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Project Report - Wiikano Orchards - Group 5
Project Report - Wiikano Orchards - Group 5
Marketing Strategy
(MKT631)
MBA 2019-21
SUBMITTED BY:
GROUP - 5
Ritika Sharma (1910120028)
Ashutosh Choudhary (1910120007)
Anuj Yadav (1910120163)
Atul Mishra (1910120135)
Mayank Sharma (1910120021)
Morvi Dhawan (1910120022)
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1. INTRODUCTION & CURRENT SITUATION
Dena Yazzie, president of Wiikano, a company that had produced and vended freshly pressed apple juice in
the United States for decades, was reviewing a proposal to tackle the company’s constant losses by re-
launching Wiikano’s apples juice, promoting the brands and potentially raising prices. Wiikano
manufactured and sold apple juice under the Tuwa brand name in the Midwestern region of the country. If
the proposal was to be accepted, retailers and wholesalers would likely pay more for the apple juice. Yazzie
had only four days to make her conclusive recommendations the Board of Directors.
Current Scenario: Company has this tremendous historical presence since year 1928 in the market with
one dedicated brand name “Tuwa”. Firm has its own brand name as “Wiikano” since 1968. Company has
consistent market presence in apple products industry since decades. Firm has been one of the few brands in
the industry which is producing bottles of apple juice from 100% fresh pressed apples rather than from apple
concentrate. Wiikano Orchards might have done well historically. However, company’s FY 2016 data shows
that firm has not done well financially as expected or planned. From “Income statement of FY 2016 where
company has costs worth of 1,235,380 US dollars compare to their revenue generated from products which
was 1,220,160 US dollars. Company was not able to generate profits for FY 2016 as firm has made loss of
15,220 US Dollars. Wiikano orchards has some inherent rich history and native American brand value in the
market. However, company has been precisely rich in history and consistent in their business presence in
market they were not able to tackle top market competitors in their industry for several reasons. Company
has loss of 15,220 US Dollars in FY 2016. Financial condition has been harsh because of loss in important
business year of 2016. Wiikano Orchards clearly lacking to align their marketing plan, strategies and various
forms of promotion compared to their fellow competitors. Company has failed to attract their wholesalers
and other supplier by providing well rounded margins and discounts in form of promotional sell offers.
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2. LEVEL OF COMPETITION ANALYSIS
Can we Differentiate? We can differentiate based on health benefits, flavor appeal, perceived
quality, comparable prices of other brands, and familiarity of the brand. Wiikano sells half-gallon
bottles of sugar free apple juice made from an average of six pounds of fresh apples. These apples are
grown as raw materials in Wiikano's superior orchards, and their consistency is suitable to produce
apple jelly, apple juice, and apple cider. The Wiikano juice is one hundred percent fresh-pressed juice,
Can we Perform Against Critical Success Factor? Yes, we can perform against critical success
factors as Wiikano is the only brand on the market that sells 100% freshly squeezed apple juice, as well
as a variety of other high-quality apple-based items. As the younger generation in the United States
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becomes more health-conscious, Wiikano has a lot of opportunity to fill this void in the market because
they sell sugar-free drinks, which their rivals do not because the majority of juices on the market are
made from concentrate. The use of locally sourced raw materials, such as homegrown apples,
emphasizes the value of clearly identifying the product's origin, since consumers are more likely to buy
Stage of Competing Products in the product life cycle: Is the timing, right? Growth stage is the
stage of Competing in the product life cycle: Yes, the Timing is Right.
Growth: If a product makes it through the introduction stage of the life cycle, it moves on to the
development stage. Sales are rising at this stage, profits are healthy, and a slew of new entrants have
entered the market. Large corporations may begin to acquire small pioneering businesses that have
progressed to this point. The focus shifts away from primary demand promotion and toward aggressive
brand ads and communicating brand differences, which is been perfectly handled by Wiikano currently.
