Sales Plan for Atlantic Quench Cranberries - Case Study Example

Unit: MARKETING PLAN FOR ATLANTIC QUENCH CRANBERRIES Table of Contents Table of Contents 2 0 EXECUTIVE SUMMARY 5 3.0 ENVIRONMENT ANALYSIS 6 1.0 EXECUTIVE SUMMARY A one-year marketing plan for Atlantic Quenchers Cranberries is for coming up with policies for market improvement. It also aims at having the employees aware of the recent status of the Co-operative and the direction it is approaching. Having been formed 80 years ago, the Co-operative has been has been experiencing increasing demand of its products. The research carried has exhibited that consumers would prefer to buy more of juice drinks which they believe to be healthy as compared to other snacks. The Co-operative is also interested in adopting new technology and improving in the marketing of the products to keep away competitors. The marketing environment has welcomed the Co-operative’s products well with the consumers moving their preferences to the healthier low caloric juices of various flavors. Coming next year, Atlantic Quencher can increase the products distribution and come up with new products in the market and attract new customers. An evaluation of the strengths and weaknesses within the Cooperative together with the peripheral opportunities and strengths formed the foundation for this tactical analysis and marketing planning. The plan concentrates on the Cooperative’s development strategies coming up with methods in which it can improve on the existing relationship with the customers and new products and services development directed towards particular customer niches. 2.0 COMPANY DESCRIPTION Atlantic Quench Cranberries was formed 80 years ago through the combination of three cranberry growers from New Jersey and Massachusetts. The co-operative was joined by Florida grapefruit growers coming 1974. The cooperative is a United States based and is owned by about 630 and 40 cranberry and grapefruit farmers respectively. The cooperative has formed the largest producer of canned and bottled juice and the bestseller of fruit juices. Its success has also been realized in the UK. It is also involved in the sales of cranberries that are dried known as Crantanas. The products sold can be classified as juice or non-juice. The launch of Cranberry Classic was in 2002 in a 250ml can as an intention to impulse buyers. There was an increase in the level of ‘light’ juice drinks of low caloric which constitutes cranberry and blackcurrant or mango. There was the launch of a white cranberry juice drink in 2004 and launch of best chilled juice drink in September 2004. The introduction of mandarin and cranberry in the market was in 2005. 3.0 ENVIRONMENT ANALYSIS Founded as a fruit juice production organization, the Cooperative has been involved in the production of wide variety of fruit juices attracting various consumers in the market. A new product development such as Crantanas has improved on the organizations marketing which has attracted many customers. In 2013, there had been a licensing agreement signed with Gerber to produce, distribute and market the juice drinks under the brand of Atlantic Quench in the UK. 3.1 The Marketing Environment and Trends 3.1.1 Lifestyle Trends Fruit juice has been at high demand in the UK market. Consumers have come to realize the health benefits got from the fruit drinks and this has increased the consumption of the juices. The juice sector has therefore moved to occupy greater share in the market as compared to the carbonated drinks which is losing popularity and forming a bad image on the consumers. 3.1.2 Impulse Buying The organization has come up with strategies that put it at a better place in responding to high demand in the market for expediency drinks. During shopping, at impulse buying customers prefer to consume fruit juices which they consider to be healthier as compared to confectionery. The juice drinks have also form popularity in sports due to the upcoming criticisms on sports and energy drinks giving room to consumption of more fruit juices. 3.1.3 Non-retail Sales There has been an estimation of about 76% enjoyment received by the non retail sales between 2001 and 2006. This has been due to the focus on healthy eating and consumer behavior trends. The consumers change in taste in the favor of fruit juices have the restaurants and catering sectors taking increased shares of taste as the producers are benefiting. The organization has therefore produced juices of variety tastes giving the consumer a wide variety to choose. 3.1.5 Convenience Snacking Travelers have been involved in fast food snacking throughout their journey. However, in the snacking they look into their health hence considering the nutritional value of what the take as a snack. The snackers therefore target fruit drinks and juice as they constitute both hydration and health factors. This has therefore created a wide market to Atlantic Quench manufacturers. 3.2 Market Overview Considering the general progress in the market the organization has experienced instances of ups and downs in the market sector. Non retail sales have achieved about 76% between 2001 and 2006. There had been more than 7% sales growth annually for the past four years. There had been 26% Crantanas consumption increase. The German market had achieved 8.82 billion Euros in 2005, which is 16% more as compared to in 2000. The market has therefore shown about 10% growth within 2000 and 2005. Figure 1: Market Share in 2005 Looking at the market share in terms of percentages of the drinks the superfine juice had 20%, Cranberry juice 26%, Carbonated drinks 46% and others which involves the energy drinks 8% of the market ( Araújo & Gava, 2011). 