• Introduction: Telemedicine
• Objectives &Mission Statement
• Target Market
  • Market for Telemedicinal Products
• Competition
• Product Features: Healthy Robot
• Core Marketing Strategy
  • Identification of Unique Selling Proposition
  • Operational Excellence
  • Customer Intimacy
  • Growth & Innovation Strategies
• Marketing Mix
• Pricing Strategy
• Channels of Distribution
• Customer Relationship Management
• CRM Cloud Infrastructure
• Conclusion
• References

Introduction: Telemedicine

Telemedicine is a mixture of IT and telecommunication that offers remote clinical health care facilities (Transparency Market Research, 2012). It aims to eliminate the obstacles confronting patients and ordinary individuals when waiting in line for even basic health criteria in hospitals and health clinics. The products can come in various forms right from the official website to other forms of medical devices. The combination of voice, videophone, photography, and health informatics data from one specific site to another involves the different types of telemedicines. The primary goal of telemedicine will be to address the interests and needs of people residing in remote areas and who do not have the financial resources to purchase goods. Along with emergency assistance and various types of health care equipment, they often come with extra devices. The thesis would discuss the introduction of a fictional medical robot that is a type of telemedicine that will aim to tackle numerous complicated issues of health care. The marketing efforts involved in initiating the introduction of the medical robot system would be included in the author of the report. Finally, the analysis would end with the different methods of Consumer Experience Management employed by the management to reach the target market deeper.

Objectives & Mission Statement

The company’s mission will be to offer state-of-the-art telemedicine services, which will enable patients with some health benefits that most medical companiesare unable to deliver.

The company’s mission will be to provide state-of-the-art medical facilities and equipment that could draw patients and consumers’ interest. The health report produced by these monitoring instruments would not include a medical summary of the condition, it would still include a comprehensive review of the patients’ steps to be taken. In brief, disseminating knowledge regarding the timely prevention steps to be taken by the patient will be the key priority of a balanced robot.

Introduction

Over the past 2 decades, the fast-food industry has experienced tremendous expansion. This has been due to the growth of competitive businesses. The longevity of firms in this sector, though, has not been so easy as they all have to compete to attract buyers in the market. This makes it easier for various firms in the sector to utilise different communication techniques to draw consumers. The UK fast food market is worth 40 billion pounds and is predicted to rise by 19% by 2018. KFC, McDonalds, Wendy’s, Taco Hill, Burger King, Sonic, Dunkin Donuts, Café Coffee Day, Subway, Barista, Dominos and Pizza Hut are the main businesses in the sector. McDonalds is the largest competitor in the sector and holds 18% of the business (King, 2013). Dominos and Pizza Hut have built a reputation for innovation for the past two decades, which has earned consumers and other business experts confidence. Dominos and Pizza Hut have gained revenues thanks to their marketing campaigns during the last five years. Dominos’ earnings for the period of 2010 and 2014 were £ 251 million, £ 280 million, £ 305 million, £ 399 million and £ 405 million, respectively (Market Watch, 2015). Pizza Hut’s income, on the other side, were £ 400 million, £ 450 million, £ 600 million, £ 700 million and £ 760 million (Novak & Creed, 2015).

Notably, marketing itself is a strategy that organizations employ to communicate with the consumers to make them knowledgeable of the services and products offered (Kotler & Armstrong, 2014). Marketing is particularly essential as it gives the company an edge against the rival firms (Boone & Kurtz, 2015).  A marketing strategy engrosses the products offered, the pricing of such products, the promotion of the products and their distribution. This report will give the marketing milestones that Pizza hut and Dominos have achieved and the differences in their marketing strategies within the United Kingdom.

Marketing Strategies

Since its incorporation in 1995, Dominos has endeavored to be the world’s best pizza delivery company. The company strives to bring accessibility, pleasure and happiness to its consumers through delivering pizza at their door steps (Farrell, 2014). The company also strives to introduce products that best satisfy the needs of its customers. Though it’s an international company, the company acts locally within the UK by offering delicious local tastes. The company’s slogan such as “fun meal” has been famous among the customers. Consequently, Dominos delights in a high market share of 9% in the UK market (King, 2013).

On the other hand, Pizza hut has developed from a small franchise in Kansas to the world’s largest pizza chain. It has more than 650 restaurants across the United Kingdom and continues to grow (Statista, 2015). Pizza hut has for the years emphasized on product quality through offering its consumers value for their money.  This has made Pizza hut enjoy a high market share of 11% in the UK fast food market.

Though these companies are giants in the fast food industry, they unceasingly differ in their marketing strategies.

1. The marketing mix
2. Product

The basic product offered by Pizza hut is the fulfillment of basic need of satisfaction and pleasure (Bhasin, 2014a). Pizza hut obligates itself to providing unaltered product quality and giving the customers value for money. Another acute aspect in Pizza hut’s achievement has been its exceptional dining experience (Halzack, 2014). Every employee at the Pizza hut’s restaurant strives to offer “customer mania”, a service that guarantees that the customer’s experience is memorable. This has given it an edge to attract more customers.

