Dena Yazzie has decided to go ahead with the main idea of Tahki’s proposal but with one change. The company will not abandon its brand. So they will try to get a more expensive product based on added value but they will build this effort on the existing clientele. The board was satisfied to a large extent with the solution. They felt that they had built this brand and people knew it so it was an asset that should be utilized.
Your team is hired by the board of Wiikano Orchards and asked to develop a Marketing Plan that implements Tahki Yazzie’s proposal with the given that the existing brand will be kept.
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
Wiikano Orchards | Marketing Plan
1. Marketing Plan
Wiikano Orchards
MGMT 361 Marketing Management
Spring 2018
Group 4
Anahit Babayan
Elizabeth Keshishyan
Liana Ghalumyan
Tigranuhi Harutyunyan
Lilit Harutyunyan
Davit Vardanyan
2. 1
Table of contents
Marketing Objectives 2
Target Market(s) 2
Marketing Mix 3
Specific Activities Required 4
Evaluation Techniques 4
Marketing Budget 5
Net Financial Results 6
3. 2
Marketing Objectives
Wiikano Orchards encountered major financial losses. According to the forecast presented in
the case, the total demand for their flagship product - apple juice was expected to decline
regardless of brand name in the whole market, and to hurt the sales of the company even more.
Between 2004 and 2014 the annual per capita consumption of apple juice decreased from 18 to
16 servings. The main reason was that the consumers became more health and weight
conscious, many of them were concerned with the high sugar content of juices. Thus, the
consumers started to slowly turn to low calorie beverages and fruit-flavored water market.
For addressing the major financial issues incurred due to sales decline, Tahki Yazzie was
assigned to write a proposal, which included the rebranding of Wikkano to Nepi Orchards and
changing the packaging, digital marketing and also in-store promotions. After discussion with
the board of directors the CEO of Wiikano Orchards, Dena Yazzie decided to approve and
implement the main idea of Tahki Yazzie’s proposal, with one change - Wiikano Orchards was
not going to be rebranded. They would only implement the digital marketing and in-store
promotion strategies proposed by Tahki Yazzie.
Taking into account the whole information presented in the case, the objective of this marketing
plan is to increase the sales volume of Wiikano Orchards among its existing clientele.
Target Market(s)
The target market of Wiikano Orchards is very saturated. It is divided into 3 segments -
wholesalers, retailers and end-users. The most important characteristic of these segments is
little or no brand loyalty driven by high price sensitivity.
● Retailers - the company brand Tuwa was sold through more than 100 supermarkets and
also 40 small grocery store independents and chains. The latter were loyal to Wiikano
because its minimum order size was less than that required by larger processors.
● Independent grocers - these grocers did not have enough volume to purchase
from larger wholesalers and were not affiliated with retailer-owned cooperatives.
They were not considered loyal, but believed that the product sold by Wiikano
Orchards was a good fit in niche market for fresh-pressed apple juice.
● Wholesalers - in the Midwest Wiikano Orchards sold its products to small food retailers,
which in their turn sold the products to grocers.
● Consumers or trade consumers - these are the end users of the product to reach whom
Wiikano uses B2B2C business model (through the channels mentioned above).
4. 3
Marketing Mix
Product
● 100% fresh pressed apple juice - each bottle of apple juice is made from approximately
6 pounds of apples (rather than from apple concentrate) with no added sugar.
Price
● Price to wholesalers - $0.60 per unit
● Wholesaler-to-retailer price - $1.10 per unit
● Retail price to consumers - $2.99 per unit
Promotion
● Redesigned website, with interactive and educational content - Content and visuals of
the website contain the history of the brand, family history, sustainability, health benefits,
membership for the fan club, which includes different games and contests. Customers
can log in, participate in those games and contests and earn different rewards for their
activities, the latter can be replaced by coupons or different promotional items.
● Social Media Marketing - the main channels to be used are Facebook, Instagram and
Twitter.
● Hang Tags displaying cause marketing (donations) - majority of the customers are
inclined to buy products, which are associated with a cause. The main idea was to use
hang tags 3 times per year, featuring a description of a specific donation, in order to
encourage a purchase.
Distribution
● Wholesalers
● Retailers
● Farmers’ markets
● Small on-site store
● Independent groceries
Specific Activities Required
For digital marketing:
● Hire a UX/UI designer to renew the website
● Start blogging about their product, its benefits and alike
● Add subscription field on the blog to collect emails and generate a user database
● Keyword research for page optimization
● Optimize the web for mobile-devices
● Develop a long-term social media strategy
● Create a social media content plan
● Closely analyze the consumer behavior on social media, track the active hours and
engage them during that period of time
5. 4
● Create a Buyer Persona and do consumer fragmentation for targeted social media
advertising
In-store promotion:
● Conduct regular secondary research in order to be aware of what happens in the world
and what issues need to be addressed in the scope of each campaign.
