[Solved] rynkeby juice marketing research

Project D Rynkeby- Lifestyle is also about living healthy Teacher: Table of contents 1. INTRODUCTION:2 2. INTERPRETATION AND TERMINOLOGY:2 3. DELIMITATION:3 4. THE PROBLEM STATEMENT:3 5. METHODOLOGY:5 6. IDENTIFICATION OF THE PROBLEM:5 6. 1 CONSUMER LIFESTYLES- DENMARK6 6. 2 DRINKING HABITS OF THE YOUNG PEOPLE IN DENMARK:6 6. 3 SOFT DRINKS MARKETS – DENMARK:7 6. 4 MARKET SHARE OF RYNKEBY’S FRUIT AND VEGETABLE JUICE:7 7. QUESTIONNAIRES REGARDING CONSUMPTION OF FRUIT AND VEGETABLE JUICE IN DENMARK8 8. STATISTICAL DATA OF OUR SURVEY:13 9. ANALYSIS OF OUR REPORT:19 9. 1 HEALTH CONCERN:19 9. 2 DRINKING HABITS:19 9. 3 PURCHASING HABIT:19 9. CONSUMER PREFERENCES:20 10. OUR ANALYSIS USING PORTER’S FIVE FORCES:20 11. CONCLUSION:21 12. RECOMMENDATIONS:22 Market Research 1. Introduction: RynkebyA/S is the most popular juice company in Denmark and has introduced a variety of organic and premium fruit and vegetable juice brands targeted at the young people but it fails to achieve growth sales in this segment. Recent research shows that there is a growing concern of obesity and life threatening diseases among the younger generation of Denmark today. Due to the fast and hectic city life, the youth have adopted unhealthy lifestyles by eating brunch and drinking unhealthy carbonates.

But there are variety of other reasons behind the low sales of fruit and vegetable juices other than unhealthy life style. After doing some qualitative and quantitative research we have been able to analyze the problems the juice market (Rynkeby) is facing today and also we have been able to offer some solutions and recommendations as well. 2. Interpretation and terminology: To begin with, we have decided to interpret the issues of our project and we would define the problem as to why Rynkeby’s present strategy in selling its new variety of fruit and vegetable juices based on a heath focused theme, is not doing well in the Danish market.

We have interpreted the word life style as the eating and drinking habits of the young Danish people, who are addicted to eating unhealthy brunch food and drinking unhealthy soft drinks and energy drinks in order to cope up with the fast life of today. These people are taking their life for granted. Diet colas are being mistaken for low sugar healthy drinks. Beers are also consumed in large amounts together with or without daily meals. 3. Delimitation:

Our primary focus will be the younger generation, from the ages between 15 –25, but we will also be looking at the other possible target groups within this target group. We are going to be analyzing all kind of ready to drink juices in the Danish market as compared to Rynkeby. In our research we will not be analyzing the company’s internal strategies but we will only concentrate on the external one. Since we have been strictly instructed to write mostly about the Quantitative research within a limited number of pages ( 20 pages) we will put our desk research data bases in the ppendixes. We will not contact the company for information, as it is very costly. So we will only make our analysis based upon the data collected from the primary research as well as secondary research (desk research, store checks, our own assumptions). We will be conducting our field research in Fyn and we are going to conduct not more than six interviews per person. 4. The Problem Statement: We are appointed by the Rynkeby Company to analyze and assess the problem for the low sales of their fruit and vegetable juices among the youth of Denmark.

According to the information gathered from our secondary research we can assume that there could be various problems linked to the main problem as to why Rynkeby is failing to attract the young Danes into drinking their healthy fruit and vegetable juices? These are: ?What is the buying behaviour of the potential target group for soft drinks? ?Are they prices sensitive? ?Where do they buy juice the most (shopping malls, small shops, tobacco shops, railway or bus stations or their work place)? ?What are the eating and drinking habits of the youth in Denmark? Which brand do they buy weekly/monthly? Are they faithful to one brand? Are the young Danes aware of health related diseases caused by following unhealthy lifestyle? ? Is the company successful in putting a satisfactory impact on the younger generations to stay healthy by drinking their fruit and vegetable juice? Does the younger generation prefer normal products to ecological products? ?What is the preference of the youth regarding the taste and packaging of juice? Is the packaging functional and stylish to attract the young customers? ?Is Rynkeby doing enough marketing and advertisements to promote their brand of vegetable and fruit juices in Denmark? ?Who are the competitors? Is the company facing a potential threat from its competitors regarding price, packaging and quality of the product? ?Are the products visible to the customer’s eyes and are they being sold in the correct place. ?Finally, does the company have a potential in retaining its position as the leader of fruit and vegetable juice in the Danish markets? 5. Methodology: To prepare an analysis of the Danish market for juice (fruit and vegetable) with special focus on consumers’ perception of health related advantages of juice we are first going to do some secondary research where we will try to find out answers to the problems.

