Lemonade Lorina on the us market - marketing analysis

Résumé du document

We have decided to study the potential market for the French product Lorina's lemonade on the American market.

The French lemonade maker has developed authentic lemonades made from spring sparkling water which is totally in line with the changing needs and behavior of customers.
After being successful in France, they began to export Lorina's products in the United States in 1996.

They are positioned on the market for sodas, which are defined as sparkling flavored drinks.
Therefore, on the American market the company is up against important multinationals like Coca cola, Pepsi and Cadbury-Schweppes, which are situated on the same segment.
Besides it has to deal with American legislation which is poised to implement taxes on sweetened drinks to fight against obesity.

However the company is relatively well established on the American territory given that the product is distributed in 450 Sam's club stores which are retails warehouses owned by Walt-Mart.

Besides it is an important success thanks to the fact that it is made in France, and because of its classy French packaging. Indeed they made a profit of 5.5 millions of Euros in the United States.

Extraits

[...] The water used to make the limonade comes from a spring below the factory (30 meters feet deep) pure water gushing from the Vosges Mountains sandstone, which is particularly fresh. Naturally flavored, this sweet, traditional French sparkling beverage has always been popular for its simple qualities, enjoyed by kids & parents alike. Ingredients Carbonated water, sugar, natural flavor, citric acid. A century after the beginning of its production, Lorina was named an "outstanding beverage" by the National Association of Specialty Food Commission at the 1997 New York Fancy Food Show, the same year it was first introduced in the U.S. [...]

[...] With the United States, first market with export, the system of closing, unknown factor on the other side of the Atlantic, made these bottles (sold 5 dollars) of the collector's items Notes: Soda includes domestic sparkling water. Flavored non-carbons include sports, energy, and fruit drinks; and iced tea. Bottled water includes sizes less than or equal to 1 gallon. Total units sold were 171 billion in 1997, and 215 billion in ll2005. Derived by the Container Recycling Institute using data from the Beverage Marketing Corporation. [...]

[...] Taxes on cigarettes can not be compared to the beverages'. In deed the case for sweet drinks is more complicated. The tax included only sweetened and carbonated beverages. More recently, the definition has expanded to incorporate non-carbonated beverages that contain sweetener and are less than at least 50% juice. It can be a fine and seemingly arbitrary line. The second stumbling block to taxing sweet beverages involves their universality. However, sodas, fruit “flavoured” beverages, and sport/energy drinks have earned no such stigma. They're everywhere, and the woman drinks them. [...]

[...] So this company leans on different kind of products. We can make order only via internet, and the delivery are specific to the United States. This is the competitor number one because: - it is a small company - they promote an image of French traditional habits and tastes. The advertising show and old picture that prove that the brand exist for a long time and that it keep going on today. The packaging is almost the same as Lorina's. [...]

[...] The Walt-Mart group decides in 1998, to distribute the products during all the year in 450 stores. In order to become leader on this product the American group does not hesitate to supply and market Lorina in great quantity. The bottles are delivered by boat (at the beginning of the wearing of Antwerp) and it is Wal-Mart which manages the logistics of distribution in the United States. In 2001, the Lorina ranges and Geyer Traditional are marketed in the United States in 2500 points of sale. [...]