grapefruit case
TRANSCRIPT
GRAPEFRUIT: A BIT OF FLORIDA IN EVERY BITE
Jacob Brennan
Jonathan Draper
Nam Nguyen
Keyana Robertson
PRESENTATION OVERVIEW
• Grapefruit Issues• SWOT• Chinese Demographic Opportunities/ Xiao Kang• Chinese Perception of Foreign Fruit• Consumption Preferences: Health, Gifting, Traditional Medicine• China Penetration Strategy Timeline/ Budget• Closing
ISSUES
Citrus industry struggling with citrus greening disease
Prescription medication interactions
SWOT - INTERNALSTRENGTHS
• Size• Sweeter Taste• Thinner Peel• Fresh from Florida Perception• Shelf Life• Existing Supply Chain
WEAKNESSES
• Declining Appearance• Greening• Limited Supply• Reduced Plantings• Drug Interactions
SWOT - EXTERNALOPPORTUNITIES
• Healthy Perception• Increasing Fruit Consumption• Imported Citrus Preference• Xiao Kang• Trending Fruit
THREATS
• Crowded Market• High Cost• Chinese Tariffs• Counterfeiting• Exchange Rates
COMPETITORS: FRUIT SPACE
GrapefruitCalifornia GrapefruitTexas GrapefruitIsraeli GrapefruitSouth African Grapefruit (Late Season)Pumelo
Other FruitAustralian cherries Mexican avocadoes Taiwanese custard apples US Apples Australian citrus Domestic kiwis Chilean cherries
DEMOGRAPHIC OPPORTUNITIES
XIAO KANG• Xiao Kang: Rising middle class
Chinese family working for joint ventures or wholly-owned foreign companies• owners of private enterprise, • self-employed• top managers of township
enterprises
• Health-Conscious Megatrend
DEMOGRAPHIC OPPORTUNITIES• 55.6% of total population is
considered urban • Major urban areas:
• Shanghai • Beijing• Chongqing • Guangdong• Tianjin• Shenzhen
GEOGRAPHIC OPPORTUNITIES
DEMOGRAPHIC OPPORTUNITIES
2012 2013 2014 $10
$12
$14
$16
$18 China's GDP and Per Captia Income
GDP (Trillions) GDP per Capital (Thousands)
FOCUS GROUP:HEALTH PREFERENCE
• A Baidu Baike search for grapefruit reveals the health-conscious megatrend of Xiao Kang.
• Many health-related terms on the Baidu grapefruit page:• “disease prevention”• “conducive to skin health and beauty”• “strengthen the skin pores function”• “grapefruit diet”
• Our interview with Chinese students demonstrated interest in the "grapefruit diet" aspect of grapefruit health effects.
FOCUS GROUP:GIFTING CULTURE
• Our interviews with Chinese students demonstrate that gifting is a large element of Chinese culture and Chinese love gifting nice fruits
• Imported fruit typical gift during festivals, visits with elderly, and hospital visits
• "Cherries have become a premium gift. But some sellers say even though cherry imports are at their height this year, they’re no longer the hot luxury fruit they were just last year"
• We believe this is a perfect opportunity for Florida grapefruit as the "next hot Chinese fruit"
FOCUS GROUP:TRADITIONAL HEALTH
• Yin and Yang Concept has important role in Chinese culture.
• Yin: Water, Cold, Stillness, and Weakness
• Yang: Fire, Heat, Movement, and Potency
• Grapefruit is cooling fruit representing Yin
• Desirable and Marketable for health perspective
TIMELINE
Year 1 – 3:Focus on E-tailers, Shanghai FTZ, Hong Kong, and Macau
Register groves with China
Develop partnerships with distributors
Year 4 – 5:Launch Fresh From Florida Marketing Campaign
EXPORT VOLUME
2011 2012 2013 20140
100
200
300
400
500
600
700
800
Grapefruit Export Volume to China
Florida South Africa
2011 2012 2013 20140
1000
2000
3000
4000
5000
6000
Grapefruit Export Volume to Japan
Florida South Africa
2011 2012 2013 20140
100
200
300
400
500
600
Grapefruit Export Volume to South Korea
Florida South Africa
2011 2012 2013 20140
50
100
150
200
250
300
350
Grapefruit Export Volume to Hong Kong
Florida South Africa
2011 2012 2013 20140
1000
2000
3000
4000
5000
6000
Grapefruit Export Volume to Japan
Florida South Africa
2011 2012 2013 20140
100
200
300
400
500
600
Grapefruit Export Volume to South Korea
Florida South Africa
2011 2012 2013 20140
50
100
150
200
250
300
350
Grapefruit Export Volume to Hong Kong
Florida South Africa
2011 2012 2013 20140
100
200
300
400
500
600
700
800
Grapefruit Export Volume to China
Florida South Africa
BUDGET
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
MARKETING $40,000 $80,000 $300,000 $400,000 $600,000
VOLUME 34 74 105 220 400
CONCLUSION
• Florida grapefruit in China represents a perfect marketing opportunity for Florida Citrus
• China is a wealthy, urbanized, age-diverse country that is untapped by Florida grapefruit
• Chinese demand for imported fruit is increasing• 5 Year Plan includes multilayered effort including connecting with
CAWA, selling in the Shanghai FTZ, marketing to multiple Chinese age groups