Cherrygood Case Study: Using product differentiation to achieve success within the dwindling UK juice and smoothie market
Amid a dwindling UK juice and smoothie category, Cherrygood has achieved notable market success following its launch in 2009. In its first year of operation the brand reported a turnover of £1.2m. Through its taste and specific health benefits, Cherrygood have formed a point of product differentiation and been able capitalize on an untapped niche within the UK soft drinks market.Features and benefits
- Grow sales of juice and smoothie products by learning how consumer’s health and sensory needs can be leveraged to enhance brand credibility. * Stimulate ideation and invigorate brands by learning from Cherrygood’s recent success in the fruit juice segment. * Gain a competitive edge in a dwindling UK juice and smoothie category by uncovering the core needs of today’s consumers.
In the wake of the economic downturn, UK consumer down-trading has been rife across the consumer packaged goods (CPG) industry. As a result, the UK juice and smoothie segments has declined at compound annual growth rates (CAGRs) of 1.7% and -20.4% respectively, as shoppers continue to switch to cheaper drinks and soft drink sub-categories. Amid a dwindling UK juice and smoothie category, Cherrygood reported a turnover of £1.2m for its first 12 months following its launch. Given the fact that smoothie brand Innocent achieved just £200, 000 in sales in its first year, the scale of Cherrygood’s success is evident. The use of Montmorency cherries has enabled Cherrygood to boast a range of unique and superior health benefits, from muscle recovery in athletes to alleviating gout. As a result, Cherrygood has been able to tap into the consumer trend towards "positive nutrition" by providing consumers with an affordable, yet novel, health-focused beverage.Your key questions answered
- How has UK consumer down-trading impacted on the UK juice and smoothie category following the recession? * How has Cherrygood formed a point of differentiation in the UK juice and smoothie market, and in doing so gained a competitive edge? * What are the key consumer trends shaping purchasing behaviour in the UK soft drinks market?
Table of contents
Against a backdrop of decline in the UK juice and smoothie category, Cherrygood has achieved significant success
The UK fruit juice and smoothie segments have fallen foul of a more cost-conscious consumer base in recent years
Cherrygood has bucked the declining trend to become the fastest growing new juice drink within the UK juice and smoothie category
The recent success of Cherrygood stems, in large part, from the brand's ability to tap into the consumer trend towards "positive nutrition"
Consumer demand for food and beverage products that accommodate their health needs is one of the most prominent trends shaping the UK soft drinks market
The popularization of superfoods over recent years is reflective of UK consumers' growing interest in the health benefits attributed to nutrient-rich products
Cherrygood offers consumers a functional drink product with added health benefits above and beyond all other comparable fruit juices
Despite being a "healthy" juice, Cherrygood has ensured not to compromise on the taste of the product
By touting health benefits that transcend the generations and aligning itself with an array of diverse drinking occasions, Cherrygood has been able to gain widespread consumer appeal
Cherrygood has targeted younger consumers by positioning itself as an ideal drink for athletes in aiding muscle recovery
Cherrygood also claims to relieve pain caused by gout and in doing so targets older consumers
To reinforce its positioning as a family brand, Cherrygood has aligned itself with multiple different drinking occasions
Cherrygood is now well positioned to sustain momentum and grow the company’s core UK business through
A recent line extension has enabled Cherrygood to build its brand appeal among today's calorie-conscious UK consumers
Cherrygood has started to expand into new European territories; however, Datamonitor's data suggest that some regions offer greater market potential than others
Conclusions and recommendations
Case studies series
Ask the analyst
The just-drinks office is currently: Open
Office opening hours
The office is closed during weekends.
Current time at just-drinks headquarters: 1:23pm (Monday, 20 May 2013)