Food & Beverage

Case Study: Leading Japanese Food Company

Situation
A 100 year old Japanese food company specializing in condiments and juices was interested in entering the U.S. juice market. The company had proprietary technology for shelf stable juices, making them fresher, more colorful, and tastier that most American-made fruit & vegetable juices. Those American companies, however, had entrenched consumer and trade positions in the U. S. and could be expected to defend those positions aggressively. Management was interested in establishing a foothold in the States without incurring the huge costs of slotting allowances and the heavy consumer support requirements associated with a traditional mass/supermarket launch.

Solution
MCAworks led research into both consumer and channel needs/issues. While consumer research indicated great promise for a Japanese juice product that promised to be healthier and more natural than U. S. based products, consumer skepticism of the naturalness and healthiness of the company’s juices would have to be overcome. MCAworks recommended that the company initially distribute the juice line through the rapidly-growing natural food store channel, where slotting and distribution costs would be noticeably lower than in the mass channel and, more importantly, where the “implied endorsement” of distribution through natural outlets would reduce the need and shorten the time required to establish the brand’s healthy credentials.

Results
The company’s juices were successfully introduced into the natural channel within the U.S., now represented by sixteen SKU’s. Consumer research indicates consumer acceptance and belief in the natural/health benefits of a Japanese juice product. Expansion into conventional mass/supermarket channels is now underway.

Contact John Rosen for more information.