3.2.1 Competitor Analysis Coming of new suppliers in the market and competitive market for the production of juice has made it difficult for the organization to launch new products due to its expensive nature. There has been a low performance of the juice market in European and the neighboring countries, Germany and France. These countries have experienced slower growth rate between 2000 and 2005. According to Mintel, there has been a high increase in the growth of vegetable juice in the however it still accounts for 2.7% of entire juice and nectar sector. Mintel points out low-carbonated diet popularity making consumers in the US who are much concerned with their weigh avoiding consumption of fruit juices that they believe to have high sugar levels. These consumers move to consumption of low-caloric soft drinks or bottled water. Juice manufacturing companies in the US have also moved in the boosting of the constituents of juice drinks like addition of stanol esters for the health of the heart. The developing consumer’s interest towards superficial fruits has led to the introduction of various super fruits occupying about 29% of the fruit juice market. The competitors having being aware of the health benefits of these fruits have made them come into the beverage market. This has affected the brand loyalty of the cranberry juice products negatively. 3.2.2 Consumer Analysis Looking at the market projections, there are no evidences yet to show the decline in the convenience products for health drinks. Consumers are in need of products that are natural and add value to the health. This is of advantage to Atlantic Quest who targets consumers who search for high sugar content alternatives which is usually derived from fruits. Where the market is immature there is the consumption of drinks with pressed fresh juices. The trend of the health of the consumer still expands the market to the organization. The campaign by the health organizations on the fruit and vegetables consumption opens market for juice sale. There has been a growing consumer’s interest on superficial fruits. The organization production of the low caloric juice Crantanas which is of preference to most consumers has widened the market for the organization. The organization is towards the development of strategies that are consumer-oriented. Market positioning is therefore important to the organization. The organization will move to find out what consumers say about the current products in the market. These factors will then be compared to the competitors’ products and improvement done on the organizations products (Luther, 2001). 3.3 PEST 3.3.1 Political forces This depends on the government forces, political stability and legislation. The guidelines introduced by the Food and Drug Administration would also demand for packaging changes for all juice produced in the market. The expansion of market will therefore need a thorough analysis of the political factors including tax policies, laws of employment, political stability, anti-trust laws and pricing regulations (Auster et al. 2005). This can be adopted by Atlantic Quench Company. 3.3.2 Economic forces Many companies have reduced their budgets they spend on their promotions in the times of need to cut down expenses. Many companies therefore decide to divert huge percentage of their budget to promotions of sales and specialty advertisement (Applegate & Johnsen, 2007). Specialty advertisement can be carried out by Atlantic Quench-based calendar. 3.3.3 Social forces In the modern society consumers are involved in a lot of travelling band have less time for eating. They therefore involves in the consumption of snacks. However, they always prefer snacks good to their health this has promoted consumption of fruit juices a major product of Atlantic Quench. 3.3.4 Technological forces The technology is advancing with new production methods coming in. the companies are always adjusting to these technologies to maximize their production to achieve high level of competition. Atlantic Quench is on the move of utilizing any new technology. 4.0 INTERNAL ANALYSIS 4.1 Organization Various problems have been faced in the organization of Atlantic Quencher. There had been some instances of reduction in the prices of barrels leading to impeachment of several CEOs. There organization is therefore towards maintaining of annual meeting to consider farmers view as did by the 2003 CEO, Berrie. This is towards maintenance of highest supply of cranberries by the farmers. The consideration of farmers’ views has increased the organization’s profitability. 4.2 Pricing distribution The way in which prices are being distributed is crucial in the achievement of the organizations goals. Reduction in the price of the farmers earning per barrel from$18 to $12 are the first causes of commotions in the management. The organization is therefore to maintain fair prices to both the consumers and farmers. 4.3 Mix product range The organization has involved in the production of variety of products. New products are still brought into the market to fulfill the growing consumers’ needs. The products of both juice and non juice products are towards satisfaction of consumer preferences. The organization is towards carrying out more research to come up with more related products to the consumers. 