Justification for Weight and Rating: Growth stage is the stage of Competing in the product life
cycle, it is identified and is understood well. Also, Wiikano is the only brand on the market that sells
100% freshly squeezed apple juice, as well as a variety of other high-quality apple-based items. hence,
WIIKANO ORCHARDS: When it comes to welcoming decisions and introducing new concepts and
methods in accordance with current marketing campaigns, organizational structure has been viewed as
conservative and ancient. For instance, in the food industry, digital marketing has yet to be applied. By
looking at the participants of their board meetings, it seems that the company lacks a well-established or
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graded organizational ladder. There was no one from the ground who visits their retailers for live reviews
MINUTE MAID: CEO James Quincey leads the Coca-Cola Company Executive Team, which is rated
a "C+." Workers at the Coca-Cola Company rank their executive team in the top half of similar-sized firms
with 10,000 or more employees. The Engineering department and employees with 1 to 2 years of
experience are more optimistic in their Executive Team, while the Finance department and employees with
TROPICANA: Lee Han Ming (CEO), Yeow Wai Siaw (Group Chief Executive Officer), Chris
Stansbury (CFO), Tom DeSaulniers (Director at Tropicana Products) etc., every member of the senior
management team has years of experience in FMCG and consumer goods industry, in a senior leadership
role in various domains such as IT, marketing, innovation, strategy, finance etc.
WIIKANO ORCHARDS
Manufacturing: Wiikano's orchards produced apples of a high enough quality to be used in apple juice and
cider. The average yield per acre in 2016 was 54 available tons. Apples are held in a sterile environment for
up to a year. Land provision and maintenance, trees, planting, orchard growth and maintenance, pest control,
harvest, storage, and labor were all part of the apple orchard production costs. They used high density tree
planting, which increased tree densities from 150 to 250 trees per acre to 500 to 1,000+ trees per acre,
resulting in earlier harvest, a faster return on investment, and better fruit quality.
Distribution: Wiikano orchards' distribution channels are remarkable and standard industry practice. Via
farmers markets and a small on-site shop, they sold fresh apples and other value-added apple items directly
to customers. After broker and wholesaler fees, the company received $0.52 per unit thanks to its aggressive
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pricing strategy. The average retail price was $2.69, with prices ranging from $2.19 to $3.29. Since Wiikano
Orchards' minimum order size was lower than that of larger processors, many accounts became frequent and
dominant customers.
Financials: Wiikano Orchards may have performed well in the past. However, data from the company's
fiscal year 2016 indicates that the company did not perform as well financially as anticipated or planned.
According to the “Income Statement of FY 2016,” the firm had expenses of $1235,380 US dollars compared
to sales of $1220,160 US dollars from goods. The company was unable to make a profit in FY 2016,
MINUTE MAID
Manufacturing: The Minute Maid Company has a factory in Apopka, Florida, as well as manufacturing
facilities in New Jersey, Massachusetts, Michigan, Texas, and two in Canada. Minute Maid, a premium juice
and juice drink brand manufactured and distributed by HCCB, debuted in India in 2007. HCCB's Ameenpur
plant, near Hyderabad, produced the first batch. Many of the fruits used in the production of Minute Maid
come from the best parts of India, such as Litchi from Bihar, grapes from Tamil Nadu, and oranges from
Vidarbha. Locally sourced fruits benefit the farmer community. The fruit pulp procured by HCCB supports
Distribution: Minute Maid has placed more importance on its distribution strategy, ensuring that its
offerings are available to the public for mass market consumption. Its distribution system includes the
conventional distributor, wholesaler, and retailer networks, as well as discount stores, food stores, grocery
markets, corner shops, cafés, hotels, restaurants, airport cafes, and stalls at railway stations and malls, to
attract consumers.
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Financials: Vacuum Foods Corp. introduced Minute Maid orange juice in 1946. It was the United States'
first frozen concentrated orange juice product. Coca-Cola bought the company for $59 million in stock just
over a decade later, in 1960. Minute Maid Pulpy is the first Coca-Cola brand to cross $1 billion in annual
sales since being introduced exclusively in a developing country. The company had a market capitalization
of $200.5 billion and produced $9.0 billion in net income on $37.3 billion in sales in 2019.
