Atlantic Quench Cranberries Inc

Question: Describe about the Marketing plan of Atlantic Quench Cranberries Inc? Answer: Executive summery Atlantic Quench Cranberries Inc Cranberries Inc. (AQC) is supportive agricultural company. This is a United States company. Atlantic Quench Cranberries Inc was created along 80 years ago. This company was created with the collaboration of three cranberry growers who was lived in Massachusetts and New Jersey. After couple of years Florida grapefruit growers co-operatively joined the Atlantic Quench Cranberries Inc. This company is now having owned by more or less 630 cranberry and 46 grapefruit farmers. Atlantic Quench Cranberries Inc is now the leading manufacturer of canned and bottled juices and also drinks juices of North America. The company has brand a name with a mark of bestselling brand of canned and bottle juice of United States. The company has also succeeded selling their juice in the United Kingdom also. The company is known for best fruit juice manufacturer but the company also sells dried cranberries also with another name Crantanas. The company has a classified range of their products both juice and non juice. (Liu, Tayyari, Khoo Gu, 2015) Corporate Connections Atlantic Quench Cranberries Inc has connected with the Florida grapefruit grower in 1974. After a great success in United States for being voted for the best juice manufacturer many ups and faced by the company. After that in 2003 Chuck Berrie was appointed as the CEO of Atlantic Quench Cranberries Inc. After that in 2007 Atlantic Quench Cranberries Inc and Coca-Cola has made an agreement of selling bottles of cranberry juice products in North American Markets. The agreement between the two companies incorporated opportunities of the development of new products innovations also. After the successful agreement between the companies, Atlantic Quench Cranberries Inc has signed another agreement with the Gerber, the largest supplier of private and branded juice seller of United Kingdom for selling of their market juice and drink juices in the United Kingdom Markets also. After the success in United Kingdom markets the company has made three contracts with the top three biggest supermarke ts of United Kingdom to promote their products. (Idowu, Capaldi, Zu Das Gupta, 2013) Environmental and Forecasting Analysis with the help of PESTEL SWOT PESTEL expands P for Political factors, E for Economics, S for social, T for technological, L for Legal and E for Environment. This analysis will give an eye of the whole environment of the Atlantic Quench Cranberries Inc. And the SWOT analysis is the internal environment analysis of the company based on the products of Atlantis. Swot analysis is likely to be more products and service specific of the company. (Peichl, Pestel, Schneider Siegloch, 2011) The PESTEL analysis factors: Political Factors of Atlantic Quench Cranberries Inc Atlantis Quench is based on the political factors of United States and United Kingdom relationships. Because the company marketing their products in both the United States and United Kingdom. Recently, The UK government have increased their vat rate from 17.5% to 20% in 2011 and government also increased their revenue by 13 billion per year. After this changes in the market Atlantic Quench Cranberries Inc have to produce their product in such price which will not effect by the current vat rate and tax rates. Economic Factors of Atlantic Quench Cranberries Inc The UK government is showing positive recovery from the financial crises. Atlantic Quench Cranberries Inc operates his business in very strong economical environment of the United States. The UK government is growing their economy. The company is making effect from the economic growth of the country to their new products launch in next three years. Social Cultural Factors of Atlantic Quench Cranberries Inc Elder people number in increasing in the UK due to the baby boom generation. According to the last reports there was a little decrease in birth rate and increase in life expectancy of people which led to shift in the demand of people which is good for Atlantic Quench Cranberries Inc new product launchings. The new products of the Company will be based on according to the segmentations of younger generation and the upper class position of the society in the next three years. Technological Factors of Atlantic Quench Cranberries Inc Technology is very critical for supply chain management for Atlantic Quench Cranberries Inc. Retailers like Atlantic Quench Cranberries Inc developing their chain management to enhance their cost efficiency. These can be reflecting in the competencies of the Atlantic Quench Cranberries Inc. Atlantic Quench Cranberries Inc is using new and advance technology in their new products upcoming next three years. Environmental Factors of Atlantic Quench Cranberries Inc Increase in average temperature of UK, leading to a dissolve of the Arctic ice and it is predicted that in 2040 there will be an ice-free summer in UK. Such like information is leading to higher stress on environmental sustainability which is affecting the company. Atlantic Quench Cranberries Inc is adopting some methods in their new production which is environment friendly in upcoming three years. (Yksel, 2012) Legal Factors of Atlantic Quench Cranberries Inc There are many laws in UK which affect Atlantic Quench Cranberries Inc because the company has a wide range of products and services. As like drinking products of the company is reforming the food drinking policies of the UK government. The company is taking these laws in their marketing plan for next three years. SWOT analysis The following SWOT analysis is based on our main findings about external and internal situation analysis. It summarizes Atlantic Quench Cranberries Inc key strengths and weaknesses and also describes the market opportunities and threats that we will have to take into consideration in our planning. Strength 100% US-owned Knowledge of local market Investment in market research always updated on customer needs Competitive advantage in product differentiation investment in RD for innovations and quality Search for excellence in service investment in recruitment, training and control monitoring Long-term sound and transparent relationship with suppliers New owner provided expertise on core business of fast food Specialized management is giving new breadth towards market orientation and growth strategies. Potential for growth in sales and profitability. Weakness Lack of