NAKED JUICE Offers 100% fruit juices and fruit juice smoothies Asmussen, Brown, Hocking, and Orr JOUR 302 (Image: “Naked Juice,” n.d.) Executive Summary Table of Contents The research in this report was gathered and compiled by Anthony Brown, Ashley Hocking, Madison Orr, and Vanessa Asmussen in order to better understand the Naked Juice product and help predict changes and improvements to the product and its advertising Cover page.......................................................................1 Executive Summary..........................................................2 and an ethnography with 6 participants. through demographic and psychographic research. This research report also provides an Industry and Company Overview....................................4 Direct and Indirect Competitors.....................................7 Advertising...................................................................8-10 Target Audience........................................................11-13 Product Brand Image.....................................................14 (Image: “Naked Juice,” n.d. 2.) 2 3 (Image: “Naked Juice,” n.d. 3.) Industry Overview The Naked Juice product falls into the fruit and vegetable processing industry (Colbert, 2015), while PepsiCo Inc., as a parent company, falls into the soft drink manufacturing industry (“PepsiCo Inc.,” n.d.). In the fruit and vegetable processing industry, companies freeze, can, dehydrate and pickle fruits and vegetables in order to preserve them. Fourteen hundred companies, including PepsiCo Inc., in the United States are a part of the fruit and vegetable processing industry. These companies have a combined annual revenue of 70 billion dollars (“Fruit and Vegetable Processing: Industry Description,” Product Information Naked Juice is marketed as a healthy, all-natural drink with no added sugar or preservatives. Naked - all net sales (“Fruit and Vegetable Processing: Financials,” n.d.). There are many trends in the fruit and vegetable processing industry, such as private-label products, - landscape of the fruit and vegetable processing industry is driven by food consumption, which increases the demand. However, the competitive landscape of the fruit and vegetable processing industry is also driven by food consumption, which increases the demand. - products are commodities subject to intense price competition. Companies compete is concentrated: the 50 largest companies generate about 70 percent of revenue, (“Fruit and Vegetable Processing: Business Trends,” n.d., p. 1). Company Overview came a division of “Ultimate Juice Company.” Sales and distribution increased dramatically and as a result, the name was changed back to “Naked Juice Company.” In 2005, the company opened 2 new distribution centers in Seattle, Washington and Sacramento, California. A year later, PepsiCo Inc.’s acquired Naked Juice. PepsiCo Inc. currently owns and makes all Naked Juice products (Nong, 2015). in grocery and convenience stores, such as Dillons, HyVee, Walgreens, Walmart and Target (“Naked Juice Store Locator,” n.d.). PepsiCo Inc.’s acquisition of the Naked Juice brand marked a shift towards its ownership of food and beverage brands. PepsiCo Inc. also offers similar and dissimilar products, such as other juices, sodas, tea, energy drinks and sports drinks. These products include Tropicana, Dole, Gatorade, Brisk, Amp, Izze, Mountain Dew, etc. (“PepsiCo Inc.,” n.d.). year totaled 66.68 billion dollars. The one-year sales growth was 0.40 percent, and the one year net income growth was 3.37 percent. The total assets equaled 70.51 billion dollars while the market value is 138.37 billion dollars (“PepsiCo Inc.,” n.d.). Naked Juice, being a part of PepsiCo Inc., has contrib(Image: “Naked Juice,” n.d.4.) 4 5 Features & Benefits Direct Competitors Odwalla parable and the products are similar. Odwalla Inc. is an American company Naked Brand Name A recognizable brand that consumers continue to purchase. Only nationally distributed beverage company to use rPET Reduces waste consumers to choose between the two brands (“Odwalla,” n.d.). (Image: “Odwalla,” n.d.) Bolthouse Farms shakes, and salad dressing. Both companies are dedicated to helping (“Bolthouse Farms,” n.d.). Uses natural light and solar panels Environmentally conscious (Image: “Bolthouse Farms,” n.d.) Evolution Fresh Healthier compared to competitors Some smoothies are created with added boosts Gives consumers more energy (Image: “Evolution Fresh,” 2015) Indirect Competitors Handheld container Portable Gatorade 3 types (veggies, juices, smoothies, coconut water) Available at most local grocery and convenience stores Accessible and easy to purchase places, such as local grocery stores and supermarkets (“Thirst Quencher,” (Image: “Gatorade Cool Blue,” 2013) Vitamin Water (Image: “Energy,” n.d.) User-friendly 6-8.) 6 - (“Vitamin Water,” n.d.). 