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Marketing Plan for Atlantic Quench - Essay Example

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The paper presents the fruit-juice company’s marketing plan that consists of incorporating new promotional activities, launching new products and diversifying its business in overseas location to increase its customer base and revenue generation…
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Marketing Plan for Atlantic Quench
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Marketing Plan for Atlantic Quench Executive Summary Atlantic Quench is a hypothetical company that has been portrayed as one of the well established fruit juice companies in the industry. The company originated as a cooperative firm originated in US, but diversified its business to Canada and UK as well. The current marketing strategy of the company is to push its product port folio of existing juice products in its existing market. Atlantic Quench has specialized in producing cranberry juice products, which are known for its high nutritional value. Based on the current marketing strategies and the environmental condition, the marketing plan for the next year has been designed. The marketing plan consists of incorporating new promotional activities, launching new products and diversifying its business in overseas location to increase its customer base and revenue generation. Table of Contents Introduction 4 External Analysis 4 Macro Environment Analysis 4 Market Analysis 5 Customer Analysis 6 Competitor Analysis 7 Internal Analysis 7 Overall Performance 7 Current Marketing Mix 8 SWOT Analysis 9 Strengths 9 Weakness 9 Opportunities 9 Threats 10 Objectives 10 Mission Statement 10 SMART Objectives 10 Marketing Strategies 11 Ansoff Matrix 11 Bowman’s Strategy Clock 13 Core Target Segments 13 Positioning 14 Marketing Program 14 Product Strategy 14 Pricing Strategy 14 Place strategy 14 Promotion Strategy 15 Marketing Communication Strategy 15 Marketing Implementation and Control 15 Time Schedule 15 Who is responsible? 16 Budget 17 Control 17 Reference List 18 Bibliography 20 Introduction The marketing plan of a company acts as a blueprint which guides the future marketing efforts of an organization. The marketing plan encompasses the developing a desired marketing mix and isolating the target customers based on the product category and positing of the company (Lavinsky, 2013). This paper is focused on the marketing strategies and future marketing plan of a hypothetical fruit juice company called Atlantic Quench, which is a cooperative firm originated in US. It covers a detailed study of the existing marketing strategies of the company along with the internal and external environmental analysis. The marketing plan has been outlined by SMART objectives and it includes the strategies to devise the future marketing mix and marketing communication strategies for the next year. External Analysis Macro Environment Analysis Political The political environment of nation largely influences the marketing strategies of a firm. It dictates the trade policies and regulations both in terms of domestic and overseas operation (Aaker, 2010). Atlantic Quench mostly operates in the US which is its home country and it has also diversified in to UK. These nations have a relatively stable political structure to support the growth of a fruit juice company like Atlantic Quench. However, the rise of the interest rate by the US government has made it relatively difficult for companies to finance their business. Moreover, the political relationship between the home country and the host country can also influence the supply chain of the companies. Therefore, the success of internationalization of Atlantic Quench is dependent of the political status of the US. Economic The economic structure of a nation determines the affordability of the customers. A stable economic condition suggests that the customers have a high disposable income and are capable of purchasing niche or highly priced products. Since, Atlantic quench targets mostly the niche market by its cranberry products, so the affordability of the customers is highly important for the company to reach its desired sales figures. The economic crisis in US triggered in the year 2011 have negatively impacted the affordability and employment status of the entire country, which in turn had reduced the affordability of the customers (Li, 2012). The financial crisis had reduced the revenue and profit generation of the firms including Atlantic Quench. Social The social structure of region highlights the consumer behaviour, their preferences and their consumption pattern. The food habits of the consumers have gradually changed over the years. According to the reports of Lanschützer (2013) published by Mintel, it has been evidenced that there is a growing trend in fruit juice drinks consumption among the consumers (Lanschützer, 2013). It has been evidenced that the consumer group aging from 25-34 years exhibit the highest consumption level. The rise in number of this particular age group can prove to be lucrative for the juice drink companies like Atlantic Quench. Moreover, the growing health concerns in UK have led the customers to shift to a healthy diet consisting of fruit juice products. Technological The technological infrastructure of a nation largely influences the operational activities of the firms. Atlantic quench operates mostly in US, Canada and UK. These countries stand among the most technologically advanced nations, particularly US and UK (Rediff, 2011). This as a result helps Atlantic Quench to utilize the technological availability to improve its research on product development and increase its efficiency and production capacity. The increased usage of internet and social media can also help the company in its marketing and promotional activities. Market Analysis According to the reports of the global soft