Strategic Marketing Management for Grove Juice

The aim of this report is to discus about the internal competencies of Grove juice and to what extent they are compatible enough in dealing with the potential opportunities. In this report, a number of opportunities are being identified for Grove juice that will help them in enhancing their future course of business.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic marketing management
Name of the student
Name of the university
Author note

1STRATEGIC MARKETING MANAGEMENT
Executive summary
The aim of this report is to discus about the internal competencies of Grove juice and to what
extent they are compatible enough in dealing with the potential opportunities. In this report, a
number of opportunities are being identified for Grove juice that will help them in enhancing
their future course of business. In addition, this report also discussed about the competitive
advantages possessed by them and how they can be used further in catering to the identified
opportunities. In accordance to these factors, segmentation, targeting and positioning are being
done on the potential customer segments of Grove juice. An ideal marketing mix strategy is also
being recommended to them that will help in meeting their business intent along with leveraging
the identified opportunities.

2STRATEGIC MARKETING MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
SWOT analysis................................................................................................................................3
Identification of the opportunities...................................................................................................4
Evaluation with BCG matrix.......................................................................................................6
Identification of the competitive advantages...................................................................................6
Porter generic strategies...............................................................................................................6
Cost leadership.........................................................................................................................7
Product differentiation.............................................................................................................7
Market focus............................................................................................................................7
Ansoff growth matrix..................................................................................................................7
Product development...............................................................................................................8
Market penetration...................................................................................................................8
Market development................................................................................................................8
Diversification.........................................................................................................................8
Marketing objectives.......................................................................................................................8
Segmentation strategies...................................................................................................................9
Demographic segmentation.........................................................................................................9
Geographic segmentation............................................................................................................9
Psychographic segmentation.......................................................................................................9
Targeting strategies........................................................................................................................10
Positioning strategy.......................................................................................................................10
Recommended marketing mix.......................................................................................................11
Implementation plan......................................................................................................................13
Identification of the key performance indicators...........................................................................14

3STRATEGIC MARKETING MANAGEMENT
Evaluation of the social factors......................................................................................................14
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................16

4STRATEGIC MARKETING MANAGEMENT
Introduction
Identification of the competitive advantages and initiating the business strategies are the
major considerations for the contemporary business organizations. This is due to the reason that
competitive advantages will determine the potentiality and effectiveness of the organizations in
face of their competitions. On the other hand, it is also important for the business organization to
determine their target segments and initiate strategies accordingly (Saeidi et al., 2015). These
strategies will include the marketing mix elements that will help the organizations in targeting
the customers according to the current market trends and preference pattern. Thus, in order to
have an ideal marketing plan, it is important to determine all these factors effectively. Initiation
of the marketing plan is more important for the small and medium size organizations due to the
reason that it will help them to enhance their business further (Urbancova, 2013).
Grove juice is one of the leading names in the beverage sector of Australia. Their
products are Australian owned and grown. They are founded in 1969 in Brisbane as a home
delivery business of fruit juice. In the further stage, they started the larger operation and open
new manufacturing facility in Warwick also started to export to the foreign markets
(grovejuice.com.au/, 2018). Currently, they are one of the best known juice brands in the
Australian region. However, with the increase in the competition in the beverage industry and
inflow of the global firms, it is becoming more important for them to design a 12 month
marketing plan to enhance their business processes.
This report will design a 12 month marketing plan for Grove juice by including the
SWOT analysis to determine their potential opportunities. In addition, different models and
frameworks will be used in analyzing the identified opportunities. The competitive advantages
will be identified and will align with the business growth strategies. This report will also identify
the target market segments and initiate strategies accordingly. The marketing mix elements will
be recommended along with the budget and implementation plan for the marketing plan.
SWOT analysis
Strengths  Grove juice is one of the heritage brands of Australia and posses
positive brand image (Zhang, 2015).

