Principles of Marketing Management Report

This report analyzes the principles of marketing management using Atlantic Quench Cranberries Inc. (AQC) as a case study. It covers macro and micro environmental analysis (PESTLE and SWOT), market orientation, segmentation, targeting, buying behavior, positioning, product development, distribution, pricing, and promotion. The report details AQC's strategies, including competitive pricing and intensive distribution, and its focus on health-conscious consumers and children. It highlights the importance of understanding customer needs and adapting to market changes for sustained success. The report concludes that effective marketing principles are crucial for organizational success and emphasizes the need for thorough market research.

Principles of Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Analysis of macro environment .............................................................................................1
2. Analysis of micro environment ..............................................................................................2
3. Market orientation ..................................................................................................................3
4. Segmentation...........................................................................................................................4
5. Targeting ................................................................................................................................5
6. Buying behaviour ...................................................................................................................5
7. Positioning ..............................................................................................................................6
8. Product development ..............................................................................................................6
9. Distribution ............................................................................................................................7
10. Pricing ..................................................................................................................................7
11. Promotion .............................................................................................................................8
12. Elements of marketing mix ..................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In present time, marketing is considered as a communication method which helps
organisations to connect with customers more effectively. The main of organisation to use the
marketing process is to increase the awareness among customers about the company and its all
product range. For this purpose, various types of marketing tools and techniques are present
which also helps in attaining the goals and objectives of company. The marketing also helps the
company in order to evaluate the customers demand and meet them in efficient way. The present
research report is based on the principles of marketing. In order to understand its concept,
Atlantic Quench Cranberries Inc. (AQC) is considered as per the given case study. The cited firm
is agricultural cooperative firm which is US based. In both UK & US, it is considered a best
selling brand name in respect to both canned and bottled juices categories. The firm was formed
by three growers of cranberry from New Jersey and Massachusetts. The report defines the firm's
environment, STP (segmentation, targeting and positioning), distribution and elements of
marketing mix.
1. Analysis of macro environment
With the purpose of analysing the macro environment of AQC, PESTLE analysis tool is
used. The factors of external environment affects the business practices and operations of firm.
The factors are described below such as:
Political- The political factor gives the huge impact on the company because changes in
government law and policies affects its operations and practices. The adverse type changes in
policy may decline the sales revenue of cited firm.
Economical- The economic factors also gives the impact on firm's operations because changes in
tax rates, exchanges rates, inflation, recession factor and economic growth has the great impact
on the business. The changes in all these factors may increase or decrease the company's cost and
productivity (Jobber and Ellis-Chadwick, 2012).
Social- At the time of product production, cited firm requires to develop the juices according to
the customer's taste, preferences and buying patterns. This factor focus on few elements such as
customer's lifestyle, buying behaviour, income and attitude etc. The changes in all these factors
affects the company's sales.
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Technological- The advancement of technology also has a great impact on the cited firm's
business operations. By adopting the new and update technology at workplace, cited firm can
offer effective and better services to their consumers.
Legal- In order to run the business operations in legal manner then cited firm requires to follow
the rules and regulation which are created by government. In this, laws are related to consumers
and employee safety and protection etc. (Atlantic Quench Cranberries Inc. 2014).
Environmental- In order to develop the juice products, cited firm requires to focus on the
climate conditions and weather or any type of natural hazard condition. In this, AQC requires to
focus on the factor so that products does not get affected.
2. Analysis of micro environment
For the analysis of micro environment, SWOT analysis tool is considered such as:
SWOT analysis-
Strength
North America's leading producer of bottled
and canned juices and drinks.
Uses natural ingredients.
Weakness
AQC is loosing its market share in many major
markets.
Opportunities
Company can produce healthy snack bars.
Expand their business globally.
Threats
Increasing competition in market place.
