Technical University Hamburg-HarburgInstitute of Marketing and InnovationProf. Dr. Christian LüthjeProject Seminar IIWinter Semester 2010/11
Novel-Lemonade
Market analysis for organic lemonades and recommendations for the
market launch of a B12 enriched organic lemonade
Authors:
Martin Brücher
Date:
27.01.2011
Executive Summary
This report presents the key findings and outcomes from the Innovation Marketing
project; which aims at the analysis and determination of the market potential for the
Novel-Lemonade, an innovative drink developed by Benjamin Bürgel. This report also
intends to provide useful recommendations for a successful market entrance
strategy.
To achieve the project goals, a situation analysis was executed gaining insights in
the market, competition, and customers. Furthermore, the market analysis indicates
high market growth of 35% for the organic lemonade segment, which also
corresponds to rising consumption trends towards health and sustainability. The
organic lemonade market is, in addition, highly competitive; consisting on the
dominant players and a number of small start-up companies. Following the latter, the
competition is given mainly amongst direct competitors such as Bionade and Now,
but also between wider competitors like Aloha and Vitamalz.
Compared to its competitors, the novel lemonade has a high competency in its
healthy benefits. Hence, the main target customers are health and sustainability
conscious consumers aged above 25, who demand quality and pleasure, and are
willing to pay more for premium products.
The blind tasting study serves to determine the lemonade’s strengths and weakness
with regards to customer expectation and satisfaction of the taste and smell. The
results show various areas of improvement; including the strong malty smell and the
sweet and unbalanced taste.
The section concerning the marketing mix provides essential recommendations for its
components, namely product, place, price, and promotion; based on the key findings
of the situation analysis. Healthiness and indulgence are suggested to be the key
positioning factors for the product itself and its branding. Increasing the fruitiness and
reducing the malty taste can improve the flavor. For cost efficiency reasons, standard
reusable glass bottles and standard labels should be used.
Cooperation with the “Verband korrekter Getränkehersteller e.V.” and its distribution
network helps placing the product; the same as to have the contracted brewery
located in the middle of Germany and, to start the actual sales in Hamburg. The
benchmarking analysis against the established competitors and a calculation of the
estimated pricing structure set the recommended retail price at 0.79€ for a 0.33L
bottle and at 0.99€ for a 0.5L bottle.
In addition, this report provides a low cost proposition for promotion channels; such
as the internet and press. Places such as weekly organic markets, trade fairs and
university are interesting opportunities to promote the product.
Finally, the last section of the report provides key next steps as a roadmap to
successfully bring the Novel-Lemonade to the market.
I
Table of Contents
List of Abbreviations............................................................................................... III
List of Figures.......................................................................................................... IV
List of Tables ............................................................................................................ V
1 Introduction .......................................................................................................... 11.1 Goal of this report .......................................................................................... 11.2 The Founder .................................................................................................. 11.3 The Product ................................................................................................... 2
2 Situation Analysis ................................................................................................ 42.1 Market Analysis.............................................................................................. 4
2.1.1 Market growth and size ....................................................................... 52.1.2 Market Trends ..................................................................................... 62.1.3 Key success Factors ........................................................................... 72.1.4 Summary ............................................................................................. 7
2.2 Market Potential ............................................................................................. 82.3 Competitive Analysis...................................................................................... 9
2.3.1 Definition of Competition ..................................................................... 92.3.2 Competitive Products .......................................................................... 92.3.3 Competitive Companies .................................................................... 102.3.4 Selection Process.............................................................................. 112.3.5 Further Competitors .......................................................................... 14
2.4 Target Customer Analysis............................................................................ 162.4.1 Main Target Group: Vegetarians, Vegans, and LOHAS ................... 162.4.2 Secondary Target Group: Young Customers (aged below 25).......... 18
3 Blind Taste Study ............................................................................................... 193.1 Products....................................................................................................... 193.2 Survey.......................................................................................................... 203.3 Study............................................................................................................ 203.4 Results......................................................................................................... 213.5 Summary...................................................................................................... 21
4 Marketing Mix ..................................................................................................... 234.1 Product......................................................................................................... 23
4.1.1 Product strategy ................................................................................ 234.1.2 Packaging.......................................................................................... 254.1.3 Summary ........................................................................................... 27
4.2 Place............................................................................................................ 284.2.1 Beverage distribution in Germany ..................................................... 284.2.2 Points of sale..................................................................................... 294.2.3 Location of production and sales area............................................... 33
II
4.2.4 Distribution system............................................................................ 354.2.5 Summary ........................................................................................... 36
4.3 Price............................................................................................................. 364.3.1 Market prices..................................................................................... 364.3.2 Production ......................................................................................... 374.3.3 Costs and profit ................................................................................. 38
4.4 Promotion..................................................................................................... 39
5 Conclusion.......................................................................................................... 445.1 Self Analysis ................................................................................................ 445.2 Recommendations ....................................................................................... 44
6 List of References .............................................................................................. 45
7 Appendix ............................................................................................................. 497.1 Details about Vitamin B12............................................................................ 497.2 Competitive products ................................................................................... 547.3 Blind Tasting Questionnaire......................................................................... 577.4 Blind Tasting Comments .............................................................................. 587.5 E-mail contact: Ökotest................................................................................ 58
III
List of Abbreviations
ADHD Attention Deficit Hyperactivity Disorder
AfG Alkoholfreie Getränke (non-alcoholic beverages)
BK Bionade Kräuter
EU European Union
F Feminine
FMCG Fast Moving Consumer Goods
FMSG Fast Moving Sustainable Goods
GFK Gesellschaft für Konsumforschung
LOHAS Lifestyle of Health and Sustainability
LPG Liquefied Petroleum Gas
M Masculine
N/A Non-Applicable
NL Novel-Lemonade
NMI Natural Marketing Institute
VEBU Vegetarierbund Deutschland
WAFG Wirtschaftsvereinigung Alkoholfreie Getränke e.V.
IV
List of Figures
Figure 2-1: Sales percentage of beverage industry in Germany................................. 4
Figure 2-2: Non-alcoholic beverages.......................................................................... 5
Figure 2-3: Portfolio of main competitors.................................................................. 13
Figure 2-4: Age distribution of lemonade buyers in Germany................................... 17
Figure 4-1: Beverage distribution in Germany .......................................................... 29
Figure 4-2: Price estimation for the contracting brew with Holsten AG..................... 37
Figure 7-1: Table for the Comparison of competitive products ................................. 56
Figure 7-2: Table of the Blind-tasting questionnaire ................................................. 57
V
List of Tables
Table 1-1: Products of fermentation with different organisms..................................... 3
Table 2-1: Summary of criteria used for the calculation of the “Healthiness value” .. 12
Table 4-1: Wholefood supermarket chains in Germany............................................ 31
Table 4-2: Summary of points of sale ....................................................................... 33
Table 4-3: Sizes of breweries in Germany................................................................ 34
Table 4-4: Prices of competitors for retailers and customers (0.33L bottles) ............ 36
Table 4-6: Options of promoting with alternative advertising channels..................... 42
Table 7-1: Recommended Dietary Allowances (RDAs) for Vitamin B12................... 50
Table 7-2: Selected Food Sources of Vitamin B12 ................................................... 51
Table 7-3: Summary of competitive products ........................................................... 54
Table 7-4: Comments reported in the dedicated boxes of the questionnaire............ 58
1 Introduction
1
1 Introduction
1.1 Goal of this report
The goal of this report is to determine the possible market potential of the innovative
non-alcoholic beverage product of Benjamin Bürgel and to give a recommendation
about how to enter the market successfully. Therefore a marketing concept is
developed - based on conclusions drawn from the market situation - containing
information about the product, the price, the place and the promotion.
This report is carried out in the framework of the “Project seminar II – Innovation
marketing” in the winter term of 2010/2011 at the Institute of Marketing and
Innovation of the Technical University Hamburg-Harburg. The head of this Institute is
Prof. Dr. Christian Lüthje, the project is mentored by Stephanie Toth.
1.2 The Founder
1 Introduction
2
1.3 The Product
What is the Novel-Lemonade?
The traditional concept of lemonade consists of a lemon-flavored beverage, typically
made from lemons (citrons), sugar and water. However, in recent times the name has
been adopted to refer to different types of beverages. The French term lemonade
has come to mean “soft drink” in many countries, regardless of the flavor.
The Novel-Lemonade is also not a lemon-flavored beverage, yet it is produced form a
natural resource. In the case of the product for this study, the natural resource is
barley. The Novel-Lemonade is carbonized, acquiring this characteristic from the
process of fermentation to which the barley is subject to produce the lemonade drink.
And finally, the Novel-Lemonade is naturally enriched with vitamins and flavonoids,
which are indispensible for the optimum performance and health of the human body.
What is fermentation?
Fermentation is an anaerobic (in absence of oxygen) process present in nature.
During this process, complex molecules are oxidized to produce an organic
compound.
The primary industrial advantage of fermentation is the conversion of grape juice into
wine, barley into beer and carbohydrates into carbon dioxide to produce bread. It is
to mention that fermentation serves other general purposes:
� The enrichment of the diet trough the development of a variety of textures,
aromas and flavors;
� The preservation of important amounts of nutrients by means of lactic acid,
ethanol, acetic acid and alkaline fermentations;
� The enrichment of the food substrates with proteins, amino acids, essential
fatty acids and vitamins;
� And detoxification.
1 Introduction
3
In brewing, fermentation typically involves conversion of carbohydrates to alcohols
and carbon dioxide or organic acids, using yeasts, bacteria or a combination of both.
Nonetheless, brewing specifically refers to the process of steeping.
What drinks can be produced out of fermentation?
As mentioned before, fermentation is mainly utilized to produce alcoholic beverages,
such as wine or beer. Nevertheless, depending on the organism employed in the
fermentation process different products can be obtained from the brewing process.
The table below summarizes some of the products associated to a specific type of
organism employed in the fermentation process.
Table 1-1: Products of fermentation with different organisms
Commercial Product Organism Product of fermentation
Beer & Wine Saccharomycescerevisiae Alcohol
Rivella Lactobacillus reuteri Lactic acid
Posca Acetobacteraceti Acetic Acid
Bionade Gluconobacteroxydans Gluconic Acid
Source: Own representation
However, these are not the only organisms that can be used in the process of
fermentation and this is where our product stands. The addition of streptomycin as
the organism present in the fermentation produces, between others, Vitamin B12,
which is indispensible for the proper function of multiple activities in the body. For
further information about B12 please see the appendix.
