Beast Juice: Market Analysis and Entry for Philippines, 2024

Verified

Added on  2020/03/04

|12
|3534
|56
Report
AI Summary
This report provides a comprehensive market analysis for the potential launch of 'Beast Juice' in the Philippines. It begins with an executive summary highlighting the growing demand for juice products driven by health consciousness. The introduction details the rising consumption rates and the shift in perception from a children's commodity to a health-focused beverage. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors influencing the market. The analysis emphasizes the Philippines' favorable climate for fruit production, its stable political climate, and the growing economy with increasing disposable incomes. The report also considers technological advancements, environmental concerns, and legal frameworks. The report concludes that the Philippines presents a promising market for Beast Juice, with the potential for significant growth due to favorable conditions and consumer trends. This report is available on Desklib, a platform offering past papers and solutions for students.
Document Page
Running head: BEAST JUICE
1
‘Beast Juice’
Student’s Name
Institution Affiliation
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
BEAST JUICE
2
Executive summary
The Philippines is a country that has raised concerns in the market for juices raising
eyebrows for the major stakeholders to establish investments in such a lucrative business
(Euromonitor). As a result consumers for juice products in Philippine continue increasing
awareness regarding health consciousness an issue that has led to the demand for juice product in
the country (Euromonitor). Initially, juice was perceived as a product that was consumed by
children.
Introduction
Philippines is emerging from its perception of juice as a children commodity as a result
of awareness from health practitioners and also due to trends from wellness centers a move that
has seen more consumers increase juice intake. In 2016, it was reported that the volumes of juice
consumption rose by 5% a rate that was higher compared to the year 2015 that recorded 3%
(Euromonitor).The rate of increase can be attributed to spending that originated from elections
being held in the subsequent year. Also, it proved that more increases in sales volume of the
juice during the election season was beneficial to commodities that were priced lowly such as
juice products (Hill & Hult). The prospects in the juice industry continue to increase as a trade
off volume is expected to increase over the coming years as demand for juice continues to rise.
The sustained campaigns and health awareness are some of the critical issues that have resulted
in juice industry gain popularity in the Philippines. However, it is expected that over the coming
years, there will be slow growth rate in the juice sector (Euromonitor). The mix and the juice
blend and the lower prices charged for the products are some of the factors that will continue to
support growth and stability in the beverage sector.
Document Page
BEAST JUICE
3
PESTLE analysis
Philippines experiences tropical marine climate accompanied with hot and humid
atmosphere annually. The country experiences a rainy season in most months of the year.
However, typhoons are common in September. The Philippines experiences hot summers
something beneficial for fruits ripening and processing. One of the factors making Philippines
ideal for Beast juice is the favorable climate for fruit production. In most cases, fruits are favored
by certain weather conditions and the climate and Philippines has an ideal climate that is tropical
with summer seasons during most times of the year. The availability of fruits as a raw material
for juice processing and production entirely depends on the supply of fruits. The Philippines has
a remarkable proven record of being a leading export of fruits to other countries. Therefore, the
supply of raw materials for juice production is not a hurdle for the juice company. A constant
supply of fruits for production of Beast juice makes the Philippines a competitive advantage due
to the availability of fresh fruit. The steady supply of fruits also ensures that costs associated
with importing fruits are cut down. According to a report that was conducted as to the reasons
behind high prices for fruit juices was due to importation fruits that have the effect of increasing
production costs. However, that is not the case with the Philippines as it is richly endowed with
fruits due to its favorable climate and weather conditions throughout the year. Thus, the Beast
will not face production limitations as a result of limited supply. It also follows that most
companies will relocate to other countries following ready supply of raw materials.
The hot climate is also critical for a cold drink. Scientifically it has been proven that there is
a link between hot weathers and the amount of water consumed by individuals. During hot days,
Document Page
BEAST JUICE
4
a lot of water is consumed as opposed to the cold days. With Philippines weather, the demand for
Beast juice will be ideal as more customers will consider juice as an option to quench their thirst.