The analysis of AQC's stakeholders such as:
Customers: At the time of product production in respect to juices and drinks, cited firm always
focus and consider the requirements of customers. In order to meet their expectations, cited firm
always provide the high quality services and products to customers. They are very important
stakeholder of company because entire product development is based on their requirements and
needs (Hastings and Angus, 2013).
Government: They have interest in business operation and also have the power to make the
changes in policies and laws. In this context, they are also considered as an important
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stakeholder. To meet the expectations of government, cited firm always follow all rules, pay
taxes on time and provides the truthful reporting.
Owners: The AQC firm is owned by the near about 630 cranberry armers and 46 grapefruit
farmers.
Suppliers: These stakeholders helps the AQC to supply the products according to the demand of
customers. Cited firm creates a good relationship with suppliers so that they can get the material
on time. For this, cited firm also provides the payment at the time of product delivery.
3. Market orientation
The term market orientation is type of process which helps the AQC organisation to
identify and understand the customers out of sight requirements and expectations in effective
manner. Through this, cited firm consider the requirements at the time of product production
with the motive of increment in customer's satisfaction level. In this context, the marketing
orientation concept involves the four factors which are described below such as:
Product orientation- In order to attract the large number of customers, cited firm requires to
offer their juice and drinks products at high quality to customers. As per this factor, by increasing
the quality of products more customers will automatically move towards it (Leenders, 2001).
Market orientation- this factor influence the AQC company to consider and put the customers as
a heart of firm. It mainly focuses and consider the requirements and needs of customers as a first
priority.
Sales orientation- This factor mainly focus on the sell the company's product according to the
demand in market. It does not focus on the quality of product. In this, without relevant research
and survey, according to the own thinking and measurement, organisation produces the products
(Patterson and Wirtz, 2014).
Production orientation- With the help influence the company to do the mass production of
products. According to this factor, cited firm understand the demand and on that basis supply it
to customers. It also describes that by doing the mass production of products, more profit can be
earned and large number of customers can be attracted.
AQC's objectives
 Increase the sales by 15% at the end of 2017.
 To attract large number of customer by improving the quality.
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4. Segmentation
With the help of segmentation process criteria, AQC is able to target the specific
customers. With the help of this process, all customers are categorised in small subsets. The
customers of single subset holds the customers who share the same characteristics and interest.
The effective segmentation of customers makes the targeting and distribution process more easy.
In order to evaluate the target customers, cited firm requites to make their market research more
effectively and accurately. After evaluating the appropriate segment of customer, AQC requires
to identify their requirements and expectation in respect to product. By considering the
requirements and needs of segmented customers, cited firm produces the drinks and juices. The
segmentation criteria is based in few factors such as:
Demographic segmentation- In this factor, at the time of segmentation process few elements are
considered such as customer's family cycle, gender, income and age.
Psycho graphic segmentation- As per the customers interest, life style choices, attitude and
personality in respect to company's product drinks and juices (Page, 2014).
Geographic segmentation- In order to carry out the segmentation process, cited firm can focus
on few specific areas like nation or state.
In respect to Atlantic Quench Cranberries, it offers the juices and drinks. IN UK and US,
many customers are become loyal in respect to these products because more customers are
attracted and satisfy with its quality. Along with the production of juice & drinks, cited firm also
offers the dried cranberries to customers under the 'Crantanas' brand name. In respect to juice
products, cited firm mainly focus on health conscious people and children. In respect to this,
cited firm produces the healthy drinks which are in low calorie. The low calorie drinks are also
present in various types of tastes such as cranberry & mango, cranberry & raspberry and
cranberry & black current (Hallén and Axelsson, 2009). With the motive of expanding the
business operations, cited firm also sell their wide range products in entire UK. In respect to
company's product in the segmentation process customer's life style factor is considered as per
the psycho graphic segmentation. With the purpose of attracting mass customers, cited firm also
produces the low calorie cranberry drinks. The market research describes that population of 15-
24 years old people are the heaviest customers, it is done by using demographic segmentation.
