Naked Juice Corporation

Naked Juice Corporation

Introduction

Competitive analysis is an instrumental component of a company’s marketing plan. Competitive analysis is formally defined as a strategic and marketing management that analyses the strengths and weaknesses of both the current and potential competitors. This evaluation can help a company pinpoint the unique characteristics that makes its product stand out in the market (Fleisher, & Bensoussan, 2007). Such an understanding would help a company concentrate its efforts on improving the uniqueness of its product to increase its share among the target market.  The paper that follows will give a discussion of the competitive analysis of Naked Juice Corporation.

History of Naked Juice Corporation and Product Description

Naked Juice Corporations was created in 1983 in Santa Monica, California by Jimmy Rosenberg. The proprietor started small making the fresh fruit juice in his home. At the formative days of his business, Mr. Rosenberg was the company’s sole sales agent selling his products on the beaches of Santa Monica. The authenticity of his juices saw him gain prominence in Santa Monica and he soon hit the local grocery shops, which agreed to stock his products (Jones, McCormick, & Dewing, 2012). Distribution of Naked Juice’s products remained confined to the State of California until early 2000 when the brand got a new buyer, North Castle Partners, from Greenwich, Connecticut.

In 2005, North Castle Partners changed the packaging of the products with a hope of overtaking the then industry leader. The complexity of the product’s distribution channel increased with the rise in demand of the products. The products’ lack of preservatives makes them have a relatively shorter shelf life compared to the products of its competitors, which have preservatives. In November 2006, the brand was acquired by PepsiCo and has since evolved into a wholly owned subsidiary of PepsiCo; operating under PepsiCo Americas Beverages division (Lussier & Achua, 2010).

Product Description

The brands product line comprises over 20 variants of blended and straight 100-percent vegetable and fruit juices. Some of the juices are produced with a smoothie consistency, while the rest remain in juice form. The juices are made from a combination of vegetable juices, flash pasteurized fruits, and purees. The primary flavours of the brand include blue machine, strawberry banana, green machine, berry veggie, and orange mango. Aside from the juice flavour variants, from 2006, the brand started producing products tailored to address various health aspects that include reduced caloric content, protein, and digestion. All of the brand products are packaged in post-consumer recycled plastic bottles of varying volumes (Olivier & Farrow, 2011).

Factors that affect demand, supply, and equilibrium prices in the juice market

The main competitors in the juice market include Dole Food Company Inc., Odwalla, Inc., and The Coca-Cola Company. The brand competes in industries that include beverage manufacturing, juice manufacturing, non-alcoholic beverage manufacturing, and energy, sports, health, and nutritional drink manufacturing. Naked Juice’s competitive advantage rests in the fact that it does not use preservatives in its products (Olivier, & Farrow, 2011). This means that the products have shorter shelf life as compared to that of its competitors.

The brand enjoys a good market share in all the industries it competes. The forces of demand and supply set the equilibrium price for the brand’s products. The equilibrium price is set at the point where demand and supply intersects. The brands production capacity is often adjusted to ensure that the supply is sufficient for the demand in the market. The market is wide open for the products produced by this beverage producer. The brand is likely to attract potential customers from market segments such as those looking for healthy energy drinks, nutritional drinks, and non-alcoholic beverages (Olivier, & Farrow, 2011).

References

Fleisher, C. S., & Bensoussan, B. E. (2007). Business and competitive analysis: Effective application of new and classic methods. Philadelphia, Pa: Wharton School.

Jones, T., McCormick, D., & Dewing, C. (2012). Growth champions: The battle for sustained innovation leadership: the growth agenda. Hoboken, N.J: Wiley.

Olivier, S., & Farrow, J. (2011). Juices & smoothies: Over 160 healthy, refreshing and irresistible drinks and blends. London: Southwater.

Lussier, R. N., & Achua, C. F. (2010). Leadership: Theory, application, skill development. Australia: SouthWestern/Cengage Learning.

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