Tropicana Products Inc. was founded in the year 1947 by Anthony T, Rossi in Florida and since 1998 it has been owned by PepsiCo. It is an American multinational company and primarily sells fruits based beverages. The headquarters of Tropicana Products Inc. is in Chicago. Anthony T.
Rossi first founded the company with the aim to make the goodness of fruits available to everyone and it is his spirit of innovation and fresh thinking that drives the company today. In India it was launched in the year 2004, it started with 100% juice and then the product line was extended to other juice-based drinks.
In the year 2018, the business generated revenues of more than Rs 1000 crore.
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Segmentation targeting and positioning in the Marketing strategy Tropicana
Segmentation:
The segmentation strategy used by Tropicana is very smart as it tries to reach the highest profit levels for the company. The stress has always been on the fact that the juices are 100% natural and this has been labeled everywhere on their website.
Under demographics, the brand targets all the age and people with middle or higher income. Under psychographic segmentation, it targets those health conscious and those who prefer to drink juice instead of coffee or soda.
The segment it caters to are those customers who look for healthier options and take proactive efforts to take care of themselves.
Target:
The main target customers are the adults who are between the ages 21-30 and are more concerned about their health and who choose a nutritious diet and are concerned about their outlook. The other target customers are the elderly who are more concerned about their health than their outlook.
To effectively target the consumers Tropicana has a section of the website dedicated to informing the consumers about the benefits of Tropicana Juices.
Positioning:
Tropicana has a global strategy to focus on healthier and nutritious beverages. It has been positioned as a refreshing drink that consumers should choose if they don’t want sugar-based beverages and want to take care of their cholesterol and their heart condition.
PepsiCo India repositioned Tropicana with Katrina Kaif as the brand ambassador. Earlier Tropicana was seen international brand but now it wants to cater to the time-pressed millennials who find their own nutrition and health hacks to suit their lifestyles.
Mission:
Our mission as a division of Tropicana Community Services is achieved through culturally appropriate programs such as counseling, childcare, educational and employment services and youth development.
Vision:
Communities in which all individuals have equal access to opportunities to reach their goals.
Tagline:
let’s make breakfast 100%
Competitive advantage in the Marketing strategy Tropicana
Growth Strategy:
PepsiCo India Vice President – Nutrition, Mrs. Deepika Warrier said that Tropicana has an ambitious aim to open 2.5lakh outlets in 330 towns. According to her Tropicana has a determined plan to double Tropicana’s business by 2020.
The most remarkable strategy of Tropicana was to provide Premium deliverance of the products to the consumers through refrigerated juice aisles along with giving Tropicana Pure Premium to get more visibility to the consumers. Strategies like this have helped create a point of differentiation against the competitive beverage market.
Effective campaigns:
The website of Tropicana has a separate section that is dedicated of the bloggers called “TropiMamma” who are the experts who share everything about motherhood along with relevant topics like eating healthy, bargain hunting and healthy family.
The “TropiMamma” initiative shows that the brand really cares about the interests of consumers and the blogs are not only created to relate with the consumers but to give them ideas about a healthy lifestyle.
The brand also reaches out to the consumers through Facebook and Twitter and Tropicana is very welcoming towards the incentives and feedbacks from the consumers.
Positioning strategy:
Tropicana has a very youth-focused positioning and Katrina Kaif as the face of the brand featured in the “My Heath, My way” campaign. The repositioning was done with a lot of research and by gaining consumer insights. The repositioning strategy has worked in favor of the brand as it has now become more relatable with the youth.
Strong credibility:
Tropicana has a legacy that is more than 60 years old has now become a global brand and has been able to gain customer credibility and trust from all over the world and now has a strong consumer base. The brand is a presence in over 61 countries and is looking continuously looking for geographic expansion.
BCG matrix in the Marketing strategy of Tropicana
Tropicana is one of the fastest growing brands for PepsiCo in the beverage department. The per capita consumption of juices is increasing in India and the juice segment is facing high growth rates.