As a result, a ready market will be provided for the juice. As stated in the introduction, there
have been increases of concerns by the clients over the need for being healthy in fact it is a trend
that has been identified in the juice industry. Due to the rise of many maladies, health
professionals advise their clients to utilize and make use of juices from fresh fruits. The
Philippines happens to be one of the countries where consumers are concerned with maintaining
fitness and as many such clients are looking for fresh juices that have been blended to suit their
tastes and preferences. The Beast juice would be a plus for many as it has been combined and
comes in many types of fruits for different customers.
The political climate in the Philippines is one characterized with a lot of calmness making
it favorable for many investors wishing to establish investments as compared to other countries.
One of the risks associated with creating premises in a foreign nation is the fear for political
instabilities that may lead to the destruction of property and other key investments. However,
Philippines experiences many years of peace and has not shown any sign of weakness
whatsoever. In fact, it is one of the countries that exercise democracy something that other
countries are striving to get (Jurevicicus, 2013). As such, there is 100% chance of calmness that
would encourage the establishment of foreign investments and attract investment. It is in lieu
with such a political climate that makes Philippines one of the best countries to establish the
Beast Juice from Australia (Czinkota, Ronkainen, & Moffet, 2011). Systems of government may
inhibit investors in the case where the country is under dictatorship and business environment in
such cases is controlled by powerful officials and cartels (Manager) that in most cases safeguard
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
BEAST JUICE
5
and protect interests in their domain. It is such persons that fear competition more so if a foreign
firm is being established in their area of interest and as such may not accept entry of other firms.
Over the past few years, it has been claimed that death squads under President Rodrigo
crippled democracy. However, it is ironical that the country experiences robust economic growth
and Philippines has been ranked as one of the growing economies in the global politics. The
report was the latest from the World Bank, and the economy is expected to grow to 7.5 %
increase from the previous which stood at 6.5%. (Bush, 2017)In 2017, GDP reached 12.4%
demonstrating a healthy economy accompanied by low inflations and low debt signifying a
stable macroeconomic atmosphere. Such elements of the economy sustain a healthy demand
something that has boosted exports. By April this year, exports grew by 12.1% and translated to
$4.8 billion. Using the above illustrations, it is evident that the Philippines pose a good ground
for selling Beast juice. One of the key elements used by firms when entering new markets is the
condition of the economy (SunStar, 2016). GDP is one of the measures used in communicating
the status of the economy. As for the Philippines, the GDP already proves beyond reasonable
doubt that it would provide a ready market for the Beast juice (SunStar, 2016). Availability of
households with average disposable incomes is one assurance that the juice already has a ready
market. A healthy economy has the benefit of offering better prices for the commodities offered
in the market (SunStar, 2016). As such it ensures reasonable prices for the producers and other
relevant stakeholders.
Technological environment
Amidst major developments in global operations as a result of platforms such e-business
and e-marketing and the use of social media, business is no longer the same. Globally, the
Document Page
BEAST JUICE
6
number of people having access to the internet is magnanimous and also partly because many
people are literate making them demand internet services from network providers (Warner,
2010). The rise of the web has had significant benefits to businesses and creates more
opportunities that would not be identified were it not for the web. A good example is advertising
through social network blogs such as Facebook and Twitter. Recently, in the wake of the
internet, we have seen businesses seeking solutions through such social platforms (Professional
Academy). Philippines prides itself of a literate population where the majority of the people are
ardent users of the internet. As a global trend, businesses are operating their services through the
internet, for instance, offering advisory services on the products they sell and where they can be
found, and in some instances, they will require an address to deliver the product to their clients.
Beast juice is no exception in being advertised and popularized through the internet. Being a new
product requires massive campaigns and advertisements to popularize and advertise the product
so that customers will be acquainted with the product. Also, social platforms such as facebook
and twitter have the effect of making people feel like part of the company by sharing on how
they feel about the product and what things they may want to be changed (Professional
Academy). Beast juice can use such avenues in the Philippines to make consumers feel part of
the company and develop customer loyalty. The Philippines is among countries in the world that
have many internet subscribers and as such creates a good social media platform for the
launching of the beast juice and such a strategy of using social media would bear desired fruits in
increasing results for the company.
