PURELY JUICE
INNOVATION & BUSINESS MANAGEMENT Danielle de Kock 12012751
1 3 O c t o b e r 2 0 1 4
TABLE OF CONTENTS The Big Idea The Environment Stakeholder Analysis Target Market Target Audience The Research Research Objectives Research Methodology Key Insights The Brand Competitor Analysis SWOT The Brand Brand Identity Brand Positioning Market Share First year of trading Other Objectives Market Strategy Proposed Visuals Business Card Referencing
The Big Idea The idea was first born towards the end of 2013 after watching the 2010 documentary, ‘Fat, Sick and Nearly Dead’. The docu-film follows the 60-day journey of Australian, Joe Cross as he starts a juice fast to regain his health. After watching the film I started to hear the term juicing more and more frequently which inspired me to read ‘The Tipping Point’ by Malcolm Gladwell to see if this may be a product or a trend that may tip, it certainly fit the criteria. In 2013 there was one juice company servicing the Cape Town area, Juice Revolution. Since trying the juice diet first hand in December 2013, JuiceRevolution has doubled its staff and equipment and is now only taking orders only 2 weeks in advance. Over the past year 5 independent juicing companies have launched in the Cape Town area. All three of these juicing companies that have been established offer a better delivery service and lower prices. Cape Town has welcomed the new trend. Juice Revolution recently began to deliver their blast frozen packages nationally at a delivery charge of R400 over and above the product cost. June 2014 saw the first cold pressed and blast frozen juice business be set up in Johannesburg. Juiced started with 2 cold press machines and have had to increase to 13 to keep up with demand. Juicing has taken the health world by storm, and millions of people are now gulping down pounds of produce by the glassful. A swarm of celebs including Salma Hayek, Alicia Silverstone, and Megan Fox have jumped on the juicy bandwagon for its convenient approach to clean eating. Other proponents include Ryan Seacrest, who sips on an earthy blend of collard greens, kale, broccoli, coconut water and green tea, and Gwyneth Paltrow, who’s been known to kick off the New Year with a week-long liquid detox.(Joy Bauer; 2014)
The Environment Key Stakeholder Analysis Key stakeholders can be defined as a “person, group, or organisation that has interest or concern in an organisation.” (businessdictionary; 2013) These stakeholders “can be affected by the organisation’s actions, objectives and policies.” (businessdictionary; 2013). The following stakeholders have been identified for Purely Juice. •
Suppliers of materials and ingredients.
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Employees of Purely Juice
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Contributors to initial capital layout.
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Customers. ⇒ Target Market Analysis vs. Target Audience
Target market and target audience are similar marketing terms. Each has to do with the specific market segment a company targets with its products and services. There are differences between these two terms, however, mostly related to the practical implications each has on different components of the marketing function. Primary Target Market: •
Health and weight concerned 18 - 35 year old.
Target Audience: •
Health and weight concerned 18 - 35 year old.
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Friends and relatives of target market.
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Primary Research Objectives:
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How does an operational and established juice company function from day to day?
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How can the current market offerings be improved upon?
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Secondary Research Objectives:
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What is the current market and product offering?
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What are the differences in market want and need between Johannesburg and Cape Town and what influence would this have on the potential business?
Research Methodology The following Primary research methods were implemented:
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Meeting with Joris van Grieken from the The Fresh Press.
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Fifty open-and-close-ended printed surveys conducted outside Virgin Active in Victory Park (25) and Virgin Active Cresta (25)
The following secondary research methods were implemented:
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Study of online material such as blogs, reviews, and competitor websites.
Key Insights
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Gauteng has a higher disposable income per capita in comparison to the Western Cape (Gauteng Online; 2014)
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More and more consumers are becoming health conscious (The National; 2013)
rview
JUICE SKINNY JUICE ORCHARD ONE JUICE • Consumers are looking for companies that offer better service and REVOLUTION Founded in 2(Edelman.com 013, Founded in 2013 Founded in March that are transparent. ; 2013) Founded in 2012 1337 Likes 2,992 likes. 2014 2242 likes Offer only 6 6,128 likes 3 Day = R314 per standard juices. 3 Day Cleanse = R day Offer a 1, 3, 5, and 267 per day 5 Day = R280 per 7 day cleanse with 5 Day Cleanse = day 5 juices a day each. R270 per day 7 Day = R314 per The price per 7 Day Cleanse = R day bottle is R45 264 per day. 5 juices per day. irrelevant of how Offer only 4 juices. Only do juice many days are 8 juices per day, programmes. opted for. amount includes
Kale, spinach, romaine, parsley, cucumber, celery, carrot apple, lemon, ginger, pineapple, apple, carrot, ginger, beets, lemon ginger, pineapple, celery ,orange, pineapple, turmeric, mint, , cayenne., almonds, filtered water, sea salt, vanilla, dates, cinnamon, nutmeg, cacao, grapes, mint, cucumber.
