Fresh Juice Drinks Market

The world juice market began its formation in the first half of the 20^th century (Márquez 2014). The production had a local nature, and export-import operations had a very limited scale. With the development of agriculture and processing industry in the countries producing fruit and vegetable goods, the production of juices, including concentrates, began increasing. The establishment and strengthening of the trade and economic relations with the suppliers of juice products enabled the expansion of exports from such countries. The emergence of new technologies of canning and packaging of the product in the 40’s – 50’s positively affected the growth of juice products imports in countries with limited agricultural and manufacturing capabilities (Márquez 2014). The range of products in the consumer market segment also expanded due to new technology blending, canning, and packaging of the finished product. The world market is multidimensional and should be considered in terms of applied technologies, assortment, and geographical context, taking into account the consumption issues and trends (Ashurst & Hargitt 2009).

The human body can exist for a long time without food, but without water, a person cannot live more than ten days. The daily adult requirement of water is 1740-2200 grams (Taylor 2016). This need is also covered by different drinks at food, which also contain water. In order to meet the needs of the organism in water and quench the thirst, juices and drinks must have certain physiological effects on the body, depending on their refreshing capacity, nutrient, stimulating action, harmonious taste, and other properties. Fruit and vegetable juices that hold specific flavour and nutritious ingredients in their content fully meet these requirements.

Juice is a liquid product obtained from ripe and fresh fruits and vegetables in the process of their mechanical processing. The consumption of juices is increasing worldwide. Such rapid increase is the result of drinks high nutrition value, as well as the considerable profitability of their production. Nowadays, it is profitable and beneficial to earn money selling vitamins, because the demand for natural beverages is rapidly growing. When consumers buy a particular product they take into account the quality, price, and design of the product, as well as the product’s compliance with their needs, desires, and requirements.

Objectives:

• to analyse the juice market in the United Kingdom;
• to analyse the consumption of juices in the current market and the tendency of juice manufacturers’ development;
• to find out whether there is a need for Coca-Cola Ltd to introduce new drinks;
• in case there is a need to introduce a new juice product, the paper will find out what juice products are in demand in the United Kingdom.

Analysis of recent research and publications

The theoretical and practical aspects of juice market research in the United Kingdom were broadly displayed in the works of different scientists. However, the influence of various factors on the enhancement of juice production demand remains not fully discovered. Therefore, there is a need for further theoretical and practical study in this direction. Recently, the juice market of the United Kingdom has been experiencing rapid and dynamic development. The share of production is increasing annually by 10-40%, while exports increase on average by 45% (MINTEL n.d.). Every resident of the Great Britain consumes approximately thirty litres of juice per year, while Americans consume 60 litres (STATISTA n.d.).

The potential of the domestic producers, existing in the market is limited to such factors as low purchasing power of the consumers and increase competition in the commodity market (Naing, Aaron, & Kurzrock 2010). The set of circumstances defines the scientific and practical relevance of the economic development of the industry. One of the most pressing problems of the industry is the shortage of domestic raw materials for juice re-processing. The companies are looking for new suppliers of raw materials from various countries, as the share of their own raw provision amounts to only approximately 20% (STATISTA n.d.). Such situation, in turn, leads to a dependence on imports. It is essential in a competitive market to introduce nana-technologies for future production and focus on the cultivation of modern varieties of vegetable and fruit cultures. Many companies purchase land plots where they grow raw material (plant fruit trees) that can be further processed into marketing product (Luckow & Delahunty 2004). Since juice is the wholly natural product that must be stored properly (it has the ability to ferment), the market introduces many types of juice products, depending on the type of fruit processing.

