Introduction to Principles Of Marketing Management
Marketing is the practice which is required by the businesses for the purpose of promoting products and services in different customer segments. In the present case, different tools, techniques, concepts and marketing strategies are discussed that probably aids business to survive in the competitive market place for longer time period (Wise and Sirohi, 2005). The subsequent research report has been made on marketing aspects of Atlantic Quench Cranberries which is an agricultural co-operative based in US market. The co-operative is justifiably credited with pioneering and developing the cranberry segment. Thus, the brand has become North America's leading producer of canned and bottled juice and as a result, it enjoys great success all around US market places.
The business has also enjoyed great success in UK as it serves appropriate quality of fruit juices to the customers. Furthermore, the study has discussed next year marketing plan for Atlantic Quench Cranberries through which the brand will be able maximize its identity in varied market places of US and UK (Schmitt, 2011). Apparently, there are some shortfalls in business growth and prosperity; however despite that, the market for canned juice is getting attention from range of customers. As per the case analysis, there is a close working relationship between the farmers and the organization as Atlantic Quench Cranberries purchases all the crops that the farmers grow at the highest possible price. However, the organization is experiencing issues due to changes in climatic conditions.
This also generates problems for farmers and as a result, the relationship between the management and the farmers is deteriorated. Hence, for such purpose the CEO decided to conduct the operations in different manner so as to retain the acquired market share (Mortimer, 2008). The organization then decided to emphasize on new product development strategy by collaborating with other brands. In the year 2013, Atlantic Quench signed a licensing agreement with Gerber to manufacture and distribute market juices as well as juice drinks so as to increase the overall ratio of sales and revenue. Atlantic Quench's creativity in new product development has been a contributory factor to organization's success as that encourages the business to add more products in the existing product line.
Produce An Outline Marketing Plan For The Next Year For Atlantic Quench
Analyzing market environment
While developing the business, it is crucial for the business to analyze market environment so that, products and services can be promoted effectively among different market segments. As per the case study, it can be said that Atlantic Quench wishes to operate its business at market place with same products (fruit juices and fruit drinks); therefore it is vital for the business to collaborate with successful brand so, business can survive in the competitive market place for longer period (Liang and Cherian, 2010). Thus, the business is suggested to expand the brand in Britain where people consume fruit juice and canned drinks on higher amount on regular basis. The business needs to conduct situational analysis so that, current market conditions can be identified. For such purpose, market orientation program can be conducted where market trends and growth opportunities for Atlantic Quench Cranberries can be ascertained. Prior executing any plan into action, the business needs to emphasize on marketing planning so that, each and every activity related to production and distribution of goods and services can be managed properly (Layton, 2011).
Political factors: Political factors may aid Atlantic Quench to manage business conditions in an effectual manner since the business has already entered into UK. Entry and exist procedure in beverage industry of UK is not fierce; hence this could assist the business to conduct operations in a successful manner (Kotler and Keller, 2011). The research report of Mintel states that, the strong interest in health has contributed to the above average growth and as a result, demand has been increasing continuously.
Competitive markets: From the market analysis, it is evident that competition is increasing in beverage industry which also leads the business to emphasize more on advertisement and promotional aspects. The fruit sector is heavily dominated by supermarket's own brands which provide healthy and fresh drinks to the customers (Kim, Forsythe and Moon, 2002). In European markets, the percentage of sales of fruit juices is increasing due to concern towards on health facets.
Social – cultural factors: In UK, people consume healthy drinks more in different courses for varied purposes. Since the organization is providing better beverages; therefore it should emphasize on needs and preferences of the customers. All the customers prefer to have canned juices from the age of 15 (Kemmer and Boden, 2012). Even in the same segment, children also intake such drinks with snacks. Hence, usage of fruit and vegetable juice is slightly above average among these consumers. Consumers have been seeking natural and healthy options; thus Atlantic Quench provides an opportunity to target customers.
Profitability and future growth potential: As per the commitments of CEO of Atlantic Quench, the brand will acquire huge profitability because consumer prefers to have juices. Currently Atlantic Quench has enjoyed strong annual growth as sales ratio of the company has been growing more than 7% in the year. Market share of the organization is also growing nearly in every competitive sector. 26% of customers have increased the amount of canned juice consumption (Karandikar and Nidamarthi, 2007). Soft drinks and fruit juices are an essential product and the sector is experiencing major growth; hence market analysts believe that, this trend is set to continue for longer period. They also believe that, there is no possibility of any future decline in the demand of health drink products, especially if the product is integrated with health credentials.
