Marketing Plan for the Next Year for Atlantic Quench - Assignment Example

 Outline Marketing Plan for the Next Year for Atlantic Quench Terms of Reference Marketing plans are of high importance to the performance of a product or brand in the market. Atlantic Quench being a business organisation in a highly competitive market, it is essential for them to have a viable marketing plan. This is a marketing plan that will be aiming at presenting the marketing strategy most applicable for Atlantic Quench for the nest one year. Despite the fact that Atlantic Quench is a US company, this plan will focus on the UK market because the company’s main market is in the UK. Executive Summary This report begins by describing the business mission of Atlantic Quench is offering high quality fruit juice and non-juice drinks to the UK market. It also describes the company’s microenvironment which points at the pa capita income, UK of fruit juice drinking, and the licensing agreement with Gerber as some of the factors that has contributed to the good performance of the brand in the UK market. This report presents a review of the market performance of the brand in the UK while reviewing some of the competitors and their strengths and weaknesses. At the moment, the company’s market mix involves availing a variety of quality products, supplying them at the top supermarkets in the UK, and creating product awareness through television adverts (Sharkey, Dean & Nalty 2012, p. 111). The company will be aiming to introduce a new product whose name would be, “Atlantic Tropical”. “Atlantic Tropical” will be made from cranberry, apples, passion fruit, and grapes. “Atlantic Tropical” will be produced under Gerber and distributed in the same way the other products are produced (Jones, Comfort & Hillier 2003, p. 804). The packaging will have pictures of the ingredients used in making the juice. The promotion will be made through television adverts. The implementation will involve the marketing, public relations, accounting, and the design and manufacturing departments of the organisation. Business Mission Atlantic Quench aims at availing the highest quality of juice and non-juice drink to the UK market at affordable prices. The juice drinks include: Cranberry Original Juice and Cranberry Mixed Juice Drinks, which are the main drink. They also offer Juice Max – pure Juice and Grab ‘n’ Go – Single Serve, among many others. The non-juice products include Cranberry Sauces and Cranberry Cordial Juice Drinks, as listed by Katsigris & Thomas (2012) as well as Fresh Cranberries, and New Dried Cranberries. The company also aims at introducing a new drink within the next one year. External Marketing Audit Microenvironment Economic Given the fact that the company always make sure that their products are as affordable as possible, it has been seen that the products are doing well in the UK market. Furthermore, the income per capita of the UK population is high enough for them to afford these products by Atlantic Quench (Lamb 2012, p. 197). Socio-cultural The people of UK also like drinking juice. This is the reason as to why the brand has been able to do well in the UK. The new product being a tropical juice drink is likely to do well given the fact that UK residents consume juices in large quantities (Colby et al. 2010, p. 92). Technology Technology has also been a very important factor in the performance of the brand in the UK. The company has the latest production technologies that enable them to get the most from the fruits and make sure that they are preserved in a manner that the consumers are not affected in any way. Political/legal The licensing agreement with Gerber to manufacture has been very helpful in making sure that the company has an easy time in entering the UK market and thus the quick rise to dominance. They have also been able to produce by the quality and safety standards that have been set by the UK government, which is against the use of any harmful preservatives. The Market At the moment, the company sells more than 800 litres of juice every year in the UK market. Given the size of the UK market for fruit drinks, it can be said that this is an implication that this company serves a very high percentage of the UK market. Nevertheless, the UK market for fruit juice is expected to grow in the next one year because of the fact that the population of the UK has been growing significantly. This means that there is a high possibility that the company will be having more people seeking their products in the next one year. The expected increase in demand is also due to the fact that the company has been having an upward trend in terms of the demand for their products in the UK market (Westwood 2013, p. 202). Most of the consumers of products produced by this company are families. There is no gender difference that has been noted regarding the consumption of the company’s products. Most of the people who take products produced by Atlantic Quench say that the natural taste the juices usually have is what influences their preference of these products to the other juice and fruit products that are available in the UK market. The fact that Atlantic Quench has made a licensing agreement with Gerber means that they have a company with better knowledge of the UK market handling their productions in the UK (Thompson et al. 2007, p. 213). This is a factor that has saved the company the resources