<Strategic Marketing>

<Professor Ben Lower>

Module Code: BUSN9330

Module Title: Strategic Marketing

Programme of Study: International Business and Management

Seminar Group: 12

Surname: Dejchai

First Name: Andrea

Login: ad891

Required Word Count: 3500

Actual Word Count: 3848

Declaration: I confirm the work submitted is entirely my own and have fully
referenced my sources as appropriate. I am aware of the penalties for
plagiarism.

Date: 16 Jan 2024

Official Stamp
Executive Summary

Wiikano Orchards was founded in 1928 and plays a significant role in the fruit and Juicy

industry. However, the company has recently experienced a decline in sales, which has

prompted management to assess its viability for brand change to spur an increase in sales

volume. This assessment explores the macro-environment factors, industry, and SWOT

analysis to explore the viability of promoting the anticipated rebranding of the company. The

recommendation is that the company consider strategic rebranding to Nepi Orchards with

anticipation of experiencing market acceptability.

Introduction and Background

Wiikano Orchards company was founded in 1928, and its headquarters are in the Ohio River

Valley. It operates in the fruit and juice industry, particularly in producing and selling fresh

produce, such as apple fruits and related products. The company is a family business

enterprise; its current president is Dena Yazzie. Over time, the company has manufactured

and distributed freshly pressed apple juice to the western parts of the United States. The

company has been trading under the brand Tuwa to market juice products. The company

incorporates advances in agricultural sciences to promote commercial apple orchards used in

high-density tree planting, resonating with an increase of tree density from 150 to 250 trees

per acre to 500 to 1000 plus per acre.

Moreover, the high-density orchards used dwarf trees of height between 8 to 10 feet and

distance apart between 5 to 9 feet. According to the company, the high-density orchards are

attributed to lead to earlier production, fast returns on investment as well as improved fruit

quality. However, its primary challenge is that high-density orchards need experts to execute

tree planning alongside pruning and more watering than conventional orchard designs. In

1968, the company changed its name to Wiikano as an honour and appreciation to the

Shawnee Native American heritage. In the company's history, it has continuously

incorporated consumer promotions because the wholesalers would distribute the products at

discounted prices alongside volume discounts to grocers and transfer them to the consumers.

However, recently, the wholesalers noted a decline in sales, and consumers are becoming

price sensitive, leading to wholesalers' demand for more discounts.

Situational Analysis

PESTEL Analysis- Macro Environment

PESTEL analysis tool is adopted by marketers to analyse and monitor the macro-

environmental (external marketing environment) factors that impact the production,

distribution, and sales processes of a company (Siddiqui, 2021, p.511). According to

Siddiqui, PESTEL analysis evaluates political, economic, social, technological,

environmental, and legal factors that impact the environment.

Political Factors

The success of a business in a country is based on political goodwill, political stability, and

government policies that establish a conducive environment for the company to thrive

(Musavengane and Zhou, 2021). According to Thrasher and Vallier (2018), political stability

refers to an environment characterised by preserving an intact and smoothly functioning

government or political system. It eradicates numerous disruptions and changes for an

extended period. Wiikano's success over the years has been possible because the U.S. has

experienced a relatively stable political environment for an extended period. Because there

have not been significant disruptions, the company continues to produce the products

effectively and successfully. The current political parties, Democrats and Republicans, in the

U.S., have continued to deliberate on establishing steps to accord protections to business

enterprises.

Economic factors

The production of commercial orchards is projected to remain productive for an extended

period, as per the experts in Apple produce and related industries Therefore, the investment

will be valuable alongside being distributed for an extended period compared to other crops

Consequently, there is stability and sustainability in apple production that resonates with

economic viability for orchard enterprises such as Wiikano Orchards Because of the long-

term output of orchards, it resonates with long-term consistent revenue generation However,

over time, the wholesalers and retailers have reported a decline in Wiikano's apple juice A

low demand for the product means that the company experience low sales and subsequently

lower revenue generated compared to previous years Therefore, it is essential for the
company to evaluate consumer spending patterns as they impact demand for non-essential

commodities like premium apple juice It is necessary to align the consumer spending

patterns with current marketing and pricing strategies (Schmit et al. (2018). Moreover,

analysing the production expenditures, including labour and fuel alongside agricultural

inputs, is essential since it influences the overall cost of apple production. According to a

study by Duan et al. (2021), assessing those factors and executing cost-effective practices are

essential to maintaining the company's profitability.

