dole pomarils strategic marketing plan

Running head: GROUP 1 - DOLE POMARILS 1

STRATEGIC MARKETING PLAN

Brian Rowe, Dan Turck, Stephanie Muschall, Zainab Al-Skaikh, Vicke Kepling

Missouri State University – Marketing Management 772

May 2, 2013

GROUP 1 - DOLE POMARILS 2

TABLE OF CONTENTS

Strategic Marketing Plan - Situational Analysis

Executive Summary .........................................................................................................................4

Introduction......................................................................................................................................6

Industry Analysis .............................................................................................................................8

Company Analysis - SWOT ..........................................................................................................16

Competition....................................................................................................................................26

Objectives for the New Product Plan.............................................................................................44

Segmenting, Targeting, Positioning...............................................................................................46

Strategic Marketing Plan – Marketing Mix

Product Decisions ..........................................................................................................................52

Price Decisions...............................................................................................................................55

Place Decisions ..............................................................................................................................57

Promotion Decisions......................................................................................................................61

Attack and Defense Strategy..........................................................................................................71

Summary ........................................................................................................................................73

Appendix........................................................................................................................................74

References......................................................................................................................................78


SITUATIONAL ANALYSIS


EXECUTIVE SUMMARY

With continued success in the packaged fruit

industry, Dole will decide to use the available resources on

a new product in a category similar to its current offering. The product will be called Dole

POMARILS. The main competitors in this category include Del Monte, Chiquita, and. POM

Wonderful. These direct competitors have worldwide reach, but POMARILS will initially be

released in the United States. Dole currently owns farmland in California and Florida that

provide the necessary climate for pomegranate growth. Growing the product domestically will

provide an advantage, as the distribution network of the final product will be shortened.

The SWOT analysis indicated that Del Monte, Chiquita, and POM Wonderful are very

similar to Dole in what options are available in this industry. Del Monte, Chiquita and Dole have

established themselves as industry leaders with POM Wonderful gaining market share more

recently. POM Wonderful has capitalized on the recent focus on nutrition by using

Pomegranates, a large source of nutrients, as the foundation for its juice line. Chiquita is

appealing to consumer interests through selling fresh, bagged, and air-crisped fruits and

vegetables. Del Monte products offer the closest similarities to what will be known as Dole

POMARILS. However, Dole plans to be the first to release pomegranate arils in a convenient to-

go cup. This product will capture clientele with personal health interest as well as create the

possibility of expanding this fruit into other current Dole fruit products.

There are several closely-segmented categories that the fruit cups will fit into. Dole has

selected three areas of concentration. This consumer segmentations would include middle-aged

(greater than 25 years old), household income (greater than $45,000), and occupation (typically

office workers). A possible fourth segmentation would be in the Northeastern region of the


United States. It is possible to focus the company message to consumers who have been out of

college for at least two years. These individuals have the highest probability of fitting into all

three segmented categories. Developing a message for this type of individual will make it

possible to influence the top targeted markets.

Dole POMARILS will be positioned in the health food category that provides on-the-go

convenience, while keeping the price low. There will be aggressive advertising through mediums

that are often used by the target market. The products will slowly capture shelf space of Dole’s

lesser sold products. There will also be coupons distributed in local advertisements and at point-

of-purchase displays to overcome some of the resistance to first time purchasers. The cost of

distribution will be less than most competitors and comparable to the top three competitors. This

reduced cost will be reflected in product pricing in order to undercut competition. The package

itself will be two cups, each containing two ounces of pomegranate seeds, held together with

appealing packaging. It will be possible to adapt serving size and the amount of cups per

packaging based on consumer feedback.

This marketing plan gives specifics as to how Dole will implement the product, price,

place, and promotion strategies in order to gain sales in an already saturated market for the Dole

POMARILS product. This product with be a natural extension to products Dole already offers.

This will result in little internal friction when implementing the strategies mentioned in this plan.

This plan also gives optimal strategies on how to defend this product from the competitions

response and how to attack direct competitors.


INTRODUCTION

Many biblical scholars believe that it was not the apple that tempted Adam and Eve in the

Garden of Eden, but the pomegranate. It was even used by Hades to tempt Persephone, daughter

of Zeus, into marriage according to Greek mythology. Each pomegranate contains one aril

descended straight from paradise, according to Islamic legend. 500 years ago, Spanish settlers

planted the first pomegranates in the New World, and founding father Thomas Jefferson

cultivated pomegranates at Monticello, his neoclassical- inspired Virginian home. (1) (2)

The pomegranate was merely a bit of trivia until the last decade, after Stewart and Lynda

Resnick discovered 120 acres of pomegranate plants in a newly purchased pistachio orchard their

Paramount Farms had recently required. The story goes that Lynda became fascinated by the

pomegranate, with its rich history rooted in folklore and legend, and subsequently funded

medical research to uncover the pomegranate’s health benefits. Over $30 million dollars and 55

published papers later, POM Wonderful was established in 2002.

Since then, the pomegranate has emerged in the United States as a “super fruit,” rich in

nutrients, antioxidants and popularity. With ringing endorsements ranging from popular South

Beach diet creator Dr. Arthur Agatson to celebrities Oprah Winfrey and Heidi Klum,

pomegranate products have been flying off the shelves in America for the last decade, with no

signs of stopping any time soon. (3)

There is a limitation to the powerful pomegranate, however- it’s difficult to eat. Many

consumers would not recognize a pomegranate if you handed them one, and even less would

have any idea how to eat it. The pomegranate must be peeled, and the seeds inside, or arils, are

scooped out and consumed. This is a very messy process that almost always results in

pomegranate juice stains on hands, countertops, and clothing. While sales of pomegranate


products ranging from fruit juices to candles to cosmetics to infused liquor are off the charts, the

fruit itself is buried in its convenience obstacle. The main benefit of the pomegranate is its health

advantages. Why would consumers wrestle with peeling a messy pomegranate when they can get

the same benefits from a serving of 100% pomegranate juice?

We at Dole realize the potential in this super fruit if offered in a more convenient form.

The demand is already present; the ease of use is not, until now. We will respond by launching

Dole POMARILS – Pomegranate arils in an easy-to-eat, mess-free convenient package.

INDUSTRY ANALYSIS

About Dole

Dole Foods can trace its origins back to 1851, with the establishment of Castle & Cooke

trading company in Hawaii. However, it wasn’t until 1899 that James Drummond Dole, a

Harvard graduate with a degree in Agriculture, would enter the picture. Dole, determined to

build a career by commercially growing the then-exotic pineapple, formed the Hawaiian

Pineapple Company. Instead of trying to ship the fresh fruit to the continental United States, the

company would be the first to can pineapple, making it a much more commercially viable

export. (4)

James Dole would develop one of the first nationwide advertising campaigns, promoting

his pineapples in magazine ads all over the country. As demand for pineapple soared, the Dole

Hawaiian Pineapple Company became the largest processor of pineapple in the world, producing

over a million cases each year. In 1922, Dole would sell off a third of his company to the

Waialua Agricultural Company, a division of Castle & Cooke. He used the funds to purchase

land to be developed for expansion and additional plantations, including the entire island of


Lanai. In 1961, three years after James Dole’s death, Castle & Cooke acquired the rest of the

company, keeping the name Dole for its strong brand reputation. (4) (5)

Through expansion and acquisition, Dole dominates nearly every aisle of the produce

section, from fresh fruit to salad mixes to juice blends to frozen fruits. Over a 110 years since

James Dole first set foot on Hawaii, the company is now the largest producer, distributor and

marketer of fresh fruit and vegetables. Dole, now headquartered in California, is publicly traded

on the New York Stock Exchange and ranks #349 on the list of Fortune 500 Companies with

annual revenues of around $7.25 billion and profits of around $38.4 million. (6) For a complete

timeline of Dole’s ascent, see Appendix A.

There is one gem, however, missing from the Dole product line- pomegranates. This

strategic marketing plan will report on the increasing consumer demand of the Pomegranate and

illustrate how Dole can enter the market.

Fresh Fruit and Vegetable Industry

Dole is the largest producer of fresh fruits and vegetables in the United States and their

main competitors are Chiquita Brands International and Del Monte Corporation. While Dole

holds the number one or two position in almost all of its respective markets, Chiquita and Del

Monte often hold similar positions in those same markets. The 2012 Fiscal Year revenues of

Dole, Chiquita, and Del Monte were $6.84 billion, $3.06 billion, and $3.68 billion respectively.

Revenues have fallen across the board this quarter (year over year) 0.06%, 0.01%, and 0.01%

respectively. (6) (7) (8)

The industry is concentrated all across the supply chain, with large firms using their

bargaining power and brand strength to establish their domination. The chart below displays the

top processors in the industry, of which Dole has 9% market share: (9) (11)


Source (10)

Industry Growth

The fresh fruit and vegetable industry (which excludes processed and preserved fruit and

vegetables) is expected to experience steady growth over the next decade. The market value is

expected to grow to $145.6 billion in 2016, a 29.1% increase in the five-year spanning from

2011. Vegetables make up about 67% of the market, with fruit rounding out the other 33%. The

chart below highlights the aforementioned industry growth: (9)

United States fruit & vegetables market value forecast: $ billion, 2011–16 (7)

16%

16%

12% 10%

9%

7%

7%

6%

5% 4%

4% 4%

Top Fruit and Vegetable Processors in North America

Chiquita North America Taylor Fresh Foods Inc.

Ready Pac Produce Inc. Pinnacle Foods

Dole Foods Co.

General Mills Inc.