that they would have spent on researches on the UK market or the capital that they would have used in putting up production premises in the region. The deals that they have made with some of the supermarkets in the UK also make it easier for their products to be accessible from the UK market. Competition Atlantic Quench faces competition from various other players in the UK. The brands that are likely to be of much significance in terms of competition include: Ocean Spray Cranberry Juice, Lakewood Organic Cranberry Juice Blend, Mountain Sun Pure Cranberry, and Dynamic Health Cranberry Juice Concentrate. The strength of Ocean Spray Cranberry Juice is in the fact that they are made from 100% cranberry (Blanchette & Brug 2005, p. 441). However, it should be noted that they are in most cases highly priced because of the fact that they do not have any concentrates. Lakewood Organic Cranberry Juice Blend produces their juice through a blending cranberry with grapes and apples (Olson & López, 2009, p. 112). They also have no filters or sugars added and thus are completely organic (Bailey 2011, p. 145). However, this brand is usually not economical. Mountain Sun Pure Cranberry and Dynamic Health Cranberry Juice Concentrate both have concentrated and sweeteners and are usually affordable (Ashurst & Hargitt 2009, p. 176). However, they are usually not attractive to people who prefer consuming completely natural juices. Internal Marketing Audit Operating Results There are no much by products that usually come from the production of cranberry juice. As for the new tropical fruit blend there is likely to be no by-products at all. After the products are produced they usually get transported to the various outlets. This is a process that might have some negative effect to the environment to the e environment. Given the fact that the company has the highest market share in the UK market, it is highly likely that the profit margin will be very high. It is hard to predict the performance of the tropical drink yet, but given the performance of the other products under the brand, it is highly possible that it will do wellColby et al 2010, p. 94). Strategic Issues Analysis The current marketing objectives of Atlantic Quench with regard to the UK market is to make sure that they increase their market share by producing products that are of the highest attraction to the UK market (Baines & Fill 2014, p. 211). One of the strategies that Atlantic Quench has always used is the creation of new product with the aim of giving their customers a variety to choose from. The tropical juice will be another way through which the company will be giving their customers in the UK a variety to choose from. The UK market is currently segmented into those customers who prefer organic juices and people who buy products for convenience and those who buy products regularly as a habit. The competitive advantage of Atlantic Quench comes from the fact that they have a variety of products that are produced at high levels of quality, thus availing various options to their producers (Baines, Fill & Page, 2013, p. 2013). Positioning of the Atlantic Quench products takes place through making sure that every of their juices and drinks have specific qualities that are full of nutrients and the use of the best availablecranberry fruits. Marketing mix effectiveness Atlantic Quench has always made that the products that they make are of high quality. They also make sure that they have various products so that they can serve the diverse preferences in the UK market. Given the fact that the UK market is highly competitive, Atlantic Quench has pricing strategy that allows them to be affordable in order to stand the high levels of consumers’ bargaining power in the UK (Brown, Mitchell & Beresford 2005, p. 178). The agreement with Gerber and the agreement with three major supermarkets in the UK also make it easier for Atlantic Quench to make their products available to the UK market. Atlantic Quench has always used television advertisements to promote their products in the UK, leading to an increase in their sales in the country (Thomassen, Lincoln &Aconis 2006, p. 201). SWOT Analysis Otherwise called Internal-External analysis, it compares the strengths, weaknesses, opportunities and threats the business faces in a particular market. The name Internal-External analysis arises because the strengths and weaknesses are internal to the business, whereas the opportunities and threats are external to it. In the case we are dealing with, the industry is highly competitive and a SWOT analysis is necessary to handle the competition as well as maintain the company’s hold on the refreshmentmarket. Strengths The strengths of the company lie in its economic power and good name enhanced through previous years of marketing campaigns. Furthermore; the good image of the company has been bolstered by the company’s dedication to healthy drinks, which has been an issue prevalent in the government’s regulation and policies as well. When these two factors are combined, the company is pedestalled to a position of power in that it will continue to have a say in the launch of other interesting products and in maintaining the status of these products as quality products (Armstrong et al 2012, p. 123). Weaknesses The company’s weaknesses are indeed internal. This makes it difficult to launch a new product when the management, owners and suppliers