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Company History: Odwalla Inc. is an American food product company that sells fruit juice, smoothies and food bars. It was founded in Santa Cruz, California in 1980 and is headquartered in Half Moon Bay, California. Youthful, hip, and fresh, Odwalla, Inc. went from backyard juicer to big business faster than you can say 'Strawberry C Monster.' While an E. coli scandal in 1996 squelched its explosive growth, the company's openness in response to the crisis, won it kudos and it remains today one of the country's leading brands of fresh juice. Other popular varieties of its 'Juice for Humans' include Mango Tango, Femme Vitale, and Serious Ginseng. In 1997 Odwalla converted most of its delivery trucks to run on compressed natural gas, for which it won a Clean Air Award from the American Lung Association. Orange Juicing Origins In 1980, 25-year-old George Steltenpohl and two fellow musicians, Gerry Percy and Bonnie Bassett, were in Santa Cruz casting about for ways to make money without much capital. They also wanted to contribute something positive to their community. A business guidebook gave them the idea of selling fruit juices and thus Odwalla was launched in a shed in Steltenpohl's backyard in September 1980. The company's name came from a character in an Art Ensemble of Chicago song-poem called 'Illistrum.' Odwalla delivered the 'people of the sun' from the 'gray haze.' The group set out to do the same with a secondhand, $225 juicer and a 1968 Volkswagen van. Local restaurants were the first clients for the fresh-squeezed orange juice. Business was brisk. The company was incorporated in California in September 1985. It expanded into San Francisco in 1988. Steltenpohl, who earned a degree in environmental science from Stanford University, attributed Odwalla's success to the fact that consumers were becoming more qualityconscious in general. In fruit drinks, this translated to the taste, nutrients, and enzymes available only in nonpasteurized, fresh juice. This utter reliance on fresh produce left the company somewhat at the whim of nature, though, and subject to unexpected losses. In 1992, Inc. magazine reported on the pride and passion that rallied its 80 employees around the product. The company kept workers informed about the juices' nutritional benefits and involved them in taste testing and product naming. A pint of juice (two for drivers) was part of the daily salary. The company marketed about 20 different types of juices at the time, which sold for about $1.50 to $2.00 a pint. 1
Into the IPO Zone in 1993 Steltenpohl aimed for more than simple enthusiasm through empowerment. 'If you can take wage earners and instill an entrepreneurial drive, that translates into much greater productivity,' he told Nation's Business. People were essentially trained to manage themselves, he said. Employees could also design their own jobs to an extent. Corporate headquarters a couple of blocks from the surf in Davenport, California also was considered a motivator. Odwalla operated 35 delivery trucks in 1993, when sales were about $13 million a year. It invested in state-of-the-art hand-held computers for its drivers, who served as de facto PR reps as they escorted the juice along the 'cold chain' to the 'O-Zone'--the company's distinctive in-store coolers. The company launched its initial public offering (IPO) in December 1993, when it had slightly less than 200 employees. The RvR Securities ('risk-versus-reward') arm of San Francisco investment bank Hambrecht & Quist Inc. had begun investing in the company in 1992, acquiring a 16 percent stake. The group was impressed by Odwalla's strong customer loyalty and its distribution network. Soon after the IPO, the company expanded into the Pacific Northwest via the acquisition of Dharma Juice. It then bought Just Squeezed, based in Denver. In 1994, Odwalla moved production to a renovated plant in Dinuba, California surrounded by produce fields. It moved its corporate headquarters to Half Moon Bay, California the next year. Odwalla by then dominated Northern California's fresh juice sales, holding half the market. Its products were sold in 1,400 locations. Odwalla began selling bottled water in the mid-1990s. It was supplied by Idaho's Trinity Springs, whose aquifer held water carbon dated from the Stone Age, 16,000 