1. Executive Summary

Our marketing team hopes to reinvent Orange Julius as a brand that promotes healthy living and be acknowledged by our customers as a leading company that provides premium quality fruit-beverages through premium services. By doing so, we desire to increase public awareness for Orange Julius and ultimately increase our market share in the fruit-beverage market in the long run. Orange Julius has a great legacy which constantly plays on nostalgia and old-fashioned goodness, thus neglecting on promotional support. With interesting additions to existing menus coupled with Orange Julius’s staunch commitment to quality consistencies and competitively lower prices, our products will be the best and only choice for discerning customers.

In an ever-changing marketing environment, a thorough understanding and analysis is needed to effectively cater to the needs and wants of customers. The team has considered vital factors found in the macro-environment as well as the internal and external factors affecting the microenvironment. To help us develop our market objectives, gain essential information of Orange Julius in the market and highlight the necessary areas for brand improvement, an in-depth analysis of the company’s strengths, weaknesses, opportunities and threats will be discussed. In so doing, we focus the areas that offer sustainable competitive advantages to increase sales revenue.

Marketing research is also carried out through both primary (in the form of an online survey) and secondary data. This allows us to more aptly understand the needs of consumers and identify potential target market segment. With the data, an action plan that encompasses our marketing strategy, advertising and promotional events that will be implemented for the period of 12 months from December 2009 till December 2010. With regards to the execution of the marketing activities, the dates, methodology and costs are also clearly stated.

Upon actualization of the action plan, strict monitoring and controlling will enable us to spot any deviations from our plans. To ensure the success of the marketing plan, these deviations will be revised and rectified immediately.

2. Table of Contents

1. Executive Summary

2. Table of Contents

3. Situation Analysis

3.4.1 Economic Situation

3.4.2 Political and Legal Situation

3.5 Market Growth

3.6 Market Growth Forecast

4. Technology Advancements

6. Marketing Strategy

6.1 Mission and Vision

6.2 Marketing Objectives

6.2.1 Short-term Goals (within 12 months)

6.2.2 Long-term Goals (within 2-5 years)

6.3 Target Marketing

6.4 Positioning

6.5 Strategy Pyramids

6.6.4 Place (Distribution)

6.6.5 Promotion

7. Financials, Budgets and Forecasts

8. Implementation Controls

8.1 Operating Control

8.1.1 Employee Recruitment

8.1.2 Employment Evaluation Control

8.1.3 Hygiene and Quality Controls

8.2 Strategic Control

8.2.1 Marketing Activities Control

8.2.2 Marketing Audits

9. References

10. Appendix

List of Illustrations Pages

Fig. 3.1 Consumers’ Brand Awareness of Orange Julius 5

Fig. 3.2 Percentage of Actual Buyers of Orange Julius Products 5

Fig. 3.3 Economically Active Residents Age 15 and Above 6

Fig. 3.4 Target Market 7

Fig. 3.5 Market Growth Forecast 10

Fig. 5.1 Consumers’ Willingness in Switching to Orange Julius 15

Fig. 6.1 Components of a Successful Differentiation Strategy 16

Fig. 6.2 Market Positioning Map 20

Fig. 6.3 Strategy Pyramids 21

Fig. 6.4 Factors for Customers 22

Fig. 6.5 Current Market Share 22

Fig. 6.6 Best Packaging Voted for Survey Participants 23

Fig. 6.7 The Highest Price Customers Willing to Pay 24

Tab.6.8 Comparison of Price between Average Market and Orange Julius 24

Fig. 6.9 Location Map 25

Fig. 6.10 Mobile Advertisement Locations 28

Fig. 6.11 SMRT Advertisements 29

Fig. 6.12 Bus Stop Advertisements 29

Fig. 7.1 Net Profit Graph 31

Fig. 7.2 Sales Graph 32

Fig. 7.3 Expenses Graph 33

3. Situation Analysis

Bonfresh Pte Ltd, a subsidiary company of Bonvests Holdings Limited, is the authorized licensee of Orange Julius for Singapore since 1999. Orange Julius currently has a small market share of 14% in the fruit-beverage market in Singapore. A recent sampling survey of approximately a hundred people showed that although 87% of people are aware of Orange Julius, a huge majority of them do not think of Orange Julius when they want to buy fruit beverages (See Figure 3.1& Figure 3.2).