4.4Finance Operation How the cash flow is being handled and spent in the organization is important for the achievement of the goals of the organization. Fall of price of barrels experienced was due to misappropriate use of finance and this affected the organizations profits. The organization plans to maintain annual auditions of its financial departments to allow for ease in monitoring finance use. 4.5 Efficiency Efficiency is an important aspect in the operation of the organization. To achieve highest production the farmer’s efficiency would be improved by provision of inputs within the cooperatives branches to be used by the farmers to make the cultivation of fruits easier. The farmers should also be accessible to experts giving the ideas of handling the fruits. 4.6 Communication system To enhance communication system the organization plans to form many branches accessible to at least all farmers. This will have the complaints of farmers reaching the top authorities at the right time. Retail shops will also be expanded to bring in information concerning consumers. The communication system within the organization is also to be reorganized to prevent any upcoming strike of the workers. 4.7 Human Resource The management of the organization is vital. This is important in the monitoring the levels of corruptions in the organization. Vetting of the previous managers is therefore important to remain with the ones who are serious with their management jobs. High level of management should also be achieved unto the farmers and consumers level. 5.0 SITUATION ANALYSIS The Atlantic Quench marketing environment represents devastating opportunities. It also has various challenges that the organization believes it can convene with success. Analysis of the organization’s situation involves looking at the strengths, weaknesses, opportunities and threats of the organization. The SWOT analysis shows a thumbnail sketch of the position of the organization in the market setting. Having formed 20 years ago, the Atlantic Quench Cooperative has formed some strengths that are impressive while looking forward for more opportunities. Its founders that are more dedicated and the increasing number of loyal consumers and good financial management puts the company in better positions for growth. However, Atlantic Quench considers expansion of its market and formation of new markets. As the organization puts plans for new products and expanded sales, the management the competitors trying to interfere with the products. Still, building a positive relationship with suppliers, consumers and retailers should assist frustrate the competitors (Groucutt, Forsyth & Leadley, 2004)? Figure 2: SWOT Diagram Constraints Vulnerabilities Constraints LEVERAGE PROBLEMS 6.0 OBJECTIVES 6.1 Mission Statement The Atlantic Quencher mission is to become a leading producer and distributor of fruit juice globally. The organization wants to inspire people to improve on their lifestyle health wise by consumption of more fruits drinks. 6.2 Major Objectives Obtain financing for expansion of manufacturing and distribution of two new product line. Come up with programs in provision of input subsidies to its farmers. 6.3 Market/Product Objectives Explore new geographic markets for its old new and products. To maintain and improve on the quality of the product to achieve an international market competition. 6.4 Group Objectives To achieve a high level of competence and hard work and promotes an organizations good image up to international level. 7.0 STRATEGIES 7.1 Market penetration Coming next year, the business plans to achieve certain levels of growth. The organization plans to increase the existing products sales and further penetration of the market by heavy product promotion or price reduction to increase sales. This strategy is believed to have to have low risk as the firm has adequate knowledge concerning the consumers and the market. The organization has therefore moved on in the partnership with larges supermarkets which is a way of achieving market penetration. 7.2 Product development The introduction of the new product into the market is a step towards the achievement of the customers needs. The organization has launched variety of new products but is still towards innovation of more new products. This strategy is a medium risk one as the organization is recognizable with the market and not the new product. 7.3 Market development The organization has moved in the sales of the existing products to the new market. The formation of partnership with huge firms such as Gerber to market and distribute the products is towards the organizations market to achieve a high international level. 7.4 Diversification The organization is towards trying new products to new markets. The selling of variety of products by the organization is towards the limiting of risks of the climatic changes. However, this is a high risk strategy as the organization is unaware of both the market band the product. 