Cited firm also target the sports men and women for healthy drink products.
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5. Targeting
With the help of effective targeting strategy, AQC is able to attain its strategic objectives
and goals. Through the targeting process, AQC identifies that to whom they wish to sell their
services and products. In this step, cited firm selects the appropriate segment in which
requirements of consumers are fulfilled by company's product. In selecting the appropriate target
customers, few factors are required to be considered such as:
1st Buying behaviour- Customer's buying preferences and patterns are analysed. With the help of
buying behaviour, cited firm will be able to explore the customer's traits in respect to purchasing.
2nd Market size- This factor is very important because it is necessarily required for cited firm to
explore the exact and accurate size of market (Coiacetto, 2007).
3rd Life style- In market various types of customers are present and they have the diverse
expectations and preferences. Some customers are more health conscious like youngsters and
sports people. In this some parents also gives the juice drinks on regular bass to their children to
make them fit and healthy.
With the help of targeting the customers, cited firm will be able to increase their
productivity and sales. With the motive of meeting the customer's expectation, cited firm will
motivate to provide high quality juices and drinks. As per the case study, it is evaluated that
AQC mainly targets the customers in the age group of 40-55 and 15-24 years old.
6. Buying behaviour
Basically buying behaviour of customers describes their reason that for what purpose and
benefit they are purchasing. In this respect, marketing strategy of company also get affected by
the changes in customer's buying behaviour. AQC requires to focus and consider the demand of
customers while producing the juices and drinks. The customer's buying behaviour also represent
their response towards company's product and strategies related to marketing. By conducting the
research to identify the buying pattern of consumers, cited company will be able to produce the
drinks with better quality (Hardie and Putsis , 2005). In addition to this, to attract the children
customers, cited firm also focus on the innovative packaging of the products. The creative
packaging sty;le also attracts the customers. For the convenience of customers, AQC also launch
the product in slimline cans which also get more popular. It is explored that buying pattern of
customers also influenced by few factors such as:
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Cultural- The religion and nationality factor of customers also gives the huge impact on
customers buying.
Social- It focus on customer's family status, surrounding people and role mode;ls which
influence them to but the company's product (Francis and Wong, 2004).
Personal- The important factor which are related to customer such as age, lifestyle and income
etc. which mainly influence the customers to use the product.
Psychological- This factor describes the attitude, interest and motivation level of customers
towards the drinks and juices.
7. Positioning
In the marketing plan, it plays and important role because through this AQC is able to
describes its company's important, benefits and specific features in front of entire market and
customer. The main aim of positioning process is make the company's image in customers mind
more effective and unique. For this purpose, few points are specially considered like appropriate
communication mediums, competitive pressure, accurate crafted message and customers
requirements. In respect to this process, cited firm consider the four elements such as product,
place, price and promotion (Harris, 2006). Along with this, to compete the competitors and
attract the large number of customers, cited firm also offers the white cranberry juice, juice
boxes and low calorie product range etc. Cited firm also offers the mix flavoured juices, energy
drink 'Cranzeal' and fired fruit snacks etc. In addition to this, for the effective promotion of
products, cited firm also combines the health benefit point, humour and heritage of cranberry. It
was used in their current promotions which takes place in US. AQC uses the promotional
campaign as their promotion tool. In order to attract large number of customers, cited firm also
describes the health benefits of cranberry in their all advertisement messages (Olsen, 2009). By
creating the positive image in front of customers, cited firm can gain the benefits form it.
8. Product development
The case defines that in the success of AQC, new product development factor plays an
important role. In order to gain the competitive advantage, cited firm requires to focus on
freshness and quality of juices and other products. The product development will help the
company to sustain and increase their market position. Through the effective competitive
advantage, cited firm will be able to maximize their profit and sales. Further, AQC focus on few
strategies such as cost leadership, differentiation and focus strategy. The case describes that in
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respect to product development concept, cited firm uses the differentiation strategy. As per this
strategy, cited firm started launches the dried fruit snack which were thrown away because they
are made from husks (Jain, 2014). In this context, cited company now re-infused it with the
juices which also becomes more popular among public. With the help of this strategy, AQC is
able to create a unique image which makes him different form the competitors. The case also
defines that at certain period, people of US became more health concious and rejects to use the
juices. For this change, AQC respond in terms to launching more light version calorie drinks.
