SIT UAT IO N AN AL YSIS

FO R M IL D URA FRUIT
JUIC E S AUST RAL IA
ORA N GE J U I CE

H ANNAH H UX T ABL E
S5112529
R A C H E L C H R I ST I E
T U E SD A Y - 15:0 0
Table of Contents
Introduction and Company Background................................................................................................. 3
Introduction........................................................................................................................................ 3

Company Background........................................................................................................................ 3

Situation Analysis.................................................................................................................................. 4
Market Analysis.................................................................................................................................. 4

Macro Environment Analysis.............................................................................................................. 6

Political Analysis............................................................................................................................. 6

Economic Analysis......................................................................................................................... 6

Sociocultural Analysis..................................................................................................................... 6

Technological Analysis................................................................................................................... 7

Legal Analysis................................................................................................................................ 7

Environmental Analysis.................................................................................................................. 7

Micro Environment Analysis............................................................................................................... 8

Company Analysis.......................................................................................................................... 8

Competitor Analysis...................................................................................................................... 10

Competitive market Summary...................................................................................................... 12

Consumer Analysis....................................................................................................................... 14

Consumer Mood Board................................................................................................................ 14

Overview of Consumer................................................................................................................. 15

SWOT Analysis............................................................................................................................ 16

Recommendations............................................................................................................................... 18
Overview of Recommendations Summarised from Analysis............................................................18

Recommendation 1 -Marketing campaign....................................................................................18

Recommendation 2 -giving back to community............................................................................18

Recommendation 3 – Succesful partnerships..............................................................................18

Recommendation 4 – Prioritise main product...............................................................................18

Recommendation 5 – Change packaging design.........................................................................18

Conclusions......................................................................................................................................... 19
Reference List...................................................................................................................................... 20

2 • HANNAH HUXTABLE S5112529• 1003MKT • MILDURA FRUIT JUICE, ORANGE JUICE Situation
Analysis
Introduction and Company Background
INTRODUCTION

With competition ever-growing and major corporations further expanding, success within any
given industry is difficult to come by in recent times. As suggested through numerous studies,
increased globalisation has resulted in more competitive conditions for businesses, therefore,
the implementation of a successful business strategy is imperative (Wiersema & Bowen,
2007, Olson, Slater & Hult, 2005). As seen in the case of Mildura Fruit Juices Australia,
growing competition within the fruit juice industry along with the beverage industry has
resulted in Mildura needing to implement new ideas in order to continue to succeed. The
purpose of this paper is to determine where Mildura can improve its operations and further
improve their position within the market. This report seeks to analyse how growing
competition has changed the way Mildura has to operate in order to prosper. This report is
broken into seven sections, beginning with the introduction and company background,
followed by a situational and market analysis. Furthermore, a macro-environmental analysis
will be provided, such as analysis of the political and environmental factors affecting the
industry. Additionally, a micro-environmental analysis will be done, highlighting aspects
such as a company and competitor analysis. This will be followed by a SWOT analysis after
which recommendations will be provided. Finally, a conclusion will be written.

COMPANY BACKGROUND

Mildura Fruit Juices Australia, is one of Australia’s most recognised fruit juice processors.
The company was founded in 1970, in Mildura, Victoria (Mildura Fruit Juices Aust, 2019).
The brand is significant for their fruit-based products, such as, juices, concentrates, cut peels,
oils blends and bases, confectionary, sauces, pulps, and purees (Mildura Fruit Juices Aust,
2019). Mildura claim that they are “continually working on new products and processes to
satisfy customer needs” (Mildura Fruit Juices Aust, 2019), the company have a set of mottos
which they intend to follow listed on their website, these are: resilience, loyalty, integrity,
excellence, diversity as well as creative thinking (Mildura Fruit Juices Aust, 2019).
Therefore, Mildura aim to innovate and constantly further their pursuit of providing
consumers with a high-quality product. Mildura products are primarily sold within Australia
and can be found within most major Australian grocery outlets, such as Coles and
Woolworths.

Mildura Fruit Juices Australia is owned by the Daily Juice Co. which was founded in 1989
(Daily Juice, 2019). The Daily Juice Co is a highly succesful fruit juice manufacturer, which
provides consumers with products of high quality and of natural ingridients, similar to that of
Mildura. The Daily Juice Co. is owned by Lion, a food and beverage company which
operates within Australia and New Zealand, however, is owned by Japanese based Kirin
(Lion, 2019).

