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A Case Study On The Brand’s
Strategic Design Management
And Why It Failed
Adithi M Sarovar
Student ID: 1230244
Module: Strategic Design Management and Research
Module Code: DM5562
Providing a mini fruit bowl in a bottle for UK consumers
MISSION
CONTENTS
INTRODUCTION 1
HOW IT ALL BEGAN 2
OVERSHADOWED 3
BRAND RE-DESIGN 4
WHAT’S YOUR IDENTITY ? 5
PRODUCT LANGUAGE 6
REPOSITIONING 7
DECLINING SALES 8
PRODUCT LIFE CYCLE 9
THE PRODUCT 10
PRICING STRATEGY11
12 THE PLACE
13 PROMOTION
14 BRAND IDENTITY
15 COMPETITORS
16 SWOT ANALYSIS
17 CONSUMER NEEDS AND TRENDS
18|19 WHAT WENT WRONG
20 CONCLUSION
21|22 REFERENCES - TEXT
23 REFERENCES - IMAGES
In the present day situa on, new products appear in the market constantly. Several
successful brands have given great importance to the design of the business as a whole,
than just the func onal aspects of the business. Extensive brand research and market
analysisisimpera vetolaythefounda onsofawell‐designedbusiness.
More o en than not, businesses fail to succeed. Detailed studies conducted on such cases
areanefficientwaytodeterminewhatnottodoinasimilarsitua on.
Onesuchbusinessthatrecentlyfailedinthemarketis PJ'sSmoothies. PJ'swasthenumber
one smoothie brand in the market in 2003 when the UK smoothie market was worth 69
million. The brand drowned by the end of 2008 when the market was worth almost 150
million.
In this case study, an analysis has been made on what went wrong in terms of PJ's design
management and strategy; why the brand failed and how it could have been saved with
be erdesigndevelopment.
INTRODUCTION
It takes more than the product itself for a successful brand to be created.
1
PJ's was established in 1994 by Harry Cragoe and Patrick Folks and was originally marketed
as Pete and Johnny's Smoothies. The founders were trying to create a product language
similar to that of Ben n Jerry's, but unlike Ben and Jerry's, Pete and Johnny's are mythical
charactersinventedbythefounders.
PJ's had the advantage of being the first smoothie brand in the UK. They started selling
the product in just 12 stores in 1994, and by 1998 opened its first factory in the UK (before
which,manufacturingwasatCalifornia).
In 2003, they were the first to launch a smoothie product targeted at children – Froo es,
and were also the first smoothie brand to appear on television. The founders invested 4
million pounds into developing the brand and by 2004 they had become the number one
smoothie brand in the UK. In 2005, the growing success of PJ's Smoothies was taken over
byPepsiCo.
HOW IT ALL BEGAN
THE PUNCHIEST,
FRESHEST,
MOST DEDICATED
SMOOTHIE MAKERS
IN THE LAND
1998
+
2005 ‐ Pepsi Co Buys PJ’s
2
Innocent Drinks, a new brand of smoothie was quickly taking the
market share away from PJ's with its product language, branding and
marke ng techniques. In 2006, Innocent had overshadowed PJ's with
a63%marketshare.
PJ'srosetothechallengerapidlybyredesigningthepackageandlogoof
theirbo ledsmoothie.Thepackswereredesignedtotargetayounger
and health conscious genera on. The brand was made to look more
energe candexci ng. Newflavorsofsmoothieswerealsointroduced.
A flaw in the design here was that PJ's was not a healthy drink. They
were made from fruit concentrates and not fresh fruits. This being the
case, marke ng it amongst a health‐conscious market was not the best
solu on.
OVERSHADOWED
63% Others
+
2006
REDESIGNED LOGO
2006
3
“In an irreverent and cheeky tone, the le ers P and J are now the basis for descriptors for the flavors in the line. Each variant has a
naming descriptor that is deriva ve of the feeling you get from the individual product. For example, for the Energy Boost flavor the P
andJdescriptorwordsarePowerJump.”(LandorAssociates,n.d.)
ThenewpacksdesignedbyLandorAssociateshelpedincreasethesaleson PJ'sby 32% withoutanyactualadver singandmarke ngsupport.
BRAND RE-DESIGN
4
Consumers feel more a ached to a brand or product when they have a
personalconnec onestablishedwithit
In the case of Ben n Jerry's, the product is named a er the founders and
hence consumers make a connec on with the brand and its founders. The
Ben n Jerry brand, have a lot of anecdotes that make up the brand image for
itscustomers.
Ben and Jerry were fun‐loving, impulsive and playful ‐ quali es that are
designed into the brand image, making consumers connect with the
founders and hence remain loyal to the brand. PJ's on the other hand, did
not add a personal touch to the brand image and hence customers would
nothavebeenabletomakeaconnec on toits'funandquirky'image.
WHAT’S YOUR IDENTITY ?
5
2006 - 20081998 - 2005
PRODUCT LANGUAGE
6
A survey conducted on prices of smoothies (Anon. 2008) showed that most of the customers were hesitant to buy smoothies as they
wereexpensive.Basedonthisresearch, PJ'sloweredtheirpricesby30%.
“The reposi oning follows a series of successful trials conducted last year. One major mul ple saw sales of PJ's Smoothies more than
double when one liter cartons were price marked at £1.99. The new price points have been achieved by focusing on four great tas ngth
flavorsthathavebroadmarketappeal.”(TalkingRetail,14 January2008)
42%
Consumers for
whom price of
smoothies was a
big barrier
SALES
NEW
PRICE
OLD
PRICE
REPOSITIONING
7
Since the brands acquisi on by Pepsi co. in 2005, the drink had been in
rapid decline. A seventy percent drop in sales was recorded ‐ from £1.3
Million to £396,000 in 24 weeks to 7 September, according to TNS
figures(n.d.)
