Developing Well-Developed Measures for Business Growth

A study on the development of well-developed measures helped in creating appropriate marketing strategies for business growth, enhancing growth aspects and success factors for organizations like AQC.

Principles of Marketing
Management
(A marketing plan for Atlantic Quench Cranberries Inc.)
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EXECUTIVE SUMMARY
Marketing planning plays a vital role in business success because in defines the path the
attract target audience so as to earn good revenues. Herewith unit is going to deal with the case
of Atlantic Quench Cranberries Inc., a leading producer of canned and bottled juices and juice
drinks in North American market. The effective marketing strategies has enabled company to
enjoy great success in the UK market. AQC has positioned itself in the UK market and has a
leading position as a producer and seller of juice and healthy drinks but the operations depend on
climatic conditions and ineffective measures and it has to focus on marketing practices to
increase the sales in other regions of UK. The demand of healthy food is favourable for the
growth of corporate entity. This unit represents a situation analysis of Atlantic Quench on which
basis, a marketing plan is created for upcoming 1 year 2017. However, segmentation, targeting
and positioning along with marketing mix is designed for UK.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
TABLE OF CONTENTS.................................................................................................................3
INTRODUCTION...........................................................................................................................4
About company and its operations in UK market........................................................................4
SITUATION ANALYSIS...............................................................................................................5
Macro Analysis: PESTEL Analysis.............................................................................................5
Micro Analysis: Porter Five forces..............................................................................................6
5 C Marketing Model...................................................................................................................7
SWOT Analysis...........................................................................................................................9
SMART OBJECTIVES.................................................................................................................11
SEGMENTATION TARGETING AND POSITIONING............................................................13
MARKETING MIX.......................................................................................................................13
Marketing plan...........................................................................................................................14
IMPLEMENTATION AND CONTROL......................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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INTRODUCTION
Marketing is the heart of business as it supports in creating brand image in the market as
well as to increase the opportunities of good earnings. Marketing planning in the similar aspect is
important to carry out company's advertising and marketing efforts for upcoming years so that
specific marketing objectives could be attained in set time frame (Simpson, 2010). The report
herewith is based on Atlantic Quench Cranberries Inc. which is the leading producer of canned
and bottled juices and juice drinks in North America’s. The mentioned company has enjoyed
great success in the UK market through putting effective marketing strategies. Now, seeing the
future demand for company's product, management wants to create a marketing plan for the next
year for Atlantic Quench. Here, the report includes application of a range of marketing models
and concepts such and Pestle, marketing mix, SWOT etc. to support an effective marketing plan
for cited company. At last, a marketing plan for the next year for Atlantic Quench is designed
which is supported by market analysis.
About company and its operations in UK market
Atlantic Quench Cranberries Inc. (AQC) is an agricultural co-operative Company based
in United States. The foundation of company was made 80 years ago then in 1974 it has joined
with Florida grapefruit. At present the cited company is the leading producer of canned and
bottled juices and juice drinks in North America’s leading producer and recognised as a best-
selling brand name in the canned and bottled juice category. This company deals with the
products like as fruit juices, dried cranberries (*under the brand name Crantanas), hence, product
range is classified juice and non-juice drinks. This entity closely works with farmers as it
purchases all the crops that are grown by farmers at the highest possible price and use it for
production. The market in which Atlantic Quench deals with is volatile which reflects changes in
climate as well as market trends. Here, it is to be noted that the company has enjoyed great
success in UK market, in 2013, aforesaid entity has signed a licensing agreement with Gerber
that was purposes at manufacturing and distribution of juices and juice drinks under the brand of
Atlantic Quench within the UK. This was a turning point for company in which it became the
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well-known brand of juice and juice drinks in the UK market, further, it made successful
contracts with the 3 largest supermarket groups for increasing its sales and product lines.
