Scsdcd

Ocean Spray Cranberries in 2003

Romelee Lantano

BMGT 500

July 12, 2011

Case Title: Ocean Spray Cranberries in 2003: At the Crossroads

Case Assignment: Identify all parts of Analysis

I SHORT CYCLE PROCESS

Who: (name[s]) Ocean Spray Cranberries (OSC)

(position[s]) Market leader in cranberry industry

Main Problem(s) or Decisional Issue(s)

What: How to address marketing difficulties and simultaneously ease price pressure confronting its grower-members

Why:

 Mounting disaffection among OSC’s grower-members

 Highly competitive market

 Rapid production expansion

 New entrants of fruit juice and carbonated companies

 Increasing productivity causing production growing faster than demand

 Loss of production stability

 Unstable market conditions

 Loss of distribution relationships

 Imbalance in capacity to produce

 Multiple lawsuits regarding exercising anti-competitive control and price-fixing

When: as soon as possible or by the next annual meeting

II LONG CYCLE PROCESS

A. Case Data Analysis

Internal:

STRATEGIC APPROACH:

 Creating a differentiation-based advantage keyed to such features as higher quality, wide product selection, value-added services, more attractive styling, innovative cranberry products

STRATEGY ELEMENTS:

 Incorporate as agricultural cooperative: three produces join forces to enhance marketing activities

 Develop innovative cranberry products (example: introduce cocktail, first juice blend)

 Develop new flavours in product line yearly

 Diversified membership to include grapefruit growers from Florida’s Indian River region

 Leading bottled grapefruit juices within country through ability to develop and market new and innovative juice blends

 Rationalized its workforce, employing 2,000 people

 $7 million expansion to facilitate its processing capacity for white cranberries

 increase warehouse efficiency through investments in information...