Principles of Marketing Management Report

This report provides a comprehensive analysis of Atlantic Quench Cranberries Inc. (AQC)'s marketing management. It begins by defining principles of marketing management and outlining AQC's strategic position, including its challenges, competitors, and market strategy. A SWOT analysis and Porter's Five Forces model are used to assess the internal and external factors impacting AQC. The report then delves into market segmentation, targeting, and positioning strategies employed by AQC. The marketing mix (product, place, price, promotion) is examined, followed by a discussion of AQC's marketing strategies and action plan based on Ansoff's matrix. The report concludes with recommendations for presenting and selling the new plan and planning for future growth.

PRINCIPLES OF
MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MARKETING PLAN......................................................................................................................1
Strategic position of Company....................................................................................................1
Competitive Environmental Analysis.........................................................................................3
Segmentation, targeting and Positioning.....................................................................................6
Marketing Mix............................................................................................................................7
Marketing Strategies and Action plan.........................................................................................8
Presenting and Selling the new plan...........................................................................................9
Planning for exotic future growth...............................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Principles of marketing management is defined as the science and art of selecting
appropriate market segment and establishing profitable and strong relationships with its core
customers. It includes analysing the exotic market opportunities, selecting the core target market,
designing fascinating marketing strategies, planning effective marketing programmes and finally
implementing and monitoring the marketing efforts for achieving the leading heights of success
in an impressive way (Agle, 2008). In today's era of hyper competition and globalisation, it has
become a growing phenomenon to significantly manage the marketing activities of an
organisation with a view to maintain winning edge and strong brand image in the eyes of its core
audience. With this context, the present report effectively highlights the vital aspects of
marketing management in Atlantic Quench Cranberries Inc (AQC). It is a leading agricultural
co-operative firm in UK and has become one of the largest producer of bottle juices and canned
by impressively and successfully planning its business activities. Also, the company has gained
the best selling brand name in the field of rendering juice drinks and canned in a significant way.
In this regard, the report deals with implementing an effective marketing plan for Atlantic
Quench in order to build its success in the tough trading business environment.
MARKETING PLAN
Strategic position of Company
AQC acquires a leading position in rendering agriculture related services in the UK
market. In 2013, the company took an initiative to sign a licensing agreement with Gerber with a
view to manufacture and market its juice drinks under its strong brand name across the globe.
The said organisation has impressively gained a tremendous market segment in UK. In addition,
it has also negotiated three most successful contracts with the three leading supermarket groups
within the UK economy in order to effectively sell its product lines (English and Kernek, 2011).
The company is best known for its fruit juices and offers varieties of exclusive products within
its brand name. Some of its highly satisfied products includes Cranberry mixed juice drinks,
Juice max – pure juice, Ggrab ‘n’ go – single serve. By introducing such an impressive and
customer oriented range of products, the company with no doubt is on the path to gain
monopolistic market share in the entire UK market economy.
Organisational challenges
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The company has not been in existence without its issues and challenges in the corporate
environment. The market for agricultural products is volatile and crucially depends on the
climatic and weather conditions of the said economy. It therefore becomes difficult for the AQC
to make clear predictions about harvesting its yields. In 2000, the company overproduced its
products which resulted in total downfall in the prices of its raw cranberries from around $60 a
barrel to $20. It therefore, responded to such an issue by reducing its overall marketing budget
and advertising measures. This gave rise in deteriorating the strong relationships between the
framers and the management of the company and as a result the farmers used their power as the
major shareholders of the company and voted out four CEOs between 2000 and 2003.
Core competitors
The company possess an extensive range of competition from across the world. The
hyper competitive market is establishing significant challenges and threats by providing
continuous entry of new rivalry firms in the international market. The soft drinks and healthy
juice market possess huge competition to AQC (Chaharbaghi and Lynch, 2010). The crucial
competitors of the said organisation broadly includes Pepsi, Coca-Cola along with major
supermarket brands such as Marks and Spencer, Tesco etc. Therefore, the cited firm have fierce
competition in the global economy.