What are the advantages of the Novel-Lemonade over other lemonades?
2 Situation Analysis
4
2 Situation Analysis
This chapter provides information about the current situation of market, competitors
and target customers of the Novel-Lemonade.
2.1 Market Analysis
By definition, lemonade is a “non-alcoholic beverage”, in case of the German
beverage industry this accounts for 42% of the sales in this segment
(Getränkeindustrie, 2007).
Figure 2-1: Sales percentage of beverage industry in Germany
Source: (Getränkeindustrie, 2007)
This general group contains all beverages that contain less than 0.25% alcohol, are
in general a mixture of water with juices, sugar and aromas and are often carbonated
(Dr. Lassek, 2008). Figure 2-2 shows the variety of drinks that are contained in this
drink-category. However, the differentiation between the single product groups in that
category is often blurry.
35%
42%
14%
5% 4%
Sales percentage of the beverage industry in 2006
Beer Non-Alcoholic Spirits Wine Others
2 Situation Analysis
5
Figure 2-2: Non-alcoholic beverages
Source: Own representation in dependence on (Zarnkow, et al., 2010)
2.1.1 Market growth and size
The German soft drinks market is large but fairly mature. However, the market has
not shown any signs of contraction. The value of soft drink market is projected to
stagnate for the next five years, neither growing nor shrinking to a great extent
(Business Monitor International, 2008). However, the particular sector that is of
highest growth is the ‘new segment’ which offers healthy benefits for consumers. This
segment includes energy drinks, vitamin water, oxygenated water, smoothies, and
organic lemonades. It accounts for almost one-fifth of the total non-alcoholic
beverage sales. According to GFK, the growth for this new segment is 35% per year
(Axel Springer, 2009). From the information available, we estimate the market size of
Bio-lemonade to be around 60 Million Euro or 0.8% of the non-alcoholic drink market
(7.2 billion Euros). For the Novel-Lemonade which offers functional benefit of vitamin
B12, it could attract the potential customers who are vegetarian or vegan.
Vegetarians are estimated to be 7.38 million, which is 9% of the total population of
Germany (Institut Produkt und Markt, 2009).
Considering the market share for organic lemonades, the major player is Bionade,
which had a market share of 43.9% in 2007, and Voelkel, the company that produces
BioLimo accounts for 41.3% of the market (BioVista, 2007). The organic market is
highly competitive, with the major players mentioned previously and a wave of small
start-up companies. The in-depth analysis of competitors can be found in section 2.2.
Non-alcoholic beverages
Juices Smoothies Mineral water
Bitter lemonades Ice Tea Energy
drinks Cola Drinks Lemonades& Sherbet
2 Situation Analysis
6
Figure 2-3: Market share of bio lemonade in bio stores of Germany in 2007
Source: Own representation (BioVista, 2007)
2.1.2 Market Trends
The consumption traits shift towards increasing health and sustainability awareness.
Many consumers have adopted the ‘Lifestyle of Health and Sustainability’ (LOHAS),
and this market will continue to grow (Elopak, 2010). Consumers demand drinks with
less sugar, no artificial additives, and produced from natural sources. Consumption of
carbonated soft drinks containing High-fructose corn syrup (HFCS) is directly related
to health problems such as obesity and diabetes, which is a primary reason for their
declining sales in the developed markets (Business Insights, 2010). Soft drinks
manufacturers are therefore required to add low calorie sweeteners such as stevia
and fortify their products with vitamins and minerals to position them as ‘good-for-
health’. Food authorities and consumer groups are largely discarding food and drinks
containing artificial additives and instead demanding ‘all natural’ products. Artificial
ingredients such as aspartame may cause certain types of cancer while some
permitted artificial colors are associated with hyperactivity and diseases such as
ADHD among children. There is also a long term decline in alcohol consumption
(Business Monitor International , 2010). Senior consumers tend to minimize their
alcohol intake, the middle-aged segment of traditional beer drinkers diminished, and
younger consumer groups were on the lookout for healthy alternatives.
Increasing health and wellness concerns have moved functional foods and drinks
from a niche segment to mainstream products. The compound annual growth rate
(CAGR) of the global functional drinks from 2003 to 2008 was 8% (Zenith
44%
41%
15%
Bio lemonade share in bio stores (2007)
Bionade Voelkel (BioZisch, Biolimo, Biococktail) Others
2 Situation Analysis
7
International, 2009). Naturalness, functional benefits, and indulgence are the
emerging trends in new product development and will continue to be a key driver of
formulation launches (Business Insights, 2010). Sustainability and ethical concerns
also affect requirements for packaging materials. There is an increasing regulatory
pressure concerning return of the bottles, recycling, and using biodegradable
materials (Business Insights, 2010).
2.1.3 Key success Factors
� Healthy and functional benefits continue to be the crucial factors determining consumption decisions. Qualities such as all-natural, low-calories, sugar-free, and functional benefits all help grow sales (Mintel International, 2010).
� Flavor is very essential. Health conscious customers will not buy the product if it does not taste good (New Zealand Trade and Enterprise, 2008).
� The healthy products need to be packaged in a trendy and ‘cool’ way, and be as sustainable as possible. Packaging and label design are important in attracting the customer to try the product for the first time and they contribute to the total customer satisfaction with the product.
� Distribution channels are also of high importance. Selecting and gaining access to the right distribution channels that are effective in reaching the target customers means higher sales and profits. The options for places to sell the products include organic shops, supermarkets, discounters, bars and restaurants. Organic food is sold through all distribution channels in Germany -in conventional supermarkets and discounters as well as in a rapidly increasing number of organic supermarkets. About half of these are organized in chains, the other half are still independently owned (New Zealand Trade and Enterprise, 2008). More information regarding the distribution channels can be found in section 4.2.1.
2.1.4 Summary
Organic lemonade in Germany has the market size of around 60 Million Euro. It is
part of the fastest growing segment of non-alcoholic drink, the ‚new segment‘, with
the growth rate of 35%. The competitiveness in the market is high with the
dominance of some key players and waves of small companies. The major players in
health food stores are Bionade (43.9% market share) and Voelkel (41.3% market
share). The market trend shows rising health and sustainability awareness. The key
success factors are flavor, health and functional benefits, trendy and sustainable
packaging, and right distribution channels.
2 Situation Analysis
8
2.2 Market Potential
To calculate the market potential (MP), we have to define the number of customer
(N), the price (P) and the yearly quantity consumed per point of sale (Q). The market
potential can then be calculated using the following formula:
� � = � � � � �
The following numbers used in the calculation are derived from our analysis and
assumptions that are explained in Chapter 4 Marketing Mix.
2 Situation Analysis
9
2.3 Competitive Analysis
2.3.1 Definition of Competition
The goal of this chapter is to obtain a detailed description and definition of
competitive products and companies. Due to the fact, that brewed lemonades are
rather new to the market, there is not a clear segment, nor are there many products
like e.g. Bionade (regarding the production-process). Therefore, the term competitor
has to be defined specifically in regards to the Novel-Lemonade.
In this report, different criteria of the products themselves and of the companies
behind each product where used to gain knowledge about competing drinks. This is a
very theoretical approach, only taking numerical facts into account. But another very
important aspect is the customer perception of the Novel-Lemonade in comparison to
other products, because it is subjective. Therefore a detailed survey about the
perceived images and properties of competitors has to be made.
2.3.2 Competitive Products
The Pioneer in the segment of bio-lemonades is Bionade. Referring to the European
Patent Office, the production process of Bionade has the international patent WO
95/22911 (European patent office EP000000748168B11; German patent office
DE000004406087C12), naming the end product of this process “alcohol-free
refreshing drink”. Terms like “Lemonade” or “Bio-Lemonade” are not mentioned at all.
Henning Alberts, working in the marketing department of Bionade, states:
“…Bionade is competing with all products in the non-alcoholic beverages market…”
(Alberts, 2010)
This underlines the vague differentiation between products in the non-alcoholic
beverages segment.
For this approach a table was created collection as much information as possible
from drinks on the market (see Figure 7-1 in the appendix). The chosen products are
1 (Leipold, 1990)2 (Leipold, 1990)
2 Situation Analysis
10
mainly lemonades, malt beers3 and bio-lemonades. The product criteria, collected in
the table, are the following:
� Available flavors� Price per liter� Bio certification (yes or no)� Caloric value per 100ml� Contained vitamins, minerals, aromas and colorant� Year of market introduction� Juice content� Carbonization (yes or no)� Production process (brewed lemonade or mixture)
Using this table as a basis, the competition for our product was derived. (For details
see the Chapter 2.3.4.)
Properties of the drink
From the customers perspective it does not matter how the product is produced in
first line, because the process is not adding any customer value, as long as major
product requirements of the specific customer are met. If the drink has e.g. a BIO
certification it does not make a difference if it is a fermented drink or a mixture (there
might be a difference in the taste, but this is a subjective criteria depending on the
individual customer).
2.3.3 Competitive Companies
Size
Another way to figure out possible competitors is to look closer at the companies
instead of just at their products. In this approach the focus would be the size of the
company; is the investigated company a big global player or also just a small, maybe
even a start-up company? In consideration of no artificial flavors and conservatives,
the product “The Spirit of Georgia” is going slightly into the same direction as the
Novel-Lemonade, but already due to the fact that it is a Coca Cola product, it makes
no sense to include such a lemonade to the competitors.
3 Malt beers have been considered because the taste of the Novel-Lemonade has a slight malty scent.
2 Situation Analysis
11
Sales area
Another important aspect is the sales area. Competitors can be lemonades that are
not exactly fulfilling the same ideologies regarding biological ingredients, but focusing
on the same sales area. An example for this is Aloha, which is calling itself a
“Surfsoda”. But it is also a small company distributing its products mainly in the North
of Germany and so can be seen as a competitor. In contrast to this example there
are some other lemonades having the same attributes but being distributed in other
parts of Germany and therefore targeting another sales area, which is why they are
not considered being a real competitor.
2.3.4 Selection Process
Taking all the perspectives mentioned before into account, we come to a selection of
competitors. For further examination of these potential competitors, it is necessary to
derive indices that would group the selected products and indicate where in
comparison the Novel-Lemonade is positioned.