Pizza hut attracts customers with its exceptional features in its offering. Pizza hut differentiates itself from Dominos and the rest of the competitors through its diverse products that include pizza, cakes, pasta and desserts.  Pizza hut offers customized pizzas by allowing the customers to select the bread crust and the toppings to be included. This allows the customers to custom make their own pizza according to their wishes (Bhasin, 2014a). Another distinguishing factor is how Pizza hut handles customer orders. When a customer gets into a Pizza hut restaurant, attendants always rush to the customer and provide them with menus and wait for the customer’s order (Halzack, 2014). This is intended to increase the customer base by attracting new customers that value customer service. Pizza hut only provides pizza packing for the take away orders. In in-house dining, Pizza hut serves pizza on hot pans and plates.

On the other hand, Dominos offers similar products to those of Pizza hut. Dominos has food as the primary product as opposed to Pizza hut that offers experience and satisfaction. This makes it a place of just an individual who wants to satisfy their basic need of a pizza (Halzack, 2014). Dominos has constantly differentiated its products in order to attract customers.  Unlike Pizza hut that differentiates its products through exceptional features of its pizzas, Dominos differentiates its products through offering a wide range of products (Bhasin, 2014b)

Dominos also packages its pizzas in stylish paper boxes and dresses its toppings in an outstanding fashion. Nevertheless, one of the things that Dominos has been criticized for being the not-so-good ambience in their restaurants. When a person enters the restaurant, the menus are positioned on the counters as opposed to Pizza hut where attendants hand menus to the customers. This has been attributed by the fact that Dominos concentrates on delivering pizzas and does not give much attention to the dinners (Yohn, 2014). Therefore, a customer gets served pizza on paper boxes with the chili flakes and oregano mix served in pouches. This may, however, have an impact on the customer size, as they may shy away from such a bad experience.

Place

After a product has been determined and the market segmented and positioned, it is essential for a marketer to determine where and how to deliver the product to the consumer (Kotler & Armstrong, 2014). This is accomplished through the marketing channels that avail the product to the consumer. There are two types of strategies that marketers use to deliver products to customers. These are push and pull strategies. According to Boone and Kurtz (2015) the marketer employs advertising and other types of communication to convince the customer have the product through intermediaries in pull strategy. On the other hand, the push strategy entails the marketer using the sales force to convince intermediaries to offer and sell its products to the patrons (Boone & Kurtz, 2015). Pizza hut uses the pull strategy where it advertises and promotes its products and outlets through media. On the other hand, Dominos pursues the push strategy where it introduces sell-in plans with minimal advertising.  Notably, Dominos has almost 811 outlets within the UK while Pizza hut has 656 outlets across all cities within the UK (Statista, 2015).

Pricing

The people in the UK are both price and value sensitive. As a result, in order to offer high quality products, the companies have incurred high costs that have pushed the prices up. However, because of the extreme rivalry in the market, the company has introduced discounts and price cuts. Dominos offers its products at a discount such as the offer where customers can get four pizzas at £20 (Bhasin, 2014b). This allows the company to target the middle income earners and increase its customer base.

On the other end, Pizza hut focuses on offering its products to the premium customers by setting high prices for its products. This is because it offers high quality pizzas and ambience compared to its competitors in the market (Bhasin, 2014a) Additionally, even though its prices are higher than those of competitors, it also offers discounts that push its prices below those of the competitors (Young, 2010). This high/low strategy allows the company to segment its market efficiently and stresses on product quality.

Promotion

According to Kotler and Armstrong (2014), promotion refers to the communication that a market employs to inform and persuade the consumers to purchase a product. As a result, promotion is a vital aspect of any product or service. In the present-day business setting, marketing is more treasured than just providing a decent product (Boone & Kurtz, 2015). The fast food market in UK has been promotion driven. Both Dominos and Pizza hut have been actively promoting their products through discounts and coupons given at all pizza delivery stores across UK.

Dominos has over the years targeted customers between the age of 14 and 35 from the low, middle and high income groups. The firm targets this cluster of patrons because they would not mind paying for the accessibility (Young, 2010). Furthermore, Dominos targets the group because it is the most active group that purchases pizzas.  Conversely, Pizza hut employs a wide variety of promotional approaches (Halzack, 2014). However, its primary promotion is the use of coupons distributed through mail and flyers that are distributed to institutions and colleges.

Communications Mix

The dominos communication mix is comprised of “advertising, public relations, sponsorships, personal selling, word of mouth, and sales promotion” (Kotler & Armstrong, 2014). Domino’s advertising vision is centered on the slogan “Exceptional people on a mission to be the best pizza delivery company in the world” (Yohn, 2014). Its ads are grounded on the ultimate capabilities of the company such as the 30 minutes delivery advert. Dominos is also involved in sponsoring college festivals and cultural programs across UK. Dominos also uses personal selling through its involvement with the customers at an emotional level. Additionally, Dominos has capitalized on word of mouth by offering low prices and good quality.

Pizza hut’s Communication mix consists of “advertising, public relations, sponsorships, and direct marketing, personal selling and word of mouth” (Boone & Kurtz, 2015). Pizza Hut uses these adverts to sensitize people on its products and woo them to buy them. Television ads account for 94% of Pizza Hut’s paid advertising media as opposed to 92% of Dominos (Young, 2010). Pizza hut’s adverts have included the young and the old. This shows that Pizza hut not only targets the young, but also the old. By utilising the internet, Pizza Hut has even acquired an advantage over Dominos. Pizza Hut utilises the internet to facilitate direct and collective marketing (Young, 2010). Pizza hut delivers occasional facilities such as birthday updates and the discounted E-coupon is booked digitally. A social networking policy that involves a robust software on Twitter, Google Plus, Youtube, You Tube and LinkedIn has also been adopted by Pizza Hut.