of the raw materials are in conflict. Decisions are bound to be rescinded and implementation impeded. The recent cases of management and supplier friction are evident examples of the detrimental effects of such scenarios. In the most recent case, the friction between the opposing camps (the farmers and the management) ultimately engendered the retrenchment of three senior management officials and the placement of a new chief. Such disputes slow down the pace of improvement and progress of the company and threaten the sustenance of a healthy business. Furthermore, another weakness noticeable from the market competitors ultimately matures into an internal problem. As the market is populated with new companies, it becomes expensive to advertise a new product in the market. This is the challenge likely to be faced by the company. Infiltration of the market makes it difficult and expensive to purchase the most ‘productive’ air times in the media. Opportunities However, much the competition the company faces in the market, there seems to be always room for innovation. A product like the tropical fruit, which is a combination of different fruits (including cranberry and grapes) would catch on especially from the interpretation of research findings and psychological selling. Findings have indicated that the youth, especially those aged between 15 and 24 years of age are the highest consumers of fruit juice, but even though this is bound to drop, those that consume fruit juice and are between the ages of 30 and 45 are bound to increase. The reason for this increase is precisely because this age group is intent on health issues as they approach old age. Therefore; although it seems speculative that the mixed fruit variety will be of use to people of these ages, research proves this to be the case. Threats As mentioned, the fruit juice industry has and well-grounded competitors who, as much as may be a benefit to the company in terms of keeping the company on its toes, they snatch a fairly large portion of the consumer market of the company. Equally threatening is technology advancement. As various sectors of agribusiness technology make big steps towards a sustainable population through engineering foods, it inevitably becomes expensive to continue depending on natural processes alone for the provision of raw materials. Main points which will influence the strategy Atlantic Quench aims at availing the highest quality of juice and non-juice drink to the UK market at affordable prices. The people of UK also like drinking juice. The company has the latest production technologies that enable them to get the most from the fruits and make sure that they are preserved in a manner that the consumers are not affected in any way. The licensing agreement with Gerber to manufacture has been very helpful in making sure that the company has an easy time in entering the UK. Company sells more than 800 litres of juice every year in the UK market. The brands that are likely to be of much significance in terms of competition include: Ocean Spray Cranberry Juice, Lakewood Organic Cranberry Juice Blend, Mountain Sun Pure Cranberry, and Dynamic Health Cranberry Juice Concentrate. The strengths of the company lie in its economic power and good name enhanced through previous years of marketing campaigns and good reputation. Management and supplier friction is an evident weakness Marketing Objectives Strategic Thrust Before launching the product into the market, a strategic framework has to be put in place. This framework is based on the identity of the market. Here, identity represents the culture and the ways of the market. The behaviour of the consumers is largely dependent on their culture; therefore, consumers in China are bound to act different to consumers in the United States. Strategic Marketing The company has to figure the appropriate strategy to implement when introducing the new product. Different components of culture, especially value, language and other customer behaviours affect the marketing decisions of transnational corporations in different ways (Baisya 2010, p. 167). Therefore, the product and the marketing strategy should align in a way as to cross cut the culture and tendencies of the people without hurting the goals of the company. Core Strategy Target Market The target market, considering the insistence of government policy on healthy food, is any group that observes this priority. The youth, as research has shown, are inclined to forego health for immediate pleasure, but the middle aged and older are more inclined to prioritize health. Also, depending on government regulations, parents of school going children should find this option appealing. Competitor Targets The infiltration of the market with inferior products and the narrow range of flavours on offer necessitate the need to filter out weak competitors (Kotabe & Helsen 2009, p. 156). Diversity through introduction of new products should be able to provide a gateway to handle these competitors. Competitive Advantage What gives the company a competitive advantage is its reputation. The company’s reputation cuts two ways, including: its loyal customers, competing partners, and its retailing partners. This elevates the company to a position where it can cut deals with an assurance of selling the product. Marketing mix decisions Product Apart from the Atlantic Quench’s already existing product, the company will