TROPICANA
Manufacturing: Tropicana orange juice is made entirely of oranges grown in the United States, with the
vast majority originating from Florida. Valencia oranges, among others, are used by the company, which
works with more than 100 growers and 500 groves, many of which are owned by families. A plant in
Bradenton is one of the major suppliers of Tropicana orange juice, which is one of the most well-known
orange juice brands in the world. On 285 acres, with 69 acres under roof, the massive operation requires
about 7,000 square feet of cold storage space. Every truck is loaded with around 150,000 oranges, and the
plant handles 200 to 300 trucks every day. The plant processes about 4 billion oranges per year.
Distribution: Tropicana intends to expand its distribution network from 1 lakh outlets to 2.5 lakh outlets by
the end of 2021. Tropicana and Varun Beverages Ltd (VBL) have formed a strategic alliance to distribute
and sell Tropicana products in East and North India. The brand's sales in north India account for 80% of
total sales. Tropicana has been able to double its distribution network in India's East and North thanks to a
strategic partnership with VBL. Tropicana will be sold in 250,000 retail stores, with PepsiCo using the
Financials: Tropicana Manufacturing Company, Inc. employs 9 people in all of its locations and has a
revenue of $2.42 million (USD). Tropicana Manufacturing Company, Inc. is one of 3,148 companies in the
Tropicana Manufacturing Company, Inc. corporate family. Tropicana Corporation Bhd's revenues fell 7% to
RM1.06 billion in the fiscal year ended December 31, 2020. The company's net profits fell by 71% to RM92
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million. Due to adverse market conditions, revenues represent a reduction in demand for the Company's
Brand image:
WIIKANO ORCHARDS: By perfecting its 100% fresh-pressed apple juice items grown from a farmer
market that sells homemade apple juice and cider to customers, Wiikano has grown a brand name for its
company brand Tuwa and its own private brand. The Shawnee ancestors are represented by the brand
names Wiikano and Tuwa. As a result, Wiikano places the greatest emphasis on the apple juice
MINUTE MAID: Minute maid's goal was to create a clean, uncluttered, and straightforward brand and
packaging. As a result, a brand-new container form in the orange juice category has emerged,
complemented by a clean and clear graphic design. All the design elements work together to portray the
TROPICANA: Tropicana's brand promise is to provide customers with high-quality, real fruit drinks
while also encouraging them to live a healthy lifestyle. Tropicana is all about giving young people the
Justification for Weight and Rating: Although Wiikano Orchards has a unique value proposition
among its competitors and has a great brand image with relatively competitive management strength
and depth, still in terms of capabilities like manufacturing, distribution, and financials it will have to
improve to compete with the likes of Tropicana and Minute maid. Hence, Weight- 0.3 and Rating- 7.
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Threat of new entrants High High High
Overall, competition in the soft drink industry is mild, as concentrated manufacturers have escaped major
market competition. The industry is appealing because of the high entry barrier, which prevents new
entrants from fragmenting income; the lack of a visible replacement, the bargaining power of suppliers and
buyers.
Justification for Weight and Rating: Entry barriers are very high, buyer power and supplier power
is low, there is high threat of substitutes, rivalry amongst existing firms and industry capacity is also high.
So, the rating would be 7 and weight would be 0.3, as Wiikano Orchards is yet to achieve a better place in
7.8
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Their products fulfil the needs for apples and apple-related products such as apple cider, apple butter, apple
sauce, canned apples, raw apples, and, of course, fresh pressed apple juice. Apples with a quality grade
suitable for apple juice and cider were developed by the organization. Tuwa, the company's brand, was
available in more than 100 supermarkets across the country's mid-west region. Wiikano sells mainly in
Midwest markets to small food wholesalers who then distribute to local grocers in small towns and cities.
Justification: Unmet needs for needs for apples and apple-related products such as apple cider, apple
butter, apple sauce, canned apples, raw apples, and, of course, fresh pressed apple juice, have been
Marketing strategy of Wiikano's meets two broad objectives – carefully selecting target market and
designing marketing activities to achieve desired positioning in hearts and minds of the target market.