Market Segmentation and Targeting

Both Pizza Hut and Dominos segment their market “geographically, demographically, behaviorally and through psychographic” (Kotler & Armstrong, 2014). Geographically, Dominos and Pizza hut have segmented their markets according to city classes such as small towns and metros (Yohn, 2014). Demographically, Dominos has segmented its market according to age by targeting customers between the age of 15 and 35 and family income (Farrell, 2014). Pizza hut has also segmented its market according to age by targeting all ages and family income. Pizza hut employs behavioral segmentation by targeting occasions such as birthday parties, and user status while Dominos segments such a market through targeting the customers according to their user status and loyalty status (Halzack, 2014).

Conclusion

Pizza hut and Dominos are both aggressive rivals in the present pizza market in the United Kingdom (Halzack, 2014). These companies have been competing on the same market niche with similar demographic attributes that has made the comparison be grounded on a flattened ground. Generally, the two pizza giants have attained what they aspire (Young, 2010). Dominos has positioned itself as a quick serving pizza outlet while Pizza hut has positioned itself as the pizza outlet with the best quality products and exceptional dining experience (Bhasin, 2014a; Bhasin, 2014b). Pizza hut is also devoted to giving its customers unaltered product quality that gives the customers value for their money. This has allowed Pizza hut to position itself through its premium prices. Alternatively, Dominos has dedicated itself to offering products that suit the distinct tastes of the customers. It is clear from this analysis that, in their own way, the two firms deliver nice tasting pizzas. However, Pizza hut has a holistic marketing strategy that not only focuses on the product, but also on customer experiences.

Recommendations

Dominos has to change the dining conditions in order to target premium customers and improve on customer experience. Additionally, they can bring in TVs and music at their restaurants. On the other hand, Pizza hut should also target the middle income earners, which is a huge consumer group in the UK. In addition, there are few Pizza hut outlets within UK compared to Dominos making them inaccessible to some people. Therefore, Pizza hut should increase its presence across the nation.

References

• Bhasin, H. (2014, October). Marketing mix of Pizza hut – 7 P of Pizza hut. Retrieved April 23, 2015, from http://www.marketing91.com/marketing-mix-pizza-hut/
• Bhasin, H. (2014). Marketing mix of Domino’s – Domino’s marketing mix. Retrieved April 23, 2015, from http://www.marketing91.com/marketing-mix-dominos/
• Boone, L., & Kurtz, D. (2015). Contemporary Marketing. Cengage Learning.
• Farrell, S. (2014, January 9). The rise and rise of Domino’s Pizza | Business | The Guardian. Retrieved April 23, 2015, from http://www.theguardian.com/business/2014/jan/08/dominos-pizza-sales-up
• Halzack, S. (2014, October 16). Domino’s vs. Pizza Hut: One is piping hot and one needs reheating – The Washington Post. Retrieved April 23, 2015, from http://www.washingtonpost.com/news/business/wp/2014/10/16/dominos-vs-pizza-hut-one-is-piping-hot-and-one-needs-reheating/
• King, M. (2013, November 28). UK fast food market led by McDonald’s with over one-third of value sales in 2012. Retrieved April 23, 2015, from https://uk.finance.yahoo.com/news/uk-fast-food-market-led-000000574.html
• Kotler, P., & Armstrong, G. (2014). Principles of marketing. Harlow [etc.: Pearson.
• Market Watch. (2015). DPZ Annual Income Statement – Domino’s Pizza Inc. Annual Financials. Retrieved April 23, 2015, from http://www.marketwatch.com/investing/stock/dpz/financials
• Novak, D. C., & Creed, G. (2015, January). 2014 Yum! Brands Annual Report. Retrieved April 23, 2015, from http://www.yum.com/annualreport/
• Statista. (2015, January). Pizza Hut: restaurants by region 2014 | Statistics. Retrieved April 23, 2015, from http://www.statista.com/statistics/256828/pizza-hut-restaurants-worldwide/
• Yohn, D. (2014, November 25). A Tale Of 2 Pizza Turnarounds – Pizza Hut Vs. Domino’s – YUM! Brands, Inc. (NYSE:YUM). Retrieved April 23, 2015, from http://seekingalpha.com/article/2709255-a-tale-of-2-pizza-turnarounds-pizza-hut-vs-dominos
• Young, A. (2010, September). Pizza Hut vs. Domino’s: Who Had the Best Media Strategy? | Media – Advertising Age. Retrieved April 23, 2015, from http://adage.com/article/media/pizza-hut-domino-s-media-strategy/139027/

Introduction

In the modern business world, customers form a major part of any organization. In fact, as it is noticed by every single individual without any doubt that no firm can operate without customers. Thus, to this most demanding element in customer satisfaction, there exist market gaps that can be exploited by new organizations. Indeed, the customer department does have a significant role to play if the organization is to succeed. This opportunity was hence the motivating factor behind the formation of American Delivery Department Company. It is an organization that delivers goods and services of other companies who finds it difficult to provide them to their customers. As a result, companies can find easier alternatives to satisfy the customer needs. Consumers are motivated by this extra service that the company provides to them increasing their trust with the manufacturer.

