Tropicana’s Marketing Mix

Tropicana Pure Premium is a product manufactured by Tropicana Products, now owned

by PepsiCo, Inc. Tropicana Pure Premium prides itself on its statement of 100% pure and
natural juice. Within each 59-ounce container of juice, Tropicana claims to squeeze in 16 freshly
picked oranges. In addition to this, Tropicana Pure Premium Orange Juice does not contain any
water, sugar, or preservatives to ensure an untainted taint to their product. Tropicana Pure
Premium is never made from concentrate, a feature that the company has always prided itself in.
In order to create a variety of offerings to satisfy a multitude of customer tastes and needs,
Tropicana Pure Premium now offers nine different varieties to their brand. Ranging from “no
pulp” to “lots of pulp,” even a “low acid” option, these juices allow Tropicana Pure Premium to
reach out to a larger customer base.
Tropicana Pure Premium, like many grocery commodities does not contain a set price for
its products, leaving their retailers to set their own prices. The Publix store located at 1401
Monza Ave. in Coral Gables, Florida priced Tropicana Pure Premium Orange Juice at $3.59 for a
59-ounce container, and $6.49 for a gallon container. This means that for a customer who
purchases the gallon container, compared to a customer who purchases two 59-ounce containers,
the customer saves around $0.64 in addition to receiving ten extra ounces of orange juice
compared to the two 59-ounce containers.
The most remarkable feature of Tropicana Pure Premium’s deliverance of their product to
the Publix customers is its centrality in the refrigerated juice aisle, along with the vast variety
and quantity of juices that is contained in the Pure Premium area. This allows Tropicana Pure
Premium to be more visible to their consumers while other brands’ juices may be more difficult
to locate in the aisle.
One of the most evident uses of promotion that Tropicana Pure Premium implements is
their packaging. The classic Tropicana Orange with a straw in it conveys familiarity to its
customers. In addition, the 59-ounce container is visibly transparent allowing customers to
physically see the juice in which they are purchasing before the actual acquisition. Tropicana
Pure Premium also promotes its products’ value to their customers through their “never from
concentrate” testimony on the packaging. The product clearly communicates to the consumer
what is inside the container, and the value of the Tropicana Pure Premium brand. Currently,
Publix was not offering any discounts on either the Tropicana Pure Premium 59-ounce or gallon
containers.

Analysis of Competitors

From the trip to Publix, three clear competitors to Tropicana’s Pure Premium brand were
discovered. Minute Maid Orange Juice, owned by Cappy Brand, Simply Orange, owned by
Coca-Cola Company, and Florida’s Natural Brand.
All three competitors’ brands of orange juice featured the same 100% juice promises, and
none of the brands were made from concentrate. Thus, all three competitive brands of juice have
created the same value as Tropicana’s Pure Premium to the customers in providing the healthiest,
purest form of orange juice.
The first clear distinction between Tropicana Pure Premium and the other competitive
brands is in the products’ prices for the juices. The price table below illustrates the variance in
prices between the four brands for a gallon container of juice.

Company Tropicana Simply Orange Florida’s Minute Maid

(Owned By) (Pepsi) (Coca-Cola) Natural Brand (Cappy)
Price $6.49 $7.16 $5.99 $5.04

This table demonstrates the potential buyers’ beliefs about each particular brand of
orange juice. Simply Orange, bearing the Coca-Cola brand, is able to price its juice much higher
than the likes of Florida’s Natural Brand and Minute Maid.
Finally, a large discrepancy could be made between the packaging and promotion for the
three competitive brands. Minute Maid and Florida’s Natural were packaged in cartons, whereas
Simply Orange sported the same transparent design as Tropicana Pure Premium, once again
allowing customers to easily see the product in which they are purchasing. All three brands have
statements of “Never made from Concentrate” and “100% Juice” clearly visible on the front
portion of the packaging, again communicating the value of their products. Finally each brands’
packaging also contained a picture of an orange. Curiously enough, however, none of the images
of the orange were of a real orange, but were obviously computer generated.