Innocent's marke ng strategies and brand image were rapidly growing
and in 2008, the company was responsible for 73% of the smoothie
market. Other strong brands like Naked juice, Jamba Juice, Tesco
smoothie,andotherownlableswerealsobuildingtheirimage.
PJ's weak approach towards design strategy failed to compete with
the growing market trends and as a result, Pepsi co. decided to scrap
thebrandbytheendof2008andfocusmoreontheirTropicanabrand.
DECLINING SALES
2008
73%
8
In the Product Life Cycle graph, it is seen that up un l 2004, there was a good upward growth in the sales PJ's. 2004 to 2005 shows a
stagnant period for the brand, a er which there is a steady decline in the sales up to 2008, where the brand was discon nued.
PRODUCT LIFE CYCLE
SALES
Introduction Growth Maturity Decline
1994
1998
2004
2005
2006
2007
2008
9
“Make things easy with PJ Smoothies – 100% pure
fruit conveniently whizzed up and crammed into a
bo le.”(Anon.n.d.)
The smoothie's core benefit was to provide a
psychologicalenergyboosttoitsconsumer.
The actual product is a low cost, fruit smoothie that a
consumer can buy off the rack. Different flavor
combina ons and the original quirky brand image
definetheproduct.
In terms of the augmented product, PJ's never
invested too much towards promo ons and
marke ng strategies, which is one of the reasons for
thebrandsdeclineinitslateryears.
Even though they made a grand entrance into the
smoothie sector, and leaped to become the first
brand to launch a television ad, the changing market
scene demanded more out of a smoothie brand than
PJ'swasoffering.
THE PRODUCT
Psychological Energy Boost
Low Cost
Off-the-rack
Flavor Combinations
Quirky Brand Image
Vespa Promotion
Online Games
CORE
ACTUAL
AUGMENTED
10
In a survey conducted in the UK (Anon.
2008), it was seen that the price was a
major concern for most smoothie
consumers. PJ's smoothie's sales were
doubled when their prices were cut
downby30percent.
The price and quality matrix shows that
as compared to other compe tors, PJ's
smoothieswereverylowpriced,butalso
low in terms of quality. Even a er the
slash in prices, PJ's increase in sales did
not last for long, which might mean that
the price was not the only problem for
theproduct.
PRICING STRATEGY
High
Low
High
Low
PRICE
QUALITY
Pj’s Smoothies
Innocent Drinks
Tropicana Smoothies
Crussh
Capri-sun
Ribena
Tesco Smoothie
Sainsbury’s Smoothie
Asda Smoothie
11
PJ'ssmoothiesweremadeavailableinmostretailchainslikeTesco,Asda,Ocado,Sainsbury's,etc.
A bo le of PJ's could be bought off the rack at any me of the day due to the nature of these
retail outlets. The foo alls at these retail chains are very high, and so PJ's would have a racted a
largenumberofconsumers.
But what efforts did the smoothie brand take towards standing out from other products on the
rack?Atretailsstores,mul plebrandsarebeingsoldandthebrandiden tycangetfadedintothe
clu er of compe on. It is therefore necessary to have branding and packaging that stands out
fromtheothers.Itisalsohelpfultodoin‐shopadver singofthebrand.
THE PLACE
12
“Digital media agency Electric Cake has signed up PJ Smoothies to
sponsor its website in a deal that will see the smoothie brand
target opinion formers in fashion, design, music, entertainment
andmedia.
PJ Smoothies will be promoted via a fruit‐machine game on the
site, and users have the chance to win prizes. The promo on will
last for seven months, during which me there will be a weekly
prize of 100 bo les of PJ Smoothies, with further prizes to includeth
T‐shirtsandholidays.”(BrandRepublic,5 June2003)
The re‐design of the PJ's smoothie's website in 2005 s rred a lot
ofinterestinthemedia.
An extract from an ar cle published in The Grocer (17 Jan 2005)
reads:
“Nathan King, PJ Smoothies marke ng manager, said: “Our online
ac vity plays an integral part of our fully integrated marke ng
campaigns. Alongside our much an cipated 2 million adver sing
crea ve, we will be launching online marke ng ini a ves which
will enhance the PJs experience for all the smoothie lovers and
poten alnewonesinthe UK market.””
Pjs also ed up with the scooter company – Vespa – for some
promo onal ac vity in 2006. An online game was designed for the
websitere‐launchwhichgavereadersachancetowinaVespa.
PROMOTION
2005
WEBSITE REDESIGN
2006
VESPA PROMOTIONS
13
Pjssmoothieshadafunandappealingbrandimage.Theywereamongstthepopularmainstream
brandsandpromotedthemselveswithaquirkyandenthusias cvisuallanguage.
The ini al logo and packaging did not have much of their quirky aspect highlighted, but the
redesigned logo and packaging tried to capture the essence of the brand and its ini al inten ons
ofbeingafunbrand.
“Derek Johnston, crea ve director of Landor Associates, which worked on both redesigns, says:
“The first redesign was all about appealing to the mass market. Although it helped improve sales,
thebrandlostalotofitsquirkiness.Thestrategyisnowtoinjectmorefunintothebrand.””–(The
marke ngweek,Jan2008)
Bright colors and bold fonts used in the packaging are a rac ve and express a 'fruity' feel that
workswellwiththeproduct. PJsalwayshadacolorfulandenjoyablewayofadver sing. Their TV
commercials carried the slogan of – “ Want Fruit? Drink Fruit ”. A very direct slogan, but put
acrossa eranentertainingvideo.
