Fruitaholic juice bar case-3 PDF

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CASE STUDY...

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Fruitaholic juice bars provide a wide range of freshly squeezed bottled juices, customised juices, smoothies, superfoods, seasonal fruit salads, and other fruit snacks. Fruitaholic opened its first store at Fountain Gate Shopping Centre in early 2012 and the second one in the same shopping centre at the end of 2013. In May 2017, the third store opened at Chadstone Shopping Centre in the fresh food precinct. With more than five years’ operation experience and three stores established in the largest and second largest shopping centres in Melbourne, the brand owner is considering how to further develop the brand. Current brand positioning: (see the Appendix for relevant graphic designs)  Fresh and natural: real fruits on display; juicers running all day; newly designed slogan “Every bottle freshly squeezed”.  Healthy: specific health benefits highlighted for every flavour of juice in the big menu board; newly designed signage with images and wordings emphasising health benefits of fruits.  Accessible and affordable: the main product line, freshly squeezed bottled juices, is suitable for shoppers seeking “grab-and-go” products; the new set of small menus for this main product line can make shoppers’ choices easier by clearly indicating the fruits contained in each bottle as well as the colour of the lid for each flavour; affordable prices; new slogan “For everyone everyday” appear in signage and in rewards card. Other elements in the marketing mix:  Production: Large juicers (appx. 160cm tall) are used to squeeze juices in the morning. Juices are bottled and put on display for the shoppers to choose from. Most other juice bars use only small juicers.  Price: The main product line, freshly squeezed bottled juices, is priced at about 70% of the prices from competing brands.  Accessibility: Shoppers may easily choose flavours from the bottled juice display, and don’t have to wait for juices to be squeezed.  Products: Super healthy juices made from wheatgrass and sugarcane, and superfoods such as acai berry are rarely offered by competing brands. Current marketing efforts:  Graphic designs: With the new store opened at Chadstone, a new set of signage/menus are designed to highlight the current brand positioning. The two old stores at Fountain Gate will also gradually adopt the new set of signage/menus.  Loyalty program: Simple paper-based rewards card (see the Appendix). No collection of customer data or purchasing record.  Digital marketing: Occasional use of shopping centre websites and/or facebook posts to announce store promotions. Brand website is now under construction. No use of social media yet.  Holiday promotions: e.g., Mother’s Day “buy 1 large, get 1 small for free”.  Seasonal sales: e.g., sales on specific juice flavours (usually for the ones with seasonally cheaper ingredients).  Local sponsorship: Sponsorship for events in local schools and child cares with kids-size bottled juices.

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Challenges:  A large proportion of shoppers are not aware that the bottled juices are freshly squeezed every morning, with no additives or preservatives. Staff used to verbally communicate this message to the customers.  Located in shopping centres, all Fruitaholic customers are shoppers who walk by the stores. The numbers of customers are very heavily dependent upon the shopping centres’ traffic. There are shoppers who only visit other parts of the shopping centres. Is it possible to attract those shoppers and make them willing to walk to the Fruitaholic stores, so that the customer base can be enlarged? Furthermore, how to increase the brand awareness among local communities and attract more new customers?  Due to the nature of the products, demand is very seasonal. Sales in the coldest months are about only half of those in summer. However, the overheads such as rent remain the same. How to balance the demand throughout the year and increase sales in the winter season?  Fruit snacks, such as fruit salad, fruit yoghurt, super food bowls, etc., are part of the product offering that are designed to increase the sales as complementary products for juices. However, sales of fruit snacks remained low. The locations of the stores might be one reason. The three stores are all located in fast traffic areas in the shopping centres. For two of the stores, there are no seating area nearby. Shoppers in those areas may not have the mentality to linger around and enjoy food. If the stores keep and develop the fruit snacks, how to better present and sell these products to shoppers? Or should the brand simply abandon the fruit snacks?  Shopping centres’ rents normally increase by 5% per annum. Other costs such as wage and expenses for fruits also increase every year. It’s difficult to keep the sales increasing at the same rate. And therefore, the profit margin is shrinking. The Fruitaholic owner is concerned about the sustainability of the brand. How to survive and thrive in the long run?  Although three stores have been established, the brand is still a small local business. The brand owner is heavily involved in daily operations of the stores. There are personal limitations if more stores are to be opened. To better compete with the well-known established brands, brand awareness should be increased and coverage should be enlarged. Partnership or franchising might be good channels to speed up the establishment of more stores. Therefore, it is necessary to communicate the brand images and values to not only potential customers but also potential partners / franchisees. Objectives:  To increase brand awareness: deliver a brand message to a large audience (including potential customers, investors, and business partners), highlighting the features that distinguish Fruitaholic from competing brands. o All juices are squeezed daily from real fresh fruits, with no additives or preservatives – distinguished from competitors such as Boost o Price competitive and no need to wait with the “grab-and-go” main product line – distinguished from competitors such as Top Juice o Broad targeting, suitable for everyone everyday – distinguished from competitors such as Pressed Juice and Juiced Life  To increase sales Budget and timeframe:  $20k maximum in the next 12 months. Appendix 2

Signage on the bottled juice display, informing customers that all the juices are freshly squeezed from real fruits.

Signage in the background, informing customers of the health benefits of fruits in general and indicating the brand’s broad targeting.

Sample A5-size menus for the main product line bottled juices, clearly indicating the fruits contained in each juice, and the corresponding colour of the lid for the bottle by the colour of the circle in the top-right corner.

Big menu board for freshly squeezed juices (squeezed on site, not in advance) and classic smoothies. Specific health benefit is highlighted in green for each flavour.

Menus for distinctive product offering, including juice/smoothie, and sugarcane juices.

superfood, wheatgrass

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Rewards card (front and back)

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