5STRATEGIC MARKETING MANAGEMENT
 Having diversified product portfolio.
 Having own farming fields that ensure seamless supply of the fruits.
Weaknesses  They are having less presence in the foreign markets beyond the
Australian regions.
 Less brand value compared to the global competitors such as Tropicana
(Gyrd-Jones & Kornum, 2013).
 Organizational limitations by having only two production facilities.
Opportunities  Customer preference is changing towards the consumption of fruit
juice.
 Catering to more foreign countries will enhance the opportunities for
them.
 Introducing more flavors with different fruits will enhance the target
customer bases (Modrak, Marton & Bednar, 2014).
Threats  Emergence of new competitors in the market will further reduce the
profitability of Grove juice.
 Fruit juice is not considered as a necessity product and thus it is more
vulnerable towards the economic downturn (Zenker, Eggers & Farsky,
2013).
 Change in the taste and preference pattern of the customers.
Identification of the opportunities
One of the major opportunities identified for Grove juice is the customer preference
pattern towards the fruit juices. It is reported that more customers are opting for fruit juice as the
healthier alternative over the carbonated drinks. Thus, the business opportunities for Grove juice
are increasing with time (Gibson, Rosen & Stucker, 2015). On the other hand it is also identified
that growth strategies including enhancing the product portfolio and market presence will also
help Grove juice to cater to larger segments of customers. Grove juice is having expertise in
producing juices of different flavors and thus it will not be difficult for them to add some more
flavors. In addition, the existing facilities can be used for producing the new flavors due to the
reason that elements for producing juice will remain same (Mueller & Shepherd, 2016).

6STRATEGIC MARKETING MANAGEMENT
Market share
High Low
Growth rate
High
Low
Evaluation with BCG matrix
Star
Grove signature
Question mark
Grove only juice
Cash cow
Grove classic
Dog
Pure spring water
Source: Created by the author
From the above analysis, it is identified that Grove juice should focus on their Grove
signature and classic brands in enhancing their future business operation. According to the
resource based view model, the major resources for Grove juice are the financial capability,
which they gained from their years of operation, own farming land that helps them to have the
top quality fruits round the year and processing technologies (Lin & Wu, 2014). Among these
the productivity and climatic factors of their farming land cannot be imitated by the competitors.
Thus, producing new fruit flavors in their farming and will further help them to leverage on their
existing facilities in introducing new products in the market and cater to larger customer
segments from new markets.
Identification of the competitive advantages
Porter generic strategies
It is important to identify the competitive advantages for Grove juice based on their
identified opportunities. In this case, the porter generic strategy model will be used in
determining the strategic fit of the identified opportunities with the overall business plan.

7STRATEGIC MARKETING MANAGEMENT
According to the porter generic strategy, there are three strategies namely cost leadership,
product differentiation and market focus, which can help Grove juice in gaining competitive
advantages.
Cost leadership
In terms of the cost leadership approach, introduction of the new products will enable in
optimal utilization of their resources including their farming field and production facilities. Thus,
the average cost of operation will get down and it will increase the profitability of Grove juice
(Banker, Mashruwala & Tripathy, 2014). Generating more business from the foreign markets
will also increase the rate of production of them and reduce their average cost of production.
Thus, the identified opportunities will be well aligned with that of their business advantages.
Product differentiation
Product differentiation refers to the strategy of offering unique and distinctive products in
the market in order to stay different from that of the competitors. Thus, introduction of the new
products with new flavors will help creating more distinctiveness and different products over
their competitors (Liu & Zhang, 2013). In addition, entering in the foreign markets where the
existing flavor of Grove juice is not available will also uplift the product differentiation strategy.
Market focus
Market focus refers to the process of targeting and determining the preference pattern of
the particular target customer segments and offerings products accordingly. Thus, if more
product flavors are introduced in the market then the diverse requirement of more customers can
be met. In addition, more customers getting towards the fruit juices over the conventional
carbonated drinks (Piercy, 2016). Thus, these customers segments should be focused and new
products should be introduced accordingly.
Ansoff growth matrix
Ansoff growth matrix will be used in determining the relation between the identified
opportunities and the organizational strategic intent. According to this matrix, there are four

8STRATEGIC MARKETING MANAGEMENT
major organizational approaches that can help Grove juice in increasing their business
potentiality.
Product development
This refers to the process of developing new products to target the new customer
segments in the existing markets. In the case of Grove juice, introduction of new drinks in the
market will help them to cater to the new customer segments in their existing market. Thus, the
business opportunities will get increased for Grove juice (Katsikeas, Leonidou & Zeriti, 2016).
Market penetration
Market penetration refers to the introduction of the new variants of the existing products
in the existing markets in order to further penetrate in the market. In order to tap the growing
customer interests for the fruit drinks, Grove juice should initiate the market penetration strategy.
This will help them to target more diverse range of customers across different price levels and
business opportunities will get increased (Schmidt, Spann & Zeithammer, 2014).
Market development
Market development refers to the process of entering in the new markets with the existing
set of products. Grove juice will have more business opportunities if they can enter in the foreign
markets. Thus, the market opportunities will get increased and potentiality for them will get
increased.
Diversification
Diversification refers to the strategy of offering new products in the new markets. In case
of Grove juice, they can enter in a new market with offering new products such as carbonated
drinks and some other beverage items. This will help to diversify their business and sources of
income will be more for Grove juice.
Marketing objectives (SMART)
 Increase the sales in the Australian market by minimum 10 percent within the next 12
months.