In the search of indices, we focus on the aspects, which are important concerning a
bio-lemonade, the taste and the healthiness. In general, taste is the most important
selling feature for lemonades, but it is often a very subjective perception. Because of
this reason we developed a taste index based on three rough taste categories. The
first one is called “Lemonade”, which implies a really sweet, fruity and sour taste, the
second category is “Fermented”, which means the customer experience a moderate
sweetness combined with a slight bitterness and tea taste, and the third taste
category is “Malt drink”, which is associated with a strong malt taste and moderate
bitterness.
The Healthiness index consists of the indicators Bio certification, calories, added
sugar, vitamins and minerals. By means of a point system the indicators receive
different weights, which are derived from assumptions the customer would perceive
as more important concerning healthiness. Products get two points whenever they
have a Bio certification. As a boundary the average caloric value of the three market
leaders in the segment of non-alcoholic beverages (Coca-Cola, Fanta and Sprite) is
used, which is 40kcal per 100ml(Coca-Cola GmbH, 2010). Consequently, a product
which contains 40kcal and more gets no points, between 39kcal and 28kcal one point
and under 28kcal two points. The other three indicators are weighted less. Products
2 Situation Analysis
12
with additional added sugar receive no points, with fruit sugar half a point and with no
added sugar one point. For the indicators vitamins and minerals, the point structure
follows the same pattern. Whenever there is no significant amount indicated, the
product gets no points (We acknowledge an amount as significant as soon as the
company is actively advertising with it.). Indicated moderate amounts of minerals or
vitamins lead to half of a point and for significant amounts the product receives a full
point.
Table 2-1: Summary of criteria used for the calculation of the “Healthiness value”
Criteria Points
BIO certificate Yes 1No 0
Calorific value40kcal = X 240kcal > X >28kcal 1X = 28kcal 0
Added sugarNo sugar 1Natural sugar 0.5Artificial sugar 0
VitaminsSignificant amount 1Contains vitamins 0.5Does not contain vitamins 0
Minerals
Significant amount 1Contains minerals 0.5Does not contain minerals 0
Source: Own representation
Additionally, we took the average selling price into account, which is represented by
the size of the circle around the product.
All products from the data base were evaluated by these criteria (healthiness value,
price and taste). Taking the aspects of company size and sales into account, the
portfolio of the main competitors can be derived, see Figure 2-3.
2 Situation Analysis
13
Figure 2-3: Portfolio of main competitors
Source: Own representation
It should be noted that the malt drinks AktivMalz and Vitamalz are not considered as
direct competitors. We took them into account because of the strong malt taste of the
Novel-Lemonade and for a better visualization of positioning this taste. Both drinks
are examples of a pure malt taste whereby AktivMalz also possess a Bio certificate
and both drinks contain vitamins and minerals. They indicate the border from the
taste of fermented lemonades and malt drinks. The Novel-Lemonade is situated
closer to this border than the other bio-lemonades.
As direct competitors, we identified the products Bionade, BioLimo and Now. Aloha
can be seen as a competitor because of the before mentioned reason regarding size
of the company and sales area. However, Aloha is considered as a wider competitor
because the lemonade has no biological aspects and additional vitamins or minerals,
which is leading to a Healthiness Index of just 1.
Concerning the taste of the three direct competitors Now is the sweetest and most
“normal” lemonade. Bionade as the only other fermented lemonade has the most tea
flavor and less sweetness, so it comes closest to the taste of the Novel-Lemonade.
BioLimo with its moderate sweetness is situated in the middle between both bio-
lemonades.
2 Situation Analysis
14
The calculation of the Healthiness index for the three products shows that they are all
quite close together. All of them have a Bio certificate and indicate a moderate
amount of vitamins or minerals. “Now” with a healthiness value of 3.5 points has the
lowest index because of a medium high calorie amount. While Bionade with an index
of 4.5 points has the lowest amount of calories, BioLimo reaches a Healthiness Index
of 5 points due to its use of fruit sugar. The Novel-Lemonade achieves the highest
healthiness value with 6 points. This amount is reached by the estimations that the
product gets a Bio certification, has comparable calories as Bionade, contains
completely no added sugar and is rich in vitamin B12.
This analysis shows that the Novel-Lemonade would slightly outstand concerning the
healthiness in comparison to the three direct competitors, which are the most sold
bio-lemonades in the bio stores.
Direct Competitors
� Bionade� [biolimo]� Now
Wider Competitors
� Aloha� Vitamalz� Aktivmalz
2.3.5 Further Competitors
Additional to the before mentioned competitors, there is a trend of small start-up
companies in the beverage market which try to initiate social consume. Their goal is
to combine biological ingredients, fair trade and charity. An example for this trend is
LemonAid. Founded in 2008 by two entrepreneurs from Hamburg, LemonAid is
selling nowadays around 50.000 bottles per month. Sugar and lime juice are
imported from fair-trade cooperatives in developing countries. With the future return,
the company also wants to support projects in these countries. It might be the
beginning of a long-term trend. Being socially committed and not just a bio product
could be a competitive advantage. Until today this trend has not provided a
comparable product to Novel-Lemonade, concerning healthiness and the
fermentation process, but the beverage market is fast moving and there might be a
2 Situation Analysis
15
new competitor in the future who is more similar to it. In this regard, there are
reasons to consider the fair trade and charity aspects into the product concept to stay
competitive (Frommberg, 2010).
The selected companies (from the direct and the wider competition) only represent
the established players that already have a well-known brand name, developed
company structures and networks. Thereby, they have a significant advantage in
respect to market strength. It has to be pointed out though, that a wave of young
start-ups is flooding the non-alcoholic beverages market, with a variety of different
products (Reißmann, 2010) (Trentmann, 2010). They are mostly operating in their
direct regional surroundings, have small market shares and no national-wide known
brand name. Additionally, the majority of those drinks aims for customers of “classic”
lemonades and are not trying to enter the healthiness-oriented segment. This is why
none of them is chosen as competitor. Still the danger of many new small start-ups
has to be pointed out, because the customer is flooded with new drinks in bars and
the shelves of supermarkets, which makes a clear diversification even more
important.
2 Situation Analysis
16
2.4 Target Customer Analysis
Based on the analysis of the product and its position in terms of competitiveness in
the market, the customer that would likely purchase the product is analyzed. As a
Hamburg based start-up business, it makes sense to target customers who are
located primarily in the city of Hamburg and in a future step in some other big cities in
Germany.
2.4.1 Main Target Group: Vegetarians, Vegans, and LOHAS (aged above 25)
Having a product with outstanding healthiness characteristics and the vitamin B12
feature, the first obvious target customer would be vegetarians and vegans. It is
estimated that there are around 7.3 million vegetarians in Germany (Institut Produkt
und Markt, 2009) or around 9% of the total population. Vegetarians and vegans come
from all age, income, education and geographical boundaries. A typical characteristic
of them is that they can be loyal, enthusiastic customers who generate word-of-
mouth recommendations to other vegetarians and vegans.
When selecting vegetarian foods, consumers consider availability, taste, convenience
and price. In a study of 20,000 households by the Soyfoods Association of America,
taste was the primary consideration while purchasing, with cost ranking the second
and fat content the third. Vegetarians and vegans are usually having a strong
relationship to each other and establish communities. In Germany, the
Vegetarierbund Deutschland (VEBU) is the main organization for vegetarians and
vegans.
There is a strong consumer movement focused on health, environment, personal
development, social responsibility and sustainable living. This target group is called
LOHAS (Lifestyle of Health and Sustainability). In the German market, the number of
LOHAS consumer has reached 28% of the population in 2008 (Elopak, 2010) and
this number is expected to continue to rise in the future. Therefore this group is the
ideal target customer, apart from vegetarians and vegans, who have a special benefit
of the B12 feature due to their diet.
While current LOHAS consumers are usually slightly older, aged 40+ with family,
there is a strong indication that younger people are getting into this new lifestyle.
Angela Kuhnert from Bionade stated that “while the buyers of traditional soft drinks
2 Situation Analysis
17
are between 14 to 35 years old, Bionade’s buyers are between two to above 90
years old” (BioHandel, 2007). The chart shown below from Axel Springer AG on the
lemonade buyers in Germany also indicates that there are a significant number of
buyers in the age region of above 20. Therefore, we recommend having customers
aged above 25, which also includes the LOHAS group, as our main target customer
group.
Figure 2-4: Age distribution of lemonade buyers in Germany
Source: (Axel Springer AG, 2010)
LOHAS customers are usually educated, live in urban areas, have a strong belief in
the value of brands, are middle to upper class, and have a higher than average
disposable income. They want to do something good and have good things in life,
and are willing to pay more to do so. They value quality and pleasure and they have
a preference for branded products. Therefore, they would go to small and specialized
health-food shops to find their preferred product, if the big supermarkets and retailers
do not provide the product. These customers are also more often women than men in
all income groups.
For food and beverage products, LOHAS consumers are willing to pay higher prices
for premium products. They want healthy and quality products. They have strong
loyalty to locally grown products, because of the lower CO2 emissions and food
miles. Generally, they believe that locally grown and produced products are healthier
and support both environmental and social responsibility issues. This supports our
previous recommendation to target customers located in the city of Hamburg. Steve
French from NMI, a US market research company, stated that “The food and
beverage market is already partially evident when it comes to the LOHAS concept.
Whereas 10 years ago consumers simply picked a brand, now their behavior follows
4,87
8,55 8,3110,36
7,384,96 4,75
14-19 20-29 30-39 40-49 50-59 60-69 > 70
Peop
le(m
io)
Age Group
Lemonade Buyers
2 Situation Analysis
18
a pre-and post consumption pattern, such as where is the product from, what are the
ingredients, where are they from, how can they recycle the packaging, etc. This has
opened up opportunities to answer these questions through their product and
packaging.” (Elopak, 2010)
However, the significance of younger customer in lemonade market cannot be
neglected. Therefore, in the next section we will provide explanations on our
secondary target customer: customers aged below 25.
2.4.2 Secondary Target Group: Young Customers (aged below 25)
As stated before, Bionade as our main competitor states, that their target customers
are aged between two to above 90 years old and there is also a significant number of
young lemonade buyers in the chart provided in the previous section. Therefore, it is
also important to understand these young customers’ buying behavior and
characteristics.