Fueling this growth is the trend of the American consumer rapidly moving away from

processed fruit and vegetables to fresh fruit and vegetables for the past several decades. This

chart demonstrates the breakdown between fresh fruit and processed fruit consumption per capita

in 1976 versus 2009: (11)

US per capita annual fruit consumption (pounds), 1976-2009 (8)

1976 2009 Growth 1976-2009

Fresh 101.9 (36%)

127.5

(44%)

25.1%

Processed 180.5

(64%)

163.7

(56%)

-9.3%

Total 282.4 291.2 3.1%

Five Forces Analysis of Industry


Source (9)

Buying Power

In general, buying power in the fruit and vegetable industry is weak. Supermarket giants

such as Wal-Mart and Kroger, dominate the retailing segment. Since fruit and vegetables are

commodities, there is little differentiation between retailers and many factors affecting buyer

power are interdependent on those of the supermarket retailers (such as the brand loyalty found

in leading supermarkets and their capability to offer lower prices). Fruit and vegetables provide

nutrients, vitamins, and minerals that are vital to buyers. These health benefits cannot be easily

replicated by supplements, therefore buyer power is reduced. (9)

Supplier Power

Overall, the industry exhibits weak supplier power largely as a result of low switching

costs and a lack of product differentiation. Numerous independent farmers constitute the main

supply channel. The large supermarkets that dominate the retail side are able to leverage their

purchasing power to negotiate low prices through bulk purchasing. In addition some retailers

(such as Wal-Mart) have strict codes of conduct to which suppliers must adhere to in order for


them to business together, further proving the retailer’s power. Small suppliers are typically

dependent on one of these large retailers for revenue. (9)

New Entrants

There is a moderate threat of new entrants into the market. It is possible to enter the retail

market without extensive capital investment by finding a niche market or offering organic

products. However, new entrants must be prepared for the dominance in the retail side, and try to

achieve strong brand recognition and harness cost benefits through economies of scale (which

will help them compete on price). New entrants must also adhere to heavy regulation from the

Food and Drug Administration, which oversees all aspects of the industry, from food safety to

labeling and packaging. (9)

Threat of Substitutes

The threat of substitutes to the fruit and vegetable industry is weak, largely due to the

fundamental dietary role of fruits and vegetables. One possible substitute is vitamin and

supplements (pills, tablets, etc.), but these are often more expensive than fruit and vegetables and

cannot offer all of the nutritious value that fruits and vegetables inherently do. Another threat

exists in the form of consumers growing their own fruits and vegetables. However, this requires

some agricultural skill and requires additional costs (seeds, fertilizer, land, time, etc.). (9)

Rivalry

Rivalry within the fruit and vegetable industry is strong, reflecting the high level of

competition between firms. On the retail side, a small number of firms, usually leading

supermarkets, dominate concentrated markets. Retailers can do little to differentiate their


offering and switching costs for consumers are minimal. Because fruit and vegetables are

perishable, storage costs are high and retailers must be able to move through inventory to avoid

losses from waste. (9)

Nature of Pomegranate Demand

The demand for pomegranate is at an all-time high, and continues to soar as the food

industry keeps shifting toward fresh fruit and products that provide distinct health benefits. More

Americans were introduced to pomegranate products last year than any year in history.

POM Wonderful, the market leader in all pomegranate products, posted record sales in 2012,

buoyed by the introduction of POM’s new 8oz bottle of 100% Pomegranate Juice, which has

become the fastest-selling, single-serve premium refrigerated juice less than a year after launch.

POM Wonderful posted 30 percent growth in overall juice sales last year as part of the

company’s record-breaking year that also saw an 80 percent increase in fresh fruit shipments and

an 80 percent boost in sales of POM POMS. (12)

Product Life Cycle

A pomegranate arils to-go product was first launched in November of 2012 with POM

Wonderful POM POMS Fresh Arils. This product is still in the introduction stage of the product

life cycle. Sales are still relatively low as the average consumer is not knowledgeable on the

product. Most do not know it exists yet and there are very few distribution outlets.


Top Competitors

In regards to the specific pomegranate product, a new competitor emerges. Dole’s top

competitor in the North American pomegranate market is POM Wonderful. Not only are they a

direct competitor with their POM POMS, they also are the dominant market leader in North

American pomegranates and pomegranate juice. POM Wonderful is a privately held company

and does not disclose financial information, although the company claims to have achieved

record sales revenue in 2012. Roll International, the privately owned conglomerate that includes

POM Wonderful (as well as FIJI water and Wonderful Pistachios), brought in revenues of

around $2.60 billion in 2012, according to Forbes. (13)


COMPANY ANALYSIS

DOLE’s Mission

According to Dole’s website, “Dole Food Company, Inc. is committed to supplying the

consumer and our customers with the finest, high-quality products and to leading the industry in

nutrition research and education.” (14) (4)

“Dole supports these goals with a corporate philosophy of adhering to the highest ethical

conduct in all its business dealings, treatment of its employees, and social and environmental

policies.” (14) (4)

“Dole's dedication to quality is a worldwide commitment solidly backed by:

• Comprehensive programs for food safety.

• Scientific pest management programs.

• Stringent quality control measures.

• State-of-the-art production and transportation technologies.

• Nutrition education to help the public understand the benefits of eating 5-13 servings of

fruits and vegetables a day.

• Continuous improvement through research and innovation.

• Dedication to the safety of our workers, communities and the environment.” (4)


SWOT ANALYSIS

Strengths Weaknesses

Market Leader

Diverse Product Line

Hearty Asset Base

Global Presence

Recent Financial Performance

Focused Customer Concentration

Opportunities Threats

Increased Vegetarianism

Demand for Organic Products

Foodservice Industry Growth

Strategic Acquisitions

Highly Regulated

Natural Factors

Unionized Labor Force

STRENGTHS

Market Leader

As stated before, Dole is the world’s largest producer, distributor, and marketer of fresh

fruits and vegetables. Dole is one the largest producer of pineapples and bananas globally and its

most significant products hold one of the top two positions in their respective markets. Besides

fresh fruit, Dole is also an industry leader in packaged fruit products, salads, and fresh

vegetables. (15) (16)

Dole maintains number one market share positions in North American bananas, iceberg

lettuce, cauliflower, celery, and packaged fruit products, including Fruit Bowls, Fruit Bowls in

Gel, Fruit Parfaits and fruit in plastic jars. This strong market position not only boosts the Dole

brand image but also provides large economics of scale.


Diverse Product Line

Dole boasts a wide range of over 200 products, including fresh fruit and vegetables,

packaged foods, and value-added products. Dole’s biggest sellers in fresh fruit are bananas,

specialty bananas, and pineapple. Dole also produce, distributes and markets over 20 types of

fresh vegetables. Dole produces canned pineapple and pineapple juice, fruit juice concentrate,

and fruit in plastics cups/jars as far as packaged foods. Value-added products include ready-to-

eat bagged salads and Fruit bowls in Gel. (16)

Dole also offers high quality, certified organic food products, including bananas,

pineapples, frozen fruit, and packaged salads/greens. According to a survey by the Food

Marketing Institute, 66% of shoppers buy organically grown food at the supermarket, creating a

huge customer base for these products. This wide product portfolio, including organic and

inorganic food products, enables Dole to reach several customer segments. (15) (16)

Hearty Asset Base

Dole has a hearty base of tangible assets that proves advantageous in supply chain

management. They own over 117,000 acres of farms, a large fleet of 17 refrigerated ships for

shipping, and over 60 ripening/distribution centers in Europe and Asia. The company also owns

over 1.8 million square feet of vegetable processing plants globally, and another 2.3 million

square feet of manufacturing facilities. These assets have enabled Dole to vertically integrate and

take control across many links in their supply chain, an important aspect of delivering a

perishable, fresh product to the customer. They also lead to low production costs, an advanced

logistics infrastructure, and a significant competitive advantage to Dole’s operations. (16)


Global Presence

Dole has a wide international presence, with it’s over 200 products being sold in over 90

countries, from North and South America to Asia, Europe and Australia. They also have

significant operations plants in over a dozen countries worldwide. The US, Europe, and Canada

account for the largest chunk of revenue, while the company’s prime markets in Asia Pacific

market recently experienced high revenue growth in FY2011, with China and Korea growing

36.5% and 15.6%, respectively. Dole’s global presence reduces its business risks across different

geographic locations. (16)

WEAKNESSES

Recent Financial Performance

Dole has underperforming financially in several metrics over the last five years. Since

2007, the company recorded almost flat revenue growth, at a compounded annual rate of about

1%. Rising commodity prices and product development costs have resulted in higher inventory

costs. In FY2011, Dole managed a meager 4.8% increase in revenue from the previous year.

These numbers indicate that Dole may not be able to generate desired revenues from its current

core business activities. The company has also amassed long-term debt of over $1.6 million,

which could limit the potential for acquisitions and loans. It may also lead to Dole needing to sell

off its assets to repay debt. (16)

Focused Customer Concentration

Dole is extremely dependent on a few top customers for generating the majority of its

revenue. In FY2010, their top ten customers contributed 34% of overall revenue, and each

segments’ largest customers contributed 21% of the respective segment’s revenue. This type of

dependence on the buyer reduces Dole’s bargaining power and can lead to unfavorable terms in


partnerships. If Dole loses one of these large customers, revenues and profits will decrease

dramatically. (15)

OPPORTUNITIES


Amidst rising food safety and health/dietary concerns, vegetarianism is dramatically

trending upwards in the United States. Consumers are eating less meat, and more fruits and

vegetables. Approximately 5% of US consumers, or about 16 million people, are embracing

vegetarianism (and about half of them are vegan). Meat and poultry consumption in the US has

fallen by an estimated 12.2% in 2012 compared to 2007 consumption. This may also be due to

rising concerns over recent disease outbreaks, such as the swine flu and bird flu. (16)

Many governments, including the US, are promoting World Health Organization’s Five

A Day program, which recommends consumer at least five portions of fruits and vegetables a

day. D Dole’s significant fruit and vegetable offerings make them well positioned to tap into the

growing vegetarian and vegan markets in the United States. (16)


Along with the aforementioned growth in vegetarianism, natural/organic food is

experiencing enormous growth amid increasing demand for healthier food products. The organic

food and beverage sector accounts for about 4.2% of all food sales in the US, and was valued at

$29.2 billion in 2011, a 9.4% growth from the previous year. Of this, fruits and vegetables made

up almost 40% of total organic food sales during the year. Dole offers a wide variety of certified

organic fruits and vegetables, which makes them well positioned to increase revenues through

the organic movement. (15)



As the US economy continues the to recover, the foodservice industry is expected to

experience 3.8% growth in 2013, its fourth consecutive year of growth, according to the National

Restaurant Association. In turn, the growth of restaurants will contribute to the recovery of the

US economy, with sales representing 4% of US GDP and employees making up 10% of the

workforce. The overall economic impact of the restaurant industry in 2013 is estimated at $1.8

trillion. Dole has bolstered its value-added food product line, including fruit bowls, ready-to-eat

salad, and parfaits to benefit from the growing foodservice industry. (16)

Strategic Acquisitions

Dole has traditionally expanded its product lines through strategic acquisitions, which

enhance current lines or create new ones. For example, Dole acquired SunnyRidge Farms in

2011 to strengthen its fresh and frozen berry segment by adding blueberries and blackberries.

