FOOD3000
Assignment 3: Group Project Assigment
Theme: Fruit nutraceutical for weight management
Marketing for cranberry powder
Group 6, marketer
Saki Okumura
42507321
There are some key points in success of producing a new product. Especially for the functional food, it is critical to define the consumer target, the benefits that are most compelling for that target, their health and nutrition priorities, and their attitudes about their diet and health (Linda 2000). Here, as a marketer, I searched the nature of the cranberry, estimated the intended market size, and built the strategy to get into the existing market.
To begin with, I searched the properties of cranberry and how they used in current market. Cranberry has been famous for its function for helping prevent urinary tract infection (UTI) since cranberry is the only fruit for this benefit. (Mike 2010). They are commonly used for cranberry juice as well as fresh fruit for that property. However, recent research revealed that there is not only preventing UTI disease function but also weight management ability and very high antioxidant ability. According to the research conducted by Elena’s group, flavonoids form cranberries actually have the property for weight management. They treated obese mouse with cranberry extract and founded out the beneficial effects of flavonoids by metabolic state (Elena et al. 2011). The mechanism of preventing obesity is shown in figure 1 below.
Figure 1. Molecular mechanisms underlying the anti-atherogenic effects of flavonoids in normal and obese mice (Elena et al. 2010).
To utilize this property, it is important to know how cranberry product is treated in the current market. According to European report, US based Ocean Spray Cranberries product which is mainly juice product account for 65 percent share of the global cranberry market (Byrne 2009). Their total sale in the cranberry market is US$73 m in 2007 (Byrne 2009). The ability of weight management has just founded so that there are not so many products which emphasize on this property in the cranberry market yet.
In addition, other properties from cranberries can be emphasized. Antioxidants are substances that protect cells from oxidative stress and the effect of free radicals (Forney 2011). There are hundreds of thousands of antioxidants of antioxidants in foods. Among those antioxidants, the following were found in cranberry, anthocyanins, ellagic acid, quercetin, resveratrol, selenium, vitamin A, C and E (Forney 2011). From this antioxidant ability, cranberry is considered to have one of the highest antioxidant content per serving among fruits (Forney 2011). These functional ingredients also can be emphasized for the product.
From those understanding of cranberry’s functional ingredients, I did the “SWOT analysis” for cranberry. SWOT analysis helps the recognition of internal strength and weakness, as well as external opportunities and threats of the product (Houben et.al).
Table 1. SWOT analysis for cranberry product
Helpful | Harmful | |
Internal origin | ・Weight management →Effective ingredient = Flavonoid ・Other effective ingredients →Add value | ・Low consumer awareness →Don’t know it as functional ・Price concern →Nutriceuticals = expensive |
External origin | ・Current product = juice →Expand product category ・Increasing production of cranberry →Price may decrease | ・Other fruits competitors e.g. Apples, blue berries, etc.. ・Other cranberries competitor e.g. Juice companies, etc.. |
In the SWOT table, the upper left shows strength, the upper right shows the weakness, the lower left shows opportunity, and the lower right shows threats of the product (Houben et.al). According to the analysis, cranberry has functional ingredients for weight management as well as other properties for women’s concern about beauty which can be our strength of our product. Also, the current position of cranberry in the market is juice. Therefore, there is a potential to produce unique product by creating cranberry product except juice. Also, I found the production of cranberry, which is mostly in North America, is increasing year by year which may well reduce the price of cranberry (CMC 2010). On the other hand, as negative aspect of cranberry product, there is only a low awareness of health properties of cranberry among consumers and nutraceutical tend to be though as expensive product (Byrne 2009). Also, we have to consider about other competitors in terms of other fruit such as apples and other cranberries competitors such as Ocean spray as cranberry juice company (Byrne 2009).
According to the discussion between Cranberry Marketing Committee (CMC) and Hill and Knolton (H&K), Mr. Rucier, the representative of CMC, mentioned that “cranberries are not native to Australia while nearly 90% of the world’s cranberries are grown in the US. So while cranberries have been available for years in Australia, they are still relatively unknown fruit” (Rucier 2006).