This segment is still relatively small for the bio market, which means that the
customers would normally buy from normal supermarkets and retailers, rather than
going to health-food shops. Despite that, Bionade has proven successfully combining
the “bio” and youthful lifestyle orientation in the brand. One success factor is that
Bionade has managed to attract buyers by its appearance. Successful examples
show that advertising and packaging have features like “tasty”, “trendy” and “simple”
(easy to carry). Brand identities, advertising, packaging and retail outlet design have
an initial impact to develop customer’s curiosity of the product. Good taste, however,
would be the ultimate deciding factor to retain customer’s loyalty of the brand.
A Recent study from BioHandel (2007) stated that almost 78% of young customers
think of taste as the most important buying motive, followed by price (55.1%), and
habit/lifestyle (43.6%). Therefore, if the taste of the product can convince these
young customers, this target group would have a potential market opportunity, even
at a higher price. There is also a changing trend from the basic positive values to the
direction of more organic/bio awareness of young people.
3 Blind Taste Study
19
3 Blind Taste Study
The purpose of this section is to determine what characteristics of the Novel-
Lemonade compel with the general expectations of the future customer; as well as
the areas in which the product needs to be improved in order to meet the customers’
requirements in terms of smell, taste and general satisfaction when drinking the
Novel-Lemonade.
To achieve this purpose, we designed a blind tasting study. This includes the
comparison of the Novel-Lemonade against a selected competitor and, coupled with
a brief questionnaire; provides the most relevant information about the positioning of
the product in the customers preferences when compared to similar alternatives.
The evaluation of the product by the target market has been one of the major
concerns of this project. However, the delay in obtaining the pointed permissions
from the German Health Ministry for a public tasting, the delay in the delivery of
irreplaceable pieces of the brewing equipment and electricity problems during the
brewing process previous to the study, resulted in a very constraint blind tasting
study. Therefore the results are not representative, due to the scarcity of the sample.
3.1 Products
The volume of Novel-lemonade available for tasting was close to 1.8 liters of a sweet
“flavor”. It can be described as natural (no added flavoring) lemonade.
Since the study was designed to compare the Novel-Lemonade against an existing
product in the market, the group decided to benchmark our product against the
market leader within the defined segment, namely Bionade. This selection for the
tasting study also relies on the relative similarity of the products given that they are
both fermented. The herbal flavor of the Bionade Kräuter was thought to be
comparable to the expected tea-like flavor of the Novel-Lemonade.
3 Blind Taste Study
20
3.2 Survey
The survey comprehended two general questions, five questions per product and two
open boxes for additional comments from the participants.
There are several purposes the survey was designed to fulfill. In addition to the
information about the product, we yearned for confirmation that the target market
perceived the product the way it was conceived.
The first two questions, age and gender, served the purpose of fairness to the
sample - similar male and female participants - and to identify the preferences of the
sample, age being the distinguishing factor. It is well known that taste preferences
and the sensorial perception change during the different life stages(Mojet, et al.,
2001).
The second group of questions regarded the perception of the different features of
the product as well as the overall experience of the product in the eyes of the
participants. These questions included the perception of the appearance, the primary
(smell) and secondary (flavor) aromas, the acceptance of the taste/feeling and the
balance between the three of the five basic tastes (savory, sweet, sour, bitter and
salty) in the Novel-Lemonade.
Finally, the comment boxes added to the survey were an instrument to acquire as
much information as possible of the tasting experience. It serves to provide a more
detailed explanation of the answers given or as tool to suggest improvements subject
to personal tastes.
3.3 Study
The study was executed within the Technical University Hamburg-Harburg (TUHH).
Personnel from different departments allocated in buildings D and E participated in
the study.
The participants were approached by the team, briefly informed of what was the
purpose of the survey as well as what was demanded from them. To those who
agreed on participating, a printed copy of the questionnaire was provided,
accompanied by two small glasses (20ml) each containing one of the trial products.
3 Blind Taste Study
21
The Novel-Lemonade was always the first product to be evaluated by the participants
in order to avoid influenced participants being misled by other products features and
evade biased comments.
The participants were then asked to read the questionnaire and fill in their responses,
marking the responses from the ones provided that would best fit into the perception
of the different aspects of the drink. Participants were invited to add any further
comments they considered appropriate for the improvement of the product.
3.4 Results
3.5 Summary
Different areas of improvement were identified from exercising the blind tasting study.
There are additional highlights mentioned here that were extracted from the
recommendations provided in the comment boxes in the survey itself (please refer to
appendix Blind Tasting Comments in Table 7-4).
From the results we can settle upon the reduction of the strong malty smell of the
Novel-Lemonade. The impressions provided in the answers to the survey and in the
comment boxes is that the smell is unpleasant and rather misleading, since in few
cases it was associated to honey and the utter taste of the Novel-Lemonade is
completely different form this.
Another clear conclusion is the enhancement of the healthiness quality; this should
be achieved by providing a better balance of the basic tastes in the Novel-Lemonade.
Some participants (24%) perceived the product to be too sweet, even when the
natural sugar content is similar to that found in the benchmark Bionade.
3 Blind Taste Study
22
As a result, the question that arose in this regard is the suitability of sweetness to the
overall taste of the final product. “Would it be suitable to shift the ultimate taste of the
Novel-Lemonade towards a more fruity and refreshing product?” “Would it rather be
shifted towards a more settled and herbal flavor?” These questions must be
answered in the future preferably in collaboration with a food and drink taste
development expert.
Finally, we can deduct from the comments and the answers to the questionnaire, that
the flavor of the Novel-Lemonade should transmit a clear impression. This argument
is supported both on the “cannot tell” answers in the questionnaire, and on the
comments provided as feedback during the tasting study. It is important that the
overall product experience causes a favorable impression in the customers’ sensorial
memory; otherwise, the success of the product might be severely hampered.
4 Marketing Mix
23
4 Marketing Mix
Considering the findings of market, competitor, target customer analysis and the blind
taste study, the following suggestions for the marketing mix can be derived.
4.1 Product
The branding strategy and characteristics of the lemonade and its packaging greatly
determine consumer total product experience and satisfaction as well as differentiate
the product from the competitors. According to the market analysis, the key criteria
for success are taste, naturalness, healthiness and functional benefits. Our potential
target consumer group belongs to the age over 25 with health and sustainability
consciousness. The following section provides recommendations for the product
based on market trends, target customers analysis and analogies from Innocent Ltd..
4.1.1 Product strategy
“Healthiness and Indulgence” are suggested to be the key elements of the product
positioning and brand strategy. This means to provide healthy and functional
benefits, which are demanded by an increasing number of customers (Eickmeier,
2009) as well as to leave consumers with pleasurable experiences when drinking the
lemonade. It is highly important to ensure that the product and brand are completely
in synchrony for complete consistency.
The competitive features of our lemonade are its naturalness, healthiness, and
functional benefits. The product contains all-natural organic ingredients with no sugar
added in the process. These organic and ‘no added sugar’ features are
unquestionably appealing to the growing number of health conscious consumers.
Functional benefits from Vitamin B12 attract customers who have a particular need
for it, particularly, vegetarians and vegans. These healthy benefits are the key
competitive advantage that the Novel-Lemonade has over its current competitors.
4 Marketing Mix
24
The unique selling point of the product, vitamin B12 and naturalness, should be
emphasized in all aspects of branding and marketing strategy, e.g. brand name, label
design, selling places and promotion materials.
Flavor is a crucial factor. The majority of LOHAS customers consider taste as the
most important buying criteria in addition to naturalness and healthiness. They
demand products that have good taste, pleasant smell and provide functional
benefits to their health. The blind tasting results indicate that flavor and smell of the
Novel-Lemonade are an area of improvement. Based on the results, we suggest the
lemonade to be less sweet and malty, and increase fruitiness to make it more
refreshing. The smell has to be less pungent and enhanced with tea flavors. In
addition, it is crucial to keep consistency in the quality of the lemonade, including
consistency in flavor. Product line extensions by introducing new flavors could be
considered later on in order to satisfy customer needs for a greater variety.
AN
ALO
GY-
Inno
cent
Innocent is the UK’s leading smoothie brand that dominates the smoothies market
with a 73% share (Turner, 2008). They create the product from their principle, to
produce ‘natural drinks that taste good and do you good.’ Innocent ensures that there
is a good product at the heart of business, and believe that good reality and brand
image will follow. Before starting their business, they bought £500 worth of fruit,
turned it into smoothies and sold them from a stall at a music festival in London.
People were asked to put their empty bottles in a 'yes' or 'no' bin depending on
whether they thought the three entrepreneurs should quit their jobs to make
smoothies. At the end of the festival, the 'yes' bin was full, with only three cups in the
'no' bin, so they resigned from their works and started the business (Tryhorn, 2009).
Innocent also ensures that the product and brand are coherent. The brand is infused
with curiosity, fun and compassion. Innocent has put large effort to distance itself from
the corporate image and instead build a pure and student image as can be seen from
its witty packaging, Fruit towers premises, and grass covered vans. This alternative
image turns out to be an effective marketing ploy in a world increasingly disillusioned
with Americanization and corporate power.
4 Marketing Mix
25
AN
ALO
GY-
Inno
cent
Sustainability is Innocent’s core brand value. As the company continues to reassess
its carbon footprint, its ultimate aims are to become not an FMCG but an FMSG, with
the S standing for ‘Sustainable’. Innocent’s ‘Sustainability Squad’ is built around the
principle to procure ethically, reduce and offset carbon emissions, recycle and give
something back through charitable giving. Its fruit suppliers have to meet minimum
International Labor Organization standards and premium rates are paid to Rainforest
Alliance-accredited or local farms. Electricity comes from green renewable sources.
Fleet vehicles are powered either by bio fuels, LPG or hybrid. CO2 emissions are
measured each month and are offset by 120% to be carbon negative across the
business (Growingbusiness, 2007). It also recently introduced bottles that are 100%
recyclable.
4.1.2 Packaging
There are many important decisions to make concerning the bottle: reusability,
material, size, shape and bottle cap. These decisions are strategic, since it is not
possible to change the type of bottle that is used overnight; mainly, because there is
much capital tied up in the bottles and the cases. Also, the decision about the bottle
characteristics affects the feasible distribution channels.