Extractfromthear cle–BrandHealthCheck: PJs,publishedinBrandRepublic(Nov2007)
“SincethePepsiCoacquisi on,therehasbeenanadcampaignfor PJ'sfeaturingthetagline'Want
fruit? Drink fruit', and two rebrands, both handled by Landor. First, the Pete and Johnny concept
was ditched in early 2006 in favour of the PJ Smoothies moniker. A year later, the packaging was
again overhauled, with the name shortened to PJ's, amid concerns that the brand was losing its
quirkyedge.
Recently, the product has suffered from a lack of marke ng support. Figures from Nielsen Media
Research show that the brand was backed with an ad budget of nearly £1m in 2006. So far this
year,ithasreceivedjust£131,409,withnotelevisionadver sing.”
BRAND IDENTITY
14
Pjs main compe tors are Innocent smoothies who stole the lime light from PJs from the very beginning. Be er branding, be er
marke ng and be er promo on were Innocents strong points. They were able to communicate their brand iden ty to the
consumersinawaythat PJswereneverableto.
COMPETITORS
15
SWOT ANALYSIS
Uk’s first original smoothie
brand
Brand iden ty ‐ quirky, fresh,
dedicatedsmoothiemakers
Entered the smoothie market
veryearly
lowprices
1sttolaunchkidssmoothies
1 st s m o o t h i e b ra n d t o
adver seon TV
 Notmadefromfreshfruit
 Weak portrayal of brand
iden ty/image
 Weak communica on of brand
iden tytocustomers
 Growingsmoothiemarket
 Rising awareness of health and
fitness amongst consumers in
the UK
 Uk’s‐5aday‐policy
 Volume of sales are expected
to grow by 23% over 2011 ‐
2016, to a total of 64 million
litersin2016
 Strong consumer brand loyalty
towardsinnocent
 Alternate compe tor in
beverageindustry
 Cost of produc on ea ng into
thesellingprice
S W
O T
16
The market for smoothie consumers consists of
thehealthandwellnessconscious.
In the graph, it is seen that the consump on of
fruits and vegetables varied with age, ascending
from 16‐24 up to 55‐64. All these consumers are
likelytargetsforafreshandhealthysmoothie.
PJ's smoothies failed to take advantage of the
growing health aware genera on. A new and
improved PJ's that used fresh fruits instead of fruit
concentrates could have been the change that the
brandneededtoreposi onitselfinthemarket.
With increasing stress levels in day to day life,
consumers are looking for products to re‐vitalize
and re‐energize themselves. PJ's core benefit is to
provide an energy boost to the consumer. This
factor could have been promoted in the
adver sing strategies and marke ng of the brand
totargetconsumers.
CONSUMER NEEDS AND TRENDS
17
Mul ple theories and diagnos cs have been carried out as to why PJ's were unable to capture the market. Below are a few extracts
from ar cles deba ng the scenario. According to an ar cle published in the Marke ng Week (Jan 2008) it was felt that the brand was
losing its way and that Pepsi co should engage be er with their consumers.
An extract from an ar cle – Not all out of juice just yet (Marke ng Week, 13th Nov 2008)
“David Haseler, planning director at Smith & Milton, the branding agency which helped launch PJ Smoothies in the UK, is less glowing
about PepsiCo's ability to brand.
“PepsiCo didn't understand what it was buying. What is evident is it didn't recognize the value of the brand itself, and clearly a very
important part of the Pete & Johnny brand [the smoothie's brand name before it was rebranded as PJ] was its personality. PepsiCo
assumed it could develop the business in the way it usually does. For PepsiCo, it's not about developing the brand personality, but
much more about trading and distribu on.” he says.”
WHAT WENT WRONG
18
“PJs have been inves ng in the brand recently but, generally over the past nine years there has neither been investment in product
innova on or brand communica ons,” said Rawlins. “They also have completely different brand values to Innocent. We've always been
open to interac ng with consumers and encouraging a one‐to‐one dialogue. (UTalkMarke ng.com, Jan 2008)
According to Sharon Richey managing director, BEcause (Brand Republic, Nov 2007), “PJ's, by comparison, seems overly fussy, confused
and contrived, despite a similar product range. How strange it is that PJ Smoothies came from a similar, family‐oriented, 'from the
neighborhood' approach as Innocent when it launched as Pete & Johnny's, then surrendered to the norms of the market with the
downgrade to the unemo onal PJ's. While PJ's focuses on communica ng its product a ributes ‐ best‐tas ng, best‐value, most
innova ve ‐ Innocent is busy keeping us interested and, more importantly, entertained, confident that quality is the key to brand
longevity.”
“There simply isn't anything to the brand beyond the fruit in the bo le. By contrast, Innocent has done a wide range of things to make
consumers like the company: woolly hats, carbon footprints, recipe books, plan ng trees and village fetes, for example.
But being everything to everyone is not the answer for PJ's. Instead, it should find one meaningful brand truth in which it believes to
differen ate it from the compe on, then champion it through everything it does.” (Dave Wallwork managing director, The Feel Good
Drinks Company‐ Published in Brand Republic, Nov 2007)
WHAT WENT WRONG
19
From the above case history and study, it is clear that the main issue for PJ's smoothies was that they were not able to communicate
their brand image and iden ty in the market. The transi on from an image of a “friendly neighborhood” brand to an unemo onal
commercialbrandwasnotacceptedinconsumer'smindsandthusnoonecouldconnecttothebrandanymore.
A er its acquisi on by Pepsi Co. it lost its fun and honest reputa on and Pepsi Co.'s inability to connect the brand iden ty with their
consumerscrea ngabiggapinthemarket.