Market strategy
AQC's innovation in the field of developing a new product in the existing market share
has led the company in successfully expanding its business growth and development in a
standard and appropriate manner. It has resulted as a crucial contributory factor towards the
company's success. After motivating the supermarket chain in the US economy to add value to
its juice aisles, AQC establishes juice boxes in an exclusive range which broadly includes white
cranberry juice and low calorie cranberry drinks. Apart from this, the other significant product
development includes ready-to-drink mixed flavoured juices, chocolate covered Crantanas along
with an energy juice drink namely Cranzeal (Aljukhadar and Senecal, 2011). With the help of
this product development strategy, the mention company seeks to enjoyed its turnover of around
$1.7 billion in 2007. This resulted the company to significantly double its profit margin and
increase its sales turnover in an impressive way.
Corporate strategic alliance
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The company maintains an exotic strategic alliance with Coca- Cola in order to develop
its competitive edge in the new international market economy. In 2007, AQC and Coca-Cola had
undertaken a long term strategic alliance where Coca- Cola launched its cranberry juices and
bottles in US and Canada under the strong brand name of AQC. This exotic strategic alliance
benefited the company in a tremendous and impressive manner (Fullerton and Merz, 2012). The
said organisation was clearly able to capture immense market share and develop strong brand
recognition in the eyes of its core customers.
Trends in market fluctuations and consumers tastes and preferences
UK citizens are more health conscious and lay their prior concern over maintaining a
healthy and efficient lifestyle. Considering this fact, there exist a growing demand for fruit
drinks, fruit juices along with health drinks in a significant manner. This has resulted the
company to impressively deliver such range of products in a healthy and safe manner which
matches the highest level of customer satisfaction in an effective way (Kotler, 2011). The juice
sector has rapidly grown its importance within the entire UK market as compared to the
carbonated sector which possess low brand image in the eyes of its core customers.
Buying patterns of consumers
By gaining strong and positive recognition from its merchandise, AQC is also well
organised to quickly and impressively respond to the growing needs and demands for diet and
healthy drinks within the international market. Since the UK consumers have the tendency to
maintain healthy lifestyle, they therefore prefer to make impulsive buying by choosing fruit juice
drinks as compared to soft and hard drinks like Pepsi, Coca-Cola etc. The juice drinks are also
preferred by the sports men and women in order to restore energy and fluids while following
their hard exercise (Chua and Banerjee, 2013). With this regard, the buying patterns of the
consumers reflects the impulsive purchasing behaviour of the crowd in a significant way.
Competitive Environmental Analysis
With a view to create an effective and successful marketing plan, it is important to clearly
evaluate the various internal and external factors that tends to create significant impact on the
overall functioning, performance and productivity of the business operations in the hyper
competitive corporate environment.
In this regard the company effectively makes use of performing SWOT analysis with a
view to evaluate its internal factors and uses Porter's Five Forces Industry Analysis to examine
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and control its overall external factors which causes a direct impact over the functioning of
business activities (Labbi and Berrospi, 2007).
SWOT Analysis
By using such an analysis for conducting organisational audit, the company is effectively
able to evaluate its overall strengths, weaknesses, opportunities and threats from external
environment. The following table helps to gain an overview of such analysis in a significant
way-
STRENGHTS
 Successfully operating its business for
the last 80 years, therefore posses a
strong and positive brand image.
 Maintains a competitive and winning
edge in the new international frontiers
by rendering healthy and impressive
food market of fruits and juices.
 Posses high level of customer trust and
loyalty.
 Rapid increase in demand for its fruit
products.
 High market share.
 Growing sales by exceeding 800
million litres sales per year.
 Effective implementation of backward
integration strategy.
WEAKNESSES
 The company deals with extensive
seasonal variances as it is an
agricultural cooperative which has its
core dependence upon the climatic and
weather conditions of the economy.
 Limited focus on product portfolio as
the vital sales takes place from
exclusive range of cranberry products.
 Lack of concentration on impressive
sales promotion and advertising
measures (Clegg, Kornberger and
Rhodes, 2007).
OPPORTUNITIES
 Growth and expansion opportunities as
the UK market posses increasing
demand for maintaining healthy and
diet lifestyle in a significant manner.
 Healthy fruit juice market segment.
 Large UK market for expansion,
THREATS
 High competitive trading market.