Situation Analysis
Atlantic Quench is recognized an international producer and seller of juices and juice
drinks and it has noted that cited company is affected by ranges of internal and external
environmental factors. The operations of business are going to be affected by food and beverage
industry throughout the world. Here, internal and external market analysis is going to be
conducted for assessing the current situation in the market (Kalafatis, 2012). The justification of
carrying out internal and external marketing environment is to find out the improved ways to
design a marketing plan. In addition, an effective marketing analysis will support business unit in
making an effective impact on developing of future business strategies. This is to be note that the
internal market analysis helps in carrying out capability and strengths of the business as well as
external environment will support in finding out opportunities and available threats in market.
Macro Analysis: PESTEL Analysis
This is an external analysis of company which is highly focused towards carrying out
significant impact of external factors on the operational on business. It includes the factors which
are outside of control of company, however, these are often uncontrollable; hence create a huge
impact on business strategies of a company (Blythe, 2013). Here, is the PESTLE analysis of
AQC in UK market.
 Political factors –The political factors of UK market and the rules and regulations of
government affect functions and marketing strategies of Atlantic Quench. The
government policies on healthy eating affect the practices of the cited company in the UK
market. The political conditions of the UK market are different from US which are going
affect the business (Lee and Carter, 2011). In addition, the rates of taxation in the market
affects trade practices of company.
 Economic factors – The economic factors including recession, inflation, currency
fluctuation affects functions of leading entity Atlantic Quench in the market place. The
increase in interest rates affects the prices of juice which further affects the behaviour of
consumers. However, UK market has recently come through recession or economic crises
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which is going to affect prices and purchasing behaviour of individuals (Kotler and
Armstrong, 2010).
 Social factors – The social factors includes the buying behaviour of customers as well as
the need and demand of products. The social habits of UK people relating to fruit juice,
fruit drinks and health drinks is keeping on change (Hastings and Domegan, 2013). The
people are purchasing it on daily basis however; the taste and flavour may affect buying
decision. The company has to place itself in respond to increased demand in the UK
market for convenience drinks.
 Technological factors – The use of technology in every aspect of business of cited
company is affected with technical factors. The company is using technology for
marketing its products and creating promotions. Online advertising, e-commerce and e-
shopping are the major aspects that decide the effective use of technology in Atlantic
Quench within UK market (Kotler, 2013). Technology is used by the aforesaid company
to achieve expansion and growth and creating marketing plan in the UK market.
 Environmental factors – Environment is a big concern of business which is going to put
a huge impact on success of company in UK market. The cited company has adopted
innovative approaches to packaging in which products are packed in recyclable glass,
cans, cartons or polyethylene terephthalate (PET2) plastic bottles (Chaharbaghi and
Lynch, 2010). The packaging further increase the information related to ingredient and
nutrition.
 Legal factors – The legal factors include the laws design by the government relating to
beverage industry. In the UK market, the laws and regulation are little strict that affects
the business of cited company. Atlantic Quench has to comply with such rules and
standards to carry out trading and marketing practices.
Micro Analysis: Porter Five forces
Threat of new entrance (Moderate): Atlantic Quench has maintained good brand image
in the home market and it is difficult to bead the market image for a new entrance, in addition to
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that tight regulation in the existing food and beverage market and huge capital investment lower
down the threats of new entrance.
Substitute products (High): The main products of Atlantic Quench are healthy range of
fruit juices, however, the substitutes of company’s products are available in the market place.
Within UK, availability of health drinks that can be offered to customers as a substitute of fruit
juices by leading retailing brands in UK (Kotler, 2013).
Competitive rivalry (High): Competitive rivalry for Atlantic Quench is high as there are
number of competitors of AQC in the UK market. The leading supermarket own brands such as
Tesco, ASDA, and Sainsbury are offering sugar free products as a healthier option to juice
drinks. However, the leading brands have a high market share as compared to Atlantic Quench
even customer loyalty is also high.
Bargaining power of customers (Moderate): Due of availability of substitute and price
sensitivity, there is a high bargaining power of customers to Atlantic Quench Company. Interest
in healthy eating in the UK is going to positively effect on sales of juice and juice drinks. Within UK
market, the demand for fruit juice, fruit drinks and Health drinks is increased which is showing a
healthy lifestyle.
