Report on Sunny Delight Business Development Proposal

Sunny D is one of the famous beverage brands in the United States. It is basically a brand, which makes a juice drink with some flavor added to it. The company started its business in 1964 from Florida. The first drink of the company was a citrus drink. One of the latest reports has revealed that the size of the United States soft drinks market will reach the level of $388.4b until 2025. The fact of the matter is that the market is propelling because the population is growing, and they are much more interested in using soft drinks and beverages. The company has come up with various re-launches, but they could not be successful since then, and Sunny D has been struggling as a brand to get its attention and trust back from consumers. It is recommended to Sunny D that they should involve in extensive marketing efforts to re-launch by coming up with a CBD drink and tell people that they have now made a drink, which is good for their health. They should come up with different sizes and packaging, and cover every marketing channel to market the product. After looking at different trends, forecasts and opportunities in the industry of soft drinks and beverages, it can be said that Sunny D has a great opportunity in hand to re-launch its new drinks in the market.

Sunny Delight Business Development Proposal

Background/Challenges/Objectives of Sunny Delight Business Development Proposal

               It is a fact that the soft drinks and beverage industry have been one of the best growing industries in the world. The trend of having soft drinks and beverages in daily life has been increasing with the passage of time, and now it has become a major part of daily modern life. That’s why the industry is getting bigger and bigger. The same is the case with the U.S soft drinks and beverages industry. One of the latest reports has revealed that the size of the United States soft drinks market will reach the level of $388.4b until 2025. The fact of the matter is that the market is propelling because the population is growing, and they are much more interested in using soft drinks and beverages. Moreover, lower prices and easy availability is another factor to increase sales in the soft drinks industry. The carbonated drinks market has been involved in extensive growth, and now it is expected that RTD tea drinks segment is also going to grow faster than any other segment (MarketWatch, 2018)

               Sunny D is one of the famous beverage brands in the United States. It is basically a brand, which makes a juice drink with some flavor added to it. The company started its business in 1964 from Florida. The first drink of the company was a citrus drink. The drink got a good response from the consumers, so the company started to increase its production, and more plants were opened at different locations in the coming years. In 1978, one plant was started in California, and one more plant was started in 1978 capturing the Ohio location (Aguecheek, 2003). The company had great success for so many years around the United States. But this success factor started to go down, and sales & revenue of the coming started to decrease. One incident played its part in it. A girl was turned in yellow color after consuming too much intake of Sunny D. However. It was later found that the yellow color of a girl was due to excessive amounts of Sunny D, which contained beta carotene, which was not actually harmful to humans. The company tried its best to tell people that drink had nothing done anything wrong with the girl, but still, no one accepted, and sales of the drink went lower and lower. Every effort of the company was in vain, and company had given up after making all the efforts in 2003 (Zitser, 2016)

               The company has come up with various re-launches, but they could not be successful since then, and Sunny D has been struggling as a brand to get its attention and trust back from consumers. This is the real problem for the company that sales have gone down, and they have not been able to pick it up. It is a fact that beverages around the globe and in the United States have been doing well and many companies have gained so much success. So it’s time for Sunny D to capture various opportunities provided by the soft drinks and beverages industry. The soft drinks market has more great potential to grow and it is expected that consumers will like new tastes and brands in the future as well, which is a positive sign for Sunny D.

Solution for Sunny D

               It is true that the company has not been able to get any considerable attention from consumers since it went down as a brand due to the old scandal, but there have been many brands, which recovered from such positions. It has been observed that various new soft drinks and juices are getting popular amongst consumers, and one of such drinks is CBD beverages. The data has shown that the CBD beverages market is growing faster and it is expanding all over the world. This drink is made from cannabis, and it is expected that the market will grow to the level of $260m. It has also been observed that bigger brands are taking an interest in making CBD drinks. It is important to know that cannabis-infused drinks are different from medical cannabis so it can be used anywhere, which gives it a great opportunity to grow. Moreover, cannabis is being legalized all over the United States and people are interested in buying these products (Sigerson, 2019).

               Moreover, it has been revealed that CBD drinks are safer to drink as compared to other soft drinks and carbonated water drinks. Those drinks have a high intake of sugar in it, whereas there is no such issue with the CBD drinks. That’s why, people in the United States are leaving to use soda drinks and soft drinks, and they are giving preference to CBD beverages. It has been told that the use of CBD is good for health in so many ways as it can help in relieving chronic pain, anxiety, etc. Looking at these health benefits and growing popularity of the CBD beverages, it is recommended to Sunny D that they should re-launch itself with a new brand, where they should come up with a CBD based drink, as it will gain trust and attention of the consumers (The Growler Guys, 2019)

Marketing of Sunny Delight Business Development Proposal

               It is recommended to Sunny D that they should involve in extensive marketing efforts to re-launch by coming up with a CBD drink and tell people that they have now made a drink, which is good for their health. They should come up with different sizes and packaging, and cover every marketing channel to market the product. The company should use social media marketing as its main source of marketing and branding because digital communication & marketing has great potential for them to give them their position back in the beverages market. They can launch different campaigns on social media platforms to engage consumers before the launch of their new drink. They can come up with new contests and campaigns to get people involved. This is how they can get more and more attention to the market segment of the soft drinks and beverages industry.

Fig.1 - Available Sizes of New Sunny D Drink

Fig.2 – Proposed Design of New Drink

Conclusion of Sunny Delight Business Development Proposal

               After looking at different trends, forecasts and opportunities in the industry of soft drinks and beverages, it can be said that Sunny D has a great opportunity in hand to re-launch its new drinks in the market. So, they should come up with CBD based drinks, as this industry is growing and consumers are showing more interest in CBD based drinks due to health benefits. They are leaving the use of soft drinks and soda drinks, which means that the next boom in the soft drinks industry will be for CBD based drinks and beverages.

References of Sunny Delight Business Development Proposal

Aguecheek, A. (2003). Sunny D. Retrieved November 23, 2019, from https://everything2.com/title/Sunny+D

MarketWatch. (2018). United States Soft Drinks Market 2018-2025: Analysis & Forecasts for the Future $388 Billion Industry. Retrieved November 23, 2019, from https://www.marketwatch.com/press-release/united-states-soft-drinks-market-2018-2025-analysis-forecasts-for-the-future-388-billion-industry-2018-11-07

Sigerson, J. F. (2019). Three reasons the CBD beverage market is exploding and driving innovation. Retrieved November 23, 2019, from https://channels.theinnovationenterprise.com/articles/3-reasons-the-market-for-ready-to-drink-cbd-beverage-is-exploding-and-driving-innovation

The Growler Guys. (2019). HEALTH BENEFITS OF KOMBUCHA AND CBD BEVERAGES THAT YOU SHOULD KNOW. Retrieved November 23, 2019, from https://www.thegrowlerguys.com/health-benefits-of-kombucha-and-cbd-beverages/

Zitser, J. (2016). Whatever happened to Sunny Delight? Retrieved November 23, 2019, from https://thetab.com/uk/2016/06/10/whatever-happened-sunny-delight-1810