Figure 3.2 Percentage of Actual Buyers of Orange Julius Products

Figure 3.1 Consumers’ Brand Awareness of Orange Julius

Despite having its own unique selling point - blending together these fruit beverages with filtered flaked ice and their very own Julius Flavour Enhancer and Julius Smoothy Booster, Orange Julius is still relatively not appealing to the market (See Figure 3.2).Our company’s current marketing strategy whereby word-of-mouth promotions and premium pricing did not get its desired results of increasing its market share.

Orange Julius offers premium quality blended fruit beverages at a competitively low price. Its cool and refreshing blended fruit beverages which are made through careful selection of the freshest ingredients are not only healthy but also excellent-tasting. The frothy blended concoction is also easier on the stomach compared to other fruit-beverages which are simply blended on its own.

Coupled with Orange Julius’s staunch commitment for quality control and product innovation with new offerings like light smoothies, including some with exotic fruits and functional benefits like anti-oxidants and probiotics at a affordable price makes Orange Julius the best and only choice for discerning consumers who enjoy the finer-things in life.

3.1 Market Summary

Singapore has an overall population of close to 4.5 million, where an estimated 3 million are economically active. Out of this, an approximately 1.5 million of them are aged between 15-39 years old. Our target market aged 18-35 years old lies in this group. They are generally firm-believers in a healthy-lifestyle and are economically active to afford premium quality juices at competitively low prices. The potential market in Singapore can therefore be estimated to be about 1.5 million (See Figure 3.3).

Figure 3.3 Economically Active Residents Age 15 and Above

3.2 Target Markets

Sample Population: People whose average incomes are above $2500

Figure 3.4 Target Market

Demographics

· Gender: Male and Female

· Age: 18 to 35 Generation X and Y

· Middle High and Affluent Income Group

Behavioral

· Health conscious & sporty lifestyle

· Advocates healthy eating

· Enjoys the finer things in life(buyers of luxurious goods)

· Trendy and vibrant personality

· Having higher disposable income

3.3 Market Needs

Orange Julius’s fruit beverages are healthy and uniquely taste as it is blended with a special formulation of Julius Flavour Enhancer. It is priced competitively lower to appeal to discerning customers. It currently has 6 locations sparsely located around the Island- Takashimaya, Paragon, Liat Towers, Escape Theme Park, Singapore Expo and Causeway Point.

· Distribution:

Consumers want convenience when purchasing products. Orange Julius’s cafes or kiosks must be within vicinity for our target consumers.

Consumers will prefer excellent-tasting and refreshing fruit-beverages. At the same time, desiring for new offerings and flavours like light smoothies, yoghurt drinks or exotic juices.

While keeping in mind the taste and offerings, consumers will also look out for fruit-beverages that are of premium quality and freshness as fruits are highly-perishable produces.

Consumers will highly regard the nutritional and health benefits when purchasing our fruit-beverages as our target consumers advocates healthy-living.

Consumers will want the product to be reasonably priced.

· Taste & Flavours:

· Quality & Freshness:

· Nutritional Benefits:

· Competitive Pricing:

3.4 Market Trends

With the recent food scares in the market, consumers are generally more aware of the serious implications on what they are consuming. Consumers in general are becoming more quality conscious.

3.1

3.2

3.3

3.4

3.4.1 Economic Situation

According to Monetary Authority of Singapore (MAS), Singapore’s economy has been recovering slowly since the sudden economic downturn in the last quarter of 2008. Similarly, the F&B sector does not look too bright as many of Singapore’s food and beverage producers have witnessed a drop in profits as input costs rise and consumers reduce their spending amid financial concerns. However, it is picking up gradually.

Consumers are still cautious on their personal expenditure, setting aside more income for big ticket items like houses and cars and cutting down on luxury purchases.

3.4.2 Political and Legal Situation

Political environment and policies has an effect on decision making for marketers. Speeches given by the Prime Minister Lee Hsien Loong during National Day Rally on 16th August 2009 said that “maintaining healthy lifestyles is the best way to lower health care costs”. With Youth Olympics just over and the launch of National Healthy Lifestyle Programme by the Ministry of Health to promote healthy lifestyles among Singaporeans, it is definitely viable for Orange Julius to penetrate into existing fruit beverages’ market. With many sporting and health-related activities organised, it is feasible that Orange Julius build and create brand awareness through active sponsorship to these vibrant and refreshing yet, health-orientated events.

