Successful introduction by Binzagr Coro of a non-carbonated cola and Al Amoudi Beverages of tropical fruit juices are other examples of product differentiation, though these have been easy to copy.
With the above exceptions, there is hardly any differentiation in existing products, which look alike for the most part taste alike.
However, the strength of brand identities and access to distribution has meant that several competitors who entered the segment faced significant barriers to growing their market shares limiting their status to that of marginal players. As opposed to this, a Greenfield project could cost SR.
There are also economies of scale due to spreading of overheads in production and distribution. Product Differentiation Given standardised packaging options whether in cartons, cans or bottles, there are few available options for packaging differentiation.
For example, the cost to a carbonate product producer to set up a Tetra carton filling line and associated packaging machinery using existing building and support facilities could be only SR.
Strong retail distribution but on a regional basis Except Al Rabieweak wholesale distribution and relatively weaker brands in the segment are factors contributing to lesser company strength than Binzagr or Aujan.
Market Leadership with strong brands and national distribution make for high company strength. All carton juice drinks retail at SR. This endangers trade loyalty to these brands.
It is this sharing of activities that makes this sector attractive to dairy companies. This product innovation gave the first mover Al Aujan, a very significant share gain through their brand Rani.
The wholesale trade works on small margins and a quick turn-around of stocks. Therefore, government policy poses some entry barriers but these are not significant enough to deter entry. Therefore, while scale economies do benefit the large volume producers such as Binzagr Coro, the magnitude of such benefit is not so large as to squeeze the small volume producers out of the industry by rendering them totally uncompetitive.
The large number of small groceries and their wide geographic dispersion makes it difficult and expensive to reach a significant number directly. In the cans category, Rani has established a strong brand identity based upon an innovative product and supported by advertising.
The wholesalers who service these small groceries are an efficient and cost effective way of reaching widely dispersed small outlets.
Therefore, low volume producers also manage to stay in business and the requirements of scale have not proved effective in deterring entrants. This confers upon it advantages of the experience curve accumulated learning as well as scale economies, far in excess of its competitors. Government Policy A manufacturing license is required for industrial production.
Al Aujan is attempting to do the same for Vimto. Access to Distribution Access to distribution is another significant barrier to entry. Access to supermarkets is limited by the finite number of brands supermarkets are prepared to stock.
Therefore, the main entry barriers are brand identities built up by the leading brands and access to distribution both in supermarkets and to the wholesale trade. The product is essentially based upon dilution of fruit juice concentrates and therefore limits the possibilities of product differentiation.
Binzagr Company was compelled to not only withdraw products from the market but also had to stop production of juice products from October to May Foreign firms can set up manufacturing operations only with a local partner.
This type of a container is a good functional substitute for cans and is perceived to be modern, more hygienic and easier to dispose. One significant product differentiation, however, has been the introduction of orange floats — orange sacs floating in an orange juice drink.
This allows the company to realise better profit margins in a sector where most brands compete on price.Kampala, Uganda | ISAAC KHISA | Vimto, a global beverage brand, has made a comeback to the Ugandan market after the British manufacturer; Nichols offered licensing terms to Century Bottling Company Limited, a franchise bottler and.
Vimto Soft Drinks has boosted its marketing support for Cherry Vimto with the launch of a nationwide Prom themed campaign. The leading soft drink brand has launched partnerships with online prom dress business Prom Royalty and girls’ magazine Mizz to recognise young people’s love for school proms.
As this product is aimed at children and on the go consumers the marketing strategy used by Vimto’s marketing department was product expansion and diversification. The strategy that is used by Vimto for the Sports Cap product can be shown in the Ansoff Matrix marketing theory, which displays the different strategies a new product bases itself from.
Vimto has unveiled a new marketing campaign for its No Added Sugar portfolio, covering its core Vimto and Vimto Remix products. Vimto original No Added Sugar lines and Vimto Remix are available across the grocery, convenience, and wholesale channels in squash, still, and carbonate PMP and plain pack formats.
Marketing planning and management. billsimas.comr Company.
We will write a custom essay sample on their brand Vimto has an estimated combined market share of 8% by volume. ( estimates) This brand is in good distribution nationally and is well represented in supermarkets and larger groceries. Marketing of Frooti ; Product. Vimto’s head of marketing, Emma Hunt, has been named Marketer of the Year at this year’s CIM Northern Awards.
The winner was announced at a ceremony in Newcastle, chosen from a shortlist.Download