Online Marketing Plan for the Next Year for Atlantic Quench - Report Example

Online Marketing Plan for the Next Year for Atlantic Quench Executive Summary This document considers market situations for Atlantic Quench with an aim to look at the ways in which the firm can take advantage of the market conditions. It is necessary for Atlantic Quench to expand its market by developing new products as well as taking advantage of growing foreign markets in Europe as well as china. It will also need to expand its promotions strategies to move from only using television and magazines and therefore use modern promotion strategies such as the social media. Atlantic Quench had annual sales of $1.7 billion in 2007, of which. Of this, Crantanas accounted for £150m. It has a UK market opportunity where the major market player, Gerber, sells over 800 million liters of fruit drinks every year. The firm has a sales growth of 7% per year for the last 4 years. It has also a market share gains in nearly every major sector where it operates. There has been a 26% increase in the sales of Crantanas, which is one of its non beverage products. The manufacturing capacity for Crantanas has increased four times over. Contents Executive Summary 2 Contents 3 Chapter 1 Introduction 5 Chapter 2 External analysis 5 2.1 Macro Environment Analysis 5 2.1.1 Political 5 2.1.2 Economic 6 2.1.3 Social 6 2.1.4 Technological 7 2.2 Market analysis 8 Market size 8 Growth 8 Forecast 8 2.3 Customer analysis 9 2.4 Competitor analysis 9 Chapter 3: Internal Analysis 10 3.1 Overall performance 10 3.2 Marketing mix 10 3.2.1 Product 10 3.2.2 Price 11 3.2.3 Place 11 3.2.4 Promotion 11 Chapter 4 SWOT analysis 11 4.1 Strengths 11 4.2 Weaknesses 12 4.3 Opportunities 12 4.4 Threats 12 Chapter 5 Objectives 13 5.1 Mission statement 13 5.2 SMART Objectives 13 Chapter 6 Marketing strategy 13 6.1 Strategic theories 13 6.2 Core target segments 14 6.3 Positioning 15 Chapter 7 Marketing programs 15 7.1 Product strategy 15 7.2 Pricing strategy 15 7.3 Place 16 7.4 Promotion 16 7.5 Marketing Communication strategy 17 Chapter 8 Marketing implementation and control 18 8.1 Schedule 18 8.2 Who is responsible? 18 8.3 Budget 19 8.4 Control 19 Chapter 1 Introduction Atlantic Quench is an American firm that is over 80 years old. It is a cooperative business where only members are the shareholders. The firm produces cranberries and manufactures different products. The many changes in the market have led to a need to develop a new market strategy so that it can exploit the new market. This is an analysis of the current market situation for Atlantic Quench as well as a proposition for future market strategy. With an annual sales of $1.7 in 2007 and a growth rate of 7% annually, Atlantic Quench has the best chances to expand its business. Atlantic Quench can choose to grow its business in US or in the UK market where the major market player, Gerber, sells over 800 million liters of fruit drinks every year. There has been a 26% increase in the sales of Crantanas which is one of its non beverage products. The manufacturing capacity for Crantanas has increased four times over. Chapter 2 External analysis 2.1 Macro Environment Analysis 2.1.1 Political The main political issues that face Atlantic Quench is the issue with the concerns of health. As it is becoming more evident that most juices and smoothies have too much sugar in them, it is becoming necessary, government has started to come up with regulations about how much sugar a drink can have (Nijs, 2014). This means that firms like Atlantic Quench have to look for better ways to serve the market with drinks with fewer calories (Falguera & Ibarz, 2015). This will have an impact on the firm n a number of ways. To begin with, it requires the firm to do even more research in order to come up with drinks hat are enjoyable but with lower levels of sugar. The increase in minimum national wage may also affect the firm as it will have to pay higher salaries. However, this is not a big issue because the firm is already doing well. 2.1.2 Economic Economic issues have to do with the income levels foe pole. In the western market where the firm sells, the household income has fallen even as inflation has increased (Food and Agriculture Organization of the United Nations, 2013). This translates into the fact that most people are not able to afford drinks that are too expensive (Burman, 2012). Smoothies and fresh fruit drinks are very expensive and this means that most people cannot afford, even if they want. The need for Atlantic Quench to serve healthy drinks at affordable prices that are affordable to a greater part of the market is going to require the firm to carry out more research and this will definitely come at a cost. Apart from the financial cost, there is the issue of risk. The changes in the market also means that those manufactures of juices and smoothies who will be able to perfect the science of producing enjoyable, low calorie and affordable drinks are the ones who will be able to retain the market. With regard to its expanding its market to UK, the firm will have to consider the declining GDP in UK. GDP is an indication of how well the economy is dong and therefore the declining UK GDP is an indication that the market may be having problems. 