Marketing Strategy Analysis and Recommendations

This assignment delves into the core elements of marketing strategy. Students will examine key concepts such as market segmentation, positioning, target audience selection, and the role of brand equity in building a strong market presence. The analysis will involve evaluating real-world marketing campaigns and formulating actionable recommendations for enhancing marketing effectiveness.

PRINCIPLES OF MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MARKETING PLAN......................................................................................................................1
Company Profile..........................................................................................................................1
Analyzing the environment..........................................................................................................1
Selection of strategy....................................................................................................................5
Analyzing the marketing mix......................................................................................................7
Implementation and control.......................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Presently, globalization is affecting the growth and development of business units in
many aspects. As the level of competition in the market has increased severely, changing
demands of the buyers resulted in affecting the strategic planning and development of business
units. Major role played by marketing is to grow and develop the businesses in terms of
enhancing their sustainability and profits with the help of analyzing needs and preferences of
customers (Kotler, 2010). Marketing helps the firms in developing the organizational objectives
in accordance with the necessities of target market. In the present report, a marketing plan will be
developed for Atlantic Quench Cranberries Inc. as per the given case study. This is an
agricultural co-operative firm that is based in US and dealing in juices and non juice segment.
This plan will be developed in order to effectively enhance the business growth through
increased sales and for the expansion of current market in the upcoming three years.
MARKETING PLAN
Company Profile
Atlantic Quench Cranberries (AQC) is effectually operating in the USA market from last
80 years. Firm is an agricultural co-operative organization which has developed well structured
and integrated marketing and strategic operations so that it can grow at a fast pace with grabbing
the opportunities that are present in the market. Product range of Atlantic Quench Cranberries
(AQC) is all kinds of juice and non juice products. Company has developed its business planning
in accordance with analyzed opportunities that are present in the market. Apart from that, growth
and development measures which firm needs to take are planned and managed in the business in
such a way that changing needs and preferences of buyers will be met. As company is having its
manufacturing process which is totally depends on the agricultural sector, it proves to be the
biggest threat for its growth. With the help of effective strategic planning and development
measures, AQC made successful business operations.
Analyzing the environment
Atlantic Quench Cranberries plays a significant role in affecting the food and beverage
industry of the world. Company is having a well planned marketing system and effective product
range that is manufactured with keeping innovation in consideration. It is helping AQC in
gaining business growth and development effectually. The internal business analysis helps min
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assessing the strengths and capabilities of business by which it can successfully operate in the
present intense competitive environment (Yan, 2012).
Internal analysis
For evaluating the internal environment of AQC, 5C model has been applied which is
explained as follows:
 Customers – Company has adopted a strategy according to which needs and expectations
are customers are closely determined and on the basis of that, new products are
developed and made available in the market.
 Company skills – In American market, AQC is leading with a renowned brand name for
the product range of juice and non-juice items. In fact, in North America, firm is leading
as a cranberry juice and bottled drink producer and thus, it is the bestselling brand name
over there (Yeu and et.al., 2012). However, in increasing the scope of business operations,
its relationship with the suppliers plays a significant role.
 Competition – In the segment of manufacturing and providing non alcoholic drinks,
completion is very high and thus, AQC is having lots of competitors. Especially, the new
entrants in the same industry are posing biggest threat for the firm. Further, soft drink
segment is also the one that is creating indirect but subsequent market competition (Jahdi
and Acikdilli, 2009).
 Collaborators – AQC uses well planned strategies in order to grow and develop its
business. The most commonly used strategies are strategic alliance and licensing which
put a huge impact on the domestic as well as international market of the firm. AQC is in
partnership with the farmers who are the direct suppliers (Aaker, 2009). Apart from that,
subsidized support from government also plays an important role in the business growth
of AQC.
 Context – Organization is well aware that in order to run business successfully and in a
smooth manner, maintaining good relations with government authorities is necessary.
Business prospect of AQC is widely challenging and volatile due to the reason that final
products of company are agriculture based (Arslan and Altuna, 2010). Further, innovative
marketing measures and strategies used by company are playing a vital role in
influencing the consumers of different commercial segments as well.
