POM Wonderful case study: creating sustainable growth in the superfruits market

POM Wonderful case study: creating sustainable growth in the superfruits market

Introduction

This report on POM Wonderful forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the brand has succeeded in the market and how this premium juice could maintain its competitive edge amid the economic downturn.

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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
The rising awareness of health food and drink has driven relevant products to tremendous growth 2
The global market of food and drink products with health benefits has been expanding as consumers take the importance of a healthy diet on board 2
The rising attention to fruit and vegetable intake has fueled the growth of juice drinks, particularly premium fruit juices 3
The so-called "superfruits" have caught on to the health trend, at the same time providing sensory appeal 4
Pomegranate is one of the shiniest stars among superfruits 5
POM Wonderful: the drink has proven to be a success 7
The juice drink became a hit and opened the path to wide recognition of the fruit among US consumers 7
Extended product line also proves the success 7
Where it all went right: analyzing the success of POM Wonderful 8
Reaping the fruit of scientific researches and backing on natural antioxidants: building consumer trust 8
POM Wonderful keeps its marketing simple with easy to understand messages and no jargon 10
Stay focused: POM's product extensions are still based on the antioxidants derived from pomegranate 12
POM has successfully convinced consumers that it is worth the premium price 13
Facing uncertainty: implication of the economic downturn 13
Consumers are tightening their belts, but this does not mean the end of the health product boom 13
The drink is also hedging itself in the time of uncertainty 14
POM faces mounting challenges from competitors, but continued investment in marketing could help it retain its strong branding 15
APPENDIX 16
Case study series 16
Methodology 16
Secondary sources 16
Further reading 17
Ask the analyst 17
Datamonitor consulting 17
Disclaimer 17
List of Tables
Table 1: Functional food and drink market value in Europe, the US and Asia Pacific, by country, 2002-2012 (US$ millions) 3
Table 2: Global market value of selected soft drinks by category, 2002-2012 (millions of US Dollars) 4
Table 3: Number of new products with a pomegranate flavor and products with pomegranate as an ingredient from selected categories, 2002 - 2009 (SKUs) 6
Table 4: Consumer survey: trust in health and nutritional claims made by food and drink manufacturers, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 9
Table 5: Consumer survey: importance of products recommended by a professional body on consumers' choice, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 10
List of Figures
Figure 1: Consumers' attitudes and behaviors towards diet are influencing manufacturers to launch products with a healthier image 2
Figure 2: Products with a pomegranate flavor and/or made with pomegranate have been on the increase over the past seven years 6
Figure 3: Current product lines of POM Wonderful includes fruit juice, tea, coffee, supplements and fresh fruit produce 8
Figure 4: The message in POM Wonderful's advertisements is simple to understand by consumers 11
Figure 5: Consumers are showing interest in food labeling but are deprived of time to pay attention to every detail 12
Figure 6: The RTD tea drinks launched after the juice drinks still use "antioxidant" in the copy and carry similar health messages 13
Figure 7: Marketing campaigns from Welch's and Innocent also focus on the natural goodness from fruit 15