7 Advertising Advertising We used the primary research method of textual analysis in order to better understand the advertising message that Naked Juice wants to communicate to its target audience. A textual analysis involves carefully analyzing and observing each advertisement individually, and then compiling elements of Naked Juice advertisements on social media provide a large portion of the advertisements that audiences are exposed to, with one of the biggest advertising channels being the juice company’s fan page on Facebook called “Naked Juice.” The fan page reaches over 891,000 Facebook users (“Naked Juice,” n.d.). People who use Facebook at least once a week are more likely to be females who are 35 to 54 years old. The income of 64 percent of Facebook users is less than 50,000 dollars, with 50 percent of users having some college experience. The majority of users don’t have children who are under 18 years of age (“Black Consumers and Social Media,” May, 2014). Our textual analysis included evaluating the colors, fonts, style, size, information, clarity and overall message of the advertisements from the company’s Facebook page. According to an online conversation with Jennifer Crawford, a Naked Juice employee, Naked Juice uses many channels to advertise. However, with growing social media use, online advertisements are viewed by more people (V. Asmussen, online communication, June 18, 2015). Some of the advertising channels used by Naked Juice include magazines, such as Fitness and Shape, billboards, television, and social media networks, such as Facebook, Instagram and Twitter (Wong, 2010). Below are exam- (cont.) are likely to see the advertisements are Facebook users who “like” Naked Juice or search for the brand. The advertisements on Facebook provide a large portion of the advertisements that audiences are exposed to. The fan page reaches over 891,000 Facebook users (“Naked Juice,” n.d.). Naked Juice’s advertising messages are for current consumers of the product. The advertisements they publish are simple and do not contain a lot of information. Some advertisements do not even have a bottle of juice to let the possible consumer know what the product is. The Naked Juice advertisements typically had one image paired with a slogan or quote. The main message through the advertisements was that the product is healthy. The advertisements are trying to convey to the viewer that they, too, can be healthy if they drink Naked Juice.The advertisements show non-health-conscious people that drinking this juice and being health-conscious are fun. Two of the advertisements show people what they can accomplish if they drink Naked Juice, such as climbing mountains or having a lot of friends. The viewer is supposed to idolize the characters in the advertisement and buy Naked Juice to be more like them. The lack of information included in each Naked Juice advertisement was surprising. The Naked Juice logo was used in each advertisement, but no additional information was offered. Individuals who have never tried Naked Juice have relatively little information to go on in order to make product-purchasing decisions. (Image: “Broaden Your Veggie Horizons,” 2015) A life attitude that Naked Juice’s target audience has is being health-conscious because people who are health-conscious watch what they put into their bodies. Naked Juice’s ingredients are all-natural, which means healthy people are more likely to consume this product. The “Get Naked. Get Boosted.” advertisement shows the fresh fruits that are in the bottle of juice. Health-conscious people eat many fruits and vegetables throughout the day, so showing the fruit on the advertisement shows the viewer the simplicity of the juice. (Image: “Life is Either a Daring Adventure or Nothing,” 2013) advertisement, “Time to Veggie Out,” the characters were fun-loving and positive. The advertisement showed that positivity was contagious and being around those portrayed in the advertisement gives the impression that you, too, can be happy and positive when you consume the product. (Image: “Naked Juice,” n.d.9.) (Image: “Time to Veggie Out,” 2014) 8 (Image: “Naked Juice,” n.d.10.) 9 Advertising (cont.) Another core value of the target audience is believing in yourself and trying new things. The “Life is Either a Daring Adventure or Nothing” advertisement makes the viewer believe in himself or herself Target Audience Consumer Demographics - The overarching message conveyed through each of the advertisements is that Naked Juice is healthier when compared to competitors. Three of the advertisements were focused on showing the is the Naked brand name. Naked Juice is a recognizable brand that consumers continue to purchase. The advertisements did not have much additional information, but people know about it because it had the Naked brand name on it. and Social Media,” 2014). tainers, so it is portable. Three of the advertisements showed that the bottle was the perfect size for created with added boosts, which give consumers more energy. If Naked Juice wants to gain more consumers, they need to make the advertisements more informative. None of Naked Juice’s advertisements had the company website on them or told the viewer where they could purchase the product. Another idea might be putting a picture of the back of the bottle on an advertisement, so people know exactly what is in each juice before they purchase it. Naked Juice should add more details to its advertisements, so consumers can make informed decisions. Consumer - Product Relationship Method. Participant Summary. pants were students. The participants were not in their natural environment because Naked Juice is which to observe our participants that was similar to where they would consume products like Naked Juice. What We Did. them several questions regarding their demographics, psychographics, and experience with the product. (Image: “Naked Juice,” n.d. 12.) (Image: “Naked Juice,” n.d.11.) 10 11 Target Audience Target Audience (cont.) Consumer - Product Relationship (cont.) Consumer Psychographics Discussion. Through our observations, we learned that each individual who purchases Naked Juice - commented that the beverages were tasty and healthy. - - - the-go. use. These bottles are also recycled and turned into other bottles over and over. Naked Juice could improve its product by adding instructions displaying “shake well” on the bottle. All the participants typically used Naked Juice with the same steps. Most participants swirled the lid on the bottle. (Image: “Naked Juice,” n.d. 13.) 12 (Image: “Naked Juice,” n.d. 14.) 