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Situation Analysis
MARKET ANALYSIS
The market for juice, which can be considered a packaged food is a growing industry both
within Australia and internationally. At current, there are 59 businesses operating in the
industry, with 970 workers employed, in Australia (IbisWorld, 2019). Within recent years,
businesses within the juice manufacturing industry have faced strong competition, from both
rival juice manufacturers as well as other external beverage manufacturers, therefore, the
average industry growth between 2014 and 2019 was -0.4%, a concerning figure. (IbisWorld,
2019). Furthermore, along with the increase in competition, a slow-down within the economy
has led to the average income to decrease, which has negatively affected the industry as many
consumers may choose to purchase cheaper alternatives or simply avoid a juice product as it
can be seen as a luxury rather than a necessity if they are looking to conserve money, thus
leading to decrease in demand (IbisWorld, 2019).

Although the fruit juice industry has struggled to achieve growth within recent years, it is
expected that the industry is set to experience growth within the next several years
(IbisWorld, 2019). Increasing demand for healthier food and beverage choices as well as an
overall focus on living healthy lifestyles will result in a boost for the fruit juice industry
(IbisWorld, 2019). Furthermore, further product and technological innovations will increase
the potential of growth within the industry, as well as the significant packaging industry,
further aiding growth (Goldstein Research, 2019. The Australian fruit juice market size is
forecasted to grow at a compound annual growth rate of 2.1% yearly until 2025, resulting in
the market size reaching USD 1.3 billion by the same period (Goldstein Research, 2019).

Data obtained has suggested that 80% of Australians do not consume the required amounts of
fruit needed within their diet, thus, fruit juice becomes a simple alternative which contains
similar vitamins such as vitamin C (Goldstein Research, 2019). Australia boasts, 28,000
hectares of citrus fruit plans and trees, meaning resources are easily obtainable, leading to a
further possibility for growth as consumers may seek products using Australian sourced
ingredients (Goldstein Research, 2019). Furthermore, data demonstrates orange juice is the

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Analysis
most popular juice within Australia, accounting for 39.1% of the total market share
(Goldstein Research, 2019).
59 businesses operating within Australia in the industry
Growth of -0.4% between 2014 to 2019
Forecasted to grow at 2.1% yearly until 2025
Market size is projected to reach USD 1.3 billion by 2025.

MACRO ENVIRONMENT ANALYSIS

POLITICAL ANALYSIS
 Significant players which hold power in regard to government policies are
CORPORATIONS putting pressure on the government health policies to suit their own
PRESSURING interests.
GOVERNMENT

 Big companies may offer politicians “donations” for their campaigns in

PAYMENTS MADE attempt to receive favourable benefits if that politician is elected, through
FOR FAVOURABLE policies.
POLICIES
 Deakin University found that there was “direct evidence of food industry
POLITICAL TACTICS political tactics that had the potential to shape public health-related
policies, at the expense of public health” (Burdon, 2019).

ECONOMIC ANALYSI S
 Due to the economy slowing down, many may choose cheaper
CHEAPER alternatives when it comes to food products, in order to spend less of
ALTERNATIVES their income on food. As a result, brands offering cheaper alternatives
BECOME will experience better results.
FAVOURABLE
 The United States considers obesity as a socioeconomic issue;
OBESITY AND therefore, it can also be assumed within Australia.
SOCIOECONOMIC
ISSUES
 Studies have demonstrated that there is a link between those earning
LOW-INCOMES AND low-incomes and obesity. Therefore, cheap alternatives using low
OBESITY quality products will benefit as their sales will increase.

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SOCIOCULTURAL ANALYSIS
 As consumers prioritise healthier eating, it becomes more important for
HEALTHIER companies to produce products which are considered healthy.
ALTERNATIVES (Forbes, 2019).
BEING FAVOURED

 The importance of what a company does to give back to the

community is ever-growing, therefore, it is important for companies to
GIVING BACK TO
positively give back to the community to attract consumers. (Forbes,
COMMUNITY
2019)
 There is an increased focus on companies being “eco-friendly” with
ECO-FRIENDLY their manufacturing and operations, therefore, consumers will lean
towards companies who are maintaining the planet in their production.
(Forbes, 2019)

TECHNOLOGICAL ANALYSIS
 As competitors are always seeking technological advancements,
competitors are able to increase efficiency by produce more products
TECHNOLOGICAL while reducing the cost of production.
ADVANCEMENTS

 Due to advancements, the opportunity to analyse gathered data

relating to the business has increased. As a result, companies are able
GATHERING DATA to use high quality data to improve their performance by understanding
strengths and weaknesses (Hussain et al, 2019).
 New production methods may make it easier for companies to recycle.
PRODUCTION Therefore, attracting more consumers to their products.
METHODS

LEGAL ANALYSIS
 For any food or drink related product within Australia, it must be
applicable to the criteria set out in the Food Standards Australia New
FOOD STANDARDS Zealand. (Business Queensland, 2019)

 Food products must be passed by the Australia and New Zealand

Food Regulation Ministerial Council in order to be sold (Business
REGULATION Queensland, 2019).