Bargaining power of suppliers (Low): For Atlantic Quench there are very few suppliers
whit offer raw material which health options. With existing suppliers such as farmers, AQC has
maintained close working relationship hence, it purchases crops at the highest possible prices..
Hence, bargaining power of suppliers is low for Atlantic Quench.
5 C Marketing Model
The internal and external market analysis of Atlantic Quench Company is going to be
conducted while applying 5C model. Major 5 components of 5 C models are Customers,
Company skills, Competition, Collaborators and Climate (Ennew and Waite, 2013).
 Company: This is the first component of 5C model in which the company's objectives,
strategy, and capabilities, product line and performance is to be evaluated. In the present
case, AQC has got renowned place in UK as well as international markets. In home
country, the business is a famous brand as it provides unique and healthy range of fruit
juices and other products (Bruyn, 2013). The company is always focused towards new
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product development which is a key factor of organizational success. In addition, the
cited company is aiming at becoming quality producer and seller of juices in international
market; therefore, it implemented a long-term strategic alliance.
 Competition: The second and foremost component of 5C model is competitors to whom
the business has to face huge rivalry in national as well as in international markets. There
is a fierce competition in the market for the production of juices. In regard to the
marketing of products, it has been witnessed that for new brand, it becomes difficult and
even expensive for business to advertise, market and launch new products (Challagalla,
Murtha and Jaworski, 2014). The major competitors of AQC in the UK market are the
competitors are supermarket own brands as they offer sugar free products which is a
healthier option to juice drinks. As the company is dealing with beverages segment and
aims as attaining nonalcoholic drinks the consumers, hence, face a huge rivalry. Direct
competition is faced by in business entity from soft drink segment. In the market of
European, the company is outperforming but in both Germany and France the market
share of the business is too less. However, it has positioned itself as a leading producer of
cranberry juice and bottled drink in North America (Ahmeti, 2015).
 Customer: The needs and wants of customers affect the business of a leading company
in all the manner and the marketing practices are designed while focusing customers.
However, it is important to carry out customer analysis. Here, in case of AQC, it is
important to carry out a successful analysis of market size and potential growth, UK
consumer's wants and needs, analysis of Distribution channels, quantity and frequency of
purchase and income level of consumers (Hammervoll, 2013). The cited company has
adopted marketing measures in order create an effective impact on the growth and
development of the business unit.
 Collaborators: The growth of business is specifically depends on an effective
collaboration with suppliers, agency, distributors as well as partners. Through effective
collaboration, the company can have huge opportunities. In respect to the present case, a
close working relationship between the farmers and AQC is evident in which the business
purchases crops at the highest possible price and carry with the production (Payne and
Pressley, 2013). In addition to that the company has made a long term with Coca-Cola in
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North America markets for bottles and distributing single-serve cranberry juice and the
agreement has provided various opportunities for the firm for developing new product
innovations across multiple trade channels. The effective collaboration and partnership is
going to help business in widely enhancing business operations. The presence of the cited
company in the UK market is supported by licensing agreement with Gerber to for
manufacturing and distribution of juices and juice drinks as well as negotiated with 3
successful contracts with the largest supermarket groups in the UK (Lilleker, 2013). The
company is successfully maintaining favorable business relations with farmers, agencies,
distributes and licensing partners.
 Climate: Climates is the environment under which the company deals with political,
legal and social environment. The regulatory environment of UK affects the market
policies affects the production, distribution and sales of AQC. In addition, the use of
technology in distribution and marketing of products affects the business, along with the
social culture of people; hence, the business has to design marketing practices while
focusing on competitors (Challagalla, Murtha and Jaworski, 2014). The cited company is
focusing on maintaining favorable business relations with government. Previously, it has
been noted that the company is operating in agriculture business which is widely
challenging and volatile, hence, climate affects the business a lot in designing marketing
practices.