In order to increase the number of consumers, the producers of juices constantly expand the variety of juice products, which include not only the juice. Juice products also include nectar, fruit drinks, and juice drinks. All these products differ in their ingredients content and taste. Juice is a liquid food product, which is produced by squeezing fresh, rape, and unspoiled fruits, vegetables or berries (Taylor 2016). Juices do not contain chemical preservatives, pigments, flavourings, and sweeteners. Nectar is a food product fabricated from concentrated juice (puree) and drinking water (Taylor 2016). The proportion of concentrated juice (puree) should be at least 20-50% of the total volume, depending on the type of fruit or vegetable (Taylor 2016). It is forbidden to add chemical preservatives, flavours, and sweeteners to the nectar. Typically, nectars are made from such types of fruits, berries or vegetables, the juice concentrate of which is too thick and has a concentrated flavour. Juice drink is a liquid food product, with a share of juice (puree) at least 10%, which is made by mixing juice and/or puree, concentrated juice (puree), and drinking water (Taylor 2016). It should be noted that for the production of juice drinks, the manufacturers use a great number of different kinds of traditional and exotic fruits. Morse is a liquid food product, which is produced from a mixture of juice of berries (berry puree), drinking water, and sugar (or honey) provided that the minimum proportion of concentrated juice is at least 15% of the total volume (Taylor 2016). Instead of water, manufacturers can use water extract obtained in the process of berries squeezing.

According to the results of marketing studies, the main consumers of juice are young people aged 25 to 34 years. Most of the consumers live in cities and their share comprises 90% (MINTEL n.d.). Approximately 50% of the city consumers drink juice at least twice a year (MINTEL n.d.). Regardless of the fact that juice as a product is consumed equally by men and women, the number of consumers is still dominated by women. A diverse assortment and proper pricing is a substantial advantage in the struggle for the customer as it allows the company to react quickly to the market changes (Neves et. al. 2011). The main motivation of juice consumption among urban population distributes as follows: a source of vitamins – 48,3%; natural product – 26.1%; delicious beverage – 8.6%; domestic product – 3.4%; drink that quenches thirst – 3.0% (MINTEL n.d.).

The current competition in the Great Britain market is high enough and includes approximately 400 producers, 20 of which are large enterprises (STATISTA n.d.). The local population prefers juices of local production, and the share of imports comprises approximately 10% (Hyeyoung, House, & Gao 2012). In order to sell the products in the United Kingdom market, the manufacturer must first understand the internal consumer. Many companies failed to choose the right strategy and were forced to leave the market. The main places selling juices in cities are stationary trading networks (shops and super markets) and semi-stationary trading networks (tents, kiosks, and pavilions). Moreover, one can notice that selling juices and drinks through vending machines becomes more popular nowadays.

Conceptual Framework

The current study aims at examining the theoretical framework of the agents that influence the juice purchase decision of random supermarket customers of different gender, age, and social level. The study will determine the main characteristic features that provoke Coca-Cola Ltd. juice drinks preference. The research framework of the study is concentrated on the determinative factors of consumers’ decision to buy particular juice drinks controlled by the taste, brand, advertisement or novelty acting as the mediators between the consumer and the product. Accordingly, the paper will determine the following visualized hypotheses:

• Brand = Juice Purchase
• Taste = Juice Purchase
• Advertisement = Juice Purchase
• Novelty = Juice Purchase

Analysing the factors, which influence the consumers’ choice of goods and buying behaviour, the study will answer the following research questions and will test the following hypotheses:

• RQ1: How does effective advertisement influence juice purchase?
• H1: Effective advertisement enhances juice purchase.
• RQ2: How does brand influence juice purchase?
• H2: Brand enhances juice purchase.
• RQ3: How does taste influence juice purchase?
• H3: Good taste is the main factor that enhances juice purchase.
• RQ4: How does novelty influence juice purchase?
• H4: Novelty has the least influence on juice purchase.

Project Report

The report was submitted in a written form. The project team made the oral presentation of the findings, conclusion, limitations, and recommendations.

Project Cost and Schedule

The project was completed within the period of 14 weeks (67 working days) from the time Coca-Cola Ltd. marketing personnel supplied the project team with the necessary information requirements. The data collection process was completed within a seven-week period. The financial viability of the project did not exceed £5.000. The study was launched on January 4, 2016 and ended on April 4, 2016.

