BMP - Week Two_Pablo Martin_Minute Maid Co.

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Feb 20, 2024

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1 BMP Week Two Martin BMP - Week Two Luis Pablo Martin Virgilio 2023SP Marketing Management (MKT-5093-071) Dr. Olson March 1st, 2023

2 BMP Week Two Martin Macro-environmental analysis . Firstly, it is important to note that Minute Maid is a subsidiary of the Coca-Cola Company, which is a global leader in the beverage industry "Our global scale, consumer insights and ability to innovate quickly enables us to create a portfolio of beverages that meet people's evolving preferences and lifestyles." (Coca-Cola. (2022) Minute Maid primarily offers a range of juice products and is known for its orange juice. Now, let's analyze the macro-environmental factors that could influence the continued success of Minute Maid: Economic Factors: Economic factors can significantly impact the sales of Minute Maid. A weak economy could result in a decrease in disposable income, leading to lower sales of premium juice products like Minute Maid. Similarly, a strong economy could increase the demand for premium juice products. Technological Factors: "Technological advancements have a positive impact on the production process of Minute Maid" (Source: Research Leap, "A Study on Marketing Environment Analysis of Minute Maid Pulpy Orange in India"), allowing the company to improve efficiency and reduce costs. Moreover, innovations in packaging technology can enhance the shelf life of Minute Maid's products, leading to an increase in sales. Political Factors: Government regulations can have a significant impact on Minute Maid's operations. For instance, government policies and regulations related to food safety and labeling can impact the company's production process and marketing efforts. Social Factors: Consumer preferences and trends can significantly impact the sales of Minute Maid. Health-conscious consumers are increasingly choosing healthy and natural drinks over sugary drinks, which could impact the sales of Minute Maid's sugary juice products. The trend towards eco-friendly packaging could also have an impact on Minute Maid's packaging choices. Environmental Factors: Climate change can affect the supply of oranges, which is the main ingredient used in Minute Maid's orange juice. Changes in weather patterns could lead to a decrease in the supply of oranges, leading to an increase in prices and a decrease in sales.

3 BMP Week Two Martin Legal Factors: Legal factors such as patent laws and intellectual property rights can impact Minute Maid's operations. Any legal disputes or infringement claims could result in significant losses for the company. In conclusion, economic, technological, and social factors are the most important macro- environmental factors that could impact the continued success of Minute Maid. While the company has a strong brand and market position, it needs to continue innovating and adapting to changing consumer preferences and trends to remain competitive in the long term. Market analysis . Minute Maid primarily offers a range of juice products, with a focus on orange juice. The juice market is highly competitive, with several major players vying for market share. Product Life Cycle Model: The juice market is currently in the maturity stage of the product life cycle. This means that growth rates have slowed down, and there is intense competition among existing players. However, there is still room for growth in niche markets and in emerging markets. Segment Characteristics: The juice market can be segmented into several categories based on factors such as flavor, packaging, and price. Here are some major developments affecting growth rates and changes in demand for Minute Maid: Health and Wellness: "The global juice market is anticipated to witness growth due to increasing health consciousness and rising demand for healthy beverages." (Deloitte. (2020) There is a growing demand for healthier beverage options, including natural and organic juices, as consumers become more health conscious. Minute Maid has responded to this trend by launching several products that cater to health-conscious consumers, such as their "Simply" line of juices which are made with minimal ingredients and no added preservatives. Sustainability: There is a growing trend towards eco-friendly packaging, and consumers are increasingly looking for products that have a smaller environmental footprint. Minute Maid has taken steps to address this trend by using recycled materials in their packaging and reducing the amount of plastic used in their bottles. Convenience: Busy lifestyles have led to a growing demand for convenient on-the-go juice products. Minute Maid has responded to this trend by launching several products that cater to consumers who are always on-the-go, such as their Minute Maid To-Go product line.