First of all it needs to be decided if the bottle should be one-way or reusable. This
decision affects the shape and the material of the bottle. Furthermore, Germany has
very strict regulations (Verpackungsverordnung, 2010) about bottle deposit. Since the
lemonade is carbonated it must be sold in a returnable bottle, regardless of whether it
is sold in a glass or plastic bottle and whether it is a one-way or reusable bottle.
There is a trend that beverages are increasingly sold in one-way plastic bottles.
Almost 90% of the sold drinks for home use are filled in these bottles nowadays4.
Nevertheless for organic lemonades with LOHAS, vegetarians and vegans as a
target group, the drinks should be filled in reusable glass bottles. On the one hand it
actually is more environmentally friendly and, on the other hand, it shows that the
company cares for issues like these which are also important for the target group.
Furthermore, in restaurants and bars it is the only way to sell drinks. Another
important fact that supports the decision to use a glass bottle is the extended shelf-
life (time of permanency) in comparison to plastic bottles which are not 100% airtight.
4 Statistic of WAFG, which is not available for the public
4 Marketing Mix
26
The lemonade, especially placed in health-food shops, might not be a fast moving
product, is dependent on a preferably long time of permanency. A collection of more
reasons that support the use of a glass bottle can be found here (Leonhardt, et al.,
2010).
For the sales in restaurants, bars and clubs the 0.33L bottle is the most common
size. If sold in shops and stores, 0.5L bottles are more favorable to some customers
and should be provided as well.
Reusable glass bottles are available in a huge variety of shapes on the German
beverage market. It would be desirable to have a “designer bottle” to show the
uniqueness of the product, but it is much more cost-efficient to select the standard
bottle. It is easier for logistic purposes and for finding a bottler who is capable of filling
the bottles. The glass will be transparent so that the lemonade is shown it its natural
color. The 0.33L bottle usually is a longneck bottle and comes with a crown cap. For
the 0.5L bottle a screw cap is more convenient.
To point out the importance of this decision some interesting financial figures are
given. (Lübbermann, 2011)
� Cost of the cheapest standard bottle case: ca. 3.00€
Deposit for a bottle case in the store: 1.50€
� Cost of the cheapest standard bottle: ca. 0.12€
Deposit for a bottle: 0.08€
This means that with every case of lemonade sold, the company is losing money at
first. A huge investment is necessary in the beginning to buy cases and bottles. That
is the reason why by all means standard bottles and cases should be used.
There are two ways to reduce the financial loss. Including a bigger margin for the
company or increasing the deposit for the bottles. The 0.08€ deposit per bottle is the
legal minimum but it can be increased by the company, e.g. to 0.15€ per bottle. This
would be an alternative to avoid a higher selling price for the customer.
Finally, the label for the bottle has to be defined. It should be a standard label
concerning size and material. Every other option would be too expensive and also
not usable in some bottling facilities. There are many regulations that have to be
4 Marketing Mix
27
followed to comply with legal issues. Detailed information about batch number and
ingredients has to be on the label and there are many formalities like font size that
have to be considered. We strongly recommend seeking the advice of an expert in
order to cope with those issues. The image and unique selling point of the product
should be expressed on the label. This includes mentioning and graphically
emphasizing the ‘vitamin B12’, ‘no added sugar’ and the “Bio label”. The nutritional
facts should also show amount of vitamin B12, natural sugar in addition to standard
information.
Bio
labe
l
To use this label, manufacturers need to be annually certified
by one of the registered certification agencies. At least 95%
of the agricultural ingredients contained in processed
products must come from organic production (Bio-Siegel
Information Centre, 2006). The remaining ingredients of
agricultural origin must be listed in Annex VI Part C of the EU
Regulation on Organic Farming. The list of ingredients has to be printed on the
label. The certification costs depend on the produced amount of lemonade. For the
first year, it will probably be beyond a certain limitation and cost 300€ flat rate
(Lübbermann, 2011).
The criteria to qualify for the Bio label are not very high and, past industry
experiences show that it is generously issued by the certification agencies, which
means that the actual value of this label should not be overestimated. The
consumers mostly do not know about this fact and trust the label (EARSANDEYES
GmbH, 2006 p. 27) though, which is why we definitely recommend using the Bio
label. There is a great variety of organic labels with different requirements. A
summary and a list of certification agencies can be found in the article by Richter
(2005 p. 7 ff.).
4.1.3 Summary
Healthiness and indulgence are recommended as key features for product
positioning and branding. Healthiness and functional benefits are the competitive
features of our product; therefore, they should be emphasized in all aspects of brand
strategy. Flavor is one of the most important buying criteria that largely determine
consumer experience with the product. Based on the tasting results, we suggest the
product to be less sweet and malty in taste, fruitier and less pungent in smell, and
4 Marketing Mix
28
enhanced with flavors. The bottle should be a standard glass bottle having the sizes
of 0.33L and 0.5L. We also suggest using a standard label in term of size and
material, which should graphically express the brand image and the unique selling
point of the product, including Bio label and mentioning of the vitamin B12 content.
With regards to batch number, ingredients, and other formalities, consulting an expert
is recommended.
4.2 Place
This chapter includes several explanations about possible points of sale and the
distribution channels that should be targeted. Furthermore, the sales area has to be
defined given its close connection to the decision about the location of production.
4.2.1 Beverage distribution in Germany
In order to propose the suitable points of sale, it is necessary to take a closer look at
the whole distribution system of beverages in Germany. The customers can buy
drinks in discounters, supermarkets, beverage markets, kiosks and, of course, for
immediate consumption in bars, restaurants, clubs, etc. Especially organic
lemonades are also available in health-food shops and wholefood supermarkets.
From the perspective of the manufacturer those points of sale are not necessarily the
ultimate customers. Usually, beverage sales are organized in multi-level distribution
systems, with slight differences depending on the final point of sale. In most cases
the manufacturer sells the beverages to a wholesaler. If the beverage is sold in a
restaurant, bar or club, there is usually one more level in between, a local trader. If
not, the wholesaler mostly sells directly to the supermarket or beverage market. It
depends on the received bulk and on the size of the customer whether a local trader
is required or not.
4 Marketing Mix
29
Figure 4-1: Beverage distribution in Germany
Source: Own representation
Of course, the manufacturer can sell directly to the mentioned points of sale. For that
he needs his own logistical network to be able to supply the customers which some
companies actually do. However, this is not a realistic scenario for a start-up
company. The investment in logistics infrastructure (storage facilities, truck fleet, etc.)
would be too high and can be managed much more efficiently by industry experts. So
the existing infrastructure should be used even if it includes a margin for the
wholesaler and for a possible local trader. Only in the very early stage of the start-up
it might be necessary to supply the first customers yourself to get the project started.
Although the actual sales are generated through the described multi-level distribution
network, the company still has to take decisions about the points of sale. Since the
product is not established and well-known, a demand has to be created in order to be
met by the distribution partners. They will not actively “push” the product into the
stores and bars, etc. They act purely as logistics companies.
4.2.2 Points of sale
In the following section, we take a look at the different points of sale and give
propositions whether it makes sense to use them. To give a complete overview,
4 Marketing Mix
30
which is very important to understand the beverage business, all points of sale are
examined. As described before, it is required to find your way into those points of
sale by your own initiative. Firstly, the opportunities for take-away purchase are
listed.
Discounters
Discounters are very popular in Germany and register increasing beverage sales
annually. That is the most important reason for the decreasing multi-cycle quota of
bottles. However, it is not realistic to use discounters as a distribution channel at all.
They are limited to very few products in their shelves, and need to be extremely fast
moving. The lemonade will not be one of those products due to its comparatively high
price. Also there are so-called listing fees to place the product in the assortment of
the discounter in the first place. Given the fact that our described target group is not
consistent with the target group of discounters, it would be questionable if substantial
sales could be realized.
Supermarkets
Supermarkets are quite similar to discounters when it comes to listing fee issues.
REWE asked for 2.4 million € listing fees plus price discounts between 5% and 8%
when Bionade was first interested in being listed in their assortment (Weiguny, 2009
S. 189). Our inquiries5 have shown that supermarkets are mostly not willing to
support “small” products or that it is at least very hard to convince them. They should
not be considered in this phase of the start-up.
Beverage markets
Beverage markets are a German phenomenon, in other countries sales are mostly
generated in supermarkets. It has become more and more difficult for beverage
markets to survive and they are rapidly losing their market share. Nevertheless, those
markets are an elegant way to sell greater bulks of a beverage since the customer
usually comes by car and uses special shopping carts to carry whole cases of drinks.
It is said that those markets are making money not through their sales but through
their smart purchasing. They are asking their suppliers to provide all sorts of
5 Inquiries at Edeka, REWE, Teegut and Budnikowsky
4 Marketing Mix
31
incentives, bonuses, listing fees6, free samples, etc. It is not easy for an
inexperienced start-up to cope with those tricks. Only those beverage market that
seem to run their business in a fair way should be considered as partners.
Health-food-shops
Health-food shops are small businesses specialized in - like the term says - healthy
which mostly means organic food. Some are organized in chains, e.g. Reformhaus,
and are selling a broad variety of health-related products, not limited to food. Most of
them are just small owner-managed shops. They are addressing the exact same
target group as our lemonade and should be considered a main point of sale.
Wholefood supermarkets
Wholefood supermarkets are offering a similar assortment as the health-food shops,
but they are organized in huge chains. Also the stores are much bigger concerning
shelf spaces. The same as the health-food shops they are aligned to the same target
groups as the lemonade and therefore should be concentrated on. The following
table gives an overview over Germany’s key players.
Table 4-1: Wholefood supermarket chains in Germany
Source: Organic-Market.info, *estimate
Kiosks
Kiosks are not frequented sufficiently enough by our target group to form a
reasonable point of sale.
6 1,000€ per beverage market if you cooperate with „trinks“, one of the big players (Lübbermann, 2011)
4 Marketing Mix
32
In the following points of sale the beverage is consumed immediately and therefore
mostly sold in single units.
Bars, restaurants and clubs
Bars, restaurants and clubs often have contracts with beverage manufacturers. The
manufacturers provide them with credits and interior accessories (bar signs,
umbrellas, bar equipment, etc.). In return the bars have long-term contracts with the
manufacturers and are allowed to sell just their drinks. This means that they have to
be approached individually and even if it takes a great effort, these channels should
not be disregarded. They have a great potential, also as a multiplier considering
promotion. Most of the drinks that started as start-ups, got popular through the sales
in clubs and bars. There probably are locations that are visited more frequently by
our target group than others and, these definitely should be addressed at first. As an
example there are vegetarian restaurants, alternative clubs and bars in certain areas
of a city where the target groups tends to live.
