of the market. PomLife will not be priced too high. With all the health benefits and tastes, PomLife is bound to be a success.

Strategic Advantages:

PomLife would be marketed based on the following grounds:

* Canadians spend a lot on juices

* Besides being very tasty, Pomegranate juice is also nutritious, has less calories, aids in controlling cholesterol and protects against cancer

* The only competition is "Pom Wonderful" which is available in very select stores

We aim to reach almost all age groups of target audience, primarily focusing on the health conscious middle-aged people and the taste conscious young Canadians.

Circulation:

PomLife will be distributed at all local stores where Tropicana is present already. This will be another advantage over the competition, as that is available at very select outlets.

Marketing and Strategic Alliances:

PomLife will not leave any stone unturned in the effort of reaching the target audience. A strategic combination of electronic, print and outdoor media will be used. Tele vision commercials are used through out the year distributed evenly over the news and health channels. Regular placement of ads in magazines and papers like Toronto Star and Sun on the weekends will help us reach out to a larger audience.

To have a consistence web presence for the first year has been decided upon. The outdoor advertising will also be used as a promotion tool to launch the new flavor of juice including billboards and free sampling.

Management Team:

Our management team combines the experiences of executives and an advisory board with extensive backgrounds in managing and developing successful businesses. Tropicana currently has the following staff who contributed in this marketing plan:

* Two Executives - Nitasha Pania and Turgut Tezir

* Business Development - Shipi Kapur

* Technical Implementation - Abhishek Mandal

* Administration - Lynn Raposo

3. SITUATION ANALYSIS

3.1. COMPANY ANALYSIS

3.1.1. The Pepsi Company

PepsiCo was founded in 1965 when Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay merged the two companies. Tropicana was acquired in 1998. Being World leader in convenience food and beverages, PepsiCo is growing continuously. "In 2005 its revenue reached more than $32 billion followed by more than 155,000 employees." The company manufactures markets and sells a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods. Its brands are available in nearly 200 countries and territories in the world. Pepsi Company reports that the company has a tremendous market share of 31.7% in 2004, followed by an incredible growth in its profits. In 2004 PepsiCo had operating profit of $150 billion and revenue of $27 billion (PepsiCo Overview).

3.1.2. Mission Statement

PepsiCo's mission statement is:

To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity (PepsiCo Overview).

PepsiCo's mission statement is brilliant. In this, PepsiCo intensifies its focus on what they do i.e. producing convenient foods and beverages, which indicates PepsiCo is very market oriented. It also shows PepsiCo's responsibility to satisfy its partners, employees and environment. It is a motivating mission statement for its employees and also takes into account the social responsibilities of being honest and fair.

PepsiCo competes in multiple markets. It has many SBUs, which are generally their branch units such as Frito-Lay, PepsiCo Beverages, PepsiCo International and Quaker Foods, North America and each one of them have their own specific SBUs. For example, Tropicana is a SBU of PepsiCo Beverage North America and Tropicana, itself, has its SBUs that are its juice lines.

3.1.3. Tropicana Overview

Tropicana Products Inc. is the world's only global citrus juice business. It has been nearly fifty years that Tropicana is the top juice producer in the United States and over the time has expanded their business to the Asian, European and Latin America. Tropicana was found in late 1940's by the entrepreneur Anthony Rossi who was searching an ideal business. Creatively he began to prepare gift boxes of Florida Citrus in Florida, sunny state. Soon he was selling them to department stores, including the legendaries Macy's and Gimbel's in New York City. Since then the company has made successful history by producing innovative and quality acclaimed products.

On August 25th, 1998 it was incorporated by PepsiCo in a big $3.3 billion acquisition which gave more strength to the company