SunnyRidge has farms in both North and South America, which ensures a year-round supply of

berries. Dole is not the second largest supplier of strawberries and blueberries thanks to the

acquisition. (16)

Another example is Dole’s March 2012 purchase of Mrs. May’s Naturals, which offers

natural snack alternatives to traditional junk food. Through this acquisition, Dole added an

entirely new line of snack foods to offering, with vegan, kosher, and gluten-free options that

cater to quickly growing markets. Through these clever acquisitions, the company has

strengthened its market position and diversified its product portfolio. (16)


THREATS

Highly Regulated

Dole is under intense regulation from the US Food and Drug Agency (FDA) as a

manufacturer of food products. The FDA oversees all aspects of the industry- manufacturing,

labeling, packaging, and food safety. The standards the FDA and other compliance firms set

forth must upheld by Dole, who are subject to a broad range of environmental, health, and safety

laws. These include the use of pesticides/chemicals, with different sets of laws coming from the

foreign, federal, state, and local governments. The FDA also reserves the right to oversee and

intervene if a possibility of a communicable disease is found. Dole spends significant capital to

ensure that these laws are behind adhered to, and must be adaptable to future laws and changes to

current ones. Dole’s brand image could be deeply impacted if they are unable to comply with

FDA standards. (15)

Natural Factors

Dole’s success in fresh fruit and vegetable products is inherently linked to climatic

condition of their regional sources. This makes the product line vulnerable to adverse weather

conditions, such as storms, wind, flood, drought, and temperature extremes. Several products are

also vulnerable to crop disease and pest. Additional costs are often incurred for treatment of

diseased crops. . In 2006, Dole distributed pre-packaged bags of Spinach tainted with E. Coli,

which caused a 26-state outbreak that caused over 200 E. Coli-related illnesses, including thirty-

one cases of hemolytic uremic syndrome, 104 hospitalizations, and five deaths. These

environmental factors can impact crop size and quality, and can even destroy an entire harvest in

some cases. This significantly reduces supply, and subsequently revenues and profits. (15) (17)



Over a third of Dole employees worldwide work under various collective bargaining

agreements. Several competing companies operate with a non-unionized workforce, which likely

means lower labor costs and more beneficial operating efficiencies. Renegotiations of collective

bargaining agreements can result in labor strikes and work slowdowns, which can negatively

affect financial performance. (16)

MACRO-LEVEL EXTERNAL ENVIRONMENT ANALYSIS

Political/Legal

The significant portion of Dole’s workforce that is unionized provides a legal threat, as

many of Dole’s competitors do not employ unionized workers. These competitors may benefit

from lower labor costs and more efficient operations as a result, which is a significant advantage.

They also do not have to worry about the possibility of work stoppages or slowdowns due to

labor strikes and collective bargaining agreement negotiations. The Food and Drug

Administration also highly regulates the company. If the company is unable to comply with

standards, the FDA can intervene, which would deeply obstruct the company’s operations.

Economic

Because fresh produce is often priced higher than processed fruit and vegetables, the

segment may suffer during times of economic downturn. While the processed segment may

flourish in times of recession, firms may have trouble moving perishable fresh fruit and

vegetable inventory. Overall, the foodservice industry may experience lulls in economic slumps.

Technological


Significant investments in technology are required to coordinate international farms to

make sure environmental and food safety compliance along the supply chain is being met. These

networks are crucial to ensuring FDA standards are upheld to avoid any penalties. As suppliers

of fruit and vegetables become more dependent on large supermarket retailers (such as Wal-

Mart), they are becoming more responsible in the product in-store displays and shelving. This

produce must be kept fresh through cooling and watering mechanisms.

Environmental

As stated before, both the crop size and quality of Dole’s fresh fruit and vegetable

products depend heavily on climatic conditions in their sourcing regions. They are susceptible to

adverse weather, such as floods, droughts, and temperature extremes. These products are also

vulnerable to crop disease and pest. The impacts of crop disease and pest vary, but can often

drive up costs significantly depending on the type of treatment that is necessary.

Social

Although rising concerns over food safety and disease prevention have led to increased

Vegetarianism, earlier listed as an Opportunity for Dole, the same concerns provide a threat for

Dole. In 2006, DOLE distributed pre-packaged bags of Spinach tainted with E. Coli, which

caused a 26-state outbreak that caused over 200 E. Coli-related illnesses, including thirty-one

cases of hemolytic uremic syndrome, 104 hospitalizations, and five deaths. Significant food

safety scares like this one not only hurt consumers’ perceptions of the brand, but also revenue.

The FDA issued an eight-day ban of bagged spinach, and a year after the ban was lifted sales

were still down by over 20% compared to pre-outbreak levels. (17) (18)


COMPETITION

As identified in the industry analysis, Dole’s main competitors in the fruit and vegetable

industry are Chiquita and Del Monte. The chart below compares the three major players of the

fresh fruit industry. More information on each competitor, including SWOT analyses, is included

below the chart. In addition to these industry competitors, an analysis of POM Wonderful’s

pomegranate business is also presented, as their POM POM Fresh Arils are our direct competitor

in terms of this specific product.

Source (19)

DOLE Chiquita Del Monte

2012 Revenue $6.84b $3.06b $3.68b

National base USA USA UK, North Cypress,

Turkey, USA

Commodity Base Pineapples, bananas Bananas Citrus (PP), bananas

(DMT)

# of Countries 15 14+ 10+

# of Subsidiaries 37 240+ 45

Conglomerate Yes, Hawaii real

estate

No Yes, electronics,

recreation, pet

Growing Yes Yes Yes

Transport Ships Ships Ships, air

Retail Labeling Labeling Labeling (DMT)

Value Adding Yes Yes Yes


CHIQUITA

Chiquita North Carolina is an American-based producer and

distributor of fresh fruit and produce, headquartered in Charlotte,

North Carolina. They are known for their iconic blue-stickered

bananas, as the leading distributor of bananas in the United States. They also encompass a sub-

brand of ready-to-eat bagged salads, known as Fresh Express salads. They employ approximately

200,000 employees over 70 countries (20).

Their slogan is “Live Better. Live Chiquita!” and mission statement describes the

“Chiquita Difference.” It states “The Chiquita Difference means everything to us. It’s our

promise to the world that we will consistently provide nutritious products of the highest quality,

customer service that’s second to none, and corporate social responsibility programs that lead the

way.” (20)

CHAQUITA SWOT ANALYSIS


Brand Image in US and Europe

Supply Chain Efficiencies

Global Presence

Product Recalls





EU Banana Import Regulation

Intense Competition


Natural Factors


STRENGTHS

Brand Image in US and Europe

The Chiquita brand has been around since 1944, and has evolved into a major player in

the US and Europe market. Chiquita holds the number two position in terms of market share in

the North American banana trade, and number one in Europe. The company has used this

success to expand into other geographic markets, such as Asia and Latin America, and into other

product categories, such as salads, smoothies, and fruit juices. (21)

Supply Chain Efficiencies

A company that operates in a highly perishable commodity (such as fresh fruit) business

must effectively utilize supply chain management, and Chiquita has done just that. The company

has strong logistic capabilities, so that the products move through the supply chain quickly and

quality and taste are at a premium when the product hits shelves. The company utilized

refrigerated cargo ships that a employ Low-Temperature Ripening process, in which bananas

begin the ripening process in shipping containers during transit. This decreases that amount of

inland ripening capacity required. Other products such as bagged salads and fresh-cut produce

are transported domestically via refrigerated trucks. These techniques ensure fresh products and

allow Chiquita to charge a premium price on the basis of quality. (21)

Global Presence

Chiquita sells and operates in countries all over the world. They have significant

operations in Costa Rica, Colombia, United States, China, Panama, Ecuador, Honduras,

Philippines, Mexico, and Nicaragua, just to name a few. The company distributes over 65

products under the Chiquita brand in over 70 countries. In 2011, the United States represented


57.1% of all revenues, with 32.6% from the European market and 10.2% from other regions. The

wide global presence reduces business risk associated with particular regions. (21)

WEAKNESSES

Product Recalls

Chiquita has had to recall several products in recent years, including a 2010 FDA-ordered

recall of ready-to-eat bagged salads due to salmonella contamination as well as another salad

product was recalled due to a possible health risk from listeria monocytogenes. In 2012, two

separate recalls of packaged spinach were ordered due to salmonella. These recalls damage brand

image, increase costs decrease consumer confidence. (21)

OPPORTUNITIES

Increased vegetarianism






rising concerns over recent disease outbreaks, such as the swine flu and bird flu. Many

governments, including the US, are promoting World Health Organization’s program, which

recommends consuming at least five portions of fruits and vegetables a day. With a product

portfolio that consists primarily of fresh cut fruits and vegetables, Chiquita is well positioned to

tap into the growing US vegetarian market. (21)