However, he continued to say that there are quite a few examples to increase the awareness to different countries including Germany, France, Mexico and Japan. So CMC will try to grow the position of cranberries in order for the effective marketing. Table 2 shows that the effect of advertising in Australian magazines. Also “Trade Communication” can be a key point to create consumer awareness. In CMC report, they worked together with coles for promotion of cranberries. (CMC 2010)
However, he continued to say that there are quite a few examples to increase the awareness to different countries including Germany, France, Mexico and Japan. So CMC will try to grow the position of cranberries in order for the effective marketing. Table 2 shows that the effect of advertising in Australian magazines. Also “Trade Communication” can be a key point to create consumer awareness. In CMC report, they worked together with coles for promotion of cranberries. (CMC 2010)
Table 2. Coverage Chart
As for price concern, there is a data which shows the production of cranberries in US. As the origin of cranberries, the North America account for most of the supply of cranberries. The figure 2 is the US cranberry production between 1960 and 2009. The trend of cranberry production is constantly increasing which indicate that the original price of cranberry may well decrease and contribute to the lower price for the nutriceuticals.
Figure2. US cranberry production 1960-2009
And finally, for the other fruits competitors, we have to set the particular target among consumers and build the strategies effectively. We set the 2 main target consumers with strategies for each for each group. First, the main target is “beauty seekers” who have concern about weight management. According to the Australian Bureau of Statistics (ABS), in 2004-2005, a higher portion of men and women are classified as overweight or obese across the age groups. For example, among 35-44 years old, 70 % of men and 43% of women were categorized as overweight or obese. This result is shown in Figure 2. Also, there is the data which shows around 80 % of overweight women do not want to do exercise (ABS 2005). It indicate that although quite a few women in Australia are overweight, they do not want to do exercise and looking for other ways to solve the health problem such as buying functional foods or nutraceuticals.
Figure 2. Overweight or obese across the sex and ages
Figure 3. Sedentary-low exercise for women across overweight group and not
In addition, women are assumed to have health concern especially for beauty as well and they are willing to pay more for additional value. They can be included in “lifestyle consumers”. Therefore, the target consumer for the product is women who are looking for weight management as well as beauty.
For those consumers, the strategy called “Leaving hidden nutritional asset” will be applied. The cranberry is famous for its UTI prevention but it has also effective for weight management and other properties for beauty. We can aware them to women who are interested in beauty health. We can emphasize the activity for ingredients for promoting beauty or create package which promote women’s purchase.
As I discussed above, the cranberry powder can add the new value for cranberry neutraceutical in terms of healthiness, accessible and build loyalty as new type of functional food. Those factors will lead this project successful.
References
ABS 2006. National Health Survey: Summary of Results, Australia 2004-2005. Australian Bureau of Statistics. Cat.no.4364.0, Canberra.
Australia International Market Report 2010. Hill & Knowlton Australia.
Byrne, J 2009. Market: cranberry goes mainstream. NutraIngredients.com. Viewed 25th October <http://www.nutraingredients.com/Industry/Markets-cranberry-goes-mainstream>
CMC 2010. Cranberry Marketing Committee Stats & Facts: CMC 2010 Marketing Policy and Crop Forecast.
Ellena, VS, Tarnopolsky, O, Singh, AP, Plutxly, J, Vorsa, N, Quadro, L 2011. Insights into the molecular mechanisms of the anti-atherogenic actions of flavonoids in normal and obese mice. PloS One. Volume.6 No.10
Forney, CF & Kalt, W 2011. Blueberry and cranberry. Health-promoting properties of fruit and begetables. pp. 51-73
Gilbert, L 2000. Marketing Functional Foods: How To Reach Your Target Audience. AgBioForum Vol.3 No.1 pp.20-38
Houben, G, Lenie, K, Vanhoof, K 1999. A knowledge-based SWOT-analysis system as an instrument for strategic planning in small and medium sized enterprises. Dicision Support System. Vol.26, Issue 2. pp.125-135.
Stone, M 2010. ‘Revolutionary’ cranberry product targets UTI market. viewed 24th October 2011.
Cranberry awareness by Hill & Knowlton 2006 B&T: showcase. Viewed 24th October, 2011
私にとってオーストラリア最後のアサイメント。感慨深いです。結局 writing はさんざんなのかもしれない。（毎回 1st draft 書くのに時間がかかりすぎてあまり推敲できてないし誰にもチェックもしてもらえてない…）でも、英語を writing することに対するアレルギーはなくなったし、書くのも打つのもスムーズになった。やはり文法や文章の構成・論理性が大切なのは言うまでもないが、こちらで一番学んだことは、「書く能力」「伝える能力」よりも、自分の中で何を書きたいのか・なにを伝えたいのかという中身がもっとも大切だということ。当たり前なのは分かってるけど、実感が大事やね。
初めてビジネス的な統計みたけど、調べるの楽しかった。マーケティングやプレゼンについてPamelaに色々とアドバイスをもらって、さらにマーケティングとPamelaが好きになった。笑
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