PepsiCo India aims to double Tropicana’s growth by 2020 and is improving its distribution of the products with more focus on the smaller towns and rural regions. They have also refreshed the brand positioning strategy. Huge investments in marketing and brand building are made by the parent company.
Tropicana has high growth capabilities and is one of the fastest growing brands. It falls in the star category of the BCG matrix.
Distribution in the Marketing strategy of Tropicana
According to Tropicana, it plans to grow the distribution network from the existing 1 lakh outlets and increase it to 2.5 lakh outlets by the end of 2019. Tropicana has a strategic partnership with Varun Beverages Ltd (VBL) to distribute and sell the Tropicana products in the East and North India.
The sale from north India accounts for 80% sale of the brand. The strategic alliance with VBL has helped Tropicana double its distribution network in the East and North region of India. PepsiCo aims to make Tropicana available in 250,000 retail outlets and also leverage the chilling infrastructure that PepsiCo already set up for the carbonated beverages.
Brand equity in the Marketing strategy Tropicana
The brand promise of Tropicana is to provide high quality, real fruit drinks to consumers and encourage them to lead towards a healthier lifestyle. The distribution system has a good network to ensure that the brand promise stays strong.
The brand Tropicana is all about letting the youth to lead a healthier lifestyle the way they want it. Earlier the packaging was an orange fruit with a straw on it, and it was changed to a glass of orange juice, the cartoon showed the actual product that was inside, this strategy, however, didn’t work in the favor of Tropicana, as the product became unrecognizable to the loyal consumers who then chose their competitors product.
Tropicana lost the brand equity they had created over 60 years. Now Tropicana has rebranded to stay connected to its loyal consumers.
Competitive analysis in the Marketing strategy of Tropicana
The main competitors of Tropicana are Minute Maid Orange Juice and Real Fruit Juices in India and Simply Orange owned by Coca-Cola Company internationally. The juices provided by all these companies’ featured 100% juice promises.
The main distinction between Tropicana and its competitors is the prices for the juice. Real has gained 2.5% share by both value and volume but Tropicana lost 5% share by both value and volume in the year 2018. ITC’s B Natural and Paper Boat both has slightly gained market share.
Customer analysis
The main consumers of the Tropicana are the health conscious youth who would choose to drink Tropicana instead of unhealthier options like Coke or Pepsi. According to research, if consumers have past experiences with Tropicana they might choose the drink right away, if they don’t they tend to conduct external or online research.
When conducted a survey among the consumers of the drink, it was found that they choose Tropicana because it’s healthier, is a good source of Vitamin D and is a good way to start the day.
Promotion Strategy
Tropicana promotes itself based on two facts, first that it is 100% pure drink and second is that it contains a large amount of fruit in each bottle. These themes have been selected to effectively reach their target audience of 21-30 years old. In its promotions, Tropicana highlights health benefits to increase sales of the product. It uses consistent themes in their advertisements with health benefits and humor to engage the audience.
Tropicana has a good number of web presence and uses networking sites such as Google+, Twitter, LinkedIn, etc. The advertisements are presented in billboards, radio, magazines, etc. Tropicana is seen using good promotion strategy and the main focus has been on the packaging of the product. On the packaging, Tropicana promotes the value of the product through “never from concentrate” testimonies.
The brand tries to communicate clearly what is in the package.
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Hi sir,
I’m not a regular reader. I was reading the post about Tropicana products Inc. because of our college assignment and the information provided by you is very helpful. Just out of curiosity, I would love to know that does Varun Beverages Limited manufactures all the drinks and just uses the label of Tropicana Products or the Tropicana provides the juices in bulk to Varun Beverages?
Salutations, sir.
I hope this comment finds you well:
Our assignment is to write a letter to Tropicana, and I’d like to know if Tropicana uses Tariff, Quota, Embargo, etc.?