drinks market shows a promising future with a steady growth from 2009 to 2011. As of fiscal year 2013, the industry has recorded a valuation of $624.4 billion, which is a 4.1% growth from the previous year. Moreover, it has also been forecasted that the market will record a valuation of $785.3 billion by 2018 which will be a 25.8% increase from that of 2013. In terms of category segmentation, the fruit juice and juice drinks products hold 17.6% share of the soft drink market, followed by carbonated soft drinks and bottled water. The report has also revealed that the American and European hold the first and second position, constituting for 40.8% and 30.2% of the market value respectively (Marketline, 2014). Figure 1: Global Soft Drinks market value Source: (Marketline, 2014) Customer Analysis In UK, there has been a gradual shift in the eating habit of the consumers. The reports of Lanschützer (2013) have revealed that the market has grown in terms of value but the overall consumption volume has decreased. It has been stated that the frugal spending habits of the customers can be the reason behind the decrease in sales volume (Ferrell and Hartline, 2010). Figure 2: Sales volume of Juice products in UK. Source: (Lanschützer, 2013) Competitor Analysis The fruit juice industry in UK and US is saturated with several well established fruit juice brands, such as Tropicana, Minute Maid, Real, Robinsons, etc (Marketsandmarkets, 2014). These brands try to grab highest market share in the industry by competitive pricing and aggressive promotional activities. The entire soft drinks industry is dominated by the carbonated soft drinks products, in which Coca-Cola and Pepsi holds the first and second position in the market (Marketline, 2014). Internal Analysis Overall Performance Atlantic Quench has recorded a steady growth in its performance in the market. The company has gained in both financial aspects as well as in its brand valuation. In the last four years, the company has recorded a sales growth of above 7% each year for the past consecutive four years. The company has also improved its market share in almost every sector of its business. Apart from cranberries, for which the company is best known for, it has also expanded its product portfolio by offering more juice products made from pomegranate, acai, acerola, etc. This as a result has increased the overall sales of the company by 20% (case study). Current Marketing Mix Product The products line of Atlantic Quench is mostly dominated by cranberry juice products, which are sold under the brands Cranberry Original Juice, Juice Max, Grab ‘n GO. The classic range of the product includes juice cordials as well as light juice products with low juice concentration. It has also introduced juice products made from other fruits such as pomegranates, acerola, gogi and acai berries. The company has several other non juice products such as Crantanas, Cranberry Sauce, etc (case study). Price The price of Atlantic Quench juice products were relatively highly compared to the rival brands. The company highlights the health concerns of the customers which helps it to justify the high pricing. Moreover, the Atlantic Quench is known to specialize in cranberry juice products, which is bears a higher price tag due to its high nutritional value than other fruit products. Place The place indicates the area of operation of the company. Atlantic Quench operates in the entire US and Canada. It has also expanded it business operations to part of UK. Since, the American and Europe market constitute of the two largest consumers of soft drinks so it has proved to be lucrative for the company. Promotion The promotional activities of Atlantic quench are mostly dependent on the television commercials and print advertisements in magazines. The primary objectives of the promotional activities are to inform the customers regarding the health benefits of fruit juice products. The television commercials of the company have gained great popularity and caused high brand recall. The humorous and informative nature of the advertisements has helped the company to increase its sales by 6%. SWOT Analysis Strengths Atlantic Quench has been operating in the fruit juice sector for a long period of time, which has allowed it to gain a significant brand preference from the customers. The company also holds several distribution channels owing to the business collaboration with Coca-Cola in US and Canada and Gerber in UK. This has allowed the company to cater to a large customer base. Moreover, the popularity of the Atlantic Quench brand has helped it to increase its sales over the years. The collaboration with Gerber has allowed the company to enter the overseas market. Gerber is one of the largest suppliers of juice products, thereby allowing Atlantic Quench to have access to a wide distribution of the UK market. Since, the company specializes in cranberry products, which is known for its nutritional value, it leverages the high demand to sell cranberry products at a higher price. Weakness The company has a relatively narrow product portfolio compared to that of the rival companies like Pepsi. The company is only dependent on juice products and other fruit based products. This as a result has limited the income portfolio in to one product category. Moreover, its business partner Coca-Cola also has its own fruit juice brand called Minute Maid, which can cause internal cannibalization. Opportunities The company holds potential opportunities to spread its business to other European countries by making collaboration with third party bottling and distribution companies. Atlantic Quench can also increase its product portfolio by introducing low calorie carbonated drinks and bottled drinking water. It also holds prospective opportunities in the energy drink and smoothies market. Threats The company faces significant threats from the rival brands like Tropicana, J2O, etc. The steady