The Stages Of New Product Assessment Answer

Explain Marketing Strategy and Plan for Atlantic Quench?

Answer:

Introduction

Atlantic Quench is an agricultural marketing co-operative organization, which was established in the year of 1930. Over the years, the organization has operated their business operations in the field of fruit juice and snacks fruit items. Apart from this, the organization has also produced cranberry sauce and dried cranberries, which has assisted the organization to establish recognition in the operating market.

In this regard, the objective of this assignment is to draw a marketing plan, which will assist the organization to archive predetermined goal more effective manner. Apart from this, through preparing this marketing plan, the organization can identify their required marketing strategies, which will assist the organization to enhance profitability and growth. Moreover, it will also help the organization to satisfy the needs and expectations of the customers.

Current Situation of Atlantic Quench

According to Ardley and Quinn (2013), Atlantic Quench is running their business in food and beverage markets in UK. The revenue generation percentage of Atlantic Quench still consists fewer than 5%. Apart from that, there are several competitors in UK especially in the food and beverage market such as Coca Cola, Pepsi, Tropicana, etc that make huge competition. Rapid growth as well as popularity of the competitors make hard to establish a brand for Atlantic Quench.

Company Analysis

justify;">In order to analyze the company situation, it is highly essential to concentrate on the mission and vision of the organization. Apart from this, an organization should have concentrate on its product manufacturing process along with its research and development process, which may enhance opportunity for the organization. Simultaneously, by concentrating on company analysis an organization can ensure its future growth prosperity. Additionally, company’s current situation analysis helps an organization to identify the needs and expectations of the customers.  

Mission Statement

• To develop a new energy drink product for the youth and elder generations.

Vision Statement

• To accomplish high market share and long-term prosperity in the energy drink segment.

Product Range

The objective of the organization is to introduce two kind of flavor in terms of energy drink. In this regard, high vitamin ingredients added drink has been chosen for the elders. On the other hand, caffeine added energy drink has been introduced for the youth generation.

Customer Analysis

Over the years, UK customers are recognized as a highly potential customer among the global market. Moreover, UK customers are also highly conscious regarding their health and hygienist related aspects. Moreover, taste and price both are the most crucial aspects, which may influence UK based buyers decisions during consumption food or drink. Thus, the organization has intended to develop a new energy drink, which may satisfy the taste of the customers. On the other hand, by emphasizing towards product specification such as vitamins, nutrition and caffeine, the organization has tried to fulfill needs and expectations of the customers.

Competitors Analysis of Atlantic Quench

According to Pike and Page (2014), competitor’s analysis mainly discusses about doing the identification of the competitors as well as evaluation of the various strategies in order to determine both the weakness and strengths in the relation to the services or the products. Moreover, in doing the evaluation of the competitors it needs to find about the various information regarding the competitors (Schlager and Maas, 2013). It also discusses about the information in order to predict about the competitors behaviors.

Therefore, with the help of competitor’s analysis, Atlantic Quench needs to identify various potential competitors that include both the primary as well as secondary competitors of the Atlantic Quench. Moreover, it also discuses about both the risks as well as opportunities in order to launch their energy drinks based on the market strategies of the energy drinks (Taylor-West, Saker and Champion, 2012).

Table 1: Competitors of Atlantic Quench

Internal Analysis

Internal analysis is one of the essential aspects through which it is possible to identify the strength and weaknesses of an organization. Apart from this, by concentrating on internal analysis an organization may also indentify their future opportunities and threats. In this assignment, the objective of internal analysis is to identify and understand the future prosperity of Atlantic Quench’s new launched energy drink product.

Strength

In order to highlight the strength of newly developed energy drink product it can be claimed that high vitamin ingredients and nutrition ingredients added drink are the key strength for the organization.

Weaknesses

Simultaneously, in order to highlight weaknesses of the organization, it can be mentioned that presence of giant brand in the operative market may affect presence of the new energy drink brand in a diversified manner.

Opportunities  

In order to highlight opportunities of the organization, it can be argued that extension of product line may create a position impact on the brand in terms of market share. On the other hand, existing supply chain may influence the presence of newly developed energy drink product in the operative market in an effective manner.

