Grove Fresh Ltd - Marketing Organic Juices
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Case Details:
Case Code : MKTG128
Case Length : 09 Pages
Period : 1994-2006
Organization : Grove Fresh Ltd
Pub Date : 2006
Teaching Note : Not Available
Countries : United Kingdom
Industry : Organic Foods (Fruit Juices)
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
Promotion
The company displayed its trademark The Organic Juice Co. (Refer Exhibit III for the company logo) prominently in its packing. Ad agency HDM Total Communications was engaged for promotions and marketing. GFL placed ads in the print media, especially the weekend supplements of national newspapers, women's magazines and food titles.
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The company also gave out free samples of its juices at supermarkets and other retail outlets to encourage trial.
In late 2005, GFL released a set of four posters (Refer Exhibit IV for copies of the posters) as part of its marketing campaign. However, The Blackmoor Estate Ltd., a commercial apple grower, the Crop Protection Association (an organization which represented members active in crop protection) and a member representing the public, complained to the Advertising Standards Authority (ASA) against GFL's advertising. The controversial posters contained the following messages - “Insects Won't Eat Fruits Sprayed with Pesticides, Why Would You?” & “Fruit Juice - Now Available in Non-Pesticide Flavour”.
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Challenges
The UK market for organic juices began to slow down in the mid 2000s. It was a far cry from the torrid pace of growth witnessed in the early 2000s (Refer Exhibit V for the UK market for organic NFC citrus juice). Moreover, the number of players operating in the organic segment of the juice market had also seen an increase. As if these difficulties weren't enough, the organic citrus market had become increasingly vulnerable to supply shortages. The organic citrus juice market, especially orange juice, accounted for around 40% of GFL's sales...
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Outlook
In spite of the challenges, GFL, with its high-quality products, wide assortment, strong distribution, and appealing communication has been trying hard to retain its position as the leading organic juice brand in the UK. In 2004-05, it breached the £ 5 million mark in sales.
In the same year, the company introduced organic vegetable juices under the sub-brand - V Juice. By early 2006, V Juice was registering strong sales at health stores thus helping GFL to post year on year sales growth of 65% at these stores... |
Exhibits
Exhibit I: Sales Turnover of Grove Fresh Ltd
Exhibit II: Competing Brands and Prices
Exhibit III: GFL Company Logo
Exhibit IV: Grove Fresh Posters
Exhibit V: The UK Market for Organic Not-from-Concentrate Citrus Juice
Exhibit VI: Marketing Organic Foods
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