3.5 Market Growth

The fruit-based beverage market in Singapore has grown by 18% to the value of $35.6 million. In recent years, consumers of fruit-based beverages have grown substantially with the nation’s consistent efforts in promoting a health-conscious lifestyle. With promising trends in a largely immature market, Orange Julius has to battle it out with competitors who are eager to jump on the juice bandwagon.

Every major smoothie/juice chain is in aggressive expansion mode. Smoothie sales in Singapore reached $15.8 million in 2008, up 64% from 2006. Smoothie sales are projected to rise another 47% from 2008 to 2015, with most of the growth occurring in 2010. The total number of smoothie items on the menus of restaurants has also steadily increased in the past 3 years.

There are surging opportunities in this market and competitors - new and existing, big or small are going to focus on it. The market will become saturated sooner rather than later, especially if Orange Julius does not clarify their unique selling propositions. (Refer to Appendix A – CPI Chart)

3.6 Market Growth Forecast

Figure 3.5 Market Growth Forecast

4. Technology Advancements

With the convenience of Internet, consumers can readily compare our product against competitors, searching for product information that coincides with their preferences and tastes. With on-hand information, consumers will then be able to plan out in advance where and when they will purchase a product. This affects our decisions greatly, in terms of store locations, as new Orange Julius stalls must be conveniently located to reach out to consumers.

5. SWOT Analysis

The SWOT analysis below accurately describes the strengths, weaknesses, opportunities and threats faced by Orange Julius.

5.1 Strengths

Ø Made through careful selection of the freshest ingredients.

All the ingredients of our product must go through careful selection to ensure their freshness and cleanliness.

Ø Our products are healthy and energetic

Our products are made with real fruit; they are high in nutrients and vitamins and are available in a variety of flavours to satisfy the customers’ taste buds—from tangy to sweet. Our customers are able to add nutritional boosts into the beverage to enhance its flavour and its nutritional value.

5.2 Weaknesses

Ø Limited Outlets in Singapore

Currently, Orange Julius has only 6 stores in Singapore, although market growth has been promising. It is necessary for us to open up new outlets in Singapore to attract customers from different locations. However, we also need to be careful in selecting the locations.

Ø Comparatively High Price

Customers have mentioned of Orange Julius’s premium prices. This will prevent us from penetrating to a market with a wider mix of customers. The managing department needs to put in effort on lowering the impact of increasing costs.

5.3 Opportunities

Ø Increase the variety of the product

We have increased the variety of the product by introducing new product offerings to our menu such as the Moolatte, Waffe Crisp Blizzard, Almond Blizzard and Avocado Premium Fruit Smoothie, which were well received by consumers over the last few years. It resulted in higher sales in some outlets. Therefore, we will continue increasing the variety of our product line to attract a wider mix of customers.

Ø Target on specific customers

Our products target young people whose ages are from 18 to 35 years old; this group of people are more concerned with health. Since our products provide a healthy and energetic lifestyle to our customers, there is a great opportunity in expanding our market in Singapore. Moreover, the first Youth Olympic Games will be held in 2010, we can target such events to boost brand awareness and subsequently, sales figures.

5.4 Threats

Ø Market risks

Such risks may arise from competition from new entrants, rental hikes resulting from limited premium retail space and wrong sites selection for new stores. These necessitate careful market survey of the industry, thorough feasibility study and comprehensive marketing program to be carried out continuously.

Ø Legal risks

Legal risks may arise from inadvertent non-compliance with certain terms included in the contracts with our franchisors or suits arising from our supply of food products of poor quality.

5.5 Competition

· Boost Juice Bars: Boost Juice Bars is an international chain of retail outlets that specialize in selling fruit juice. It is one of 2 competitors which is not a local company. Boost Juice is the largest juice and smoothie chain in the Southern Hemisphere.

In Singapore, there are 2 outlets. Their product line consists of juices, smoothies and crush which are developed with the assistance of a nutritionist. Products are priced at $4.30 to $6. The stalls in Singapore are kiosk-like, not offering customers any sitting area.