years ago. This new line was very much the opposite of its highly perishable, unpasteurized fruit drinks. Water did not require refrigeration and could be sold in more outlets, offering a distinctive growth opportunity. Revenues for fiscal year 1996 were $59.2 million. Odwalla supplied 4,000 locations in seven states (California, Colorado, Nevada, New Mexico, Oregon, Texas, and Washington) and British Columbia. Its largest customer was the Safeway grocery chain. The natural foods market was growing at a rate of 25 percent a year. Steltenpohl estimated that the company would reach $100 million in sales around 1999. He and co-CEO Stephen Williamson told shareholders: 'Our objective, our passion, is to lead the fresh beverage revolution.' It spent heavily to get on Texas shelves in October 1996. Odwalla was on the verge of becoming a national brand. 1996: Disaster and Mitigation As part of its sanitation process, the company cleaned its fruit with a phosphoric acid wash and whirling brushes. But this failed in October 1996. An outbreak of food poisoning caused by E. coli 0157:H7 killed a toddler in Denver and sickened 66 other people in the West, and the problem was traced to 2
This was the same virulent pathogen that in 1993 had killed three people in Washington State who had eaten insufficiently cooked hamburgers at the Jack-in-the-Box chain.) Most of the suits were settled within a year. 'Children's health problems are ranked as the worst thing that can happen to a company. Links to authorities like the Centers for Disease Control helped firm Odwalla's credibility. in addition to adding another set of costs. The public relations problem was serious. The Seattle Times reported that Odwalla's sanitation was substandard in the week the tainted juice was produced. The crisis affected not just Odwalla. Investigators speculated that Odwalla may have been sent fallen apples (or 'grounders') that had come into contact with animal feces (the bug lives primarily in the digestive tract of cattle). Edelman Public Relations had a web site devoted to the crisis running on the same day Odwalla received word of the contamination. As Steltenpohl later toldForbes. Most felt that the process destroyed the freshness with which they differentiated their offerings. acidic apple juice. Aside from holding press conferences and setting up an 800 number hotline. forbade the use of 'grounders. Odwalla's stock fell 40 percent.3 million for the fiscal year ending February 28. There were also numerous lawsuits. coli lawsuits of 1993 cost Foodmaker $56 million in legal costs.Odwalla apple juice. Steltenpohl pointed out that it also could be spread on fresh lettuce. Sales fell 90 percent in the immediate wake of the crisis. Odwalla used the Internet to disseminate information about the health problem and Odwalla's response to it. grocery store chains dropped other fresh juice producers as well.' or fallen apples. Or it may have come from carrots harvested from the earth. Growers across the country grappled with the issue of pasteurization as the FDA considered making it mandatory. which were processed on the same line. The microbe appeared to be evolving.000 hits in the first two days. which the company faced with $27 million worth of insurance and $10 million in cash. The site received 20. Odwalla officials stated that they believed this strain of E. Pure apple juice accounted for a tenth of the company's revenues. In December Odwalla announced plans to flash-pasteurize its apple juice. Its brand name was damaged. 1997. Even minuscule amounts of the germ could spread infection. These guidelines were referred to as Hazardous Analysis Critical Control Point (HACCP) rules. which accounted for a majority of its business.' Damage control took many forms. Odwalla laid off ten percent of its 650 workers by December 1996 and posted a loss of $11. it also was used in blended drinks. 3 . coli. It offered to pay medical bills for consumers who the juice made ill. only discovered in 1982. Odwalla responded by recalling its juices containing apples or carrots. could not survive in cooled. among other things. Some growers in the Apple Hill area of California were among the first to implement a 23-point quality assurance plan that. It would not be considered an attractive takeover candidate by the major fruit juice brands. (The Jack-in-the-Box E.