After that we will do some quantitative research (field research) by making some relevant questionnaires on why and how Rynkeby? s products are sold and used by our defined target group. We will go out in the malls, in the streets, and the railway station to conduct our survey. Relevant to our problem statement we are going to use Porters five forces and analyze Rynkeby’s present situation on the consumer market. We have chosen this model because this model best determines an industry’s attractiveness and long-run industry profitability.

In the end we are going to put all our findings and solutions and recommendations in a special report and deliver it to the company. 6. Identification of the problem: Based on the data and findings from the secondary research (data in the appendixes) we have tried to identify certain problems that could be a reason for affecting the fruit and vegetable juice industry in Denmark. 6. 1 Consumer Lifestyles- Denmark The young adult group consists of a large number of students who are either part time employed or full time employed. Those in full-time employment might not yet be on a high salary level.

So the salary in the young adult group (15-29) is diverse. The modern Dane is more career-minded than before and is choosing to start family-life at a much later stage in life. The increase in the number of single-households in the Danish market is encouraging increased consumer demand for single-portion products. Older teenagers in Denmark have a larger disposable income than ever before and they are mostly given the responsibility of making their own purchases. This makes the teenage population a very important target in marketing and advertising. Branded and/or high profile goods (eg mobile phones) are popular for this age group.

Young adults are generally very fashion conscious and spend a lot of their disposable income on fashion items, such as clothing and toiletries. Young adults also move out of the family home and spend a large amount of their disposable income on household goods. In Denmark there is an increasing interest in interior design, which means a high expenditure on household goods. With fewer young adults expected in the future due to the decline in birth rates in recent years, manufacturers and retailers will have to focus on a smaller number of young adult consumers. 6. Drinking Habits of the Young people in Denmark: Danes spend increasing amounts on food and drink outside the home in cafes/bars and full-service restaurants both in terms of alcoholic, soft and hot drinks. However, it is still very common to consume all of these drinks in the home. Alcoholic drinks are usually consumed in the evenings or at weekends since most workplaces have a non-alcohol policy. Beer (lager) is the most favored alcoholic drink in Denmark, although wine is becoming increasingly popular, especially at mealtimes. With regards to soft drinks, carbonates are the most popular.

Carbonates benefit greatly from strong brands and continuous marketing efforts, as well as superior distribution. Low calorie carbonates are perceived as “the healthy alternative” and are accordingly becoming more popular among the youth. They are migrating slowly from carbonates which are perceived to be less healthy. There is an increase in consumption of fruit and vegetables for the last years mostly due to increase in concerns about the health and wellness. In terms of hot drinks, coffee is by far the most popular drink in Denmark. It is consumed mainly for breakfast and in the afternoon by most adults in Denmark. . 3 Soft drinks markets – Denmark: The Danish soft drinks market is dominated by domestic players such as Carlsberg Denmark, Royal Unibrew, Rynkeby Foods and Aqua d’Or Mineral Water. Carlsberg and Royal Unibrew are the respective Danish license holders of the brands Coca-Cola and Pepsi Cola, and this is a key reason as to why these two domestic players have dominating positions within carbonate sales. Rynkeby Foods is the clear market leader within fruit/vegetable juice with a broad and varied product portfolio which no other market competitor can match.

Aqua d’Or has benefited strongly from increased still bottled water sales in recent years and this has allowed the company to establish a market leadership position within bottled water. 6. 4 Market Share of Rynkeby’s fruit and Vegetable juice: Rynkeby AS is one of the top three companies in the soft drinks market with a 49% share of sector sales. According to Rynkeby information, 92% of its sales turnover is generated by Danish market (most important outside market is in Scandinavia and Germany). In spite of, Rynkeby is losing (see Chart 1) share to private label and foreign competitors.