perceived value; Poor distribution limited market access, small number of franchisees; Lack of awareness low investment in Promotion Problem of positioning - no customer identification with the brand Low retention rates customers are not loyal, many occasional customers (not profitable) Poor management, business was unprofitable. Small market share. Opportunitiess Drink juice market is still growing. Customers spend more money on refresh drinks. Consumers are more concerned about healthy juice. The survey shows there is a great opportunity to grow in UK especially after signing new contracts. A strong trend for healthy and nutritious products is emerging. The market is moving towards healthy drink juice, becoming increasingly aware of health nutrition. Threats Many new diseases have been discovered and have caused concerns in production of juice. The substantial number of substitute products in the US and UK supermarkets. Competitors are frequently launching innovative products. Other fast food chains are markedly growing. Asian foods are booming. Australian economic health (strongly dependant on global economy and the political situation) Segmentation and targeting Two major Market segmentations which is based on younger generation and richer section of the society Younger Generations Upper Class The population of 15- 24 year olds in the UK are the biggest customers of juice and juice drinks. The most of younger generation are incomes less than the old generations so according to those people the company has made some products which price is lower than normal products of the company. The company is targeting these younger generation in next three years because this is the large section of the society and the company sales can be increase into this section. Cranberry classic in 250 ml was introduced for target the desire buyers in 2003 which is a three year profit plan for the company. The people who are in the upper class section of the society, the company has made some special products for them to business for next three years. These special products are costly than other normal products of the company. The management of the Atlantic Quench Cranberries Inc is targeting this section of society because this section can boost the product sales rapidly for next three years. Cranberry Select Premium Chilled Juice Drink was open in new 1.75 litre wrapping, exclusively designed for the fast-growing richer drinks sector Competitive Marketing Strategy Mission of Atlantic Quench Cranberries Inc The Atlantic Quench Cranberries Inc mission is to energize the world with their juice products. Therefore, to create a value in the people mind of their product and make difference from the other company products. (Berkhout, 2009) Vision of Atlantic Quench Cranberries Inc The vision of the company is to serve their fruit and drink juice to every people of the world. And sell their other products into the world market safely, joyfully. Competitive Advantage Cost Advantage: Unit Cost: Atlantic Quench Cranberries Inc unit costs are low, as they usually are in the juice industry. Margin prices are marked up to more than 50%. Transaction Cost: The best mode of transaction should be chosen to minimize the cost. This factor is important up to a certain level. Marketing Expenses: Atlantic Quench Cranberries Inc marketing expenses are high, due to the new health range being new it will undergo heavy advertising and promotion in the initial product launch. Some of the advertising will be for the new health range alone and cost more money. Each time Atlantic Quench Cranberries Inc is advertised its brand reaches a higher level of awareness and hence reinforcing the image of Atlantic Quench Cranberries Inc as a health food provider for the health conscious consumers. Overhead Expenses: Overhead expenses are shared among the whole Atlantic Quench Cranberries Inc product range and will be a portion of the total costs. Differentiation Factors: Product and Service Quality: Product and service quality offered by Atlantic Quench Cranberries Inc are excellent, however this excellence remains unrecognised due to poor management of the company, and lack of strategic direction, which has damaged distribution and channelling, which has led to lack of awareness of the great quality offered by Atlantic Quench Cranberries Inc, because of the lack of availability of Atlantic Quench Cranberries Inc outlets. Brand Image: Atlantic Quench Cranberries Inc is suffering from a nonexistent brand image, this is one of the weaknesses we aim to target in our strategy to grow market share. Relative Price: Atlantic Quench Cranberries Incs price is slightly higher than that of competitors due to superior quality and nutritious value of the food. Marketing Advantage: Market Share and Brand Awareness: Atlantic Quench Cranberries Inc has a decent share rate in the market. However, the brand awareness remains low, due to reasons explained above. This has shown that Atlantic Quench Cranberries Inc has a great opportunity to bring its great products to a broader awareness, thus once this is achieved, market share shall naturally go up. Distribution and Sales Coverage: Atlantic Quench Cranberries Incs distribution and sales coverage is also a weak point, thus presenting another great opportunity. Once Atlantic Quench Cranberries Inc invests in greater distribution and sales coverage, which will in itself increase brand awareness, and included with all the special promotions on offer with the product launch, will improve profits and market share.('Political Practice for Peaceful Reunification: Dialectical Strategy Tactics', 2009) Marketing and Financial Objectives Based on the overall marketing strategy of Atlantic Quench Cranberries Inc to enter and grow its market share as a leader in the health products range offered within the US retail juice industry, the marketing objectives for the new Atlantic Quench Cranberries Inc health range are as follows: Long-term Marketing Objectives 3rd PHASE: Lead and Keep the Market (Fast Food Health Range) Timing : After the Atlantic Quench Cranberries Inc market penetration the long term objective will be to keep the control of the market. Target Group : Younger people and upper class. Where : Nation-wide, some sales promotion activities in capital cities of UK How : With marketing mix strategy. Market Metrics : Market Penetration: 20% of the total market of drink juice health range. Marketing Mix The marketing mix determines the ultimate success of the product. This includes the