growth of the industry has attracted a lot of companies who are offering almost identical products at a competitive price. Atlantic Quench also faces certain environmental threats; the unfavourable climatic conditions can reduce the productivity of cranberries and other fruits. Objectives Mission Statement The mission statement of the company states that in the near future it will hold the leadership position in the fruit juice market by offering a wide range of juice products. The company also wants to standout in the industry by creating a brand image pertaining to the health concerns of the customers. The mission statement of Atlantic Quench also states that the company will diversify its business in to other potential and untapped locations in Europe. SMART Objectives The SMART objectives of the company for the next year are as follows: To increase the production of cranberries by 12% by acquiring new farms within the next 2 months. To make new collaborations with third party distribution companies to enter in to new markets in other European countries. To diversify its product portfolio by introducing new low carbonated soft drinks to attract new customers. To develop new promotional activities to push the new carbonated soft drinks. At the same time develop new commercials for the existing products to deal with the increasing competition in the market. Marketing Strategies Ansoff Matrix The Ansoff matrix helps to identify the current marketing strategies of a firm in terms of product development and diversifying in to different market location. Based on the matrix a company can pursue of the following four strategic directions (Chernev, 2010). Figure 3: Ansoff Matrix Source: (Cant, 2009) Market Development: The market development allows a company to introduce its existing products in to a new market. Firms usually go for geographic diversification to a new location where it introduces its existing product line. Market Penetration: This strategy allows the company to push its existing product in the existing market. Market penetration is often by employing new marketing strategies like brand rejuvenation, launching new promotional activities, or applying a new distribution strategy. Product Development: The product development strategy allows a firm to develop new products or services to be introduced in the existing market. The company rigorously invests in research and development and faces the existing market competition by introducing new or innovative product experience for the customers. Diversification: By following this strategy a company introduces a new product in a new market. This strategy is a combination of both product development and market development. Based on the current marketing strategies of Atlantic Quench it can be considered that the company is following the market development strategy. The company has introduced its existing products in new markets like Canada and UK. Bowman’s Strategy Clock Figure 4: Bowman’s Strategy Clock Source: (Kotler and Keller, 2011) The products of Atlantic Quench bears a significantly high perceived value owing to its nutritional value for the customers and the products are also offered at a relatively higher price than the rival brands. Thus it can be assessed that Atlantic Quench is following Focused Differentiation strategy. Core Target Segments The core target segment of the company is to cater to the upper and upper middle class of the society. The high price and the high perceived value of the company suggest that the company has selected the heath conscious customers who are ready to pay extra for high product quality containing high nutritional value. From the Ansoff matrix it has been evidenced that Atlantic Quench is has adopted the market development strategy, which allows it to cater to a large customer base, thereby increasing its sales volume and revenue generation (Dess and Lumpkin, 2009). Positioning The company has been positioned as a niche producer of juice products. The brand image of the company suggests the product’s nutritional value and its positive impact on the consumers’ health. Moreover it is also positioned as a specialist in cranberry juice products. Marketing Program Product Strategy The product strategy of the company is focused on increasing its product portfolio. The existing product portfolio of the company is solely dependent on the fruit products. Depending on limited source of revenue can be risky for a firm; therefore the company has planned to introduce a new product line of low calorie carbonated soft drinks. The product will have low sugar content and low calorific value, which will make it healthy for the customers. This product will be named as “Atlantic Fizz”. The low calorie nature of the product will help it to maintain its brand image of a health concerned company. Pricing Strategy The pricing strategy of the company for the next year will be designed by keeping in mind the existing competition in the market. Since the industry is highly saturated with a lot of well established brands offering identical products at a competitive pricing, so in response Atlantic quench will keep the prices of the existing products same. This as a result will allow the company to offer a similar price thereby dealing with the competition. The new product line of “Atlantic Fizz” will also be price competitively so that it attracted a relatively large customer base. Place strategy In order to grow its business the company will diversify its presence further in the European market. Atlantic Quench has already been able to successfully enter the UK market by making business collaboration with Gerber, who is best known for its wide distribution network. In the near future, the company will further diversify its overseas business in to other European countries like Germany. Promotion Strategy The promotional activities of the company will include designing new promotional activities for the