may contain harmful bacteria which can cause serious illness in children.' one told the San Mateo Times. a misdemeanor. This entered the company in a $900-million-a-year market. Some producers resented attempts by Odwalla. the resolution of this case made Odwalla stock safe again for institutional investors. and persons with weakened immune systems. the media. Fortunately. designed to appeal to a younger market than that of nutrientfortified Ensure. 1994:First shipments delivered outside of California. and government to deflect criticism to the industry as a whole. These were offered in Inner Chai. That would fall to a low of four percent in 1998. 'Let's not lose track of the real issue.' According to FDA statistics. 1980:Odwalla begins juicing in Santa Cruz. The fresh juice industry naturally railed against the labeling. one-sixth of the fine was earmarked for the Safe Tables Our Priority charity and to researchers at the University of Maryland and Penn State University. in September 1998. the elderly. 1996:E. soy. Redesigned 4 . Nevertheless. and Cafe Latte flavors. it offered a lunchtime alternative to fried fast food. There was also a new line of 'Nutritionals' enhanced with proteins. coli outbreak traced to company's apple juice.' Juice produced to the HACCP standard was exempt from the labeling requirement.Fresh juice accounted for only two percent of the total juice market in the United States. who owned about 28 percent of the company before the crisis.5 million fine after it pled guilty to 16 counts of delivering adulterated food products into interstate commerce. was marketed as a 'drinkable feast' made from 'real food' like oats. the fresh juice industry overall reported only 447 illnesses (including the one fatality) for more than 500 million servings between 1993 and 1996. the agency required juice marketers to label the following warning on fresh apple juice beginning in September 1998 (and all other fruit and vegetable juices by November): 'WARNING: This product has not been pasteurized and. A new type of liquid lunch debuted in May 1997. the company received the highest food injury penalty ever in what was reportedly the country's first criminal conviction in a food poisoning case. vitamins. and fruits. almonds. Odwalla introduced an energy bar. its first solid product. therefore. No diet drink (one pint contained 12 grams of fat). At Odwalla's suggestion. Odwalla's Future Shake. It was levied a $1. banana. They complained that it was 'more aggressive' than that required even on raw pork. 'Odwalla got animal poop on its apples and failed to wash it off. Although Odwalla's openness in the face of the crisis was commended by many. believing it would scare away consumers. 1998:Odwalla returns to profitability. Dutch Chocolate. herbs. Rebuilding in 1997—98 Product offerings proliferated as the company pulled out all the stops to win back consumers. and mango.
Detroit. Naked Juice (Chiquita Brands). Tropicana. entering Philadelphia and Washington. posting a profit of $140. The new bottles featured bolder graphics and a sturdier cap but held slightly less juice. The company continued to expand geographically. One analyst estimated that the company would have been a $150 million-a-year. markets.1 million. A box of Banana Nut bars and two Chocolate Chip Protein bars A bottle of Odwalla Future Shake 5 .' CEO Stephen Williamson told the Wall Street Journal. It was still in business--sales were on track to reach $67 million in 1999.000 versus the previous year's $1. Principal Competitors: Just Squeezed. Minute Maid.packaging appeared in September 1999. Odwalla also introduced pasteurized versions of its citrus drinks. and Phoenix. to $59. Nantucket Nectars. 'Odwalla is in the business of providing easy access to great-tasting nourishment. Nevertheless. Fresh Samantha's. Minneapolis. D. Odwalla's revenues were up 12 percent in 1998. national business were it not for the E. Analysts felt it wise for the company to get a toehold in these new markets before someone else did. Odwalla announced that it was again profitable by the third quarter of 1997--98. even if it came at the expense of bottom line profits. coli incident.C.8 million loss for the period. Analysts reckoned there was still life left in its brand name. This expansion was soon followed by entry into markets of Chicago. a net loss was projected. a rise of more than 12 percent.
