Principles and Role Of Marketing in Company Sucess
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Introduction to Marketing
In order to attain the goal of selling company's product to large number of customers, marketing tools plays an important role in this. The reason is marketing basically establishes the communication between organisation and customers. To evaluate and fulfil the demand and requirements of customers, there are used various kinds of marketing tools and activities. Principles of marketing involve various types of techniques, ideas and strategies that help the company to develop effective marketing operations and practices. The present report will help to understand the concept of principles of marketing and for this purpose, Atlantic Quench Cranberries Inc. (AQC) is considered provided with given case study. It has bestselling brand name in both bottled and canned juice category in US and UK. This research report involves the concept of marketing plan such as segmentation, targeting, positioning and promotional activities.
To analyse macro environment, analytical tool named as PESTLE is used:
Political- In this, adverse changes in government policies or inflation factor lead to decline in AQC's sales revenue.
Economical- Economic growth, exchange and, interest rates, monetary and fiscal policies give the impact and may leads to the rise and fall in company's cost.
Social- It involves factors like customer's attitude, income and lifestyle which motivates cited firm to provide healthy juices.
Technological- New changes in technology gives impact on business operations like; if competitors adopt the innovative product or service then, it affects the company's profitability by reducing the customer size (Wright and Dibb, 2015).
To analyse micro environment, stakeholders of cited firm are considered as:
Owners- AQC is owned by 46 grapefruit and 630 cranberry farmers.
Customers- Cited firm always focus on the customer's demands and buying preference. In order to attract large number of customers, company also uses innovative approaches in packaging.
Government- To run the business legally cited firm follows all laws, regulations and policies in effective manner (Larreche, 2005).
2. Marketing orientation
The term ‘market orientation’ focuses on the identification of hidden requirements and demands of consumers. The concept of marketing orientation basically focused on four factors and is described as follows:
Market orientation- This factor focuses on needs and requirements of target market and customers.
Product orientation - It focuses on product quality because; good quality products will increase the sales of company (Marketing-marketing orientation, 2012).
Sale orientation- It mainly focuses on selling of products rather than quality of products.
3. Segmentation criteria to target the market
In the process of segmentation, target customers are identified which shares the common attributes and characteristics.From the entire customer size, small segment or group is identified. Atlantic Quench Cranberries first identifies their target market and customers. After identification, requirements of that segment are evaluated. Further, cited firm produces the juices according to the requirements and expectation of products. ACQ is mainly specialized in bottled and canned juices and non juice drinks. On the basis of factors, consumers are segmented which are defined below as:
Geographic segmentation- At the time of segmentation, geographical area could be considered. It includes criteria such as state, nation or countries.
Demographic segmentation- Few variables are considered for segmenting the customers on the basis of this kind such as family cycle, age, income and gender etc.
Psycho graphic segmentation- It involves the variables such as life style, personality and attitude of customers towards the company's product (Malhotra, 2008).
Atlantic Quench Cranberries Inc. mainly produces the juices and drinks. These products are also able to attract large number of loyal customers of US and UK. In addition, cited firm also sells the dried cranberries under the brand name ‘Crantanas’. In this context, cited firm focuses on children and people who are health conscious. For this purpose, AQC includes low calorie fruit drinks in several tastes such as cranberry & black currant, cranberry & mango and cranberry & raspberry. In this, lifestyle variable of psycho graphic segmentation is considered by company and for business expansion, cited firm also sell their products in the UK. To attract large number of customers who are more conscious about their health and do not want to intake more calories, cited firm launches low calorie cranberry drinks. In this context, AQC also focuses on the sports men and women who want to quickly restore energy and fluids (Donovan and Henley, 2010).
The process of targeting includes the segmentation of market which describes that AQC wishes to sell its products to what type of customers. It also defines the aspects which are required to be focused by firm with respect to sales of their products and services. At this stage, company selects the appropriate segments of customers whose demands are matched with the benefits of company's product. In the choice of targeting the market segmentation, few factors are required to be focused and considered which have been stated below as:
Lifestyle- From various types of customers, there is a group who are more conscious about their health. They prefer or like to take fruit juices on daily basis for them as-well-as for their children. Same thing applies to both men and women who prefer to do the sports activities in regular basis (Melewar and Saunders, 2000).
Market size- It is very important to analyse the accurate size of entire market because; it will help to identify the target customers.
Buying behaviour- At the time of targeting the customers, their buying patterns and preferences are needed to be considered. With the help of this, cited firm will be able to target the consumers with specific traits.
The targeting process will help AQC to increase their sales, productivity and customer size. By focusing on specific demands of target customers, company will motivate to develop the products in effective manner to meet the expectation and needs (Siguaw and Simpson, 2015). In respect to AQC, company will try to offer fresh and quality juices and other products to customers. In this context, cited firm will mainly target the people who belong to age group of 15- 24 years and 40-55 years old. At the time of market evaluation, company also respond towards the demand by offering convenience juice to customers. It is mainly popular among the sports women and men.