Oranges, naartjies, basil, ginger ,chili,, beetroot, apples, lemon cucumber, avocado with apples, strawberries, lemon, basil, jalapeno, flaxseed, hemp seeds
Beetroot, apple, carrot lemon, ginger , pineapple, apple, cucumber, kale, spinage, celery
JUICE REVOLUTION Most expensive on the market.
SKINNY JUICE ORCHARD Website not updated. Fresh Juices only No point of difference.
ONE JUICE No environmental awareness.
Organic. Well established. Company run by dietician. User friendly website.
Cheapest on the market.
Interactive online presence. Simple.
Strengths
Weakness
Ingredients
Apples, broccoli, beetroot, carrots, celery, cucumbers, lemons, parsley, pineapples, spinach, yellow peppers, ginger, blackberries and blueberries blended with avocados and organic live yoghurt
All juices are fresh and need to be collected daily.
Opportunities
Adventurous with ingredients. To expand nationwide.
To expand nationwide.
Many other Juice companies opening that are CT based.
Many other Juice companies opening that are CT based. New to the Market
Many other Juice companies opening that are CT based. New to the Market
Threats
Recently extended to To expand most parts of South nationwide. Africa. Expand to fresh juices.
Many other Juice companies opening that are CT based. New to the Market
Points-of-difference: •
Service with a product.
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Green inside and out.
Points-of-parity: •
Product & Ingredients
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Price
STRENGHTS •
Excellent communication and Service
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Customer first
WEAKNESSESS •
No previous experience in running and operating a juice company.
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Standard juices may not be appealing to everyone.
OPPORTUNITIES
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Because of no experience, fresh perspective and enthusiasm to learn.
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New competitors in the market will drive motivation.
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Gap in the market in Johannesburg.
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Change in mindset, people are becoming more health aware
THREATS •
Growing trend in the market place which could see potential competition with larger start-‐up capital.
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Legalities selling produce to public may arise specifically for juicing.
BRAND IDENTITY
PRODUCT Product scope: Pressed Juices Serice Product Attributes: 100 % Natural. Raw. Cold Pressed. Quality / Value: Luxury, Premium Service Uses: Weight Loss, Meal replacement, Healthy Beverages, Boost your immune system, Promote glowing and clearer skin, Detoxification, Ease digestion Users: Health & Weight Concerned Country of Origin: South Africa ORGANISATION Organisation attributes: Customer service company that happens to make juice. Local vs. Global: Local based PERSON Personality: Enthusiastic and caring Brand-‐ Customer relationship: Motivational speaker, Best friend SYMBOL Visual: Green, Yellow and Red VALUE PROPOSITION Functional Benefits: Diet booster, weight loss, change in lifestyle. Emotional Benefits: Reward, self-‐confidence, motivation, part of a team. Self-‐Expressive Benefits: Making an impact, self-‐actualisation CREDIBILITY Support for other brands: Always looks to support local companies first EXTENDED IDENTITY: Giving people the confidence to change lifestyle. Allowing people to be a part of something that is more than a weight loss programme. Service with a better cause. Status. ESSENCE: Serviced Juice POSITIONING STATEMENT For the health and wellness awake, Purely Juice will give you the confidence boost and the kick-‐start you need to change your lifestyle. Whether it is to detox, or for an initial weight loss we will offer you a program that suits you and deliver it with a smile. ..Because it is our pleasure.
Market Share
Projected Market Share 2015
Juiced CT Based Purely Juice New Companies
Projected Market Share 2016
Juiced 2nd Qtr Purely Juice New Companies
First year of trading Estimated turnover from January 2015- January 2016: R2 000 000. In order to reach the target turnover of 2 Million, Purely Juice would need to sell 1480 5 day packages during the course of the year which means that on average 123 packages per month, 30 per week and 4 per day.
