Forum Archive Index - May 2000

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>>
>>>  While in the hospital i did notice something interesting. All
>>>the meals were accompanied by drinks manufactured by frucor.
>>>Fresh up, Just juice and Mc coys. I had my first (and last)bottle 
>>>of  V today.
>>>    At 2.85 for a small bottle it seems on the pricey side.
> 
>> Yes, my bartending / varsity student son says same thing: V is 
>>far too  expensive for the target demographic. And since V is 
>>a cornerstone of  Frucor's amazing forcasts of amazing profits ... 
>> nick
>>
>. Conclusion: Students
> at Victoria LOVE 'V'.  It most certainly is NOT far too expensive
> for the target demographic.  The closest competitor (Lift+) competes
> on price ($2.30-$2.50) and is getting NOWHERE in the market.  I
> wonder how much it has hit the secondary student market?
> 
> Oliver
> 
I think that these posts reflect the view that when a product that we 
can all see and touch comes onto the sharemarket, we all tend to 
judge the potential success or otherwise of the float on our taste 
(pun intended)  for the product.

'V' is both cheap, as a substitute for a cappachino, and expensive as 
a substitute for a can of Coke.  It doesn't matter that people don't
agree.  'V' isn't for 'everyone'.  It has its own target 
market and without doubt the 'Frucor' marketing people have 
identified that very well.   They identify a group of people ('target 
market') that sees V as value, and market to them.   It has other 
products for the doubters.

This is what good marketing people do.    They identify a target 
market that will willingly pay a premium for a product that satisfies 
their needs.  And since they have already beaten back Lift+, backed 
by CocaCola money, into submision I don't think you can really argue 
that they don't know what they are doing.

There are reasons for being circumspect about the Frucor float, but I 
don't think that lack of confidence in 'V' andf Frucor's ability 
to market it,  is one of them. SNOOPY


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