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  • 1. Marketing Plan for Georgia Coffee 1 Report on Marketing Plan For Georgia Coffee
  • 2. Marketing Plan for Georgia Coffee 2 Abstract Georgia is a popular brand of coffee flavored beverages and it is sold by the Coca-Cola Company. The Japanese subsidiary of Coca-Cola started its production in the year 1975. But it is strange to note that despite being produced by Atlanta, Georgia based Coca-Cola company, this product i.e., Georgia coffee is not been sold within Georgia. The main reason is that there are no consumers for canned coffee in United States. This is a marketing plan for Georgia Coffee, operating in the US state of Georgia as well as the nation of Georgia to expand to Georgia market. This expansion includes forming a joint venture with Subway Corporation and a Georgian company that can provide navigation through cultural barriers. The Georgian economy has been improving since the late 1990s, and the coffee market is strong in Georgia's largest cities. Georgia presents challenges that other international markets do not, but it also holds promise not available in other markets as well. The Georgia Coffee culture will be totally foreign in Georgia, but its strangeness also will be refreshing. The Georgian partner will need to be trained in Georgia Coffee's philosophy and explain to Georgian employees the differences they can expect to see in Georgia Coffee's approach to business and to them. The combination of Georgia Coffee and Subway sandwiches promises to be a successful one in the Georgian market. This marketing plan aims at designing a strategy to achieve positive result and growth. Introduction Georgia coffee, the coffee flavored beverage that is sold in can has a very good market in Japan and it has expanded to other markets like Singapore, Bahrain and India too. There are many seasonal blends that Coca-Cola markets original, Original, Mocha Kilamanjaro, and Emerald Mountain Blend through out the year. Consumers enjoy coffee as a cold or hot beverage. To mention few of Georgia blends of coffee are Georgia Coffee Original, Georgia Coffee Mocha Kilamanjaro, Georgia Coffee Emerald Mountain Blend, Georgia Coffee Emblem Blend, Georgia Coffee European Blend, Georgia Coffee Royal Blend etc., But it is really interesting to note that though it is produced in Atlanta, it is not been marketed there, simply because the people of Atlanta does not have a liking for that particular taste. Now it will be a great task to design a marketing strategy to have an entry in the Atlanta market and make the people to accept this
  • 3. Marketing Plan for Georgia Coffee 3 product. In this report let us analyze the marketing plan for Georgia Coffee’s expansion in to Atlanta market. MARKETING PLAN FOR GEORGIA COFFEE EXPANDING IN ATLANTA MARKETING PLAN PHASE I THE MARKET Market Situation Analysis Based in Atlanta, Georgia Coffee is a small company that in many ways strives to be the Starbucks of the US East. It operates a dozen locations in and around Atlanta and is expanding to T'bilisi, the capital of the nation of Georgia. A coffeehouse culture has been developing in Georgia's northern neighbor of Russia for several years; Starbucks battled in Russian courts to reclaim its trademark from a Russian trademark "squatter," delaying its entry into Russia for several years (Kramer, 2007). Starbucks has not yet expanded into Georgia, the Ukraine or the other nations that formerly comprised the south-central section of the USSR. The economy of Russia is more conducive to Starbucks than is that of Georgia. Georgia Coffee will be able to become well established before Starbucks is likely to turn its attention to Georgia. Starbucks' current focus is China, where its greatest attention is likely to remain for some time (Guest, 200). Market Needs and Trends It is to be noted that the people need a comparatively economical beverage to be consumed due to the recession effected in the state of Georgia, The company can utilize this chance and try to market its product using the pricing strategy for the entry in to market and then hike the prices to the nominal profit one once the market has been captured. It is a great challenge for the Georgia Company to enter in to Atlanta and unless it opts for any strategy like above, it is difficult to enter in to market. Also with the population of adult growing drastically it has to pay more attention to tap the future adult market who is the present youngsters.