Activity	Time Period	Responsibility
Meeting Coca-Cola HC MKTG Personnel	January 4, 2016	IMC
Designing Questionnaire	January 5-6, 2016	IMC
Obtaining Coca-Cola HC Approval	January 7-8, 2016	IMC
Pretesting Questionnaire	January 10-13, 2016	IMC
Redesigning Questionnaire	January 14, 2016	IMC
Making Multiple Copies	January 15, 2016	IMC
Developing Coding Mechanism	January 15, 2016	IMC
Selecting Sampling Frame	January 4-15, 2016	IMC
Data Collection	January 18-29, 2016	SIR
Data Entry	February 1-16, 2016	SIR
Data Error Checking	February 17-19, 2016	IMC
Data Analysis	February 22-March 2, 2016	IMC
Report Writing/Tables/Graphs	March 3-11, 2016	IMC
Obtaining Feedback from HC	March 14-17, 2016	IMC
Additional Analysis	March 18-22 2016	IMC
Making Changes in Report	March 23-29, 2016	IMC
Submitting Final Report	March 30- April 1, 2016	IMC
Making Presentation to HC	April 4, 2016	IMC

Participants

The participants included 100 random customers from the local supermarkets. From the majority of respondents, 68 were female, while the remaining 42 were male. The respondents were aged between 14-60 and more years. The largest age group of participants (42 respondents) were 31-40 years old, 9 respondents were 14 years old or younger, 23 – aged 21-30, 6 – 15-20, 10 – aged 41-50, 6 – aged 51-60, and 4 – aged 61 or older.

How It Works

Materials

During the research, the simple random sampling procedure was implemented. The project team selected 100 random customers from the local supermarkets (of different gender, age, and social status) as a testing frame of the research. The questionnaires were distributed by implementing non-probability testing method. The survey included a set of multiple choice questions with the options to provide individual information different from the one mentioned in the sample. Some questions required the respondents to answer individually without the opportunity to choose the option. The respondents were selected randomly to ensure that the study would grasp a broad group of individuals of different ethnical and social level, different gender, age, as well as different preferences. Therefore, the study allowed assessing the answers of representatives of diverse groups. Moreover, simple random sampling method ensured objectiveness and a substantially broader area of investigation while it grasped a diverse group of individuals rather than intentionally categorized one. The main aim of the research was to achieve the purpose of the project, in particular, to analyse the juice market in the United Kingdom, analyse the consumption of juices in the current market, and examine the tendency of juice manufacturers’ development.

Questionnaire Sample

1. What is your gender?
2. Male
3. Female
4. What is your age?
5. 14 or younger
6. 15-20
7. 21-30
8. 31-40
9. 41-50
10. 51-60
11. 61 or older
12. How often do you buy juice drinks?
13. Never
14. Rarely
15. Once a week
16. Often
17. Everyday
18. Other (specify) _________________________
19. What fruits do you like? (can choose more than one option)
20. Apricot
21. Banana
22. Apple
23. Cherry
24. Blackberry
25. Blueberry
26. Kiwi
27. Lemon
28. Lime
29. Grape
30. Mango
31. Orange
32. Pear
33. Strawberry
34. Pineapple
35. Peach
36. Other (specify) ___________________________
37. Do you prefer fresh juice drinks or juice from concentrate?
38. Fresh
39. Concentrate
40. Please specify fruit combinations you prefer ­­________________________________
41. Please specify brands the drinks of which you prefer _________________________
42. What attracts you to the product?
43. The brand
44. Advertisement
45. Its popularity
46. It is new
47. The packaging
48. The way it looks on the shelf
49. Other (specify) ____________________________
50. Do you prefer buying juice in a bottle, a can or a carton?
51. Bottle
52. Can
53. Carton
54. It does not matter
55. What is the maximum price that you are ready to pay for a fruit juice drink?
56. £1 – 1.5
57. £2 – 2.50
58. £3 – 3.50
59. £4 – 4.50
60. £5 – 5.50
61. Other (specify) ______________________________

