Ocean Spray

Juices
Table of Contents
Executive Summary ........................................................................................................................... 2
Introduction ....................................................................................................................................... 2
Company Summary ........................................................................................................................... 2
Mission........................................................................................................................................................................ 2
Vision .......................................................................................................................................................................... 2
About the company .................................................................................................................................................. 2
Industry overview............................................................................................................................... 3
SWOT Analysis .................................................................................................................................. 4
Strength ...................................................................................................................................................................... 4
Weakness .................................................................................................................................................................... 4
Opportunities ............................................................................................................................................................ 4
Threats ........................................................................................................................................................................ 4
Marketing .......................................................................................................................................... 5
Branding ..................................................................................................................................................................... 5
Market Segmentation................................................................................................................................................ 5
Competition ............................................................................................................................................................... 7
Positioning ................................................................................................................................................................. 7
New products ............................................................................................................................................................ 7
Marketing Mix ................................................................................................................................... 8
Product ....................................................................................................................................................................... 8
Pricing ......................................................................................................................................................................... 8
Placement ................................................................................................................................................................... 8
Promotion .................................................................................................................................................................. 8
Recommendation .............................................................................................................................. 9
Conclusion ......................................................................................................................................... 9

Reference ................................................................................................................................. 10

OCEAN SPRAY JUICES 1

Executive Summary
Ocean spray is an agricultural cooperative which consists of growers of cranberries and grapefruits
and has around 700 growers currently. They have passed the billion-dollar mark in the sales of
cranberry juices and is planning to expand their market to other countries to cater to a larger market
and also increase their product line by expanding the variety of flavors of juices. They have a well-
established market in Australia and has 90 percent market share of cranberry juices.

Ocean spray juices are planning to expand their product lines which will include three new varieties
of juices and juice blends namely raspberry juice, blueberry juice and a berry blend which consists of
cranberry and blueberry. The expansion of the product lines will be funded by the owners and the
internally generated cash flows. The potential target market has been identified which mostly
consists of the current market and due to the increase in product line there is a potential for a wider
market. This plan will help generate profits in the upcoming years

Introduction
Ocean spray is an agricultural cooperative formed in 1930 and it consists of growers of cranberries
and grape fruits and currently has around 700 growers all around the world. The cooperative
employs more than 2000 people and has sales of 1.2 billion. Their products mainly consist of
cranberry juices and cranberry based products. Ocean sprays has had a number of innovations
which includes first juice blends and first juice boxes. It was initially started by three cranberry
growers who wanted to expand their market in cranberries.

Company Summary
Mission
The mission of Oceans spray juices is to connect farmers to families for a better life. They are
committed to a healthier planet full of healthier people.

Vision
Ocean spray juices are committed to sustainably grow 100 percent of their fruit by 2020.

About the company

The Ocean spray commenced in 1930 when 3 independent cranberry growers namely Marcus
Urann, John Makepeace and Elizabeth Lee worked together to create innovative products with the
fruit they loved. Later the company flourished and added facilities, plants and new growers. By the
nineties the ocean spray became a billion-dollar company and changed the face of cranberry juices

OCEAN SPRAY JUICES 2

forever. The various products they sell currently are various varieties of cranberries such as classic
cranberry, Pink cranberry, 100% juice cranberry and diet cranberry juice.1

Industry overview
The international juice market currently has had a market change as consumers are more focused on
healthy changes such as nutritional benefits and less sugar. The industry is emerging with new
players which focus on varied taste, flavors and preferences as per region. Another trend that can be
seen is the variety of blend juices that are in the market. In order to give competition several
competitors are trying to capture the mass as well as premium consumers in order to capture the
market. It can also be noticed that juices with antioxidants and acai berries are expected to increase
popularity by 2021. There are also growth opportunities for diet juices and juices with no
sweeteners. The leading players in the global markets are Welch, Del Monte, PepsiCo, coco-cola co,
Dr pepper Snapple group inc, Nestle and Citrus world.

However, in the Australian market the juice market is different from international markets. There is
extreme competition between the local and international fruit juice manufacturers. Goldstein
research analyst has forecasted that the fruit juice market is expected to reach USD 1.3 billion by
2025. The key factors that are expected to increase the growth of Australian fruit juice market are
rising health concerns, huge packaging industry, research activities in the beverages industry and
rising farming of fruits.

1
(Barbara, 1985)
OCEAN SPRAY JUICES 3
SWOT Analysis
Strength
 Ocean spray juices has attained 90 percent share in Australia for the cranberry juice segment
 Cranberry juice is unique in terms of health benefits as it has abundance of vitamin C and
antioxidants which is helpful in maintaining a healthy urinary tract.
 The cooperative of growers of Ocean sprays controls around three fourths of the worlds
cranberry supply and has thus created a high barrier to enter into the market.

Weakness
 The range of juices are limited as currently only cranberry juice is being sold and the next
step is to launch 3 more varieties. Therefore, Oceans spray has not ventured into juices such
as mango, orange, pineapple etc.
 They have not ventured into other local shops and have only provided their juices to
supermarkets.

Opportunities
 Premium beverages featuring exotic fruits like cranberries and blueberries are expected to
become more popular.
 Growth of juices with antioxidants will strengthen as consumers focus mostly on health
benefits and quality.

Threats
 There is an increased competition between local fresh juice bars and international fruit juice
manufacturers.
 Slow growth in household disposable income has led consumers to choose cheaper options.
 The intake of soft drinks has increased among the youth due to decreased prices and hence
they choose soft drinks over fruit juices.

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Marketing
Branding
When Ocean sprays was introduced in the market it was totally unknown hence brand awareness
was essential (Elliott, 1991). The big brands such as golden circle and berri had been in the market
for more than 40 years and yet Oceans spray established a niche market for cranberry juices in
Australia. Brand awareness helped Ocean spray to target its consumers. The health benefits of the
drink were publicized and from the below chart it is understood that cranberries are extremely high
in antioxidants as compared to many other berries.

Market Segmentation
There are six different segments that has been identified for fruit juice drinks and they are as
follows:

 Health conscious consumer: In the past 5 years, there has been a growth of consciousness
among the community which has led to the cut in the intake of carbonated soft drinks since
soft drinks have high calorie content and reduced nutritional value. Consumers are aware
that cranberry juices are filled with vitamin C and antioxidants and they would opt for this
particular brand. Health conscious consumers would primarily opt for water, vitamin water
or juice, they also tend to be loyal to the brand since they trust them to provide health
benefits. They would be less responsive to special offers and promotions, and even be
attracted to new brands that offer rational health benefits. There is a big switch from

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 carbonated drinks to fruits juices in the Australian market especially for those who are above
18 years of age. Parents often try to convert their children from drinking carbonated drinks
to healthy juices.
 Ease of purchasing at supermarkets: If the product is easily available at the supermarkets,
consumers tend to buy it merely because of convenience. Such consumers tend to purchase
what is comfortable for them.
 Variety seekers: These consumers are not loyal to a particular brand and tend to consume a
broad selection of beverages, based on their situation and taste preference. In the food and
beverage market the variety seekers are a common market segment. The advantage is that
they are heavy users but they tend to switch brands. For such a segment, it is essential to give
a wider range.
 Consumers who need a boost: This segment consists of consumers who are generally tired
or hungry. Most consumers opt for coffee as it is one of the most popular beverages
however there are consumers who prefer a cold beverage instead. These consumers either go
for a soft drink or a juice to refresh their minds.
 Situational factors: This segment are those who see the juice on the counters and decide
instantly to consume the juice out of habit or enjoyment rather than functional benefits.
These consumers might even choose the beverage based on the packaging and would like to
try the product out of sheer curiosity.
 Diet conscious consumer: These consumers are generally attracted to drinks that are low in
sugar and their ideal goal is weight loss or to cut some calorie from their daily diet. They are
different from the health-conscious consumer as they are not pursuing general health and
well-being.2 This segment also tends to be loyal consumers.

2
(Berry, 1992)
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It can be noted in the above chart the demand for other juices which includes cranberry juices has
increased drastically from 2016 onwards and currently is at a steady pace.

Competition
Australia’s fruit juice market consists of many companies, the top companies in the market are Coco
cola south pacific, Del Monte, Kraft Heinz, Grove fruit juice pvt ltd, Nippys fruit juice ltd, Lion co
and Citrus Australia. Another competitor which is doing extremely well is Nudies new squeeze
which sells premium bottled fruit juices.

Positioning
Oceans spray juices focuses mainly on those consumers who prefer premium juices which are
healthy due to its low sugar content and because the juices are loaded with antioxidants and vitamin
C. Another factor is the distinct and delicious taste of the drink.3 It can focus on those consumers
who has urinary tract issues as consumption of the cranberry juice can help to keep the urinary tract
healthy.