 Threat of climatic and weather
conditions.
 High take over contingency plan from
Tesco and Marks and Spencer.
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growth and development in various
dimensions of business operations.
 The strong implementation of new
product development strategy to
enhance and increase the consumer
interest in healthy fruit juices.
 Global and corporate growth and
expansion (Wilson, 2010).
 Positive and strong strategic alliance
with Coca- Cola and Pepsi.
 Agricultural set back.
By analysing its internal strengths and weaknesses in addition with its external
opportunities and threats, it can be effectively said that AQC incorporates a strong internal
management which has helped it to impressively achieve the leading heights of success in a
timely manner. The organisation is conducting its business operations from the last 80 years
which has benefited it to create strong goodwill, reputation, status along with positive brand
recognition in the eyes of its core customers. Moreover, its healthy products have helped it to
gain a strong sense of commitment, loyalty and trust from the audience which has tremendously
allowed the company to increase its overall market share and double its profit margin in a
significant way (Cohen, 2005). However, the corporation has faced the challenges of adverse
growth when the climatic conditions gets changed in a significant way. Apart from this, the
considerable gap between promotional and marketing measures have resulted in sudden downfall
of its overall sale turnover thereby reducing its market growth.
Therefore, the above mention factors can be strongly managed to overcome the sever
challenges and threats faced by the company while grabbing exotic opportunities and
maintaining its strength in an appropriate manner.
Porter's Five Forces Industry Analysis
Using this analysis, the mention company is effectively able to examine and evaluate the
various external factors like suppliers and buyers power, threat of substitution, threat of new
entry along with its core competitive rivalry which tends to create direct impact on the
productivity and performance of business operations in a significant way.
The Porter's Five Forces Industry Analysis of AQC is explained below-
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Threat of new entry (High)- The company possess high threat from the entry of new and
competitive firms in the market economy. It is because the companies do not require heavy
investment to establish an agricultural cooperative with varieties of healthy food services (Wood,
2013). Moreover, there exist low barriers to effective entry in the UK market economy because
of impressive EU policies within UK which renders restrictive trade policies in the trading
segment.
Suppliers power (Moderate)- AQC have moderate supplier power in a manner that it possess
exclusive range of it and is easily able to switch off to other supplier if its own supplier tends to
increase the price of its raw materials and products in a significant way.
Threat of substitution (Low)- The concerned organisation reveals to have low threat from its
substitute products. It is because of the fact that it has gained a high level of consumers trust and
loyalty which has enabled it to retain its existing customers and attract the eyes of new audience
in an impressive way.
Buyers power (low)- Because the company seeks to create a strong and positive brand
recognition in the global supermarket chain, it is effectively able to retain the best customers for
long term basis. As a result the buyers develops the tendency to purchase the healthy products
from the said company without substituting the product as the company maintains powerful
goodwill and status in the corporate economy.
Competitive rivalry (High)- The company possess high competitive rivalry as it operates its
business operations in a tough and hyper competitive trading environment (De George, 2011).
AQC have immense threat from its core competitors like Pepsi and Coca- Cola and therefore
implements such strategic measures which helps it to beat its line of competitors in a significant
way.
Segmentation, targeting and Positioning
In a manner to design and execute an effective marketing plan it becomes a
mandatory phenomenon that the company is first required to segment its crucial market and then
target its core customers in order to gain worldwide exposure in a systematic and timely manner.
With this regard the market segmentation of AQC is explained below-
 Geographic variables- On the basis of this dimension, the company segments its market
on the grounds of geographical locations, country size, city size, climatic conditions,
region etc (McDonald, 2007). This helps AQC to develop the product line on the basis of
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suitability and attainability of such product in the country in which it wishes to expand its
business.
 Demographic conditions- Here the company segregates it overall customers on the basis
of age, income, occupation and interest. A recent study has revealed the fact that the
crucial success for this company is highly contributed by the children and health
conscious customers. So the company with this context should segment its market in an
appropriate basis.
After successfully segmenting the market on the basis of geographical and demographic
variables the company then focuses on targeting its core customers to impressively expand its
market share. The current market in which the business operates its functioning includes UK
economy and the now the AQC is taking successful measures to expand its business across
various parts of countries significantly (Dibb, Simkin and Wilson, 2008).