Along with the aforementioned growth in vegetarianism, natural/organic food is

experiencing enormous growth amid increasing demand for healthier food products. The organic

food and beverage sector accounts for about 4.2% of all food sales in the US, and was valued at

$29.2 billion in 2011, a 9.4% growth from the previous year. Of this, fruits and vegetables made

up almost 40% of total organic food sales during the year. By continuing to add certified-organic

fruits and vegetables, Chiquita can increase sales revenue and subsequently profits. (21)

EU Banana Import Regulation

Bananas imported into the European Union from Latin America, a major market for and

primary source of bananas for Chiquita, respectively, are subject to a tariff of $233.50 USD per

metric ton, ever since 2006. Bananas from African, Pacific, and Caribbean sources were tax-free

however, providing an advantage for competitors who sourced from those regions. In 2009, the

EU and eleven Latin American countries signed a treaty that would reduce this tax rate in yearly

phases. The rate was down to $189.40 USD per metric ton in 2012 and will be reduced to

$104.40 per metric ton by 2019. As this rate decreases, profitability will increase in the European

market, in which Chiquita holds the top position. (9)

THREATS

Intense competition

Each of the company’s business segments faces fierce competition from rivals. This

includes both smaller growers co-ops and larger international firms with more resources and

brand recognition, such as Dole and Del Monte. They also face competition in the form of

private label and store branded products, which are priced lower than branded products. They

must fight all of these competitors on limited shelf space in large supermarkets. The presence of


so many rivals in the marketplace means that a constant war of market share is being waged, and

Chiquita must spend resources improving their value proposition to stay competitive. (21)


The majority of Chiquita’s Central American employees work under various collective

bargaining agreements, as well as a large chunk of workers in the United States. Several

competing companies operate with a non-unionized workforce, which likely means lower labor

costs and more beneficial operating efficiencies. Renegotiations of collective bargaining

agreements can result in labor strikes and work slowdowns, which can negatively affect financial

performance. (21)

Natural Factors

Chiquita’s success in fresh fruit and vegetable products is inherently linked to climatic

condition of their regional sources, namely Central America. This makes the product line

vulnerable to adverse weather conditions, such as storms, wind, flood, drought, and temperature

extremes. Several products are also vulnerable to crop disease and pest. If a banana plant is

destroyed, it takes up to nine months for a new plant to begin bearing fruit. Since Chiquita

operates on one flat-price per box contracts, it is challenging to recoup costs from damaged

plants. Additional costs are often incurred for treatment of diseased crops. These environmental

factors can impact crop size and quality, and can even destroy an entire harvest in some cases.

This significantly reduces supply, and subsequently revenues and profits. ()


DEL MONTE

Del Monte Foods, headquartered in San Francisco,

California, is one of the largest producers and distributors of

branded food products and pet food in the United States.

They encompass several substantial sub-brands in both segments, including Contadina, College

Inn, Meow Mix, Milk-Bone, and Kibbles ‘n Bits. They employ approximately 14,800 workers

globally. (22)

The company’s mission statement is “Nourishing Families. Enriching Lives. Every Day.”

According to their website, “Del Monte is committed to enriching the lives of today's family —

everyone in the family, including pets — by providing nourishing, great tasting and easy-to-use

products that meet the needs of everyone in the home. We are driven by the consumer and

deliver results through a partnership with our customers built upon superior brands and products,

continuous innovation, excellent service and a commitment to quality in all we do. Our people

are passionate about winning and take pride in Del Monte as they lead the company to achieve

world-class performance and superior shareholder value.” (22)

SWOT ANALYSIS


Market Leader

Brand Portfolio

Legal Issues

Business Concentration



Increased Pet Ownership


Intense Competition

Highly Regulated



STRENGTHS

Market Leader

Del Monte has secured number one market positions across several product categories,

being one of the largest marketers in the US of processed fruit, vegetables, tomatoes and broth.

In 2011, the company narrowly edged out Dole as the United States market leader for processed

fruits, with a 31% market share. The College Inn broth product line was the second largest broth

in the US, with 12% of the market. They also hold substantial market share in several pet food

categories, including 22.2% in dry cat food, 13.4% in wet cat food, 7.8% in dry dog food, and

29.8% in dog snacks. These strong positions across several markets provide substantial

bargaining power. (23)

Brand Portfolio

Del Monte is an umbrella company that encompasses several strong brands and product

lines in both fresh/processed food and pet food, including Del Monte, Contadina, College Inn,

Meow Mix, Kibbles N’ Bits, 9Lives, Milk-Bone, Nature’s Recipe, and Pup-peroni. The four

largest pet brands in their portfolio each amass over $200 million in sales revenue annually. This

diverse brand portfolio has led to a high household penetration- a Del Monte product can be

found in eight out of every ten Americans’ homes. Del Monte is constantly expending product

lines to gain market share and expand its market presence. (23)

WEAKNESSES

Legal issues

Del Monte has faced legal issues recently, such as complaints of mislabeling and false

advertising. For example, a 2011 complaint was filed in US District Court that claimed false and

misleading representation of canned fruit products as healthy. Del Monte has also had class


action lawsuits filed against them related to pet food/snack recalls. These legal issues can cost

the company financially, and damage the brand image of the affected product. (23)

Business Concentration

Del Monte has an extremely concentrated customer base, both in terms of geography and

retailers. Operations are concentrated in the United States, as are sales – 94% of revenue comes

from the US. This concentration makes Del Monte vulnerable to country specific threats, such as

labor strikes and economic recession. As far as customer concentration, Del Monte’s top ten

customers (large supermarket chains) make up 63% of total sales, with Wal-Mart alone making

up 34%. This high dependence on a few large customers reduces bargaining power of Del

Monte, which can lead to unfavorable contractual terms with their partners and subsequently

decreased profitability. (23)

OPPORTUNITIES







rising concerns over recent disease outbreaks, such as the swine flu and bird flu.

Many governments, including the US, are promoting World Health Organization’s Five

A Day program, which recommends consuming at least five portions of fruits and vegetables a

day. Del Monte’s significant fruit and vegetable offerings make them well positioned to tap into

the growing vegetarian and vegan markets in the United States. (23)


Increased Pet Ownership

Pet ownership in the United States continues to grow at a steady pace, and has created the

largest pet industry in the world. According to a 2012 American Pet Products Association

survey, 73 million US households, or 62% of all households, own at least one pet. In addition to

the US, pet ownership in China is also growing a rapid rate. The demand for pet food/snacks is

expected to skyrocket in developing pet markets in fast-growing economies like China. Although

the Del Monte does not yet compete in the Chinese market, they have the expertise and resources

to consider entering the market. They are certainly well positioned to continue to experience

strong market share and revenue growth. (23)


As the US economy continues the to recover, the foodservice industry is expected to

experience 3.8% growth in 2013, its fourth consecutive year of growth, according to the National

Restaurant Association. In turn, the growth of restaurants will contribute to the recovery of the

US economy, with sales representing 4% of US GDP and employees making up 10% of the

workforce. The overall economic impact of the restaurant industry in 2013 is estimated at $1.8

trillion. Del Monte offers products that are used heavily in the restaurant industry, such as

sauces, ketchups, and broths. These products, along with all of Del Monte’s food products, will

benefit from the industry growth. (23)

THREATS

Intense Competition

Del Monte faces intense competition all across its market segments. In the fruit market,

the largest competitors are DOLE and Chiquita. Other competitors include Con Agra, Heinz and

Unilever in the tomato/ketchup market, Campbell’s in the broth market, and Nestle-Purina, Mars


and Procter & Gamble in the pet food market. Many of these competitors are much larger in

scope and resources than Del Monte, such as Procter & Gamble, Unilever, Dole, and Heinz. This

competitive landscape leads to a constant war for market share, and Del Monte must spend

valuable time and resources improving their value proposition to stay competitive. (23)

Highly Regulated

Del Monte is under intense regulation from the US Food and Drug Agency (FDA) as a

manufacturer of food products. The FDA oversees all aspects of the industry- manufacturing,

labeling, packaging, and food safety. With a FY2013 budget of $4.5 billion (up more than 17%

from 2012), the FDA is expected to strengthen current laws and develop new ones in the near

future. The standards the FDA and other compliance firms set forth must upheld by Del Monte,

who are subject to a broad range of environmental, health, and safety laws. These include the use

of pesticides/chemicals, with different sets of laws coming from the foreign, federal, state, and

local governments. The FDA also reserves the right to oversee and intervene if a possibility of a

communicable disease is found. Del Monte spends significant capital to ensure that these laws

are behind adhered to, and must be adaptable to future laws and changes to current ones. Del

Monte’s brand image could be deeply impacted if they are unable to comply with FDA

standards. (23)


Over 72% of Del Monte’s employees operate with a union. Many of their 5,200 full-time

employees work in the United States, a tight labor market that requires a high minimum wage

compared to other countries. In addition to the federal minimum wage, many states and local

municipalities have higher minimum wages that must be met. Several competing companies

operate with a non-unionized workforce, which likely means lower labor costs and more


beneficial operating efficiencies. Renegotiations of collective bargaining agreements can result

in labor strikes and work slowdowns, which can negatively affect financial performance. (23)


POM WONDERFUL

POM Wonderful is a privately held,

leading producer and marketer of

Pomegranates in the United States.