Executive Summary

There has been an increased demand for companies to provide clients with personal experiences over the last few decades. Major organizations find ways to reach out to the client in delivery form. American Delivery Department provides them with the opportunity to fulfill their objectives. ADD, will deliver those company products which cannot make it up to their clients. This market gap has initiated the formation of the ADD Company. Due to many customers that are served by the similar institutions, they cannot reach them in person and will have to hire other firms such as ADD on their behalf. Furthermore, companies nowadays are in the need to find customer response concerning their products so that they can evaluate where to improve their production, a desire that ADD will offer as an extra sales services to the respective organizations.

Due to the serious nature of the industry to proffer such services, ADD organization has a market opportunity that will ensure productivity. The population is increasing by the day those results in increased customers to many companies. Due to problems of reaching all the customers, ADD will be hired by most organizations to oversee the service delivery. Our costs are relatively small that will attract major customers for our services. American Delivery Department, therefore, has already market that will increase its sales leading to high revenues. Though, competition is stiff in the industry, the organization majorly targets average and small organizations that market leaders are not concerned about. The company will be assured henceforth to make an impact on the market and become a force to other rival firms.

Benefits to the Community

The American Delivery Department is expected to benefit the majority of the population. Customers save a lot of time that they might otherwise used to collect the product from the company. The community hence can use the extra periods to venture into other production ways that improve their livelihood promoting their welfare (Casadesus, Ramon, and Joan, pg 103).The consumer will also save costs such as travel, hiring of carriers of the products to their premises making them have a lot of reserved income. More money saved means the customers have more cash to spend in other areas increasing their consumption bundles. The society can then maximize their utility.

There is straight interface between the customer and the service providers. This enables the exchange of information between the consumers and the company so that any complaint they have is remitted to the manufacturers. The producers can make the necessary changes that improve their products making the consumers enjoy high-quality goods. American Delivery Department will have to employ a majority of its workers from the communities. It is because they are familiar with the environment and would help in quick deliveries. The society members will be provided with jobs that generate income to them so that they can manage their livelihoods.

Company and Industry

The shipping industry in the United States is very competitive and American Delivery Department must be creative if they are to establish a force in the market. The major players such as United States Postal services and YRC worldwide are two big firms that almost have more than a 50% of the market share. The firms enjoy an extensive civilian delivery in America. They, however, major with the big organizations for their services and charges high prices that small companies cannot afford. The Market gap is hence inevitable that provides an opportunity for ADD to make profits from the industry.

Competition is stiff while entry and exit are neither prohibited from the industry. Due to increased revenue and profits, entry into the market is guaranteed making operations more complicated. Firms will have to adopt other ways of competition rather than price if they are to sustain themselves in the market. ADD plans to offer quality delivery and employs the use of modern technology that ensures security to the products. In addition, the company will use simple delivery tracks that are cost effective so that the operations costs are substantially reduced. These measures will provide a competitive edge over the rival firms. The proximity of the business, as it is located in the city avenue of Philadelphia, is also attractive for accessibility that attracts more clients which increase revenue to the organization.

Management Team

Management forms a major part of any organization since they are tasked with daily operations of the business. Policies formulation and implementation majorly comes from them as they are the intermediaries between the owners of the business and employees (Casadesus, Ramon, and Joan, pg 103). ADD owners comprise of three persons and plans to hire two managers to oversee the daily business activities. This will involve the management team. However, the team is bound to increase with the business growth so that we maximize on the profits. The managers will be experienced individuals who have worked in the delivery sector. They are well placed to steer the organization forward since they understand the market better. These persons also have negotiation skills that can help us to seal contracts with the respective firm that offers business opportunities for the ADD. The company will also hire various staffs that will work hand in hand with the managers to ensure efficiency in delivery. These personnel include drivers whom will be tasked to deliver goods to the customers using vehicles or tracks. Other employees include Individuals that will load and offload goods and services at producer and customer destination respectively.

Manufacturing and Operation Plans

The business core objective is to deliver other company products to the relevant customers. Thus, the producers of the goods will have a binding trade agreement with ADD, to provide them to customers who cannot collect them at the manufacturer point. The management team is hence asked to bid for such contracts with the many manufacturer firms that ensure the goal of the business objective is achieved. Therefore, the many business opportunities we get, the higher the production.

The business tracks in case of heavy goods and cars are moved to the manufacturer destination to collect the items for shipment. The transportation vehicles are also marked with our special business logo so that customers can easily identify them while on transits. Each car will move to a particular route as determined by the management. The customers are also expected to provide unique codes that so that the delivery team knows their specific locations. Upon arrival at the consumer point, delivery is done by our team and ensures that all the items are in good shape. This system will ensure that customers are more confident with us thus provide a good image for the business. A real image attracts more customers that increase our market to other firms leading to high sales revenue.

Labor Force

America delivery department requires various persons both who work from the office to the field distributors. At the very top are the managers that take care of the business operations on a daily basis. They are also involved in planning of the business and plan of duties to the diverged employees. Under them will individuals who act as their assistance and are responsible for different regions within the city where the business customers are based. The force reports to any improvements that should be made to any route vehicle and ensure the transition of products from the manufacturer to the customer is done in an efficient manner.

Another labor force of the ADD will be drivers and their support staff members while on transit. Each driver will be assigned two workers that help in the loading process on either side of the shipment. This will enable heavy goods and services to be offloaded with ease so that no damages are experienced and as such, quality of the delivery is ensured.

Marketing Plan

A successful marketing strategy is important, especially if it is new to the American Distribution Department, for the company’s success. It shows various positions of the venture and strategies that the firm will use to enter the industry successfully. The plan includes pricing policies, how to counter competitors, promotion, trends in the market and market share.