9STRATEGIC MARKETING MANAGEMENT
 Gain 5 percent of the revenue from the new flavors to be introduced within the next 12
months.
 Convert 5 percent of the potential customers from the carbonated drinks segment within
the next 12 months.
Specific Measurable Actionable Relevant Time bound
Increasing the
sales is the core
objective
Determining by
evaluating the
difference
between the
desired and
expected results
Minimum 5
percent growth
can be achieved
Grove juice is
already having
presence in the
market and thus
it will be easier
for them
12 months time
frame is
suggested
Segmentation strategies
Demographic segmentation
One of the major segmentation variables to be used is demographic segmentation. In
terms of age groups, customers between the age groups of 12 and 60 will be targeted. The major
reason for targeting this wide age group is the nature of the product of Grove juice. Fruit juice
will be offered to the teenage groups as a mode of refreshments and to the elderly age groups as
a mode of nutrition (Sagar et al., 2017). In terms of gender, both male and female customers will
be targeted. In terms of the income level, mass market customers will be targeted due to the
reason that fruit juice is not a luxury product. This will increase potentiality for Grove juice.
Geographic segmentation
Geographic segmentation is important for Grove juice due to the reason that it will
determine the market presence of the products of them. Customers from the tier I and II cities
and regions will be targeted due to the reason that they will have the affordability of consuming
fruit drinks for refreshments. In addition, the potential export market will be the developing
countries (Volpi & Ferrari, 2015). This is due to the reason that developing countries such as
India and China are having the highest economy growth rate in the world with the largest portion

10STRATEGIC MARKETING MANAGEMENT
High price
Tropicana
of global population. Thus, targeting these countries will help Grove juice to have larger target
customers.
Psychographic segmentation
In terms of the psychographic segmentation, customers with having professional
backgrounds will be targeted. This is due to the reason that professionals will have busy schedule
and will have the requirement for fruit juices for their refreshments. In addition, the households
will also be targeted for their family usage. In addition, customers with having active lifestyles
will also be targeted due to the reason that active lifestyle will be well aligned with the
consumption of fruit juices for refreshments.
Targeting strategies
It is recommended that cost leadership and product differentiation strategies should be
initiated in order to target the segmented customers. This is due to the reason that targeted age
groups for Grove juice is wide and vast and initiation of the cost leadership will further increase
the potentiality from this age group (Bostrom, Bohm & O’Connor, 2013). Cost leadership will
help Grove juice to have customers from the targeted age group across the entire price levels. In
addition, there are number of competitors already offering fruits juices in the market. Thus,
initiation of the cost leadership strategy will help in gaining competitive advantages over their
rivals. On the other hand, cost leadership will also enable Grove juice to have more
competitiveness in targeting the developing markets by offering affordable prices.
It is also recommended that product differentiation strategy should also be initiated for
targeting the segmented customers. This is due to the reason that huge varieties of fruit juices are
available in the market and differentiating strategy will help to create a dedicated market
segment. Grove juice should come up with distinctive flavors, which will help to meet the
expectation of the customers coming from the carbonated drink segments (Dirisu, Iyiola &
Ibidunni, 2013). In addition, differentiation strategy will also help Grove juice to meet the
diverse taste of different customer segments.
Positioning strategy

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Natural flavorsArtificial flavors
Low price
Grove juice
Berri
From the above positioning map, it can be concluded that competition is low in the low
price and natural flavor segment. Majority of the brands are offering natural flavors in high price
and some are offering low price but with artificial contents. Thus, Grove juice will be positioned
as a low priced and natural fruit juice in the market. The above positioning map is denoting that
this positioning will help Grove juice to have less intensity of the competition in the market.
Thus, customers will have the option of availing natural fruit juice in lower pricing.
Recommended marketing mix
Product  Grove juice will be targeted as convenience products in order to
have more frequent purchases (Loose, Peschel & Grebitus, 2013).
 Distinctive packaging and bottle design will be offered as augmented
products.
 Diversified products will be offered to meet the diverse needs of the
customers.
Price  Market penetration pricing strategy will be initiated in order to
cover the larger market segments.
 This strategy will also help Grove juice to increase their sales volume
in the export market (Spann, Fischer & Tellis, 2014).
 Customers across different price level will be targeted with the help
of market penetration pricing strategy.
 Majority of the competitors are offering natural drinks in premium
price. Thus, this pricing strategy will enable Grove juice to have
lower intensity of competition.
Place  Grove juice will be distributed both through online and offline
markets.
 Online retail marketplaces will be used to distribute the products.
 Extensive distribution strategy will be used in offline distribution
of the products. This will help in having more outlets and availability
in the market.
 Online distribution will also help in catering to the need of the export
countries and bulk exports can be directly managed.