Lack of management in design of communica on and environments can damage the
product’s iden ty and result in the collapse of a business
STRATEGIC MANAGEMENT
GENERAL MANAGEMENT
COMMUNICATION
PRODUCTS
ENVIRONMENTS
STRATEGIC MANAGEMENT
GENERAL MANAGEMENT
COMMUNICATION
PRODUCTS
ENVIRONMENTS
CONCLUSION
20
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th
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21
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22
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th
∙ Bo le pj07.jpg [online] Available at <h p://howard1980.files.wordpress.com/2011/10/pj07.jpg> [Accessed on 6 December 2012]
th
∙ Fruit Kick ‐ 070267.jpg [online] Available at <h p://images.mysupermarket.co.uk/ProductsDetailed/67/070267.jpg> [Accessed on 6 December 2012]
th
∙ Fruit Kick ‐ 070205.jpg [online] Available at <h p://images.mysupermarket.co.uk/ProductsDetailed/5/070205.jpg> [Accessed on 6 December 2012]
REFERENCES - IMAGES
23

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Design audit of PJ's Smoothies

  • 1. A Case Study On The Brand’s Strategic Design Management And Why It Failed Adithi M Sarovar Student ID: 1230244 Module: Strategic Design Management and Research Module Code: DM5562
  • 2. Providing a mini fruit bowl in a bottle for UK consumers MISSION
  • 3. CONTENTS INTRODUCTION 1 HOW IT ALL BEGAN 2 OVERSHADOWED 3 BRAND RE-DESIGN 4 WHAT’S YOUR IDENTITY ? 5 PRODUCT LANGUAGE 6 REPOSITIONING 7 DECLINING SALES 8 PRODUCT LIFE CYCLE 9 THE PRODUCT 10 PRICING STRATEGY11 12 THE PLACE 13 PROMOTION 14 BRAND IDENTITY 15 COMPETITORS 16 SWOT ANALYSIS 17 CONSUMER NEEDS AND TRENDS 18|19 WHAT WENT WRONG 20 CONCLUSION 21|22 REFERENCES - TEXT 23 REFERENCES - IMAGES
  • 4. In the present day situa on, new products appear in the market constantly. Several successful brands have given great importance to the design of the business as a whole, than just the func onal aspects of the business. Extensive brand research and market analysisisimpera vetolaythefounda onsofawell‐designedbusiness. More o en than not, businesses fail to succeed. Detailed studies conducted on such cases areanefficientwaytodeterminewhatnottodoinasimilarsitua on. Onesuchbusinessthatrecentlyfailedinthemarketis PJ'sSmoothies. PJ'swasthenumber one smoothie brand in the market in 2003 when the UK smoothie market was worth 69 million. The brand drowned by the end of 2008 when the market was worth almost 150 million. In this case study, an analysis has been made on what went wrong in terms of PJ's design management and strategy; why the brand failed and how it could have been saved with be erdesigndevelopment. INTRODUCTION It takes more than the product itself for a successful brand to be created. 1
  • 5. PJ's was established in 1994 by Harry Cragoe and Patrick Folks and was originally marketed as Pete and Johnny's Smoothies. The founders were trying to create a product language similar to that of Ben n Jerry's, but unlike Ben and Jerry's, Pete and Johnny's are mythical charactersinventedbythefounders. PJ's had the advantage of being the first smoothie brand in the UK. They started selling the product in just 12 stores in 1994, and by 1998 opened its first factory in the UK (before which,manufacturingwasatCalifornia). In 2003, they were the first to launch a smoothie product targeted at children – Froo es, and were also the first smoothie brand to appear on television. The founders invested 4 million pounds into developing the brand and by 2004 they had become the number one smoothie brand in the UK. In 2005, the growing success of PJ's Smoothies was taken over byPepsiCo. HOW IT ALL BEGAN THE PUNCHIEST, FRESHEST, MOST DEDICATED SMOOTHIE MAKERS IN THE LAND 1998 + 2005 ‐ Pepsi Co Buys PJ’s 2
  • 6. Innocent Drinks, a new brand of smoothie was quickly taking the market share away from PJ's with its product language, branding and marke ng techniques. In 2006, Innocent had overshadowed PJ's with a63%marketshare. PJ'srosetothechallengerapidlybyredesigningthepackageandlogoof theirbo ledsmoothie.Thepackswereredesignedtotargetayounger and health conscious genera on. The brand was made to look more energe candexci ng. Newflavorsofsmoothieswerealsointroduced. A flaw in the design here was that PJ's was not a healthy drink. They were made from fruit concentrates and not fresh fruits. This being the case, marke ng it amongst a health‐conscious market was not the best solu on. OVERSHADOWED 63% Others + 2006 REDESIGNED LOGO 2006 3
  • 7. “In an irreverent and cheeky tone, the le ers P and J are now the basis for descriptors for the flavors in the line. Each variant has a naming descriptor that is deriva ve of the feeling you get from the individual product. For example, for the Energy Boost flavor the P andJdescriptorwordsarePowerJump.”(LandorAssociates,n.d.) ThenewpacksdesignedbyLandorAssociateshelpedincreasethesaleson PJ'sby 32% withoutanyactualadver singandmarke ngsupport. BRAND RE-DESIGN 4
