Gfl marjetin


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Gfl marjetin

  1. 1. A marketing management case study on Grove Fresh Ltd - Marketing Organic Juices
  2. 2. Road Map to GFL case Study <ul><li>About Case Study </li></ul><ul><ul><li>About GPL </li></ul></ul><ul><ul><li>Marketing Grove fresh juice </li></ul></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Advertisement </li></ul></ul><ul><ul><li>Promotion </li></ul></ul><ul><ul><li>Controversial statements </li></ul></ul><ul><ul><li>Challenges </li></ul></ul><ul><li>STP Analysis </li></ul><ul><li>4ps Analysis </li></ul><ul><li>PEST Analysis </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>Conclusion </li></ul>
  3. 3. Background of Grove fresh Ltd (GFL) ----------------------------------------------------------- <ul><li>1994: GFL established by John Taylor in UK </li></ul><ul><li>1996: GFL became first company to market organic juices in UK </li></ul><ul><li>1998: Entered Non-Organic juice market by acquiring German </li></ul><ul><li>company Frische </li></ul><ul><li>2000: Acquired Fruity King and achieved sales growth of 185% & </li></ul><ul><li>saw a profit of U.S. $ 0.9 million </li></ul>
  4. 4. <ul><li>2001: UFI(a GFL holding) ranked 3rd in Fast Track 100 </li></ul><ul><li>survey </li></ul><ul><li>2003: GFL registered 52% year on year growth in profit </li></ul><ul><li>2005: Ranked 68th in the Fast Track 100 survey </li></ul><ul><li>2006: Continued to dominate UK organic juice market with </li></ul><ul><li>market share exceeding 60% </li></ul><ul><li>But encountered problems like slowing market growth, mounting competition, supply shortage. </li></ul>
  5. 5. Sales Turnover of Grove Fresh Ltd. -------------------------------------------------------------
  6. 6. Marketing Grove Fresh ----------------------------------------------------------- <ul><li>GFL marketed organic juices under Grove Fresh brand </li></ul><ul><li>Targeted middle-aged people and youth </li></ul><ul><li>Product </li></ul><ul><li>---------------------------------------------------------------- </li></ul><ul><li>Contained only juice from fruits and vegetables </li></ul><ul><li>Used organic farming technique </li></ul><ul><li>Health oriented marketing strategy </li></ul>
  7. 7. 250ml 500ml 1litre 2litre 3litre Grove Juice of Orange Grove Juice of Orange Grove Juice of Orange Grove Juice of Orange Grove Juice of Orange Grove Juice of Mandarin Grove Juice of Mandarin Grove Juice of Orange Pulp Free Grove Juice of Mandarin & Mango Grove Juice of Mandarin & Mango Grove Juice of Mandarin Grove Juice of the Tropics Grove Juice of Ruby Red Grapefruit Grove Juice of Mandarin & Mango Product categories:
  8. 8. Pricing ---------------------------------------------------------------- <ul><li>Followed a premium pricing policy </li></ul><ul><li>Maintained price parity with competitors </li></ul>Sr. No. Brand Price of 1 liter 1. Luscombe Devon £ 3.80 2. Sainsbury Pure <ul><li>Pence </li></ul>3. Duchy Originals Refresher £ 2.60 4. Tesco Pure 99 pence
  9. 9. <ul><li>Distribution </li></ul><ul><li>--------------------------------------------------- </li></ul><ul><li>Using super market as a distribution channel </li></ul><ul><li>E-retailing </li></ul><ul><li>Other means such as distributors </li></ul>
  10. 10. Advertisement <ul><li>Use of print media </li></ul><ul><li>Weekend supplements of national news papers, women's magazines and food titles. </li></ul><ul><li>Also, they encouraged consumers to become health conscious ( video on website ). </li></ul>
  11. 11. <ul><li>Controversial posters </li></ul><ul><li>-------------------------------------------------------------- </li></ul><ul><li>“ Insects won’t eat fruits sprayed with pesticides, why would you”. </li></ul><ul><li>“ Fruit juice – now available in non-pesticide flavor ”. </li></ul><ul><li>“ 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”. </li></ul>
  12. 12. Promotion <ul><li>Sample distribution </li></ul><ul><li>Ad agency HDM for promotion and marketing. </li></ul><ul><li>Highlighting health and environment </li></ul><ul><li>factor to consumer </li></ul><ul><li>Switching to organic juices </li></ul>
  13. 13. Challenges ---------------------------------------------------------------- <ul><li>Supply Shortage </li></ul><ul><li>Increased number of players in the market </li></ul><ul><li>Slow growth of organic juice market </li></ul><ul><li>NPD(New product development) </li></ul><ul><li>Table: The UK market for organic fruit juice </li></ul>Year Volume Growth % Revenue Growth % 1999 224 175 2000 47 35 2001 15 13 2002 8 7 2003 5 5 2004 5 5
  14. 14. Outlook <ul><li>Increase sales and market share. </li></ul><ul><li>Maintain position in market </li></ul><ul><li>Managing supply of raw-material(fruits) of proper standard </li></ul><ul><li>Find ways to counter the slowing market growth </li></ul><ul><li>Undertake NPD to maintain consumer interest </li></ul>
