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Marketing Plan The marketing of a new Jamba Juice smoothie will be done at the Ace Train stations as passengers depart the trains after a long day of commuting and working. The smoothie will offer a cold, refreshing drink to give the people a boost before returning home to begin with the day-to-day family or friends issues whether needing to go to a back-toschool night for their kids, picking up children or participating in sports activities, or working a second job to make ends meet. Jamba Juice was founded in April 1990 by Kirk Perron, and incorporated in 1991 as Juice Club, Inc. in San Francisco, California. Jamba Juice is known as one of the leaders in the quick-serve fruit and vegetable juice markets nationwide. In 1993, the company opened and started along with two other California stores; one in Palo Alto, California and one in Irvine, California. In 1995 Juice Club Inc. of San Francisco changed its store name to Jamba Juice. In August of 1997, Jamba Juice entered into an operating agreement with Whole Foods Market to sell only "natural" products inside some of the Whole Foods’ locations, including Jamba's smoothies' ingredients. In March of 1999, Jamba Juice acquired all nation-wide Zuka Juice, Inc. stores. Since then Jamba Juice has expanded to become one of the nation's best known smoothie chains, emphasizing the benefits of a healthy lifestyle. Jamba Juice uses real fruit and 100% fruit juices (from all fruit concentrate). All smoothies, except for its "All Fruit Smoothies," contain another ingredient, as per the recipe: sherbet, frozen yogurt, sorbet, plain yogurt, lower-calorie dairy base, or soymilk. Jamba Juice introduced "Enlightened Smoothies" in 2004 with less sugar and fewer calories and carbohydrates. They have since been renamed "Jamba Light." The lowercalorie dairy base is made with Splenda, non-fat milk and whey protein. In addition to the smoothies, Jamba Juice sells fresh-squeezed orange juice and... to look at a sample marketing plan and walk you through the steps to take when you prepare one on your own, including an environmental assessment and SWOT analysis. For best results, have a pen and paper handy and write out your ideas before you look at what's in this example of a marketing plan. Every marketing plan is different, so learning the process is what's important. You can only learn it for yourself; nobody can learn it for you, so sit back and reflect before you move on! Also, by writing down your own responses, you will find it easier to compare what is in here. If you are looking for the “right answer” you are in the wrong place! In marketing plan cases, there are no right and wrong answers, only those which are supported by the facts of the case and those which are not. That's why process is so important-- you should be learning how to conduct systematic analysis of the marketing environment to build a solid SWOT analysis and apply it all to create sound marketing plans. While this example of a marketing plan might be helpful for understanding basic formats and techniques, it is based on a very short case and so is thinner than a full marketing

plan would be. In particular, it does not make extensive use of statistics and industry trends, which would be found in typical marketing plans.

Let's Go For It!
You can view the marketing plan example case right here in your web browser. Especially if you love to scribble notes and highlight, you can print off a copy of the case. Click here to open the case. To print the sample marketing plan case, use the Print icon on your menu bar above after you have opened it. The case will open in a new window, which you can close to return to this page.

Read the Case
Slowly, thoroughly, thoughtfully and repeatedly, read the case!! Make sure you have all the facts straight and know what information it has. Read it once for an overview, then read it again looking for themes. It often helps to highlight sections or write notes in the column (e.g. a big S in the column beside a strength.) You should sketch out your analysis and recommendations as well, following the sample Marketing Plan format. By doing so, you will have something to compare with what follows and you can see if and how they differ. For maximum learning, this is the way to go!

STOP! Halt! Wait!!
Do not proceed unless you have read the case!!! Executive Summary ~ Current Situation ~ SWOT Analysis Issue Analysis ~ Objectives ~ Marketing Strategy Action Plan ~ Pro Formas ~ Evaluation Procedures

Executive Summary
Push mowers have experienced dramatic growth in recent years, driven by a trend to smaller lawns, consumers’ desire for simplicity and concerns about the environmental impact of gas and electric mowers. We recommend that Keith Damien choose urban women as his primary target market, with urban men as a secondary market to acheive an objective of 3,000 unit sales in the first year. The Greenkeeper Mower should be positioned as “Right for your lawn and the environment”, and be distributed though garden centres and hardware stores in areas where urban renewal is occuring. Promotion will be through event participation and brochures attached to the machines, along with

extensive personal selling and training of those who will explain the machines to customers. For an overview of the Executive Summary, click here. Executive Summary ~ Current Situation ~ SWOT Analysis