  • 4. Marketing Plan for Georgia Coffee 4 Market Demographics Atlanta is the largest city that is in the Georgia state. It is the ninth most populated city of United States metropolitan area. Its population grew steadily during the first 100 years and it reached its peak in 1970. After this period the population within the city limits gradually falls while in the metro area continued its growth. It ranks 33rd largest in USA and sixth largest city in south eastern region of US. It is to be noted like other parts of the world, Atlanta also witnesses the growth of the older people in its area. A study reveals that older population doubled between 1970 and 2000. It also predicts that by 2015 it might double again. By the year 2030, it is predicted that one out of 5 residents in Atlanta region might be above 60 years old. (www.atlantaregional.com). Georgia’s Macro Environment and its Market Growth Georgia has been suffering along with much of the rest of the developing world during the current worldwide recession. It posted only 3 percent growths in GDP in 2008, and is expected to achieve even less in 2009 (Georgia, 2009). Prior to the recession, however, Georgia's economy enjoyed GDP growth of more than 10 percent in both 2007 and 2006 (Georgia, 2009). GDP in 2008 was only $21.5 billion, less than some of the world's leading businesses. About 59 percent of the total economy is in services, with another 35 percent in agriculture (Georgia, 2009). Manufacturing accounts for very little of Georgia's economy. Because services are so important to the country's economy, it also has a great deal of contact with financial markets of the world. Currently Georgia is battling corruption and past problems with collecting tax receipts. Russia invaded for a short time in 2008 (Nyquist, 2008), apparently to demonstrate that it can and to encourage Georgia not to interfere with Russia's political ties with Turkey and Turkey's Islamic neighbors. Georgia is as equally pro-Western and committed to the concepts of small government and free enterprise, creating an ideological conflict.
  • 5. Marketing Plan for Georgia Coffee 5 THE COMPANY Georgia Coffee’s Mission statement It is the mission of Georgia Coffee to provide coffee and coffee-based drinks of superlative quality at prices affordable for customers and profitable for the company. Georgia Coffee’s Products The product of Georgia’s coffee is canned coffee that can be enjoyed either hot or cold. Some of it blends are Georgia Coffee Original, Georgia Coffee Mocha Kilamanjaro, Georgia Coffee Emerald Mountain Blend, Georgia Coffee Emblem Blend, Georgia Coffee European Blend, Georgia Coffee Royal Blend, Georgia Coffee Platinum Blend, Georgia Coffee Qualite Latte, Georgia Max Coffee,Georgia Coffee Milk and Bitter, Georgia Coffee Latte (Japan 2004), Georgia Coffee Latte—no sugar added and low in calories, Georgia Coffee Soy Latte, Georgia Coffee Demitasse Rich, Georgia Coffee Sweet Series White Chocolate, Georgia Coffee Tasty, Georgia Coffee Cafe Au Lait Georgia Coffee’s positioning Georgia Coffee's products are positioned to be more affordable than those of its leading competitor Starbucks and more appealing than those of McDonald's or Dunkin' Donuts, attracting those customers who seek the luxury of Starbucks but prefer the pricing of others' products. SWOT ANALYSIS OF GEORGIA COFFEE Each product has its own strength weakness opportunities and threats which govern the market and its product’s success. Strengths
  • 6. Marketing Plan for Georgia Coffee 6 • Georgia Coffee offers true competition for industry leaders, as it is already running successfully in other parts of the world; with a little variation in its product according to the Atlanta’s taste it can definitely turn to be successful in Atlanta too. • Georgia Coffee practices environmental and socially responsible principles and practices, which will enable the people to Atlanta to view the company’s product as reliable one and they will at least give a fair trial to the product introduced in their region. • The company and its products have been well received where ever it operates and hence it is likely to be successful in Atlanta too as it already has its administration part firmly rooted in the grounds with a solid principle for operating the market. Weaknesses • The company is dependent on the US market dominated by large companies. Hence it has to compete with the large companies which have a large base of its own customers. It has to face a stiff competition with those companies and at times making the customers try this product itself indeed a great task. • It relies solely on the beverage industry and of course primarily on coffee beverages. In short the product is a single product on which the company’s profit and loss account relies on. If the company loses to gain the customers satisfaction for this product the loss cannot be compensated by the parallel product of the same company. Opportunities • The global coffee market continues to expand. And this trend is applicable for Atlanta region too. Hence it can go forward and devise strategies to convert this market to cash. • The company continues to expand its markets and Atlanta which is called as Coffee County is one among the target. Threats