Thereafter, the company focuses on implementing positioning strategy to beat its line of
core competitors thereby attaining strong brand recognition in the eyes of its target market. It
acts as one of the most important role in implementing effective strategic measures to gain global
exposure within the standard time frame. Here the company focuses to deliver healthy and
impressive products to its target customers in order to retain them and attract fresh audience with
a view to capture large market share.
Marketing Mix
The segmentation, targeting and positioning strategy has exclusively helped the company to
implement a successful market plan to gain exposure in the tough trading business environment.
With regard to this scenario, the marketing mix for AQC is explained as follows- Product-The company manufactures the products on the grounds of using natural fruits
and its abstracts in a sustainable way. This benefits it in acquiring the highest level of
customer satisfaction thereby increasing its overall sales turnover. Place- AQC possess a tremendous distribution network which helps it to respond to the
consumers need quickly and impressively thereby gaining huge market share in an exotic
way (Sadjadi, Ghazanfari. and Yousefli, 2010). Price-The organisation sets competitive price for its customers which benefits it to retain
its existing consumers and attracts new crowd of audience in a significant way.
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 Promotion- AQC lays its major concern over using attractive and fascinating sales
promotional tools along with impressive advertisements to enhance its sales and expand
its business across the UK frontiers.
Marketing Strategies and Action plan
In order to gain a winning edge in the new international market, the company is
significantly required to make effective and successful marketing strategies. To do so, it makes
use of Ansoff's matrix in an appropriate manner.
According to such strategical theory, the company possess four different options to
expand its market. These are- Product development- This is one of the most crucial strategy which is currently
undertaken by AQC. Implementing this strategy helps the company to develop wide
varieties of innovative products in its existing market (Allyson Dooley, Jones and
Iverson, 2012). This has benefited the organisation to maintain its competitive edge and
gain fascinating responses form its core customers. Market development- With the help of this strategy, the company tries to develop new
market by using its existing products effectively. Implementing such strategy will no
doubt help the organisation to expand its business but on the same time the company will
posses extensive threats from the changed preferences of its consumers. Market penetration- This is the most common strategy adopted by an organisation.
Using this strategy the company tends to expand its existing market with its existing
range of products. In today's fast changing environment, this strategy is not considered as
the best to gain an outstanding exposure.
 Diversification- This is the riskier strategy where the company focuses on expanding its
new market share by producing new and innovative products. Therefore, it is applied
only when the said corporation possess immense strength to beat its line of competitors in
a significant way.
By critically evaluating the above strategy, AQC implements the following plan of action in a
systematic way-
▪ Establishing effective promotional and marketing measures.
▪ New product development (Scholtens and Dam, 2007).
▪ Global and corporate expansion.
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Presenting and Selling the new plan
In order to present the plan in a successful way the management of AQC should
lay their concern over developing a strong marketing team which benefits it to fill the gap
between planning and execution of strategies effectively. Also, it should build impressive
marketing channels to accomplish the demands of its target markets and serving standard results
in timely manner (Relationship Between Strategic Planning & Marketing Strategies, 2015).
Apart from this, the top management should lay their overall concern over developing effective
demands within the market economy by impressively meeting the highest level of customer
satisfaction.
Planning for exotic future growth
AQC is crucially required to make effective planning for gaining exotic future growth in its
market share. To do so, it needs to set appropriate benchmarks which will help it to critically
analyse the gap between the past and present performance of the company in the corporate
economy. Furthermore, in order to achieve the short term targets, the company can also set a
time table which will benefit it in developing planned measures of targets and activities which is
needed to be achieved in an appropriate manner (Strategic Marketing Planning: Theory and
Practice1, 2006). Therefore, all such measures will help AQC to impressively and effectively
plan for its future growth prospects.
CONCLUSION
From the above report, it can be concluded that AQC Inc takes tremendous and effective
measures to manage its overall marketing strategies in an exotic way. The report helps to gain
insight understanding about the current position of the company in the corporate economy, the
environmental factors which creates significant impact on its functioning, the strategic measures
adopted by it to gain global exposure along with the plan to meet its future growth prospects in
an effective way.
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