  15. 15. 4Ps ---------------------------------------------------------------- <ul><li>Product: </li></ul><ul><li>A product is anything that can be offered to a market to satisfy the wants ,need and desire of the consumer. </li></ul><ul><li>Product category: FMCG </li></ul><ul><li>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. </li></ul><ul><li>Product diversification- merger with Dutch company “Fruity King” in UK. </li></ul><ul><li>Branding-strong brand image helped to dominate the UK market. </li></ul><ul><li>Brand expansion by starting a sub-brand called “v-juice” </li></ul>
  16. 16. <ul><li>Price: </li></ul><ul><li>They followed a premium pricing strategy </li></ul><ul><li>As organic products were considered environmental friendly and by using them customer felt that they were making positive choice to safeguard the environment.  </li></ul><ul><li>Place: </li></ul><ul><li>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. </li></ul>
  17. 17. <ul><li>Promotion : </li></ul><ul><li>They used print media like weekend supplements of national news papers to target youngster </li></ul><ul><li>They did their advertisement through women magazines as it targeted females for their product. </li></ul><ul><li>Promotions by giving free samples as promotion is bit different form advertisement. </li></ul>
  18. 18. <ul><li>STP Analysis </li></ul><ul><li>--------------------------------------------------------------- </li></ul><ul><li>Segmentation: </li></ul><ul><li>Market was segmented by two variables- age groups and income. </li></ul><ul><li>Targeting: </li></ul><ul><li>GFL targeted middle aged people (Under ‘empty nesters’) </li></ul><ul><li>Health conscious people like youngster. </li></ul>
  19. 19. <ul><li>Positioning: </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
  20. 20. ---------------------------------------------------------------- Political Analysis <ul><li>Fruits and juices imported from USA and other countries were not examined properly(SOIL standards) </li></ul><ul><li>Controversial advertising campaigns which hampered the companies image badly </li></ul><ul><li>It created legal problems and ASA accused company for unethical practices and called for quick action </li></ul>PEST Analysis
  21. 21. Economical Analysis <ul><li>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. </li></ul><ul><li>Social Analysis </li></ul><ul><li>Due to organic farming since 1994 the fertility of the land is preserved and giving higher yields in the future. </li></ul><ul><li>Organic juices rich in nutrition helped the heart disease patient and others with different health concern. </li></ul>
  22. 22. Technological Analysis <ul><li>They used latest technology in the organic farming </li></ul><ul><li>Used e-retailing for distribution of their product </li></ul><ul><li>E-retailing helped product look attractive which added many new customers </li></ul>
  23. 23. SWOT ANALYSIS ---------------------------------------------------------------- <ul><li>Strengths: </li></ul><ul><li>High quality of product </li></ul><ul><li>Product diversification (fruit juices to vegetable juices) </li></ul><ul><li>Strong customer base </li></ul><ul><li>Organic and eco-friendly products </li></ul><ul><li>Health conscious drink </li></ul><ul><li>Consumers willing to pay extra 20-30% for organic drinks </li></ul><ul><li>Innovative marketing strategy </li></ul><ul><li>Effective distribution channel </li></ul><ul><li>Appealing communication </li></ul><ul><li>60% market share in 2006 </li></ul>
  24. 24. <ul><li>Weakness: </li></ul><ul><li>Supply and production shortage of fruits in UK </li></ul><ul><li>Excessive dependence on imports </li></ul><ul><li>New product development (NPD) is affected as sourcing of organic ingredients matching the required standards is difficult. This affects future sales. </li></ul>
  25. 25. <ul><li>Opportunity: </li></ul><ul><li>Target other segments of market like kids (as segmentation approach is on age) </li></ul><ul><li>Develop new variety of products range for middle class people (segmentation based on income groups) </li></ul>
  26. 26. <ul><li>Threats: </li></ul><ul><li>In 2006, demand for organic juices had stabilised. </li></ul><ul><li>Slowing market growth </li></ul><ul><li>Growth in number of players operating in organic segment </li></ul><ul><li>Eg: Everfresh juice corporation, Holiday juice Ltd. </li></ul>
  27. 27. Conclusion: <ul><li>GFL Journey </li></ul><ul><li>Grove Fresh Ltd STP </li></ul><ul><li>STP Analysis </li></ul><ul><li>4p Analysis </li></ul><ul><li>PEST Analysisd </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>Future Prospect </li></ul>