Threats

Presence of giant brand in the operative market may influence market barriers for the organization. In this relation, it can be argued that cost of product, supplement drink and government caution regarding high caffeine content may affect the performance of the business in a diversified manner.     

External Analysis

In order to analyze competitive forces of the organization, it is required to incorporate Porter’s Five Forces model, which may identify the competitive structure and business environment of the organization in the operative marketplace.

Bargaining Power of Suppliers (Moderate)

With the aim of identify the bargaining power of suppliers for Atlantic Quench, it is recognized that the organization has a very strong command over its suppliers due to its long-term presence in the market as food and beverage operator. Thus, it can be mentioned that the bargaining power of suppliers is moderate i.e. Atlantic Quench.

Bargaining Power of Customers (Low)

Similarly, during identifying the bargaining power of customers for Atlantic Quench, it is revealed that large numbers of energy drink manufacture organizations are operating their business in the local market of UK. Thus, consumers can shift one brand to another very frequently, which signifies that the bargaining power of customer is low i.e.    

Threat of New Entrants (Low)

Simultaneously, in order to identify the threat of new entrants in the market, it is revealed that it is quite difficult for a new organization to accrue the market in an effective manner. In relational to this, it can be argued lack of presence effective supply chain model may affect performance of the organization in diversified manner. Thus, it can be mentioned that the threat of a new player is low i.e. Atlantic Quench.      

Threat of Substitute Products (High)

On the other hand, in order to recognize the threat of substitute product, it is revealed that large numbers of competitors have introduced several substitute products such as food drink and many others. Thus, it can be claimed that the threat of substitute product is very high i.e. Atlantic Quench.

Competitive Rivalry within the Industry (High)

In order to analyze the competitive rivalry of Atlantic Quench within the industry, it is notified that larger numbers of energy drink manufacturers are emphasizing towards quality with the intention of attracting the attention of consumers. At the same time, a few organizations have also concentrated on low-cost based products for enhancing level of competitive advantages in the operating market. Thus, it can be argued that the organization has high competitive rivalry within the industry.

Marketing Segmentation

According to Ardley and Quinn (2013), Market segmentation focuses on dividing the market into consumers, businesses, geographies having common interests, priorities and then directing the market strategies towards them. The consumption of energy drinks is rising rapidly, which has been witnessed by the growth of energy drink over the last decade in the domestic market of UK.

Demographics Wise Segmentation

Majority of the youth citizens of UK prefer to consume energy drink daily. The age range of the consumers is 15- 24 years. In this regard, it can be claimed that the interest of the energy drink is growing rapidly for the domestic market of UK. On the other hand, it is also revealed that the elder citizens of UK (in between the age group of 35-45) also prefer to consume energy drink as it is recognized as a healthy and hygienic item. In this regard, more specifically it can be argued that due to the presence of high vitamin ingredients and nutrition ingredients, consumers of UK more often getting attracted towards the energy drink product.

Customer Attitudes in UK

In order to identify the customer attitude in the local market of UK, it is revealed that youth generation has the tendency of consuming energy drink. Moreover, it is also identified that youth also have a tendency of getting attracted towards the attractive packing products. Moreover, large number of UK youths generally watches television. Apart from this, they also uses social media platform such as Facebook and Twitter among others. Thus, it this regard, rationally it can be argued that through emphasizing towards the packaging and by choosing effective promotional activities, Atlantic Quench can attract the attention of the consumers. Similarly, it is also notified that UK consumers (Between the age group 35-45) like to consume high vitamins and nutrition ingredients products. Thus, with the aim of attracting the attention of the elder consumers of UK, Atlantic Quench will need to keep the consistency of their product in terms of quality (Grubor, Djokic and Milicevic, 2014).

Market Trend and Growth Prosperity of Energy Drink

Overall growth of energy drinks is determined positively by new product launches, complete packaging and growing retail distribution. Other factors that contribute to market growth are ethnicity and age. Aggressive marketing strategies have led to availability of these energy drinks in the groceries and all types of retail outlets. According to Packaged Facts, convenience stores occupy the largest share (59%), succeeded by mass merchandise (13%), supermarkets (10%), club stores (5%) and drug stores (2%).

Similarly based on the report of energy drink industry, it is witnessed that few well known marketers dominate the market for energy drinks reflecting the effect of first movers advantage in this domain which has spawned the establishment of new brands, viz. Red Bull, Monster Energy, 5-Hour Energy and Rockstar Energy.

Marketing Strategy for Energy Drink

According to the viewpoint of Clancy (2015), marketing strategy is one of the most essential aspects for an organization through which an organization can enhance their profitability and also can ensure their long-term sustainability in the operating marketplace. In this regard, more specifically it can be mentioned that through emphasizing towards the aspects of principle management, Atlantic Quench can accrue more customers for their newly developed drink product. Simultaneously, it can be claimed that through emphasizing towards the aspects of marketing mix, Atlantic Quench can also enhance their competitive advantage in the operating marketplace (Clancy, 2015).

On the other hand, based on the viewpoint of Wright and Larsen (2014), through concentrating towards the new product development related aspects, Atlantic Quench can establish a positive recognition in a competitive marketplace. Moreover, claimed that through emphasizing towards advertising and promotional activities Atlantic Quench can reinforce their brand image in the global market. The marketing strategies, which may influence the business performance of Atlantic Quench in a positive manner those, are discussed below:

Marketing Mix

In this context, it can be argued that trough concentrating on marketing mix related aspects; Atlantic Quench can address the key issues and challenges of the organization. Simultaneously, through emphasizing towards the marketing mix related aspects Atlantic Quench can fulfill the need and expectation of the customers for their newly developed energy drink product.

Additionally, it can be argued that people, process and physical evidence is also may create an impact on the performance of the organization. Thus, it can be evidently mentioned that Atlantic Quench should consider all these above stated aspects before introducing new product.

New Product Development (NPD)

Apart from marketing mix, NPD is also one of the highly essential aspects for an organization, through which Atlantic Quench can ensure the efficiency of the product and it may also fulfill needs and expectations of the customers. In this regard, Atlantic Quench should need to consider certain steps during the development of new energy drink product. A diagram is depicted below for better understanding.

Fig. 1: The Stages of New Product Development

Promotional Strategy

Moreover, through emphasizing towards promotional strategy Atlantic Quench can ensure its long-term sustainability in the global market. In this regard, certain aspects are highlighted below:

Adding to cognitive segmentation, new energy drinks appeal various subcultures in the target market and differentiate from competitor market. Company can take a look about sponsoring different and endearing sports like mount climbing, soccer, car racing, bike racing etc. The belief, knowledge and meaning  are entangled with other knowledge that form brand attitude which helps to influence purchasing intention other characteristic including action are brand loyalty and product preference.

Pricing Strategy:

A premium pricing strategy for each product is recommended as Pricing is not the basis of energy drink market. The target price are being measured include entry into the energy drink, category, sales, return of investments, market share shows a way to form marketing strategy.

Short term and long term Projection of Atlantic Quench

In order to discuss about both the short term as well as long-term projection of the Atlantic Quench it needs to make the profit as well as to maintain the overall range of the growth.  Moreover, in order to deduce both the long term as well as short-term goals, the Atlantic Quench needs to maintain some of the following things (Taylor-West, Saker and Champion, 2012):

Analyze the customers as well as projection of the revenue growth: In order to do the business, it needs to determine the combination of both the long terms and short-term goals. In the context of long-term goals, it needs to increase the revenue based on the time (Weinstein, 2010). On the other hand, in doing the description about the short-term goals it describes about the wants and demands of the customers (Wright and Larsen, 2014).

Perfection of the customer service: In order to introduce the long-term goals it discusses about doing the creation of the customer base. Moreover, it also discusses about collecting various customer information so that it becomes easy to have the proper understanding about the characteristics of the customers (Wright and Larsen, 2014). Therefore, it becomes easy to have the proper as well as loyal customer services.

Conclusion

This particular study mainly concludes about the introduction of energy drinks of Atlantic Quench. Therefore, it also discusses about the various analysis in order to implement the energy drinks that includes competitor’s analysis, situation analysis as well as various internal and external analysis. Moreover, in this particular assignment it also discusses about the various marketing strategies based on which Atlantic Quench can introduce their energy drink in the targeted market platform. Furthermore, it also discusses about the different market segmentation techniques based on which Atlantic Quench can identified the targeted customers in order to introduce their product depending on the customer analysis.

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