2.1.3 Social The social issues that come up with regard to Atlantic Quench is the fact that people are becoming more heath conscious as time goes on. This can work both for and against the firm. For instance, this new health consciousness is creating a new market for firms like Atlantic Quench that are in the business of producing juices and smoothies. However, it can work against the firm because it is dependent on the firm being able to produce these healthy drinks at prices that the market can afford (Harold, 2001). Unfortunately, producing these healthy drinks is more expensive both in terms of research an also in terms of actual manufacturing and this may mean that most people will not be able to afford the products (Burman, America in the Modern World: The Transcendence of United States Hegemony, 1991). 2.1.4 Technological As Watkins (1998) says, technology affects all businesses regardless of which sector they are in. For Atlantic Quench, the main issue with technology will be to make sure that it is able to keep up with technology. Failure to keep up with technology can lead to drastic consequences such as being pushed out of the market by competitors and even new entrants (Harvard Business Review, 2013). Technology in this case can either refer to information technology or it can refer to the required for manufacturing. With regard to information technology, it will be necessary for Atlantic Quench to make sure that it has the best information systems that will give it an advantage in the market. As May (2000) argues, information systems play a major role in modern business strategy and it is necessary to ensure that a firm such as Atlantic Quench has to acquire the best information systems. Acquiring information systems is difficult for a firm because the it is not only expensive financially but also because there are a number of issues that can lead to failure of such a process which can then lead to further financial losses as well as lost opportunity (Czerniawska & May, 2004). Production of juices and smoothies in mass production requires advanced technology. Unless the firm is able to acquire the best technology the competitors will be ahead of it and the firm can be pushed out of the market. 2.2 Market analysis Market size The market size for smoothies and fruit juices is large and it can be said to be almost as large as the market for carbonated drinks market (Fernandes, 2012). This market, while not as big as the market for the carbonated drinks, is still big enough to crate revenues that are able to keep a firm going (Committee on Food Marketing and the Diets of Children and Youth, 2006). Growth The market is growing at a very fast rate with growth rates of about 9% annually (Kapferer, 2012). This growth has been spawned by the fact that more and more people are becoming more heath conscious and are choosing to drink healthy beverages such as smoothies and fruit juices as well as balanced water as opposed to taking carbonated drinks such as soda. However, it is necessary to note that firms that manufacture the carbonated drinks are also responding by providing the market with carbonated drinks with fewer calories. Despite this, the market for carbonated drinks has continued to grow and is expected to continue growing even further in the future (Hitt, Ireland, & Hoskisson, 2010). The growth is growing in two dimensions. First, it is growing due to the fact that most people are switching from carbonated drinks to healthier beverages such as smoothies and fruit juices. Secondly, it is growing as the population continues to grow and increase. Forecast The forecast for this market growth is that it will continue to grow at a rate of about 9% per year. This is a good market forecast that promises business growth in this sector. 2.3 Customer analysis The customers for these products can be segmented into three major groups. The first group is made of children. Children make a unique part of the market because they do not have their own income and have to depend on their parents and guardians in order to buy the drinks. The second market segment is the middle-aged people. This market segment is the largest and the most important because they are also the support for the market created by children (Peng, 2008). The last part other market segment is the older people who are also concerned about their health and so are willing to buy these products even at a much higher price. 