Analyzing Tropicana Juice's Competitive Advantage: A Business Report

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Table of Contents
Introduction...........................................................................................................................................2
Body of the assignment.........................................................................................................................2
SWOT analysis.......................................................................................................................................2
Strength.............................................................................................................................................2
Weakness...........................................................................................................................................2
Opportunities.....................................................................................................................................2
Threats...............................................................................................................................................3
Marketing mix analysis..........................................................................................................................3
Product..............................................................................................................................................3
Price...................................................................................................................................................3
Place..................................................................................................................................................3
Promotion..........................................................................................................................................3
Value Chain analysis..............................................................................................................................4
Primary activities...............................................................................................................................4
Secondary activities...........................................................................................................................5
Business canvas model..........................................................................................................................6
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8

Introduction
The main purpose of the assignment is to analyse in detail the competitive analysis of a
chosen industry and product, this analysis has chosen the juice industry for analysis and the
company which is considered is Tropicana. The company is a fresh fruit beverage
organisation which is mainly owned by Pepsi company, the brand is in existence for more
than 57 years and has created a strong brand image in the minds of the consumers. The main
competitors for the company is Minute maid from Coca Cola company, Del Monte fruit
juices etc. This assignment focuses in analysing the competitive analysis of the company in
the current market scenario with concentration on supply chain, pricing of the products, brand
values and human resources etc. (PepsiCo, 2015)
Body of the assignment
This part of the assignment focuses in analysing the SWOT of the organisation, Marketing
mix analysis, Value chain analysis and business canvas of the company, this will enable in
analysing the competitive analysis of the company in the current business environment
SWOT analysis
The following is the detailed SWOT analysis of the company
Strength
The company possess a wide range of products which enable in enhancing the sales of the
company
The company has excellent branding and positioning in the market, the brand is in existence
for more than 55 years and is one of the best juicing brands
The product is fully focused in health oriented aspects and enjoys strong market base in the
country
The management applies aggressive push strategy and this enables in strong growth of the
products
Weakness
The price of the products is kept marginally higher when compared with other brands
The competitive factors are high from branded and unbranded products
Strong competition from the domestic markets and fresh juice shops
Opportunities
The concern for health care has increased among the consumers, hence there is a strong
growth in juice market
The market base of the juice market is strong and the company enjoys a competitive market
share
The company is now offering more varieties which includes vegetable juices and other
related segments

Supplying the product in small pack of 200 ml, 1 litre and 1.5 litre packs
Threats
The competition in the market is very high
The pricing of the products of other competitors is less when compared with Tropicana Juice
Marketing mix analysis
Product
Tropicana produces and sells various fruit juices. Almost all flavors contain juices of
common fruits, including mango, orange, grape, raspberry, lemon, grape, apple, cherry,
banana, watermelon, berry, mandarin, pineapple, peach, strawberry and blueberry. Today,
Tropicana offers more than 70 fruit juices. Interestingly, the company also produces
abrasives. In conclusion, it is almost certain that Tropicana will satisfy all tastes, brands and
diets. Pomegranate juice is one of the common fruit juices missing from the tray.( Abdullah,
2015)
Price
Tropicana's price strategy for products is the low-priced strategy. In fact, one of the most
important marketing strategies is based on this low-priced strategy. The strategy contains
lower than normal prices. This pricing strategy most of 2004 was approved, and is based on
the fact that a very pervasive sector such as Scotland and London showed a low market rate,
while non-entry regions that have not adopted a product of a larger budget than they did.
Thanks to this pricing strategy, the company registers revenue as a result of the growing
number of customers. (Stroud, 2015)
Place
Tropicana is aimed at all parts of the market with fresh, delicious and healthy fruit juices. No
one wants to be in good health today or anyone who does not want their loved ones to be in
good health. Unfortunately, unlike another healthy brand, Tropicana offers cheaper and
affordable tokens to users. Anyone with an average income can afford to buy. Messages that
encourage Tropicana every morning make it clear that everyone can get the prize. And based
on Chicago, the company has spread across six continents, with market share and an
impressive customer base. (Antony, 2017)
Promotion
Tropicana is a very successful brand because it has managed to penetrate and maintain a large
market share. Your success depends largely on your marketing strategy. Few companies have
invested in television advertising like Tropicana. In fact, Tropicana's television advertising
dominated in the early years of its existence in all markets already crowded. And his ads were
impressive. Not surprisingly, customers come to the shelves to get an idea of the products.
For example, the article "There is a tropicana in the morning", a younger TV site, led many
people to start using the product daily. The company did not publish its position in print
media compared to many companies. Newspapers and magazines and other forms of printing
and electronics are the channels through which Tropicana announces its products. Tropicana
also publishes exhibitions, games and sporting events. (Laureani, 2010)