Initial Capital Layout to launch Purely Juice Renovation to existing workshop Angel 20 Cold Press Juicer ZuMex Multi Fruit Blender 8.2hp Blast Freezer Website Waste Delivery costs (Petrol) First Month’s ingredients supply First Month bottle supply with logo Unexpected Expenses Marketing 3 Month New Business safety net ESTIMATED TOTAL
R31 500 R18 000 R23 500 R42 000 R13 000 R 4 000 R 2000 R12 000 R 3000 R10 000 R50 000 R50 000 R186 000
Future Objectives. The future goal (2-3 years from launch) is to locate an area where Purely Juice can plant its own vegetables and fruit (climate dependant). Purely Juice will employ and train staff to grow the fresh produce which will be used in the juice itself. Once the farm has been established and an excess is being produced, employees will have the opportunity to sell the excess to other local businesses / individuals at 100% profit. Sustainable farming practices will be followed and nearby communities will be welcome to visit and learn how to grow their own vegetables and fruits foods. Market Strategy Purely Juice aims to launch its blast frozen package juices on the 15th of January 2015. This allows for sufficient time to ensure that the product has been tried, tested and perfected. The month of December will function as a practice month to ensure that by launch we will be able to provide a service that is over and above expectation. December will act as month whereby consumer needs and wants will be studied, through sampling, in order to create a product with a service that fulfils both their needs and wants. This also allows for sufficient time for a marketing strategy to generate brand awareness. The research has shown that most current users of juicing packages are between the ages of 24-36 and further research has shown that majority of the target have access to online facilities. In order to reach this target market an excellent online awareness needs to be created. SOCIAL MEDIA A Facebook page will be created allowing customers to give feedback and to engage with them. Facebook will also serve as a platform for competitions and motivational information for customers who are using the product.
Instagram and Twitter accounts will be created in order to maximise reach and will be consistently updated and relevant. PRINTED MARKETING Leaflets will be distributed outside gyms and wellness centres during the month of December to advise potential customers of our launch. A launch competition will be on the leaflet to encourage people to visit our social media platforms and to ‘Like’ our Facebook page. Winners will receive 2x 5 day packages valued at R2700. Purey Juice will offer free delivery to customer within a 40KM radius in order to satisfy the convenience to buy. Customers are also welcome to collect their packages and are invited to view how the juices are made. Orders can be made online or telephonically and juices can be adjusted to suit the needs of an individual customer. Purely Juice will offer a recycling service that rewards customers with R100 cash back if they return their used bottles. The Website which will be fully functional by 1st December 2014 will be able to process orders as of the 15January 2016. The first 20 customers will receive a 20 % discount and will allow us to pre prepare the orders and not deal with backlog.
Proposed Visuals Business Card
References Bodyandsoul.com.au, (2014). Cold-pressed juice: the new trend. [online] Available at: http://www.bodyandsoul.com.au/nutrition/nutrition+tips/cold+pressed+ju ice+the+new+trend,25495 [Accessed 6 Oct. 2014]. Food Republic, (2014). Green Is The New Gold: The Raw Facts On How Juicing Is Taking Over Our Lives. [online] Available at: http://www.foodrepublic.com/2014/01/15/green-new-gold-raw-facts-howjuicing-taking-over-o [Accessed 6 Oct. 2014]. GORDINIER, J. (2014). The Rush Toward Cold-Pressed Juices. [online] Nytimes.com. Available at: http://www.nytimes.com/2013/04/17/dining/the-rush-toward-coldpressed-juices.html?pagewanted=all&_r=0 [Accessed 6 Oct. 2014]. Jcfruitjuices.co.za, (2014). Home Page | JC's Fruit Juices. [online] Available at: http://www.jcfruitjuices.co.za/ [Accessed 6 Oct. 2014]. Juicefactory.co.za, (2014). Juice Factory. [online] Available at: http://www.juicefactory.co.za/ [Accessed 6 Oct. 2014]. McClean, R. (2014). The 4 C's versus the 4 P's of Marketing. [online] Customfitonline.com. Available at: http://www.customfitonline.com/news/2012/10/19/4-cs-versus-the-4-psof-marketing/ [Accessed 6 Oct. 2014]. Numbeo.com, (2014). Cost of Living Comparison Between Cape Town, South Africa And Johannesburg, South Africa. [online] Available at: http://www.numbeo.com/cost-ofliving/compare_cities.jsp?country1=South+Africa&city1=Cape+Town&coun try2=South+Africa&city2=Johannesburg [Accessed 6 Oct. 2014]. Sirjuice.co.za, (2014). Sir Juice | Product. [online] Available at: http://www.sirjuice.co.za/product/ [Accessed 6 Oct. 2014]. Slumz.boxden.com, (2014). starting a bottled juice company?. [online] Available at: http://slumz.boxden.com/f247/starting-a-bottled-juicecompany-2017315/ [Accessed 6 Oct. 2014]. The Cut, (2013). Juice Heads: How the Newest Liquid-Nutrition Cultists Are Mastering Their Intestines. [online] Available at:
http://nymag.com/thecut/2013/10/juice-trends-and-the-nutrition-cult.html [Accessed 6 Oct. 2014]. The Skinny Juice Co, (2014). The Skinny Juice Co. [online] Available at: http://theskinnyjuiceco.com [Accessed 6 Oct. 2014]. www.joybauer.com, (2014). Juicing for Health: The Juicing Craze - Health or Hype. [online] Available at: http://www.joybauer.com/healthy-living/thejuicing-craze-health-or-hype.aspx [Accessed 6 Oct. 2014].