  • 7. Marketing Plan for Georgia Coffee 7 • Coffee markets are volatile and unpredictable and hence it has to take care about expanding. Better it follows a slow and sure process in entering the market. • Revenues continue to increase over prior years but have been slowing over time. Unlike other industry the product does not promise a high return. COMPETITION Competition is increasing, not only within the coffee industry but also within the larger specialty foods industry (Starbucks Corporation, 2008). As stated, Starbucks is Georgia Coffee's leading competitor; McDonald's and to a lesser extent Dunkin' Donuts also are direct competitors. Indirect competitors include all sellers of coffee and any other beverage that coffee drinkers might choose on any occasion. MARKETING PLAN PHASE II MARKETING STRATEGY Value Proposition The value proposition is addressed in the mission statement, which is to provide products and service of superlative quality at prices that are more affordable than those that will be charged when Starbucks eventually enters the Georgia market. Critical Issue In marketing the Georgia coffee in Atlanta, the critical issue is that the people are not having the habit of consuming the canned coffee. Hence if we could change the attitude of the people of Atlanta to start using the canned coffee then that will turn to a key success factor. By entering in to a partnership with subway sandwiches, it can have an access to the large base of customers
  • 8. Marketing Plan for Georgia Coffee 8 already. Now only thing is that it has to make the customers to just give a thought to try the taste of canned coffee. Financial Objectives Georgia coffee is already running profitably in other global parts. By trying to get into a new market of Atlanta, it wants to have consumers in the place where it is produced. It can very well adjust the profit account of other profitably running heads across the global with Atlanta. Hence it aims to get an entry with the help of Subway Corporation with not much expectation on the financial returns, at least in the initial stage of breaking in to the market. However after one year, it plans to target to get at least about 50% of the profit that it gains from operating in other global areas and it gives ample space and time for showing the profit as it is understood it is a little tough market to break through. Marketing Objective The main objective of marketing is to increase the product awareness among the people of Atlanta by about 40 % in one year. To communicate the target audience i.e., youngsters about the features and benefits of the product. Making them to realize about the competitive advantage and try the product. To plan for the decrease the potential customer’s resistance to buy the product that will lead to about 30% increase in the sales in a six moth’s time. Target Market Strategy As per the general survey conducted in a nation, it is found that it is the youngsters who consume more coffee than the old people. The main reason is that they love to have a cup of coffee when they are with their friends. Needless to say, in office there is large consumption of coffee and people tend to drink more than three cups of coffee a day. This is true especially in the IT industry where there is more number of youngsters working in the night shifts. Hence the target customers for Georgia coffee are the youngsters; hence have to target the advertisement to tap their attention so that we can win a major share of the market. Marketing Message
  • 9. Marketing Plan for Georgia Coffee 9 It is the message that is conveyed to the target prospect. The message can be like “Feel so exhausted. try out Georgia Coffee and be ready for an outdoor activity in the evening with your friends” here the message says that the problem is the tiredness of the target customer and he has to overcome it in order to attend the get together with his friends. “At a price of X dollars try be out of your tiredness and refresh yourselves and start enjoying the life”. “Want to win friends, take them out to subway corporation and treat them a sandwich with Georgia coffee” These messages reach the target audience who are the youngsters who want to impress their friends, who want to overcome the tiredness, and don’t want to miss any get together with their friends. Branding Georgia Coffee has already a strong brand for its product. Its brand name is “Georgia Coffee” This brand manages to confirm the products credibility, it manages to connect to the target customers who are youngsters emotionally and motivates the buyer to try the product. As already the brand is existing we can use the same brand for marketing in Atlanta too. Hence care to be taken to use the same branding everywhere to ensure the customers who are present globally get the same sense of loyalty when they see or hear the Georgia coffee’s branding Strategy Pyramids The strategy of expansion of Georgia Coffee in Atlanta is that it adapts the joint venture with Subway Corporation and tries to use its customer base for convincing the existing customers of subway to have a try of Georgia coffee and its main aim is to provide the quality coffee at the affordable price to its customers. The strategy pyramid can be depicted by the following figure which is self explanatory.
