Blue Ridge Coffee Case Study Sales Strategy for the Flavored Coffee

Following the introduction of the new flavored coffee, there is need for coming up with a sales strategy for increasing the sales of the new product. The strategy gives details on how the product will reach the customers, and in the end, making them aware of the difference between the new product-line with the other products from the company. These strategies are necessary for improving the total company sales, consequently increasing the profitability of the company. The strategy is also necessary for the coming up with sales activities that position the flavored coffee to a state where it can gain a competitive advantage in the market. The most appropriate sales strategy of choice for meeting the sales objective of the company is the triple-tiered sales strategy (Frain, 2009).

Justification of the recommendation

The strategy is necessary for the establishment of a good relationship between the wholesale clientele and the company. The association that the regional sales teams have with the wholesale customers is vital for giving the company the necessary information regarding the performance of the product. The triple-tiered strategy is necessary for the identification of the challenges that the competitors are going through, and building on their weakness to increase the sales volume. An element of a weak competition in consideration involves brand recognition. Carolina Coffee Roasting Company, Island Joe's and Baronet Roasters have low brand recognition, which the company can build on to develop the product, consequently increasing the sales volume. The third element in the strategy involves getting information from the customers directly regarding the flavored coffee. Through this, the company can make adjustments suit the customers' needs and after taking care of their needs, the sales volumes will increase because of their contention.

Market and sales potential

According to estimates from the National Coffee Association and some experts in the industry, the consumption on flavored coffee is at the 40% mark. They give a suggestion that the percentage is expected to rise because younger people are increasing their coffee uptake. The association gives an estimate that out of the 40%, about 25%-30% coffee consumers take the flavored coffee, which gives the company a positive market outlook. From the data provision on the market potential, it would be necessary to implement the sales strategies for maximum benefit. The data shows that there is room for growth in the industry, which gives an assurance that there is room for increasing sales volume (Frain, 2009).

Segment

Annual Sales

Estimated Increase

Food Service

$3.8 M

+12%

Corporate and Office Distribution

3.7 M

+15%

Coffeehouses (Retail)

2.5 M

+17%

Operators

1.4 M

+12%

Grocery Stores

700,000

+15%

TOTAL

$12 M

Sales data that supports the recommendation

The increase in the annual sales also shows that the sales volume is improving. Judging from the graph below, it is evident that the sales volume of the company is increasing, and there is still market for more increment.

Methods of generating demand for the new product

One of the methods that the company should use for increasing the demand for the product would be to introduce consumer promotions for the new product (Frain, 2009). By promoting the products to the consumers, or by giving them free samples, the demand for the product will increase because their confidence on the quality of the product increases. It is necessary to make the consumers aware of this product before the commencement of consumer promotion. Advertising through the mass media is vital as a cost-effective method for the generation of demand for the product (Frain, 2009).

Apart from customer promotion, the other way of increasing the demand would be to set prices relative to the volume of purchases. If the customer gets a lower price for purchasing a larger volume of the product, the demand for the product increases, consequently increasing the sales volume of the company.

Sales forecast with the moving average techniques

Monthly sales

Sales ('000)

January

February

March

By assuming that the monthly sales are as shown in the table, the average sales for the 3-month are 130.33 thousand dollars, which is the prediction of the sales to for the next month, April. After the realization of the new sales in the month, the calculation of the average begins from February to the new month, whose average predicts the sales of May. This is a simple way to predict the sales of the next month because of the smoothing effect of the moving average method.

Sales message recommendation

a. Provide a motivation for the message you recommended.

Through the introduction...

On the development of the product, there were certain considerations since the product is because of a market research on the various aspects that most consumers are considering on the purchase of similar products. This product is promising to the market in terms of sales enhancement.
a. Analyze sales data to support your recommendation.

From the previous sales pattern, the organization was challenged to come up with a product that has modifications that go hand in hand with the requirements by the clients to increase the sales record. Through the analysis of the sales data, it is evident that sticking with the same product on the current market may diminish the sales record by the organization in the current market.

Task Three:

Task:

Prepare a report to senior management of the Wholesale Division of BRC in which you do the following:

A. Recommend an organizing strategy for the sales unit based on the company goals

The organization of the sales unit play critical role to the process of accomplishing business strategy and marketing objectives of any company. The Blue Ridge Coffee has to invest immensely in sales organization to enable it attain the short-term and long-term goals (Finnegan & Willcocks 2007). Apparently, the effectiveness of the organization has considerable effect to the capacity of the organization to perform in terms of sales, customer satisfaction, market position, and profits. Upon attaining these fundamental components of business, the company would be able to compete effectively against its rivals as well as achieving internal objectives (Finnegan & Willcocks 2007). The wholesale division should introduce new initiatives regarding sales management and salespeople with a view to realize the effectiveness of the requirements of the organization. A comprehensive assessment of the sales organization is inevitable in order to enable the company accomplish its aim of increasing sales in line with the company goal. The assessment would include total overhaul of the organizational sales structure (Finnegan & Willcocks 2007). It is necessary that the management of the wholesale division perform a comprehensive evaluation of competence and efficiency of the workforce in the sales section. This would help appraise the performers and at the same time retrench or send the non-performers packing. In essence, appraisal provides an avenue through which the organization can restructure the workforce to meet the requirements as spelt out in the mission and vision of the organization (Finnegan & Willcocks 2007).

Apart from the workforce, the division shall consider renovating the sales technology to match the contemporary standards. It is time the organization stopped apply the ancient technologies in the sales section. Instead, it should take advantage of the advances of technology. For instance, it may enhance sales capacity through online advertising, marketing and sales to its esteemed customers located in different parts of the world. Prospective buyers will also find a chance to examine and compare Blue Ridge products to those of competitors in the market. A greater emphasis of the customer relationship management is another important aspect that helps boost sales and the general organization of the sales section of the company (Wallace 2004). Proper management of customer relationship is an important strategy in that it makes esteemed customers and potential customers feel appreciated by the organization. Besides, the enterprise should invest in strategies that would enhance expense reduction as well as expanded use of strategies as regards the market segmentation. Such trends influence the need to develop uncontrollable sales organization alongside assessment of sales performance and evaluation of the alternative methods of organizing sales. Other organizing strategies of the sales unit based on the company goals include sampling research, media promotions and personal sales (Wallace 2004).

1. Discuss the relationship between the sales force organization and the areas of promotion in addition, marketing within the BRC.

The sales force organization is an important tool that determines the success of all sales strategies and future prospects of the company in the highly competitive market. Depending on the nature of the sales structure (highly structured or less structured), the promotion and marketing procedures might be complicated or simplified (Wallace 2004). A centralized sales force tend to confine promotion and marketing activities and strategies at one particular point of the organization whilst a decentralized sales force gives room for devolution of promotion as well as marketing activities of the Blue Ridge Coffee. The organization set up decentralized structures on regional basis (Wallace 2004). Sales representatives execute their duties effectively and are accountable to specific managers across the U.S. In effect, the marketing and promotion sections of the organization would operate such that their personnel report…