Universidad de El Salvador

Economics Faculty

International Marketing School

Teacher:
Henry Castillo
Subject:
English IV
Theoretical group:
#06
Topic:
Modification of an existing product
Group members:
Karen Mireya Larios Ayala LA17037
Roxana Marina Escobar De León ED17003
Orlando Javier Montano Ramírez MR17143
Juan José Rodas Escobar RE09020
Katherine Elizabeth Terezón García TG17011

El Salvador, San Salvador, Ciudad Universitaria November 16

 Contenido
INTRODUCTION ................................................................................................................................... 3
OBJECTIVES.......................................................................................................................................... 4
ABOUT THE PRODUCT ......................................................................................................................... 5
SIZES AND PRICES ................................................................................................................................ 6
BENEFITS WHEN DRINKING ORANGE JUICE ........................................................................................ 7
WHY HAVE WE SELECTED THIS PRODUCT? ......................................................................................... 7
IDENTIFICATION OF THE PROBLEM ..................................................................................................... 8
MODIFICATION TO THE PRODUCT ...................................................................................................... 9
MARKETING MIX STRATEGIES ........................................................................................................... 10
Product: ......................................................................................................................................... 10
Price:.............................................................................................................................................. 11
Promotion: .................................................................................................................................... 12
Place: ............................................................................................................................................. 13
MARKETING FAILURES....................................................................................................................... 14
CONCLUSION ..................................................................................................................................... 15
RECOMMENDATIONS ........................................................................................................................ 16
 INTRODUCTION

In the present report, a marketing contribution is provided aimed at increasing sales of the
product. "Judo de Naranja" from the Embotelladora Cascada SA de CV, due to the decrease in
sales, either as a result of the great competition it has, or due to other factors such as quality,
taste, price, little time advertising, bad image among other indicators.

Therefore, it is where a repositioning strategy for the commercialization of this product is

presented. With the purpose of increasing the volume of sales, developing a medium-term plan
that helps reposition the brand in the minds of its consumers. Having to make use of "emergency
campaigns", used regularly when sales fall, can give results. Different that can show very
significant monetary consequences as well as positive or negative.

The preferences of the clients are analyzed and improvements are implemented in them that
basically keep the product in a medium term that has constant positive changes. Between the
different pages is a varied range of information about orange juice in the country and outside the
country.

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 OBJECTIVES

 GENERAL OBJECTIVE

Develop and propose modifications on a product that can contribute to increase

sales and re-position itself effectively in the market, in this case CASCADA
NARANJA.

 SPECIFIC OBJECTIVES

1. Propose another name and price for the product we have selected (CASCADA
NARANJA) that can be more attractive for the current costumers.

2. Implement promotion strategies that probably help us to obtain more sales and
overcome the competence.

3. Search if the product (CASCADA NARANJA) has suffered failures and explain how
solve them.

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 ABOUT THE PRODUCT

Is an orange juice produced by Embotelladora La Cascada SA that is a salvadorean

company since 1947 on Santa Ana deparment.

ORANGE JUICE:

Noncarbonated beverage
Container type: PET Bottle
Content per container:
Agua tratada, Sugar, citric acid(as acidulant).
Natural and Artifitial orange flavor,
Xanthan Gum (as stabilizer).
Potassium sorbate and sodium benzoate (as preservatives).
Ascorbic acid (as vitamin c)
Aspartame and Acesultame K (as sweeteners)
FD & C dyes No5 and No6. PKU: Contains Phenylalanine.

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 SIZES AND PRICES

PRICES

12 OZ $0.25

1 LITRO $0.60

2.5 LITROS $1.35

Currently they export to Nicaragua, Guatemala, and the United States. In Nicaragua, they
distribute a subsidiary company through DIBECA, which has its own fleet of trucks, which
covers more than 15,000 points of sales. In Guatemala, the products are marketed
through strategic partners, with whom alliances have been formed, achieving constant
commercial growth.

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 BENEFITS WHEN DRINKING ORANGE JUICE

The bottling company carries out an investigation in which we find the following benefits
that would help us to have a certain advantage to increase our sales of Cascada orange
juice:
1. + The vitamin C that the oranges have increases the collagen, which is responsible
for keeping the tissues in perfect condition
2. + Eating orange juice between meals reduces the risk of indigestion, abdominal
dissension, which are factors that affect the liver
3. + It allows to reduce colds in a constant way.

WHY HAVE WE SELECTED THIS PRODUCT?

