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Lemonade Lorina on the US market - marketing analysis

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documents in English
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case study
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18 pages
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  1. Main Results
    1. Lorina's lemonade on the US market
    2. Evaluation of market potential
    3. Legal administrative barriers/difficulties to penetrate the market
    4. Analysis of wholesale and retail distribution
  2. Brand and product positioning

We have decided to study the potential market for the French product Lorina's lemonade on the American market.

The French lemonade maker has developed authentic lemonades made from spring sparkling water which is totally in line with the changing needs and behavior of customers.
After being successful in France, they began to export Lorina's products in the United States in 1996.

They are positioned on the market for sodas, which are defined as sparkling flavored drinks.
Therefore, on the American market the company is up against important multinationals like Coca cola, Pepsi and Cadbury-Schweppes, which are situated on the same segment.
Besides it has to deal with American legislation which is poised to implement taxes on sweetened drinks to fight against obesity.

However the company is relatively well established on the American territory given that the product is distributed in 450 Sam's club stores which are retails warehouses owned by Walt-Mart.

Besides it is an important success thanks to the fact that it is made in France, and because of its classy French packaging. Indeed they made a profit of 5.5 millions of Euros in the United States.

[...] In order to become a leader on this market segment, the American group does not hesitate to supply and market Lorina in great quantities. The bottles are delivered by boat (at the beginning of the wearing of Antwerp) and it is Wal-Mart which manages the logistics of distribution in the United States. In 2001, the Lorina ranges and Geyer Traditional were marketed in the United States from 2500 points of sale. However, its chairman does not ignore the issue of sales promotion. [...]


[...] In 2001, Lorina was present in all the French stores. In of CA is carried out in the USA Today more than 50% of CA is realized from export (mainly US through Wal- Mart and its subsidiary company: Trader Joe' S). The CHR (coffee, hotel, restaurant) are likely to represent an important potential for a drink such as Lorina. The majority of soft drinks sold in CHR are presented in the form of small packaging, from 20 to 50 Cl. [...]


[...] This assumption is based on conservative estimates. The assumption is that growth rates for water, energy, and sports drinks will slow compared to the last five years, and that carbonated soft drinks will gain about half a billion in total annual unit sales, rather than stay at a plateau like they have been for the past few years. Competitive companies or products Indirect competitors The overall industry grew in 2004. Together, the top three companies?Coke, Pepsi and Cadbury Schweppes?accounted for about 90% of the industry volume. [...]


[...] In the United States, the first market to which it was exported, these bottles (sold at 5 dollars) were viewed as collectors' items due to their unique system of closing, which was previously unknown on the other side of the Atlantic. Notes: Soda includes domestic sparkling water. Flavored non-carbonated drinks include sports drinks, energy drinks, fruit drinks, and iced tea. Bottled water includes sizes less than or equal to 1 gallon. The total number of units sold was 171 billion in 1997, and 215 billion in 2005. These figures are derived by the Container Recycling Institute, using data from the Beverage Marketing Corporation. [...]


[...] The line offers all the traditional favorite flavors. Passion fruit, a flavor not seen too often, is heavenly; and revisiting old juice favorites like apple, cranberry and pineapple in the Fizzy Lizzy style, is a new way to walk down memory lane with friends and family. Think juice spritzer?and enjoy! Price Suggested Retail Price: $ 12-ounce bottle Promotion 1. Last month Fizzy Lizzy was named a Finalist in two categories of the 2007 NASFT Product Awards Competition. Fizzy Lizzy Costa Rican Pineapple was chosen as a Finalist in the "Outstanding Cold Beverage" category and all eight Fizzy Lizzy flavors together were chosen as a Finalist in the "Outstanding Product Line" category. [...]

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