Nature of the Market

Delivery markets in the United States are presumably available annually and are very stable. Any company wishing to enter the industry is assured of the substantial share of the industry. The two major organizations YRC Worldwide and united states postal services only commands a proximately 60% leaving a wider niche for the small firms. Supply and demand are expected to be high during significant parts of the year assuring ADD of a constant market. Due to the reliable market within the industry, the company can then plan on how to improve its services and delivery process without any disturbances throughout the calendar year.

Market Trends

There has been an increased manufacturer in the city of Philadelphia leading to high competition among the organization. The companies compete in ways such as the delivery of products to consumers so that their clients are satisfied. But the population has also risen in the recent past leading to many users whom fully require delivery of the products at their door steps. An increasing trend of contracting or hiring an outside distributor is on the demand. Various producers also aspire to have direct interactions with the consumers that are made possible by the delivery of the products. These trends nonetheless are expected to continue in the industry that will make ADD have improved revenue enabling easier growth.

Competition

The competition in the market is stiff and is majorly generated through three various fronts. The market is free entry zone due to the increased profits; hence, many firms are likely to join the industry to share the boom (Casadesus, Ramon, and Joan, pg 104).The firms in the industry offer almost similar service in delivery, and the threat of substitutes is high. A customer will easily shift to a rival company quickly since they can access the same service. As a result, ADD will have to remain to its core objectives and offer quality delivery if they are to rival other organizations. Another competition is generated from within the industry where two large distribution firms in the market have a market share of nearly 60% leaving the small firms to fight for the remaining share. The condensed stock makes the competition so high that the existing firms will have to compete by other means such as quality rather than price.

Market Share

More than half of the market share is occupied by the United States postal services and YRC Worldwide shipment companies. However, they majorly deal with big firms leaving a considerable share for other firms. A majority of the organizations are free to enter the market that provides for rivalry in the industry. American Delivery Department targets majorly the small and medium firms as the major customers. These target groups are majorly available and will provide more than enough trade for the business. For the first year, the business might be low, and the company only needs to acquire 5% of the available market share. This ratio will make the company meet its operations costs with ease even though profits are little. For the second year, stability will have been ensured, and we expect annual growth market share of 3% was making ADD become one of the most profitable small organizations around the delivery process.

Pricing

The most significant aspect of a business campaign is the pricing policy. Price is key to the customer availability concerning a particular product. For ADD, we plan to start at relatively reduced prices that will be charged to our clients while maintaining quality of the service. This strategy will make the organization attracts customers for our services. Increased customers will make ADD acquire a bigger market share and improves its performance. Price determination, however, will be based on the distance covered by our vehicles. This implies that there will be price difference since if the delivery is to be made at longer distances, it is only fair that the client compensate fairly. ADD then can avoid losses due to insufficient payments that might make our business bankruptcy in early stages of operations.

Promotion

Development involves creating public awareness concerning the availability of American Delivery Department. The organization is still new and do not have big capitals to spend on large advertisements as on televisions. Furthermore, we are still just located within the city of Philadelphia. The company hence would create its website that any client can log into and access our services. We would also use social media such as Facebook, twitter and Google to market ourselves. ADD companies will offer delivery services such as feedback information from the consumers to the relevant manufacturers so that the producers can always know if their customers are satisfied or where to improve. By doing so, the organization can create a good rapport with various manufacturers increasing our chances of attracting more clients.

Distribution and Service Policy

The distribution channels will involve collecting products from the producers to consumer destination. The movements are based on individual routes making various stoppages so that those whom the vehicles do not reach their homes can find their products at particular points. ADD and manufacturers will assign the agreement to the consumers that customers do not accept products that are tampered with or do not meet their delivery expectation. The policy will ensure precise transportation measures are adhered to so that consumers are satisfied with their best.

Financial Plan

It is the business part that determines the success of the venture. The capital provided will be majorly from the contribution from the business owners. This amount will be invested into purchasing the business assets such as vehicles that forms the major trading of the business. Nonetheless, the operation costs will be high that the business will have to acquire an extra loan facility of about $150,000 since a lot of cash will be trapped in the major assets that take too long to recover. Below therefore provides for the projected financial flow in the first year and second year of the business operation.

                                                            1^st year                        2^nd year

Startup capital                                    $200,000                     $150,000

Income from sales                              $80,000                       $110,000

Total                                                   $280,000                     $260,000

 Costs

Rental of office year                           $30,000                       $30,000

Buying of used vehicles                     $120,000                     –

Renovating of the vehicles                 $20,000                       $30,000

Salaries to employees                         $72,000                       $84,000

Office equipments                              $10,000                       $20,000

Miscellaneous expenses                     $10,000                       $15,000

Trade license                                      $5000                          $5000

Vehicle maintenance                          $20,000                       $30,000

Web design                                         $3000                          –

Web maintenance                               $1000                          $1000

Advertisements                                   $5000                          $3000

Office travel                                        $1000                          $1,300

Service loan                                        –                                   $20,000

Total annual expense                        $297,000                     $237,000

Profit                                                 ($17,000)                    $13000           

The business makes losses in the first year. It is majorly attributed to the high operational costs. The sales are also relatively low since the business is new and having low publicity. However, in the second year, sales are expected to increases by 30%. The business will apply for a loan of $150,000 to supplement the operations from the second year which will be paid at the rate of $20,000 annually. This will help stabilize the company and compete fairly in the market.

