Business of Ocean Spray Cranberries Inc - Case Study Example

TABLE OF CONTENTS Executive summary Introduction Objective of relaunch The Exhibition Planning process Conclusion & Recommendations References Executive Summary: Ocean Spray Cranberries is in a re-launch phase. The juices range is flourishing over all through addition of new flavors but overall individual brand wise in the juice category the brands are losing their sales due to stiff competition by private label competitors and high end brands also competing in this category. As a result the company has decided to re-launch the sauce range and revive this range which became the start of this company which now is owned by over 650 grower families. The re-launch phase of sauce is quite critical for the future of the company ultimately hence all formal procedures have been formed so make this re-launch a success. INTRODUCTION: OVERVIEW AND BACKGROUND Ocean Spray Cranberries Inc. is United States based cooperation. It is an agricultural supported cooperation which initially started out of love for cranberries by three partners over 80 years ago. Leadership and Contribution: The partnered venture was lead by Marcus L. Urann, a lawyer and a cranberry grower himself. Under his lead the three partners came up with new and innovative ideas because of which Ocean Spray got initial recognition and success. Currently over 650 farming families contribute growth and cultivation of fruits i.e. cranberries and grapefruits required to produce various products present in Ocean Spray Cranberries Inc product line-up. History: The cooperative’s first product was jellied cranberry sauce, followed by original Ocean Spray Cranberry Juice Cocktail hitting the shelves in the early 1930s, beginning a long tradition of quality, innovation, and success. 1930’s marked OSC’s step into the market with Jellied Cranberry Sauce as its first product which was backed up by Ocean Spray Cranberry Juice Cocktail. Achievements: What followed was pure innovation and creativity so much that Ocean Spray Cranberries has become the market leader and bestselling brand in US, Canada and Mexico. While at the same time OCS is also the largest producer of canned and bottled juices. Ocean Spray Cranberries has also enjoyed success in Europe specially in United kingdom. Ocean Spray Ruby Red Grapefruit Juice is the most famous product of Ocean Spray Cranberries till uptil now. Product Segmentation and Diversity: Starting off from sauce and juice the cooperation over the period of time realized that they have to introduce diversity in their product range so as to cater to a larger target audience while at the same time retaining their customers by offering them new products to try and select. The last two decades saw rapid product development and introduction tempering an increase in sales and profit due to new range of items in the product range indicating that market was supporting their products and new introductions. Product range: Ocean Spray product range is made up of the following categories: • Juice and drinks • Craisins dried cranberries • Dried fruit • Sauces • Fresh Fruit • Oatmeal Brand’s Description, Target Market: Ocean Spray Cranberries products obviously comes in the category of convince goods and targets adult segment of the population building a strategic advantage which doesn’t make its juices dependent upon the presence and capturing of younger segment of the target market i.e. kids and teens who prefer sweeter alternatives. Current Scenario: Ocean Spray Cranberries highest selling product is its Classic version which is the highest priced aswell. The premium selling product sales have significantly declined in the past three years by 9.3%. The probable reason behind the decline is the easy availability of substitute brands which have lower price. The point which was Ocean Spray Cranberries strategic advantage is not strong enough to withstand against the attractive pricing strategies of the competitors. Also alliances of private labels with Big departmental stores give them better shelf coverage which further negatively effects the sales of Ocean Spray Juices. Also the brand recall is very low, out of everyone asked in a market survey no one seemed to recall last promotional campaign of Ocean Spray OBJECTIVE OF RELAUNCH Stopping the falling sales in the retail sector has been quite an issue as new alternatives are offering attractive pricing. OSC faces a tough competition from well establish brands like Del monte, Tropicana etc. Also they haven’t introduced any new flavor or variety in sauces which is causing the sauce range to be left out of promotion. Although Ocean Spray Cranberries has spent a fair amount on promoting their product, still the sales are not up to the benchmark they intend to reach. The objective of this re-launch is to attract customer attention towards the sauce range, introduce them to the new sauces primarily females who purchase household groceries. The stall at the exhibition will be accompanied by ambassadors of the brand which shall thoroughly inform the attendees of the exhibition with the attributes of new products and their packaging. The company did an extensive study before launching it and they offer superior quality Sauces which are only ones of their kinds on a fair price. The management believes that the problem lies in the AATR of the product. AATR is: Availability Awareness Trial Repeat purchase of the product. THE EXHIBITION PLANNING PROCESS We’ll follow a formal procedure for the planning process so that all the activities are aligned and are executed in orderly manner leading to success of the event and achievement of objectives expected from the event. Analysis of exhibition project Taste of Christmas London Exhibition is exactly the type of event we need to launch our new range of Sauces. The event includes presence of world class chefs, restaurants that are famous for their exclusive cuisines and all the seasonal delights all available at a single spot also including cooking demonstrations of dishes specific to the Christmas. The event attracts families, group of friends, chefs and cooks who look forward to the delightful big day. The exhibition selected to Re-launch the sauce range is quite critical as successful execution at Taste of Christmas London Exhibition can lead to instant impact on sales of sauce range in UK as well as creating brand awareness amongst customers and potential customers. Also the location of the Stand will have to be chosen quite strategically as it shall play a key role in the promotion of Ocean Spray Cranberries. If the stand is easily accessible and viewable then it will have effective communication of massage that we are trying to deliver to our target audience. Inventory & Placement. As the event is on a big-scale and attracts audience majority which matches our customer profile indicates that our stand should be attractively decorated specifically promoting the Sauce range as Ocean Spray Cranberries juices are already recognized and leaders in the UK but the sauce range requires revival. It should feature banners . Also samples of the new sauces specific to Taste of Christmas event should be made and placed at the stand as this can instigate repeat purchase by the potential individual or sample taker. The new jars with helpful which have been introduce in the re-launch of sauce range should be available in significant quantities. Preparation: The preparation for the exhibition will require staff, ambassadors, goods and promotional material. The company staff will keep a check of proceedings taking place at the stand. Ambassador presence is quite necessary for the stall as they’ll inform personally and convey information of products to the attendees and audience of the event. Before the exhibition the ambassadors will be given formal training regarding which profile of attendees to target, how to inform them, which information to cater to whom amd how to collect feedback from them. The ambassadors will have to inform the respective attendee about the product range thtat Ocean Spray Cranberries offers, what new products have been introduced in the sauce category and how the company taking their consumer into perspective have employed new packaging so they don’t have trouble while people face while opening traditionally designed packaging of jars. Concept development The stand shall feature banners and standees which shall clearly highlight: New products Attributes Benefits The new revived appearance Packaging changes and advantage. The main benefits of this strategy will be that the already existing customers will themselves get attracted towards the new products and will raise curiosity regarding new design and packaging. This will help the company and ambassadors work to inform and provide information to the potential new customers. Also flyers featuring Two new sauces, new packing and their attributes should also be made as they’ll play a critical role in creating awareness and retention regarding improvements in package design and product ingredients. A specific questionnaire specific to the event and new products shall also be formed which shall be greatly helpful in gaining insights regarding consumer opinions about sauces and juices. The consumers will be asked to provide feedback regarding the new Sauces introduced in the range either verbally which can be noted down by the ambassadors or if they are willing than a questionnaire will be provided to them for formal feedback. Realization After the first four stages of the planning process Ocean Spray in this stage should keenly observe conversion of what got planned in the previous four stages turn into actual forms i.e. the development and production of necessary promotional material, training and performance of ambassadors, questionnaires. Evaluation Evaluation shall be the divided into two phases Exhibition Response Post exhibition response Exhibition Response This response will be calculated by many pre-defined factors. The product awareness that was created and how customer responded to the information provided to them. Relevant to the information provided to them did they make purchase from the stand ? The questionnaires they filled out will prove quite substantial in providing critical information regarding customer demands and expectation from Ocean Spray Cranberries. Post Exhibition Post exhibition response shall be monitored by analyzing sales data of sauce range in the UK. As in the UK the sauce range wasn’t much popular so any positive trigger that shall be seen in sales shall be deemed as a success for the exhibition event. Next through thorough evaluation of the entire even we’ll get to know the strengths and weakness of our communication mix i.e. through direct feedback recorded by our ambassadors during the exhibition making this information as quite valuable as its first hand information directly from the costumers mouth. PROMOTIONAL MIX FOR THE RE-LAUNCH For the product to be successful in the market , efficient marketing through advertising in print , electronic , posters , billboards have to be done inorder to make customers of what the company offers and what’s to come ,each means of communication transmitting the same message (IMC). The product is being formally re-launched through Taste of Christmas London Exhibition. Advertising Teaser advertising shall be done on television and social media simultaneously telling people about re-launch at Taste of Christmas London Exhibition. The curiosity factor will derive cranberry lovers to the exhibition as its an annual exhibition which provides quality environment as well. Sales Promotion Initially Small sample packets of the sauce shall be introduced along with famous juices which have a strong consumer base who purchase juices regularly. Doing this will lead to paid sales of the sauce range. Also to support grand re-launch pricing discount or greater quantity with similar pricing will lead to increased sales. Personal Relations Whenever a new product is launched or re-launched, it is very important to create good relations with public, customers, whole sellers, retailers and also the government. Hence it is necessary to gain insight their demands or expectations regarding major features of the new product planning Ocean Spray Cranberries and other related issues. Personal selling It’s a convenience good and related to a Well Established brand hence personal selling will not be preferred. Conclusion and Recommendations The selection of such an Exhibition for re-launch is quite a strategically strong move as it clearly aligns with the theme of the exhibition and product attribute. Also the selection of season compliments the time of re-launch. If everything is executed as planned than the event shall bring success to re-launch if the whole event execution unit functions as a unit. The re-launch of new sauces in UK should have been done after their launch in America as the market there is already familiar with Ocean Spray Cranberries sauces and would have tried the new launch without having to go through a public re-launch. Also the company should use social medium more as 21st century trends on connectivity and word of mouth spreads virally through social media. REFERENCES Ocean Spray. 2011. Who We Are - Heritage - Our History | Ocean Spray. [ONLINE] Available at:http://www.oceanspray.com/Who-We-Are/Heritage/Our-History.aspx. [Accessed .]. Iain Maitland, IM, 1997. 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