Environmental concerns
A country like the Philippines is increasingly creating awareness for the producers and
manufacturers of various products due to issues such as pollution and emission of greenhouse
Document Page
BEAST JUICE
7
gases that have led to global warming something that world leaders are trying to fight (Bush,
2017). Each country has been given a role and responsibility in reducing the greenhouse
emissions. Businesses are urged to conduct their activities ethically to ensure corporate
responsibility on their part to the surrounding societies and communities. For instance, in the
Philippines, there is a carbon target footprint that the government has set for companies and the
business sector (Posner & Applegarth, 2014). Looking at Beast juice, it uses raw materials such
as fruits in their natural setting meaning there are less harm and emission of gases to the
atmosphere (Dlabay & Scott, 2011). In such a case of the beast juice, it will not suffer from
compliance issues in a nation such as the Philippines. Consumers of late have been demanding
products that promote a green economy and fruits are some of the goods supporting a green
economy. The availability of packaging containers that pollute the environment less in the
Philippines is a plus for establishment for beast juice operations. Glass and plastics are easily
recycled and pollute the environment less compared to other materials.
Legal frameworks
Legal considerations are important of an external analysis as they lay down the required
processes for setting up operations in foreign markets. Such factors include consumer rights and
product safety among others such as health and safety (CIPD). It is important for business firms
to understand of what composes legal aspects in another country. However, Philippines legal
frameworks have been known for instituting some of the best legal practices that favor the
business community (Czinkota, Ronkainen, & Moffet, 2011). For instance, it is mandatory for
companies to label their products and show the ingredients used as part of ensuring that there is
complacency on the part of the company. Such a policy protects consumers from false
advertisements evidenced in other countries. Such a policy will help and promote ‘Beast juice’
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
BEAST JUICE
8
since it is natural with no other chemical ingredients something that many consumers are
avoiding especially now that many cancers are attributed to consumption of chemicals. Issues
dealing with employment relations are enshrined in Philippines Constitution ensuring equal job
opportunities for all people with no discrimination in work places (Dlabay & Scott, 2011). It is
due to such considerations that make the Philippines one of the ideal countries for ‘Beast juice.'
The ease of obtaining business makes the Philippines a safe country for investing especially in
the case where there is a partnership with Pilipino. Partnerships with the locals are highly
encouraged as a means of establishing foreign businesses in the Philippines.
Social factors
Philippine population continues to rise, and in the year 2017, it is expected to be
105,760,000 as per reports population commission. According to data by Statistics Authority
women of reproductive age are projected at 27,300,400 and women in this category are
beneficiaries of health services under Health Law. Some adolescent girls are also expected to
increase to over ten million in the coming year. The Philippines center of data expects that the
number of adolescent girls expected to give birth by December 2017 is estimated to be over
200,000 (SunStar, 2016).The number of women of reproductive age continues to rise, and the
trend is expected to continue all the way to the year 2022.The increase in population is as a result
of an increase in fertility levels among women were on average a woman is expected to give
birth to three children. It has also been proved beyond reasonable doubt that there are more
males born per woman as compared to the number of females born per minute in the Philippines
(SunStar, 2016). A large population is beneficial to businesses in any country as they provide a
market for the goods and services in such a country. As for Philippines large market, such a
market is important for Beast juice as it means a ready and a large market for the juice industry.
Document Page
BEAST JUICE
9
Also, a large population is critical as it provides a large pool of labor that is cheap. Philippines
population comprises of many youths, and as such, it is an active labor force that is engaged in
work (McDonough, 2017). The Philippines is also a source of cheap labor due to the huge
population making a supply of labor in the surplus and according to labor economics, whenever
the supply of labor of labor exceeds demand, then the wages fall making labor cheap.
Threat
Del Monte Philippines, a major competitor and distributor of juice, dominated the
market in 2016 and commanded a market share of 32%.The Company boasts of a popular image
as a result of marketing campaigns and also from a sound manufacturing policy adopted by the
company (Mourdoukoutas, 2017). The company has also mastered the concept of blending
classic flavors for many seasons something that has benefited the company regarding
commanding a large market. The packaging by the company is also another strategy used in
ensuring it continues to lead in the market as it uses 1-liter liquid packets since 2013.Del Monte
in the Philippines has made an extension of the line of products it offered for instance in 2013,
the company introduced pineapple blueberry and strawberry and also launched pineapple pomelo
and lychee in 2016. Beast juice faces significant hurdles in penetrating the Philippines market
due to the already presence of Del Monte and other relevant stakeholders in the market for juice.
