Rtd Fruit Drinks

Market Attractiveness Factors for RTD Fruit Drinks

Case Analysis 2—Category Attractiveness Analysis

Customer needs and behavior

Are there unmet or underserved needs we can satisfy? Some possible customer needs we can meet would be to use plastic bottle choices as an eco-friendly alternative to our current glass products. To appeal to the “on the go” segment of the market, we can introduce a powdered form of our product that can be added to bottled water. Consumers may prefer to have an option to purchase our products in a larger container than what is currently offered, and we can always introduce new flavors and release products that contain less sugar. Consumers are also becoming more “health-conscious” and looking for products that are healthier alternatives to sodas or that are deemed to be natural/organic; along these lines Snapple may want to consider introducing a drink product that acts as a meal replacement, or to develop energy-enhancing and/or sports drink products, to better cater to health-conscious consumers.

Market or market segment size and growth rate

Market potential in units, revenue, number of prospective customers: The volume of the juice market in the US alone in 2009 reached 16,021,1 million liters, with fruit drinks accounting for 33.7% of the market. The US comprises 30.8% of the global juice market, with Europe accounting for 46.6%, Asia-Pacific 16.6%, and the rest of the world currently consuming 6% of the juice market. In terms of revenue, the US market is forecasted to achieve $22,038.6 million in the juice market by 2014, and had generated $21,366.0 million by 2009. The US population has been showing increases of approximately 1.0% per year, with a population of 307.2 million in 2009.

Growth rate in units, revenue, number of prospective customers: The volume of juices sold in the US market grew by 1.8% from 2005-2009, and is forecasted to increase its volume by 1.7%, from 16,021.1 million liters in 2009 to 17,454.4 million...