Additionally the canteens of Hamburg’s universities, managed by the
Studierendenwerk Hamburg, should be regarded as a point of sale.
The points of sale, their characteristics and our recommendations are summarized in
the following table.
4 Marketing Mix
33
Table 4-2: Summary of points of sale
Source: Own representation
4.2.3 Location of production and sales area
The next step is to decide where the lemonade should be produced and bottled.
Usually bottled drinks are produced in two steps. An aroma supplier produces the so-
called “base” that is then delivered to the bottler who adds sugar and water and fills
the finished product into bottles. In the case of our lemonade this process is not
applicable, which sets the limit to breweries that are also capable of bottling.
It makes sense to launch the product in a local market and, if successful, expand the
sales area to Germany subsequently. Hamburg seems to be a perfect starting point.
The inquiry for a partner is influenced very much by the needed quantities and
process adoptions. In general there are three main groups of breweries in Germany
determined mainly by their size (see Table 4-3).
4 Marketing Mix
34
Table 4-3: Sizes of breweries in Germany
Size Big Medium Small
ExampleHolstenOettingerKrombacher
KneitingerBischofshofCeller Bier
Brauhaus Johannes AlbrechtMälzer's Brau- u. Tafelhaus
Sales area International / National Regional (national) LocalCooperation Difficult Realistic DifficultQuantities Very high high smallPrice & Service Good Good insufficient
Source: Own representation
After contacting multiple breweries, it resulted, that small breweries are not suitable
for cooperation. They mainly belong to hotels or restaurants and brew only for the
demand there. Usually those breweries are not able to either provide the bottling or
sufficient quantities.
Big players can realize all process steps and even give support in regard of logistics
and distribution. Their facilities offer a high efficiency and thereby a good price. The
scale of those companies on the other side also generates difficulties. E.g. the
minimum amount that the Holsten AG will accept for a contractor is one charge at the
size of 2,000hl, which is delivered in just about 14 days (Rauschenbach, 2010).
Additionally the requirements for a contract are very high; because these companies
cannot risk that their brewing equipment to infiltration of foreign organisms. As a
consequence a lot of detailed information (possible conflict with patent & secrecy) is
needed and even adjustments of the brewing process of the Novel-Lemonade might
be needed.
Mid-sized breweries seem to be the best fitting partners for the given conditions.
They are able to perform the brewing processes as well as bottling and labeling.
The decision about the location of production is strategic since it is difficult to switch it
afterwards. For that reason, a location in the central area or of Germany should be
chosen. In that way it is no problem to extend the sales area in the future. Due to
cultural development in Germany it turns out, that the scenery of breweries in
Germany is not homogeneous. In 2008 Germany had 1,319 breweries, with 628 of
them located in Bavaria (Statistisches Bundesamt, 2008). The reason for such a
large amount is that in Bavaria a huge variety of mid-sized breweries is located and
makes it a predestined area for partner companies.
4 Marketing Mix
35
4.2.4 Distribution system
After production, bottling and labeling, which is done by a contracted brewery in a
probably monthly rhythm, a wholesaler transports the goods to his storage facilities or
directly to a local trader. The local trader supplies bars, restaurants and clubs in
shorter intervals on demand. The same is valid for wholefood-supermarkets and
health-food shops that are directly supplied by the wholesaler.
Verb
and
korr
ekte
rGet
ränk
eher
stel
lere
.V.
It would make sense to use an existing distribution network
to save the work of organizing it yourself. Therefore we
recommend cooperating with the network of the “Verband
korrekter Getränkehersteller e.V.”. It is located in Hamburg
and can be described as a cooperation of some mostly
Hamburg-based beverage producers that try to run their
businesses in a fair and sustainable way. So far, the
members of the network are: Viva con Aqua, Premium
Cola, LemonAid, ChariTea, BierBier, Karl Mölle Getränke
and Hermann-Kola. Their aim is cooperating with regard to distribution and sharing
of information, ideas and contacts. Our product and company fits perfectly into this
network. Especially for a start-up, the network’s experiences would help to get the
company on the right way.
As described earlier, the wholesaler and local traders are, in the case of an unknown
product, not promoting it so much to their customers. For that reason, our company
has to convince the different points of sale itself. Usually salesmen are used in order
to acquire new customers. There is one company we are using here as an analogy,
that provides a new approach.
AN
ALO
GY
Prem
ium
Col
a
In this concept, literally everybody can participate in the company’s success. The
system is easy. People go into bars and promote the product. If they successfully
set up a deal, they receive a certain amount of money per bottle (0.04€) which is
sold in that bar as an incentive. In return, they have to undertake the task of
customer care.
4 Marketing Mix
36
4.2.5 Summary
As observed in this section, the beverage distribution system in Germany is very
complex. Hence, to maintain the opportunity of expanding the sales area to entire
Germany in the future, the contracted brewery should be located in the central area
of the country (such as the north of Bavaria). In the beginning, the points of sale are
most suitably to be located in Hamburg; consisting of health-food stores, wholefood
supermarkets and suitable bars, clubs and restaurants. For these reasons, consulting
the “Verband korrekter Getränkehersteller e.V.” for cooperation with regard to its
distribution network will help to find a suitable wholesaler to take care of logistics.
4.3 Price
It is essential for a successful product launch to set the price “right”. A broad study
has to be made in order to determine the customers’ willingness to pay. Due to the
unstable product and the along coming lack in taste, there was no sense in adding
questions regarding the price into the questionnaire of the blind taste.
Therefore the price for the Novel-Lemonade is calculated based on information about
competitors, production costs and profit margins of each level to the customer.
4.3.1 Market prices
As first aspect, the prices of competitors shall be taken into account. Table 4-4 shows
the prices of competing products in a German wholefood supermarket for the end
customer and the retail price from the wholesaler to the supermarket.
Table 4-4: Prices of competitors for retailers and customers (0.33L bottles)
Product Retail price Price for end customerBionade 0.58€ 0.99€Biolimo 0.50€ 0.89€Now 0.57€ 0.79€Aktivmalz 0.54€ 0.89€Bios 0.56€ 0.99€Bio Zisch 0.50€ 0.89€Average 0.54€ 0.91€
Source: (Grell Naturkost, 2009)
It is shown, that the average retail price of competitive beverages ranges at 0.54€
and the average suggested price for the end customer at 0.91€ (recommended in
4 Marketing Mix
37
wholefood supermarkets). In reality though, the recommended prices are not used for
all products. Bionade, BioLimo and Bio Zisch are usually sold for about 0.79€ (the
same price as in usual supermarkets) which leads to a real average price for end
customers of about 0.84€.
4.3.2 Production
There is not a company structure yet, Mr. Bürgel cannot produce the product himself
and an investment in own brewing facilities - at this stage - comes with high risks.
Therefore partners for the brewing and the bottling have to be found. Taking the
assumed market potential into account, the required amount during the first year is
round about 16,000L or 42,000 bottles.
Given a process description, Mr. Olaf Rauschenbach from Holsten AG (a company of
the Carlsberg Group) was able to provide an estimated price for the Novel-
Lemonade, in case Holsten would be commissioned for the brewing.
Figure 4-2: Price estimation for the contracting brew with Holsten AG
Source: (Rauschenbach, 2010)
Because of multiple reasons (but mainly the huge difference in offered and
demanded quantity), big breweries like Holsten are not suitable partners for a small
start-up company. Medium sized breweries are more suitable for the existing needs
of Mr. Bürgel. Contacting mid-sized companies did not bring any concrete offers for
rewarding brew. They seemed skeptical to give out price information if there is not an
existing firm behind the request. We expect the production costs with a fitting partner
to be 20% higher (=0.20€ per bottle) than the one of Holsten, due to the different
scales of production quantities (For more information about the size breweries and
the connected advantages or disadvantages see chapter 4.2).
4 Marketing Mix
38
4.3.3 Costs and profit
One bottle Bionade sells for 0.79€ per bottle. At that price the retailer makes a profit
of 0.10€ to 0.20€, Bionade from 0.05€ to 0.10€ (Weiguny, 2009 S. 190). This
provides an averaged profit margin of 13%, taking the average retail prices (Table
4-4) as a basis. As Bionade GmbH has their own brewing facilities we assume that
they are able to match the price offered by the Holsten AG, given the similarity of the
processes. That means, that they have production costs of about 0.16€ per bottle
(their production may not be as efficient as the one of Holsten, but they do not have
to pay the profit margin of a contractor). Due to the fact, that Bionade is brewing a
concentrate, they should have an advantage at the logistics.
4 Marketing Mix
39
Source: Own representationA
NA
LOG
Y-B
iona
de
At 01.07 2008 the price of Bionade was raised by 33% to 0.79€ per bottle in order to
set the “Original” apart from more and more upcoming competitors and to finance the
tremendous growth of Bionade over the past years. Bionade thought, that the
customers will accept the price, to “keep their beloved scene drink alive” (Weiguny,
2009 S. 234-240).
As a result the sales decreased by slightly more than 30% leading to a stagnating
profit, compared to the last year. In the background of growth rates of up to 300% the
drastic impact of the higher price becomes clear (Weiguny, 2008 p. 238). In the year
of 2009 sales decreased again by about 25% compared to 2008 (Kreiszeitung, 2009).
Arrogant appearing explanations for the higher prices like “We are the original, and
the original always has to be the most expensive” (Weiguny, 2009), did great damage
to the reputation and the image of the company and the product as a brand.
4.4 Promotion
In the beginning of a market entry, one of the biggest tasks and challenges is to
promote the product in the right way so that as many people of the target group as
possible get to know the new product. There are many channels for advertising but
due to the particular target group and to the budget of the start-up company the right
choices have to been made. The classical advertising channels like TV, radio, print
and poster advertising require a big marketing budget. For instance, a 30 seconds
radio spot on a local Hamburg radio station costs between 180 and 690 Euros, which
includes just the broadcasting of the spot once. Furthermore there will appear
additionally concept and production costs for the commercial (Boldt, 2010). A poster
advertising campaign also requires a large investment. Referred to the price list of
outdoor advertising specialist WallDecaux a campaign in their City Light Posters
network costs 129.066€ for one week (WallDecaux, 2010).