Social Factors

The study by Lin and Niu (2017) highlights social factors such as people’s lifestyle affects

the purchasing behaviour of consumers. For instance, some consumers take the Wiikano

products because of the heathy benefits as the products are sugar-free. Consumers’ tastes and

preferences also affect demand which may increase the sales volume.

Technological Advancements

In today's business world, technology has been integrated into Apple juice production,

particularly the processing technologies, which may have a significant impact on the

efficiency and quality of juice produced The display of apple juice should incorporate

technology such as state of the art equipment for washing, sorting as well as pressing apples

to increase the production processes and ensure a higher quality end product for the Wiikano

Orchards One technological advancement in the beverage industry is the cold-pressing

techniques, which are relatively used because of their ability to preserve more nutrients and

flavours compared to the conventional approaches Therefore, Wiikano Orchards should

explore the possibility of adopting cold-pressing techniques, which are essential to

differentiate its apple juice Moreover, technological advancements such as quality control

and monitoring systems may be used to maintain consistency in the taste and quality of apple
juice (Aadil et al., 2019) Consumers want character in production to achieve desired

standards and address the consumer needs regarding product uniformity.

Environmental Factors

The production of Apple juice is highly influenced by climate change and weather patterns

because they affect the apple orchards. For instance, temperature changes, lack of rainfall

and extreme weather conditions affect the crop yield alongside the yield (Beillouin et al.

2020, p.4). According to Beillouin et al., adverse weather conditions affect the crop yield,

leading to extreme losses. For example, in 2018, the climate extremes that happened during a

crucial period for growing crops significantly affected the crop cycles, and despite the

changes in mid-August improvements in weather cycles, the anomalies had become

unrepairable. In the case of apple orchards, high temperatures have the potential to mess with

apple's colour. On the other hand, a temperature drops during the time apples have begun to

grow, which may contribute to the development of cosmetic defects known as russeting.

Moreover, Wiikano Orchard may actively participate in misleading its reproductive strategy

and implement an inefficient utilisation budget and company resources.

Moreover, waste management practices and circular economy play a fundamental role in

minimizing the environmental impact of apple juice production. Apple waste refers to the

leftovers of apples upon pressing for juice or cider production. When this organic matter is

not adequately managed, it can contribute to environmental challenges because it generates

methane gas, a greenhouse gas, after it is left to decompose in landfills. The company can

minimise carbon emissions due to robust transport and logistics activities. Wiikano should

transition to energy-efficient equipment and explore renewable sources of energy.

Legal Factors

The production of apple juice is affected by the legal framework such as the federal bill,

Green New Deal Bill of 2019. The bill was introduced because increased human activities,
according to a report, Special Report on Global Warming of 1.5 o C, had been the cause of the

observed climate changes over past decades. In addition, the United States has played a

significant role in a disproportionate amount of greenhouse gas emissions, mainly from

industries such as Wiikano Orchards in the production of juice. Thus, in an effort to

minimise these emissions, the Green New Deal bill was introduced to tackle these challenges

and had a significant impact on the production processes of production companies. The

objective of the bill is to ensure that every U.S. citizen has access to clean water, high quality

air, healthy and affordable food as well as access to nature. Thus, according to Kinde (2019),

companies ought to adhere to the standards prescribed to minimise adverse wastes and air

pollution because legal actions can be instigated based on Green New Deal Act for failing to

provide high-quality air for the population (p.2).

