Green Spot

Brand Reassessment

May 11, 2006

Healthy Drink Market Overview

Market Structure

Soft Drink Industry

Healthy

Drink

Energy

Drink

Sport /

Electrolite

Drink

Enriched

Beverage

Carbonated

Soft Drink

Cereal

Drink

RTD

Tea

Fruit and

Veggie Juice

Premium

(100% juice)

Medium

(30-40% juice)

Economy

(5-25% juice)

Current Market Situation

• The Healthy drink market is a part of the 50,000-MB soft drink industry which is very segmented and highly competitive with many strong players and big brands
• The healthy drink market enjoys highest growth in the industry, which could be a result of strong health trend

Current Market Situation

• The market value is about 10,000 MB, consisting of 3 main segments:
• Fruit and Veggie Juice, 4375 MB
• RTD Tea, 4800 MB
• Cereal Drink, 236 MB
• “Refreshing feeling” is a basic benefit offered by most brands because it is what consumers expect to get from beverages

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Current Market Situation

• Value added health and beauty-related benefits have been key differentiator for both current and new brands, esp. in the fruit juice and RTD tea markets

Fruit and Veggie Juice Market

• The premium segment had highest growth of 18% and 50% market share in FJ market in 2005, while the medium and economy segments experienced little growth
• A study shows that brand selection is based firstly on percentage of real fruit juice, follows by taste and additional benefits

Fruit and Veggie Juice Market

• Consumers perceived benefits of fruit juice are
• High in vitamin c 🡪 good for cold prevention/skin complexion
• Anti-oxidant 🡪 anti-aging
• Good for digestion
• Contain high nutritional value, fiber, and mineral

Fruit and Veggie Juice Market

• On average, each Thai consumes 10 liters of juice per year and only 20% drink it daily
• Many switchers to FJ start by drinking medium or economy products
• Orange is the most favorite flavor among fruit juices

RTD Tea Market

• 2 main segments: green tea and black tea
• Green tea’s growth rate has been decreased since mid 2005 due to negative news and high price, but still enjoy about 85% share of total RTD tea market
• Black tea market is picking up after taking a downfall affected from green tea boom, with 15% share in 2005
• Brand selection based mainly on taste, brand, and wide availability
• Trend of RTD tea going into restaurant, competing against carbonated soft drinks

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Cereal Drink Market

• In 2005, the segment value is 236 MB, growing about 26% from previous year, capturing on negative growth trend of RTD green tea.
• With strong health trend, the segment is expected to grow 20% each year

Carbonated Soft Drink Market

• 2 main segments: cola and color CSD
• In 2005, soft drink category also experienced very little growth; cola segment grew 2-3% while color CSD segment was stable
• Brand selection is mainly based on taste, brand and brand-familiarity, and convenience of buying
• Cola drinks still dominate the soft drink market with about 75% share, while color CSD have 25% share

Carbonated Soft Drink Market

• Majority consumers prefer soft drink over other refreshing beverages because of its low price
• Average unit prices start to decline due to fierce competition
• CRM becomes key strategy to compete against FJ and RTD tea
• Many players also look into brand extension to healthy beverage products

Green Spot’s Brand Situation

• Branding and perception Issues
• Brand positioning as high quality, healthy, real orange flavor beverage is not registered and not understood by consumers
• Current positioning is also difficult for consumer to categorize the brand, so they have low brand relevancy
• Green Spot is perceived same as color CSD, not as a source of health-related benefits
• The brand is also perceived as old-fashioned and not innovative

Green Spot’s Brand Situation

• Product Issues
• No POD in consumer’s mind
• The product key attribute (10% OJ) is not enough to make consumer believe that it is high quality and have healthy benefits
• Limited product variant is disadvantage because the market competes on product innovation and value-added benefits to serve unmet needs
• Product packages also very similar to those of carbonated soft drinks which also contribute to consumer misperception

