Juicy Fruit Egypt (15 points)

Egypt has a recognized potential of processing fruit juices, due to the availability of fruit during off seasons, and through direct cost advantages. The sector has grown from $713,000 to $13.5 million in six years.

Juicy Fruit is an Egyptian company founded in 2012 supplying various juices to several B2B customers ranging from coffee shops to restaurants who prefer to take the juices in bulk containers to serve them to their clientele and are mostly concerned about the basic price of the juice. Some outlets like, On the Run, Starbucks and other similar outlets prefer to have the juices bottled under their own brand name in attractive consumable bottles with attractive bottles and labels designs filled with fresh juice of high quality.

Juicy Fruit is sacrificing a big portion of their profit margin to remain competitive in supplying their B2B customers.

General consumer reports on the other hand show a considerable potential for growth in the fresh bottled juice market, which represents, as indicated by the report, a golden opportunity for new brands to grow. However, for Juicy Fruit to create their own bottled brand, they need to give up on their bulk Juice customers and build their own production and distribution network.

Case Questions

1. From the case above, identify and describe two distinct market segments in the juice market and identify the factors (attributes) used to distinguish between both segments (5 points)
2. Please identify the different departments which might be available within juicy fruit (it is essential that you describe the departmental activities in details). (5 Points)
3. If you were in the place of juicy fruit managers would you pursue the fresh bottled market opportunity and why. (5 Points)