NANTUCKET NECTARS

HARVARD BUSINESS
SCHOOL
Group Members :

Fadilah Bin Umar

Mohd Fadzli Bin Ismail
Kamsar Bin Muhamad Bahron
Mohd Hafizul Hilmi Bin Mohd
Noor
STRENGT
H Increase Profit
 STRENGT
H
Brand and Promotion
• Established brand – has its own trademark
• Creative but minimum cost of promotion style
– donation of product only
• Salespeople dress up as fruit
• Promote through radio
• Symbol of company on cap bottle
 STRENGT
H
Product Development
• Replacing high fructose corn syrup with only
pure cane sugar
• Containing four times the juice of other major
brands
• increasing 12 to 17.5 ounce bottle (other
competitor – 16 ounce bottle)
• Developing 27 flavors across 3 product line
 STRENGT
H
Super Nectars
• Herbal products
• 6 flavors
o 4 - 80% real juice
o 2 - steeped from green tea and flavored with
real fruit juice and honey
•
STRENGT
H Product Marketing
 WEAKNESS
Raw Fruit Supplier
• Nantucket Nectars selective on quality ingredient, use
more fruit in product
• Cause themto compete with big companies in
beverages industry
• Management has difficulty to predict the growth of the
company
• Cannot get contract from fruit supplier to maintain
continuous fruit supply from a specific harvesting
plantation.
q Eg: when cranberries has a poor harvesting,
Nantucket Nectar has a difficulty in getting this
raw fruit supply since it is control mostly by Ocean
Spray.
 WEAKNESS
Product development
• In early days, Nantucket product development is
too drastic.
qAdding 27 new flavors on their product line.
qThis increases money spends and the
management has difficulty in predicting the
profit growth of the company.
• They should start it slow by doing a test market
first before adding any new flavor
qSo that money can be spend on the promotion
and marketing purposes.
•
 WEAKNESS
Increasing Liability
• The liabilities of Nantucket Nectar Company
keep increasing every year.
 WEAKNESS
Decreasing in revenue growth
• The revenues growth of Nantucket Nectar decreases.
• The selling actually does not recover the total money
use in whole processing of Nantucket Nectar
product.
OPPURTUN
ITY
 OPPURTUN
ITY
Bidders :
Give an advantages to the
company.

Example :
Seagram (Tropicana) is the
strongest distribution in the
grocery segment for juices. So
that, by using it as an
opportunity, it can be a strong
platform for Nantucket Nectar
to expand.
 TREAT Competition

Major beverages company flood the market by lowering the price while maintain
the quality of the product.

Big company such as Cola and Pepsi control the market by numerous ways:
• Vending machine
• Shelf space
• Distributors
• Brand awareness of the
public concerning

Proved by most of Nantucket Nectar Sales are

from fragment channel.
 CONCLUSI
ON
§ Should not sell the company totally.
§ The major problems are in marketing, raw fruit resources, and
management.
§ Decesion : Nantucket Nectar should
üMaintain 70% of the company ownership equity
ü30% of the company ownership should be given to
other
potential bidders that have strength in marketing and raw
fruit material.
§ One of the suitable bidders for this 30% ownership is Seagram

(Tropicana)
üThe strongest distribution in grocery segment for juice
üHas well and balance raw fruit
 CONCLUSI
§ ON
Ocean Spray is also one of the suitable ownership of the
30% company ownership.
üHas many fruit supply from berries, tropical and
other exotic fruit that serve as an alternative drinking
juice.
üMaintain a network of 5 captive bottling
companies
which can help Nantucket Nectar to cut several cost
on the marketing and juice processes.