Breakeven Point

It is the point where the business will start recording profits. Basically it will be at the second year of the business operations. The average price of charged by the company will be $60 per kilometer of the distance covered by the vehicles. The average cost is $35. The average fixed cost for the month is estimated to be $10000.

            Break even point         = fixed costs/ (average sell price-average cost)

                                                = 1000/ (60-35)

                                                =1000/25

                                                =40

The business needs to breakeven point operating 40 per hour. If the business was to charge more than $60 per kilometer, then they will make losses as the customers will shift to the rival firms. But if the organization was to charge lower than $60, the business will make losses since the operating expenses will be so high.

Exit Strategy and Succession Plan

The American delivery department will operate as distinctive entity with the owners being the sole financiers of the basis. Over time, the business will grow and expands to other cities and region such as Washington and Los Angeles and if possible become an international firm like YRC worldwide delivery services. The growth and diversity will increase the company revenue and become competitive both in the short run and long run increasing its market share (Casadesus, Ramon, and Joan, pg 102).

However, this growth would require a substantial amount of capital for investments. First, the organization plans to go public by selling a 40% of its stake. It is a healthy way of generating capital for the organization. These funds would provide necessary capital that would speed up growth into other places while diversifying the business. Diversity ensures that income is not dependent on one source leading to the security of the company. Shareholders will also act as a motivating factor for the business to grow as they would require dividends. Another strategy for expansion will be to franchise the business. It would provide for capital venturing and management from the experienced organizations so that the business can grow properly.

Risks and Assumptions

Risks are part of any business and ADD has its chances within the industry. First the company is established in an industry where competition is high and major firms have already established their authority. Under these circumstances, the probability of failure is high but the organization will take their chances. Mitigating this risk is hence a priority. ADD believes and will target small firms as the major customers. We will also offer extra service information that our competitors are not providing. Due to the strategy, ADD will attract more customers that will make the organization to succeed. Another risk is the capital needed for the startup of the business. In case the company makes losses, the future operation may be hampered. But ADD have formulated ways to borrow loans from financial institutions that will ensure such breakdown never exists or are minimized.

The industry is assumed to be relatively competitive, and there are free entry and exit. Therefore, firms will make their decisions regarding production. The Market of the delivery services is also believed to be annual that no fluctuations occur during the financial year. This assumption will ensure that the organization will have business the whole year.

Work Cited

• Casadesus-Masanell, Ramon, and Joan E. Ricart. “How to design a winning business model.” Harvard Business Review 89.1/2 (2011): 100-107.

Table of Contents

• Introduction
• Company That Enhances the Use of Sustainable Marketing
• Organization Development Stage
• Understanding the Concept of Sustainability Led Marketing in Small Business
• Assessment and Evaluation of the Aspect of Sustainable Led Marketing. 
• Conclusion
• References

Introduction

Scholars and economists like Theodore Levitt have delved into the topic of ads powered by sustainability. The objective of participating in marketing powered by sustainability is to emphasise the value of taking into account business potential and product characteristics, aimed at assessing consumer loyalty. Sustainable marketing, according to Dahlstrom (2011), is a way of encouraging environmentally friendly goods at the retail level and improving the contribution of a business to sustainable activities for the public. Mostly, in a specific sense, efficient conventional marketing processes are utilised. Sustainable marketing seeks to draw buyers that have adapted to environmentally safe goods produced by firms who have adopted sustainable manufacturing. Companies aim to change their manufacturing practises with a sustainable organisation to mitigate the side effects it causes on the climate. A sustainable organisation involves minimising air waste, water contamination and the manufacturer’s side effects on the consumer consuming the product or service (Meffert et al. 2014, p. 156). Sustainable company is more of an entity aiming at enhancing or upholding corporate social obligation for the community in which it exists.

 References

• Belz F-M & Peattie, K. 2010. Sustainability marketing: a global perspective. Hoboken, N.J: Wiley.
• Burmann .2010.Sponsored user-generated branding p. 2.
• Cooney, S. 2009.  Build a green small business: profitable ways to become an ecopreneur. New York, McGraw-Hill.
• Dahlstrom, R. 2011. Green marketing management. London: Cengage.
• Grant, J. 2009. The Green Marketing Manifesto. Chichester: John Wiley & Sons, Ltd.
• Korkman, O. 2006. Customer Value Formation in Practice: A Practice-Theoretical Approach. Report A155. Helsinki: Han ken Swedish School of Economics Finland.
• Meffert, H., Kenning, P., Kirchgeorg, M., & Wobker, I. (2014). Sustainable marketing management : grundlagen und cases. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=930928.
• Mintel. (2014, October 23). Mintel releases 2015 US consumer trends. Retrieved April 2015, from http://www.prnewswire.com/news-releases/mintel-releases-2015-us-consumer-trends-813911160.html
• Penfield, P. 2008. “Generating for the Environment, Drive down costs while helping Mother Nature.” APICS Magazine, Vol. 18
• Philips Lumileds Lighting Company. n.d. Retrieved from http://www.lumileds.com/.
• Rennie, E, 2008. “Growing Green, Boosting the bottom line with sustainable business practices.” APICS Magazine. Vol. 18.
• Rothwell, W. 2010. Practicing organization development a guide for leading change. San Francisco: Jossey-Bass.
• Silberman, M. & Hansburg, F., 2006. Working People Smart 6 strategies for success. San Francisco: Berrett-Koehler.
• Sneirson, J. 2009. “Green Is Good: Sustainability, Profitability, and a New Paradigm for Corporate Governance”. Iowa Law Review 94(3), p. 987.