The owners are Stewart and Lynda Resnick, who also own Wonderful Pistachios although the

brand is not part of POM. The company is headquartered in Los Angeles, California, while

owning and operating all of their pomegranate orchards in California. As a private company,

POM does not disclose any sort of financial statements, making them a difficult target for

competitors. (24)

According to POM’s website, their mission is to “introduce and supply consumers with

the highest quality and best-tasting pomegranates and pomegranate food products.” The brand

offers fresh pomegranates, pomegranate juice, pomegranate extract supplements, and most

recently, fresh arils to go. (24)

SWOT ANALYSIS


Production Process Control

Extensive Product Line

Brand Image in US

Medical Research

Legal Issues

Centralized Location

Product Shelf life



Marketing an everyday drink

Premium Priced Products

FTC Advertising Ban

Natural Factors


STRENGTHS

Production Process Control

POM owns and operates all of their own pomegranate orchards, which gives them

ultimate control of the entire production process, from seed to shelves. As of 2013, they own

18,000 acres of orchards in California’s San Joaquin valley. Because these orchards are

centralized into one region, fewer resources have to be used in supervision, networking, and

coordinating the supply chain. POM can utilize this control to better ensure that food safety and

pomegranate quality measures are being taken. (24)

Extensive Product Line

By adding the POM-POM fresh arils, POM has further bolstered their already extensive

product line in the pomegranate market. In addition to the arils, they offer seven varieties of

100% pomegranate juice, four flavors of Lite POM (a juice with lighter texture and fewer

calories), three flavors of POM tea, two types of pomegranate extract supplements, and fresh

pomegranate fruits. This extensive product line serves fans of pomegranate with multiple

offerings. (24)

Brand Image in US

POM’s brand image is extremely strong, as they have become synonymous with

pomegranates in the United States. They have also utilized packaging to increase brand

awareness with their iconic “hourglass” shaped pomegranate juice bottles, which stand out from

common bottle shapes on store shelves. POM uses this brand image to establish dominance in

the pomegranate market.


Investments in Medical Research

POM has made heavy investments, to the tune of over $34 million, in medical research in

order to back health claims used in advertising. They use the information from these studies in

order to educate consumers on the benefits of pomegranate, which is packed full of vitamins and

antioxidants. The pomegranate has been labeled as a “super fruit” because of these health

benefits, which provide a strong value proposition to health-conscious consumers. (24)

WEAKNESSES

Legal Issues

In May of 2012, a Federal Trade Commission judge found that POM was making

deceptive advertising claims in regards to the health benefits being touted. Specifically, POM

advertised its pomegranate juice as a way to “treat, prevent or reduce the risk heart disease,

prostate cancer or erectile dysfunction.” The FTC issued an order that POM Wonderful “shall

not make any representation, in any manner, expressly or by implication, including through the

use of a product name, endorsement, depiction, illustration, trademark or trade name, about the

health benefits, performance or efficacy of any covered product, unless the representation is non-

misleading.” Violations could subject to fines of up to $16,000 per incident. Legal issues like

these can damage POM’s brand reputation. (25)

Centralized Location

Since POM’s operations are completely concentrated in central California, expansion

would be difficult. This would ring especially true in international expansion, as operating

internationally requires understanding of foreign laws and regulations, as well as additional

management. This also means that POM’s crops are susceptible to regional weather and natural

disasters. (24)


Short product shelf life

Like many fresh fruit products, the Pomegranate has a relatively short shelf life. While a

whole pomegranate may have a shelf life of up to 6 months, packaged arils carry a shelf life of

just 15 to 18 days. Since retailers have such a short time to move these products to a relatively

limited target market, they may be hesitant to carry the product.

OPPORTUNITIES

Market as Everyday Drink

POM pomegranate juice has traditionally been known as a higher-price convenience

item, with single serve 16 oz. bottles holding suggested retail prices topping $3.00. Higher prices

made expanding brand loyalty and repeat purchases difficult, especially during the US economic

recession. In 2012, POM began to offer an 8 oz. offering, priced at $1.99. Within a year on the

market, the product became the fastest-selling, premium refrigerated juice, and anchored the

company’s the record sales year in which they enjoyed 30% growth. If POM can continue to

market this product and expand its availability to convenience stores, it may lead to more repeat

purchases. Its lower price creates a viable option for consumers who want to drink the beverage

daily for the health benefits. (24)


Natural/organic food products are experiencing enormous growth amid increasing

demand for healthier food products. The organic food and beverage sector accounts for about

4.2% of all food sales in the US, and was valued at $29.2 billion in 2011, a 9.4% growth from

the previous year. Of this, fruits and vegetables made up almost 40% of total organic food sales

during the year. The United States government promotes the World Health Organization’s Five

A Day program, which recommends consuming at least five portions of fruits and vegetables a


day. POM offers several natural fruit products, and arils are often used as salad ingredients, so

POM is well positioned to enjoy growth due to this trend. (12)

THREATS

FTC Advertising Ban

The Federal Trade Commission’s ban on advertising it deems to be deceptive limits

POM’s promotional options. The FTC is certain to keep an eye on POM, so they must be careful

in wording their advertisements when stating the health benefits. Significant investments have

been made in medical research to substantiate these claims, though much of that information is

useless if it cannot meet the FTC’s standards. This ordeal has led to negative media exposure and

given competitors ammunition to attack POM, which could damage the brand reputation. (25)

Premium Priced Products

POM competes in a highly competitive fruit juice market with a high price relative to the

market. Their competitors include Tropicana, Coca-Cola, and Ocean Spray. Many of these

competitors offer pomegranate “100% fruit juice” which contains small amounts of pure

pomegranate juice mixed with cheaper juices (blueberry, pear, apple, etc.) to lower costs,

allowing these firms to undercut POM on price. Since POM is committed to offering 100% pure

pomegranate juice, they cannot compete on a basis of price. This can be especially

disadvantageous in times of economic recession. This competitive landscape leads to a constant

war for market share, and POM must spend valuable time and resources communicating their

unique value proposition to the customer in order to justify the premium prices.

Natural Factors

POM’s success in Pomegranate products is inherently linked to climatic condition of their

regional sources, namely central California. This makes the product line vulnerable to adverse


weather conditions, such as storms, wind, floods, drought, and temperature extremes. Areas of

central California are also susceptible to forest fires, which can destroy entire farms.

Pomegranates are also vulnerable to crop disease and pest. Additional costs are often

incurred for treatment of diseased crops. These environmental factors can impact crop size and

quality, and can even destroy an entire harvest in some cases. This significantly reduces supply,

and subsequently revenues and profits.


OBJECTIVES FOR NEW PRODUCT PLAN

GOT FRUIT? We do.

Dole Fresh Foods offers a long list of fresh fruit products, including apples, apricots,

avocados, bananas, blackberries, chayote, cherries, coconuts, cranberries, golden raspberries,

grapes, nectarines, oranges, peaches, pears, pineapple, plantains, plums, and raspberries. To keep

up with market demand, we are adding POMARILS to our product list.

As with all our products, our primary objective for the Dole POMARILS product is our

commitment to providing customers with the finest, high-quality products and to leading the

industry in nutrition research and education.

Product Objectives

• To introduce Dole POMARILS for sale to the public by November 1, 2013

• To package POMARILS in a two-pack of two-ounce Dole Fruit Bowls (total of four

ounces of fruit per package)

• To package POMARILS in the Fruit Bowls with whole pomegranate fruit juice

• To work to have our product placed in the fresh fruit section of produce departments in

50% of the retail stores we supply to by November 1, 2013

• To increase the number of stores we offer the Dole POMARILS product in accordance to

percentage of increased sales (based on quarterly reports) until product is in 100% of the

retail stores that carry the Dole Brand.

• To achieve 25% of the market share of pomegranate arils by November 1, 2014

General Marketing Objectives

• To create product introduction advertisements by October 1, 2013


• To revise and begin running advertisements November 1, 2013 (length and size of

advertisements to be determined by marketing budget)

• To utilize 65% of the advertising budget into two forms of primary advertising –

television commercials and newspaper advertisements

• To utilize 20% of the advertising budget into secondary advertising to include social

media advertisements on Facebook, Twitter, and YouTube

• To utilize 15% of the advertising budget to create and use in-store coupons with instant

discounts and in-store displays in the retails markets selling Dole POMARILS beginning

November 1, 2013

• In-store coupons will boast a “buy one, get one half off” sales promotion

• To employ direct marketing through in-store sampling at 100% of the retailers selling

Dole POMARILS once during the first week of introduction (week of November 1, 2013)


SEGMENTATING, TARGETING, POSITIONING

SEGMENTATION

Dole will assess possible markets for POMARILS from a multitude of segments. We will

likely have success targeting these major categories; age, education, geographic region. Age will

be defined on young adult, middle aged and advanced age. Education will be based on

primary/secondary education, college graduate, and post graduate education. Geographic regions

are divided into four quadrants: Northeast, Southeast, Midwest, and West. In the defined areas,

POMARILS have a high potential for success in these markets:

• Middle aged to advanced age having college education

• Convenience oriented working class consumers

• Households with an average annual salary or greater than $45,000

Information based on statistics from Mediamark Reporter (28)

The previous Markets were selected from categories most likely to be interested in the

POMARILS products. The following information shows why these categories would be the best

areas of concentration. The information gathered from MRI statistics follows:

Dole – Canned or Jarred Fruit

• Women 8% more likely, men 18% less likely

• More likely if HH income is greater than $50K (18% less likely when above $150K)

• Age: 55-64 are 4% more like, 65+ is 21% more likely

• Women age 25-54 3% more likely

• Sales and office occupations

• Marital status: married with children


Mediamark Fruit and Fruit Juice/Drinks Segmentation Chart

Pomegranate - Fruit Juices and Drinks

• Homemakers with higher education more likely to purchase

• Age: 45-54 27% more likely

• Occupation: natural resources, construction, and maintenance most likely

• HH income: above $40K

• Census region south 13% less likely

• Marital status: married, if kids they are above the age of 12

Fresh Fruit

• Higher education more likely, age 45+

• Women more likely than men

• Natural resources, etc. least likely profession

• HH income: $50K+

• South least likely region

• Marital status: married


Mediamark Segmenting Charts

POM Wonderful - Fruit Juices and Drinks

• Education: graduated college plus is 37% more likely; post graduate 58% more likely

• Age: 45-54

• Men 25-54 are 25% more likely, women 25-54 5% more likely

• All occupations more likely

• HH income: more than $40K; $150K+ is 59% more likely

• Region: south least likely

• Married most likely; with children 12-23 months 38% more likely

TARGET MARKETING Each of these segments has a high probability of financial gains. After evaluation, Dole

will decide that the initial investment will be more focused on capturing the segment composed

of advanced age consumers with a college education. These consumers have a greater tendency

to buy health related items as well as products that are convenience-orientated. The POMARILS

would have a higher shelf life than traditional fresh fruits and vegetables. A possible drawback of


focusing on health conscious consumers is that they are likely to purchase fresh produce rather

than fruit in a cup with artificial preservatives.