  • 10. Marketing Plan for Georgia Coffee 10 Expan sion in Atlanta Joint venture with Subway corportation To provide quality canned coffee At an economical price Marketing Mix
  • 11. Marketing Plan for Georgia Coffee 11 Price, product, place and promotion – the "4 Ps" - all are integral to the successful marketing of the organization's products and services. As more marketers seek the attention of more customers in a relatively finite number of outlets, close management of each "p" is critical to the success of a product, service, business or message. In most cases, each "P" needs to be managed well if the organization is going to find success in its marketing efforts. Product marketing The product is discussed above in detail. Georgia Coffee will need to ensure that it continues to meet customer needs, regardless of how those customer needs may change in the future. Pricing An optimum price is the maximum that consumers are willing to pay and still buy the product with regularity. These other measures include: What do competitors charge for similar products? What is the company's intent for this product? Will the company be taking part in retailer discounts? How much are consumers willing to pay? What is consumer's perceived value of the product? There are other considerations in price, but most consumer products today are priced according to demographics of the target market and how long the producer believes the product life cycle will be. The life cycle for this product is seen as being quite long; the company needs to price for longevity rather than as a temporary product. Alternative options include increasing the price to impart an air of product superiority and great value. There are several actions that precede the act of setting prices in according with four leading pricing objectives. There are many possible pricing objectives; the four selected as being primary are "1) the overall financial, marketing, and strategic objectives of the company; 2) the objectives of" (Pricing objectives, the product or brand; 3) consumer expectations; and 4) the resources available to the organization. Promotion and Advertising
  • 12. Marketing Plan for Georgia Coffee 12 Product promotion has three components, which are public relations; advertising; and incentives. Public relations are the interaction between the producer and the customer. Advertising is the publicity that marketers purchase, and it is the area of marketing that often is the most visible. This type of publicity is that which marketers can slant to whatever light they choose, as long as their claims honestly reflect the qualities and uses of their product. McNamara (n.d.) explains that advertising is "bringing a product (or service) to the attention of potential and current customers." Advertising puts the name of the product or service in front of as many people as possible, and often in as many media as possible. Promotion, on the other hand, collectively is a set of activities that "keeps the product in the minds of the customer and helps stimulate demand for the product" (McNamara, n.d.). Promotion includes ongoing advertising. • Distribution - All of Georgia Coffee's products will be available only through its retail stores, stands and kiosks. • IMC Strategy - The elements of the communication mix include: advertising, direct marketing, sales promotion, publicity/public relations and personal selling. Several of these points are discussed above; only those that are not are addressed below. • Direct Marketing - "A zero-level channel (also called a direct-marketing channel) consists of a producer selling directly to final customers through door-to-door sales, Internet selling, mail order, telemarketing, TV selling, and other methods" (Kotler and Keller, 2007; p. 244). This works well with Mary Kay Cosmetics or the Total Gym that Chuck Norris promotes and sells, but it is far less practical for items such as laundry bleach or chewing gum. Though direct marketing allows the producer to be closest to the end user, it is not always practical. Kotler and Keller (2007) illustrate that the Wrigley Company would not find it feasible to "establish small retail gum shops throughout the world or to sell gum by mail order. It would have to sell gum along with many other small products and would end up in the drugstore and grocery store business" (p. 241). Direct marketing allows a company to explain its product or service directly to decision makers but is limited in the number of people it can reach.
  • 13. Marketing Plan for Georgia Coffee 13 • Publicity and Public Relations - Farman (2003) speaks to publicity, noting that both advertising and publicity share a common goal of increasing "awareness of a business, product or service in a positive, compelling way to generate new customers" (p. 7) while reinforcing the business, product or service with existing customers. Advertising is directed in its content and placement, and even the timing with which it appears before (or is heard by) consumers. • Personal Selling - "Personal selling is sometimes called the 'last 3 feet' of the marketing function, because 3 feet is the approximate distance between" (Clow and Baack, 2007; p. 338) either the retail salesperson and customer or the space across the desk between a sales representative and a business customer. In the case of Georgia Coffee it is the individual filling the customer's order. Web Plan Georgia Coffee to plan and devise a web site which provides all the information about its product and it has to have an access to all the other official sites of the Georgia Coffee from a single point web site. For example a person who enters the site of Georgia Coffee – Atlanta should be able to enter the Georgia Coffee – India. The web plan to be very simple that it reaches the mass. Too complicated web plan will naturally tend the web browsers to feel tired and switch on the pages without even looking in to the contents. Website Goals The main goal of the website of Georgia Coffee – Atlanta is to tap the web browsers of coffee fans who would like to try out different tastes of coffee. It aims to increase the visitors to the website thereby consumers of their product. Website Marketing Strategy Strategy used is that they tend to invite the web browsers by taking their web page in the initial few pages when one types the word coffee in Atlanta, so that it reaches customers easily.
  • 14. Marketing Plan for Georgia Coffee 14 Development Requirements In due course of time the web to be developed that the consumers are aware of the new brands of Georgia Coffee available across the nation and also they will be able to find out the distributors in their locality and they could order the product through net. Service Service of the product is giving the customers the best beverage at the affordable price at the nearest shop all over Atlanta. To achieve this Georgia Coffee has to work out a very good strategy of selecting distributors all over the nation. Channels They ate the means by which we sell the products to the customers. Georgia tends to route its sales channels through Subway Corporation throughout Atlanta to market its product. And it has taken its distributor as Subway Corporation which is already in the market. International Markets As already discussed it is already flagging its products in Japan, India, Singapore and Bahrain. It is doing pretty well in all these places. Especially in Japan and India it is able to sweep the market. Implementation Schedule It tends to implement the marketing strategy in three phases as explained in this report. Sales Plan, Strategy and Process It initially tends to expand in Atlanta by entering in to a joint venture with Subway Corporation which has its own customer base in Atlanta. Those who come to utilize the services of Subway will be induced to taste the Georgia Coffee and later there is a lot chance of them becoming a regular customer.