5. Customer's buying behavior
The term buying behaviour defines the buying reason of customers such for what purpose customers are buying or why they are using the company's product. Th buying behaviour and preferences are affected by the marketing strategy of company. In this context, Atlantic Quench Cranberries Inc. have to focus on the support and demand of target customers. It is essentially required for cited firm to evaluate the buying behaviour of their consumers because it shows the buyer's reaction on the marketing strategy and products features (Thrassou and Yahiaoui, 2012). The buyers could be type of business, online or consumer buyers. With the help of buying behaviour related information, company will be able to produce the juices in more effective manner. Further, according to the demand and needs of customers, firm will supply the products to meet it. In order to attract the children and other customers, company also focuses on the packaging (Till and Nowak, 2000). To make the packaging attractive, AQC also uses the creative approach. The attractive packaging helps to increase the interest and appeal of company's several product range. To show the concern towards the environment, company packaged their products by using the recyclable cans, glass, plastic bottles and cartons. These things also become popular among the customers. The customers buying behaviour are mostly influenced by the four types of factors such as personal, social, psychological and cultural. These factors are defined below such as:
Personal- This factor includes the variable such as personality, age, life style and occupation of customers. These variables gives impact on the buying decisions of consumers (Vargas-Hernandez and Jimenez, 2015).
Social- This factor focus on family, status, role models and surrounding people.
Psychological- Variable such as motivation, attitude and interest are includes in this factor which affects and influence the customers to buy the product.
Cultural- The buying decision are also affected by the cultural factors which focus on religion and nationality.
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This is an important element of marketing plan because with the help of this process company decide the best communication method which are used to define the features and attributes of products in front of market and public. In this process few things are considered such as crafted message, available communication channels, customers needs and competitive pressure (Westwood, 2013). The main objective of positioning process is to take the clear and unique place in the mind of target customers. For this purpose, cited firm AQC uses focuses on four things such as product, price, place and promotion. Further, to attract the customers, cited firm also produces new products in market place such as juice boxes, low calorie cranberry drinks and white cranberry juice (Lilleker, 2013). In this context, company launches fried fruit snacks, convenience mix flavoured juices and energy juices and drinks “Cranzeal”. All these new products of company attracts also gain their trust. To convey the information and products features in front of public and market, cited firm AQC uses the advertisement tool such as promotional campaign. In this context, AQC combines the health benefits, humour and heritage of Cranberry in US promotions. To increase the sales of product, company defines the health benefits with the help of using creative advertising (Witkowski, 2010). With the help of simple and sincere advertisement option, company promoted their diet juice drinks in front of target customers who are more concious about their health and they mostly prefer the zero or low level calorie drinks.
7. Product development
With the help of effective product development process, cited firm is able to take the competitive advantage. For this purpose, it is essentially requited for Atlantic Quench Cranberries organisation to develop better quality fruit juices. With the help of sustainable competitive advantage, AQC could maintain and improve their position in market place. It is only possible when AQC provides the better quality products as compare to competitors and also charges the nominal prices (Wood, 2012). By offering the special features and benefits to customers, company could attract the large number of customers. So, it describes that competitive advantage mostly helps the organization in profit maximization and to develop the value for customers. To take the competitive advantage, focuses on the customers demands and expectations. At this stage cited firm focuses on strategies such as focus, cost leadership and differentiation (Paswan and Guzman, 2011). According to this strategy, AQC uses the differentiation strategies at the time of product development. With the help of this strategy, cited firm promotes the diet drinks in front of public. By implementing this strategy in product development process, AQC also focuses on the creative packaging designs and this method also attracts the many customers in targeted market place. With the help of differentiation strategy, cited firm is able to create a different image in front of competitors in market place. As per the given case study it is evaluated that costumers of US have become health concious and also rejects the juices and drinks. For the response of this demand manufacturer of US introduces the more light version of juices and drinks. For this purpose cited firm also have the opportunity to made the smoothies and pressed juices of cranberry and other fruits. In respect to future aspects, cited firm also implemented the long term strategic alliance option with coca-cola and offers the single serve cranberry juice products under the name of AQC (Sweet, 2010).
8. Distribution methods
At the time of market plan, distribution channels are essentially required to be considered. In this context, with the help of distribution channels, AQC makes their product available to all their customers. It is essentially required to be considered because the target customers are the end users of company's products such as juices, juice drinks, diet juices and dried fruit etc. The term distribution strategy basically defines the methods in which company will distribute its products. With the help of this strategy, cited firm distributes the products to retailers and consumers (Tapp and Spotswood, 2013). In this context, three types of distribution strategies are present such as selective, exclusive and intensive. As per the given case study, it is evaluated that cited firm uses the intensive type distribution strategy. The gives case defines that place or distribution of AQC is quite strong. It has dominant position in the market as such it has number of channels to cover the wide area in the country. AQC has also contracts with Gerber and other supermarkets for selling its all products. In this context, AQC signs the licensing agreement with Gerber to distribute the juices and juice drinks under the brand of AQC in UK. In UK, Gerber is also the largest supplier of branded ad private labelled fruit juices and juice drinks. Further, to sell the all products lines of company cited firm made three contracts with the largest group of super markets in UK (Wang and Pizam, 2011).