the average annual growth rate is 57 percent.B) Situation Analysis • Category analysis Energy bars is the one of the segments of the broad snack bar category. Energy bars are defined as vitamin-enriched. market penetration and usage occasion is increasing. 2. 6. To define problems and opportunities facing the business. of this. Aggregate market factors a) Category size Overall snack bar sales were over $1. 4. 5. nutritious bars intended either to boost performance or replenish nutrients following exercise or as a complete snack or meal replacement. Snack bars include such item as granola bars while health bars include for example. the existing brands are expanding with new products and flavors. The industry reports suggest current annual growth for the energy bar market at 25-30 percent. The category was expanding because the new competitors are entering the market. plus their subbrands and over a hundred smaller players. energy bars were nearly $300 million with 28 percent growth rate over 2001. The energy bar category is highly fragmented with over 100 competitors and 700 brands. 6 . To define the current situation facing the product. 3. To pinpoint responsibility for achieving product objectives. i. To encourage careful and disciplined thinking. Energy bar category contains four primary brands.S energy bar category sales forecasted at $750 million in 2003 for a continued expected growth of 22 percent. The marketing objectives : 1. To define the strategies and program necessary to achieve the objectives.4 billion in 2002. b) Category growth In between 1997 and 2001. cereal or diet bars. U. To establish a customer – competitor orientation. The industry experts expect the energy bar category to continue to grow in the 25-30 percent range annually.
The barriers to entry erected by the existing competition are key to the likelihood that new competitors will enter the market. it is difficult to benchmark profitability within the energy bar category specifically. Cliff (including Luna) and Balance). ii. portable energy. Increased category competitiveness may lead to lower pricing and profits. Further. e) Seasonality It’s a year-round sales. Category factors a) Threats of new entrants/exits A strong potential for new competitors given that the category is profitable. and increasingly relevant to consumers. Some of the potential barriers to entry follow: 7 . Category overall may experience a slight sales increase in the spring and summer months during “race season” and as users are engaged in more outdoor activities and desire quick. fairly easy to enter. Nevertheless. f) Profits As most major competitors are within the product portfolios of larger consumer goods companies. the recent acquisition of the leading competitors reflects an expectation for strong profit potential. d) Sales cyclicity While energy bars are premium-priced for their convenience and nutrient level. the base dollar point of $1 to $3 per bar is low such that they are not directly impacted by GDP variations. creating more direct competition with Odwalla bars. it is most likely that small competitors will enter through the natural foods channel.c) Product life cycle Both the category and Odwalla Bars specifically are both securely in early stages of the growth phase. with the “big three” brands strongly in place (PowerBar.
4) Switching costs Switching costs are very low. taste and flavor variety. This is particularly true for companies that have an established relationship with the category buyer. opening the door to potential competitors. 8 . differentiation is largely through brand. the commodity nature of agriculture keeps prices and supplier power low. b) Bargaining power of buyers Lots of competitors with relatively similar options distinguished by brand and taste keeps retailer power strong. etc. c) Bargaining power of suppliers As the suppliers of raw inputs for energy bars are largely agricultural. nutritional levels are largely at parity. With the exception of targeted nutrition products like protein or carbohydrate-specific products. supplier power will be higher for nutrient supplement suppliers. While still relatively low. 3) Capital requirements Capital requirements are relatively low.) it would be very easy for any of the “centre of the store” consumer food companies to enter the category and add on to their existing distribution structure. 5) Distribution As there are not specialty requirements for distribution (refrigeration.1) Economies of scale Competitors within the broader category of snack bars would likely experience economies of scale with a relatively easy entry into the energy bar market. increasing the threat of new entrants. 2) Product differentiation Within the mainstream energy bars.
still it is too early to determine true capacity. smoothies. e) Category capacity It is appears to be high given current scenario of more than 100 manufactures and many more products. cereal bars. however. f) Current category rivalry Very high. iii. 9 .d) Pressure from substitutes Fresh fruit. candy bar. additional regulations directed toward the energy bar category. energy bars have so far seemed to fare the recession well. d) Social As lives get busier and mealtimes shrink. if economic conditions persist. are all suitable portable substitutes for the mainstream energy bar consumer. However. There are not to our knowledge. But. energy bars will continue to be an acceptable meal replacement. Environmental factors a) Technological Technology could play a significant role with respect to manufacturing efficiencies and taste profiles. etc. True athletes are most likely to substitute with higher nutrient level energy bars. b) Economic While premium priced. c) Political/regulatory The energy bar category is regulated by the FDA as are other food products. A differentiation is largely by taste and flavor variety and by targeting unique market segments. consumers may opt for less expensive alternatives like fresh fruit or non-energy snack bas.