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External analysis
Growth of Atlantic Quench Cranberries gets highly affected through external business
factors which are not controllable by the business unit and impacts the growth strategies AQC.
For the external analysis of firm, model of Pestle analysis is being used in which various factors
are involved. These factors are explained as below:
 Political – These factors include different democracy, rules and regulations imposed by
distinct political parties of all nations in which AQC is operating (Delassus and Descotes,
2012). They affect the operations of organization as political conditions of all countries
are different according to which firm needs to run its business.
 Economical – It includes factors like stagflation, inflation and recession, etc. which put
positive as well as negative effects on the functioning of AQC. For example, rise in the
prices of juice will influence the purchasing behavior of customers (Franzen and
Moriarty, 2008). On the other hand, if there will be financial breakdown in the economy,
company may have to face the issue of reduced price of shares.
 Social – Social factors directly affects the relationship between company and its
customers. These factors affect the buying behavior of consumers. In the present
scenario, social habits of people keep on changing with respect to food and beverages as
their tastes and preferences are changing day by day. Thus, company regularly makes
modification in the flavor of juices (Gök and Hacioglu, 2010).
 Technological – With the increasing level of competition, technology keeps on changing
as to sustain business, it is important for firms to remain updated with latest techniques.
Thus, AQC has adopted the concepts of e-commerce and e-shopping with the help of
which, company has brought many changes that proved to be successful in increasing its
growth rate.
 Legal – For FMCG industry, the legal norms, rules and regulations are quite strict
because of which it is necessary for the firms operating in this sector to follow all rules so
as to protect them from any kind of legal obligation (Cheung and Prendergast, 2006).
Therefore, AQC is offering products and services with high quality.
 Environmental – Atlantic Quench Cranberries needs to ensure that they are fulfilling CSR
(corporate social responsibilities) under which protection of environment also comes in
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order to stay in the market in the long run. Presently, this sector is facing the major issue
of carbon footprints (Cook, 2007).
Summarize
The above made internal and external analysis can be summarized by using the
application of SWOT analysis which is explained as below:
STRENGTHS
 Renowned brand in the US market.
 Bestselling brand name for juices and
bottled drinks.
 High rate of sales growth and
development (Lilien, Rangaswamy
and Bruyn, 2013).
 Effective means of backward
integration.
 Advanced marketing strategies.
WEAKNESSES
 Seasonal variance is there which affects
the operations of firm.
 Cost of production is high.
 Supply forecast is dependent on
climatic condition.
 Decrease in sales of firm’s major
products, cranberry can adversely
affect the entire market sales
(Miletsky, 2009).
OPPORTUNITIES
 Opportunities to grow in international
markets.
 Changing preferences for healthy food
products make AQC able to earn higher
profits.
 New product concept increases the
growth of business (Brooks and
Simkin, 2012).
THREATS
 High competition from brand names
like Pepsico and Coca-Cola.
 Dependency of operations on climatic
conditions.
 Availability of raw material decides the
production capacity.
 Huge takeovers in retail sector.
The above analysis says that AQC has developed a well structured working system by
which it is surviving in the increasing market competition with having an effectual control over
business operations. Apart from that, it has been assessed that company is growing effectually
with generating high demand in the market through healthy food concept (Culliton, 2008).
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Selection of strategy
Situation analysis plays a crucial role in identifying the market position of business along
with assessing the factors by which overall organizational development can be done. Strategic
business analysis of Atlantic Quench Cranberries will prove to very helpful in identifying a
strategic gap between current business operations and the future growth strategies of business
(Enquist, Edvardsson and Sebhatu, 2007). For the purpose of planning and developing effective
growth measures so that SMART objectives can be attained, AQC will analyze the growth
opportunities which it can grab.
SMART Objectives
SMART objectives stand for specific; measurable; achievable; realistic and time bound
goals that firm needs to achieve. For AQC, these are:
AXIS OBJECTIVES ANALYSIS
Specific Increasing sales in the market
of Europe.
