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The U.S. Refrigerated Orange Juice Market: A Competitive Profile

Journal of Management of Roraima

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Title The U.S. Refrigerated Orange Juice Market: A Competitive Profile
 
Creator Datta, Y.
 
Description Porter links high market share with cost leadership strategy which is based on the idea of competing on a price that is lower than that of the competition. But, customer-perceived quality—not low cost—should be the foundation of competitive strategy, because it is far more vital to long-term competitive position and profitability than any other factor. So, a superior alternative is to offer better quality vs. the competition.In most consumer markets a business seeking market share leadership should try to serve the middle class by competing in the mid-price segment; and offering quality better than that of the competition: at a price somewhat higher, to signify an image of quality, and to ensure that the strategy is both profitable and sustainable in the long run. Quality, however, is an intricate concept consumers generally find difficult to understand. So, they often use relative price and a brand’s reputation as a symbol of quality.Total U.S. Refrigerated Orange Juice retail sales for 2008 were $2.6 Billion. There were ten package sizes ranging all the way from 6 oz to 128 oz. Of these the 64- and 59-oz size captured about two-thirds of the market at 66%.It is a very competitive market with 142 brands in 2008. However, we have focused analysis on 32 brands whose 64oz- or 59oz-pack sales were over $1Million.We tested two hypotheses: (1) That a market leader is likely to compete in the mid-price segment, and (2) That the unit price of the market leader is likely to be somewhat higher than that of the nearest competition. Employing U.S. retail sales data for 2008 and 2007, we found that the results supported both hypotheses for 2008, as well as 2007.We also found strong support for the idea, that relative price is a strategic variable.We compared the results of this project with four similar studies: the U.S. Men’s Shaving Cream market, the U.S. Beer market, the U.S. Shampoo market, and the U.S. Shredded/Grated Cheese market. We found the results to be very similar, indicating a pattern emerging for consumer markets.Finally, we discovered five strategic groups in the industry.
 
Publisher SCHOLINK INC.
 
Contributor —
 
Date 2018-11-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.scholink.org/ojs/index.php/jepf/article/view/1723
10.22158/jepf.v4n4p389
 
Source Journal of Economics and Public Finance; Vol 4, No 4 (2018); p389
2377-1046
2377-1038
 
Language eng
 
Relation http://www.scholink.org/ojs/index.php/jepf/article/view/1723/1865
 
Rights Copyright (c) 2018 Y. Datta
http://creativecommons.org/licenses/by/4.0