As a result. it lost ground to competitors as the market expanded to include more mainstream consumers. Balance Bar. c) Clif Bar: This is the only independent company among the top brands. and is attempting to fill as many segments as possible. To lure athletes. including PowerBar Pria targeting woman and a breakfast bar.• Competitor analysis i. An additional competitor. The category is at a relatively early stage in the product life cycle. also seeks to increase its presence in the channels. so it is too early to be going exclusively for profits. 10 . the brand has launched a number of extension. Product features matrix The major competing brands to the Odwalla bar are PowerBar. b) Balance Bar: This brand does not appear to have a strong focus. It has used its parent. Like PowerBar. to accomplish this. The smallest brand. iii. While it has maintained a loyal following of athletes. Brand Objectives All four brands appear to be pursuing market share growth strategies. and Clif brand their variants. ii. Harvest. Kashi. and a salty Mojo Bar straddling the health and snack categories. Kellogg’s. the brand launched an extension. Kashi GoLean. Brand Strategies a) PowerBar: This brand invented the energy bar category. Ice Bar. it has focused on brand extension funded by its parent. d) Kashi : Its marketing focus has been to expand its distribution. It is looking to hold on to its top market position in the face of competition with much greater resources. Kraft. comes from the natural food/energy bar category.
Grocery.3 million (less than 5% is from food bar) vi.25 Distribution Natural food. Natural food. general enthusiast. but they are natural performance philosophy. taste. drug.$25 million e) Odwalla . natural food. high protein and fiber. Brian Maxwell.$135 million b) Balance Bar: 1999 . mass. nutrition and you can alternative. who was a former Olympic marathon runner. natural food.iv.35/$14. pronounce. and some mass. and health dieter.$100.35/$14.00 $1.25 $1. 11 . Grocery. consumer. consumer. Product Taste so Nutrition. Total sales before merger: a) PowerBar : 1999 .49 $1. Differential competitor advantage analysis a) PowerBar : This company has been very successful at differentiating itself by targeting hardcore athletes and positioning itself solidly in the energy bar category. Athletes Health Natural food enthusiasts/ general conscious.$128.35/$16.25 $1. ingredients a healthy ingredients. grocery and drug. grocery and mass. Club. Energy for 40-30-30 Nourishing decadent. natural food. drug. drug. Marketing mix Marketing mix Price Kashi Go Clif Bar Power Bar Balance Odwalla Lean $1.69/$20. v.9 million c) Clif Bar : N/A d) Kashi : 1999 . mass. mass. energy. Promotion Health Athletes.35/$14. This tradition is from its founder. optimum nutritional food bar.
• Customer analysis i.4% of volume is from households with greater than $60.C. Who are the customers? According to SPIN (A. the brand will continue to introduce more extensions. d) Kashi : Kashi is a natural cereal and convenience foods company.7 % of volume is from households with greater than $40. and a number of other channels of distribution.8% of volume is from households with no kids. 12 . d) Kashi: This brand will focus on new flavors and expand distribution to gain shelf space in grocery. The brand’s managers will also invest heavily in advertising and promotions.000 income. 63. vii. 32. The brand is strongly associated with grain and fiber. The comnpany’s products are made with a blend of sesame and seven whole grains. Its goal is to remain ahead of both Balance Bar and PowerBar. c) Clif Bar : Like the others. drug and mass channels. mass merchandise. 72.b) Balance Bar : Their main competitive advantage is a solid distribution system as it is marketed in natural foods. the emphasis for this brand will be on extensions. Nielsen Consumer Reports). It is perceived by consumers to be the most innovative and creative of the major brands.000 income. Expected future strategies a) PowerBar : This brand is likely to continue to be more aggressive in targeting mainstream markets and thus continue to launch more brand extensions. club. b) Balance Bar : With the assistance of Kraft’s resources. grocery. c) Clif Bar : This is the most customer-oriented brand as its managers do the best job interacting with customers and listening and responding to their needs.