AQC will achieve this
objective by focusing on the
needs of buyers and by using
effective market entry
strategy.
Measurable Enhancing the sales of AQC
by 20% till the year 2017.
Firm has presently gained
growth rate of 7% and will
make efforts to increase the
sales by 35% by making some
variation in the products
(Ettouzani, Yates and Mena,
2012).
Achievable To focus on the new segment
of youngsters.
AQC will take segment of
youngsters into consideration
to attain higher growth
prospects.
Realistic To do effective promotion and
product development.
Different promotional and
marketing strategies will be
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used to manage an effective
balance in between costs and
benefits to launch a new
product in the market
(Kalafatis, 2012).
Time Bound Enhancing global market
share by 15% within 3 years.
To attain this goal, company
will create a flagship in
European market by the end of
3 years.
Growth strategy for business
As per the above developed objectives, Atlantic Quench Cranberries has to plan growth
strategies in an effectual manner so that these objectives can be attained. By the use of
appropriate measures, business can gain overall growth (Lee and Carter, 2011). Among all
measures and strategies, Ansoff’s matrix for AQC will prove to be the best as it the planning tool
that helps a business to determine its product and market growths strategy which is discussed in
the following ways:
Figure 1: Ansoff’s Matrix
(Source: Ansoff’s Matrix, 2016)
Market penetration – This strategy plays a crucial role in making the market grow by
helping the firm in assessing the current growth opportunities. Thus, it proves to be highly
effective in increasing the sales of current products in the current market. In UK, AQC is earning
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higher profits through effective sales and established a well developed market share over there.
For the purpose of growing this market, company can use appropriate promotional tools and
starteg8ies like sales promotion, collaboration, etc (Ahmeti, 2015). These strategies would play a
significant role in increasing the market demand for products and services as well as in making
non users the users of products of AQC.
Market development – This strategy focuses on increasing the market demand by
enhancing the sales of product in the new market. In case of AQC, firm will strengthen its
market share by getting entered into new and potential markets of Europe. Here, company has
the opportunity to grow in markets like Germany, Italy and Paris (Allyson Dooley, Jones and
Iverson, 2012). Thus, to target these nations, AQC will use market entry methods like
franchising and strategic alliance to attain the set targets of sales and growth.
Product development – Under this strategy, new products are developed for the existing
customers in order to increase the sales. This strategy would prove to be highly effective for
AQC for the purpose of meeting expectations and changing needs of consumers by offering them
the effective range of products and services in the market (Yan, 2012).
Diversification – It refers to new development of organizational unit which is the most
risky and ineffective measure of growing and developing business. It is generally done when a
unit of business is not making any profits and leading to loss. Thus, AQC will not adopt this
strategy as presently, it is not having the need of adopting this strategy (Jahdi and Acikdilli,
2009). Company is earning attractive profits and as this strategy may risk the growth and its
financial feasibility, it would not use this.
Analyzing the marketing mix
Marketing mix for the marketing plan of Atlantic Quench Cranberries is explained below
in order to understand their impact on the organizational growth:
Marketing mix of AQC
Product – Company will put due emphasis on attaining high market share in the market
of Europe. For that purpose, it will manufacture the products and services in accordance with the
tastes and demand of customers over there. It will offer effective range of products to the target
market as well as will emphasize on product packaging in order to make the product attractive
and to increase its competitiveness (Aaker, 2009). AQC will offer the market with a new range
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of organic and healthy products by which a differential brand image can be built. All changes
will be made by te firm as per the tastes and preferences of customers.
Place – In UK market, AQC would make efforts to become the market leader and thus, it
will increase the availability of products, that is, fruit juice and bottled drinks in the new market.
Along with that, it will make the products available at the places where customers can easily
reach and from where maximum distribution can be done (Arslan and Altuna, 2010). For that
purpose, AQC will adopt intensive distribution and selective distribution strategy so that sales
can be increased in the chosen market (Bhasin, 2012).
Price – For AQC, European market is the one from where company can earn higher
profits by enhancing the demand and sales in this segment. However, for that price of the
products will play a significant role. Thus, in order to keep a competitive position in the market,
adopting competitive pricing measures is important for the firm (Delassus and Descotes, 2012).
