Jet 24
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Jet 24, a fruit-flavored concentrate that could be spray into a glass of water to produce a fruit-flavored beverage, was a new product concept for General Mills, Inc. The reason for calling the product concept Jet 24 was because the pressurized can product can contain enough concentrate to provide 24 8-ounce drinks with five or six possible flavor, and it has ÐŽolight carbonatedÐŽ± feel in the mouth even though no carbonation was added. General Mills wanted to launch this new product to the market, but an unresolved issue was how to make the product after the product manager conducted several studies.
Problem Statement:
1 The Jet 24 product manager lost focus on the market targeting.
2 Consumers believe the can may cause safety problem, kids may make a
mess with it, and parents wonЎЇt know how much is left in the can.
3 Jet 24 did not meet customer need because it has no nutritive value, such
as vitamin C.
4 There is some doubt about whether the can would actually produce 24
servings.
5 Consumers had a wrong image about the Jet 24, they thought Jet 24 is
carbonated soft drink.
6 Consumers might have very different drinks depending on the
concentrate usage.
7 In the comparison with Kool-Aid, jet 24 was expensive, lack of food
value, and mess.
8 The ÐŽopresweetenedÐŽ± nature of Jet 24 tends to raise questions about flavor
and also about ÐŽostickiness.ÐŽ±
9 Jet 24 did not compare favorably with Hawaiian Punch. It lost on
features such as taste, color, and aftertaste.
10 The Jet 24 product is not making profit because its advertising expense
is higher than it is gross profit.
From the data in the case, the gross profit of Jet 24 is
634375 case * $ 4.75/case = $ 3,013,281
Which is less than the two option of advertising expense $3,855,000
and $ 7,862,000.
Competitive Advantage: