Pricing Strategy of Tropicana Juice

By

ACKNOWLEDGEMENT

I would like to thank to my supervisor supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

Signed __________________ Date _________________

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 1: INTRODUCTION1

Market analysis1

Background2

Tropicana overview3

Current company product analysis3

Importance of Pricing4

Assumptions and limitations6

Purpose6

Research Hypotheses7

Research Question8

CHAPTER 2: LITERATURE REVIEW9

Consumer Demand Theory9

Consumer Demand Analysis9

Transport cost and trade in differentiated products11

Economic Theory (how market condition effect pricing)12

Market Segmentation Studies15

Campaign Evaluation16

Factors That Mediate Price Response16

Pricing methods18

Role of cost in pricing / cost-based pricing18

Competition based pricing20

Buyers-based pricing / customer value- based pricing22

CHAPTER 3: METHODOLOGY24

The research process24

Literature search26

Inclusion and exclusion criteria27

Additional online searches27

Management27

Search rationale28

Critical appraisal tool28

Appraisal limitations28

Validity29

Ethical consideration30

CHAPTER 4: DISCUSSION32

Sales Management33

Target Market34

Price strategy35

Product line37

Segmentation strategies38

Demographic Segmentation by Tropicana:38

Socio-economic segmentation:39

Psycho graphical segmentation:39

CHAPTER 5: CONCLUSION45

Recommendations45

REFERENCES47

CHAPTER 1: INTRODUCTION

Market Analysis

The global juices market grew at a sluggish rate during the period 2006-2010, as a result of sluggish sales growth in the fruit drink (0-29% juice), 100% fruit juice (from concentrate) and vegetable juice categories. Although the overall market growth is expected to decelerate in the forecast period, the annual rate of growth is set to rise from a low of 1.8% in 2011 to a high of 1.9% in 2015. The global juices market generated total revenues of $83.9 billion in 2010, representing a compound annual growth rate (CAGR) of 2.1% for the period spanning 2006-2010. In comparison, the Americas and Asia-Pacific markets grew with CAGRs of 1.3% and 2.7% respectively, over the same period, to reach respective values of $27.3 billion and $14.8 billion in 2010. Market consumption volumes increased with a CAGR of 2.3% between 2006 and 2010, to reach a total of 56.3 billion liters in 2010. The market's volume is expected to rise to 61.4 billion liters by the end of 2015, representing a CAGR of 1.7% for the 2010-2015 period. 100% fruit juice (from concentrate) sales proved the most lucrative for the global juices market in 2010, generating total revenues of $25.8 billion, equivalent to 30.8% of the market's overall value. In comparison, sales of fruit drink (0-29% juice) generated revenues of $24.1 billion in 2010, equating to 28.7% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 1.9% for the five year period 2010-2015, which is expected to lead the market to a value of $92.4 billion by the end of 2015. Comparatively, the Americas and Asia-Pacific markets will grow with CAGRs of 0.7% and 3.4% respectively, over the same period, to reach respective values of $28.2 billion and $17.5 billion in 2015.

Background

The world-wide market for commercial fruit juice is growing, and changing very ...