9. Distribution
The distribution factor is necessarily required to be focused in marketing plan. With the
help of effective distribution channels and mediums, cited firm is able to make their products
more available to customers. With the help of distribution strategy, AQC is able to distribute the
products to customers and retailers. There are basically three types of strategies are present
which are related to distribution such as exclusive, intensive and selective (Loveband, 2004).
Form the given case, it is explored that AQC uses the distribution strategy which is intensive
type. It is also evaluated from the case that cited firm has a strong distribution strategy which
helps the company to dominant the market position. In order to cover the wider area in US and
UK, cited firm has the various types of distribution channels. Further, for the selling of products,
cited firm also contracts with supermarkets and Gerber (Wedel and Kamakura, 2012). With the
purpose of selling juices and drinks under AQC brand name in UK, cited firm also sign the
licensing agreement with the Gerber.
10. Pricing
In order to attract the customers towards the product, prices also plays and important role.
So, it is essentially required to AQC company to set the right prices of products. In this context,
pricing strategies are such as competitive, premium, fair and penetration strategy. According to
given case study it is evaluated that AQC uses the competitive pricing strategy. With the help of
this pricing, cited firm is able to gain the profit and boost the value of market share (Makens,
2006). The sales of juices is not limited to the seasons because in present time it is easy to
preserve the juices and raw material. In competitive market place, it cited company sets the
extremely or high prices then it gives a wrong message in front of customers and possibly they
will switch to other competitors. So, it is requires for cited firm to set the prices of products near
about the competitors prices. By setting the competitive prices of high quality products,
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customers will assume that they are getting the product as per the value for money (Ellis-
Chadwick, 2012). In the competitive prices they are getting the high quality and fresh juices
which makes them different form other competitors.
11. Promotion
With the help of effective promotional strategy, AQC is able to promote the brand name,
image and features of products in front of target customers. According to case it is explored that
industry related report describes that advertisement campaign of AQC is performing extremely
good in market. To promote the products, advertisements is given in magazines and television at
national level, so that large number of customers can be attracted. The aim of cited firm's
advertisement is to increase the awareness among customers about the healthy benefits of
cranberry fruits and its related juices and drinks. In addition to this, to encourage the customers
to purchase the products along with their promotional activities, attractive packaging options also
plays an important role. The attractive advertisement campaigns, its message related to health
and packaging options makes the customers more excited to use the products.
12. Elements of marketing mix
The business of AQC is running form last 80 years in successful manner. Among the
category of bottled and canned juice product, AQC is considered as a top brand name in UK and
US. In respect to AQC, marketing mix elements are such as:
Product Fruit juices and drinks are the main product of cited firm. In addition, firm
also launch the products related to non drink segment like dried cranberries
and juices are also present in various flavours like juice max, mix juice and
cranberry juice etc. Fir also launches healthy drinks in term of low calorie
product.
Price Due to perverseness of fruits and juices, prices are not set high because they
are not seasonable. In this, competitive price are set.
Place Distribution channels are present in entire country. To sell the products,
cited firm also make the contract with supermarkets and Gerber.
Promotion Through the attractive packaging and promotional campaigns.
Asvertise4ments messages describes the health benefits of cranberry juice.
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CONCLUSION
With the help of present research report it is articulated that for the success of every
organisation, principles of marketing plays an important role. It is also necessary for every
organisation to conduct the appropriate market research. For the betterment of the company, firm
requires to focus on prices, promotion, distribution, targeting and segmentation concept.
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