 To be considered “organic”, products must use organic or bio-dynamic

ORGANIC ingredients only. (Business Queensland, 2019).

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ENVIRONMENTAL ANALYSIS
 Due to extreme weather events, such as drought, companies may find
it harder to source their supplies as it may reduce the available
REDUCTION IN amount.
SUPPLIES

 A decrease in availability of supplies will result in inflated prices,

meaning companies will have to increase prices for consumers.
PRICE INCREASES

 An increase in prices for high quality supplies may cause companies to

LOSS OF QUALITY use cheaper alternatives, therefore, the quality of product must
decrease if a company does not choose to increase the price of goods.

MICRO ENVIRONMENT ANALYSIS

COMPANY ANALYSIS

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Positive Aspects of Company

 Mildura Fruit Juices uses organic produce in their products. The

company has gained certification from the National Association for
Sustainable Agriculture Australia that the company passes the national
standard for organic and bio-dynamic produce (Mildura Fruit Juices
Australia, 2019).

Organic Product
Certification

 Mildura Fruit Juices Australia has a ‘Vendor Quality Management

Program” in place to ensure consumers are provided with the highest
quality of product as possible in regard to aspects such as production,
packaging and distribution (Mildura Fruit Juices Australia, 2019).

Strong Focus on
Ensuring Quality
Operation

 Mildura Fruit Juices use the most advanced technology available in

Use of Latest production of their products. (Mildura Fruit Juices Australia, 2019).
Technology Therefore, the company is able to produce products of higher quality
while improving efficiency at the same time.

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Negative Aspects of Company

 As Mildura is under the ownership of Japanese owned Lion, Australian

consumers may prefer to purchase products from an Australian owned
and operated company, while Lion is operating primarily within
Australia and New Zealand they are of Japanese ownership.

Foreign Ownership

 As Mildura is owned by the Daily Juice Co. it means that it is also

competing with their parent company as both retail fruit juices.

Parent company is a
competitor

Lack of Marketing  Although Mildura is one of Australia’s most successful juice

Campaigns processors, the company lacks a strong marketing aspect and relies
mainly on consumers recognising their products.

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Analysis
COMPETITOR ANALYSIS
Unfortunately for Mildura Fruit Juices, the competitors are not only those from within the
fruit juice industry, however, the beverage industry as a whole. Competitors such as
Somersby appeal to those over the legal drinking age of 18, as they offer alcoholic fruit-based
beverages which would be far more popular for events such as celebrations in comparison to
regular fruit juice. Furthermore, Mildura also faces competition from soft drink
manufacturers such as Coca-Cola and Fanta, which are very popular with children and
teenagers due to their sweet and sugary drinks. Furthermore, San Pellegrino are an additional
competitor which offer a variety of fruit flavoured drinks, however, unlike a traditional juice
their beverages are carbonated. Within their own specific industry of fruit juices, Mildura
also face heavy competition, from companies such as the Daily Fruit Juice Company as well
as Berri, who both offer a variety of various fruit juices. Therefore, Mildura face strong
competition within their own industry as well as the beverage industry as a whole.

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Situation Analysis
Competitor Points of similarity Points of difference

 Both Mildura and Coca-Cola  Coca-Cola provide a sugary, soft

Logo of produce beverages which drink while Mildura are a healthier
Brand are easily affordable and fruit juice option.
accessible.

 Both companies offer an  While Mildura is a healthy fruit juice,

Logo of orange flavour inspired drink. Fanta is a less health inspired,
Brand sugary orange flavoured soft drink.

 Both companies offer a  Unlike Mildura, San Pellegrino’s fruit

Logo of variety of fruit flavoured beverages are made with sparkling
Brand drinks water and are carbonated.

 Both produce fruit juices.  The daily juice company only

Logo of produces juices while Mildura
Brand produces additional fruit related
products.

 Both are Victorian based fruit  Berri exclusively produces fruit juices
Logo of juice companies. while Mildura produces additional
Brand fruit related products.

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COMPETITIVE MARKET SUMMARY

Competitors 1,
2

 All beverage consumers  All beverage consumers

Target Market
 Coca Cola produce a  Fanta provide a 600ml
600ml soft drink sized orange flavoured
beverage. soft drink.