2.4 Competitor analysis Minute maid Minute maid is one of the main competitors for Atlantic Quench because it sells simalr products to those of Atlantic Quench. The firm has a range of products that target the average consumer. The pricing and the quality seem to match the needs. Minute Maid has a relatively large market share not only in USA but also in other countries. Minute Maid is also owned by Coca Cola Company and employs over 1900 workers. It operates in over twenty countries worldwide. Their sales for 1997 were $2 billion. The firm has a growth rate of at least 4% annually. The fact Minute Maid has a range of fully fruit juice products means that it is a big competition for Atlantic Quench. In 2008, its parent company coca-cola received an incentive of $2.4 million in order to move to Sugarland. These factors make the firm a formidable competitor for Atlantic Quench. Tropicana Tropicana is also another major competitor for Atlantic Quench. The firm also has a range of fresh fruit juices that also target the same market as Atlantic Quench targets. It also has a significant market share in the USA. With sales of over $2 billion dollars, the firm offers the strongest competition for Atlantic Quench. Tropicana is a subsidiary of the soft drinks company PepsiCo and it has been in operation since in 1947. It has experienced a growth rate of about 7% annually for the last 7 years. Like Atlantic Quench, it also specializes on pure fruit drinks and it has a range of products in this category. Chapter 3: Internal Analysis 3.1 Overall performance Atlantic Quench has been performing very well in the past. For instance, in the last four years, it has seen a consistent sales growth of 7% annually. This means a 28% increase over the last four years. It has also managed to continue gaining more market share for all its products. Its dried cranberries brand (Crantanas) has also increased by 26%. More importantly, Atlantic Quench has been able to increase its production capacity by over 400% in the last few years 3.2 Marketing mix 3.2.1 Product The firm has a range of fruit products to the market. These products go under two main categories. The first category is the fruit juices, which are made of at least four products. The other category is made of non-juice products, which include dried cranberries. This includes at least five products. 3.2.2 Price The prices have been set depending on the amount in every one packaging. The packaging for the products is to serve different kinds of output. For a long time, the firm had only large packaging, which meant that the only people who would buy the products were the people who were willing to buy in large quantities. However, of late, the firm has introduced new and smaller packaging to target the impulse buyers who may not be having the will to buy the larger packaging. 3.2.3 Place The products for the firm go the market through various channels. Large supermarkets play a major part of the retail for the products. The products also go to the market through the convenient stores. The products are also available through other means such as in kiosks and vendors. 3.2.4 Promotion The main promotion activities for the Atlantic Quench are television and magazines. The advertising concentrates on three aspects. It combines the health benefits of using cranberries, humor and also the American culture of cranberries. This makes it lighter for the firm to deliver its message and to create awareness of their products. Chapter 4 SWOT analysis 4.1 Strengths The main advantage of the firm is the fact that is has a long history. Having been in operation for over eighty years, it has a lot of experience as a firm and this means that it has a better chance of succeeding in the market. At the same time, this means that it has become a favorite to most people. It also has the advantage of the fact that it is a large firm. This makes it possible to serve its market in a big way, as opposed to new and upcoming firms. Although its being a corporative has also been a disadvantage, it is also an advantage in that it will be easier to deal with supplier issues and this is a major source of strength. According to Porter (1998), the power over suppliers is a major source of strategic advantage for any form. 4.2 Weaknesses A major source of weakness for Atlantic Quench is its management structure. Being a corporative has made it hard to be able to align with a few market issues. It is also evident that Atlantic Quench has been unable to respond to market needs and this has made it hard for it to take advantage of the emerging markets, which have come because of the new trends with the consumers. 4.3 Opportunities There many opportunities of which Atlantic Quench can take advantage. The market growth because of new customer trends towards healthy drinks is one such opportunity. There is also the opportunity that comes from the growing global market for fruit juices. These two opportunities can be very useful for the firm and it can use it for its future growth both in the short terms and in the long term. 4.4 Threats The main threat comes from new entrants in the market. With the new trends of consumers looking for healthy juice beverages, it has become easier for new businesses to get into the market and compete with established firms like Atlantic Quench. As Porter (1998) identified, the threat of new entrants is due to the ease with which new firms can enter into a sector and compete with the business. Chapter 5 Objectives 5.1 Mission statement The mission for Atlantic Quench is to be the biggest player in the market and to provide healthy products to its customers at an affordable price. 