The Current Situation
The Market The market should be considered as a new one, since it is quite distinct from the traditional push mower which faded away. Reasons for buying push mowers relate to environmental concerns, very small urban lawns and the desire for simplicity. American Lawn Mower dominates the market for push mowers. While gas and electric mowers cover the broader lawn mower market, the push mower serves a different segment, which is much smaller. Baby Boomers, who are the largest group in the population are reaching the "empty nest" stage of the Family Life Cycle, when they are likely to move to smaller homes. Incomes are near their peak for people in their 40s and 50s. People are looking for "upscale simplicity" Many are moving to small city homes with small lawns. Interest in environment and exercise supports push mowers. There seems to be little in this area. Legislation might favour push mowers, but there seems little pressure for it. On the one hand, modern technology doesn't seem to apply to push mowers. On the other, gas and electric engines are becoming more efficient. Clearly, American Lawn Mower dominates the push mower market. It makes low end mowers, judging from the Canadian Tire offerings, and may make higher end machines. However, it does not seem to be showing much interest in the trend to push mowers; rather, it is simply responding to getting more orders. Electric and gas mowers dominate the lawn mower

The Products

Demographics

Social/Cultural

Economic Political/Legal Technological

Competition

market. Lawns seem here to stay, so some machine is needed by almost every homeowner. One potential competitor is the use of spreading shrubs or rocks or bricks as a substitute for a traditional grass lawn. Greenkeeper Mowers Keith Damien has a good, well-engineered product that delivers superior performance for cutting lawns. He has taken the time to develop a machine that makes use of modern technologies and can be produced at costs ($150/unit) that seem to allow for reasonable profit margins (if sold at $200 each). However, he does not presently have distribution for the product.

Several segments are clearly identified in the case and we can put together what each seems to want in terms of the 4Ps: Segment Product Casual Gardener Serious Gardener Urban Women

Basic gas or electric Fancy mower-- gas Those with small lots may mower for large lawns, want push mower push for small? Low $100 to $300 Canadian Tire, hardware High $250 to $500 Mid $200 to $400 Garden Centre, Home Depot Stress quality, simplicity, good results. Use local media, in-store, perhaps co-op Garden Centre, local hardware Stress practicality, exercise benefits, environmental advantages, quiet operation. Local media, in-store brochures, advice from sales people.

Price Place

Promotion Stress price, selection, easy to find. Use larger media, perhaps national newspaper ads

Note that we have touched on each of the key areas of environmental analysis to ensure we didn't miss anything major. The main things that arise are in the social/cultural and demographic areas. Together, they show a large group of people who would seem to be a potential market for push mowers. We have also developed profiles of the various segments and the 4Ps that make sense to them. The value of doing this is that we understand what the various groups of consumers want and, from that, determine the marketing strategy that would best meet their needs. At this point, we still have made no decisions on our strategy. We are making sure we really

understand the market and identifying the things people want. Take the time to complete your environmental analysis well and you are on the road to a solid marketing plan. For more on situation analysis, click here. Executive Summary ~ Current Situation ~ SWOT Analysis

SWOT Analysis
Opportunities
• • • •

Serious gardeners, who take real pride in their lawns want top-quality lawn mowers to do the job right. Urban residents with small lawns (typical of many trendy urban renewal areas) need only a simple mower. Women prefer simpler lawn-cutting machines which do not create noise or air pollution. Those seeking a simpler lifestyle and wanting exercise at every opportunity could see the lawn mower as desireable.

Threats
• • •

American Lawn Mower seems to be a laid-back competitor, but it might wish to maintain its dominance by creating machines to serve the emerging segments. American may react fiercely to the entry of a new competitor in the field. People are notoriously fickle when it comes to concerns like the environment -would they really want push mowers when push comes to shove?