Product

 $3.70 per bottle  $3.70 per bottle

Price
 Coca-Cola often promote  Fanta promote primarily
through commcercials, through commercials.
however, they also
Promotional promote through
sponsoring significant
events.
 Products can be  Products can be
purchased at most purchased at most
Distribution stores, particularly grocery stores.
grocery stores and
pharmacists.
 .Coca-Cola are one of  Fanta are an extremely
Strengths the world’s most popular well known and easily
brands recognisable brand
 Coca-Cola has often  The beverage features a
been labeled unhealthy high amount of sugar.
Weaknesses which may turn certain
consumers away.

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Situation Analysis
Competitors
3&4
 Most regular beverage  Most beverage
consumers consumers.
Target Market

 San Pellegrino offer 6  500ml bottle of orange

cans of 330ml Juice
carbonated fruit drinks.

Product

 $9.70 for 6 cans  $2.40 per bottle

Price

 San Pellegrino use  The products are

international marketing largely promoted
campaigns largely through various
Promotional marketing campaigns.
based on Italian
inspiration.
 San Pellegrino  Most major grocery
products can be outlets.
Distribution purchased at major
grocery outlets such as
Coles and Woolworths.
 San Pellegrino offer a  Quality fruit juice option
combination of a for consumers
Strengths standard fruit juice and
soft drink with a
carbonated fruit juice.
 The drinks cannot be  Large range of
purchased individually products means that
and only come in a products will have to
share sales.
minimum package of 6
cans.
Weaknesses

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Situation Analysis
CONSUMER ANALYSIS

CONSUMER MOOD BOARD

Insert say 3-10 pictures that represent the consumer persona (eg: Shows age, gender,
reference group, interests and activities, style of clothes etc)

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OVERVIEW OF CONSUMER
Consumers are relatively broad, however, in particular parents are likely a
Who? significant portion of the consumers.

Parents will purchase fruit juices, such as orange juice.

What?

Products are most likely to be purchased at grocery stores such as Coles and
Woolworths.

Where?

Products are likely to be purchased when consumers do their regular grocery

shopping, which is likely to be every several days.
When?

Parents will purchase orange juice for their children as it contains important
vitamins such as vitamin C.
Why?

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Situation Analysis
SWOT ANALYSIS

 Mildura Fruit Juices is already one of Australia’s most recognisable fruit juice
companies
 The brand features various ranges of products
 Products are high quality due to the presence of the latest technological
machinery as well as organic produce being used

Strengths

 Although the company is Australian based, foreign ownership may lead certain
consumers off as they want to purchase from Australian owned brands.
 Mildura doesn’t boast a major marketing campaign at current which means new
consumers are less likely to recognise the brand.
 Strong competition from parent company.

Weaknesses

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Situation Analysis
  Mildura can use marketing campaigns to further their reach within the consumer
base.
 There is potential for Mildura to run a campaign where certain amounts of profit
are donated back to the community.

Opportunities

 Mildura faces strong competition from within its own industry, from other
Australian owned and operated brands such as Berri.
 Indirect competitors such as Fanta and Coca-Cola are a threat to Mildura as
those brands may lead consumers away from a healthier fruit juice choice to a
sugary soft drink.

Threats

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Situation Analysis
Recommendations
OVERVIEW OF RECOMMENDATIONS SUMMARISED FROM
ANALYSIS
If Mildura is to compete and prosper within the fruit juice and beverage industries, it is highly
essential that the company implements certain measures towards increasing their marketing standpoint
within the industry. Furthermore, successful implementation will result in increased profitability.

RECOMMENDATION 1 -MARKETING CAMPAIGN

Mildura should look into implementing a marketing campaign to increase their standing
amongst consumers. Although the brand produces high quality juices, to further their
standing within the industry and succeed against their competition it is critical that the brand
devises and implements a successful marketing campaign. These can include TV
commercials as well as marketing to a certain target market through social media sites such
as Facebook.
RECOMMENDATION 2 -GIVING BACK TO COMMUNITY
As Mildura is not an Australian owned company, it can prove extremely beneficial for the
company to run a campaign where it gives back to the Australian community. For example,
with the recent droughts and fires to hit Australia, Mildura could offer a certain amount of
money per sales towards aiding those affected. As a result, it is likely that Mildura would
experience a very positive reflection amongst consumers.
RECOMMENDATION 3 – SUCCESFUL PARTNERSHIPS
For Mildura to further prosper, successful partnerships are necessary. Mildura may look into
partnering with schools and sporting clubs for their juices to be retailed within those
organisations. For example, if Mildura juices were the only juices sold within a school
canteen, it increases the possibility of children asking their parents to purchase the same juice
when grocery shopping too.

