FUNCTIONAL BEVERAGES: OVERCOMING CONSUMER BIAS TO OVERTAKE THE JUICE PRODUCTION INDUSTRY

Sharon Tam

Marketing Management- Sandra Metraux

4/23/12

1/3 Of Adult Americans Are Obese

12.5 Million Children (2-19) are also at risk for diabetes and other unhealthy diet related illnesses

USDA recommends no more than 40g of added sugar

Average American drinks upwards to 120g daily

Campaigns promoting health and fighting obesity have emerged

JUICE PRODUCTION INDUSTRY

FUNCTIONAL BEVERAGES Ready to drink beverages crafted with

vitamins, herbs, minerals and other healthy ingredients to offer physical vitality and mental benefits beyond hydration

Hydration

Energy & Rejuvenation

Health

Wellness & Weight Management

Energy Drinks

Ready to Drink Teas

Performance Beverages

Enhanced Fruit Drinks

Soy Beverages

Enhanced Water

KOMBUCHAKombucha is a fermented tea beverage that originated from Asia and Eastern Europe

Yeast and Bacteria Cultures

Week to Months

KOMBUCHAReady to drink probiotic tea that promotes overall health

“Wonder Tonic”

YERBA MATE TEA

24 vitamins and minerals

15 amino acids

South American Rainforest Holly Tree

0 calories

YERBA MATE TEAReady to drink tea that has the caffeinated strength of coffee, vitamin and antioxidant benefits of tea and euphoric qualities of chocolate

YERBA MATE TEA

DEMOGRAPHICS Generation Y (1972-2002)

“On the Go” hard working lifestyle Energy Drink Consumers Technologically Savvy Naturally distrustful Heavily involved with Social Media

QUANTITATIVE DATA Surveyed 30 Babson Students

QUANTITATIVE DATA

Key Takeaways 80% consume energy drinks 83% drink to stay awake to finish homework and

during parties 92% prefer Red Bull, Monster and Amp These brands are culturally relevant and lifestyle

appropriate 42% have interacted with these brands through

social media (Facebook, YouTube)

DEMOGRAPHICS Lifestyle of Health and Sustainability

Men & Women (22-55) College Educated and Informed Shoppers Health conscious, active and culturally aware Household income 75k Motivated to embody a healthy and sustainable lifestyle

FOCUS GROUP

5 individuals (20-36) Presented randomized kombucha and yerba

mate tea company websites and asked for feedback

FOCUS GROUP-KEY TAKEAWAYS

“Each…bottle contains caffeine levels comparable to a cup of coffee…the stimulation is balanced by mate's natural theobromines and theophyllines.”

“Confusing terminology

and it lacks personality”

Guayaki Yerba Mate Product Copy

FOCUS GROUP-KEY TAKEAWAYS

“Websites are too basic, lack web 2.0 integration and social media network. ”

FOCUS GROUP- KEY TAKEAWAYS

Old Fashioned Folk Remedies

Not Culturally Relevant

FOCUS GROUP- KEY TAKEAWAYS

Meant for “Hippies” and Green Extremists

Foul Smelling and Tasting

CHALLENGES

Brand Image Trap- Consumers perceptions take a primary role within a brands strategy Consumers associate kombucha and yerba tea

brands as a strictly vegan, hippy and green activist product

Old fashioned folk remedy Unappealing taste and smell

Product Attribute Fixation Trap- Brand too focused on product attributes Product Copy is too focused on functional

benefits and doesn’t create an emotional connection with the consumer

SUGGESTIONS Brand Image Trap- “Foul Smelling & Tasting”,

“Only for Hippies” Product sampling tours to showcase beverages

SUGGESTIONS Brand Image Trap- “Foul Smelling & Tasting”,

“Only for Hippies” Expand to Walmart, Pathmart and Shoprite Don’t limit themselves to organic grocers such as

Whole Foods

SUGGESTIONS

Brand Image Trap- “ Only For Hippies” Targeting middle school and high schools

to carry these natural and healthy products

Introduction to younger generation will build brand equity and foster a lifelong relationship

SUGGESTIONS

Brand Image Trap- “Old fashioned folk remedy”, “Not Culturally Relevant” Website makeovers Invest in mobile marketing

“advergaming” Smartphone Generation

SUGGESTIONS

Coca-Cola “Thumbs Up Everest”

Mobile adventure that gave away weekly prizes to a high score winner

Downloaded 350,000 times weekly

SUGGESTIONS

Product Attribute Fixation Trap Give the copy personality Use simple language to explain the product Use relatable language

QUESTIONS

EXHIBITS- SURVEY RESULT DISTRIBUTION