Executive Summary

Atlantic Quench Cranberries is a cooperative that manufactures juice located in the United States. The cooperative was founded by two grape farmers around 80 years ago, and later the cooperative was joined by Florida grapefruit growers. It has a composition of about 630 cranberry and 46 grapefruit farmers in the current period. Since 1981, the cooperative has grown into North America’s best-selling brand of canned and bottled juices.

The below is an overview of the marketing strategy for Atlantic Quench Cranberries Inc. The goal of this plan is to keep the best-selling juice drink in North America and Europe for cranberry items. This strategy would use Political, Fiscal, Sociological, Technical, Environmental and Legal (PESTEL) research to carry out macro environmental analysis for Atlantic Quench Cranberries (AQC), focusing on the forces that are most important to the AQC business in order to determine any future strengths, prospects and risks of vulnerabilities. The primary target of the marketing campaign is the population that is already extremely competitive for natural and balanced beverages. The expense of conducting consumer analysis, differentiating goods, and selling the enhanced products would be compensated by the marketing campaign expenditure. The emphasis of this communication campaign is to make sure that this company’s healthier goods meet the target market.

Introduction

Juice beverages with cranberry varieties are part of the Cranberry goods. In 2002, in order to attract desired buyers in the convenient business, the cooperative launched the Cranberry Classic 250 ml into the industry. AQC expanded its goods from ‘light’ low calorie fruit beverages in 2003. This included cranberry and blackcurrant, raspberry and cranberry, and mango and cranberry. Later in 2004, as a sweeter and cleaner option to red cranberry juice drinks, a white cranberry juice drink was introduced and marketed. These initiatives were launched in order to directly address the fast-growing market of chilled beverages. In 2005, a cranberry and mandarin juice drink was unveiled on the market.