New products
Oceans spray is coming up with three more delicious flavors’:

1. Raspberry
2. Blueberry

3
(Theodore, 1997)
OCEAN SPRAY JUICES 7
 3. Blend of Blueberry and Cranberry

Oceans spray for many years has focused only on cranberry based juices and hence decided to come
up with a broader horizon by adding 3 more juices. The wider range of juices will give more choice
to consumers especially for those who are variety seekers. The new products will stick to the current
USP of Ocean sprays which focuses on health benefits and less sugar.

Marketing Mix
Product
Ocean sprays cranberry juice was launched in the Australian market in the year 1995 and despite
having a competitive market, they have become successful. At the time the market was dominated
by big brands with aggressive campaigns. In spite of those hurdles this company attained its goals in
Australia and has snatched 90 percent shares of sales in the cranberry juice market. Its new products
raspberry juice, blueberry juice and blend of blueberry and cranberry juice will provide more variety
to the consumers.

Pricing
The ingredients used in the juices are imported from the United states and hence the prices of the
juices are a premium amount in order to generate profit. Most juice companies use discount as their
marketing tool but Oceans spray did not use that tool and went ahead with charging the actual cost
from the very beginning. No artificial products were used while making the juices and hence the
quality never deprived which helped the customers to be loyal and ready to pay the premium price.
The same case is applicable to the new flavors of juices and the pricing would be similar to the
cranberry juice.

Placement
Oceans spray distributed the products to all major supermarkets of the country as they wanted to
limit their marketing and distribution costs. When the new juices will be launched in Australia the
initial strategy would be to distribute to the supermarkets across Australia.

Promotion
Oceans spray bought space in stores with a big trade promotion budget. They also started a
campaign called ‘Act tiny, be mighty’ to spread awareness to the consumers that Ocean spray is
owned by family of farmers who have helped preserve the family farming way of life for
generations.4 Through the ‘tiny tales’ of farmers they are planning the next few years of their
production. The goal of this campaign is to share its farmer’s efforts loud and clear. It showcases the

4
(Skilnik, 1980)
OCEAN SPRAY JUICES 8
commitment to authenticity, health and wellness, and sustainability5. Ocean Spray also finds
dieticians to recommend cranberry juice more than other juices because of its powerful punch when
it comes to health benefits. The new juices which will be launched will also be promoted keeping the
back story of farmers as the focal point6.

Recommendation
Ocean spray juices mainly focuses on the health benefits of the consumer, so what is recommended
is that for the benefit of the environment plastic bottles to be changed to cartons. It is best to
incorporate ‘go green’ initiative as the next five years, there will be a demand for change in
packaging of material. Even consumers prefer recyclable and ecofriendly material. There are many
advantages for using the same, there is higher protection against air and light and ensures freshness
and integrity of the juices. The juice cartons can be packed flat before the liquid contents are filled,
allowing a high number of cartons to be shipped and it also helps that it is light weight as well and
hence requiring less energy for transportation. The materials used are generally eco-friendly as it is
extracted from sustainable managed forest. The printing also becomes easier as compared to plastic
bottles as they rely on stickers and in cartons the information can be directly be printed.

Conclusion
Australians have accepted healthy juices as they are now aware that juices with no added sugars and
those that contain vitamin C, folate, antioxidants and other nutrients are any day better than opting
for sugary drinks. Goldstein research analyst forecast that the Australian fruit juice market is set to
reach USD 1.3 billion by 2025, growing at a CAGR of 2.1% over the forecast period. The huge
package industry, research and developmental activities, rising farming of fruits, rising health
concerns are some of the factors that would help in increasing the growth of fruit juice market.

5
(Swientek, 1995)
6
(Willman, 1993)
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Reference
Berry, J., 1992. Ocean Spray Joins the Pepsi Generation. Adweek’s Marketing Week, 9 March, p. 6.

Willman, M. L., 1993. Crantastic!: Ocean Spray Makes a Splash with Partnering, New Products,
Fresh Flavors and Expanded Distribution. Beverage Industry, November, p. 34.

Theodore, S., 1997. "Ocean Spray's New Zing. “Beverage Industry, March, p. 20.

Swientek, B., 1995. "Ahead of the Pack. Prepared Foods, March.

Skilnik, R., 1980. Ocean Spray's Canny Marketing. Sales & Marketing Management, August.

Barbara, 1985. How Ocean Spray Keeps Reinventing the Cranberry. Business Week, 2 December.

Elliott, S., 1991. Ocean Spray and Napier Try to Tinker with Success. New York Times, September.

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