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4 BMP Week Two Martin Innovation: In order to stay competitive in the crowded juice market, companies need to continue to innovate and introduce new products. Minute Maid has been able to stay relevant by introducing new flavors and varieties, such as their "Pomegranate Blueberry" juice. Overall, the juice market is highly competitive, and companies like Minute Maid need to continue to innovate and respond to changing consumer preferences in order to maintain their market position and drive growth. Industry Analysis . Force Description Analysis Threat of New Entrants The degree to which new competitors can enter the market and disrupt existing players. Medium Bargaining Power of Suppliers The degree of control suppliers have over the prices of raw materials and inputs. Low Bargaining Power of Buyers The degree of control buyers have over the prices they pay for products and services. High Threat of Substitute Products The degree to which alternative products can meet similar customer needs. Medium Competitive Rivalry The degree of competition between existing players in the industry. High Threat of New Entrants: The fruit juice industry has a relatively low barrier to entry, which can make it easier for new players to enter the market. However, established brands like Minute Maid have a strong brand reputation and a wide distribution network that can make it difficult for new entrants to gain market share quickly. Thus, the threat of new entrants is medium. Bargaining Power of Suppliers: The fruit juice industry is highly dependent on the supply of raw materials such as fruits, which can affect the cost of production. However, the suppliers' bargaining power is relatively low as there are numerous suppliers, and fruit juices are not a primary source of revenue for fruit suppliers. Additionally, fruit juice companies like Minute Maid have long-term contracts with their suppliers, which can provide stability in the supply chain.

5 BMP Week Two Martin Bargaining Power of Buyers: Buyers have a high bargaining power in the fruit juice industry, as they have a wide range of products to choose from, and fruit juices are not essential products. Additionally, there is a growing trend towards healthier beverages, which can increase the demand for alternative products such as plant-based milk or kombucha. Threat of Substitute Products: The threat of substitute products is medium, as customers can choose from a wide range of healthy beverages, such as water, tea, and coffee. Additionally, some customers may prefer to consume fresh fruits instead of fruit juices, which can reduce the demand for packaged fruit juices. Competitive Rivalry: The fruit juice industry is highly competitive, with numerous established players vying for market share. Minute Maid faces intense competition from other global brands like Tropicana, Simply Orange, and Ocean Spray, as well as regional and local brands. "Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes." (Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020) Additionally, the industry is constantly evolving, with new product developments and changing consumer preferences. This results in high competitive rivalry among existing players. Key Industry Characteristics:  Highly competitive with numerous established players fighting for market share  Growing demand for healthy and natural beverages  Relatively low barriers to entry, but strong brand reputation and distribution networks can create barriers to new entrants  Dependence on the supply of raw materials, namely fruits  Increasing concern over the sugar content in fruit juices  Technological advancements in production and packaging Competitor Analysis . In the juice market, there are several major players vying for market share, including Coca- Cola (which owns Minute Maid), PepsiCo, and Tropicana (owned by PepsiCo). Here's an analysis of how these competitors are performing:

6 BMP Week Two Martin Coca-Cola/Minute Maid: As the parent company of Minute Maid, Coca-Cola has a significant presence in the juice market. Minute Maid is one of the top orange juice brands in the US, with a strong market position and a wide range of products. Minute Maid has been successful in launching new products and flavors that cater to changing consumer preferences, such as their "Simply" line of juices that is made with minimal ingredients and has no added preservatives. In addition, Coca-Cola's strong distribution network gives Minute Maid an advantage in terms of product availability. PepsiCo/Tropicana: Tropicana is one of the top juice brands in the US, owned by PepsiCo. Tropicana has a wide range of products and has been successful in launching new flavors and varieties. However, Tropicana has faced some challenges in recent years due to declining demand for orange juice and increasing competition in the juice market. PepsiCo has responded to these challenges by diversifying their beverage portfolio and focusing on healthier beverage options, such as their Naked Juice brand. Other Competitors: There are several other competitors in the juice market, including smaller brands and private label products. These competitors tend to focus on niche markets or offer lower-priced alternatives to major brands. Some of these competitors have been successful in catering to health-conscious consumers by offering natural and organic juice options. Overall, Minute Maid has a strong market position in the juice market, particularly in the orange juice category. However, competition is intense and companies like Tropicana are actively trying to gain market share through product innovation and diversification. Smaller brands and private label products also pose a threat by offering lower-priced alternatives. In order to remain competitive, Minute Maid needs to continue to innovate and differentiate themselves through product offerings, marketing, and distribution SWOT Analysis Strengths Weaknesses 1. Strong brand recognition and reputation 1. Dependence on a single product line (fruit juices) 2. Wide distribution network globally 2. Limited presence in emerging markets 3. Continuous innovation and product development 3. Vulnerability to seasonal fluctuations in fruit