The easiest segment to reach would be convenience oriented consumers. Consumers who

purchase this product are interested in having nutrition rich foods with them on-the-go. Sales

would be derived from time-sensitive consumers that are looking for a quick, easy, and low

calorie meal. This relates to segment one: people who are usually under the pressure of deadlines

or variable work schedules with little time for sustenance.

The third segment is related to household income. This may be the largest market to tap

into since the average annual income for U.S. consumers in 2011 was $50,502 (27). The less

financially constrained a household is, the more likely they will focus on the nutritional values in

food products instead of pricing. It is also typical for a household with a high level of income to

be educated at the college level with a higher conscious attention to nutritional value.

POSITIONING

Within the food category there exists healthy higher cost foods and unhealthy lower cost

foods. While this is not true for all products, it is a general trend due to how the food has been

grown or processed. The healthier group of consumers is concerned with attributes such as

pesticide use, general nutrition, preservatives, and decomposition rate of food. Creating a product

with these attributes can be more costly, forcing a rise in product sales to consumer. This can be

a disadvantage in gaining sales from consumers seeking convenience, shelf life, and are price

elastic.

Dole POMARILS would be considered as the middle ground of healthy and convenience

based foods. While doing this will make it hard to capture the truly healthy shoppers or the

shoppers focused solely on the ease of consumption for specific products, POMARILS would


attract the large consumer base in the middle of these two areas. The seeds are the part of the

Pomegranate that is eaten (29). A 1/2 cup serving contains 72 calories, 67.80 grams of water,

1.45 grams of protein, 1.02 grams of fat, 16.27 grams of carbohydrates and no cholesterol (29).

Healthy consumers would be attracted to the before mentioned health offerings. A possible area

of concern arises from catering to the convenience consumer. In order to increase shelf life,

many products resort to added preservatives. Capturing the convenience and on-the-go consumer

makes preservatives necessary. Knowing most consumers are not solely healthy shoppers or

solely junk food shoppers, POMARILS would be in a perfect strategic position to capture mass

shoppers.

The current positioning for Dole is very similar to its direct competitors. These would

include POM Wonderful, Chiquita, and Del Monte. Each of these are focused on attracting

middle aged consumers who more than 40K a year and have a high probability of being married.

This is because it is mainly this category it most likely concerned with nutrition facts and able to

afford the extra expense of high quality fruit.


MARKETING MIX


PRODUCT DECISIONS

Why POMARILS? What makes Pomegranates and their seeds so special? Two words –

SUPER FOOD.

By definition, Super Foods are nutrient-dense and calorie-sparse foods. That means they

have a lot of what you want in a fresh fruit and very little of what you don’t want – calories.

pomegranate juice and seeds are superior sources of anti-oxidants and essential nutrients, which

the human body cannot produce. (30)

According to the U.S. National Library of Medicine, pomegranate juice has three times

the amount of antioxidants found in green tea and red wine (31). And it’s good for the heart.

According to the 2005 issue of American Journal of the College of Cardiology, subjects with

heart disease who consumed eight ounces of pomegranate juice a day for three months had a

significant improvement in the amount of oxygen reaching the heart muscle (32).

POMARILS are packaged in 100% Pomegranate fruit juice and contain no saturated or

trans fat, no high-fructose corn syrup, and no artificial sweeteners. Combine this with the

Vitamin C, fiber, and other healing benefits in POMARILS, and you have a Super Food indeed.

(33)

Dole POMARILS have added value:

• Savings: Dole Fruit Bowls provide labor savings with ready-to-serve capabilities.

• Convenience: Portion-controlled serving of fruit in juice in easy-open, recyclable

bowls.

• Customer Service: Dole creates specialized information and provides additional

materials, targeted product information, and resources.


• Trusted Quality: Dole is the strongest brand in the fruit and vegetable category, with

premium quality fruit in each serving.

• Healthy Benefits: These ready-to-serve cups are portion-controlled and individually

pre-packaged containers providing healthy, self-contained benefits. (33)

Dole Fruit speaks for itself!

Dole POMARILS offers quality assurance, food safety, environmental responsibility, and

social accountability while simultaneously incorporating healthy eating habits into the American

diet.

Product Classification and Packaging

As stated before, Dole will position POMARILS in the fresh fruit, retail industry.

Branding, packaging and labeling will be consistent with the Dole brand and products.

Warrantee

Dole takes extreme measures to ensure the safety of its products, and this attention to

quality will be extended to POMARILS. Dole 's processing facilities are highly hygienic

environments that consistently rank among the highest in the food industry for quality and safety.

Dole uses state-of-the-art, refrigerated transportation technologies. Dole will strive to use the

safest and best methods in food preparation as technology advances. (34)

Each packaging item of the POMARILS product will be stamped with a “Best If Used By

Date,” which will inform customer of the freshness of the product. Like all fresh fruits, Dole

POMARILS have a limited shelf life (even when refrigerated), and the "Best If Used By"

instructions should be observed. (34)


Product Strategy

The product strategy for POMARILS will have differences from other current Dole

products. Unlike the canned and packed fruits in the canned fruit aisle of the grocery store, Dole

will be competing in the fresh fruit area of the produce area of grocery stores. The packaging will

be the same of the Dole Fruit Bowls, but the contents are fresh with a shorter shelf life.

Dole POMARILS will be competing with other companies offering fresh pomegranate

seeds. In comparison to POM Wonderful POM POMs, Dole POMARILS will be packaged in

smaller, more convenient bowls with the perfect serving size. Pomegranate seeds are full of

flavor, and four ounces is a large serving size for one person. Dole POMARILS are packaged

with the same amount as competitors (four ounces) but are offered in a multi-pack (two bowls)

of two-ounce servings.

Unlike other leading pre-packaged, fresh pomegranate seed companies, Dole plans on

offering our product year-around. This is a huge advantage over competitors, who only supply

retailers when the fruit is in season here in the United States.


PRICING DECISIONS

While Dole POMARILS is still in its introduction stage, we want to rapidly establish

ourselves as the market leader. When someone wants fresh, easy pomegranate, they will think of

Dole POMARILS first and foremost. POM Wonderful has long established itself as the premier

Pomegranate juice on the market, but they have not locked up the fresh arils market. Our

objective is to gain as much market share as quickly as possible. We will achieve this by

utilizing a market penetration pricing strategy, to go head-to-head with POM Wonderful’s POM

POMs in the race for market share.

We plan on pricing our product at $2.49 for (2) 2-ounce cups. This is a lower price per

volume than POM Wonderful’s POM POMs, our direct competitor. This is however, a slightly

higher price than purchasing a fresh, unseeded pomegranate. We do not believe this will inhibit

our success, as our product’s value proposition is its convenience. This is also a higher price per

volume than POM’s pomegranate juice, at any volume level.

While the price of the product may rise when it reaches its maturity phase on the product

life cycle, we believe the penetration pricing strategy could lead towards long-term cost

leadership in the market for two reasons. One is Dole’s reputation as a well-known family brand,

which will keep the product appealing. Second is our internal efficiencies and experience in

supply chain management, which can lead to long-term cost advantages and higher margins. We

feel that Dole has the understanding and brand equity to make this a very profitable product for a

long time.


Product Price Volume

Dole POMARILS $2.49 (2) 2 oz

POM Wonderful POM POMs $2.99

$4.99

4.3 oz

8 oz

POM Wonderful Pomegranate (fresh fruit) $1.99 /Per lb

POM Wonderful Pomegranate Juice

$1.99

$3.99

$10.99

8 oz

16 oz

32 oz


PLACE DECISIONS

Reaching the Consumer

A large advantage POMARILS products will have over others is Dole ‘s pre-established

and safe distribution network. Dole currently leases farmland all over the world in order to

maintain a continuous supply of products as well as capitalize on year round growing abilities of

other climates. Some of Dole’s worldwide farmland ownership looks something like this: (35)

United States Asia Europe

Owned- over 10,000 acres Owned- (Statistics not shown Owned- (Statistics not shown)

Leased- over 20,000 acres Leased- Over 45,000 acres Leased- Over 3,600

These three counties compose most of the farmland acreage owned by Dole, but there are

others strategically placed throughout the world. Sometimes Dole is unable, or finds it more cost

effective, to instead place distribution and acquisition centers locally in order to gain partnerships

or joint ventures with local growers. With so much farm land, Dole will easily be able to

repurpose, or acquire more, farmland in order to grow a percentage of its pomegranates

internally. “The best climate for pomegranate growth is consistent tropical or warm weather.”

Dole currently owns farmland in California and Florida that would be two ideal U.S. based

pomegranate growing locations. (37)

The pomegranates grown in the U.S. will be field packed and trucked to Dole -owned

packaging facilities. The pomegranates will be sent to the vegetable and fruit packaging facilities

located in California, Ohio, Arizona, Michigan, and North Carolina. If manufactured outside of

the U.S. the field packed pomegranates will be seeded and packaged in the facilities available in

each respective country. The POMARILS product will be tested on the U.S. market initially then

spread to other promising countries as sales increase.


Dole will work with internally owned or channel intermediaries to get its product to end

consumers. The distribution channel flow will ideally look like this:

Dole is able to transport its produce throughout the globe using its own Dole Ocean

Cargo Express (DOCE) operation. This operation lets the Dole direct any shipping requirements

in an efficient and timely manner. Other corporations can also pay for shipping space on one of

the DOCE ships. This would allow Dole the ability to grow pomegranates in a more tropical

environment without having to worry about bidding on shipping space. It was a necessity for

Dole to acquire shipping services because major competitor like Chiquita and Del Monte has

their own shipping operations as well. In order to compete they must be able to fill demand and

supply years round products. With the distribution from farms to the necessary locations through

shipping, there will be no problem delivering pomegranates in order to fill POMARIL demand.

(35)

Dole is a top level distributor of packaged fruits and vegetables. They have gained large

shelf space in both large and small wholesalers and retail outlets in the shopping market industry.

Dole knows the current demand of its products. POMARILS will acquire the space of the least

demanded items with a probing strategy. The space of poorly selling items will be replaced by

the POMARILS products. In order to grab attention there will be either a display near of coupons

obtainable at the point of purchase.

Farming Shipping Wholesaler Retail Outlets Consumer


The positioning of POMARILS into Dole production fits the current operations and

objectives. POMARILS are similar to the packaged fruit and vegetable of current Dole offerings.

Dole farmland and distribution system will allow POMARILS to be distributed in a similar

fashion to other produce from farms. This specific product also fits into the classification of

healthy food, which is a strong emphasis from Dole because of their stringent quality and

delivery systems. Expanding the current Dole farming operation would be in Dole’s best interest

because of the desire to internal control of products. Having power for expanse in not easy to

imitate and lesser organization will not be able to compete in this area. This will give DOLE an

advantage over the current competition.

Having ownership of distribution channels and being a well-established household name

is a large advantage over competition. Dole has better placement opportunities than many other

small packaged fruit organization. However, once organizations start to reach the top, it becomes

harder to find outlets for strategic advantages. The direct competitors of Dole have a similar way

of distributing goods. Chiquita and Del Monte both have farmlands, shipping services, and

packaging plans spread strategically over the worlds.


DOLE Worldwide Express (35)


PROMOTION DECISIONS

Integrated Marketing Communication Strategy

Dole POMARILS are fresh, convenient, and deliciously healthy. Dole has already

established itself in the food industry, competing with major brands such as Del Monte and

Chiquita to be the best in fruit, fresh salads, and other food products. Dole POMARILS directly

compete with POM Wonderful’s POMPOMS product. The main purpose of the integrated

marketing communication strategy will be to introduce Dole POMARILS to the market and

create awareness. A secondary purpose is to build the Dole brand.

Our integrated strategy utilizes several elements from the traditional promotion mix. We

will be implementing advertising, public relations, sales promotion, and direct marketing. As part

of our advertising plan, we will create and distribute a television commercial and newspaper

advertisements. Further advertising the product, we will employ the social media outlets of

Facebook, Twitter, and YouTube to build public relations. Sales promotion activities will include

in-store displays and coupons. In-store sampling will also be utilized as part of the direct

marketing promotion mix element.

Through all promotional elements, we will be emphasizing the positioning of our

product. Dole POMARILS’ competitive advantage is in its convenience, price, and health

benefits. By using several elements of a promotional mix, we can reach our target market on

more than one occasion and instill the message of POMARILS in them. All aspects of the

communication and promotion strategy will present the same message: Dole POMARILS are

fresh, convenient, and deliciously healthy.


Advertising

Advertising is a promotional mix element that has the ability to reach a large number of

potential customers. The two forms of advertising we have decided to employ are a television

commercial and a newspaper advertisement. Both mediums are used by the target customer of

Dole POMARILS, as shown by the Media Mark data displayed in Table 1 below. Our target

market already uses these mediums, so they are convenient avenues for potential consumers to

become aware of the product. This ease of awareness also aligns with the convenience

positioning of the product.

MRI Attribute Dole Index Pomegranate Index

Quintile TV (total) I 119 79

Quintile TV (Prime time) I 114 108

Tercile TV (Day time) I 121 93

TV Show Types: Daytime Dramas 145 103

TV Show Types: Daytime Talk/Variety 133 118

TV Show Types: Feature Film-Primetime 145 169

Quintile Newspaper I 114 119

Table 1: Media Mark Reporter data (44)


Television Commercial

Dole currently promotes its fruit bowl products with a commercial stating its simplicity.

According to the commercial, “At Dole, we try to keep it pretty simple. We start with the best

fruit, pack it in 100

percent juice, and let the

award-winning taste

speak for itself.” (43) The

commercial can be

viewed on YouTube, and

features inviting music

and crisp graphics of the

fruit that goes into the

products.

The Dole

POMARILS television commercial will be partially modeled off this pre-existing commercial.

However, the message of the commercial will be part of our positioning: Fresh. Convenient.

Deliciously Healthy. This commercial will feature the product, rather than actors so as to

promote and raise awareness for the product itself. A 30-second television commercial can reach

thousands of homes, especially if aired during the right times. Due to the MRI data found in the

table (above), we believe these commercials should run during primetime as well as daytime

television programs. Our target market is more likely to view a daytime talk show or a primetime

feature film than the average consumer. Therefore, airing the television commercial during these

times will allow significant reach of our market.

Ending television commercial scene (38)

)


Newspaper Advertisement

The older members of our target

audience are consistent users of newspapers.

Due to this, we have decided to place

advertisements in both local and national

newspapers to build awareness of the product.

The advertisement is simple and easy to read,

staying consistent with the message of

convenience. In addition to introducing the

product, the ad features a manufacturer’s

coupon, which allows readers to receive 50 cents off a package of Dole POMARILS. This

advertisement integrates sales promotion with its discount coupon. This further enhances the

message of convenience because the coupon is conveniently accessible and can be used in any

retail store. The advertisement encourages the reader to “ask for them in your local grocery

store.” This line is implementing a pull strategy to derive demand for the product and gain

market share.

Social Media

Although social media use is not completely widespread in older generations yet, it is a

valuable marketing tool that will help Dole POMARILS gain awareness among consumers. The

three sites we have decided to utilize are Facebook, Twitter, and YouTube. All three platforms

can be integrated, so as to provide a cohesive message to potential consumers. Dole currently has

a presence on all three platforms, so Dole POMARILS simply needs to be added and integrated

into the content of these sites.

Newspaper advertisement (39)


Facebook

Dole’s current Facebook page features several apps for different areas of the Dole Brand

(40). Similar to the Dole Smoothie Shakers app,

an app for the POMARILS product should be

added. The app will be connected with the

existing Dole Facebook page, which will provide

convenience and build upon the Dole brand.

The POMARILS app will boast images of

the product, as well as highlight its benefits. In

order to view the entire app, Facebook users will need to “like” the Dole brand page. This will

increase the likes on the Dole Facebook page, as well as allow Dole to periodically remind

consumers of its product through statuses; these statuses are viewed on fans’ timelines. Once

users like the page, they will be able to print coupons for discounts on POMARILS products.

In addition to coupons, users have the opportunity to view the product and read about its

health benefits. There will be an interactive discussion board to allow users to give their

feedback on the product, as well as ask questions. Another interactive feature will be the ability

for users to submit photos of themselves enjoying POMARILS that Dole can post to the

Facebook app. Finally, Dole can embed the television commercial via YouTube for users to

view.

Current Dole Facebook page (40)

Insert POMARILS

App Here


Twitter

Twitter will not be as heavily

utilized in the promotional mix, but it is an

important part of creating an integrated

communications plan. Dole currently

operates a Twitter account (@DoleFoods),

which will be utilized to help spread the

word about its new product, POMARILS

(38). We will integrate the Twitter account

with both the Facebook and YouTube

accounts. To accomplish this, Dole will

need to link their Twitter account with the

Dole Facebook page, which will allow Facebook posts to be visible through the Twitter page.

We can integrate YouTube with Twitter by tweeting YouTube links of the commercial, as well

as other videos created regarding POMARILS.

In addition to integrating other social media platforms, we will use Twitter to raise

awareness of the Pomegranate fruit. We will implement a “Friday Fun Fact”, which will

highlight a fact about the health benefits of eating Pomegranates. Tweets will happen each

Friday and will always ends with the phrase, “Try Dole POMARILS today for a fresh,

convenient, and deliciously healthy snack.” A link can also be added that directs users to the

Dole POMARILS Facebook app.

Figure 3: Current Dole Twitter account (38)

Update image to POMARILS product


Finally, during the introductory promotional phase, Dole’s cover photo should be updated

to an image of the Dole POMARILS product. This provides a reminder to consumers even if the

most recent tweet is not about POMARILS.

YouTube

The final social media platform we

propose utilizing for our communication plan

is YouTube. Dole is currently utilizing the

site very efficiently, so adding content

promoting POMARILS is beneficial. Dole

has a channel with a variety of existing

playlists including: Behind the Scenes,

Women’s Health, Dole Smoothie Shakers,

Dole TV Commercials, and Healthy Lifestyle Tips (39). Dole can create new videos relating to

POMARILS and build upon its current YouTube channel.

Videos can be integrated by creating a playlist title Dole POMARILS. In this playlist,

there will be the television commercial, a behind the scenes video, and an introductory video.

The behind the scenes video will give the consumer an inside look at where POMARILS come

from, reiterating their healthy nature and freshness. This video can also be placed on the existing

“Behind the Scenes” playlist. The introductory video will present POMARILS to the world. This

video will portray how fresh, convenient, and deliciously healthy POMARILS really are. It can

also highlight the benefits of POMARILS over traditional Pomegranates: less mess. All the

videos can be posted to Facebook and Twitter as well to reach as many potential consumers as

possible.

Current Dole YouTube channel (39)


Sales Promotions

POM Wonderful has the majority of market share for Pomegranate products, so sales

promotions are important to separating POMARILS from the competitor. We plan to use in-store

coupons with instant discounts and in-store displays to differentiate POMARILS from its

competition.

The in-store promotions can be integrated to provide a bigger impact for consumers and

increase awareness of the product. The in-store display will feature a small stand-alone structure

in the refrigerated produce section. The display will fashion the Dole POMARILS logo in

multiple locations to reiterate the product name and aid retention. Several packages of the fresh

arils will be showcased in the small, refrigerated display. A folder on the side will house the in-

store coupons.