13 Product Brand Image In the minds of consumers, Naked Juice is viewed as a healthy, all-natural drink. There are not many fruit and vegetable juices that can say they are all-natural. When conducting the ethnography, the participants who drink Naked Juice regularly said that they are loyal to the brand. When a consumer wants an all-natural juice, there are not too many to choose from. Naked Juice has built up consumer loyalty by staying all-natural and a healthy alternative to other juices, soda, and energy drinks. Along with brand loyalty, Naked Juice also has top of mind awareness for a majority of consumers. When Naked Juice’s brand image is lifestyle. Naked Juice portrays people to be health conscious and that they watch what they put into their bodies. From the previous advertisements, they showed pictures of the fresh fruits and vegetables that are in each bottle. The advertisements also showed that consumers of Naked Juice believe in themselves and are up for trying new things. The optimism and the juice. The Future of Naked Juice and Advertising Based on the ethnographic study we conducted, several changes could be made to better the Naked Juice product. Some participants agreed that while the juice was healthy, it did contain a large amount of natural sugar. Based on this reaction, one change that could be made to the product could be to include more vegetable ingredients to balance out the natural sugars from the fruits, making it slightly healthier. The consistency of the juice was also an issue that arose from studying the participants. While one participant did not like the thick consistency, another wished the juice contained more pulp. Based on these observations, the juice could be processed in such a way that it was a lower viscosity, while well” to the bottles could also help with the consistency of the juice. The price of the juice seemed to be a common concern among our participants. Lowering the cost of the Naked Juice would be an improvement for most consumers. People would be more willing to buy the product and recommend it to others if the high cost was not such an issue. While improvements such as the price would help entice people to purchase the product, improving the consistency and ingredients would encourage consumers to continue to purchase the juice. Even adding the small additions, such as “shake well” would better the consumer’s experience and help Naked Juice be a more reliable product. Different steps could be taken to improve Naked Juice’s advertising messages. One of these improvements could start with the target audience. While it is a good idea to target young, health-conscious women, targeting a more diverse audience will help to reach a broader spectrum of consumers and change the attitude that Naked Juice is primarily a feminine beverage. For example, men, children and older people could be included in some of the advertisements that are on the company’s Facebook page. Increasing this target audience would increase product sales. Another way to improve the advertisements would be to include more product information on the advertisements, such as the ones that are displayed on the Naked Juice Facebook page. While these advertisements reach many people, very little product information is included on most of these images Most advertisements contain the Naked Juice logo, but for some, this is the extent of the product’s information (“Naked Juice,” n.d.). Adding information such as ingredients, company information, and available locations would help readers be more informed about the product, therefore becoming more inclined to purchase it. Naked Juice could also improve their advertising strategies by displaying advertisements elsewhere, such as on television. Many of the company’s advertisements are seen on social media or magazines, but seeing the juice advertised as a commercial on television could reach a larger range of people who may not typically read magazines or follow Naked Juice on social media. (Image: “Naked Juice,” n.d.16.) 14 15 References PepsiCo, Inc. (n.d.). Hoovers, 00 Black Consumers and Social Media. (2014, May). Mintel, (Image: “Naked Juice,” n.d.18.) Starbucks Corporation, Vitamin Water. (n.d.). Vitaminwater.com, Bolthouse Farms. (n.d.). Bolthouse Farms, Wong, E. (2010, Oct. 1). Naked Juice Ad Tells Naked Truth. Adweek, Retrieved online on: Cohn, B. Naked Juice Ad Campaign. (2011, May 2). Slideshare, naked-truth-107838 Image References Comic Sans Gets Naked. (2010, May 10). Doejo, Bolthouse Farms. Bolthouse Farms, Starbucks Corporation, The Naked Juice Company, Fruit and Vegetable Processing: Financials. (n.d.). Hoovers, view=true Fruit and Vegetable Processing: Industry Description. (n.d.). Hoovers, Retrieved online on view=true Energy. Vitamin Water, Evolution Fresh. Starbucks Corporation, Gatorade Cool Blue. Big Boy Concessions, Get Naked. Get Boosted. Gatorade.com, Naked Juice. (n.d.). Facebook, (2013, Naked Juice. (n.d.). Grocery.com, Walmart.com, Naked Juice. NakedJuice.com, Naked Juice Store Locator. (n.d.). Naked Juice.com, Naked Juice. NakedJuice.com, Nong, S. Naked Juice: The History. (2013, July 26). Blogspot, Naked Juice. NakedJuice.com, Naked Juice. NakedJuice.com, Odwalla. (n.d.). Odwalla Inc., The Naked Juice Company, Naked Juice. NakedJuice.com, he Naked Juice Company, Naked Juice. NakedJuice.com, (Image: “Naked Juice,” n.d.17.) 16 17 Naked Juice. NakedJuice.com, http://www.nakedjuice.com/our-products/juice/protein-zone-mango Naked Juice. NakedJuice.com, http://www.nakedjuice.com/our-products/juice/protein-zone-double-berry Naked Juice. NakedJuice.com, http://www.nakedjuice.com/our-products/juice/green-machine Naked Juice. 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