Green Ox

Abstract

”Green Ox” was written specifically for a midterm exam in an MBA marketing management class. Rather than focus on one particular concept or issue (e.g., segmentation, product line depth), the case challenges students to develop a marketing strategy for a food and beverage manufacturer's new line of sports beverages, which contain beneficial antioxidants. Focal decisions include choosing a segmentation scheme(s) and a specific target segment(s) and articulating a positioning statement(s) for the new product—all in light of market trends, customer information, and competitor positions. Students must also make recommendations regarding the product name, number of products in the line, and the price (including a break-even analysis). Distribution and promotion issues are downplayed, yet there is sufficient information to determine whether students' recommendations on the larger issues account for the necessary integration of the 4Ps.

Excerpt

UVA-M-0722

Rev. Jul. 6, 2018

Green Ox

Overview

In the fall of 2003, the new products division of Palmer Jackson, Inc., a Cincinnati-based food and beverage manufacturer, successfully perfected a technique for dissolving common antioxidants such as Vitamin E and Selenium into high-glucose beverages. The result was a new line of sports beverages with the added benefit of antioxidants. While the medical community was far from unanimous in its opinion of the benefits of antioxidants, some reputable studies linked the use of these vitamins and minerals to a reduced risk of certain types of cancers. Natural food stores, health food stores, drug stores, and even conventional grocery retailers often carried antioxidant pills.

Palmer Jackson hired AccuityBrand, a brand consultancy specializing in developing product names and logos, to name and develop creative packaging for this new product. AccuityBrand recommended the name Green Ox for the new beverage, and after a short discussion with management, that name was adopted.

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Keywords: exam case, marketing strategy, segmentation scheme, target segment, segmentation, positioning statement