References

• Abratt, R. (1993). Market segmentation practices of industrial marketers. Industrial Marketing Management, 22(2), 79-84.
• Bai, Y., Feldman, C., Wunderlich, S., & Aletras, S. (2011). The USDA Fresh Fruit and Vegetable Program Application in a Northern New Jersey Elementary School: Parent and Teacher Perceptions. Journal Of The American Dietetic Association, 111(9), A65.
• Biggadike, E. (1981). The Contributions of Marketing To Strategic Management. Academy Of  Management Review, 6(4), 621-632.
• Bigné, E., Moliner, M.A. and Sánchez, J. (2003) Perceived quality and satisfaction in multiservice organizations: The case of Spanish public services. Journal of Services Marketing 17 (4/5): 420–442
• Brochado, A., & Martins, F. (2008). Market Segmentation Methodology: segmentation basis and classification methods. Review Of Business Management, 132-149.
• Brochado, A., & Martins, F. (2008). Market Segmentation Methodology: segmentation basis and classification methods. Review Of Business Management, 132-149.
• Brooksbank, R. (1994). The Anatomy of Marketing Positioning Strategy. Mrkting Intelligence & Plan, 12(4), 10-14.
• Camanzi, L., Malorgio, G., & Azcárate, T. (2011). The Role of Producer Organizations in Supply Concentration and Marketing: A Comparison between European Countries in the Fruit and Vegetable Sector. Journal Of Food Products Marketing, 17(2-3), 327-354.
• Cherian, J., & Jacob, J. (2012). Green Marketing: A Study of Consumers’ Attitude towards Environment Friendly Products. ASS, 8(12).
• Chimhanzi, J. (2004). The impact of marketing/HR interactions on marketing strategy implementation. European Journal Of Marketing, 38(1/2), 73-98.
• Colonescu, C., & Schmitt, N. (2003). Market Segmentation, Market Integration, and Tacit Collusion. Review Of International Economics, 11(1), 175-192.
• Dahlström, P., & Edelman, D. (2013). The coming era of ‘on-demand’ marketing. Mckinsey.com Retrieved 14 April 2015, from             http://www.mckinsey.com/insights/marketing_sales/the_coming_era_of_on-demand_marketing    
• Danaher, P., & Smith, M. (2011). Modeling Multivariate Distributions Using Copulas: Applications in Marketing. Marketing Science, 30(1), 4-21.
• Dibb, S., & Simkin, L. (1991). Targeting, Segments And Positioning. International Journal Of Retail & Distribution Management, 19(3).
• Doyle, P., & Saunders, J. (1985). Market Segmentation And Positioning In Specialized Industrial Markets. Journal Of Marketing, 49(2), 24.
• Dutta-Bergman, M. (2005). Psychographic Profiling Of Fruit And Vegetable Consumption: The  Role Of Health Orientation. Social Marketing Quarterly, 11(1), 19-35.
• Gutić, D., & Petrić, T. (2012). Consumer Attitudes In Market Segmentation. Emc Review – Časopis Za Ekonomiju – Apeiron, 3(1).
• Hanlon, A. (2013). The Segmentation, Targeting and Positioning model – Smart Insights Digital Marketing Advice. Smart Insights. Retrieved 14 April 2015, from http://www.smartinsights.com/digital-marketing-strategy/customer-segmentation- targeting/segmentation-targeting-positioning-model/
• Hassan, S., & Craft, S. (2005). Linking global market segmentation decisions with strategic positioning options. Journal Of Consumer Marketing, 22(2), 81-89.
• Hunt, S. (2006). Teaching Marketing Strategy: Using Resource-Advantage Theory as an  Integrative Theoretical Foundation. Journal Of Marketing Education, 28(2), 93-105.
• Imai, K., & Tingley, D. (2011). A Statistical Method for Empirical Testing of Competing Theories. American Journal Of Political Science, 56(1), 218-236.
• Jinhee Choi and Ayelet Fishbach. (2013) Choice as an End Versus a Means. Journal of  Marketing Research 48:3, 544-554.
• Kerr, M. (2007). What Is Target Marketing? Bplans Blog. Retrieved 14 April 2015, from http://articles.bplans.com/target-marketing/
• Knutson, R., Palma, M., Paggi, M., Seale, J., Ribera, L., & Bessler, D. (2014). Role of Trade in  Satisfying U.S. Fresh Fruit and Vegetable Demand. Journal Of International Food & Agribusiness Marketing, 26(4), 326-343.
• Kotler, P., & Armstrong, G. (2004). Principles of Marketing (10th ed.). New Jersey: Pearson Education Inc.
• Kotler, P., & Keller, K. (2009). A framework for marketing management. Upper Saddle River,N.J.: Pearson Prentice Hall.
• Lazer, W., & Shaw, E. (2000). Global Marketing Management: At the Dawn of the New Millennium. Journal Of International Marketing, 8(1), 65-77.
• Loon, J. (1994). Competitive positioning: The key to marketing strategy by Graham J. Hooley and John Saunders. New York: Prentice Hall, 1993. 260 + xi pages, $32.00. Journal Of  Product Innovation Management, 11(5), 479.
• Luo, J. (2014). Entrepreneurial Marketing- How Marketers Can Satisfy Customers’ Needs When Applying Entrepreneurial Marketing Approaches. International Journal Of Advances In Management Science, 3(4), 109.
• Luther, W. (2001). The Marketing Plan. New York: AMACOM.
• Malhotra, N., & Peterson, M. (2001). Marketing research in the new millennium: emerging issues and trends. Mrkting Intelligence & Plan, 19(4), 216-232.
• Mamula, T. (2012). Role of marketing metrics in strategic brand management. Marketing, 43(1), 49-61.
• McDaniel, C., & Gates, R. (2012). Marketing research essentials. Hoboken, N.J.: Wiley.
• Mengwasser, D. (1974). H. R. Jones: Waste Disposal Control in The Fruit and Vegetable Industry. 261 Seiten, 43 Zeichn., 60 Tab. Noyes Data Corporation, Park Ridge (New     Jersey/USA) und London (England) 1973. Preis: 36, – $. Nahrung, 18(2), 235-236.
• Michman, R., Mazze, E., & Greco, A. (2003). Lifestyle marketing. Westport, Conn.: Praeger.
• Min Zhao, Steve hoeffler and Gal ZauberMan. (2013) Mental Simulation and Product evaluation: the affective and Cognitive Dimensions of Process versus outcome Simulation. Journal of Marketing Research 48:5, 827-839
• Moorthy, K. (1993). Theoretical Modeling in Marketing. Journal Of Marketing, 57(2), 92.
• Olsen, H. (2015). Customer Targeting. On Strategy. Retrieved 14 April 2015, from http://onstrategyhq.com/resources/customer-targeting/
• Perez-Mujica, L., Duncan, R., & Bossomaier, T. (2014). Using agent-based models to design social marketing campaign. Australasian Marketing Journal (AMJ), 22(1), 36-44.
• Piercy, N., Harris, L., Peters, L., & Lane, N. (1997). Marketing management, market strategy and strategic management: domain realignment and redefinition. Journal Of Strategic     Marketing, 5(1), 51-63.
• Ravi Dhar, Klaus Wertenbroch (2000) Consumer Choice Between Hedonic and Utilitarian Goods. Journal of Marketing Research: February 2000, Vol. 37, No. 1, pp. 60-71
• Roger Brooksbank, (1994) “The Anatomy of Marketing Positioning Strategy”, Marketing Intelligence & Planning, Vol. 12 Iss: 4, pp.10 – 14
• Singh, R. (2003). Developing Relationship Marketing with Customers: A Scandinavian  Perspective. Library Management, 24(1/2), 34-43.
• Slemmer, J., Livingston-Thomas, J., Gottschall-Pass, K., & Sweeney, M. (2013). Cranberries and Wild Blueberries Treated with Gastrointestinal Enzymes Positively Modify Glutathione Mechanisms in Caco-2 Cells In Vitro. Journal Of Food Science, 78(6).
• Söllner, A., & Rese, M. (2001). Market segmentation and the structure of competition: applicability of the strategic group concept for improved market segmentation on industrial markets. Journal Of Business Research, 51(1), 25-36
• Srivastava, R., & Sakunke, S. (2011). Impact of Future Trends on Marketing Strategy. Far East Journal Of Marketing And Management, 1(1), 11-13.
• T.P. Beane, D.M. Ennis, (1987) “Market Segmentation: A Review”, European Journal of  Marketing, Vol. 21 Iss: 5, pp.20 – 42
• Varadarajan, R. (2009). Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises. Journal Of The Academy Of Marketing       Science, 38(2), 119-140.