5.2 SMART Objectives To be able to develop healthier product that are in line with the demands of the market at an affordable price Its main goal is to increase its market visibility in the United States and abroad (UK and Asia). This will come through taking its products to the other markets in order to take advantage of the foreign markets. It is obvious there is a market boom for such products in UK and Asia To develop a campaign that will drive the firms into new markets and have ways to access these markets. This will be by analyzing the market and coming up with ways in which the market can be best accessed. To ensure that the products that Atlantic Quench sells conform to the latest health requirements by the government. This is important in ensuring that the firm will not have issues with government regulations. Of late, the government in USA and other jurisdictions has started intervening with regard to drinks with too much calories in them (Burman, America in the Modern World: The Transcendence of United States Hegemony, 2012). The firm must considere this in order for Atlantic Quench to continue accessing the market effectively. Chapter 6 Marketing strategy 6.1 Strategic theories Bowman’s Strategy Clock According to this strategy theory, having high value and low cost ensures that a firm will have a market share that cannot be easily taken away from the firm (Harvard Business Review, 2013). As a result, Atlantic Quench should seek to have this marketing strategy as its central paradigm to access the market. This is in line with the analysis above. For instance, with regard to analyzing the customer, it became very clear that the customer wants products that are of high quality (high value) and of low prices. There are other alternatives found in the strategy clock as developed by Bowman such as giving low value at high price but this will mean that the firm can get out of the market very easily if another firm is able to provide high value at low cost (Bjerre, 2008). This kind of strategy would only suit a firm that has a clear monopoly in the market and Atlantic Quench definitely does not have a monopoly. Ansoff Matrix This matrix shows how a firm like Atlantic Quench should approach market growth. This will be important for Atlantic Quench because it needs to both penetrate the local market with existing products while at the same time diversifying into foreign markets by developing products that suit these new markets. 6.2 Core target segments The core target segment will be middle-aged people. These people have various benefits of which Atlantic Quench should seek to take advantage. To begin with, they are in their prime age, which also means that they are earning and can afford the products (Hoskisson, 2012). These people are also very conscious about their health unlike the very young and the very old. As a result, the target will be people of ages between 25 and 40. 6.3 Positioning Atlantic Quench should position itself as the market leader and one that provides its market with high quality product at affordable prices. The firm will need to create trust in the market because there are many firms that promise the customers one thing and delver something different. For instance, with regard to organic foods, many brands in the market claim to be organic even though they are not actually organic. This crates distrust among the consumers. Atlantic Quench should avoid this situation and should position itself as a firm that anyone can trust (Hougaard, 2003). Chapter 7 Marketing programs 7.1 Product strategy It will be necessary for Atlantic Quench to change their product strategy to be able to take advantage of the new market trends. This will mean that that he firm will need to do away with some of the products and introduce new ones. This will help the firm to be able to match the new market needs and still to prevent a situation where its products are not on line with government regulations. To reduce on the logistics costs, Atlantic Quench will need to have a production strategy that will reduce the logistics costs. For instance, instead of producing in US and shipping to UK, the firm will have its manufacturing plant in UL so that it produces its products near the market. 7.2 Pricing strategy Atlantic Quench should seek to have the best prices for its products. It must seek to combine the highest quality for its products and at the same time offer the lowest prices possible. Because the main aim for Atlantic Quench is to expand its market share, this would be a important because it ensures that he firm is able to gain new market and to also retain this new market share. Atlantic Quench will have to use price adaptation sot hath each market in order to get the best from each market. This will be necessary because each market has its restraints that can determine which price can be useful for which purpose. 7.3 Place With regard to place, Atlantic Quench is doing good. However, it may need to introduce other ways to increase the accessibility of the products. Depending only on large retailers to distribute the product may not be the best way to access a market that is full of competition. Atlantic Quench can start utilizing smaller vendors and to try to look for other channels to reach the end consumers. It can take the coca cola model where the firm depends on both large retailers such as stores and having their own small outlets to make sure that their beverages are accessible to anyone who needs them at any given time. This will help in increasing the visibility of the brand and thus help in not only increasing market share but also the availability of the products to the consumers. 