  • 15. Marketing Plan for Georgia Coffee 15 Financials. Break-even Analysis This analysis is useful in the marketing plan. To determine the volume of sales that is required for a business to "break even" or have its sales revenue to be equal to its costs. Here the price of the canned Georgia Coffee is based on the projected sales volume. It is used to set goals and objectives in the plan. The break even volume is arrived at by dividing the fixed costs by the by the difference between the Price and the Variable Costs Sales Forecast It is the expected volume of sales of the product in an assumed marketing environment. Here in this case it is expected that at least about 25% of the subway corporation client’s taste and change in to the Georgia Coffee’s customers. Expense Forecast and Linking Expenses to Strategy and tactics As it is entering in to joint venture with subway corporation, the infra structure is already existing and it has to pay for advertising etc., to reach the mass of customers. CONTROLS Implementation It is to enter in to joint venture in to Subway Corporation and see to that the products are available across Atlanta in all Subway corporations regardless in which corner of the nation they exist. Keys to Success Keys to Success - The key to success for Georgia Coffee are its ability to meet its customer's needs and develop customer relationships. Undertaking customer satisfy action strategies will
  • 16. Marketing Plan for Georgia Coffee 16 involve the ability to assess customer needs and flexibility to implement change which can be accepted by the employees. Market Research When a research was conducted, it was found that most of the youngsters would like to have a try on the new brands in the market for it is their basic nature to try out something adventurous Contingency Planning When the above plan of marketing the product through joint venture with subway fails, it can either tap the market by opening direct sales or by approaching distributors who will follow personal selling as strategy to tap customers. CRM Plans It enables marketing departments to identify and target their best customers and to generate the quality leads. It provides the employees with information and process that is necessary to know their customers and understand their need and help them in building the strong relation with them. Here the customers are youngsters and to be more specific they are the customers of subway whom we are targeting. Conclusion Hence as already Georgia Coffee has a strong net work in other countries like Japan, India, Singapore and Bahrain, It is aware of the operational strategies. Now by adopting the strategy of entering into a joint venture with Subway Corporation it is sure to break into the Atlanta market slowly and steady and this strategy of entering the market through other’s customers will work out to the success of Georgia Coffee.
  • 17. Marketing Plan for Georgia Coffee 17 References Clow, Kenneth E. and Donald Baack (2007). Integrated Advertising, Promotion, and Marketing Communications, 3rd ed. (Boston: Pearson Prentice Hall). Farman, Ruth (2003, September 1). Blend publicity onto your marketing mix. Las Vegas
  • 18. Marketing Plan for Georgia Coffee 18 Business Press, 20(35), p. 7. Georgia. (2009, October 28). The World Factbook. Retrieved November 4, 2009 from https://www.cia.gov/library/publications/the-world-factbook/geos/gg.html. Guest, Greta (2006, May 16). Starbucks strategy goes beyond java: Chairman explores new entertainment. Detroit Free Press, p. NA. Kotler, Philip and Kevin Lane Keller (2007). A Framework for Marketing Management, 3rd ed. (Boston: Prentice Hall). Kramer, Andrew E. (2007, September 7). After Long Dispute, a Russian Starbucks. The New York Times. Retrieved November 4, 2009 fromhttp://www.nytimes.com/2007/09/07/business/worldbusiness/07sbux.html. McNamara, Carter (n.d.). Basic Definitions: Advertising, Marketing, Promotion, Public Relations and Publicity, and Sales. Authenticity Consulting. Retrieved November 4, 2009 from http://www.managementhelp.org/ad_prmot/defntion.htm. Nyquist, J. R. (2008, August 8). Russia Invades Georgia. FinancialSense.com. Retrieved November 4, 2009 fromhttp://www.financialsense.com/stormwatch/geo/pastanalysis/2008/0808.html. Pricing Objectives. (n.d.). Web Marketing Strategy. Retrieved November 4, 2009 from http://www.nowsell.com/marketing-guide/pricing-objectives.html. Starbucks Corporation. (2008, March 26). Datamonitor.com. Retrieved November 4, 2009 from http://web.ebscohost.com/ehost/pdf?vid=5&hid=5&sid=b6cf21a7-e480-4caf- a530-342a7ae83bec%40sessionmgr7.
  • 19. Marketing Plan for Georgia Coffee 19 (http://www.atlantaregional.com/html/470.aspx)

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