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Atlantic Quench Cranberries Inc.
Atlantic Quench Cranberries inc. is a co-operative in USA which produces cranberry segments in the shape of bottled and canned juices. Beside the juices it also produces dried cranberries which have a branded name as CRANTANAS. This Company was established about eighty years prior by three cranberry growers from New Jersey and Massachusetts. In 1974 the grape fruit growers also joined the co-operative and now 630 farmers of cranberry and 46 farmers of grape fruit are the co- sharers of the company.
Product
The Company has a strong hold in market for the last many years especially in USA and some part of market in UK. The company is planning to expand its operations worldwide and export juices in areas such as Asia and Africa as well. To develop more marketing areas worldwide, we should study regarding some suitable strategy. For this purpose we should thoroughly examine the most applicable and available strategies for the next year.
SWOT ANALYSIS
Strengths
1. Relationship with farmers
The organization works closely with the farmers. Once produced, Atlantic Quench gives the farmers highest possible price for all the crops that they grow , whereas the share to stockholders reflects the profits of Atlantic Quench brand. Even though most of the farmers are small scale famers and cultivate the crop in small quantity but their mutual productions stands for about 1/3 of the world’s cranberry harvest
2. Demand all over the world
There is high demand for Fruit juices all around the world. According to the Recent research the usage of juices is 2.25 billion cups per day in the world. (Eastman, 2005)
3. Strategic collaboration:
Long term Strategic alliances were implemented between Atlantic Quench and Coca-Cola and Coca-Cola North America markets in year 2007. Where Coca cola will bottle and distribute cranberry juices in the U.S. and Canada in the name of Atlantic Quench. The deal also highlights chances for the expansion of product lines and introducing new product innovations in future
4. Packaging
For packaging, the company has adopted innovative methods to increase the interests of customers in the product and reduces the waste. recyclable glass, cans, cartons or polyethylene terephthalate (PET2) plastic bottles are used to packaged the juices. These materials can be recycles and labeled easily
Weaknesses
1. Effect of financial volatility all over the World
These days the most severe problems we are facing is Volatility of Economic conditions and it is greatly influencing the Fruit and juice industry as well
2. Price volatility;
Because of the instability of financial conditions of world, the price of raw material isn’t stable.
3. Poor farmer financing
As mentioned above, the farmers who harvest the crop are small scale farmers. Majority of these farmers are so poor to afford one time meal. Because of above stated reasons many farmers abondone their lands for money or chose to cultivate other crops . (Chiputwa, Spielman and Qaim, 2015)
4. Organizational Issues:
As the incident highlighted in year 2000, where Overproduction caused the fall in price of raw material from over $60/ barrel to r $20/barrel , the organization took action to counter the unstable market condition by reducing its marketing finances.Atlantic quench cranberries inc. Marketing report.In addition, the organization rewarded the farmers with $12 a barrel whereas $18-a-barrell was a market price. This situation resulted in conflict between the management and the farmers. The farmers voted four successive Chief Executive Officers (CEOs) in a short time period between 2000 and 2003 by using their powers as shareholders of the organization . Which resulted in change in management four times in short span of time . This effect the efficiency of the organization
Opportunities
1. Demand in Asia
The demand for foreign food and food technology is expected to grow in Asai. Some prominent opportunities the company can pursue include exotic fruits such as blueberries and cranberries; niche dairy and cheese products; export of quality fruits (to the restaurant industry; and technologies for supply chain management, food storage and food processing.
2. Development of New Product
The creativity of organization for the development of new productsis the major factors that contributes to the success of the organization. Variety of the Products which includes chocolate-covered Crantanas, mixed flavored juices and an energy drink such as Cranzeal. There is no other company that provides such great range of products
3. Lifestyle Trends
There is an increase in overall Demand for fruit juice, fruit drinks and health drinks all over the world as a result of a increased consciousness for healthy lifestyle and the emphasize on taking a range of fruit and vegetables daily. Atlantic quench cranberries inc. Marketing report.The increase in market share for the juice sector is the result of declining in popularity of carbonated sector , which has a poorer image among consumers
4. Impulse Buying
Along with the positive image and a product for healthy life, , Atlantic Quench is also well placed to respond to the increased demand in the market for convenience drinks.
Threats
1. Private labels
Super markets own private labels dominate the fruit juice sector heavily. These brands are often regarded as sugar free and therefore a healthier option to juice drinks.
2. Vegetable juices:
The increase consciousness about the fitness plays important role to the factors that increased demand for vegetable juice sector. While vegetable juices stands at 2.7% of the total juice and fruit segment but the trend is increasing . Furthermore attention towards healthy food, all over the world, has a pessimistic result on sales of juice
3. Other crops
Because of low availability of finances and unstable economic conditions many farmers tend to chose other crops order to get more money. In most of the cases these replacement crops include drugs like cocaine.
4. Depending on a political and economical stability;
The industry is greatly influenced by the Political and financial conditions of the world. The companies find it hard to earn high revenues because of volatile economic conditions and price volatility,
5. Lack of the training capacity development:
The lack of knowledge along with lack of training reduces the production capacity of farmers
6. Lack of credit
Because of the high interest and tough conditions Farmers are unable to get enough financial help in the times of crises.
Competitors:
In the segment of The Global Fruit and Vegetable juice the competition is very high and as compared to other segments of beverage industry. Consumer demand or healthily products is the main driver in the industry. Furthermore other main drivers include prevalent consumer trend and inclination for a juice. Consumer’s demands play an significant role in Product development and blends. In order to sustain and grow in the industry one has to understand the consumer needs and wants and seeks opportunities in the market against the challenges
U.S., Europe and Japan are the major markets for fruit and vegetable juice. Competitors like The Coca Cola Company, PepsiCo, Del Monte, Nestle and Welch’s dominate the Global fruit and juice market . Brand image and consumers taste flavor preference plays vital role in demand of the products. Furthermore many regional brands and local players also have major share in the regional markets.