Green Spot’s Brand Situation

• Opportunities
• There are rooms to drive more consumption in FJ market
• Green Spot can leverage on brand credibility and familiarity
• Perception towards taste, as an important brand selection factor, is heavily affected by familiarity (ความคุ้นเคย) which come mostly for frequent consumption

Green Spot’s Brand Situation

• Competition
• Primary competitors include Splash, Qoo, Bireley’s, and other economy fruit juices
• Secondary competitors (by products) are color CSD
• Other competitors include other fruit flavor drink such as Calpico, RTD tea, soda water and water

Implications

• Keys to success are new product development, brand differentiation, pricing, and distribution
• As products in each category are very similar, ability to serve sub-segments based on consumer lifestyles or specific needs would be advantage
• Green Spot should re-look at current brand image, identify new brand essence, and leverage on brand heritage (in order to lay a strong foundation to take on fierce competition and develop brand relevancy with the target)

Competitive Analysis�

Primary Competitor�Splash

Category: Fruit Juice

Key Concept

• Taste and freshness of real orange with value added of vitamin E and calcium
• อร่อยเข้ม เต็มรสส้ม

Core Target

• Soft drink switchers who are health-concerned

Personality

• Strong and active

Primary Competitor �Qoo

Category: Fruit Juice

Key Concept

• Fun drink that is delicious and refreshing
• อร่อย สดชื่น ชื่นใจ

Core Target

• Kids and teens, aged 7-15 who enjoy good company, day dreaming and living a joyful lifestyle

Personality

• Cute, optimistic, vibrant

Primary Competitor �Bireley’s

Category: Fruit Juice

Key Concept

• High quality refreshing California orange-flavor drink (guaranteed by overseas award)

Core Target

• Mass

Personality

• Old, out of date

Primary Competitor �Other Economy Fruit Juice

• Deedo – 25% juice, “รสส้ม สะใจ ดีโด้”
• Beeber – 25% juice “Everything Special”, “ไม่ใช่อะไรก็ได้ ต้องเลือกๆ”
• Green Mate – 25% juice, “อร่อยสดชื่น ถึงรสชาติ”
• J Drink – 15%, “รสส้มแท้ เกล็ดส้มจริง”

Primary Competitor �Other Economy Fruit Juice

• Tipco Tete – 25% juice and modern packaging design, “refresh life and save”
• Malee Tropical – “สดชื่นจากธรรมชาติ ดับกระหายสไตล์ไทยๆ”
• Malee Teen – 25-40% juice, “หลากรส หลากอารมณ์”
• Mizu – 30% juice with collagen from fish, “ชื่นใจ ปิ๊งจัง”

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Secondary Competitor �Mirinda

Category: CSD

Key Concept

• Intense taste, intense fun (ซ่า...สะใจ)

Core Target

• Teenagers and young adults, aged 13-22 who like to have fun and challenge

Personality

• Hip, Trendy, Fun, Adventurous

Secondary Competitor �Fanta

• Category: CSD
• Key Concept
• อร่อย ซ่า เอาไม่อยู่
• Core Target
• Teenagers aged 12-18 who love to have fun and look for something new and different
• Personality
• Young, Trendy, Fun

Secondary Competitor �Sprite

Category: CSD

Key Concept

• Freedom from thirst (อิสระจากความกระหาย)

Core Target

• Young adults aged 15-25 who are new generation with high self-confident and don’t want to be similar to others

Personality

• Active, Confident, Free-spirited

Other Competitor �Lipton Ice Tea

Category: RTD Tea

Key Concept

• Tea can do it, promoting natural refreshing
• เติมความสดชื่นให้ชีวิต / ชาทำได้ (Lipton Highland)

Core Target

• Carbonated soft drink transitioners, aged 20-25, university juniors/seniors and first jobbers who care about health but still want to have fun

Personality

• Healthy, Fun, and Confident

Other Competitor �Oishi Green Tea

Category: RTD Tea

Key Concept

• Original Japanese tea, made in Japanese way

Core Target

• Young adults and career people who are health-concerned and like good quality products

