Designing A 12 Month Marketing Plan For Grove Juice

SWOT Analysis

Identification of the competitive advantages and initiating the business strategies are the major considerations for the contemporary business organizations. This is due to the reason that competitive advantages will determine the potentiality and effectiveness of the organizations in face of their competitions. On the other hand, it is also important for the business organization to determine their target segments and initiate strategies accordingly (Saeidi et al., 2015). These strategies will include the marketing mix elements that will help the organizations in targeting the customers according to the current market trends and preference pattern. Thus, in order to have an ideal marketing plan, it is important to determine all these factors effectively. Initiation of the marketing plan is more important for the small and medium size organizations due to the reason that it will help them to enhance their business further (Urbancova, 2013).

Grove juice is one of the leading names in the beverage sector of Australia. Their products are Australian owned and grown. They are founded in 1969 in Brisbane as a home delivery business of fruit juice. In the further stage, they started the larger operation and open new manufacturing facility in Warwick also started to export to the foreign markets (grovejuice.com.au/, 2018). Currently, they are one of the best known juice brands in the Australian region. However, with the increase in the competition in the beverage industry and inflow of the global firms, it is becoming more important for them to design a 12 month marketing plan to enhance their business processes.

This report will design a 12 month marketing plan for Grove juice by including the SWOT analysis to determine their potential opportunities. In addition, different models and frameworks will be used in analyzing the identified opportunities. The competitive advantages will be identified and will align with the business growth strategies. This report will also identify the target market segments and initiate strategies accordingly. The marketing mix elements will be recommended along with the budget and implementation plan for the marketing plan.

One of the major opportunities identified for Grove juice is the customer preference pattern towards the fruit juices. It is reported that more customers are opting for fruit juice as the healthier alternative over the carbonated drinks. Thus, the business opportunities for Grove juice are increasing with time (Gibson, Rosen & Stucker, 2015). On the other hand it is also identified that growth strategies including enhancing the product portfolio and market presence will also help Grove juice to cater to larger segments of customers. Grove juice is having expertise in producing juices of different flavors and thus it will not be difficult for them to add some more flavors. In addition, the existing facilities can be used for producing the new flavors due to the reason that elements for producing juice will remain same (Mueller & Shepherd, 2016).

Source: Created by the author

From the above analysis, it is identified that Grove juice should focus on their Grove signature and classic brands in enhancing their future business operation. According to the resource based view model, the major resources for Grove juice are the financial capability, which they gained from their years of operation, own farming land that helps them to have the top quality fruits round the year and processing technologies (Lin & Wu, 2014). Among these the productivity and climatic factors of their farming land cannot be imitated by the competitors. Thus, producing new fruit flavors in their farming and will further help them to leverage on their existing facilities in introducing new products in the market and cater to larger customer segments from new markets.

Target Market Segments

It is important to identify the competitive advantages for Grove juice based on their identified opportunities. In this case, the porter generic strategy model will be used in determining the strategic fit of the identified opportunities with the overall business plan. According to the porter generic strategy, there are three strategies namely cost leadership, product differentiation and market focus, which can help Grove juice in gaining competitive advantages.

In terms of the cost leadership approach, introduction of the new products will enable in optimal utilization of their resources including their farming field and production facilities. Thus, the average cost of operation will get down and it will increase the profitability of Grove juice (Banker, Mashruwala & Tripathy, 2014). Generating more business from the foreign markets will also increase the rate of production of them and reduce their average cost of production. Thus, the identified opportunities will be well aligned with that of their business advantages.

Product differentiation refers to the strategy of offering unique and distinctive products in the market in order to stay different from that of the competitors. Thus, introduction of the new products with new flavors will help creating more distinctiveness and different products over their competitors (Liu & Zhang, 2013). In addition, entering in the foreign markets where the existing flavor of Grove juice is not available will also uplift the product differentiation strategy.

Market focus refers to the process of targeting and determining the preference pattern of the particular target customer segments and offerings products accordingly. Thus, if more product flavors are introduced in the market then the diverse requirement of more customers can be met. In addition, more customers getting towards the fruit juices over the conventional carbonated drinks (Piercy, 2016). Thus, these customers segments should be focused and new products should be introduced accordingly.

Ansoff growth matrix will be used in determining the relation between the identified opportunities and the organizational strategic intent. According to this matrix, there are four major organizational approaches that can help Grove juice in increasing their business potentiality.

This refers to the process of developing new products to target the new customer segments in the existing markets. In the case of Grove juice, introduction of new drinks in the market will help them to cater to the new customer segments in their existing market. Thus, the business opportunities will get increased for Grove juice (Katsikeas, Leonidou & Zeriti, 2016).

Market penetration refers to the introduction of the new variants of the existing products in the existing markets in order to further penetrate in the market. In order to tap the growing customer interests for the fruit drinks, Grove juice should initiate the market penetration strategy. This will help them to target more diverse range of customers across different price levels and business opportunities will get increased (Schmidt, Spann & Zeithammer, 2014).

Market development refers to the process of entering in the new markets with the existing set of products. Grove juice will have more business opportunities if they can enter in the foreign markets. Thus, the market opportunities will get increased and potentiality for them will get increased.

Competitive Advantages

Diversification refers to the strategy of offering new products in the new markets. In case of Grove juice, they can enter in a new market with offering new products such as carbonated drinks and some other beverage items. This will help to diversify their business and sources of income will be more for Grove juice.

• Increase the sales in the Australian market by minimum 10 percent within the next 12 months.
• Gain 5 percent of the revenue from the new flavors to be introduced within the next 12 months.
• Convert 5 percent of the potential customers from the carbonated drinks segment within the next 12 months.

One of the major segmentation variables to be used is demographic segmentation. In terms of age groups, customers between the age groups of 12 and 60 will be targeted. The major reason for targeting this wide age group is the nature of the product of Grove juice. Fruit juice will be offered to the teenage groups as a mode of refreshments and to the elderly age groups as a mode of nutrition (Sagar et al., 2017). In terms of gender, both male and female customers will be targeted. In terms of the income level, mass market customers will be targeted due to the reason that fruit juice is not a luxury product. This will increase potentiality for Grove juice.

Geographic segmentation is important for Grove juice due to the reason that it will determine the market presence of the products of them. Customers from the tier I and II cities and regions will be targeted due to the reason that they will have the affordability of consuming fruit drinks for refreshments. In addition, the potential export market will be the developing countries (Volpi & Ferrari, 2015). This is due to the reason that developing countries such as India and China are having the highest economy growth rate in the world with the largest portion of global population. Thus, targeting these countries will help Grove juice to have larger target customers.

In terms of the psychographic segmentation, customers with having professional backgrounds will be targeted. This is due to the reason that professionals will have busy schedule and will have the requirement for fruit juices for their refreshments. In addition, the households will also be targeted for their family usage. In addition, customers with having active lifestyles will also be targeted due to the reason that active lifestyle will be well aligned with the consumption of fruit juices for refreshments.

It is recommended that cost leadership and product differentiation strategies should be initiated in order to target the segmented customers. This is due to the reason that targeted age groups for Grove juice is wide and vast and initiation of the cost leadership will further increase the potentiality from this age group (Bostrom, Bohm & O’Connor, 2013). Cost leadership will help Grove juice to have customers from the targeted age group across the entire price levels. In addition, there are number of competitors already offering fruits juices in the market. Thus, initiation of the cost leadership strategy will help in gaining competitive advantages over their rivals. On the other hand, cost leadership will also enable Grove juice to have more competitiveness in targeting the developing markets by offering affordable prices.

It is also recommended that product differentiation strategy should also be initiated for targeting the segmented customers. This is due to the reason that huge varieties of fruit juices are available in the market and differentiating strategy will help to create a dedicated market segment. Grove juice should come up with distinctive flavors, which will help to meet the expectation of the customers coming from the carbonated drink segments (Dirisu, Iyiola & Ibidunni, 2013). In addition, differentiation strategy will also help Grove juice to meet the diverse taste of different customer segments.

Marketing Mix Elements

From the above positioning map, it can be concluded that competition is low in the low price and natural flavor segment. Majority of the brands are offering natural flavors in high price and some are offering low price but with artificial contents. Thus, Grove juice will be positioned as a low priced and natural fruit juice in the market. The above positioning map is denoting that this positioning will help Grove juice to have less intensity of the competition in the market. Thus, customers will have the option of availing natural fruit juice in lower pricing.

Some of the ethical factors such as the societal marketing concepts will be considered. This will help in initiating green marketing and other social oriented marketing, which will further help in generating positive word of mouth in the market. In addition, the cultural factors towards consumption of different fruit drinks will also be considered mainly in operating in the export market. Global factors including the currency valuation will be considered in the international business due to the reason that this will determine the profitability and final pricing of the products in the export market.

Conclusion 

This report concluded that Grove juice is having a number of opportunities in their future course of business. In this report, the internal competencies of Grove juice are being identified and they are aligned with the identified opportunities. In addition, this report also evaluated the competitive advantages of them and aligned them with their new business intent. In accordance to these factors, markets are being segmented and targeting and positioning strategy are being discussed. This report concludes that the marketing mix elements discussed in this report will help Grove juice to have effective course of business in future. 

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