We chose this product because during the last couple of days it has been outstanding in
comparison to other similar products. For example Del Valle Naranja which was brought in
by Industrias La Constancia, it was well accepted by consumers of this type of drink,
causing la Cascada naranja low sales.

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 IDENTIFICATION OF THE PROBLEM

 Problem 1

Image error

Be careful with fonts. The message itself is important, of course, but the letter we choose
will also have a decisive influence on the outcome of our texts. Do not be in a hurry to
choose a typeface for your brand image.

Problem 2

Focus on the price

Of course, the price is a very important variable, but it is not the only one. However, we
act as if it were.

Lowering the price is not the solution

(1) Because there are too many discounts every day and in all products (including our
competitors), we lost the ability to surprise us, and

(2) Because if there is no real purchase need, why should you buy it if you do not need it,
for cheap? There are other options and other priorities to spend the money.

It is not that it is not possible to compete with a discourse of low prices. The problem is
that it has its consequences:

• All offer discounts, so they became "landscape" for customers.

• Attract price buyers, not value. What for price comes, for price goes.

• There will always be someone willing to lower it more than you, so it will be a temporary
"advantage".

• It will have enormous pressure to remain "economic", even when its inputs or operating
costs go up.

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 MODIFICATION TO THE PRODUCT

NAME OF THE PRODUCT:

CASCADA NARANJA

We believe that “Cascada Naranja” is a bored name; instead “narancascada” is a funny

name and can to attract more customers.

PRICE:
We are not focused in only one presentation and we have different prices. However, we
consider a 0.5-0.10 cents reduction in all presentations, which could trigger an impact in
the consumer's mids through the publicity.

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 MARKETING MIX STRATEGIES

PRODUCT:

Product refers to the goods or services you are offering. You might consider a range of
factors such as packaging, labelling, branding and quality when developing your product.

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 PRICE:

Setting a suitable price for your products or services will help you to be profitable and stay
competitive. Start by including all the costs associated with producing and delivering your
products and services, then research your target market to determine how much they
would be willing to pay. If there is a gap you have more work to do – perhaps reducing
your costs or focussing on a different market.

Cascada Naranja Lata 12 oz. U$D 0.30

Cascada Naranja 12 oz. U$D 0.25

Cascada Naranja 2.5 Lt. U$D 1.35

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 PROMOTION:

Promotion refers to the methods you will use to advertise and sell your products and
services.

 Website: http://www.lacascada.com.sv/es/inicio.php

 Social media:

Embotelladora La Cascada S.A. on facebook.

@lacascada_sv on Twitter.

 Brochures and flyers.

 TV, radio or print advertising.

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 PLACE:

This aspect of marketing refers to how your customers will be able to purchase your
products or services.

Distribution centers:

In order to give the best service to our customers, we have a fleet with more than 300
vehicles among there are: 8 and 12 tons capacity trucks, dredges and containers for 40
feet. Thanks to we mentioned before we got an in-time efficient delivery of the product,
ensuring it be properly packaged and protected in order to reach its destiny in optimal
conditions.

Our sales team with their effort, tenacity, commitment and pride, make daily our products
portfolio to more than 50,000 outlets allowing us to get on each of the 252 El Salvador
towns, extending our product hand over the country.

We are present in the national and international supermarkets main franchises and are
suppliers of membership warehouses, convenience stores, wholesale stores and retailers.

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 MARKETING FAILURES

2. Too little market attractiveness: Maybe nowadays, La Cascada is not in the high way
because of their market or how they are showing their products. Like we said it before,
the name of “Cascada Naranja” is boring and it doesn´t have a good image for caption all
people attention.

5. Poor product quality on critical factors: In face of competition, such as Del Valle, La
Cascada fell down. Its quality was affected by the great offer that has been created.
Maybe it doesn´t mean that La Cascada don´t have good quality but in front of the
competition, they are down.

Marketing failures:

 Bad publicity.
 Unattractive packaging and disclosure.
 Research and segmentation badly performed
 Distribution channels and marketing obsolete and ineffective.

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CONCLUSIONS

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 RECOMMENDATIONS

Implement processes of continuous improvement, since experience has been proving, for many
years, that it is the best way to achieve a gradual and constant increase in quality, productivity and
efficiency.

Conduct a market study in areas where there is no presence of the product, and decide whether to
enter the market or not.

For advertising to have the expected results, it is not enough to advertise or launch an advertising
campaign once and then forget about it, but it is necessary to remind consumers of the products
or services and persuade them to buy or buy them constantly.

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