SWOT Analysis
The above internal and external analysis of Atlantic Quench Cranberries Inc. is helpful in
carrying out strength, weaknesses as well as opportunities and threat. Here is SWOT analysis of
cited company which is supported by Atlantic Quench (Pouder and Clark, 2009).
Strengths
 The company has well established
brand image in domestic as well as in
international market
 It has developed bestselling brand name
in product line i.e. juices and bottled
drinks which has supported effective
Weaknesses
 The seasonal variance in the market
 Volatile market and changes in climate
 Ineffective production and supply
forecast due to climate changes
 Limited practices for controlling cost of
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market development in UK
 Continue increasing sales growth in the
markets
 Virtual monopoly in the niche market
for
 cranberry products
 Creativity in new product development
 Great success in the
UK
 The business has developed effective
backward integration that has
significantly helped in expanding
business operations
 Innovative and effective marketing
strategies
 Continual market sales
production
 Dependency on a single line of
production (cranberry) that in long run
affect market sales
Opportunities
 Emerging markets
 Increasing demand of health products
 People's perception towards healthy
lifestyle
 Expansion into convenience juice
drinks
 Trend towards healthy eating is key
driver
 Collaboration with grocery
channel and super markets
Threats
 Adverse climatic conditions
 Increase in production cost
 Insufficient availability of raw
materials due to climatic conditions
 Other health options of supermarkets
 Market competitions from brand such
as pepsico and Coca-Cola
 Threats from retailer and supermarkets
in the UK
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On the basis of above situation analysis, it can be stated that AQC has positioned itself in
the UK market and has a leading position as a producer and seller of juice and healthy drinks.
However, major threat is of dependency on climatic conditions and ineffective measures (Wood,
Pitta and Franzak, 2010). The company has to work upon new area in marketing to increase the
sales in other regions of UK. The concept of healthy food has created a huge demand in the
market which is favorable for the growth of corporate entity.
SMART Objectives
The evidence of the case study represents that Atlantic Quench has enjoyed strong annual
growth. The business has attended sales growth of 7% per year for the last four years and it gains
market share in every competitive sector. There was 26% increase in the consumption of
Crantanas. In addition, from the above market and environment analysis, it has been witnessed
that till now company has attained huge growth in the UK market but somewhere to beat the
competition and to attain the marketing objectives the company has to go for improving
marketing practices (Chaharbaghi and Lynch, 2010). Prior to this, it is important to design
SMART objectives for AQC. Here, is the list of objectives for Atlantic Quench which are
designed under SMART criteria
SMART objectives for AQC will be as follows:
Basis OBJECTIVES ANALYSIS
Specific To improve market share and
increase sales in European market
The mentioned company has to design its
practices to increase the market share in
UK. It is going to focus on developing
market sales throng focusing on specific
need and wants of buyers. This is
supported by effective marketing plan
with the aim of increasing market shares
and increasing sales.
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Measurable The sales is to be increased by
20% by the end of 2017
From the analysis of case study, it was
noted that the company has developed a
growth rate of 7% in last four years
(Ahmeti, 2015). Now current objective for
the upcoming years is to increase the sales
of cited company in UK market by 20%
in upcoming year
Attainable To specifically focus on people
who are heath conscious. In
addition, youth and kids will be
the major segment
The sales target set out by the business
entity is said to be quite attainable as the
selected segment has a strong demand for
such products. From the analysis, it was
noted that population aging from 15- 24
year old in the UK are the heaviest
consumers of juice and juice drinks
(Ennew and Waite, 2013). The business
entity has potentials to generate market
sales in the cited segment as supported by
the huge demand from market place.
Realistic To make effective marketing and
promotion as well as product
development in accordance with
customers need.
The marketing strategies are going to help
the business in carrying out effective
practices and to attain the sales targets.
The organization has to determine and
manage an effective balance between cost
and marking practices.
Time Bound To raise global market share by
15% by 2018
The targets can be achieved by creating a
flagship in UK market by the end of 2018
which is going to be effective in overall
business improvement.