These examples show that for a start-up company with a limited budget, the only way
to finance the classical channels is to acquire a loan. Besides this being a burden for
the company in its uncertain starting situation it will be difficult to find a bank that
bears the risk.
4 Marketing Mix
40
Consequently, the only other option is to use alternative and cheaper advertising
channels. One of them is for example the internet. Apart a standard internet page of
the company, especially in the last years, it has become more and more important to
get active in the internet networks and communities like Facebook and Twitter. There
is hardly any brand nowadays which is not showing presence in these communities.
This medium gives a company the chance to perform customer care and to get
feedback by means of a more personal interaction with their customers. Furthermore
the integrated function of recommending a Facebook page to friends and other users
is a chance to start a kind of chain reaction and to spread the information of a new
product in an effective, free way. Another useful function is to found a group within
the communities, which can be seen as a fan club people can join. Analogies in the
market like Premium Cola show that this channel can be used to make your product
public without having a big budget. With daily activity on their internet pages, the
brand informs the fans about the progress of the start-up and even can win people in
other cities for helping them to spread their product. Therefore Premium Cola
developed the before mentioned concept in which a supporter gets a share of 4 cent
per cola bottle for continuous customer care(Lübbermann, 2011).
Targeting vegetarian and vegans internet forums can also be seen as an opportunity.
Postings in the main forums about the new lemonade, done by private persons can
arouse the target groups’ interest. But it has to be considered that it can lead into the
opposite effect when it is done too obviously.
Another opportunity to promote a product without direct advertisement is involving the
press. The goal is to contact editors and journalist who might write an article about
the new lemonade. Sending product information letters or e-mails to local
newspapers, magazines from health-food shops or supermarkets and professional
journals for vegetarians or vegans is an effective way to call attention to the new
product. Especially magazines like Ökotest would be excellent for references and on
an inquiry by email (please see the appendix point 7.5) the magazine confirmed that
they do sometimes special tests with interesting new product alone. On the other
side, wholesalers and retailers are best to be reached with trade journals.
4 Marketing Mix
41
AN
ALO
GY
-Bio
nade
As Hamburg is a center of media, especially printed media (Stern, Spiegel, FZ, Zeit,
Manager Magazin, Brand eins). Bionade tried to draw the attention of the bigger
magazines and newspapers. To avoid the standard newsletter they tackled their
canteens. Because the chefs heard about the drink they took it into their shelves.
Then the journalists passed the bottles every day, drank it, talked about it and heard
rumors from their friends and relatives. Bionade got attention and multiple articles and
reports where published and broadcasted (Weiguny, 2009 S. 130 ff).
Conversations with experts have shown that it is also important to address promotion
material not just to end users but also to wholesalers and retailers. So information
material with handling details like pallet weight and case size is helping to support the
entry into the distribution channels. Trade fairs like BioFach would be also an
example for a place where you can contact the wholesalers and retailers with this
kind of information material. Once in the market, advertising material like little flyers,
posters and table displays for bars and shops where the lemonade is sold are a tool
to communicate your product to the end-user. In this way a customer does not need
to look into the menu to get notice of the product.
In the starting course of making the lemonade popular we also recommended to use
the university as a place to promote the product. Even if students are not exactly the
target group, using university events would be a cheap possibility to propagate
information about the Novel-Lemonade as well as the lemonade itself. The entrance
stamp on parties could be a good tool to bring the product into the peoples mind.
Especially because of the fact that it is an in-house product, the university might
support the introduction. For the same reason, the several canteens of the University
of Hamburg can be a good starting point of sale. With their help, it is possible to
reach a big amount of people and combined with selling the lemonade in an
introduction week for half the price, it will definitely be a good opportunity for
promotion.
For getting in contact with LOHAS it also has to be considered to target the weekly
bio markets of Hamburg. This is a place for people caring a lot about healthy and
biological food. Either going around and let people taste your product or having an
own stall would reach a big part of the target group. Investigations in customer
4 Marketing Mix
42
perception have shown that these personal tasting activities are an effective tool of
sales promotion (Hamm, et al., 2007).
The options of exploiting the alternative and affordable advertising channels
differentiated by targeting end-user or wholesaler and retailer are summarized in
Table 4-5.
Table 4-5: Options of promoting with alternative advertising channels
Source: Own representation
Additionally there are chances to promote your product with so called guerilla
marketing when the budget for advertising is short. These activities are often creative
ideas which are on the edge of legality. One idea of us is to work together with street
artists. In a not too obvious way they could integrate the lemonade in their paintings
around the city and spread a cult image. Another idea is to place cases of the
lemonade in different places or public transport vehicles of the city and leave them
alone; with the aim the product triggers the curiosity of people.
Summary
Given the limitations in budget of this start-up company, the promotion opportunities
are also constrained. Hence the best way to communicate the lemonade in the
beginning is to target the alternative advertising channels like internet and press.
With additional information material for sellers and advertising material at the point of
sale it would be possible to reach a sufficient group of possible customers. And finally
4 Marketing Mix
43
combined with activities in places like the university canteen, weekly bio markets and
trade fairs there is a good chance to get the lemonade public.
5 Conclusion
44
5 Conclusion
5.1 Self Analysis
5.2 Recommendations
6 List of References
45
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Axel Springer BranchenBericht: FMCG 2009 [Report]. - Berlin : Axel Springer Media Impact, 2009.
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Baggs Charles Balancing taste: one chef reviews basic tastes of sweet, salt, tart, bitter and the importance of providing harmony in a product [Online] // The bnet. - 09 2009. - 01 22, 2011. -http://findarticles.com/p/articles/mi_m3289/is_11_178/ai_n50156659/?tag=content;col1.
BioHandel Junge Bio Käufer [Article] // Perspektiven. - [s.l.] : BioHandel, 2007. - 07.
Bio-Siegel Information Centre How to Use the BioSiegel [Report]. - Bonn : Federal Ministry of Food, Agriculture and Consumer Protection, 2006.
BioVista BioVista Handelspanel. - 2007.
Boldt Kathleen more RADIO Media-Daten 2010 [pdf]. - http://www.more-events.de/content/download/230373/2788689/version/1/file : MORE Marketing Organisation und Radioentwicklungs GmbH & Co. KG, 2010.
Business Insights Innovations in Soft Drinks [Report]. - London : Business Insights Ltd, 2010. - p. 149.
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Dr. Lassek Eva Alkoholfreie Erfrischungsgetränke [Online]. - Bayerisches Landesamt für Gesundheit und Lebensmittelsicherheit, 03 11, 2008. - 01 17, 2011. -
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EARSANDEYES GmbH Bioprodukte in Deutschland - Marktstudie [Report]. -Hamburg : [s.n.], 2006.
Eickmeier Herbert Getränke im Trend [Article] // Ernährungs Umschau. -Darmstadt : [s.n.], 2009. - 6/09.
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Frommberg Laura Soziale Getränke - Trinken für den guten Zweck [Online]. -SPIEGEL online, 11 20, 2010. - 01 12, 2011. -http://www.spiegel.de/wirtschaft/unternehmen/0,1518,729949,00.html.
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Hamm Ulrich and Wild Sandra Perception and appraisal of sales promotion activities on organic products in [Conference] // 9. Wissenschaftstagung Ökologischer Landbau. - Kassel : Wild & Hamm, 2007. - Vols. http://orgprints.org/view/projects/wissenschaftstagung-2007.html.
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Kreiszeitung Oetker nimmt großen Schluck Bionade [Online]. - Kreiszeitung.de, 10 02, 2009. - 01 17, 2011. - http://www.kreiszeitung.de/nachrichten/wirtschaft-finanzen/oetker-nimmt-grossen-schluck-bionade-483823.html.
Leipold Dieter DE000004406087C1 [Patent]. - German patent office, 04 12, 1990.
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Lübbermann Uwe Premium Cola [Interview]. - Hamburg : [s.n.], 01 07, 2011.
Mintel International Carbonated Soft Drinks [Report]. - [s.l.] : Mintel International Group Ltd., 2010.
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Mojet Jos, Christ-Hazelhof Elly and Heidema Johannes Taste Perception with Age: Generic or Specific Losses in Threshold Sensitivity to the Five Basic Tastes? [Journal] // Chemical Senses. - [s.l.] : Oxford University Press, 2001. - Vol. 26. - pp. 845-860.
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Rauschenbach Olaf Leiter QS-Gruppe Carlsberg Deutschland [Interview]. -Hamburg : [s.n.], 12 14, 2010.
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7 Appendix
49
7 Appendix
7.1 Details about Vitamin B12
What is Vitamin B12?
Vitamin B12 is a water-soluble vitamin that is naturally present in some foods, added
to others, and available as a dietary supplement and a prescription medication.
Vitamin B12 exists in several forms and contains the mineral cobalt, hence
compounds with vitamin B12 activity are collectively called "cobalamins".
Why is Vitamin B12 necessary?
Vitamin B12 is required for proper red blood cell formation, neurological function, and
DNA synthesis during cell division. The input of B12 is essential for several vital
processes including the formation of DNA, RNA, hormones, proteins and lipids. It is
also essential in biochemical reactions for fat and protein metabolism.
If B12 deficiency occurs, DNA production is disrupted and abnormal cells called
megaloblasts occur, resulting in anaemia. Symptoms include excessive tiredness,
breathlessness, listlessness, pallor, and poor resistance to infection. Other symptoms
can include a smooth, sore tongue and menstrual disorders.
B12 is also important in maintaining the nervous system. Nerves are surrounded by
an insulating fatty sheath comprised of a complex protein called myelin. B12 plays a
vital role in the metabolism of fatty acids essential for the maintenance of myelin.
Prolonged B12 deficiency can lead to nerve degeneration and irreversible
neurological damage.
Vitamin B12 is released from the food by the activities of the hydrochloric acid and
gastric protease in the stomach. But in fortified foods and dietary supplements this
7 Appendix
50
step is not required. Approximately 56% of a 1 mcg oral dose of vitamin B12 is
absorbed by the body in optimum conditions.
Recommended Intakes
Intake recommendations for vitamin B12 and other nutrients are provided in the
Dietary Reference Intakes (DRIs). DRI is the general term for a set of reference
values used for planning and assessing nutrient intakes of healthy people. These
values, which vary by age and gender, include:
� Recommended Dietary Allowance (RDA): average daily level of intake sufficient to meet the nutrient requirements of nearly all (97%–98%) healthy individuals.