Value Chain analysis
The value chain analysis is considered as the key strategic tool which enable the researcher in
analysing the internal activities of the company, the main focal point is to understand the key
activities which are more valuable in nature based on the cost effectiveness or competitive
advantage of the company and analyse in enhancing their presence in the market place. The
value chain analysis is divided into two major aspects: Primary activities and Secondary or
supporting activities.
Primary activities
Inbound logistics: The company possess strong inbound logistics which enables in
procuring the fresh fruits from the growers directly, the company has entered into long term
contracts with fruit farmers who supply regular, high quality fruits to the company on a daily
basis, the company uses self transportation and supply chain management operations for
transferring the fruits to the warehouse.
Operations: The company has its presence in major cities and towns, the brand of Pepsi and
Tropicana is owned by Pepsico and hence the business has stronger market presence in
various areas. The company holds larger market share in the juicing segment, also the
company tends to supply the juices to the wholesalers and retailers who then sells them to the
end consumers for a commission. (Buch, 2016)
Outbound logistics: The company sells the goods to the retailers or wholesalers who
normally sells it to the consumers, furthermore the company holds vending machine in busy
streets and junctions like railway stations, airport terminals etc wherein the consumers uses
the cash and carry mode to get the desired products.
Sales and Marketing: The company holds the largest advertising budget with nearly $2
billion being focused for various products, Tropicana juice brand gets a considerable share of
nearly 25% in the advertising budget which enables the brand to focus in attracting the
consumers. The company applies various modes like media advertising, social media

marketing, extensive product placements and varieties and using celebrity for branding the
product, these aspects enable the consumers to relate the product for healthy juices which will
enable them to maintain good health in a full extent and stay more active. (Knowles, 2015)
Service: The company always focuses in delivering quality products to the consumers within
specified deadline, the company uses various modes to sell the finished products to the
consumers The company uses fast food chains, catering houses, restaurants as well to sell the
products. Hence the company need to understand the need of the customers from time to time
and provide utmost services to the consumers. The firm possess high end customer service
executives which enable in addressing the needs of the customers, position the brand in a
positive manner and create products based on the needs of the customers.
Secondary activities
The firm not only focus in primary activities but also involve in enhancing the other related
activities to strengthen the brand and increase the sales for possessing competitive edge over
the competitors
Business infrastructure: The company uses the resources of bottling companies and others
who will process the juicing products and packaging them. The company brands the product
in a clear manner and checks for quality before sending the product to the customers
Human resource department: The company appoints the best in class individuals who will
be responsible in attracting the wholesalers and retailers to purchase the products for selling it
to the customers, furthermore the company focuses in training the employees in a better
manner so that they can involve in positioning the brand to a large extent, the customer
service department always understand the issues faced by the customers and deliver the
quality products to the customers.
Procurement: The company procures high quality fresh fruits and vegetables from the
farmers directly, this enables in having low cost supply and long term contracts so as to
ensure that there is no shortfall of the raw materials. (Dreachslin, 2017)
Technology: The company uses extensive research and development in order to ensure that
the product is always adhering to the food standards of the country and also involve in
creating new products based on the needs of the customers, the company uses appropriate
preservatives and fresh fruits for manufacturing quality products.

