ASSIGNMENT INSTRUCTIONS:

Big Kola Company has been concerned that specialized fruit drinks

have been eroding their cola market.

The CEO mandates that "If you can't beat them, join them." Grape

juice was the first product that was successful after an advertising

blitz claiming the antitoxin benefits.

Lately, competition is compressing grape juice margins and profits.

Months of additional market surveys and focus groups have resulted

in three potential high-margin drinks: cranberry, blueberry, and

pomegranate.

All these choices represent antitoxins. The decision is to produce

the pomegranate drink that has many health claims.

For example, the relative ability of these juices to eliminate

harmful free radicals (antitoxins) is 71 percent for pomegranate, 33

percent for blueberry, and 20 apercent for cranberry (Technion

Institute of Technology).

The market potential appears very attractive and should have a

higher profit margin than the other potential juice products.

Another appeal for pomegranate juice is its familiarity in the

Middle East and Asia.