Industry Analysis Using Porter's Five Forces

Competitive rivalry

There is stiff competition in the apple industry because of the existence of numerous varieties

of brands that sell apple-based products and alternative fruits and value products. Wiikano

Orchards, a leading corporate entity in this competitive industry, experiences competition

from brands such as Unilever, Kraft Foods, and Group Danone. While Wiikano Orchards has

been in existence for close to 100 years, its market share is significantly affected by rival

companies. The rivalry is not impacted by the rate of the product; other factors such as

quality, innovation, and variation come into play. Wiikano Orchards must continue to explore

strategic investments, particularly in research and development, marketing as well as

sustainable development practices, to improve its competitive edge alongside navigating

through the challenges that happen due to the industry dynamics (Lahti, Wincent, and Parida,

2018, p.2). When a company such as Wiikano orchards gets a competitive advantage,

consumers tend to prefer its products and services compared to the rival products.
Consequently, it can achieve and sustain higher margins, increase its growth profile, and

increase consumer loyalty.

Supplier power

In the food and drinks industry, Wiikano Orchards is attributed to have the largest market

share and the lion's share; thus, there is an increase in demand for the supply chains. To meet

the needs of the consumers, the company has used a significantly large number of suppliers to

attain its demand requirement. For instance, the raw materials that are used by the company

are restricted and limited despite the increased demands, quality needs, and industry

standards, hence affecting the quality of the final product. Consequently, the company's long-

lasting relationships with its suppliers might be affected, thus jeopardising its ability to gain a

competitive advantage (Dallas, Ponte, and Sturgeon, 2019, p.669). According to Dallas,

Ponte, and Sturgeon, the influence of the Wiikano Orchards' suppliers is high and can

significantly impact the market dynamics.

Buyer Power

According to Cakranegara et al. (2022), the purchasing power of the buyers and their tastes

and preferences significantly influence the production of Wiikano orchards. Consumers make

purchasing decisions based on their budget allocations and the availability of monetary

resources to make spending decisions. If the buyer's monetary resources are constrained, they

are least likely to purchase apple juice because they do not consider it essential.

Consequently, the company is forced to reduce its production to avoid over-production with

low demand for the products, leading to unnecessary waste and losses. Thus, buyers'

purchasing power has a high influence on Wiikano Orchard's production.

Threat of substitution

The production capabilities of Wiikano Orchards face a high threat of substation for its apple

juice, thus leading to a high influence on the company's production. This threat of
substitution implies that consumers can switch to alternative products. Therefore, it affects

the production and market share of Wiikano Orchards (Bruijl, 2018). Nestlé’s products, for

instance, are perfect substitutes for Wiikano Orchards products, which have continuously

declined in sales. However, Wiikano Orchards started to sensitise and create awareness about

the health benefits people acquire from using its company products to mitigate the threat of

substitutes to avert significant losses. Conversely, Wiikano Orchards experiences a high

threat of substitutes; hence, the company should strive to establish new strategies to increase

its demand for the company.

Threat of New Entry

In the food and drinks industry, some entry barriers have been established to avert new

entrants in the consumer food industry and allow only a few entrants to succeed in the

industry (Tien et al., 2020, p.44) The fruit industry, is equally challenging and provides

numerous opportunities for the apple juice Apple juice and related products retailing thrives

because these products are recommended to improve the health outcomes for many people,

thus making the industry attractive for entry among numerous products However, to take an

active role in the food and drinks industry, the firms must meet the production capabilities

and preservation which might require huge capital outlay to establish among the new entrants

There are only a few entrants into this market because firms need to understand consumer

tastes and preferences, and necessitates a lot of time According to Tien and team, the

business should have an appropriate understanding of the market threat to promote the sales

of the products. Otherwise, it would continue to experience numerous challenges over time.

The competitors are alive to this development and continue to advance their customer

commitment regarding the products over time. Consequently, Wiikano Orchards experiences

a low threat of new entrants because it has an extensive distribution network across the globe

and relies on its brand name and reputation.

SWOT Analysis (Both External and Internal)

An assessment of the SWOT analysis of a company is essential because it allows for

identifying the current position within the marketing dynamics. In preparation for

implementing and making strategies for the firm, it is necessary to assess the current status of

the business development to determine the areas that should be well-performing and those

that need adequate improvements. Thus, conducting a SWOT analysis will assist in

mitigating the instances of failure by eradicating the weaknesses as well as threats and putting

an appropriate contingency plan in place. Moreover, a SWOT analysis aids in developing

strategies for the firm that separate the company from its competitors.