It will help the firm in surviving instead of having intense competition from Tesco, M&S,
Sainsbury, etc. Therefore, for organic health drink segment, company will use premium pricing
strategy.
Promotion – Promoting products in an effective way is necessary to make a product
successful in the market. AQC will use aggressive promotion in which strategies like sales
promotion, advertisement and public relations will be used by the firm to make the business
grow and develop (Franzen and Moriarty, 2008).
Brief of three year marketing plan for the fruit juice of AQC is given as under:
Year\Marketing
mix elements
Year 1 Year 2 Year 3
Product Fruit juices will be
introduced in the
market with two
flavours that is of litchi
and strawberry.
After that, other
flavours like mango,
apple and mixed fruit
will be offered in the
target market.
Finally, in the third year,
there will be two
categories provided in the
market of all fruit juices
that is with and without
sugar (Gök and Hacioglu,
2010).
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Price At first low prices will
be changed for the
given product. Hence,
in this regard price
penetration tactic will
be employed.
Competitive pricing
tactic will be used by
the firm
Finally, premium pricing
strategy will be used by
AQC.
Place At company’s retail
stores of AQC,
products will be
distributed.
Retail store of firm will
be used by the
organization to sell the
products (Cheung and
Prendergast, 2006).
Finally, in the given
phase the product will be
sold through both retail
store and online means
such as company website.
Promotion Discount pricing,
combine selling and
enhancing product
usage as promotional
techniques will be used
(Cook, 2007).
After that, through
digital, online and print
media advertisement
will be used.
Finally, through brand
endorsement, product
will be promoted.
Segmentation – On the basis of demographic, behavioral and psychographic
segmentation, market for the new product development of AQC will be divided where major
focus will be given on youngsters with analyzing their habits and trends of the current market
(Kotler, 2010).
Targeting – According to the market needs and demands, company will adopt
differentiated targeting strategy where it will focus on generating sales from young age group.
However, when healthy drink will be launched in the market, focus of firm will shift on health
conscious and old age people (Kolb, 2013). For the duration of 18 months, AQC will adopt
differentiated targeting strategy and then, for the next 18 months, firm will focus on
undifferentiated targeting measures.
Positioning – Through effective positioning of the products, sales as well as brand image
of AQC will be improved. Organization will position its product in the new market as a quality
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ascertained product in order to create a revolutionary demand within market along with
increasing its sales as well as demand (Bhasin, 2010).
Implementation and control
In order to implement the marketing plan successfully, AQC is needed to evaluate the
results which it has gained out of the process within stipulated time period. For assessing the
outcomes, company must use the methods like:
Comparing results with the set benchmarks – With the help of this method, AQC can
check whether the results have been achieved in the manner they were desired to or not and
whether the business performance has attained the set benchmarks or not (Lilien, Rangaswamy
and Bruyn, 2013). If not, firm will be required to take corrective actions in order to attain the
results in pre-determined manner.
Analyzing timely objectives – Analysis of business objectives on regular basis is very
important for organization to analyze strategic planning gap. The review of target achievement
on quarterly basis will prove to be highly effective for AQC in order to attain the set targets on
time (Miletsky, 2009).
Developing regular review – Making review of individual contribution of the sales team
on regular basis will help AQC to gain enhance business opportunities in the new segment as
their efforts will lead efficiency in the operations. In order to make the product successful and to
earn higher profits, company will regularly review the sales of every geographic segment so that
market can be analyzed with its highest potential (Brooks and Simkin, 2012).
CONCLUSION
From the above report, it can be concluded there are many effective and well developed
marketing measures by which growth and development of business units can be attained. The
case analysis of AQC helped in understanding various available marketing strategies by which
business can sustain and survive in the long run. Apart from that, with the help of development
of marketing plan, theoretical knowledge within business perspective can be understood from the
report (Lee and Carter, 2011). Also, present study helped in assessing individual growth aspects
that can make a business like AQC successful in the market with gaining high goodwill.
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