� Adequate Intake (AI): established when evidence is insufficient to develop an RDA and is set at a level assumed to ensure nutritional adequacy.
� Tolerable Upper Intake Level (UL): maximum daily intake unlikely to cause adverse health effects.
Table 7-1 lists the current RDAs for vitamin B12 in micrograms (mcg). For infants
aged 0 to 12 months, the established AI for vitamin B12 is equivalent to the mean
intake of vitamin B12 in healthy, breastfed infants.
Table 7-1: Recommended Dietary Allowances (RDAs) for Vitamin B12
Age Male Female Pregnancy Lactation0-6 months* 0.4 mcg 0.4 mcg7-12 months* 0.5 mcg 0.5 mcg1-3 years 0.9 mcg 0.9 mcg4-8 years 1.2 mcg 1.2 mcg9-13 years 1.8 mcg 1.8 mcg14+ years 2.4 mcg 2.4 mcg 2.6 mcg 2.8 mcg
* Adequate Intake
Sources of Vitamin B12
Food
The only reliable unfortified sources of vitamin B12 are meat, dairy products and
eggs. There has been considerable research into possible plant food sources of B12.
Fermented soya products, seaweeds and algae have all been proposed as possible
sources of B12. However, analysis of fermented soya products, including tempeh,
miso, shoyu and tamari, found no significant B12.
7 Appendix
51
Vitamin B12 is generally not present in plant foods, but fortified breakfast cereals are
a readily available source of vitamin B12 with high bioavailability for vegetarians.
Some nutritional yeast products also contain vitamin B12. Several food sources of
vitamin B12 are listed in Table 7-2.
Table 7-2: Selected Food Sources of Vitamin B12
Food Micrograms (mcg)per serving
Percent DV*
Liver, beef, braised, 1 slice 48.0 800Clams, cooked, breaded and fried, 3 ounces 34.2 570Breakfast cereals, fortified with 100% of the DV for vitamin B12, 1 serving 6.0 100
Trout, rainbow, wild, cooked, 3 ounces 5.4 90Salmon, sockeye, cooked, 3 ounces 4.9 80Trout, rainbow, farmed, cooked, 3 ounces 4.2 50Beef, top sirloin, broiled, 3 ounces 2.4 40Cheeseburger, double patty and bun, 1 sandwich 1.9 30Breakfast cereals, fortified with 25% of the DV for vitamin B12, 1 serving 1.5 25
Yogurt, plain, 1 cup 1.4 25Haddock, cooked, 3 ounces 1.2 20Tuna, white, 3 ounces 1.0 15Milk, 1 cup 0.9 15Cheese, Swiss, 1 ounce 0.9 15Beef taco, 1 taco 0.8 13Ham, cured, roasted, 3 ounces 0.6 10Egg, large, 1 whole 0.6 10Chicken, roasted, ½ breast 0.3 6
*DV = Daily Value.
DVs were developed by the U.S. Food and Drug Administration (FDA) to help
consumers determine the level of various nutrients in a standard serving of food, in
relation to their approximate requirement for it.
The DV for vitamin B12 is 6.0 mcg. However, the FDA does not require food labels to
list vitamin B12 content unless a food has been fortified with this nutrient. Foods
providing 20% or more of the DV are considered to be high sources of a nutrient, but
foods providing lower percentages of the DV also contribute to a healthful diet.
Dietary supplements
In dietary supplements, vitamin B12 is usually present as cyanocobalamin. Existing
evidence does not suggest any differences among forms with respect to absorption
7 Appendix
52
or bioavailability. However the body’s ability to absorb vitamin B12 from dietary
supplements is largely limited by the capacity of intrinsic factor. In addition to oral
dietary supplements, vitamin B12 is available in sublingual preparations as tablets or
lozenges.
Prescription medications
Vitamin B12 can be administered parenterally as a prescription medication, usually
by intramuscular injection. Parenteral administration is typically used to treat vitamin
B12 deficiency caused by pernicious anaemia and other conditions that result in
vitamin B12 mal-absorption and severe vitamin B12 deficiency.
Vitamin B12 is also available as a prescription medication in a gel formulation applied
intra-nasally, a product marketed as an alternative to vitamin B12 injections that
some patients might prefer.
Groups at Risk of Vitamin B12 Deficiency
The main causes of vitamin B12 deficiency include vitamin B12 mal-absorption from
food, pernicious anaemia, postsurgical mal-absorption, and dietary deficiency.
However, in many cases, the cause of vitamin B12 deficiency is unknown. The
following groups are among those most likely to be vitamin B12 deficient.
Older adults
Individuals with atrophic gastritis are unable to absorb the vitamin B12 that is
naturally present in food. Most, however, can absorb the synthetic vitamin B12 added
to fortified foods and dietary supplements. However, some elderly patients with
atrophic gastritis require doses much higher than the RDA to avoid subclinical
deficiency.
Individuals with pernicious anaemia
Pernicious anaemia, a condition that affects 1%–2% of older adults, is characterized
by a lack of intrinsic factor. Individuals with pernicious anaemia cannot properly
absorb vitamin B12 in the gastrointestinal tract. It is usually treated with intramuscular
vitamin B12.
7 Appendix
53
Individuals with gastrointestinal disorders
Individuals with stomach and small intestine disorders, such as celiac disease and
Crohn's disease, may be unable to absorb enough vitamin B12 from food to maintain
healthy body stores. Subtly reduced cognitive function resulting from early vitamin
B12 deficiency might be the only initial symptom of these intestinal disorders,
followed by megaloblasticanaemia and dementia.
Individuals who have had gastrointestinal surgery
Surgical procedures in the gastrointestinal tract, such as weight loss surgery or
surgery to remove all or part of the stomach, often result in a loss of cells that secrete
hydrochloric acid and intrinsic factor. This reduces the amount of vitamin B12,
particularly food-bound vitamin B12, which the body releases and absorbs. Surgical
removal of the distal ileum also can result in the inability to absorb vitamin B12.
Vegetarians
Strict vegetarians and vegans are at greater risk than lacto-ovo vegetarians and non-
vegetarians of developing vitamin B12 deficiency because natural food sources of
vitamin B12 are limited to animal foods. Fortified breakfast cereals are one of the few
sources of vitamin B12 from plants and can be used as a dietary source of vitamin
B12 for strict vegetarians and vegans.
Pregnant and lactating women who follow strict vegetarian diets and their infants
Vitamin B12 crosses the placenta during pregnancy and is present in breast milk.
Exclusively breastfed infants of women who consume no animal products may have
very limited reserves of vitamin B12 and can develop vitamin B12 deficiency within
months of birth. Undetected and untreated vitamin B12 deficiency in infants can
result in severe and permanent neurological damage.
7 Appendix
54
7.2 Competitive products
Table 7-3: Summary of competitive products
ALOHA
Pro
duct
Competition Wider competitorProducer International Brand Germany Gmbh& Co KGHealthinessvalue 1,5Retail price 1,80€ / liter
Com
pany Company size Small
Sales area Northern Germany, HH & Berlin
Other Young company, trendy, aiming at young customers
now
Pro
duct
Competition DirectcompetitorProducer Neumarkter Lammsbrauerei GmbHHealthinessvalue 3Retail price 2,40€ / liter
Com
pany Company size Medium (familybusiness)
Sales area Germany, biomarkets
Other
[biolimo]
Pro
duct
Competition DirectcompetitorProducer Voelkel GmbHHealthinessvalue 5Retailprice 2,40€ / liter
Com
pany Company size Medium
Sales area Germany, biomarkets
Other One of the first companies in the bio drink section
Bionade
Pro
duct
Competition DirectcompetitorProducer Bionade GmbHHealthinessvalue 4,5Retail price 2,22€ / liter
Com
pany Company size Big
Sales area International (EU;US;Asia)
Other Cult status, established the segment bio-lemonade
Vitamalz
Pro
duct
Competition Wider competitorProducer Vitamalz GmbH & Co. KGHealthiness value 2Retail price 1,50€ / liter
Com
pany Company size BigSales area Germany
Other Sportive image, brewed by the „Vitamalzverband“
7 Appendix
55
AktivMalzP
rodu
ctCompetition Wider competitorProducer NeumarkterLammsbrauerei GmbHHealthiness value 2Retail price -€ / liter
Com
pany Company size Medium
Sales area Germany
Other Sportive image, brewed by the „Vitamalzverband“
Source: Own representation
7 Appendix
56
Figure 7-1: Table for the Comparison of competitive products
Source: Own representation
7 Appendix
57
7.3 Blind Tasting Questionnaire
Figure 7-2: Table of the Blind-tasting questionnaire
Source: own representation
7 Appendix
58
7.4 Blind Tasting Comments
Table 7-4: Comments reported in the dedicated boxes of the questionnaire
Source: own representation
7.5 E-mail contact: Ökotest
-------- Original-Nachricht --------
Betreff: Re: Fwd: Anfrage für studentisches ProjektDatum: Thu, 23 Dec 2010 10:02:32 +0100Von: Susanne Düsterhöft <[email protected]>An: [email protected]
Sehr geehrter Herr Brücher,
wir testen grundsätzlich nicht auf Anfrage, unsere Redaktion wählt die Produkte eigenständig für jeden Test nach verschiedenen Kriterien aus: Was sind die Marktführer? Gibt es Alternativen bzw. Bioprodukte? Was interessiert die Leser? Hier noch weitere Infos dazu:
http://www.oekotest.de/cgi/index.cgi?artnr=10584;gartnr=91;bernr=23;seite=01;co=
Bei neuen, interessanten Produkten machen wir aber auch manchmal Einzeltests. Wenn das Produkt für Verbraucher käuflich zu erwerben ist, können Sie uns gerne eine Produktinfo schicken. Wenn es der Redaktion interessant erscheint, würden wir das Produkt selbst einkaufen und testen lassen.Wir machen grundsätzlich keine reine "PR" für Produkte, das heißt wir stellen grundsätzlich keine neuen Produkte ohne Untersuchung vor.
Mit freundlichen GrüßenSusanne Düsterhöft
Assistenz Geschäftsleitung/[email protected]: 069/97777-201Tel: 069/97777-133 (Presseanfragen)Fax: 069/97777-189
ÖKO-TEST Verlag GmbHKasseler Strasse 1a60489 Frankfurt