4% of volume is from households with the Head under 35 years old. who desires specific nutritional formulations geared to their unique health requirements. both adults and children. “Musclemen” : individuals trying to maximize their muscle mass through use of energy bars. “Sports enthusiasts” : active individuals seeking sustained energy for less strenuous activity than hard-core athletes. What they Buy? Convenience Taste Texture 13 .8% of volume is from households where the Head has some college education. who use energy bars. ii. Eaten by about 1 in 5 people. “Health conscious and on-the-go” : individuals with busy lifestyles who seek a healthier alternative to traditionally available fast foods. “Specialty segments” : such as women and minorities. protein powders. and other dietary supplements. 39. “Dieters” : individuals using energy bars as a meal replacement or snack alternative in an effort to lose or maintain weight. Customer segments: “Hard-core athletes” : the origin consumer target. “Nutrition seeking families” : households that actively seek to promote healthier eating habits among all members of the family. gels and other portable food products to maintain a high level of strenuous activity.65. “Health purists” : individuals who insists on the nutritional benefits of organic and all-natural foods.
Odwalla customers Tried Odwalla juice first Prefer : lighter.00 to $1.Health benefits Performance/ energy Hunger satisfaction Price (expect to pay $1.50 per bar) Packaging / buy in bulk Availability iii. whole-grain texture Taste matters more than performance. 14 . fruiter flavors and chewier. Where they buy? House food stores Outdoor retailers Grocery stores Drug stores Convenience stores Mass merchandizers Club stores v. What use for? Meal replacements Snacks Athletic energy booster iv.
130. with + 2 standard errors.430. so we use three scenarios: an optimistic 26 million. household income. a best guess of 24 million.557. The resulting regression model produced an R2 of . but still hard to attain.)The resulting forecasts.701. here we use 105. there are relatively few years of data to go on (here we use five years. and a pessimistic 18 million. the category creator. The model was Dollar sales = -7. (Note we need to forecast this for 2002. equal to 15 .000 + 71. forcing a choice of one (here number of household). First. For the sake of the example.. which introduces more uncertainty in the forecast.• Planning assumption i. or income level. CPI) are highly correlated. allergies. many of the macroeconomic variables one might use (e.467 (Power Bar Advertising) With a standard error of 9.2 billion bars per year. we use advertising spending of PowerBar. 1997-2001. 11. Here we start with the entire population and then subtract those we consider not to be consumers due to age. inflated because of the scarcity of data points. (Note in doing this we over-adjust since some consumers fall in multiple categories.) Power Bar advertising is harder to forecast..458. ii. (Notice how sensitive the forecast is to this assumption. Therefore Potential = (215 million) (365 bars/year) = 78. a decrease from 2001. Energy bar potential We assume (optimistically) that consumers eat an average of one bar per day ( a real “saturation” level) .29 (number of households) + 9.000. We then examine how many people are potential customers.e. a far cry from current levels. The resulting potential number of customers is 215. sales of energy bars is difficult for several reasons. if we assume a more realistic 1 bar per week average. the potential estimate drops to a more reasonable.124 (admittedly ridiculous precision. are over 74 and poor). causal variables such as price and new product entries are difficult to forecast. Households are fairly easy to forecast. Forecasting Energy Bar Sales via Regression Forecasting U.314. partly because it was available. i. Second. Third.S.5 billion bars per year Notice here how critical the usage assumption (bars consumed per week) is to this estimate. to forecast 2002).g.998.
200.000 to 653. c) Marketing Strategies Odwalla bars that produces energy bars category and other all natural and organic food targeted at people with active lifestyles. Marketing strategy fo Odwalla Bar is : • They can introduce new brand will be based on their popularity when they success to produce the product with natural ingredient. there is significant uncertainty stemming mostly from uncertainty about the causal market factors (here PowerBar advertising) which drive sales. as a conservative estimate of the uncertainty. • 16 .000 634.000 used.600.000 597. Create advertising for your energy bars in a magazine or trade publication for your target market. Notice also how much less this is than the potential estimate.000 616.000 539. even with R2 above .000 Note that. suggesting the result is feasibly attainable.500. that can help them to promote their new product and will be done through a variety of method. • • They can use promotion for a targeted segment such as sampling in the market for taster.700.600.000. Do in-store activities being favored and can use the primary form of communication with sponsorship because the demographics of their readership are fairly similar with their brand’s name.000 615.600.000 to 634.99. are the following _______________________________________________________________ Power Bar ________________________________________________________________ Advertising level Forecast Range 18 million 24 million 26 million 558.18.200. Their introduce the brand extension in the energy bar category in 1998.000 to 576.000. So.100.