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7 BMP Week Two Martin Strengths Weaknesses supply 4. Strong financial performance and profitability 4. Higher pricing compared to competitors 5. Diversified product portfolio within the fruit juice category 5. Limited presence in non-fruit juice categories Opportunities Threats 1. Growing demand for healthy beverages 1. Intense competition in the fruit juice market 2. Expansion into emerging markets 2. Increasing concerns over sugar content in fruit juices 3. Acquisition or partnership with complementary brands 3. Changing consumer preferences and trends 4. Increasing demand for organic and natural products 4. Fluctuating prices of fruit commodities 5. Technological advancements in production and packaging 5. Regulatory changes and compliance requirements Strengths: 1. Minute Maid has a strong brand recognition and reputation globally due to its long- standing history in the fruit juice market. 2. Minute Maid has a wide distribution network across the globe, which enables it to reach a large customer base. 3. The company invests heavily in continuous innovation and product development, which keeps it ahead of its competitors. 4. Minute Maid has a strong financial performance and profitability, which indicates its stability and market leadership. 5. The company has a diversified product portfolio within the fruit juice category, which allows it to cater to different consumer preferences. Weaknesses: 1. Minute Maid is highly dependent on a single product line, i.e., fruit juices, which makes it vulnerable to fluctuations in the fruit supply chain.

8 BMP Week Two Martin 2. The company has limited presence in emerging markets, which restricts its growth potential. 3. Minute Maid is vulnerable to seasonal fluctuations in fruit supply, which can impact its operations and product availability. 4. The pricing of Minute Maid products is higher compared to its competitors, which can make it less attractive to price-sensitive customers. 5. The company has limited presence in non-fruit juice categories, which limits its diversification potential. Opportunities: 1. There is a growing demand for healthy beverages, which provides an opportunity for Minute Maid to expand its customer base. 2. Expansion into emerging markets can help the company tap into new growth opportunities. 3. Acquisition or partnership with complementary brands can help Minute Maid diversify its product portfolio and expand its market presence. 4. The increasing demand for organic and natural products can be leveraged by Minute Maid to cater to changing consumer preferences. 5. Technological advancements in production and packaging can help the company improve its efficiency and reduce costs. Threats: 1. The fruit juice market is highly competitive, with numerous established players vying for market share, which can impact Minute Maid's market position. 2. There are increasing concerns over the sugar content in fruit juices, which can affect consumer perception of the brand. 3. Changing consumer preferences and trends can impact the demand for Minute Maid products and require the company to adapt quickly to remain relevant. 4. Fluctuating prices of fruit commodities can impact the cost of production and affect profitability. 5. Regulatory changes and compliance requirements can increase operational costs and affect the company's ability to operate. "The Juice HACCP regulation requires all domestic and foreign processors of packaged juice to evaluate their processing operations

9 BMP Week Two Martin using a Hazard Analysis and Critical Control Point (HACCP) approach." (U.S. Food and Drug Administration. (n.d.) References Coca-Cola. (2022). About us. https://www.coca-colacompany.com/company/about-us

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10 BMP Week Two Martin Deloitte. (2020). Juice market - global industry analysis, size, share, growth, trends and forecast 2020-2030. Deloitte Insights. https://www2.deloitte.com/content/dam/insights/us/articles/7585_Juice-market/DI_Juice- market.pdf Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic management: Concepts and cases: competitiveness and globalization (13th ed.). Cengage Learning. U.S. Food and Drug Administration. (n.d.). Juice HACCP regulation & guidance. https://www.fda.gov/food/food-safety-modernization-act-fsma/juice-haccp-regulation- guidance

BMP - Week Two_Pablo Martin_Minute Maid Co.

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