Personality

• Healthy, Japanese, in-trend

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Other Competitor �Unif Green Tea

Category: RTD Tea

Key Concept

• Quality Japanese green tea, made from top quality tea leaves

Core Target

• Young adults (focus on female) and career people who want to take good care of themselves

Personality

• Lively, cute, determined

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Amino OK

Category: Fruit Juice

Key Concept

• Refreshing, stress releasing
• ชีวิตจะเครียดไปทำไม อะมิโนโอเค

Core Target

• Teens, university students and first jobbers, aged 15-25 who are active and work hard
• Personality
• Trendy, Distinctive, Have sense of humor

Brand Objectives

• To establish a new clear brand positioning
• To refresh brand image

Strategic Task

• Position Green Spot as orange flavor fruit juice in economy fruit juice segment
• Change consumer’s perception towards the brand and differentiate itself from competition by building new and clear personality and identity
• Use health benefits from real orange juice to provide added benefits
• Non-carbonated and vitamin C

Core Target

• Male and female aged 18-25, B to C, Greater BKK and key urban cities
• Low-degree of health-concerned
• Regular drinkers of refreshment drinks, esp. low concentration fruit juice and RTD tea
• Perceiving fruit juice and RTD tea as thirst quenchers that provide healthy refreshing feeling
• Drinking CSD for ultimate refreshing feeling

Insights about Target Audience

• They are aware of changing physical condition and start to take good care of themselves; however, they are too young to take healthy issue too seriously, and there will be times when they feel tired, bored, or lazy to be “healthy” and want to indulge themselves
• They are influenced by social trend and want to be considered in- trend
• Prefer healthy products and drinking experience in convenient and trendy format
• Prefer good sweet taste to bland taste (when it comes to flavored drinks)

Insights about Target Audience

• Their lives are surrounded by friends with whom they want to feel connected and belonging, but at the same time, do not want to lose personal identity
• They are in a stage of searching for/having relationship with opposite sex; so they care about their image and appearance
• They want to use a brand that reflects who they are or want to be, so that they are not shy when drinking in public
• They have limited purchasing power, most of which will be spent on fashionable products; thus they look for value for money on other less important products

What is Green Spot for Them?

• Green Spot is an excellent option because it is deliciously refreshing and more pleasurable to drink than more concentrated fruit juice
• Green Spot provide a refreshing feeling that is comparable to drinking CSD, but Green Spot is better because it’s healthier (non-carbonated, not upsetting stomach, and has vitamin C)

Brand Essence

Brand Personality

Smart, Modern

Playful (ขี้เล่น กวนๆ),

Cool (เท่ห์)

Emotional Benefits

In-trend, Feel satisfyingly refreshed,

Not feel bad for indulging one self

Product Benefits

Delicious, thirst-quenching,

stomach soothing, value for money

Product Attributes

Refreshing Sensation

Brand Positioning

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Deliciously refreshing orange-flavor fruit juice for new gen young adults who look for satisfied refreshing feeling with healthy touch

Brand Communication

Tasty, 10% real California OJ, Natural,

Contain vitamin C, non-carbonated

Core Target

Modern M, F aged 18-25, Low-degree Health-concerned who want to start taking good care of their health

Image and Personality Reference

Sources of Market and Consumer Information

• DDB Insights Springboard
• Far East DDB research on non-alcoholic beverage, Feb 2005
• BrandAge Magazine
• Volume 6, Issue 1, January 2005
• Volume 7, Issue 3 & 4, March & April 2006
• FourP Magazine
• Volume 3, Issue 25 & 29, October 2005 & February 2006
• Volume 2, Issue 22 & 23, July & August 2005
• Marketeer Magazine
• Volume 6, Issue 71, January 2006
• Gotomanager.com
• krc.co.th
• Company’s web sites of related brands