Task 1 - Characterization of Rynkeby Foods A/S
Task 2 - Internal Conditions
Task 3 - Promotion Parameter
Task 4 - discussion
- It is a weakness that Rynkeby Foods A/S only to a limited extent produces private label.\
- The company’s competitive position is a competitive advantage for Rynkeby Foods A/S.
- The current health trend is a major opportunity for Rynkeby Foods A/S.
- Keystrokes: 2398
Task 5 - Challenge and solutions
Rynkeby Foods A/S is a production company, that produces juice and smoothies. They operate on the B2B market.
Rynkeby was founded in 1934 in Rynkeby on Fyn. Rynkeby Foods is the largest manufacturer of juice in the Nordics.
They have 250 employees, who works primarily in the production. Arla and Carlsberg have previously owned 50% of Rynkeby Foods each, but in 2016, the German group Eckes-Granini bought the company.
Eckes-Granini is also the leading supplier of juice in Europe, and exports to 70 countries. Rynkeby has delivered an increasing turnover in the recent years, from 974 m. DKK. In 2015, to 1,026 m. DKK. In 2017.
Though the increasing turnover, Rynkeby Foods had a net annual result of -9 m. DKK. In 2017.
The CEO, Peter Frank Andersen, explains that this result is not satisfactory, but that it is due to the company’s new ERP system and a new high-speed line, which caused some increased costs.
Rynkeby Foods sells different variations of juices and has different brands. Their 3 biggest brands are God Morgen
which makes up 25% of their turnover, Brämhults which makes up 5% and then Rynkeby which makes up 70%.
Rynkeby Foods gets oranges delivered in 3 different ways, not-from-concentrate, concentrate and fresh.
The prices for concentrate are fixed on the commodity exchange and traded in dollars. This means that fluctuations in the dollar exchange rate will have an impact on the company.
Marketing director, Jørn Falk, explains that it is difficult to differentiate their products, which is why Rynkeby needs to think of good solutions in terms of production and delivery.
Rynkeby’s products are also easy to copy, so they also need to come up with solutions for that and how to advertise themselves.
Rynkeby Foods is required to follow law and orders given by the EU about aroma and flavor additives
this means that they are not allowed to add anything besides water and the aromas lost through processing and freezing due to transportation.
Even though Rynkeby Foods are owned by Eckes-Granini, Rynkeby are in charge of their own marketing, product development and innovation.
In 2017 Rynkeby invested in a new extraction plant in Ringe on Fyn, which is Rynkeby’s largest production facility.
The new plant created 50 new job opportunities within the company. When all juices and smoothies are bottled, it is Arla that distributes the products to all the customers.
When looking at Rynkeby’s marketing choices, then they mainly use TV promotion. The TV promotion is mainly used to market their “Rynkeby” brand
because this is the brand that has the biggest target group and is also their most successful brand. The TV ads used to promote “Rynkeby” is small movies
where we see Rynke the monkey, which has become Rynkeby’s face to the outside world. The ads often surrounds a kid, who is in the hospital
where Rynke the monkey also is. The kid has probably got cancer, which is why he/she is in the hospital.
The subject about cancer is where Rynkeby relates their cycling team with their juice and their ads. Rynkeby Foods have their own cycling team named “Team Rynkeby”.
The team completes a tour to Paris each year, in the good cause of raising money for children with cancer.
Rynkeby wants to combine their cycling team with their products and with Rynke the monkey. In terms of other uses of promotion, then it is very limited of what Rynkeby does.
They do use social media and outside advertisement, but not at all to the same extent as they do with TV ads. They also don’t use TV ads for their other brands like “God Morgen” and “Brämhults”.