unique blend of pricing, promotion, products offering and distribution system designed to reach our target customers, which are, younger and upper class generation. Product Mix Product mix width Atlantic Quench Cranberries Inc offers a wide and varied menu to customers specialising in quality juice products. In building the companys continuous commitment to meet its customer satisfaction, the new health products for next three years will emphasise, in several dimensions, in achieving its standard for quality; Taste; Hygiene; Health; Safe. Product mix length In extension towards the current offers, the juice menu would include for young people as well as health drinks for upper class. In addition, more variety of flavour and recipe for juice will be introduced in order to capture more market demand. Product mix depth Atlantic Quench Cranberries Inc offers a wide range of juice products and sizes suited for the various demands of customers. Nominally, there are 3 different ranges with 3 different sizes available for individuals. In addition there will be a new products suited for youngsters, a Party Pack which is capable of serving 4-6 people and the Family Pack suited for family dining, which is for the upper class. Product consistency All drinks will be packaged using different sizes of recyclable board packaging in accordance to the juice. This is to ensure heat insulation as well as keeping the aroma within the packaging. Fruit juice will be supplied to customers in a sealed recyclable bottle specially design by Berri for Atlantic Quench Cranberries Inc. All in all the packaging is to build awareness and support the usage of environmental friendly resources. Promotion Advertising Awareness Building The advertisement campaign is catered towards building brand and product awareness. Thus this forms Atlantic Quench Cranberries Incs three important advertising objectives; to inform customers of the new products development and sales promotions; to continuously persuade new buyers, as well as to encourage switching of brands from competitors customers; and to gain top- of mind product awareness. The key message in the advertising campaign includes: Have a balanced diet with Atlantic Quench Cranberries Inc. Company offers the best value for juice. Three main medium will be utilize in the advertising campaign; television commercials at Channel 10 and at Hoyts cinema advertisements, radio commercials and advertisements in magazines and newspapers. Nevertheless, a new restructured webpage will provide another medium for advertising as well. Further to this, occasional advertisement will be placed in city area signboards. Sales Promotions The sales promotion strategy used serve several purposes. Primarily the promotion was meant to entice consumers to purchase the health juice as a strategy to accelerate market penetration. Secondarily it was to hold loyal consumers and finally the overall intention was to lure consumers away from competitors products. The initial promotion tactics adopted in satisfying the primary objectives were targeted at our main customers namely, students and health conscious professionals. As such, a discount of 10% will be given to any individuals who buy individual meals with either a health club membership card or a valid student card. In the customer retention promotion an Atlantic Quench Cranberries Inc free drink card will be launched. The usage of this card is similar to what we understand as a coffee card. Every customer who purchases any individual juice will be given a stamp. In collection of 5 stamps, a free small quarter meal will be given free. All these promotions will be strongly backed by the advertising strategy and medium adopted in this marketing plan. Price The new Atlantic Quench Cranberries Inc health juice menu will offer a wide range of individual purchases as well as meal packages for individuals, couples, groups and families. Most of the products offered here will come in 3 different sizes, which will provide a variety for customers to choose from. The product will be schedule to launch in next year the May 28th. Looking at the price affordability for the given customers needs and the competitive offering by the competitors; the market based performance approach is adopted.(Paden Stell, 2005 Preparation and Objectives for the future Customers are looking for natural and healthy option for the products. Atlantic Quench Cranberries Inc has a great opportunity to target customers who are seeking an alternative to the high sugar content by the new launch of their product. There is also another option for expansion in the sale of drink juice which made fresh pushed juices when the market remains undeveloped in the next three years. (J. PAUL PETER, 2012) The Atlantic Quench Cranberries Inc has to look in the matter how the customer health can be increase in the next three years with the new product launch which will be made in the future. Changes to the advertisements making the marketing to children more difficult, parents will increasingly become the target. So, the company have to look into the matter that how to increase the marketing to the children in the next three years. 15-24 years olds are the heaviest consumers of juice and juice drinks in the United States. The company need to focus on the children because this section is the most important area of grow the company in the next three years. After targeting children the company will focus on the middle age people by their new launch of high rich quality flavour. The price of the rich quality product will be high so, the management have to look into the product quality must be rich and higher than the other company product products. (Upton, 2011) Conclusion To produce best known products to the world Atlantic Quench Cranberries Inc has to utilize the their opportunities and qualities to process and establish their standards to guarantee their products between the customers in coming three years. A harmonized product of juice with a guarantee of improvement will increase the expectations of the customers in the next three years. To guarantee the standards of the company products, the company has to develop their relationship with the customer. The company can adopt product line decisions for launch new products in the future three years. (Ormrod, 2012) References Berkhout, E. (2009). Decision-making for heterogeneity. Wageningen: Wageningen University and Research Centre. Griffitt, K., Grimes, D. (2013). 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