existing product line (Barker and Chitty, 2009). The television commercials will maintain the trademark of humour while incorporating a new jingle with a catchy tune to facilitate better brand recall. The company will also launch a series of teaser campaigns to mark it launch of the new product line of low calorie carbonated soft drinks. The main commercial will indicate the health concerns of the customers and will highlight how the low calorific value will let them enjoy their favourite drink without their health. Marketing Communication Strategy The marketing communication will be emphasized on social media and internet advertisement. Apart from the usual mode of communication such as TV commercials and print ads, Atlantic Quench will also focus on social media websites like Facebook, Twitter, YouTube, etc. The company will mostly publish banner ads and adsense in these websites. This will allow the company to create higher brand awareness about the upcoming products. It will also design a separate marketing communication for its product launch in Germany. The language and the backdrop of the television commercials will reflect German culture. Marketing Implementation and Control Time Schedule Activities 2 Months 4 Months 6 Months 8 Months 10 Months 12 Months Acquiring new cranberry firms Business collaboration with Distribution companies in Germany Introducing new promotional activities for existing products Launching low calorie carbonated soft drinks Promotional activities for new product launch Launching products in Germany Advertisement for German market Who is responsible? For the proper execution of the marketing plan the CEO of the company needs to allocate the right tasks to the right individuals. The required work force will be divided by the higher management and they will be allocated to different tasks involving marketing and financial activities based on their competencies. The marketing team will be given the task to close a business deal with an appropriate distribution company in Germany. The operations team will be given the task on R&D to develop the new low calorie carbonated soft drinks. The team responsible for the marketing communication and branding will take care of the marketing communication and the promotional activities. Budget Particulars Amount ($) Acquiring new farms 20,000 Developing new commercials for existing products 10,000 Business collaboration with German distribution companies 30,000 Developing new carbonated soft drinks 50,000 Researching the German market for product launch 10,000 Marketing communicational activity for German market 10,000 Trial run in German market 15,000 Final Product launch 15,000 Total 160,000 Control Designing a marketing plan is futile if it cannot be properly implemented and get the desired result. Atlantic Quench will need to incorporate an effective performance monitoring and feedback system. The company will implement certain key performance indicators (KPI) and will use it against a balanced score card that will allow the managers to monitor the progress and to ascertain whether or not the activities are progressing in the desired direction (Reinartz, Krafft and Hoyer, 2009). This will allow the company to achieve its desired marketing plan in the stipulated time period and within the allocated budget. The higher management will also incorporate an effective feedback system, so that the subordinates can provide situational report to their supervisors. This as a result will allow the managers to get to know about any issued faced by the teams to while implementing the plan. Reference List Lavinsky, D., 2013. Marketing Plan Template: Exactly What to Include. [online] Available at: [Accessed 21 April 2015] Li, H., 2012. Economic crisis 2011: 10 possible triggers. [online] Available at: [Accessed 21 April 2015] Lanschützer, H., 2013. Fruit Juice, Juice Drinks and Smoothies. 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Bedford, London: Thomson Learning. Reinartz, W., Krafft, M. and Hoyer, W. D., 2009. The Customer Relationship Management Process: Its Measurement and Impact on Performance. Journal of Marketing Research, 41(3), pp. 293-305. Dess, G. and Lumpkin, G., 2009. Strategic Management: Creating Competitive Advantages. 6th ed. London: McGraw-Hill Education. Ferrell, O. C. and Hartline, M., 2010. Marketing Strategy. 5th ed. Mason: South-Western Cengage Learning. Bibliography Biggadike, E. R., 2010. The contributions of marketing to strategic management, Academy of Management Review, 6, pp. 621-632 Brusoni, S. and Prencipe, A., 2009. Strategic dynamics in industry architecture and the challenge of knowledge integration, European Management Review, 6(4), pp. 209-216 Finney, R. Z. Lueg, J. E. and Campbell, N. D., 2010. Market pioneers, late movers, and the resource-based view (RBV): A conceptual model, Journal of Business Research, 61, pp. 925–932. Grönroos, C., 2010. 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Möller, K. and Saren, M., 2009. Do we really understand business marketing? Getting beyond the RM and BM matrimony. The Journal of Business & Industrial Marketing, 24(5/6), pp. 322-336. Newburry, W., 2010. Organisational attractiveness is in the eye of the beholder: the interaction of demographic characteristics with foreignness. Journal of International Business Studies, 37: 666-686. Ortega, M. and García-Villaverde, P., 2011. Pioneer orientation and new product performance of the firm: Internal contingency factors, Journal of Management and Organization, 17 (4), pp. 474-497 Overby, J. W., Woodruff, R. B. and Gardial, S. F., 2005. The influence of culture upon consumers' desired value perceptions: A research agenda. Marketing Theory, 5(2), pp. 139-163 Payne, A. and Frow, P., 2009. A Strategic Framework for Customer Relationship Management. Journal of Marketing, 69(4), pp. 167-176. Pels, J., Coviello, N. E. and Brodie, R. J., 2008. 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