In-store coupons will boast a BOGO sales promotion. For every package of POMARILS

a consumer purchases, they will receive 50% off their second package. They simply must present

the coupon collected from the in-store display

to their cashier to receive the discount. By

utilizing both in-store displays and coupons, we

allow a convenient way for the consumers to

save money and reiterate the message that

POMARILS are fresh, convenient, and

deliciously healthy.


Direct Marketing

In addition to advertising, sales promotions, and the use of social media, we want to

employ direct marketing through in-store sampling. Sampling allows consumers to test the

product before purchasing it. It also builds awareness with a physical product to try and evaluate.

Through one-on-one interaction with the customer, sampling providers can gain feedback and

conveniently explain the value and message of Dole POMARILS. In-store sampling can also

generate word of mouth, which will further spread awareness of the product. Sampling should be

In-store display


done near the Dole POMARILS in-store display and the individuals sampling the product will

receive the in-store coupon.

Competition

POM Wonderful currently utilizes its

website and Facebook to advertise POM POMS.

Its Facebook has applications for its different

products, and one specifically for the POM

POMS product (41)

The POM POMs app offers a coupon to

the viewer if they “like” the POM Wonderful

page. Once liked, you can download a coupon

for 50 cents off any POM POMS product (redeemable only in the U.S.). Liking the page also

unlocks different activities, which include: polls, feedback and review section, and a POM

products store locator (42)

In addition to Facebook, POM Wonderful

employs a Pinterest page that highlights its

products and provides links to their website (42).

POM Wonderful often utilizes public

relations to create awareness for products.

Furthermore, they promote traditional

POM products, such as pomegranate juice,

through traditional media. However, POM POMS have not been heavily advertised on traditional

media to date.

POM Wonderful Facebook page (41)

POM POMS Facebook app (42)


ATTACK AND DEFENSE STRATEGY

Dole plans to slowly increase awareness and sales of the POMARILS products slowly.

By doing a slow market share gain we will be able to estimate the true profitability of the

product. The problem with attempting slow gains is that this allows time for competitors to

develop competing products of the same category. When new entrant emerges into the market

Dole will begin implementation of its defense strategy.

Price

Based on Dole’s internal cost efficiencies and control over the supply chain, we believe

that few firms can compete on price, although major fresh fruit and vegetable companies such as

Chiquita and Del Monte may have similar advantages. Since the initial strategy is penetration

pricing, our product will continue to be priced lower than our competitors. If Chiquita or Del

Monte is able to undercut us on price, our goal is to keep prices no higher than 10% of the lowest

price on the market. We believe initial market share gained and Dole’s reputable brand image

will protect any potential price war in the market.

Product

Chief competitors offer fresh Pomegranate seeds in four-plus ounce containers. Dole

POMARILS offers this similar product weight in a two-pack container, which is a preferable

serving size and more convenient for customers to place in lunches and other quick-food choices.

Should competitors modify their packaging, Dole will innovate and change to make the product

unique. One possible idea is to include small spoons with our packaging, similar to those used by

POM Wonderful.


Distribution

Few competitors can effectively compete against Dole’s current distribution network.

The reason for this is because of the amount of assets Dole currently possesses. They have the

ability to internally control all level of the distribution if they so choose. This means the cost

associated with finding fresh produce and transportation will be drastically reduced. Dole also is

able to negotiate better deals because of the quality of their brand name. Dole is has much larger

economies of scale than any of the smaller competition. Organizations that could be a cause for

concern would be Chiquita and Del Monte because they have similar distribution abilities.

Promotional

The current promotional plan effectively reaches our target market through traditional

media and social networking sites. In-store couponing and sampling sets Dole POMARILS apart

from the competition, along with their social media promotions. When competitors begin to

notice the effects of our successful promotion plan, they may begin to imitate it and attempt to

outdo us. While it is difficult to predict competitors’ advertising, it is important to match it in

order to remain competitive. To defend against competition, we plan to continue our advertising

focus on the current target market, but also expand the reach of our message to younger

generations to gain more market share.


SUMMARY

The POMARILS product will be a good combination of the traditional canned fruit or

fresh fruit. Having a strong brand image will help draw attention from current Dole supporters as

well as draw in other potential clientele. The attention paid to health food had been increasing in

recent years throughout the United Stated. This would be an opportune time to introduce a

product that fits into this category as well as into the continually expanding convenience base of

products. Success in the products as sliced and packaging of fruits and vegetables gives a

reputable basis for POMARILS’ success. The price, product, placement, and promotion of this

product make a slow gain in market share achievable and highly probable.

If the POMARILS product is more successful than anticipated then and eventual

combination of this product into other craft offering is likely. This would be like combining

Dole’s sliced banana, strawberry, and coconut with the Pomegranate seeds as a new single

serving product offering of its own. This product would be good in testing the consumer

response to perishable items in a serving cup. When POMARILS is successful is will be possible

to adapt other Dole fruit offering so a similar.


APPENDIX A: TIMELINE

This timeline, taken directly from Dole’s website, illustrated Dole’s ascent to a major

player in the fruit and vegetable industry, from its humble beginnings in Hawaii. (8)

1851 - The foundations of Dole Food Company, Inc. are laid as Samuel Castle and Amos Cooke,

originally from Boston, set up their trading company in Hawaii.

1899 - James Drummond Dole comes to Hawaii, fresh out of Harvard's School of Horticulture

& Agriculture.

1863 - Philipp Astheimer & Sohn is established in Hamburg, Germany. This company is now the

basis for Dole’s European business.

1899 - James Drummond Dole comes to Hawaii, fresh out of Harvard's School of Horticulture

& Agriculture.

1901- James Dole begins growing pineapples in Wahiawa, on Oahu Island, Hawaii. He founds

the Hawaiian Pineapple Company and starts to make the name of "Hawaii" synonymous

with "pineapple". Dole makes his famous quality pledge: “We have built this company

on quality, and quality, and quality”.

1907 - Dole moves his pineapple cannery to Honolulu and places advertisements in U.S.

magazines to promote pineapple – one of the first nationwide consumer advertising

campaigns in America.

1911 - A Dole engineer, Henry Ginaca, invents a machine that peels, cores and cuts pineapple

at the speed of up to 100 pineapples per minute. The Ginaca is now an industry standard.

1915 - The Hawaiian Pineapple Company becomes Hawaii’s second largest industry.

1932 - Castle & Cooke acquires ownership of 21% of the Hawaiian Pineapple Company.

1933 - Recognizing the popularity and quality associated with James Dole 's name, the


company first stamps " Dole " on cans of pineapple and pineapple juice.

1961 - Dole merges with Castle and Cooke and keeps the Dole brand.

1963 - Dole Philippines, the pineapple-growing operations in the Philippines, is organized

under the name DOLEfil.

1964 - Castle & Cooke purchases a 55% interest in the Standard Fruit & Steamship Company,

New Orleans, entering the banana business. It later acquires 100%.

1972 - Standard Fruit bananas adopt the Dole ® label, replacing the existing Cabana® label.

1973 - Castle & Cooke develops two large banana plantations on the coasts of Costa Rica and

Nicaragua. Castle & Cooke banana operations become the leader in the North American

market.

1975 - Philipp Astheimer & Sohn is acquired by Castle & Cooke.

1978 - Dole bananas are launched in Europe.

1978 - Castle & Cooke purchases Bud Antle, Inc., a vegetable company, and begins marketing

vegetables from Dole.

1982 - The Dole product range in Europe is extended to include citrus and deciduous fruits.

1986 - The Dole logo is redesigned. The bright yellow sunburst is chosen, signifying freshness,

quality, wholesomeness and good-tasting products.

1988 - Philipp Astheimer & Sohn marks its 125th anniversary. The company is renamed DOLE

Fresh Fruit Europe OHG.

1990 - Dole Fresh Vegetables division introduces a line of value-added packaged fresh

vegetable products, which include pre-cut vegetables and salads. This soon becomes the

fastest growing segment in supermarkets – the refrigerated, pre-cut vegetables and salad

section


– offering nutrition, good taste and convenience to consumers.

1991 - Dole launches the " Dole 5 A Day Program" to encourage young children and their

families to eat five or more daily servings of fruits and vegetables.

1995 - Dole 's global reach extends to more than 90 countries with a product line of over 170

fresh and packaged food products.

1998 - In July of 1998, Dole 's banana operations in Costa Rica become the first banana

exporter and the first agricultural producer in the world to become certified to the

environmental management system requirements of ISO 14001. Dole 's other divisions

in Latin American and Asia follow in 1999.

1999 - Dole introduces Fruit Bowls®, the first all-natural fruit snack in a plastic cup. In

mainland Europe they are known as Fruit Snacks.

2001 - Dole introduces organic bananas.

2002 - Dole 's two newest container ships – the Dole Chili and the Dole Colombia –

receive the "Winner for Innovation in Shipbuilding Containership" at the Lloyds List

Awards.

2003 - Dole is taken private by Mr. D. H. Murdock.

Foundation of the Dole Nutrition Institute to "Feed the World with Knowledge" through

research and education.

2004 - Foundations laid for California WellBeing Institute.

Dole acquires JR Woods (frozen fruits) in the US.

Acquisition of Coastal Berry Company LLC (leading producer of fresh California coastal

strawberries and bushberries).

2005 - Completion of the acquisition of SABA Trading AB (Sweden).


2007 - Dole Food Company, Inc. is named to "World's Most Ethical Companies" list by

Ethisphere Magazine.

2010 - Dole France, UK, Spain and Portugal are sold to Compagnie Fruitière, in which Dole

has a 40% interest.

2011 - Dole acquires berry grower and marketer Sunny Ridge.

2012 - Dole acquires a 100% interest in Mrs. May’s Naturals.


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