Strengths

Wiikano Orchards provides a unique product offering of 100% natural apple compressed

juice alongside other value-added products; conversely, it creates a competitive edge against

its competitors and establishes a unique selling proposition within the industry. Most

consumers prefer to consume natural juice, establishing a lasting relationship with the

company. Secondly, Wiikano's production capacity is adequate to meet the demands of

young consumers and their preferences for healthy drinks (Drouillard, 2018). While the

company produces apple juice, which is sugar-free, the consumers are motivated to make

sugar-free juice products. In contrast, the competitors sell concentrated drinks.

Weaknesses

The ownership of the Wiikano Orchards is a family set-up and relatively small-sized

enterprise. Thus, it cannot expand due to a lack of adequate budget to promote its expansion

of production and distribution. Moreover, stiff competition in the industry is a significant

challenge for the company, which affects its operations. The company encounters inefficient

labour and production, which leads to decreased harvesting production and potentially

impacts the company's revenue sales. In addition, the company lacks consumer loyalty
because it has low promotional activities in most cases; the company relies on the wholesale

and retail discounts offered to the consumers as its promotional activity.

Opportunities

Most apple juice consumers demand sugar-free products and often prefer to purchase

naturally blended food products, which are in high demand in the market. Thus, as the

demand for natural products increases, Wiikano company will experience high demand,

increasing its sales volume. The company is well known for providing health benefits to

consumers because its effects are natural and sugar-free, which is recommended by medical

professionals.

Threats

In the recent past, Wiikano has continued to experience declined consumer demand for its

products because of increased substitutes in the market and the low purchasing power of

consumers. The market is significantly becoming price-sensitive across the industry

alongside increased competition among rival companies. Fruit-flavoured water beverages are

becoming a significant threat to Wiikano Orchards in the production of beverages and a

major threat to the market share, which impacts the company's sales and profitability. In

some cases, consumers tend to become price sensitive and, thus, prefer to purchase relatively

cheap products as opposed to the Wiikano products that are sold at a premium. The price

sensitivity of consumers resonates with decreased demand for the company products, hence

lower sales volume.

Marketing Strategies Analysis

Analysis of their segmentation, positioning, and targeting

Wiikano seeks to sell products at premium prices that target consumers with high-income

levels. This demographic segmentation is a revelation that it primarily focuses on selling to

the upper-income bracket and, thus, deals with consumers with increased disposable income

and working-class demographics.

Moreover, consumer preferences are based on behavioural segmentation, with consumers

preferring sugar-free products due to additional health benefits. Over time, Wiikano market

segmentation is based on making sales to persons who are characterised to prioritise healthy

lifestyle preferences and are willing to purchase the product at premium costs and acquire

products that best align with their preferences.

Wiikano's positioning is based on its ability to offer consumers high-quality and natural

products. Moreover, apple produce juice does not have added sugars, which improves the

naturally healthy benefits of the products. Some patients are recommended to take natural

juices by physicians, particularly diabetic patients. Wiikano can provide and sell these unique

products at premium prices, allowing it to gain a competitive advantage. Conversely, selling

products at premium prices illustrates that the company can pay more for perceived quality as

well as uniqueness; hence, it targets consumers who pay more for their quality and

uniqueness.

The target consumers for Wiikano's products are high-income consumers ready to pay

premium pricing; hence, the consumer category is high-income earners. The company strives

to produce apple juice that is of high quality and has no compromises at all. Therefore,

aligning its marketing proposition and product strategies to high-income consumer’s aids in

widening its market position and establishing customer loyalty.

Analysis of Marketing Mix (4ps)

Product
Wiikano Orchards specializes in the production of high-quality apple juice and cider. The

consumer prefers its products because they are naturally blended and have no added sugars

compared to the existing brands. The Tuwa brand has been available for over 100 years and

values authenticity and uniqueness. According to Bahl and Chandra (2018), making the

preferred consumer brands available assists in building customer loyalty, which increases the

firm's sales volume and revenue generation.