  • 8. Consumers feel more a ached to a brand or product when they have a personalconnec onestablishedwithit In the case of Ben n Jerry's, the product is named a er the founders and hence consumers make a connec on with the brand and its founders. The Ben n Jerry brand, have a lot of anecdotes that make up the brand image for itscustomers. Ben and Jerry were fun‐loving, impulsive and playful ‐ quali es that are designed into the brand image, making consumers connect with the founders and hence remain loyal to the brand. PJ's on the other hand, did not add a personal touch to the brand image and hence customers would nothavebeenabletomakeaconnec on toits'funandquirky'image. WHAT’S YOUR IDENTITY ? 5
  • 9. 2006 - 20081998 - 2005 PRODUCT LANGUAGE 6
  • 10. A survey conducted on prices of smoothies (Anon. 2008) showed that most of the customers were hesitant to buy smoothies as they wereexpensive.Basedonthisresearch, PJ'sloweredtheirpricesby30%. “The reposi oning follows a series of successful trials conducted last year. One major mul ple saw sales of PJ's Smoothies more than double when one liter cartons were price marked at £1.99. The new price points have been achieved by focusing on four great tas ngth flavorsthathavebroadmarketappeal.”(TalkingRetail,14 January2008) 42% Consumers for whom price of smoothies was a big barrier SALES NEW PRICE OLD PRICE REPOSITIONING 7
  • 11. Since the brands acquisi on by Pepsi co. in 2005, the drink had been in rapid decline. A seventy percent drop in sales was recorded ‐ from £1.3 Million to £396,000 in 24 weeks to 7 September, according to TNS figures(n.d.) Innocent's marke ng strategies and brand image were rapidly growing and in 2008, the company was responsible for 73% of the smoothie market. Other strong brands like Naked juice, Jamba Juice, Tesco smoothie,andotherownlableswerealsobuildingtheirimage. PJ's weak approach towards design strategy failed to compete with the growing market trends and as a result, Pepsi co. decided to scrap thebrandbytheendof2008andfocusmoreontheirTropicanabrand. DECLINING SALES 2008 73% 8
  • 12. In the Product Life Cycle graph, it is seen that up un l 2004, there was a good upward growth in the sales PJ's. 2004 to 2005 shows a stagnant period for the brand, a er which there is a steady decline in the sales up to 2008, where the brand was discon nued. PRODUCT LIFE CYCLE SALES Introduction Growth Maturity Decline 1994 1998 2004 2005 2006 2007 2008 9
  • 13. “Make things easy with PJ Smoothies – 100% pure fruit conveniently whizzed up and crammed into a bo le.”(Anon.n.d.) The smoothie's core benefit was to provide a psychologicalenergyboosttoitsconsumer. The actual product is a low cost, fruit smoothie that a consumer can buy off the rack. Different flavor combina ons and the original quirky brand image definetheproduct. In terms of the augmented product, PJ's never invested too much towards promo ons and marke ng strategies, which is one of the reasons for thebrandsdeclineinitslateryears. Even though they made a grand entrance into the smoothie sector, and leaped to become the first brand to launch a television ad, the changing market scene demanded more out of a smoothie brand than PJ'swasoffering. THE PRODUCT Psychological Energy Boost Low Cost Off-the-rack Flavor Combinations Quirky Brand Image Vespa Promotion Online Games CORE ACTUAL AUGMENTED 10
  • 14. In a survey conducted in the UK (Anon. 2008), it was seen that the price was a major concern for most smoothie consumers. PJ's smoothie's sales were doubled when their prices were cut downby30percent. The price and quality matrix shows that as compared to other compe tors, PJ's smoothieswereverylowpriced,butalso low in terms of quality. Even a er the slash in prices, PJ's increase in sales did not last for long, which might mean that the price was not the only problem for theproduct. PRICING STRATEGY High Low High Low PRICE QUALITY Pj’s Smoothies Innocent Drinks Tropicana Smoothies Crussh Capri-sun Ribena Tesco Smoothie Sainsbury’s Smoothie Asda Smoothie 11
  • 15. PJ'ssmoothiesweremadeavailableinmostretailchainslikeTesco,Asda,Ocado,Sainsbury's,etc. A bo le of PJ's could be bought off the rack at any me of the day due to the nature of these retail outlets. The foo alls at these retail chains are very high, and so PJ's would have a racted a largenumberofconsumers. But what efforts did the smoothie brand take towards standing out from other products on the rack?Atretailsstores,mul plebrandsarebeingsoldandthebrandiden tycangetfadedintothe clu er of compe on. It is therefore necessary to have branding and packaging that stands out fromtheothers.Itisalsohelpfultodoin‐shopadver singofthebrand. THE PLACE 12
  • 16. “Digital media agency Electric Cake has signed up PJ Smoothies to sponsor its website in a deal that will see the smoothie brand target opinion formers in fashion, design, music, entertainment andmedia. PJ Smoothies will be promoted via a fruit‐machine game on the site, and users have the chance to win prizes. The promo on will last for seven months, during which me there will be a weekly prize of 100 bo les of PJ Smoothies, with further prizes to includeth T‐shirtsandholidays.”(BrandRepublic,5 June2003) The re‐design of the PJ's smoothie's website in 2005 s rred a lot ofinterestinthemedia. An extract from an ar cle published in The Grocer (17 Jan 2005) reads: “Nathan King, PJ Smoothies marke ng manager, said: “Our online ac vity plays an integral part of our fully integrated marke ng campaigns. Alongside our much an cipated 2 million adver sing crea ve, we will be launching online marke ng ini a ves which will enhance the PJs experience for all the smoothie lovers and poten alnewonesinthe UK market.”” Pjs also ed up with the scooter company – Vespa – for some promo onal ac vity in 2006. An online game was designed for the websitere‐launchwhichgavereadersachancetowinaVespa. PROMOTION 2005 WEBSITE REDESIGN 2006 VESPA PROMOTIONS 13