Target Market:
Demographics:
Geographic’s
When formulating a marketing structure, we start with the largest segments and work our way down. For the sake of the campaign, the geographic markets we will be targeting are states with warm weather that allows for year-round outdoor activity. Due to the warmer temperatures, consumers will be seeking a healthy drink to quench their thirst while outside and a solution to make a fruity alcohol drink without all the fuss of a blender. Year round warm weather allows for year round targeting to the senses and emotions attributed to the weather.
Education
Following the warmer state geographic segmentation, our marketing efforts will be further refined based off of current educational status. More specifically, our target market is a student currently attending college. Maintaining a balanced diet is difficult college students. Additionally, not consuming the correct levels of fruits and vitamins contributes to these common unbalanced diets. To combat these issues, we will provide the daily-recommended amount of fruits to contribute to a healthy lifestyle without the hassle of buying multiple fruits. From a general perspective, we are targeting college students that maintain an active lifestyle, particularly those that enjoy partying
Marketing Strategy
In fact the marketing strategy serves as a fundamentally underpinning a marketing plan duly designed to meet the basic needs of a market and to reach up to the objectives of the market. Practically the objectives and plans are being tested for a measureable result. Usually a market strategy is developed for multi-years plan along with some specific action and tactical planning having full details of specific actions to be taken in the coming year. The time horizon is also to be covered by our marketing plan which should not vary the by the needs of industry, company or by the group of the users. However the time horizon may become shorter because of in some occurrence of changes in environmental situations. The marketing strategies are interactive and dynamic (Mullin, 2006). They may be partly planned and partly un planned. The strategy is also in need to consume some long-term views and have tools which could produce lifetime effect on the customers. Such models can be proved very powerful and helping in stimulating the effect of strategy towards acquisition cost or revenue per buyer as ell as churn rate. The marketing strategies involve precious and careful scanning of external and internal environments of the producing companies. Internal factor of environment includes the marketing mixed modeling and all strategic constraints along with analysis of performance. Whereas an external environmental factor includes target of marketing analysis, customer behavior analysis, competitor analysis and any evaluation of any element in respect of technical, cultural, political or legal effect which could have impact on the success of the product (LANCÔME , 2015). The main component for market is to keep often the market strategy in touch with the statement of overarching mission of the company. When a complete environmental scan is gained then some strategic plan may be developed for identification of established challenging goals, determination of optimal market mixing to get the requisite goals and full complete implementation. The final step in development in market strategy is to start a plan for monitoring the progress gained by particular product and to set some contingencies in case of arising any problem in implementation in plan. Marketing Mix Modeling is usually being used for helping in determination of budget of optimal marketing and to know that how would it allocated through marketing mix to get success in achieving all the strategic goals. Moreover these models are helpful to allocate the budget across the portfolios of various brands and for managing such brands for creation of their values (Euromonitor, 2012).
Online Marketing
As online marketing is concerned it requires internet marketing strategy. A comprehensive strategy of marketing can increase and launch more sales towards business. There is a requirement of knowledge about social media, e mail lists, search engine optimization, blogs, affiliation in markets and further more. Now we have to recognize these terms to use the internet marketing for CRANTANAS. Now for the purposes of this project we suppose that the business of Atlantic Quench Cranberries Inc. is not on the internet yet we should start to launch the products and business on E-marketing. We have to start research, to develop and establish a strategy for online marketing as well as for print media and further taking steps to develop internet strategy (Pandey, 2012).
Creation of Multi-faceted E marketing strategy.
In order to get increase in recognition of brands we have to launch several campaigns in market at once. After this we have to continue the following procedures in the coming weeks (McKinnon et al., 2008).
To create social media accounts and to assign some department to issue interesting material on every day basis and in order to attract the buyers, to constantly update the blogs and social media accounts.
To hire somebody to create or write SEO articles which mention popular slogans and words related with the qualities of the products and further make advices and tips for introduction of the product among the people. Such writer should also be helpful to the website to show up on the very first page of a search on internet and not scrimp for the investment purely made for the purposes of SEO articles.
• Collection of e –mail lists is the most important phenomena of the strategy. The persons who have got stores are collecting e-mail lists through all the days of a year and that may be useful for e-mail blasts. The e-mail lists are also available from market on payment which can be buoyed from the neighboring markets and marketing companies. we have to send an initial blast and then monthly blasts on regular basis for updating the customers regarding the products (White, 2010).
• To create videos of the users of the product to show how the people are responding to the products. We can launch these videos through our own website, or other famous websites like Face Book and Vimeo. (JIANG and LIU, 2012)
• To buy ads on various sites which are popular in the market for communication of videos, brands image and other information material of the products on banner ads. In this connection to develop the skill of crafting some designed ads a graphic designer can be hired (Berthellemy, 2013)
Development of Brand Name.
In the present marketing world the brand name and an image has got a most important value in strategy. Though the name of the products as CRANTANAS by Atlantic Quench Cranberries Inc has got a significant competitive position in the existing market but for the purposes of e-marketing it should get a recognizable position among the competitors there fore we have to reconsider the trade mark, website and business plan before launching the strategy (Aronson, 1994).
Study of Competitors.
The compotators must be studied from their websites though process of sale they have including their strategies regarding markets…
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