12STRATEGIC MARKETING MANAGEMENT
Promotion  Omni channel promotional strategy will be initiated in order to
have both online and offline presence.
 Social media marketing will be used in determining the changing
trend in the market and identifying the opinions of the customers
towards their existing products (Jiang, Yang & Jun, 2013).
 Traditional marketing including television commercials and print
media will be used to cater to the conservative customers.
 Sales promotion including conducting live events in the public
places will help in proving the customers real world experience
regarding the products.
 Seasonal flavors will be offered to tap the growing demand in festive
seasons.
Physical
evidence
 Physical evidence will include the pet bottle of the drinks. This will
stay with the customers even after the consumption of the drinks.
 Physical evidence for Grove juice will also include the color of the
juices. Natural colors will be used and thus they will be dull
compared to the competitors (Jussila et al., 2015).
 Physical evidence will also be made diverse due to the bottles of
different size and shapes.
Process  Grove juice is already having effective process of farm to fridge for
their juices.
 It is recommended that time consumption in the assembly line will be
reduced in order to have more option to offer the fresh juice to the
customers.
 Another production facility will be created in separate location to
cater to the increased demand.
 This will further reduce the time between the production and delivery
of the products.
 Delivery systems will be outsourced in order to have more efficiency
in the process.
People  Fruit cultivators are the major advantages for Grove juice and thus

13STRATEGIC MARKETING MANAGEMENT
they should be well managed in order to retain their competitiveness.
 Effective process of human resource management approach in place
will help to enhance the productivity of the employees and thus the
average effectiveness will get increased (Collings, Wood & Szamosi,
2018).
 Customer oriented approach will be initiated in order to have the right
products for the right sets of customers.
Implementation plan
Main activities/ stages Assigned
stakeholder
s
1st-2nd
Month
3rd- 4th
Month
5th- 6th
Month
7th-8th
Mont
h
9th- 10th
Month
11th-
12th
Month
Determination of the
external environment
Top level
managers
Determination of the
internal competencies
Medium
level
managers
Initiation of the
competitive strategies
Marketing
managers
Funding activities Finance
manager
Primary data
collection
Sales
executive
Final implementation Top level
managers
Segmentation of the
market
Marketing
manager
Implementation of the
marketing mix
elements
Marketing
and top level
manager

14STRATEGIC MARKETING MANAGEMENT
Evaluation and
measurement
Sales head
Follow ups Sales head
Identification of the key performance indicators
KPIs
Determination of the addition of new
customers in 12 months period
It will help in determining the change in the
inflow of the new customers before and after
the implementation of the marketing plan.
Number of sales lead obtained It will help to identify the exact number of
sales queries gained.
Number of promotional events conducted It will help in determining the number of
events conducted in 12 months.
Determination of the customer views and
opinions
It will help in analyzing the feedback of the
customers.
Determination of the sales volume in units
and value
It will help to identify the exact increase in
sales volume and number.
Evaluation of the social factors
Some of the ethical factors such as the societal marketing concepts will be considered.
This will help in initiating green marketing and other social oriented marketing, which will
further help in generating positive word of mouth in the market. In addition, the cultural factors
towards consumption of different fruit drinks will also be considered mainly in operating in the
export market. Global factors including the currency valuation will be considered in the
international business due to the reason that this will determine the profitability and final pricing
of the products in the export market.

15STRATEGIC MARKETING MANAGEMENT
Conclusion
This report concluded that Grove juice is having a number of opportunities in their future
course of business. In this report, the internal competencies of Grove juice are being identified
and they are aligned with the identified opportunities. In addition, this report also evaluated the
competitive advantages of them and aligned them with their new business intent. In accordance
to these factors, markets are being segmented and targeting and positioning strategy are being
discussed. This report concludes that the marketing mix elements discussed in this report will
help Grove juice to have effective course of business in future.

16STRATEGIC MARKETING MANAGEMENT
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