Evaluate marketing strategies and concepts
The concept of new product development can be adopted in the business as Atlantic should encourage supermarket in the US to add juice aisles by contributing more in juice boxes and cranberry drinks. In order to derive long term growth and success, it is crucial for Atlantic Quench to make several changes in pricing, distribution, sales, and promotion aspects as per customer convenience (Illia and Balmer, 2012). At the same time, it is also important for the organization to emphasize on all the elements of marketing mix accordingly; sales and revenue ratio can be encouraged.
Product: The major product of Atlantic Quench is cranberry juices and drinks; however additional products (drinks) can also be added to the product line such as fresh juices, pressed smoothies with yoghurt and ice cream. This can also assist Atlantic Quench to extent the product line and as a result, range of customers can be persuaded towards canned juices (Fifield, 2012).
Price: Atlantic Quench offers affordable priced products to the customers because the organization has not determined single segment of customer. Price plays crucial role in managing customer interest in the brand; hence the brand is suggested to offer affordable prices since the business is also concerned about children and other customers. Therefore, price penetration strategy could be adopted wherein juices can be provided at lower prices in the initial phase and after acquiring limited market share, prices can be gradually increased (Doole and Lowe, 2008).
Place: To deliver canned juices and drinks, it is vital for the business to deliver goods as per the customer segments. For instance – juices can be made available at supermarkets so that, all the customers can purchase goods as per the need. With the help of suitable place, customer satisfaction can be derived. It is important for the business to emphasize on customer convenience so that, market share can be acquired (Cant and Strydom, 2009).
Promotion: The appropriate method that could be taken into account for promoting cranberry juice and drinks is advertisements and sales promotion. In order to convince people towards cranberry juice, advertising campaigns would be the best option for the business. From last many years, the business is involved into advertisements which also helped in bolstering sales of product across all of its business divisions. Television advertisements within the UK have included a campaign to promote the launch of the white cranberry drink (Berman, Evans and Mathur, 2010). Other advertisements are also developed at the same time in which the business has promoted the benefits of healthy drinks to women and children both. Apart from these strategies, Atlantic Quench can adopt sales promotion technique whereby it could provide additional benefits to the customers in the form of discounts and schemes.
Need to focus on customer attitude, market growth and trends
Apparently, all the business emphasizes on customer needs and demands while establishing its business in the different market place. At the same time, Atlantic Quench is also required to focus on needs, attitudes and preferences of customers and according to that, specific products can be promoted at the market place (Marketing strategy, 2009). From the entire market survey, it has been analyzed that Atlantic Quench is considering health credentials which further aids the brand to acquire attention of maximum number of customers. In US and UK, people are getting more conscious about their health and as a result, they prefer to get healthy drinks for different purposes. Also, market growth opportunities are high for cranberry juices; therefore certain changes could assist the business to maximize the potential at higher extent. In contemporary scenario, it has been seen that people are consuming healthy products and services; thus this concern of customers would be profitable for Atlantic Quench as the brand is extremely emphasized towards healthy and nutritional drinks and juices (Benson and Barclay, 1990).
In UK, students also prefer to have healthy and nutritional drinks as they do not get much time to spend money and resources for meals. Thus they prefer to have snacks against regular meals and along with snacks, they prefer juice and canned drinks. Hence all such aspects could assist the company to manage its position in external market share by meeting the needs and demands of customers (Wise and Sirohi, 2005). Usage of fruit and vegetable juice is slightly above among the consumers; therefore the successful targeting of this expanding cohort could eventually lead to greater consumption among older customers. There are varied purposes for which consumers prefer to have healthy drinks, so Atlantic Quench can consider all such facets into account for maintaining the flow of profitability. The business critically believes that consumer health will continue to drive future trends which could also help Atlantic Quench to deliver prominent services to the customers (Schmitt, 2011). The issue of obesity is increasing in Europe and to overcome the subsequent problem, cold drinks blended with fruits and canned juices can be provided to the customers.
From many research studies, it has been seen that consumers are seeking natural and healthy options for remaining healthy and physically fit. Drinks made from milk and fruits are often preferred by consumers in different occasions; therefore Atlantic Quench can add varied drinks in the product line for further profitability (Liang and Cherian, 2010). As per the analysis of Mintal report, the population of 15-24 year olds in the UK are the heaviest consumers of juice and canned drinks. This enhances the market share of beverage companies and gives them the opportunity to produce more products and services at market place. Children's drinks are also an important area of growth within the juice and juice drink market. Thus, in order to conduct the business in European market place, it is crucial for the business to make certain changes in segmentation, targeting and positioning strategies (Kemmer and Boden, 2012). Likewise, customers between the age of 10 to 35 can be selected for the products as they can also get information about the health aspects associated with such drinks. Such age group consumes more healthy drinks; therefore they should be selected for cranberry and other healthy juices. Selection of specified target group could assist the company to maximize the ratio of sales along with business productivity (Karandikar and Nidamarthi, 2007).
