CASE STUDY -FRUIT FIRST LTD

Fruit First Ltd produces a range of ‘smoothies’, a fruit drink made from crushed fruit.
Mary Ryan, a food scientist in the food industry, identified a gap in the market for an Irish
supplier of natural fruit drinks. In her spare time she produced a batch of smoothies,
supplying samples to local shops. Encouraged by the favourable responses, she left her
job and set up Fruit First Ltd in 2001.
The business, based in the midlands, sources fresh fruit locally and from abroad. Bringing
new investors on board in 2006 enabled Fruit First to invest in larger premises, doubling
its production capacity. Profits are approaching €1million and the business now employs
thirty full-time workers.
The chilled drink products come in attractively designed cartons of different sizes,
supplied by a local firm. Fruit First vans deliver the products to retail outlets, nutrition
shops and fitness centres nationwide. Mary’s focus on producing a quality product has
allowed her command a higher price than her competitors. Annual investment in
research and development has led to a widening of the product range and development
of a green image for the business. Initially Mary used local supermarkets to encourage
consumers to taste the products. Over time Fruit First’s marketing strategies expanded
and the brand has now become associated with ‘National Healthy Heart Day’.

As the leading Irish supplier of smoothies, further expansion in the small Irish market is
unlikely. Mary sees the potential to grow the business and she is considering entering the
UK market initially and subsequently the wider EU market. While recognising the high cost
base in Ireland and the perishable nature of the product, Mary has begun developing an
export strategy. Fruit First is in discussion with a leading food retailing chain in relation to
supplying shops throughout the UK. Mary views this as an opportunity and a necessary step
before entering the wider EU marketplace.

 Discuss how Fruit First Ltd benefits the local and national economy. Refer to the
above text in your answer.
SOLUTION:

Case summary: Fruit first ltd is widely known for its range of fruit drinks. Most interesting
thing in their drinks is that it is made from crushed fruit pulp. Due to its health friendly
products the business was expanded at larger level and appropriate marketing strategies
helped a lot.

Solution: Fruit first ltd is involved in manufacturing fruit drinks from pulp. So as the
product is related to health of human. So company can enter in each and every corner of
the world. There are ample benefits of fruit first to local and national economy as:

Increase in Gross Domestic Product: GDP is the broadest quantitative measure of a

nation's total economic activity. More specifically, GDP represents the monetary value
of all goods and services produced within a nation's geographic borders over a specified
period of time. So, production of fruit drinks will increase the value of the nation in terms
of GDP.

Health benefits: as the processed drink made by company is considered as healthy

drink ,so it will help the people is maintaining healthy life style by adding juice in their
meals. In addition, Some juicing proponents say that juicing is better for you than is
eating whole fruits and vegetables because your body can absorb the nutrients better
and it gives your digestive system a rest from working on fiber.

Foreign trade: International trade is the exchange of capital, goods, and services
across international borders or territories. It is the exchange of goods and services
among nations of the world. In most countries, such trade represents a significant share
of gross domestic product (GDP). So as company is expanding its hands to
international market which will further lead to earn foreign currency by selling their
products across the boundaries.

Research and development: Research and development is a component of Innovation

and is situated at the front end of the Innovation life cycle. Innovation builds on R&D
and includes commercialization phases. As company is spending hefty amount on R&D
which is setting new benchmarks for health drink companies. These sort of practices will
further lead to development of new ideas and innovation in the relative sector.

Cross cultural relations: company is also considering to enter in well known UK

market which will enhance its cross cultural relations and growing of profits. From the
perspective of distribution channel, company is developing its export strategy and
connecting to leading food retailing chains.
In the end, there are ample benefits derived by the company to economy , general
public and to the nation because of trading the products inside as well as outside the
boundries.