  • 17. Pjssmoothieshadafunandappealingbrandimage.Theywereamongstthepopularmainstream brandsandpromotedthemselveswithaquirkyandenthusias cvisuallanguage. The ini al logo and packaging did not have much of their quirky aspect highlighted, but the redesigned logo and packaging tried to capture the essence of the brand and its ini al inten ons ofbeingafunbrand. “Derek Johnston, crea ve director of Landor Associates, which worked on both redesigns, says: “The first redesign was all about appealing to the mass market. Although it helped improve sales, thebrandlostalotofitsquirkiness.Thestrategyisnowtoinjectmorefunintothebrand.””–(The marke ngweek,Jan2008) Bright colors and bold fonts used in the packaging are a rac ve and express a 'fruity' feel that workswellwiththeproduct. PJsalwayshadacolorfulandenjoyablewayofadver sing. Their TV commercials carried the slogan of – “ Want Fruit? Drink Fruit ”. A very direct slogan, but put acrossa eranentertainingvideo. Extractfromthear cle–BrandHealthCheck: PJs,publishedinBrandRepublic(Nov2007) “SincethePepsiCoacquisi on,therehasbeenanadcampaignfor PJ'sfeaturingthetagline'Want fruit? Drink fruit', and two rebrands, both handled by Landor. First, the Pete and Johnny concept was ditched in early 2006 in favour of the PJ Smoothies moniker. A year later, the packaging was again overhauled, with the name shortened to PJ's, amid concerns that the brand was losing its quirkyedge. Recently, the product has suffered from a lack of marke ng support. Figures from Nielsen Media Research show that the brand was backed with an ad budget of nearly £1m in 2006. So far this year,ithasreceivedjust£131,409,withnotelevisionadver sing.” BRAND IDENTITY 14
  • 18. Pjs main compe tors are Innocent smoothies who stole the lime light from PJs from the very beginning. Be er branding, be er marke ng and be er promo on were Innocents strong points. They were able to communicate their brand iden ty to the consumersinawaythat PJswereneverableto. COMPETITORS 15
  • 19. SWOT ANALYSIS Uk’s first original smoothie brand Brand iden ty ‐ quirky, fresh, dedicatedsmoothiemakers Entered the smoothie market veryearly lowprices 1sttolaunchkidssmoothies 1 st s m o o t h i e b ra n d t o adver seon TV  Notmadefromfreshfruit  Weak portrayal of brand iden ty/image  Weak communica on of brand iden tytocustomers  Growingsmoothiemarket  Rising awareness of health and fitness amongst consumers in the UK  Uk’s‐5aday‐policy  Volume of sales are expected to grow by 23% over 2011 ‐ 2016, to a total of 64 million litersin2016  Strong consumer brand loyalty towardsinnocent  Alternate compe tor in beverageindustry  Cost of produc on ea ng into thesellingprice S W O T 16
  • 20. The market for smoothie consumers consists of thehealthandwellnessconscious. In the graph, it is seen that the consump on of fruits and vegetables varied with age, ascending from 16‐24 up to 55‐64. All these consumers are likelytargetsforafreshandhealthysmoothie. PJ's smoothies failed to take advantage of the growing health aware genera on. A new and improved PJ's that used fresh fruits instead of fruit concentrates could have been the change that the brandneededtoreposi onitselfinthemarket. With increasing stress levels in day to day life, consumers are looking for products to re‐vitalize and re‐energize themselves. PJ's core benefit is to provide an energy boost to the consumer. This factor could have been promoted in the adver sing strategies and marke ng of the brand totargetconsumers. CONSUMER NEEDS AND TRENDS 17
  • 21. Mul ple theories and diagnos cs have been carried out as to why PJ's were unable to capture the market. Below are a few extracts from ar cles deba ng the scenario. According to an ar cle published in the Marke ng Week (Jan 2008) it was felt that the brand was losing its way and that Pepsi co should engage be er with their consumers. An extract from an ar cle – Not all out of juice just yet (Marke ng Week, 13th Nov 2008) “David Haseler, planning director at Smith & Milton, the branding agency which helped launch PJ Smoothies in the UK, is less glowing about PepsiCo's ability to brand. “PepsiCo didn't understand what it was buying. What is evident is it didn't recognize the value of the brand itself, and clearly a very important part of the Pete & Johnny brand [the smoothie's brand name before it was rebranded as PJ] was its personality. PepsiCo assumed it could develop the business in the way it usually does. For PepsiCo, it's not about developing the brand personality, but much more about trading and distribu on.” he says.” WHAT WENT WRONG 18
  • 22. “PJs have been inves ng in the brand recently but, generally over the past nine years there has neither been investment in product innova on or brand communica ons,” said Rawlins. “They also have completely different brand values to Innocent. We've always been open to interac ng with consumers and encouraging a one‐to‐one dialogue. (UTalkMarke ng.com, Jan 2008) According to Sharon Richey managing director, BEcause (Brand Republic, Nov 2007), “PJ's, by comparison, seems overly fussy, confused and contrived, despite a similar product range. How strange it is that PJ Smoothies came from a similar, family‐oriented, 'from the neighborhood' approach as Innocent when it launched as Pete & Johnny's, then surrendered to the norms of the market with the downgrade to the unemo onal PJ's. While PJ's focuses on communica ng its product a ributes ‐ best‐tas ng, best‐value, most innova ve ‐ Innocent is busy keeping us interested and, more importantly, entertained, confident that quality is the key to brand longevity.” “There simply isn't anything to the brand beyond the fruit in the bo le. By contrast, Innocent has done a wide range of things to make consumers like the company: woolly hats, carbon footprints, recipe books, plan ng trees and village fetes, for example. But being everything to everyone is not the answer for PJ's. Instead, it should find one meaningful brand truth in which it believes to differen ate it from the compe on, then champion it through everything it does.” (Dave Wallwork managing director, The Feel Good Drinks Company‐ Published in Brand Republic, Nov 2007) WHAT WENT WRONG 19
  • 23. From the above case history and study, it is clear that the main issue for PJ's smoothies was that they were not able to communicate their brand image and iden ty in the market. The transi on from an image of a “friendly neighborhood” brand to an unemo onal commercialbrandwasnotacceptedinconsumer'smindsandthusnoonecouldconnecttothebrandanymore. A er its acquisi on by Pepsi Co. it lost its fun and honest reputa on and Pepsi Co.'s inability to connect the brand iden ty with their consumerscrea ngabiggapinthemarket. Lack of management in design of communica on and environments can damage the product’s iden ty and result in the collapse of a business STRATEGIC MANAGEMENT GENERAL MANAGEMENT COMMUNICATION PRODUCTS ENVIRONMENTS STRATEGIC MANAGEMENT GENERAL MANAGEMENT COMMUNICATION PRODUCTS ENVIRONMENTS CONCLUSION 20
  • 24. REFERENCES - TEXT ∙ UK Distributor for ICETRO So Serve and Slush Machines, Saturday, December 8th – 2012 [Online] Available at th <h p://www.northpoleinvestments.co.uk/distributors.php> [Accessed on 7 Nov 2012] th ∙ Wi y words for the U.K.'s smoothie originator, Landor Associates, n.d. [accessed on 9 November 2012] th ∙ PJ's Smoothies reposi oning with lower price points, 14 Jan 2008 [online] Available at < h p://www.talkingretail.com/products/product‐news/pj‐s‐smoothies‐ th reposi oning‐with‐lower‐price‐points> [Accessed on 9 November 2012] ∙ HSE Physical Ac vity and Fitness 2008 th ∙ PJ Smoothies new website, The Grocer, 17 Jan 2005 [online] available at <h p://www.thegrocer.co.uk/topics/pj‐smoothies‐new‐website/99330.ar cle> th [Accessed on 9 November 2012] th th ∙ Win a Vespa! The metro, 19 May 2006 [online] Available at <h p://metro.co.uk/2006/05/19/win‐a‐vespa‐81247/> [Accessed on 13 December 2012] th ∙ PJ Smoothies Vespa game, n.d. [online] Available at < h p://www.onnpoint.co.uk/games‐flash‐vespa.htm> [Accessed on 9 November 2012] ∙ Smoothies for the masses, The marke ng week, Jan 2008 [online] Available at < h p://www.marke ngweek.co.uk/smoothies‐for‐the‐masses/2059444.ar cle> [Accessed on14th December 2012] ∙ The marke ng secrets behind innocent drinks, UTalkmarke ng.com , Jan 2008 [online] Available th at<h p://www.utalkmarke ng.com/Pages/Ar cle.aspx?Ar cleID=4113&Title=The_marke ng_secrets_behind_Innocent_Drinks> [Accessed on 9 November 2012] th ∙ Brand Health Check: PJs, published in Brand Republic (Nov 2007) [online] Available at<h p://www.brandrepublic.com/opinion/769890/> [Accessed on 9 November 2012] ∙ PJ Smoothies rebrands | News | Design Week. 2012. PJ Smoothies rebrands | News | Design Week. [ONLINE] Available at: h p://www.designweek.co.uk/news/pj‐ smoothies‐rebrands/1134876.ar cle. [Accessed 11 December 2012]. ∙ Tv spots and commercials. ‐ PJ SMOOTHIES ‐ RASPBERRIES. 2012. Tv spots and commercials. ‐ PJ SMOOTHIES ‐ RASPBERRIES. [ONLINE] Available at: h p://www.tvspots.tv/video/42335/PJ‐SMOOTHIES‐‐RASPBERRIES. [Accessed 11 December 2012]. ∙ Alpha Tribes: Innocent Drinks and PJ Smoothies | New Brand Tribalism ‐ News and Views. 2012. Alpha Tribes: Innocent Drinks and PJ Smoothies | New Brand Tribalism ‐ News and Views. [ONLINE] Available at: h p://www.newbrandtribalism.com/2010/07/09/alpha‐tribes‐innocent‐drinks‐and‐pj‐smoothies‐pepsi/. [Accessed 11 December 2012]. ∙ Not all out of juice just yet | Trends | Marke ng Week. 2012. Not all out of juice just yet | Trends | Marke ng Week. [ONLINE] Available at: h p://www.marke ngweek.co.uk/not‐all‐out‐of‐juice‐just‐yet/2063304.ar cle. [Accessed 11 December 2012]. ∙ BEARING FRUIT? ‐ CNBC Business. 2012. BEARING FRUIT? ‐ CNBC Business. [ONLINE] Available at: h p://www.cnbcmagazine.com/story/bearing‐fruit/1105/1/. [Accessed 11 December 2012]. 21