Suitable segmentation and positioning
On the basis of demographic criteria, the process of segmentation can be conducted and specific customer segment who have the ability to pay for all types of juices should be selected. As students are not provided much resources for spending on such activities, therefore prices should be kept minimum as per their purchasing power (Benson and Barclay, 1990). Furthermore, in order to position the products at market places, Atlantic Quench can emphasize on product packaging which is yet another enticing elements for appealing customers towards the services. Innovative approaches to packaging have already been adopted by Atlantic Quench to stimulate interest of customers and also to increase the appeal of Atlantic Quench's product range. Products and services of Atlantic Quench have been packaged in cans, cartoons and plastic bottles so that they can be recycled for another purposes (Cant and Strydom, 2009). Information related to the product is being mentioned at the package which aids customers to get idea about the quality and usage of drinks.
Recently, the business has developed slimline canned so that the amount of juices can be retained. This is also beneficial in terms of protecting the drink from spoilage and wastage. Although, proper emphasis is being given on transportation of goods and services; however then also due to several facets, the products sometimes get deteriorated (Product Positioning Process - Steps in Product Positioning, 2013). The business tries to meet the needs and demands of customers by placing the products right at respective places. There are various customers who do not prefer healthy juices as they desire to consume other drinks as per the preferences. Sports men and women both look for a quick healthy option to restore fluids and energy following exercises and thus for such purpose, they consume canned and other juices twice in a day. From the following discussion, positive and negative aspects of the products can be explored, so practical changes could be made in the existing plans and procedures for growth and success (Illia and Balmer, 2012).
Focus on customer's requirements is vital for the business as that assists in identifying changing aspects in habits and preferences of end users. Apart from this, Atlantic Quench needs to put more efforts on developing long term and effective relationships with the customers so that they can be retained (Layton, 2011). From many case studies, it has been observed that businesses generally provide discounts and schemes to the customers for promoting it on wider extent. At the same time, the process of marketing planning is vital to conduct because with that, Atlantic Quench can allocate resources in different practices in optimum manner. The popularity of cranberry juices and drinks can be augmented if the product is extremely concerned with health of customers. Mintel report states that the trend towards healthy eating can be considered a key driver behind growth across all channels where customers can better be informed about nutritional contents of the product (Karandikar and Nidamarthi, 2007).
All the businesses are required to collect information about respective market places so that the fierce competition level can be identified. This could also assist Atlantic Quench to create competitive edge over the rivalries and as a result they can differentiate the products with that to the rivalries. Similarly, Atlantic Quench is required to emphasize on SWOT analysis so that core competencies and capabilities of the business can be used for varied purposes (Mortimer, 2008). This is also valuable in terms of developing suitable marketing strategies for the business as per the current efficiency and weaknesses. Hence, from the overall discussion, it is evident that the practices of marketing requires much consideration for overall development of business.
Existing Environment Of The Business
Atlantic Quench has been operating the business in competitive market place within various players. As per the present case, cranberries have been promoted for their healthy qualities and usefulness; hence the company has the monopoly to produce the same product in competitive market place. However, the growth of blended cranberry juice products and the growing consumer interest in fruit juice has resulted in a more competitive market environment (Schmitt, 2011). Recently, the brand has started spectrum of other juices in the product line so that large pool of customers can be attracted towards canned juices and drinks. Several changes are prevailing in the business aspects as competitors of Atlantic Quench are also producing same sort of products and services which further augments the level of substitutes (The global company’s challenge, 2012).
In order to extend the line of business, it is vital for Atlantic Quench to meet the changes prevailing in external market place as that could also help the business in enhancing its competency power. From the discussion, it is suggested that, there should be proper emphasis on marketing practices so that product promotion can take place. From the case, it is analyzed that Atlantic Quench's main challenge was to introduce cranberries to a whole new generation of consumers. Though the juice is healthy enough, still it contains several preservatives that leads to obesity and diabetes (due to added amount of sugar elements) (Kotler and Keller, 2011). This could affect the market share of the company if people would switch to other drinks and juices probably. Thus, all such things needs to be included in the marketing plan so that alternate actions can take place for resolving the issue.
Summing up the entire case of Atlantic Quench, it can be concluded that the products of Atlantic Quench should be promoted in fair and accurate manner so that customer interest can be retained in the company. At the same time, it is suggested to the business to focus on maintaining the actual taste of the cranberries in specified juices and there should not be any additional elements in the product. Major focus should be paid on all elements of marketing mix so that products can be successful promoted among different customer segments. For future business purposes, it is vital for Atlantic Quench to maintain health aspects into account. Lastly, it is suggested to the business to execute the plan by considering all the principles of marketing management.
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