The Consumer Behavior Process with Respect to the Brand

While the purchase of Tropicana orange juice is relatively inexpensive, the consumer
decision process, a marketing model that describes the life of a consumers purchase in 5 steps,
still applies and is rather important. The first step in the process is called need recognition—a
need that a consumer has and wishes to satisfy. For example, thirst is something that a consumer
might want to satisfy and thus, realizes that he needs to purchase a beverage do to so. Need
recognition can be divided into two parts, functional and psychological. A functional need is
related to the capacity of a product while a psychological need deals with the consumer’s
gratification in relation to a product. However, more often than not, orange juice wouldn’t be
considered a psychological need as it isn’t considered a luxury product and doesn’t satisfy those
needs. After a need is recognized, often a thirst for orange juice; the next step pertains to the
search for information. This is the stage where consumers gather information as to how they can
satisfy their need. Once again, there are two types, internal and external. An internal search
occurs when a consumer examines what they know about a certain product—this can be gathered
over years from past experiences. On the other hand, external research involves searching for
information outside ones self, which can be done by reading articles, talking with other
individuals, etc. If a consumer is thirsty, they might remember their past experiences with
Tropicana orange juice and base their decision by that information. On the flipside, if they’ve
never tasted Tropicana, they might go online and conduct external research—looking at
consumer reviews of the product and reading information about orange juice in general. Many
factors affect this process as well such as the perceived benefits of research versus cost, the locus
of control, and actual or perceived risk. Alissa Hamilton, author of Squeezed: What You Don’t
Know About Orange Juice, conducted extensive research about the industry and found that many
customers share similar internal information about the product—“yet if you ask people why they
do the answers sound programmed: its healthy, it’s a good source of vitamin C, it’s a good way
to start the day.”
The third step in the consumer decision process consists of the evaluation of alternatives.
Instead of buying Tropicana per se, a consumer might recognize Simply Orange as an alternative
for they offer the same product but differ slightly. However, if a consumer was unsure of the
product to purchase, simply concerned with satisfying their thirst, they might all consider all the
drinks they know about and begin to narrow down the choices. Decision heuristics, one of the
many subsets of the evaluation of alternatives step, involves price, brand, and product
presentation—shortcuts that help buyers make their decision. Since Tropicana’s venture into
orange juice in 1952, they’ve built and extremely strong and well-known brand that consumers
may be easily drawn to. In addition, Tropicana has revamped their product presentation, offering
their orange in a new see-through 89oz bottle with a flip cap, a huge improvement over their last
package. Consumers may associate this sleek, well-designed package, with a good presentation
and therefore would be more inclined to buy the product.
The fourth step consists of the actual purchase and consumption of the product. Retailers
want to make sure that they are able to turn the intensions of the customer into an actual purchase
by using a method called the conversion rate. In this step the purchase of a carton of orange juice
would be made.
In the fifth a final step, the post-purchase, the behavior that consumers exhibit after their
purchase is revealed. Post-purchase consists of customer satisfaction, post-purchase dissonance,
and customer loyalty. Customer satisfaction refers to the fulfillment or gratification that buyer
has after purchase—it can be either negative or positive and firms make efforts to let consumers
know that they care. Cognitive dissonance on the other hand refers to the confusion customers
experience after the purchase of a product. This doesn’t happen with smaller products such as
orange juice but rather with larger products such as the purchase of a washing machine or
computer. Customer loyalty is extremely important to firms and can affect the opinions of others
through the word of mouth. For instance, a consumer who purchased Tropicana posted a video
on the video-sharing site, YouTube, under the username “segasaturnsnk” and raved about the
new benefits of the new packaging, claiming that “the taste is way better”. In addition, the
Tropicana website contains a section that they created specifically for bloggers called,
TropiMammas who are, “in-the-trenches experts who share the ins and outs of motherhood,
raising a health family, eating right, fitness, bargain hunting and more!” This TropiMamma
initiative that Tropicana has launched goes to show that they really do care about their customers
and are interested in each and every one of them—the blogs not only relate to the product, but
also the lifestyle of the customer. They also reach out to customers through social media with
their Twitter account and Facebook. Each contains customer feedback and incentives from
Tropicana to loyal customers.