RECOMMENDATION 4 – PRIORITISE MAIN PRODUCT

As statistics demonstrate, orange juice accounts for 39.1% of the total market share of fruit
juice (Goldstein Research, 2019). Therefore, it would be beneficial for Mildura to focus on
and prioritise their orange juice. Considering the product boasts the highest market share,
further marketing and improving the main product will lead to further success if Mildura can
take up a significant portion of the total market share for orange juice.

RECOMMENDATION 5 – CHANGE PACKAGING DESIGN

At present, Mildura boasts a standard packaging design. However, with increasing
competition from both fellow juice companies as well as other beverage companies, it is
essential for Mildura to have packaging which stands out to consumers. With an abundance
of options for juices within major grocery outlets, it is critical for Mildura to have packaging
which will stand out and attract a consumer deciding which product to purchase.

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Situation Analysis
Conclusions
In conclusion, Mildura Fruit Juices Australia is already a successful brand within the fruit
juice industry, however from the analysis above it can be determined that certain
implementations can be made to assure and improve the company’s future success. It would
be recommendable for the company to further expand the marketing aspect of their operation
by implementing a successful marketing campaign, as well as attracting consumers through
campaigns giving back to the Australian community. Additionally, successful partnerships
with organisations such as schools and sporting clubs may increase the sales reach of the
company. Furthermore, prioritising the main selling product with the highest market share
will benefit Mildura as will a redesign of the packaging. Ultimately, Mildura Fruit Juices
Australia faces significant competition, if the company is to further succeed, it is necessary
that aforementioned recommendations are implement successfully.

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https://www.lionco.com/about-us/our-history/2000s

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market

About | Mildura Fruit Juices Aust| Innovative Fruit Processing. (2019). Retrieved 2 December 2019, from
https://www.mfja.com.au/about/

About Us – Daily Juice. (2019). Retrieved 12 December 2019, from http://dailyjuice.com.au/about-us

Accreditations | Mildura Fruit Juices Australia | Leading Fruit Proccessors. (2019). Retrieved 6 December
2019, from https://www.mfja.com.au/quality/accreditations/

Burdon, D. (2019). Junk food industry shaping health policies at public's expense: study. Retrieved 6
December 2019, from https://www.canberratimes.com.au/national/act/is-big-food-political-lobbying-
helping-shape-health-policies-at-the-publics-expense-20170123-gtwr2e.html

Hussain, S., Hussain, S., Matthews, K., Matthews, K., Lee, I., & Lee, I. et al. (2019). 5 Ways New
Technologies Are Affecting The Food Industry | Socialnomics. Retrieved 6 December 2019, from
https://socialnomics.net/2018/03/04/5-ways-new-technologies-are-affecting-the-food-industry/

IBISWorld, I. (2019). Market Research Reports & Analysis | IBISWorld AU. Retrieved 3 December 2019,
from https://www.ibisworld.com.au/industry-trends/market-research-reports/manufacturing/beverage-
tobacco-product/fruit-juice-drink-manufacturing.html

Laws and regulations for new food technologies | Business Queensland. (2019). Retrieved 6 December
2019, from https://www.business.qld.gov.au/industries/hospitality-tourism-sport/food/innovative-
products/laws

Mildura Fruit Juices | Shop Ethical! company profile. (2019). Retrieved 3 December 2019, from
https://guide.ethical.org.au/company/?company=2054

Olson, E., Slater, S., & Hult, G. (2005). The Performance Implications of Fit among Business Strategy,
Marketing Organization Structure, and Strategic Behavior. Journal Of Marketing, 69(3), 49-65. doi:
10.1509/jmkg.69.3.49.66362

Technology | Mildura Fruit Juices Aust | Innovative Fruit Processing. (2019). Retrieved 6 December 2019,
from https://www.mfja.com.au/technology/

What Brands Need To Know About Modern Millennial Snack Culture. (2019). Retrieved 6 December
2019, from https://www.forbes.com/sites/jefffromm/2017/02/08/what-brands-need-to-know-about-
modern-millennial-snack-culture/#658035fe1885

Wiersema, M., & Bowen, H. (2007). Corporate diversification: the impact of foreign competition, industry
globalization, and product diversification. Strategic Management Journal, 29(2), 115-132. doi:
10.1002/smj.653

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