Here are some ideas on strengths and weaknesses you might find in this case. Review the section on SWOT if you are not sure how to go about this. Above all, make sure these are internal issues! Strengths * Good product * Engineering background * Market research * Environmentally sound * Looking for strategy * Partner in manufacturing Weaknesses * Limited production capacity * Little marketing knowledge * Limited production capacity * High price needed * High cost structure * Apparently low budget

From this SWOT analysis, the various segments identified are the major Opportunities which arise. Competition seems to be the main Threat-- would American Lawn Mower move into the high end of the market if Damien had a good machine? As for the Strengths and Weaknesses, there are more that could be pulled out, but this list is a good start. Note it is in point form, making it easy to review later when you are getting facts. All the points are things that are within his control and are often part of his 4Ps Be careful with this stage of your marketing plan analysis, as it is easy to jump to several “;knee-jerk”; recommendations, which will deal with single issues. Hold your thoughts on recommendations until the strategy sections of the marketing plan. For some pointers on SWOT Analysis, click here. Current Situation ~ SWOT Analysis ~ Issue Analysis

Issue Analysis
Sales of existing push mowers demonstrate that this market is real. The key concern is whether people would pay more to get superior cutting quality or the good feelings associated with simplicity. Many of the segments identified here are difficult to reach in terms of their attitudes because they are so spread out. However, the urban market is more concentrated, has smaller lawns and is more likely to have individuals concerned with a simpler lifestyle. The large lawns of typical suburbs preclude them from consideration. Hence, the best segment that fits with Greenkeeper Mowers is urban residents, particularly women. Note that this section mulls over the issues, but comes to a conclusion -- one that will shape everything to come. For pointers on Issue Analysis, click here. SWOT Analysis ~ Issue Analysis ~ Objectives

Objectives
Damien should aim to sell 3,000 mowers over the next year. There is only one objective here, but why would more be needed in this case? This keeps it simple and we have plenty of work to show how we can meet that sales target. To learn more about SMART Objectives, click here. Issue Analysis ~ Objectives ~ Marketing Strategy

Marketing Strategy

Damien should select urban women as his primary target market, with urban males as a secondary target. Urban is defined as areas with large concentrations of renewed, upscale housing. The Greenkeeper should be positioned as “Right for your lawn and the environment“. This conveys the quality work it does and its environmental soundness. Damien should price the product at $300 retail (assuming a 33% margin) and should distribute to traditional hardware stores located in the target market areas and at garden centres which serve those areas. Promotion should be in-store (brochures, perhaps attached to the handles, or displays). The message should stress the simplicity, exercise benefits, environmental soundness and practicality of the machines. The superior cutting action should be secondary. Personal selling will be important, however, so work needs to be done to ensure that staff at these outlets are well aware of the benefits of the product. Probably the largest challenge facing Damien is getting distribution. If he goes through many independent hardware stores and garden centres, he must do a great deal of personal sellling and make many calls to get people to carry his products. They will sell in low volumes at all these stores and he may find some retailers wanting to drop the line if it doesn't move fast enough. While there are some chains in the business, the fact is that he will have a lot of travelling and selling to do! Does he have the skills and time to do this? Also, since the machines are bulky, they will pose inventory problems. Note how the recommendations clearly spell out the target markets and 4Ps. Also, note how the strategies are justified and their deficiencies noted. This kind of balanced view in a marketing plan is important to show risks are being recognized. A case could also be made going after serious gardeners as the target market. Each individual will bring their own judgement to bear on this. There is not much of a case to be made for the casual gardener segment. It is hard to see why these people would be interested in push mowers. That's why we did the analysis! This sample of a marketing plan reflects one way of approaching the task; others could describe segments differently and arrive at slightly different conclusions, for example. To learn more about Marketing Strategies, click here. Marketing Strategy ~ Action Plan ~ Pro Formas

Tactics (Action Plans)
Keith has the product, so his principal task is to start knocking on doors to get hardware and garden stores to carry the mower. He should start with the “trendy” areas in the urban core and seek out local hardware stores that serve them.

He needs to get a colour brochure prepared that will be hung from the handle of the product to explain its benefits. It is important that this “silent salesman” be there, as it is not wise to assume store staff will do a good job explaining it. Estimated cost is $3,000 for 3,000 copies. Keith should identify and visit local business shows at which potential retailers might be found. Demonstrations, especially where potential buyers could try the machine on a real lawn, should also be planned where feasible. For pointers on Action Plans, click here. ACME's Quality Management System has been updated from ISO 9001:2000 to the latest version ISO 9001:2008. US certification body Orion Registrar Inc has made this recommendation after successful completion of transition assessment headed by Mr. Fred Nelson during March 23-25, 2009. Board of Directors of the company appreciates the concerted effort of all members of ACME family, which made this remarkable achiev

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