9. Pricing strategies
The pricing strategy helps the company to set accurate prices of company's product. For this purpose few pricing strategies are present such as penetration, competitive, premium and fair pricing. With the help of pricing strategy, AQC are able to identify the optimum prices of their product range. The prices of products also attract the customers towards the company. As per the give case study it is evaluated that AQC uses the competitive pricing strategy which helps the company to gain the market share and boost the sales. The cited firm provides a competitive price for its products to target customers in market. Its sales is not limited to seasons because it is possible to preserve the juices so price is not that high. AQC also provides discounts and offers on its products (Henley, Raffin and Caemmerer, 2011). As per the focusing on the competitors prices, AQC sets their prices because they set the high prices then customers will switch to competitors and substitute products. In contrast, if firm sets the low prices then customers will assume that quality and healthiness of juices and juice drinks are appropriate for them. With the help of this pricing strategy, AQC can gain the advantage by offering good quality products in competitive charges. This strategy also helps Atlantic Quench Corporation Inc. to increase their size of customers and productivity level (Allyson and Iverson, 2012).
10. Promotional activity
In market plan, promotional activities are considered to promote the brand name and image along with the features of products in front of public. From the given case it is also evaluated that report of industry indicates that company's advertising campaign is performing extremely well in the market with customers. This campaign was used on televisions and magazines at national level (Dibb, 2005). The main aim of this advertising campaign is to inform the public audience about the benefits of cranberry and its juices on health. AQC is not only known for its high nutrition value and quality of its juices but its packaging is also something which has been its highlighting feature. Its ad campaigns consists of humour, health benefits and heritage which excites people to try its products. It believes in good public relations and has planned publicity complains for the promotion of its products.
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Atlantic Quench Cranberries Inc. (AQC) is among the top brand names of juices and canned or bottled juice category. It has been in the business for more than 80 years and is the largest producer of juices in North America. The 4 p's of marketing for AQC are as follows :
The core product for AQC is the fruit juice that it produces but now it has introduced non- drink segment as well in the market. It has various types of flavours in juices like cranberry juice, mix juice, Juice max, etc. Its non drink segment consists of dried cranberries, sauces, conserve and low calorie drinks. The big advantage of having so many flavours and products is that it can target larger and wider population. AQC is also known for its quality and packaging of the product which makes the product more popular.
AQC provides a competitive price for its products. Its sales is not limited to seasons because it is possible to preserve the juices so price is not that high. AQC also provides discounts and offers on its products.
Place or distribution of AQC is quite strong. It has dominant position in the market as such it has number of channels to cover the wide area in the country. AQC has also contracts with Geber and other supermarkets for selling its all products (Niazi, 2012) .
AQC is not only known for its high nutrition value and quality of its juices but its packaging is also something which has been its highlighting feature. Its ad campaigns consists of humour, health benefits and heritage which excites people to try its products. It believes in good public relations and has planned publicity complains for the promotion of its products.
AQC has been a well known brand and its future is also bright. It has tried to focus on all aspects of the product. Even the packaging of the product is done with innovation. The company needs to be the first mover in the market as it has always been. The inclusion of other segments is also an attempt for the same
With the help of this it is articulated that marketing principles plays and important role in company's success. The research defines that every organisation has to entail the marketing tools such as segmentation, targeting and pricing etc. to attain objectives. By implementing the effective strategies, organization could enhance their customer size and sales. Further the marketing mix elements are also required to be considered.
Wright, A. and Dibb, S., 2015. Performing market segmentation: a performative perspective. Journal of Marketing Management. 31(1-2). pp.62-83.
Larreche, J. C., 2005. Marketing management: a strategic, decision-making approach. McGraw-Hill/Irwin.
Niazi, G.S.K. and et.al., 2012. Effective advertising and its influence on consumer buying behavior. Information management and business review. 4(3). pp.114-119.
Malhotra, N.K., 2008. Marketing research: An applied orientation. 5/e. Pearson Education India.
Donovan, R. and Henley, N., 2010. Principles and practice of social marketing: an international perspective. Cambridge University Press.
Melewar, T. and Saunders, J., 2000. Global corporate visual identity systems: using an extended marketing mix. European Journal of Marketing. 34(5/6). pp.538 – 550.
Siguaw, J.A. and Simpson, P.M., 2015. A marketing plan for marketing instruction: A satirical look at student comments. In Creating and Delivering Value in Marketing (pp. 129-133). Springer International Publishing.
Thrassou, A., Vrontis, D. and Yahiaoui, D., 2012. A preliminary strategic marketing framework for new product development. Journal of Transnational Management. 17(1). pp.21-44.
Till B. and Nowak, L., 2000. Toward effective use of cause-related marketing alliances. Journal of Product & Brand Management. 9(7). pp.472 – 484.
Vargas-Hernandez, J.G. and Jimenez, R.A., 2015. Personal Marketing Plan and Its Influence on Employability. Turkish Economic Review. 2(2). pp.104-110.
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