8.0 Target Market The target consumers of the Atlantic Quench products are a population between 15-25 years in age. The market once benefited from the growth by almost 10% from this group in 2000-2005. There had been a 3.2% slow growth between 2005 and 2010. Children drinks have shown to be an important growth within the juice drinks market and therefore the organization has target to increase the supply of drinks for the children. However, looking at the trend, the target of the juice drinks is wide. This can be connected to the health benefits of the drinks to the consumers. This growing awareness also creates more market to the fruit drinks. This therefore requires an increased production in the organization coming next year. 9.0 THE MARKETING PROGRAMMES 9.1 Product Strategy Atlantic Quench Cooperative offers a variety of products to its consumers. It offers both juice products and non-juice products hence forming a wide range of products for a consumer to choose from in preference of texture or flavor. The development of the new product like the Crantanas has been an additional factor to the success of the organization. The organization is therefore towards the targeting of the consumers requirements developing new products each and every time. It has been involved in the launching of new product each and every year. The strategy is placed under diversification strategy. The cooperative is trying to come up with new products in the market to meet the consumers’ needs. Figure 3: Ansoff Matrix (Pringle & Field, 2008). EXISTING PRODUCTS NEW PRODUCTS EXISTING MARKET NEW MARKET 9.2 Distribution strategy Atlantic Quench is towards achieving of international market. It has been involved in the partnership of various large organizations and companies to promote the distribution and marketing of its products. The long-term strategy with Coca-Cola and the licensing agreement with Gerber are all towards expansion of their products distribution. 9.3 Promotional strategy There has been various ways through which the organization is communicating with its consumers. The organization has been involved in the carrying out of advertising campaign with humor. The campaigns have been used in the television and magazines with the aim of informing the consumers on the benefits of cranberries. The campaign has improved on the sales of the products, with Quench reporting a 6% increase of Cranberry Juice drinks in a year. 9.4 Pricing strategy The pricing of the products is done in consideration of the competitors in mind. Consumer’s behavior towards the purchase of products is usually dependant on the products’ price. An increase in taxation will make the prices of the products to rise. The organization is therefore towards the use of technology that requires low production cost so as to cater for the increased tax to control the pricing of the products. Products are packaged in variety of quantities to provide a wide range of pricing (Bowman & Gatignon, 2010). 10.0 IMPLEMENTATION 10.1 Marketing Organization The current and future products of Atlantic Quench need customization that is extensive to match the needs of the consumer. The marketing function should therefore be organized by customer groups. There is therefore the need of the organization to be focused on the target consumers specification and needs. Atlantic Quench will therefore be organized within the various customer groups; Manufacturing groups, consumer product group for licensing, industry association groups. Each group will be monitored by sales manager who will give information to the marketing director. The changes will promote flexibility and creativity of the organization in meeting the needs of the consumers. This marketing organization will also allow for the monitoring of the activities of the competitors (Armstrong, Harris, Kotler & Piercy, 2013). 10.2 Activities, Responsibilities and completion timetable All the implementation activities are supposed to take place in the coming year, with all activities being under the supervision of the current managers. On January 1, assign research team to carryout research in the market to find out what the consumers thinks about the products and what they think the organization should do. They should also find out what the other companies are doing. By May 1, the organization will develop an information system of marketing to monitor the recording pattern of the customers and satisfaction. By July 1, Implementation of the changes in the market as recommended by the research team to fulfill the consumers needs. By September 1, development of a plan of one new product line giving along with the potential consumer’s analysis. These responsibilities will be taken by the business analysis team. References: Top of Form Araújo, L., & Gava, R. (2011). Proactive companies how to anticipate market changes. Basingstoke, Palgrave Macmillan. http://public.eblib.com/choice/publicfullrecord.aspx?p=868360. Bottom of Form Armstrong, G., Harris, L. C., Kotler, P., & Piercy, N. (2013). Principles of Marketing. 6th European edition. Harlow: Pearson Education.Top of Form Applegate, E., & Johnsen, A. (2007). Cases in advertising and marketing management: real situations for tomorrows managers. Lanham, Rowman & Littlefield. Page 28. Top of Form Auster, E., Wylie, K., & Valente, M. (2005). Strategic Organizational Change. Basingstoke: Palgrave Macmillan. Page 22. Bottom of Form Bottom of Form Top of Form Bottom of Form Top of Form Bowman, D., & Gatignon, H. (2010). Market response and marketing mix models: trends and research opportunities. Boston, now. Page 59. Top of Form Groucutt, J., Forsyth, P., & Leadley, P. (2004). Marketing: essential principles, new realities. London [u.a.], Kogan Page. Bottom of Form Bottom of Form Top of Form Luther, W. M. (2001). The marketing plan how to prepare and implement it. New York, AMACOM. http://site.ebrary.com/id/10120161. Page 117. Bottom of Form Top of Form profitability. Boston, Butterworth-Heinemann. Top of Form Pringle, H., & Field, P. (2008). Brand immortality how brands can live long and prosper. London, Kogan Page. http://www.books24x7.com/marc.asp?bookid=31016. Bottom of Form Bottom of Form Read More