Business canvas model
Key Partners
 The key
partners are
Fresh fruit
farmers,
wholesalers
and retailers
 Vending
machine
operators,
restaurants
and fast
food chain
Key Activities
 Fresh fruit
juices and
vegetable
juices
 Using the
existing supply
chain
operations of
the company
Value
Proposition
 Focus on
health
segment
of the
customers
 Creating
new
products
for the
benefit of
customers
 Strong
brand
image
 Products
are
available
in various
quantities
Customer
Relationships
 Highly
trained
customer
relationship
manager and
employees
 Extensive
advertising
and
promotional
events
Customer
Segments
 General
customers,
kids and
adults
Key Resources
 The key
resources are
supply chain
management,
employees,
fruits procured
directly from
farmers and
efficient
employees
Channels
 Products are
sold to
wholesalers
and retailers
 Products are
sold through
vending
machines
 Sold through
fast food
chain, café
shops,
restaurants
etc

Cost Structure
 The main cost involved is the processing
of fresh fruits to the juices
 Advertising budgets
 Distribution cost
Revenue Streams
 Sales from the wholesalers and
retailers
 They will be paid commission based
on the total number of units sold by
them
Conclusion
The company possess a wide range of products which enable in enhancing the sales of the
company The company has excellent branding and positioning in the market, the brand is in
existence for more than 55 years and is one of the best juicing brands. The product is fully
focused in health oriented aspects and enjoys strong market base in the country. The value
chain analysis is considered as the key strategic tool which enable the researcher in analysing
the internal activities of the company, the main focal point is to understand the key activities
which are more valuable in nature based on the cost effectiveness or competitive advantage
of the company and analyse in enhancing their presence in the market place. (He, 2014). The
company sells the goods to the retailers or wholesalers who normally sells it to the
consumers, furthermore the company holds vending machine in busy streets and junctions
like railway stations, airport terminals etc wherein the consumers uses the cash and carry
mode to get the desired products. The company holds the largest advertising budget with
nearly $2 billion being focused for various products, Tropicana juice brand gets a
considerable share of nearly 25% in the advertising budget which enables the brand to focus
in attracting the consumers. The company uses the resources of bottling companies and others
who will process the juicing products and packaging them. The company brands the product
in a clear manner and checks for quality before sending the product to the customers. The
company appoints the best in class individuals who will be responsible in attracting the
wholesalers and retailers to purchase the products for selling it to the customers, furthermore
the company focuses in training the employees in a better manner so that they can involve in
positioning the brand to a large extent, the customer service department always understand
the issues faced by the customers and deliver the quality products to the customers.
References
Abdullah, M.M.B., J. Uli, and J.J. Tar, (2015), “The relationship of performance with soft
factors and quality improvement.” Total Quality Management and Business Excellence, Vol.
20, No. 7, pp. 735-748
Antony, J., F. J. Antony, and M. Kumar, M. (2017),“Six sigma in service organizations.”
International Journal of Quality & Reliability Management, Vol. 24, No. 3, pp. 294-311.
Buch, K.K. and A. Tolentino, (2016),“Employee expectancies for six sigma success.”
Leadership &Organisation Development Journal, Vol. 27, No. 1, pp. 28-37.

Dreachslin, J. and P. Lee, (2017), “Applying six sigma and DMAIC to diversity initiatives.”
Journal of Healthcare Management, Vol. 52, No. 6, pp. 361-367.
He, Z., X.T. Zhang, and M. Zhang, (2014), “Reducing the voluntary turnover rate of
dispatched employees by the DMAIC process.” Total Quality Management & Business
Excellence, Vol. 25, No. 7/8, pp.842-855.
Knowles, G., W. Linda, J.H. Femat, and F.D.C. Canales, (2015),“A conceptual model for the
application of Six Sigma methodologies to supply chain improvement.” International Journal
of Logistics: Research and Applications, Vol. 8, No. 1, pp. 51-65.
Laureani, A. and J. Antony, (2010), “Reducing employees' turnover in transactional services:
a Lean Six Sigma case study.” International Journal of Productivity and Performance
Management, Vol. 59, No. 7, pp. 688-700.
PepsiCo Food Manufacturing Facility, Wuhan, China (2015). Food Processing Technology.
Available at: http://www.foodprocessing-technology.com/projects/pepsico-food-
manufacturing-facility-wuhan/
Stroud, A. (2015) “Why PepsiCo Supply Chain Innovation Matters Organization Wide”
APQC, Available at: https://www.apqc.org/blog/why-pepsico-supply-chain-innovation-
matters-organization-wide