In the year 2016, it was estimated that the sale had reached $ 28.7 billion where the profit was about $ 6.1
billion. In addition to this, the projected annual growth was found to be 2.7%. In 2016, juice production
brought in $12 billion in revenue in the United States. In 2016, the United States grew over 5.4 million tons
of apples, with fresh apples accounting for approximately two-thirds of the harvest.
(Consolidation of the Industry), including competition from fruit-flavored water and consumer demand
3. MACRO TRENDS:
Demographic: Wiikano Orchards caters to both the high and low end of the industry. The
organization's decision to focus on a wider and more diverse set of segments has broadened the range of
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possibilities. In the future, the targeted segments are projected to expand at a steady pace. Wiikano
Orchards' primary consumer segment is the family with children, which requires Wiikano Orchards
performing social, emotional, and functional tasks to keep this market segment happy and fulfilled.
Orchards. Wiikano Orchards sees opportunities in population growth and growing low-end consumer
segments. The attitude toward migration in the markets where Wiikano Orchards operates necessitates
Economic: Inflation has a major effect on Wiikano Orchards' pricing structure. Since Wiikano
Orchards has a presence in several markets, marketing managers must adjust their strategies to changing
evolving government policies. The presence of a company in several markets raises the possibility of
political unrest. Due to recent changes in the global political scenario, Wiikano Orchards' geopolitical
Technological: The entry of new market entrants, as well as their investment in research and
development, requires the protection of Wiikano Orchards' intellectual property rights. Because of
technological advancements, product life cycles have become shorter, requiring Wiikano Orchards to
improve its value chain productivity. The cost of production has decreased because of technological
advancements, but the need to restructure the supply chain has increased.
Justification: Customers' shifting attitudes toward safer alternatives and a preference for quality
over price have significant implications for the business. Wiikano Orchards has identified the
demographic and socio-cultural factors and were appropriate in targeting both high- and low-level
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Segment size and growth rate 0.3 7 2.1
Macro trends 0.2 7 1.4
8.0
Market Attractiveness
High (8-10)
Moderate (4-7)
Low (0-3)
Weak (0-3) Moderate (4-7) Strong (8-10)
Competitive Position
From the matrix we can see that the market attractiveness is high while the competitive position is moderate.
1. Re-Branding: The initiative included a completely new marketing plan that included digital
marketing and in-store promotions, as well as wholesale price increases from $0.52 to $0.60 and a retail
price increase from $1.10 to $2.99 per unit. The brand would have to embrace the name Nepi Ochards,
and by rebranding the packaging, the brand would be able to stand out from rivals.
2. Digital Marketing: Wiikano is more concerned with maintaining a relationship with customers via
social media, to maintain brand equity from existing customers as well as create brand awareness and
attract new customers. This can be accomplished through establishing an emotional impact on consumers
through emphasizing the company's background and business acumen, as well as promoting the health
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benefits their products provide. The use of a well-designed interactive website will help the brand to
attract customers even more by allowing them to gain points and redeem them for promotional products
and coupons; however, it is important to note that this will add $25,000 to the Wiikano budget, which is
already tight.
3. In-store promotions: The use of hashtags and in-store ads would encourage the brand to donate to
local charities, which would be beneficial to the business since only a few juice brands have committed to
The above-mentioned marketing strategies may provide a competitive advantage, such as providing
customers better value, a high-quality product, and a due diligence survey or input for consumers and
product chain suppliers. As a result of a successful marketing plan, cost leadership, cost focus,
differentiation leadership, and differentiation focus will encourage a reasonable competitive advantage.
6. MARKETING OBJECTIVES
Product Objective: Wiikano Orchards has several goals, including rebranding the company's apple juice
products, raising prices in the most customer-friendly manner possible, recovering and addressing existing
losses, and regaining sales and income. The company has meticulously planned the redevelopment of its
marketing strategy, including digital marketing and a value-based approach to branding, among other things.