Opportunity
One huge opportunity for Beast juice is the fact that the company has competitive prices
as compared to juices from Del Monte. In fact, Beast juice favors many customers due to the
economical prices it offers that are affordable to many people as a large proportion of the
proportion is composed of low and middle-income incomers and such segment will form a large
Document Page
BEAST JUICE
10
market for Beast juice in the Philippines (Daneils, Radebaugh, & Sullivan). Also, the large
population in the Philippines is ideal for providing a work force that is second cutting down the
costs of productions (Marmol, Feys, & Probert). The Philippines has also been on the forefront
as a tourist destination, and the presence of tourists makes it ideal for launching such a product
(Focus). Also, Beast juice has been blended in other tastes to quench and serve varying customer
needs. Customization of the juice makes it possible to have a large audience to be served making
sure those different tastes and preferences are served.
Recommendations
It would be necessary for Beast juice to be packaged in packets just like Del Monte to ensure that
such a product competes favorably in the market. Also, appropriate pricing strategy is critical for
a new product in a new market such that such prices take into consideration operational costs
among other costs. The use of relevant advertising is also essential to make sure that the business
popularizes its products and creates awareness among consumers of the existence of such a
product. The use of social media platforms helps identify with customers and make them feel
part of the business.
Conclusion
From the above illustrations, it is evident that the Philippines is an ideal country for the
launching of Beast juice due to factors such as the comparative advantage of a warm climate that
favors production of fruits. Despite stiff competition from companies such as Del Monte, it is
evident with running campaigns trail and marketing; the Philippines could offer a lucrative
market.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
BEAST JUICE
11
References
Bush, T. (2017). PESTLE Analysis:Environmental Factors Affecting Business. Retrieved August 22, 2017,
from pestlenalysis.com: http://pestleanalysis.com
C, H., C, W., & Udayasankar, K. (2016). International business. Singapore: McGraw Hill Education Asia.
CIPD. (n.d.). PESTLE Analysis:Factsheets. Retrieved August 22, 2017, from CIPD: http://www.cipd.co.uk
Czinkota, M., Ronkainen, I., & Moffet, M. (2011). International business. Hobonken(N.J): Wiley.
Daneils, J., Radebaugh, L., & Sullivan, D. (n.d.). International business.
Dlabay, L., & Scott, J. (2011). International business. Mason,OH: South-Western Cengage.
Euromonitor. (n.d.). juice in the Philippines. Retrieved August 22, 2017, from Euromonitor.com:
http://www.euromonitor.com
Focus. (n.d.). What is PESTLE Analysis? Retrieved August 22, 2017, from Focus-on-training:
http://www.focus-on-training.co.uk
Hill, C., & Hult, G. (n.d.). International business.
Jurevicicus, O. (2013). If it's Time to be Brave a PEST may be your Best Defence. Retrieved August 22,
2017, from Strategic Management Insight: http://www.strategicmanagementinsight.com
Manager. (n.d.). PESTLE Analysis . Retrieved August 22, 2017, from The Happy Manager: http://the-
happy-manager.com
Marmol, T., Feys, B., & Probert, C. (n.d.). PESTLE analysis. 50Minutes.
McDonough, M. (2017). Understanding a PESTLE Analysis and its Components. Retrieved August 22,
2017, from Brighthub Project Management: http://www.brighthubpm.com
Mourdoukoutas, P. (2017). Forbes Welcome.Forbes.com. Retrieved August 22, 2017, from forbes.com:
http://www.forbes.com
Posner, K., & Applegarth, M. (2014). Project Management Pocketbook. New York: Management
Pocketbooks.
Professional Academy. (n.d.). Marketing Theories-PESTEL Analysis. Retrieved August 22, 2017, from
professionalacademy.com: http://www.professionalacademy.com
SunStar. (2016). Philippine population to grow 105.75 million by end 2017. Retrieved August 22, 2017,
from SunStar: http://www.sunstar.com.ph
Warner, A. (2010). Strategic analysis and choice. New York: Business Expert Press.
Document Page
BEAST JUICE
12
chevron_up_icon
1 out of 12
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]