  • 25. REFERENCES - TEXT ∙ Emerald | Nutri on & Food Science | PJ's Smoothies – the UK's number one smoothie company. 2012. Emerald | Nutri on & Food Science | PJ's Smoothies – the UK's number one smoothie company. [ONLINE] Available at: h p://www.emeraldinsight.com/journals.htm?issn=0034‐ 6659&volume=35&issue=3&ar cleid=1501572&show=html. [Accessed 11 December 2012]. ∙ BBC NEWS | Business | PJ Smoothies sells out to Pepsi. 2012. BBC NEWS | Business | PJ Smoothies sells out to Pepsi. [ONLINE] Available at: h p://news.bbc.co.uk/1/hi/business/4286825.stm. [Accessed 11 December 2012]. ∙ Marke ng Concepts Essay by Mightystudents.com. 2012. Marke ng Concepts Essay by Mightystudents.com. [ONLINE] Available at: h p://www.mightystudents.com/essay/Marke ng.Concepts.essay.7730#. [Accessed 11 December 2012]. ∙ PepsiCo to scrap PJ Smoothies | In‐Depth Analysis | Marke ng Week. 2012. PepsiCo to scrap PJ Smoothies | In‐Depth Analysis | Marke ng Week. [ONLINE] Available at: h p://www.marke ngweek.co.uk/pepsico‐to‐scrap‐pj‐smoothies/2063155.ar cle. [11 December 2012]. ∙ Innocent Marke ng. 2012. Innocent Marke ng. [ONLINE] Available at: h p://www.slideshare.net/petyang/innocent‐marke ng. [Accessed 18 December 2012]. ∙ Book markable URL intermediate page. 2012. Bookmarkable URL intermediate page. [ONLINE] Available at: h p://web.ebscohost.com/ehost/detail?vid=4&hid=13&sid=1e78c0c7‐1155‐4852‐92b5‐ 50a8d5c2fc9b%40sessionmgr13&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=27771110. [Accessed 18 December 2012]. ∙ PJ Smoothies' new website | News | The Grocer. 2012. PJ Smoothies' new website | News | The Grocer. [ONLINE] Available at: h p://www.thegrocer.co.uk/topics/pj‐smoothies‐new‐website/99330.ar cle. [Accessed 18 December 2012]. ∙ How to Market a Smoothie Bar | Chron.com. 2012. How to Market a Smoothie Bar | Chron.com. [ONLINE] Available at: h p://smallbusiness.chron.com/market‐ smoothie‐bar‐13648.html. [Accessed 18 December 2012]. 22
  • 26. ∙ PJ Smoothies logo ‐ Luke Ghanizadeh‐PJ Smoothies [online] Available at <h p://designatatrium.co.uk/designer_por olio_project.asp?ID=38&PROJECT_ID=80 > th [Accessed on 6 December 2012] th ∙ pepsi_pj_smoothie_landor.jpg [online] Available at < h p://popsop.ru/wp‐content/uploads/pepsi_pj_smoothie_landor.jpg> [Accessed on 6 December 2012] ∙ PJ Smoothie bo le2.JPG [online] Available at < h p://3.bp.blogspot.com/_NexKNe‐9e1Q/SbBzDp4yKrI/AAAAAAAABFU/1Xcs9O9R3cE/s1600‐h/bo le2.JPG> th [Accessed on 6 December 2012] th ∙ SJC: PJ Smoothies Bo le 1‐ Their Logo [online] Available at < h p://sam‐carter.blogspot.co.uk/2009/03/pj‐smoothies‐their‐logo.html> [Accessed on 6 December 2012] ∙ SJC: PJ Smoothies Bo le 2‐ Their Logo [online] Available at <h p://designatatrium.co.uk/designer_por olio_project.asp?ID=38&PROJECT_ID=80 > [Accessed on th 6 December 2012] ∙ innocent drinks logo‐1.jpg [online] Available at < h p://www.enforbusiness.com/sites/default/files/imagecache/feature_full/innocent%20drinks%20logo‐1.jpg> th [Accessed on 6 December 2012] th ∙ tropicana‐logo.jpg [online] Available at < h p://megawa pr.files.wordpress.com/2010/03/tropicana‐logo.jpg > [Accessed on 6 December 2012] th ∙ Naked Juice Logo af27.jpg [online] Available at < h p://www.an oxidant‐fruits.com/wp‐content/uploads/2011/03/af27.jpg> [Accessed on 6 December 2012] th ∙ biz‐coca‐cola_logo‐PJ Smoothies [online] Available at < h p://mix206.com/wp‐content/uploads/2010/06/biz‐coca‐cola_logo5.jpg > [Accessed on 6 December 2012] th ∙ pepsico20foodservice20logo [online] Available at < h p://24thehardway.com/wp‐content/uploads/2009/07/pepsico20foodservice20logo.jpg> [Accessed on 6 December 2012] th ∙ pjsmoothies.jpg Old[online] Available at < h p://www.fdpfinefoods.co.uk/images/brands/pjsmoothies.jpg > [Accessed on 6 December 2012] th ∙ Logo ‐ tesco.jpg [online] Available at < h p://www.logostage.com/logos/tesco.jpg> [Accessed on 6 December 2012] th ∙ JambaJuiceLogo.png [online] Available at <h p://www.wikinvest.com/images/5/5b/JambaJuiceLogo.png > [Accessed on 6 December 2012] th ∙ Pepsico_eps.png [online] Available at < h p://sharealogo.com/wp‐content/uploads/Pepsico_eps.png > [Accessed on 6 December 2012] th ∙ probio.jpg [online] Available at <h p://columnwest.files.wordpress.com/2006/05/probio.jpg?w=450> [Accessed on 6 December 2012] th ∙ games‐flash‐PJ.jpg [online] Available at < h p://www.onnpoint.co.uk/images/games‐flash‐PJ.jpg> [Accessed on 6 December 2012] th ∙ Bo le ‐ 007272.jpg [online] Available at <h p://images.mysupermarket.co.uk/ProductsDetailed/72/007272.jpg > [Accessed on 6 December 2012] th ∙ Website ‐ pj‐range‐21.jpg [online] Available at <h p://ladipprd.files.wordpress.com/2008/12/pj‐range‐21.jpg?w=497 > [Accessed on 6 December 2012] th ∙ Bo le‐ pj08.jpg [online] Available at <h p://howard1980.files.wordpress.com/2011/10/pj08.jpg?w=500> [Accessed on 6 December 2012] ∙ innocent_bigknit_smoothie_hats.jpg [online] Available at th <h p://thekni er.themakingspot.com/sites/thekni er.themakingspot.com/files/inline_images/innocent_bigknit_smoothie_hats.jpg> [Accessed on 6 December 2012] th ∙ Bo le pj07.jpg [online] Available at <h p://howard1980.files.wordpress.com/2011/10/pj07.jpg> [Accessed on 6 December 2012] th ∙ Fruit Kick ‐ 070267.jpg [online] Available at <h p://images.mysupermarket.co.uk/ProductsDetailed/67/070267.jpg> [Accessed on 6 December 2012] th ∙ Fruit Kick ‐ 070205.jpg [online] Available at <h p://images.mysupermarket.co.uk/ProductsDetailed/5/070205.jpg> [Accessed on 6 December 2012] REFERENCES - IMAGES 23