Needs that Motivate Customers and Level of Involvement

Tropicana orange juice, a relatively inexpensive product, has been extremely popular
since its introduction in the 1950s and is considered to be a breakfast stable. Because it is not a
luxury product, a consumers decision to make a purchase can involve a long thought process but
could also consist of an impulse. After interviewing five individuals, I found that consumers did
not have too much involvement in their purchase but realized that a need must be met for the
most part.
Gregory White, a freshman who purchased Tropicana often but did not consider himself
to be a loyal customers said, “everyone associates the drink with breakfast—and so do I. I
usually buy it because I have a need, and that is to hydrate myself in a healthy way. Orange juice
contains vitamin C and is a much better alternative to sugary sodas and lemonade”. He then went
on to describe how he wasn’t involved with his purchase a great extent but rather, used
information and shortcuts (decision heuristics) to choose his purchase.
Many others that were interviewed, such as Ravi Thombre, a club level distance runner,
had similar views. Being an athlete, he stated that his health was very important to him and when
he wants to quench his thirst, he’s concerned with finding a healthy solution. While he knew that
Tropicana orange juice was considered to be healthier than many alternatives, he said, “I don’t
put much effort into my search. I’m aware that it’s a healthy product and so I’m not too
concerned with spending much time deciding whether or not I should buy it.”
After additional interviews with Nathan Bendriem and Paul Schiano, it appeared that
most individuals were motivated to purchase Tropicana because of the health benefits they
received. Although no one seemed to put in much time or effort into the purchasing process,
there was one exception—nutrition major, Steven Krawcyzk. Having a passion for nutrition and
fitness, Steven said that he was always concerned with his health and decided to turn vegan a few
years back. In doing so, he experienced a drastic change in his health, physique, and energy
levels. When I asked him what it would take before he would actually purchase a carton of
Tropicana, he replied by saying “I’m still very skeptical of the whole thing. I’m not sure if it is
100% natural but if I were to actually buy the drink, I would spend a lot of time researching the
potential risks and benefits online. I typically do this with every food item before I make a
purchase since I am very health conscious”. After this research had concluded, it became evident
that the health benefits associated with Tropicana orange juice was a primary factor that drew
customers in. They were motivated to quench their thirst with this drink because its satisfied their
need and also provided the additional “healthy” aspect.
While many consumers don’t put in much time and aren’t involved in the process of their
purchase because orange juice is such a small product, they are motivated to buy it. However,
with everything, there are exceptions as shown with Steven Krawcyzk who is very in tune with
the food and drink items that he purchases.

The Segmentation Strategy Used by Tropicana, their Target Market, and Position Strategy

Tropicana uses a very smart segmentation strategy to try and reach the highest profit
levels for the company. The company stresses how their juices are all natural. Across their
website, “100% pure orange juice” is labeled everywhere. They are labeling themselves as a
healthy product to serve those who are taking a proactive effort to take care of themselves.
It makes sense to target the market based on those who are health conscious and those
who are not. Typically speaking, those who drink juice instead of soda or coffee are making an
effort to live a healthier life style. Health and natural juices almost go hand in hand. The majority
of other orange juice companies themselves also pride themselves on being healthy.
 To back up their health claims, Tropicana has a section of their website dedicated just to
informing customers about the improvements in one’s health that once can see from Tropicana
Orange Juice. This company wants to attract the healthy crowd by showing some of the positive
side effects of their orange juice. Those who don’t want a sugar based beverage to take care of
their cholesterol and heart condition will be flocking to Tropicana.
Tropicana is positioning them as a healthy juice and targeting the health conscious group
of the population. It is a smart choice since most people who drink juices are trying to be healthy.
They also inform their customers about all of the health benefits that their juice brings.