Place

Wiikano's distribution channels are strategically placed in strategic locations frequented by

high-income consumers, the target market. The company distributes through wholesalers and

supermarkets where these consumers make their shopping. The availability of the Tuwa

brands makes it possible for buyers to purchase the product. According to Thabit and Raewf

(2018), place is a key determinant in the marketing of products because of how it is done

strategically. It ensures that consumers can access the products, resulting in more sales.

Promotion

Wiikano does not conduct aggressive marketing for its products. However, it depends on the

wholesalers' trade discounts to make sales. Recently, the wholesalers noted a decrease in

sales and consequently demanded a higher discount, which would be transferred to the

consumers. Digital marketing, such as social media marketing, has continuously increased in

its usage; hence, Wiikano company can initiate measures to explore the viability and increase

its presence. According to Ebrahim (2020), promotional activities have the potential to create

awareness among additional consumers, hence increasing its market share.

Price

Price sensitivity is a key consideration among consumers when making purchasing decisions.

Wiikano offers its products at premium prices to high-income consumers who prefer to

consume natural and sugar-free juice. Consequently, the consumers can pay premium
amounts for the products. The Wiikano period has continued to signal to the market that it

offers products to select market demographics and ensures those consumers pay for premium

prices. Consequently, low-income consumers prefer other brands, affecting the company's

market share.

Proposal Analysis

Pros of suggested changes

One of the proposed changes is the establishment of meaningful branding. The proposal

recommendations are that it increase the brand name to Nepi Orchards, alongside the

packaging changes. A potential impact is that it has a significant effect on customers

alongside making it stand out from its competitors.

Another change proposed is to increase its digital presence to promote digital marketing. The

company seeks to include a redesigned website, improve its social media presence, and

establish a members-only fan club to promote more consumer engagement. The increased

social media presence allows the company to tap the online market share, increasing its

customer base and sales volume.

Moreover, it is also suggested to have an in-store promotion to encourage customers to make

purchasing decisions at purchase points. It is expected that linking this brand to charitable

donations aids consumers in making purchasing decisions and prefer the products compared

to the competitors.

Cons of The Proposed Changes

The rebranding of Wiikano exposes the company to a risk of market acceptance. When

consumers do not understand the rebranding and packaging used for the products, it may
cause consumers not to make purchasing decisions. Most Tuwa brand loyal consumers would

think it is a new product and resist the changes, leading to low demand and sales.

The proposed changes are likely to cause a decline in the sales volume. Hence, the company's

earnings decreased. The management of the Wiikano brand experienced some disagreements

on the rebranding aspect, which may escalate to the consumers, resulting in a decrease in

sales and profitability. Disagreements in management show that the company cannot make

strategic decisions for the betterment of the firm.

Viability of The Options

The first proposition would be to accept the proposal, which would include rebranding,

establishing a digital presence, promoting in-store promotions, and increasing the prices to

premium. The company anticipates achieving those benefits raised by the consumers with the

hope that it will achieve the benefits indicated.

The second proposition entails conducting a small test market to evaluate whether those

concerns are viable for the business to thrive. A small test will assess the brand acceptance

and explore its impact on the profit margins generated.

The last option is to continue with the present strategy by sustaining the current proposition

of the marketing strategy. However, the company would be required to improve its harvesting

ability, minimise costs and make adjustments to the apple juice market because the sales are

declining with time.

Recommendation

Wiikano should consider the alternative of rebranding its name to Nipe Orchards by

incorporating a strategic as well as an intelligent measure. For instance, it should consider its

competitive edge to promote 100 percent natural juice products. Change in the company is

surprising and divisive, which demonstrates why rebranding ought to be implemented

strategically. The company should be optimistic about potential consumer endorsement and

the entire market to be receptive.

Conclusion

In conclusion, Wiikano Orchards must make a strategic decision to promote an increase in its

sales volume. The case study has demonstrated a need to rebrand to avert a continued

decrease in company sales that resonates with increased costs as wholesalers demand

increased discounts, which are transferred to the consumers. Although rebranding can have

different receptive for the consumers and the entire market, the company should consider

implementing it. The management needs to accord necessary support to the decision to

rebrand and move forward to take strategic decisions to support the course.
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