Data Analysis

Having received all of the questionnaire samples, the project members started analysing the responses. In the process of analysis, it was investigated that 68 females and 42 males participated in the survey. 42 participants were 31-40 years old, 23 – 21-30 years old, 10 – 41-50 years old, 9 – 14- years old, 6 – 15-20 and 51-60 years old, and 4 – 61+ years old respectively. The majority of respondents (39 participants) admitted they bought juice drinks often. 26 participants stated they bought juice drinks once a week, while 17 participants bought juice products every day. The residual 14 participants claimed they bought juice drinks rarely, while 4 participants admitted they bought juice drinks several times a day. Analysing the popularity of the fruits used for the drinks, the respondents highlighted banana, apple, cherry, pear, grape, and pineapple. Exotic fruits were proven to be less popular than common, accessible, and more natural fruits. 12 respondents claimed they preferred vegetable juices, namely carrot, tomato, and celery juices. The majority of respondents prefer fresh juices to concentrates and are ready to pay more money for the high quality products. The following tables and charts will describe the results of the research more precisely.

Results

According to the reports, the main factor influencing consumers’ purchase behaviour and choice of juice in the package was a good taste. The factors of secondary importance were price, brand, and product advice of others, while the factors of the least importance included packaging, novelty, and promotional products. Although the packaging was one of least important factors affecting the choice of juice, it should be noted that the packaging tend to influences the change in taste of juice products during storage. Manufacturers guarantee the preservation of the quality of juice for a specified period of time (approximately 1 year of storage at different temperatures).

Recommendations

1. Develop a new marketing strategy and analyse the need for the new product introduction.
   After the outcomes of the research, Coca-Cola Ltd. will analyse its marketing strategy and consider the need for the introduction of new product. Taking into consideration the factors that impact the preferences and buying behaviour in the juice market, the company will develop a new marketing strategy dealing with the aspects mentioned by the respondents.
2. Update or improve current marketing strategy.
   After analysing the results, Coca-Cola Ltd. will have to reconsider its marketing strategy and concentrate on the aspects that need particular improvement. Taking into consideration the factors that impact the preferences and buying behaviour in the juice market, the company will improve its current marketing strategy dealing with the aspects mentioned by the respondents. As a result, the updated strategy will help satisfy the company’s purpose and customers’ expectations. The company will decide whether it is profitable to introduce a new drink or not.
3. Do not make any corrections in the marketing strategy.
   After the analysis of the results, Coca-Cola Ltd. will analyse its marketing strategy and conclude that:

• The marketing strategy is perfect and there is a need to introduce new product;
• The marketing strategy is perfect but there is no need to introduce new product;
• The marketing strategy is not perfect and there is a need to introduce new product;
• The marketing strategy is not perfect but there is no need to introduce new product.

It is recommended to conduct consumer researches constantly, which will help satisfy different market segments and retain leading position in the juice market of the United Kingdom.

Conclusion

There are several limitations involved in the given study, which may cause the unreliable and inaccurate data representation. The method of random sampling does not always succeed to describe the real situation. Many customers can regard the survey as a needless tool, a waste of time or entertainment. Therefore, the information they provide can sometimes be untrue and unreliable. Moreover, a considerable part of respondents may answer the questions randomly (except those questions where they need to write their own answer), choosing the option without even reading it. It can be avoided, if the project team conducts a short interview after the participants fill in the samples.

The paper examines the main trends of juice production and consumption in the market of Great Britain. Since there is not enough amount of domestic raw materials for the production of juices, manufacturers are forced to buy it abroad. Taking into consideration the political and economic situation in the country and a complicated situation with the currency in the global market, it is difficult to predict the situation in the juice market. However, there are no doubts that the volume of sales, as well as the pricing policy of the firms-manufacturers will definitely grow. Although, due to the wide range of juice products offered in the market, the manufacturers can meet the needs of consumers regarding different price ranges and different qualitative composition of the juices.