Tropicana’s Brand Packaging and Labeling

Packaging is an important piece of the market’s puzzle. Packaging can grab a consumer’s
eye to make them look at the product and contemplate buying it. If the packaging can draw the
eyes, their product get’s free advertising. If it is dull and unoriginal, it can just sit on the shelves.
Tropicana has learned over the years from personal experience what works and what doesn’t.
Their new packaging is the product from years of research.
The Tropicana bottle has recently undergone a new change. It is a clear bottle with a
handle to provide support when pouring. This is a simple convenience matter. This way people
with smaller hands can pour orange juice without worrying about it falling out of their hands.
Another asset is that they kept their main logo; which is an orange with a straw through it. When
Tropicana changed their logo years ago they lost twenty-five percent of their sales. Keeping that
is crucial. The clear bottle lets the consumer know that their purchase is filled with orange juice
and that there is nothing visibly wrong with it. Tropicana also still goes after their target, those
who want pure orange juice, by labeling “100% pure orange juice” near the focal point of the
bottle.
In addition to the changes that Tropicana has made over the years, one important aspect
of their packaging is the fact that they offer 8 different varieties of containers for their orange
juice. These packages range all the way from personal 8-ounce cartons to a large family size
carton that contains 128 ounces—each with the iconic orange and straw on the face of every one.
By making a variety of containers, Tropicana ensure that their juice is can succeed from in a
variety of locations—making it accessible to as many customers as they can.
Due to the growing number of environmentally conscious customers, Tropicana has also
spent time, money, and effort, to produce containers that are eco-friendly. They claim that they
know the importance of recycling to each and every customer and thus, have deeply added to the
value of their packaging—“we are working to make our cartons more recyclable and to help you
understand the recycling process for both carons and bottles.”
In conclusion, Tropicana’s orange juice packaging is great. It assures is now easier to
pour for everyone, which is a technological improvement. The bright orange inside the clear
bottle also jumps out at the consumer to draw their attention. Finally, they hook their target
market by showing the consumer that they are drinking pure orange juice with no concentrate.
That is the genius behind this new packaging.
 Suggestions to Improve Tropicana’s Marketing Strategy

One way Tropicana could improve their marketing strategy, is by putting more of an
emphasis on the health benefits of drinking Tropicana Orange Juice as opposed to other sugar
drinks or juices. Consumers are becoming more and more concerned with their health and are
looking for products that taste good but are also healthy. Tropicana can take advantage of this by
creating ads and campaigns that center on the health benefits of not only their Tropicana Healthy
Heart Juices, but also on their regular Tropicana line. Tropicana should make consumers more
aware of the various health benefits to drinking orange juice such as cleaner blood vessels,
reduced risk for cardiovascular disease and lower cholesterol as well as many others. Tropicana
should put advertisements at more sporting events and try to create an association between their
orange juice and being an active healthy human being. This improvement in their marketing
strategy will not only increase the perceived value of Tropicana to the consumer, but also allow
Tropicana to increase their market share by tapping into the market of healthier juice brands such
as Simply Orange while still maintaining the great Tropicana Orange Juice flavor that so many
consumers have come to love.
Tropicana should also take more advantage of the life long relationship that many
consumers have with Tropicana. Many consumers have been drinking Tropicana since they were
little kids or used to drink Tropicana when they were younger. Tropicana should take advantage
of the comforting feeling we sometimes associate with their orange juice by creating ads that
make consumers reminisce on those days when they were younger drinking Tropicana. This will
create great memories in the consumers that will not only make them want to purchase
Tropicana, but will help maintain their business and create loyal consumers for the future.

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