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Segmentation Targeting and Positioning
Segmentation: Segmentation refers to dividing market into different groups in which all
groups may have similar needs and wants (Wood, Pitta and Franzak, 2010). Atlantic Quench
deals with product range healthy fruit juices, therefore, the market of UK can be segmented on
the basis of demographic profile of respondents. The market can be segmented on the basis of
age demographic of respondents.
Targeting: It has been witnessed population of 15- 24 year olds in the UK are the
heaviest consumers of juice and juice drinks which will become the target market of Atlantic
Quench. Specifically Children and youth who are health conscious can targeted. However,
people aged between 45-54 year old are also be targeted as have greatest growth of usage of
healthy food.
Positioning: The position of Atlantic Quench and its products can be done by making it
as a healthier product. The company is going to create a message to be health conscious so that
customers can be attracted towards healthy products (Bruyn, 2013). The products can be
promoted by offering discount, combine selling, advertisement and digital, online promotions.
Marketing mix
The objectives of business are to be attained by making an effective planning in respect
to the marketing mix in the UK market. Here are the four major elements of marketing mix and
their arrangement in UK market by Atlantic Quench;
Product: The cited company deals with fruit juices and dried cranberries. The company is
creative in new product development (NPD) which contributes in organization’s success
(Kalafatis, 2012). The innovative practices of product packaging increase the appeal of Atlantic
Quench’s product range. It uses recyclable glass, cans, cartons or polyethylene terephthalate
(PET2) plastic bottles fort product packaging. The changes in products are made as per the needs
and wants of target market.
Place: Atlantic Quench is going to specifically focus in the UK market to distribute fruit
juice and bottled drinks. The practices of company will be designed with a specific attention to
availability of the product in the UK. It can be noted that the business entity has specifically
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adopted the intensive and selective distribution strategy to market its products (Pouder and Clark,
2009).
Price: The Company is going to offer the products at the low prices in the UK, on which
basis the target customers can be attracted towards the products and services. The competitive
positioning within the market can be developed by adopting competitive pricing hat will help in
beating fierce market competition into retailers such as Tesco, M&S and Sainsbury. For such
market including sports, the company can make use premium prices (Wood, Pitta and Franzak,
2010).
Promotion: The cited company is going to focus on aggressive promotion in which is
going to offer discount pricing, combine selling, advertisement and digital, online promotions.
The best marketing practices are the online promotion which is going to design for the market.
Marketing plan
MARKETING
MIX
ELEMENT
Year 1
Product At the initial stage of the launch of product it will be introduced in two
different flavors
Price Company is keeping its price low initially. A first low price will be changed
for the product on the basis of using price penetration tactic.
Place AQC company retail outlets have been selected to sell the product at starting
age
Promotion Combine selling, discount offers etc.
Implementation and Control
The marketing plan designed above is to be implemented in the UK market within the
time frame of 1 year. However, monitoring and controlling of overall plan is required by the
entity. Here, is a Gantt chat showing activities and time frame of overall marketing plan:
Activities
/Months
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
14

Market
research
Segmentation
and targeting
New product
development
Introducing
product in
market
Marketing
and
positioning
Taking
customer
feedbacks
Possible
modification
in products
Measuring
success
Ways to measure success
The success of the new launched product in UK market will be measured through sales
performance and customers responses towards the products. The major performance criteria
based ion KPIs will be ROI (Return on investment). The amount invested in product
development marketing campaigns should be earned back with a high rate that depends of sales
of products. The higher sales of projects in the market will show a favourable. In addition to that,
the response of the UK people will be always to measure the success of product and company in
the UK market for which social media sites will be used (Garoufallo and et.al., 2013).
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CONCLUSION
From the above study, it has been articulated that appropriate marketing measures help in
business in its growth and development. It is highly essential for them to analyse effective and
well developed marketing plan. With the help of above case analysis of AQC, it has been
identified that creating well developed measures helped them in developing appropriate
marketing strategies for the growth of their business. Further, this study also helped in enhancing
the growth aspects for business organizations as well as appropriate success factors for AQC.
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