The company has used heavy sales promotion in the past to build its share to the extent that Danish consumers became accustomed to buying Rynkeby products on discount. 7. Questionnaires regarding consumption of fruit and vegetable juice in Denmark We are conducting a research on the consumption habits and life style among the young people of Denmark. Our main task is to find out about the drinking habit of the youth from 15- 25 yrs of age. Please, mark answers you find relevant. 1. What do you usually do to keep yourself fit and healthy? ?Go to the gym ?Exercise at home ?Jogging or brisk walking ?Dieting ?Nothing Sports ?If other, please mention:_________________________ 2. Which of the drinks mentioned below do you consume more often? ?Carbonates (Cola, Pepsi, Fanta…) ?Juice (fruit, vegetable) ?Bottled water ?If other, please mention: _________________________________ 3. How often do you drink juice? ?Daily ?More than twice a week ?Once a week ?Not often 4. When do you usually prefer to drink juice? ?Morning ?Midday ?Evening ?If other, please mention: _________________________________ 5. Where do you prefer to buy juice? (you can choose more than one) ? Kiosk ?Gas stations ?Bakery ?Cafeteria/canteen ?Cafe/ bars Discount shop (Rema 1000, Aldi, Lidl, Alta) ?Super markets (Bilka, fotex, kvickly, netto, fakta, local brugsen etc. ) ? If other, please mention: _________________________________ 6. Rate the importance of the following factors when buying fruit and vegetable juice. ( 1 being the least importance and 5 being the most important) 1234 5 Price Taste Health benefits Brand name Easy to find in the shop Convenient/ stylish packaging Trendy 7. Drinks mentioned below are healthier than fruit and vegetable juices. Please, rate this. Strongly agreeAgreeNeither agree, nor disagreeDisagreeStrongly disagree Diet Coke/Pepsi

Diet Concentrates (Fun light, Ribena light etc) 8. Which juice brands do you usually buy? (you can choose more than one) ? Tropicana ?Rigtig juice ?Original ?Rynkeby ?Minute maid ?Sun top ?Sun fresh ?Cadiso ?Xtra ?Other. Which one? __________________________________________________ 9. Would you prefer your juice to be: ?Organic fruit juice ?Normal fruit juice without artificial flavors ?Don’t really care. 10. When did you last see a Rynkeby commercial? ?Today ?Yesterday ?2-5 days ago ?Don’t remember ?Haven’t seen ?If other, please mention: ________________________________ 11. If you have seen it, then where? ?TV Radio ?Internet ?Newspapers/ magazines ?Road Posters ?If other, please mention: _________________________________ 12. Which of the juice packages below would you choose? 13. What size of package do you prefer for your convenience? ?250 ml ?330 ml ?1 liter ?500 ml 14. What kind of juice package would you prefer? ?Plastic bottles ?Paper box with a cap ?Paper box with a straw ?Other:______________________________ 15. Age: ________ 16. Sex: ? male ? female 17. Occupation: ? employed- full time ? employed- partl time ? student trainee ? other:________________ Thank you for your time! Your effort was appreciated. 8.

Statistical data of our survey: This section will show the results from questionnaire. We collected all data and made diagrams to show answers on questions and analyzed differences between them. We interviewed 28 young Danes in age 15-25. 19 of them were female and 9 were male. The results from first question are shown in the diagram 1- What do you do to keep yourself fit and healthy? Diagram 1- What do you do to keep yourself fit and healthy? We can see from the results of the first question that a good 76% of the youngsters are indulging in various kinds of physical activities while 24% does not care to about keeping fit.

Majority of young people want to keep them fit and think how to do that. Further, see results (Table 1- Which of the drinks mentioned below do you consume more often? ) which of drinks young people consume more often. Table 1- Which of the drinks mentioned below do you consume more often? Answers of question 2 give us a picture of the main competitors by group. Bottled water and carbonates are consumed more than juice. Further, we get information how often young Danes drink juice (see table 2- How often do you drink juice? ). Table 2- How often do you drink juice?

FrequencyNr% Daily27,14 More than twice a week1242,86 Once a week725,00 Not often725,00 The table above shows that juice is not consumed by the youngsters on a daily basis but rather on a weekly basis. Further, see table 3- When do you usually prefer to drink juice? Table 3- When do you usually prefer to drink juice? Nr% Morning1860% Midday827% Evening13% Other310% From these two last tables we can see something about consumer habit especially that people are used to consume fruit juice more than twice a week and most often in the morning.

Table 4- where prefer to buy juice? Nr% Kiosk 13% Gas stations13% Bakery13% Cafeteria; Canteen25% Cafe/ Bar513% Discount shop924% Super Markets1950% In Table 4 (Table 4- Where prefer to buy juice? ) we see not very surprisingly that the most popular place for buying juice is by far the supermarkets so access to supermarket is one of the most important driving for sales. Table 5- Importance of the factors buying fruit and vegetable juice. 12345 Price42768 Taste1 520 Health benefits54586 Brand name76545 Easy to find57358 Packaging64674 Trendy94374