be aiming to introduce a new product whose name would be, “Atlantic Tropical”. “Atlantic Tropical” will be made from cranberry, apples, passion fruit, and grapes. The juice will come is a package that will have images of the fruits that are used in making it. Promotion Just like the other products by Atlantic Quench, “Atlantic Tropical” will be advertised through television advertisements (Venugopal 2010, p. 202). The TV advertisements will focus on the nutritional values and taste of “Atlantic Tropical” to popularise it with the people of UK (Frith & Mueller 2010, p. 123). Price Atlantic Quench is popular for their highly competitive prices. Over the years that they have been operating in the UK market, they have always made sure that they remain competitive in times of their prices (Doole & Lowe 2008, p. 212). The same pricing strategy used for the other products will be used for “Atlantic Tropical” (Siro et al 2008, p. 466). This will help them in gaining market for the new product as fast as possible. Place The agreement with Gerber has been effective in production of Atlantic Quench products in the UK. It will only be rational for the “Atlantic Tropical” production to fall under the agreement with Gerber because it is something that is already certified (Zopounidis, Pardalos & Baourakis 2001, p. 212). “Atlantic Tropical” will also benefit from the deals that Atlantic Quench has already made by the top supermarkets in the UK. The framework for change model The key potential threats are technological advancements and high level of competition in the UK market. An opportunity that the company might consider exploiting is the thrive of innovation on the fruit juice industry that might enable introduction of a variety of products for customers with different preferences. However, Atlantic Quench will need to create a vision of change that will involve all the stakeholders and communication of these changes so that they can be of effect of the manner in which the organization will be operational during the implementation of the marketing plan. In order for the ultimate goals to be reached the organization will be required to have short term goals that will signify their progress towards the ultimate goals. The changes that will be effected by the plan need to be incorporated into the organization culture so that the management can make sure that there is no conflict between the two. Organisation and Implementation For the next one year Atlantic Quench might consider making sure that they try new ways of implementing their marketing strategies. Apart from the major supermarkets in the UK, Atlantic Quench should consider making deals with some of the leading chains of restaurants in the UK so that they can increase the accessibility of their products with much focus being given to “Atlantic Tropical” (Khanna, Palepu & Bullock 2010, p. 192). The implementation of the marketing strategy for the next one year should involve the public relations, marketing, and accounting departments. The public relations department will carry out studies on the market and know exactly which segments of the market are likely to be attracted to Atlantic Quench’s “Atlantic Tropical” (Faarup 2010, p. 210). This will be done in collaboration with the marketing department. The marketing department will then come up with a report on the most appropriate media for promoting the already existing products and the new product. The report will also include the resources that the company will have to use in order to effectively produce, promote, and position the new product (Gordon et al. 2006, p. 1134). The accounting department will review the report by the marketing department checking for its validity (Smilansky 2009, p. 178). The review by the accounting department will be concluded in a report that will be presented to the management. The management will use both reports in approving or disapproving the marketing plan. Development of the television adverts will be outsourced to the most appropriate marketing agencies (Ferrell & Hartline 2011, p. 217). The adverts will be aired on the most popular television channels in the UK. Control The purpose of Atlantic Quench’s marketing plan is to make sure that they can maintain and enhance their dominance in the UK market. One of the ways through which they can be able to do this is by introducing a new product (Slotegraaf & Dickson 2004, p. 371). The success of the marketing plan will be judged in terms of the sales volume of the new and already existing products, the company’s revenue, expenditure, and customer satisfaction (Baines, Fill & Page 2010, p. 287). These factors are all expected to contribute to the profitability and sustainability of Atlantic Quench. Bibliography Armstrong, G, Kotler, P, Harker, M & Brennan, R 2012, Marketing: an introduction. Ashurst, P &Hargitt, R 2009,Soft drink and fruit juice problems solved. Woodhead, Cambridge. Bailey, C 2011,The juice diet: lose weight, detox, tone up, stay slim & healthy,Duncan Baird Publishers, London. Baines, P & Fill, C 2014 Marketing. Baines, P, Fill, C & Page, K 2010,Marketing. Oxford University Press, Oxford. Baines, P, Fill, C & Page, K 2013,Essentials of marketing,Oxford University Press, Oxford. Baisya, RK 2010,Winning Strategies for Business,SAGE India, New Delhi.http://public.eblib.com/choice/publicfullrecord.aspx?p=592859. 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