7.4 Promotion As has been identified, Atlantic Quench depends mainly on magazines and television as its main promotion strategy. While these two traditional media are important for promotion, Atlantic Quench will have to look for better ways to promote its products. The social media is an important way to do promotion for its products. The main advantage of using social media for promotion is that it offers a way for the firm to get direct feedback from the customers, both existing and potential. Other channels that are important for modern marketing will also be in the promotion mix. For instance, Atlantic Quench will use product placement in order to gain more market visibility. This can be in a movie or TV show and will help in increasing the visibility of the Atlantic Quench products. Atlantic Quench will also use public relations as a way to improve its image and market advantage. This will be by way of making sure that the firm has a fully-fledged public relations department and by working with public relations firms in order to achieve the best results in its relations with the market. Atlantic Quench will also benefit from sales promotions processes and this will be done on a bimonthly basis and will include having sales and discounts for the products. 7.5 Marketing Communication strategy The communication strategy will help in maintaining a good relationship with the market. The message will be that the products offered by Atlantic Quench are healthy and that they are organic drinks. It will be important to have the assurance that in communicating with the market, Atlantic Quench has to differentiate its business from the rest of the competitors who seem to promise one thing and deliver a completely different product to the market. Content marketing will be very useful for Atlantic Quench in that it will help the firm to reach t the market and communicate the features as well as the benefits of the product. This content marketing will be in three major forms, which will include online video, online articles and online podcasts. These three modes of content marketing are becoming very useful in the modern marketing world and it will be for the benefit of Atlantic Quench to take advantage of them. To ensure that this content will reach as many people as possible, mobile platform will be in the centre of the strategy, which will mean that the people can access the materials on their mobile. This will mean that Atlantic Quench will have to hire someone to develop mobile apps for the various platforms such as Android, iPhone and Microsoft. Chapter 8 Marketing implementation and control 8.1 Schedule The marketing campaign will be in batches. The first batch will be from June 2015. This will involve having an online marketing campaign, which will target people of ages between 25 and 40. The second part will be from August and will be towards the same market segment. Activity Duration in months Precedes Is preceded by Market analysis 1.5 Developing market strategy Non Developing market strategy 1.5 Advertising strategy development Market analysis Advertising strategy development 1.0 Launch of marketing campaign Developing market strategy Launch of marketing campaign 1.2 After market analysis Advertising strategy development After market analysis 2.0 Success/ failure report Launch of marketing campaign Success/ failure report 1.0 None After market analysis 8.2 Who is responsible? Marketing managers will be involved in the process in order to make sure that they contribute to the marketing strategy. Each department will contribute towards this by bring in ideas about the way they want their product line to be promoted. 8.3 Budget The budget will be $1,000,0000 which will be spend in batches. The first marketing pan will use half the budget and the remaining will be for the remaining part. Item Cost Type Source Face book marketing 500,000 Recurrent Finance Twitter marketing 500,000 Recurrent Finance Google advertisements 500,000 Recurrent Finance Salaries 400,000 Recurrent Finance Rebranding 200,000 Recurrent Finance 8.4 Control To be able to know if the marketing is working, managers can monitor various statistics for the marketing campaign. First, the fact that the social media will be the one used for this campaign will provide the advantage that the statistics are easy to manage. Most social media advertising platforms such s Google and facebook.com provide analytics that can help the firm to know how the campaign is doing. This will help in making sure that any changes that the managers what to make will be possible. Reference list: Bjerre, M. (2008). Brand Management: Research, Theory and Practice. Londion, UK: Routledge. Burman, S. (1991). America in the Modern World: The Transcendence of United States Hegemony. New York, NY: Palgrave Macmillan. Burman, S. 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