For the question 6 we have asked people to rate (with numbers from 1-5, for which 1 been the least important) the importance of different factor in buying juice and we are going to come up with a total score for each using the following formula: a = average score of the factor. suppose n1=number of people who rated the importance of the factor as 1 n2= number of people who rated the importance of the factor as 2 …………………. Etc. ta= total answers for that factor Using Excel and this formula to compute the average scores for each factor we obtain, see the results below: Price3. 44 Taste4. 65

Health benefits3. 21 Brand name2. 78 Easy to find3. 14 Packaging2. 96 Trendy2. 74 So we can see that the most important factor in buying fruit and vegetable juice is the taste with a very high score 4. 65 close to 5 the maximum, followed by price and health benefits it brings and so on. Things like brand name and packaging are seem to be less important. Further, see table 6-Drinks mentioned below are healthier than fruit and vegetable juice. Table 6- Drinks mentioned below are healthier than fruit and vegetable juice. Strongly agreeAgreeNeither agree, nor disagreeDisagreeStrongly disagree Diet cola3-4811

Diet concentrates15874 For this question we have used a Likert scale to rate the answer we received. Replacing Strongly agree with 2, Agree with 1, Neither agree nor disagree with 0, Disagree with -1 and Strongly disagree with -2 and using the same formula as to the previous we obtain the next scores: Diet cola-0. 92 Diet concentrates-0. 32 As we said we replaced “Disagree” with -1 so for diet cola there is an average disagrees opinion (-0. 92 close to -1) that they are healthier than fruit juice our assumption form the statistics may not be entirely true. Regarding Diet concentrates the opinion is weaker only -0. 2 closer to 0 (Neither). We asked a question- which juice brands do you usually buy, to know which brand is more popular. See, diagram 2- Brands popularity. . Diagram 2- Brands popularity This question’s answers give us a view of the popularity of brands in the fruit juice markets. The first four popular brands mentioned above are from Rynkeby. See Table 7- What kind of juice do you prefer. Table 7- what kind of juice do you prefer? Organic fruit juice is mostly preferred, which is close to 47% and a good 32% doesn’t really care for the type of fruit juice they consume.

Further, we asked a question about Rynkeby commercial (Table 8- when did you last see a Rynkeby commercial? ). Table 8- When did you last see a Rynkeby commercial? TodayYesterday2-5 days agoDon’t rememberHaven’t seen 513145 The above table shows clearly that Rynkeby is not doing enough aggressive advertisement. Table 9- if you have seen Rynkeby commercial, then where? TVRadioInternetNewspapersRoad Posters 12-333 Most popular media seem to be the television based on table 9- If you have seen Rynkeby commercial, then where? Table 10- Which is the more stylish package?

A (picture)B (picture)C (picture)D (picture) 91116 There seem to be a preference for the big carton box with cap and also the bottles. See table 10- which is the most stylish package? Table 11- what size of packages do you prefer for your convenience? 250 ml330 ml500 ml1 L 43188 The most popular quantity for packaging is 500 ml, see table 11- what size of packages do you prefer for your convenience. Table 12- What kind of juice package would you prefer? Plastic bottlesPaper box with capPaper box with strawIndifferent 817-3

It is confirmed that the paper box cartoon with the cap has more demand, based on results table 12- What kind of juice package you would prefer. 9. Analysis of our report: Based on the our survey report we have tried to analyze certain issues like health concern, drinking habits, purchasing habits 9. 1 Health Concern: Based on the statistical data from the questionnaire we can say that within the given age group (15-25), a good 76% of the youngsters are indulging in various kinds of physical activities like running, jogging, exercising and doing different kind of sports, while 24% does not really care about keeping fit.

The result is very impressive compared to what we can hear on the radio or television about ‘young people`s unhealthy lifestyle`. Our results show that young people are very much concerned with their health. 9. 2 Drinking habits: According to our survey there is a higher percentage of young people drink water (bottled) and carbonates than juice, probably because it is only consumed during breakfast. Young people rarely choose juice as their choice of drink when they are out socializing, watching television or working.

They usually choose to consume carbonates, beers or water rather than juice. A small amount of juice is consumed in cafes or bars (probably part of some kind of alcoholic drinks, cocktails). 9. 3 Purchasing Habit: Our survey shows that most of the young Danes are very price conscious when purchasing juice. They purchase juice mostly in super markets and discount shops because of cheaper prices. They usually purchase the 1litre carton rather than the smaller 250 ml ones because they get more for the value for money and also because the big cartons are readily available in discounts. . 4 Consumer preferences: But the most favorable option for the choice of package is the 500ml paper carton with a cap and the most preferred type of juice is the organic ones. So the most important factor to the young while shopping for juice is definitely the good taste, with a reasonable price and with good health benefits. The least important to them is the trendiness and the package, probably because most of the packages and design are neither trendy nor `consumer friendly`. 10. Our Analysis using Porter’s five forces:

We are now going to analyze our field research using Porter’s five forces where we have been able to identify the actual problem as to why Rynkeby is not being able to sell its fruit and vegetable juices to the Danish youth. – The threat of entry of new competitors: New entrants like the private labels and diet cokes (coca cola zero) are a threat to the Rynkeby because the products are much cheaper and thus are raising the level of competition in the juice markets, thereby reducing its attractiveness. Rynkeby holds the monopoly in the Danish market with its wide variety of products but its premium juice product is high priced for which makes it easier for the new competitors to enter the market. – The threat of substitutes: The presence of substitute products like diet carbonates, and bottled water is lowering the juice industry’s attractiveness and profitability because they limit price levels. The young Danes are ready to pay Kr 14 for a 250ml bottle of diet coke but are not ready to pay Kr 17 for a 250ml bottle of premium organic juice.

Because of the growing health concern these people are substituting juice and carbonates to water. The packaging of the juice bottle does not appeal so much as the fancy bottles of coke and energy drinks. – The bargaining power of the buyers: Rynkeby’s juice product is sold at every supermarket, discount stores, Kiosk, cafes and bars in Denmark. It holds the dominant position in the juice market in Denmark. The product is standardized therefore the buyers get them at a bargaining price. This answers as to why the juice being sold at discount rates in the supermarkets and discount shops.

It also answers as to why the young people prefer shopping for juice in supermarkets than cafes and kiosks. – The bargaining power of the suppliers: Rynkebys fruit and vegetable juices are of the best quality and very good taste. The suppliers bargaining power is less because there are many suppliers of raw materials but not too many juice brands in the Danish market. – Intensity of rivalry: Rynkeby has a few minor rivals in the juice category (for example private labels) but with intensive marketing strategy it is still occupying the biggest share in the juice market.

But the advertisements are not as aggressive as one of its nearest rival Coca Cola, which is investing huge amounts of money in launching their new diet products (for e. g. coca cola zero) and creating a lifestyle for the young. 11. Conclusion: Our survey shows that young Danish people (15- 25 years), who are mostly students are very price sensitive when it comes to purchasing consumer items like juices. Rather than buying juice from local cafeterias and Kiosks they prefer to buy them in supermarkets and discount centers where they get it at a much cheaper price.

Young people are not aware of the amount of healthy nutrients a glass of fruit and vegetable juice provides to the body. But rather they are more conscious about the price factor when purchasing their drink. Because of the rising health awareness nowadays, the youth are indulging in all sorts of sports and physical activities to keep fit and healthy. They are switching from harmful carbonates to diet carbonates, water and fresh juices. The fall in carbonate markets is pushing the juice market on an upward trend.

The commercials of Rynkeby are not targeting the young / teenage group but rather they are targeting more adults and families with its one or two liter boxes which are mostly used at the breakfast table. Even though Rynkeby is the dominant fruit and vegetable juice company in Denmark, it faces some amount of competition from private labels too, who are offering more competitive prices than them. Following a certain kind of lifestyle is very important to the youth of today.

All in all most of them agree that Coke is unhealthy but they still buy it as it is connected with a certain lifestyle, an expression that `i`m not a kid anymore, i`m an adult`. 12. Recommendations: In order to increase sales of the fresh fruit and vegetable juice among the young people we recommend the following; ? Since there is a big percentage of youth watching their favorite TV shows in the evenings, Rynkeby should air their commercials during those times. ? Regarding the packaging we recommend that Rynkeby should make a 500ml carton with a cap on top for convenience purposes. It is clear that the age group between 15 -25 is very fashion conscious and is always seeking for brands such as Coke to express their lifestyles. Rynkeby should also position itself in the young people’s mind as the most organic and healthy brand available in the market. Rynkeby- Lifestyle is also about living healthy ? To achieve this positioning Rynkeby should do intensive advertisement especially something connected with sports and fitness becoming one with the healthy lifestyle.

They should probably make commercials targeted at the young Danes who take their health seriously. A young and famous Danish sports personality could be the icon of the brand. In this way Rynkeby can stir up the emotions of the young generation. ? Finally Rynkeby should sponsor educational campaigns and sport events along with the government to spread awareness among the youth and to identify themselves with the new healthy life style. This way they might be able to see a big difference in sales and market share of their fresh fruit and vegetables in this segment.

"Looking for a Similar Assignment? Order now and Get a Discount!

"Looking for a Similar Assignment? Order now and Get a Discount!