advertising and promotion. month to month increase of new customers. The bulk of the advertisements will be in the Willamette Weekly. • d) Marketing Objectives Our primary marketing objective are to : • • • Develop brand awareness through a steady. • • • • Pricing – the pricing scheme is based on standard price for energy bars category. Distribution – all products will be distributed from Odwalla Inc. and place. Marketing mix: Odwalla bars marketing mix is comprised of these following approaches to pricing. Place – retailer shop 17 . a weekly entertainment guide. i. distribution. The first method will be advertisement. Develop awareness of the structured conversation system measured by customers coming to the retailers shop for buy their product Odwalla bar primary financial objectives are to : • grow 10 percent faster than the energy bars category. Develop an increase in sales or decrease in marketing expenses.• The message Odwalla Inc will seek to communicate and this message will be communicate through a variety of method. The other form of advertising will be using “grassroots” method where customers will be given coupons for their friends to try Odwalla bar for the first time. Advertising and promotion – the most successful advertising will be with Willamette Weekly or retailers shop its self.
Minute Maid resources. iii. Core Strategy For core strategy. coli infection. v.ii. Customer targets We focus to the Odwalla Energy Bar customer targets is from existing juice customers. In October 1996. we will increase distribution to 80 percent ACV in mainstream grocery stores. an 18 . e) Financial history and Contingency plan Odwalla Foods When Odwalla's apple juice was thought to be the cause of an outbreak of E.go customers. health conscious and on-the. the company lost a third of its market value. Product positioning The Odwalla Inc will position itself as a reasonably price and natural ingredient (nutrition and health). Then we focus on natural health and leverage brand name. health purist and nutrition seeking families. Competitor targets Have more than one competitor in energy bar category such as : • Clif Bars and Clif Luna • • • • Kashi Go LEAN Power Bar Balance Bar Calorie Mate iv. sport enthusiasts people.
Colorado and British Columbia was traced to unpasteurized apple juice manufactured by natural juice maker Odwalla Inc. and explained what consumers should do with any affected products. California.outbreak of E. Thus. Odwalla conferred with the FDA and Washington state health officials. Within 24 hours. Odwalla had a very successful contingency plan during their crisis managemen.through the help of consultants .effective thermal processes that would not harm the products' flavors when production resumed. expressed remorse. All of these steps were communicated through close relations with the media and through full-page newspaper ads. Odwalla then developed . coli bacteria in Washington state. coli poisoning. including the death of a small child. and took responsibility for anyone harmed by their products. established a schedule of daily press briefings. detailed symptoms of E. concern and apology. Forty-nine cases were reported. sent out press releases which announced the recall. They manage to control their company financial profits as the key elements towards the continuity of company growth. 19 .
Appendices: Type Wholly owned subsidiary Industry Consumer products Founded Santa Cruz. food bars Revenue US$187. a division of theThe Coca-Cola Company Website Odwalla. United States (1980) Founder(s) Greg Steltenpohl Gerry Percy Bonnie Bassett Headquarters Half Moon Bay.United States Area served United States Key people Steven M. COO and General Manager James R. McCormick.9 million (2007) Employees 900 Parent Minute Maid. SVP Finance and CFO Chris Brandt. Director Brand Products Drinks.com 20 . Steichen. California. California.
References : 23 .
www. http://en.scribd. www. Product Management by Lehmann /Winer (McGraw-Hill) 24 .com 4.com 2.google.1.org 3.wikipedia.
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