Marketing Objective: Wiikano Orchards' current marketing strategy is to deliver freshly squeezed apple
and high-quality apple juices, fruit purée, and creamy fruit spread to customers through rancher markets,
supermarkets, and wholesalers. Squeezed apple deals have the most drastic measure of profits.
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7. MARKETING MIX
Product- New apples and a variety of other value-added items such as applesauce, apple cider, and apple
Price- After broker and wholesaler fees, Wiikano received $0.52 per unit; retail costs averaged $2.69 per
unit. Accounts for store mark, on the other hand, included more than 40 small grocery stores. Since the
company's minimum order size was lower than that of larger processors, some accounts remained loyal.
Wiikano received $0.49 per unit after fees and allowances, with store labels accounting for 30% of overall
juice sales. The average retail price per unit was $2.49.
Place- Wiikano orchards' distribution channels are remarkable and standard industry practices. Via farmers
markets and a small on-site shop, they sold fresh apples and other value-added apple items directly to
customers.
Promotion- Since wholesalers provided price or volume discounts to grocers, who then offered additional
discounts to customers, the business spent a small amount on consumer promotions. Overall, Wiikano
believed that Tuwa's consumers lacked brand loyalty because they tended to buy solely based on price.
8. PROFITABILITY ANALYSIS
Wiikano Orchards' financial loss is the outcome of poor variable cost management, so it is recommended
that the company reduce costs in labor maintenance and harvesting by labor outsourcing. Correcting the
management of these variable costs would allow for reinvestment in the company's branding, product
differentiation, and capturing target consumers, as well as an overall improvement in the company's
financial standing. The problems with existing training and pruning clearly result in a cost gap between
budgeted and actual costs. The malpractice resulted in a reduction in the estimated number of trees per acre,
which, in turn, resulted in a decrease in the number of apples harvested. Because the trees were heavily
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planted, they needed special attention and pruning to ensure that they were properly exposed to sunlight,
which aided in the growth of the trees and their crops. The organization invested a significant amount of
money and resources in the workers who were supposed to look after the orchard, but the desired outcome
According to Exhibit 7, 89 % of the overall cost is variable. As a result, to reduce cost, it makes sense to
examine the variable components and identify those that were identified as problematic in the case. Hence,
our recommendation is to cut costs while also improving orchard care quality by outsourcing the job or
recruiting only highly skilled experts who can do the job better and at a lower cost. The average price for
In this profitability analysis we are reducing the labor- maintenance and labor- harvesting cost and will see
If we reduce the Labor- maintenance and Labor- harvesting cost in the total variable cost than the Total
specified cost per Acre will be decreased to $4597.95 from $5228.60. Hence saving $630.65 per acre and
Managing the variable cost efficiently will resulted into profit. As for the profitability, due to reduction of
total cost per acre the company earned profit of $ 66,458, compared to the incurred loss of $ 15,220 in the
actual statement.
Wiikano must satisfy consumer demands for healthier ingredients to compete in such a crowded market;
younger consumers are more conscious about their health and fitness, so they are more likely to buy low-
calorie, sugar-free, GMO-free, and naturally derived products. Tuwa must preserve its credibility and
historical values to show customers what they stand for and their work ethic, as rebranding would be
beneficial to the business. They should rebrand their packaging design to include more vivid and attention-
The bottle design and marketing strategy should emphasize product attributes to elicit a cognitive response,
but also include other health and emotional factors to elicit an effective response from customers.
Furthermore, features that highlight the brand's Native American heritage should be included in the logo and
packaging design, not only to broaden the target market of Native Americans, but also to raise awareness of
The organization invested a significant amount of money and energy in the workers who were supposed to
look after the orchard, but the desired outcome was not achieved. According to Exhibit 7, 89 percent of the
overall cost is variable. As a result, to cut costs, it makes sense to examine the variable components and
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Change can be unexpected and divisive, which is why rebranding should be done strategically with a
preoccupied mind and opinions and rebranded in the sense of getting the best possible endorsement from
10. REFERENCES
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Catorce, R. (2018, August 7). Greentown China replaces CEO; Former GuocoLand director
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