Maxwell House Case 1
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The document presents an alternatives and implementation plan for Maxwell House coffee. It discusses three alternatives to increase revenue and unit sales: bundling products, launching microwavable coffee, or adding a new winter product line. The plan recommends bundling products (Alternative A) as it scored highest in the evaluation matrix and allows increasing sales without additional capital. It proposes using social media, radio, and Facebook ads for promotion and provides a timeline and budget for implementation from January to December 2016.
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Maxwell House Case 1
- 1. Maxwell House Alternatives & Implementation Plan PRESENTED BY: JUSTIN COLE, SUMIT SYAL, EDDIE HUANG, ANTAYA JONES, BRANDON DARTNALL AND SAKTHIVEL KARUNANITHI 1917-1989 1990-2005 2005-2010 2010- Present
- 2. AGENDA • Company Background • Organizational Objectives • Evaluation of Alternatives • Implementation Plan
- 3. Company Background • Founded in 1892 by Joel Cheek in Nashville, Tennessee • Maxwell house produces a variety of ground coffee. (ex. 100% Columbian, Dark Roast…) • Produces many line extensions such as instant coffee, beverage mixes • Fun Fact: Maxwell house coffee had the 26 President of the United States, Theodore Roosevelt visit and stated the coffee was “good to the last drop”
- 4. Organizational Objectives • Increase revenue of overall sales by 15% from January 2016 to December 2016 • Increase unit sales of ground canned coffee by 30,000 units in Loblaws and Metro locations in Ontario in 2016
- 5. OBJECTIVES: WEIGHT ALT A: Bundle with other products associated with coffee (mugs, creamers) ALT B: Launch a new line of Microwavable coffee (market development) ALT C: Implementing a new line of tea and hot chocolate as part of a new winter collection OBJ 1: Increase revenue of overall sales by 15% from January 2016 to December 2016 3 3x3=9 3x3=9 5x3= 15 OBJ 2: Increase unit sales of ground canned coffee by 30,000 units in Loblaws and Metro locations in Ontario in 2016 2 2x2=4 1x2=2 2x2=4 TOTAL RATING 13 11 19
- 6. Recommendation Alternatives Pros Cons Alternative A Bundle with other products associated with coffee (mugs, creamers) • Increase total unit sales under the Maxwell house brand • Bring awareness to the lesser known products in the Maxwell brand • Higher customer value • Loss of profit on individual sales • Takes up more shelf-facing that could be filled with other Maxwell House products Alternative B Launch a new line of Microwavable coffee (market development) • Penetrates the on-the-go market(convenience, active lifestyles) • It is an untapped market • Risk of reduced product quality • Risk of low consumer appeal Alternative C Implementing a new line of tea and hot chocolate as part of a new winter collection • Brand diversity • Increases market share (currently holding 12.9% of market share) • Risk of failure • Possibility of market saturation
- 7. Why is Alternative A the best option? • Has the best flexibility out of the other two options, even though the weight was lower than C • Alt. A has the best improvement for both objectives • Will increase unit sale while increasing revenue of other products under the Maxwell house brand • With this alternative Maxwell would not have to risk additional capital because of the use of already established products • Its ranking in the evaluation matrix was 2nd with 13 points
- 8. Target Market • Male and female, ages 30+ • They emphasise value and efficiency • Urban active lifestyle
- 9. Marketing Mix Product • Creamers • Various coffee flavors • Mugs • Sample packs of other Maxwell products Place • Available in many grocery stores such as Loblaw and Metro • Corner stores Price • Increase price to 12-15$ a unit, price varies on bundle Promotion • Grocery Store Flyers • Social Media (Facebook, Twitter, Instagram, YouTube) • Contests (raffles) • Radio Promotions • Discounts
- 10. Timeline
- 13. Budget ITEM AMOUNT IN CAD $$$ CALCULATED AS SOURCE OF COSTS Social Media Manager 32,850 Yearly Radio Advertisements 3,360 Yearly Facebook Paid Advertisements 25,000 Yearly
- 14. References • Maxwell House. (n.d.). Retrieved March 23, 2016, from http://logos.wikia.com/wiki/Maxwell_House?file=Maxwell_House.png • Facebook logo. (n.d.). Retrieved March 23, 2016, from https://www.facebook.com/maxwellhouse/?fref=nf • ☕️Coffee,Coffee & More Coffee!!☕️. (n.d.). Retrieved March 23, 2016, from https://www.pinterest.com/pin/422845852488229913/ • Maxwell House. (n.d.). Retrieved March 23, 2016, from http://www.kraftfoodsgroup.com/brands/largest-brands/brands-m/maxwell.aspx • The Hangover. (n.d.). Retrieved March 23, 2016, from http://www.starpulse.com/Movies/Hangover,_The/gallery/Hangover-movie-10/