Reference no: EM133313561

For revision purpose - Marketing Management

Grace Kennedy Group, one of the Caribbean's largest and most dynamic Food and Financial corporate entities, is constantly searching for new product ideas to boost the revenue of its Food Division. As the management team undertook its corporate and divisional strategic planning process, they explored growth strategic alternatives that could help them to achieve their desired future sales goals.

While the American product/brand of 'V8 Splash' has dominated the Caribbean natural juice market, it did not, however, 'own' the 'single-serve' juice market segment. Consumers were open to considering other brands, particularly from companies they trusted and/or offered healthy options with natural ingredients (and a high percentage of real fruit juice).

Significantly, Grace had an entry in the 'ready-to-drink' juice category with its Grace Juices, in large family-size bottles and cans. Therefore, the company had juice category experience, brand credibility along with the capabilities and infrastructure to enter the 'single-serve' juice market, but it was missing a suitable product to enter this category.

Grace initiated a series of qualitative and quantitative research studies to expose consumers to several new product concepts including a single-serve juice that it was contemplating.

The original concept tested in the research was Grace Juice in single-serve containers, but with new exotic and tropical flavours. Particularly among key target segments, trial and repeat scores were significantly high. In reviewing the research data/information for the 'single-serve' juice product category, the team agreed unanimously that there was enormous potential demand, in both the domestic and global markets. This was driven by growing consumer demand for convenience and healthier 'juice' drinks.

The company seized the opportunity to introduce the single-serve juice concept, by creating the Tropical Rhythms brand. This brand was to address needs customers indicated they had, for a single-serve juice: Healthy, thirst-quenching, and with a genuine fruit taste.

Tropical Rhythms exceeded "even our most optimistic projections," according to Grace.

It quickly became the Caribbean market leader, with a 50% share, cutting V8 Splash's share in half and helping to propel the Foods Division out of the red and into the black. Only a year after its introduction in export markets, year-to-date international sales were up by 114%. Tropical Rhythms was awarded both the Caribbean Innovative Product Award from the Caribbean World Magazine and the Canadian Grand Prix New Product Award.

QUESTION 1

List the four key steps that Grace must follow during its Corporate/Divisional strategic planning process.