● Conduct a specific focus group in order to discuss the idea of hangtags, their design and
specific case for which the donations should be made. This will give a general idea of
what the public’s reaction will be.
● Based on the interviews with the retailers, the case stated that few apple juice brands
sold a product associated with a cause. In order to understand why only few practiced
this and what kind of impact it had on those companies, it will be useful to conduct a
competitive analysis and also primary research in a form of a survey, in order to find out
the public’s opinion.
Evaluation Techniques
Wiikano needs to set a baseline and specify the KPIs to measure the performance of the new
campaign against the baseline. In the scope of digital marketing, there are 5 metrics to measure
the content, whether it is visible, relatable, searchable, actionable and shareable.
The KPI as a result of digital marketing, should be measured in terms of:
● Traffic (to see how effective the new strategy is and if they are doing a good job in terms
of web and content optimization)
● Impressions - how many times the website and the content itself is viewed
● Number of new contacts/submissions
● The CTR (click-through-rate)
● The bounce rate- the % of people who leave after visiting just one page
● Time on site - duration of the visit to the website
For each of this indicators, Wiikano needs to take the current numbers and set % increases per
week or month (vice versa for the bounce rate). Having this done on a regular basis, will help
them understand where they fail or face hardships and improve their steps right away. For
example, if they are not ranking high for organic research, then their keyword optimization is not
done properly.
The impact of the hang tags and cause marketing, can be evaluated by both observation of the
buying process and interviews with employees and customers, and also by financial analysis-
comparison of the sales before and after the implementation of the campaign.
● Did the customers respond positively to the hang tags and the idea of donations in
general? (Observations and interviews by salespeople)
● Where they frustrated with the idea and thought that due to donations the price of the
product was increased? (The comparison of the actual sales before the implementation
6. 5
of the campaign and after. Did we see increase, decrease or no change in sales
volume? Was it clearly stated that they are not going to be charged extra money for the
donations? )
● Was it hard for the salespeople to sell the product associated with donations?
(interviews with salespeople will be a good way to track those difficulties if any)
● Did the sales volume increase as a result of the cause marketing or not? According to
the case, the hang tags would be placed on the bottles 3 times per year. It can be a
great idea to compare the actual sales of the apple juice with and without hang tags.
This will clearly show the trend of the impact of hang tags on the sales of the product.
The break-even analysis can also be a useful evaluation technique. Did Wiikano get return on
its investment?
Marketing Budget
Marketing task $
1. Digital Marketing 25,000
2. Website and social media maintenance 10,000
3. Promotional items 5,000
4. Hang tags and donations 40,000
Total 80,000
7. 6
Net Financial Results
*Note - Since Yazzie's proposal was approved but only with one change - without
rebranding, the cost per unit will remain $0.18.
Scenario 1
The company increases price of apple juice for wholesalers to $0.60 per unit, and the sales
volume in units stay the same 2,160,000. Thus, the expected profit will be $25,740.
Since the marketing objective is to increase sales volume, this scenario is good from the pricing
perspective, but lacks increase in sales volume in units.
Scenario 2
Due to marketing efforts mentioned in the proposal the sales volume will increase. The
marketing plan's implementation costs will be $80,000. Therefore, the latter should be added to
the total cost, meaning $1,235,380 + $80.000. Thus, the break-even number of units to be sold
in order to cover all costs could be shown in this equation.
1.235.380 + 80.000 = 0.60 * X
X= 2.192.300
2.192.300 bottles of apple juice should be sold in order to reach the break - even and cover all
costs. We increase the volume of company-label production to 1.544.300 units
(1.512.000+32.300). The profit will be the highest from 3 proposed scenarios. $39.306.
Please note that this is merely a row forecast and just because the wholesalers are considered
more profitable for the company, we increased the price for this channel.
8. 7
Scenario 3
Since the total costs are distributed among the following three channels - supermarkets, grocers
or small retailers, and wholesalers, we decided to allocate additional promotional costs for only
the wholesalers channel based on its potential of being profitable.
$80.000=0.6*X
X=133.333.3
In order to cover additional costs ($80.000) , 133.334 additional units should be sold. This
scenario is much more realistic. In this scenario profit will be $25,796.