· Ben & Jerry’s: Ben & Jerry’s are famous for its ice-cream. However, it has extended its product line to include fruit-smoothies, therefore being one of our competitors. Although they do not position themselves to be health-conscious, they do have a strong brand presence, attracting a vibrant and energetic crowd. There are currently 12 outlets in Singapore and prices for its smoothies range from $4.90 to $7.90. Out of these 12 outlets, there is a mixture of scoop shops and cafes which allows customers to sit.

· The Juice Station: The Juice Station is a local company which was set up in 2004. Currently, it has 4 outlets in Singapore, with 3 outlets situated at CBD area and 1 outlet in the heartlands. Their products range from pure fruit and vegetable juices, not including smoothies or yoghurt drinks. Products are sold at prices from $3.20 to $5. They operate in kiosk-like stalls without a sitting area for customers.

· Fruit Frolic: Fruit Frolic is a local company which was set up in early 2009. With 2 outlets in Singapore, 1 being at ION and another 1 in the heartlands, its expansion is relatively promising. Fruit Frolic features fresh fruit or vegetable juices made using a cold-pressed method to ensure minimal or no destruction of enzymes, vitamins and nutrients. It has an extensive range of product variations and will gain ground with our target customers if we do not have a similarly competitive product line. Its prices range from $4 to $6 per cup. Currently, its outlets are kiosk-like without any sitting area for customers

· Pass the Juice Chic Simple: Pass the Juice was set up in early 2008 and is a local company with only one outlet in Singapore. Its outlet is situated at Takashimaya, with high traffic volume. Its product ranges from fresh fruit juices, not including smoothies or yoghurt drinks. Although its product line is considerably unthreatening, it is priced very competitively from $2 to $4 per cup. Although its kiosk looks vibrant and fun, their service is lacking severely.

· Ommph Juice Bar Juice with a punch: Ommph Juice Bar is a local company with only 1 outlet in Singapore located at Lucky Plaza along Orchard Road. Its juices are popular for being refreshing and because of its convenient location with extremely high traffic volume, its kiosk is always being seen with a queue. Its product only consists of fresh fruit and vegetable juices, excluding smoothies or yoghurt ranges. However, it is priced reasonably at $3 to $5 per cup.

· Mango Lingo: Mango Lingo is a local company which was set up in 2007 with several outlets. However, it has reduced its outlet to 2, with 1 being at Novena Square 2 and another at Far East Plaza. Out of these 2 outlets, one of them is a kiosk and the other allows customers a sitting area. Its product line ranges from fresh fruit juices and smoothies to ice-cream and bubble tea. Although it has an extensive product line, its premium pricing and rather unhealthy menu range serves to do injustice to its branding. It is currently priced at $4 to $7.

However, we also do have to consider indirect competitors who may not sell only fruit-beverages like juices, smoothies or yoghurts, but have a large market share in the beverage market. These competitors tend to include new product ranges into their menus like smoothies and shakes. These competitors include:

· Gloria Jean’s Coffees (Total of 7 outlets)

· Pacific Coffee Company (Total of 3 outlets)

· Coffee Bean and Tea Leaf (Total of 45 outlets)

· Starbucks Coffee Singapore (Total of 65 outlets)

· The Coffee Club (Total of 24 outlets)

Figure 5.1 Consumers’ Willingness in Switching to Orange Julius

Based on our survey findings, 83.4% of the survey participants are willing to switch to Orange Julius if we offer a more extensive product range at a competitively lower price (See Figure 5.1).

6. Marketing Strategy

We had conducted a marketing survey prior to constructing our marketing strategies among various groups of consumers. The survey provided us with primary information like:

· Freshness of our beverages

· Uniqueness in taste of our beverages

· Different variety of beverages that Orange Julius produces

· Brand awareness among consumers

· Service provided by our staff

· Pricing of our beverages

Orange Julius will carry out a marketing promotion campaign for a period of 1 year from December 2009 to December 2010. During this period, we would stimulate marketing promotion campaigns by roadshows, advertisements, healthy lifestyle magazines, monthly promotional coupons and transit link advertisements to entice customers and pull them towards our franchise.

Figure 6.1 Components of a Successful Differentiation Strategy

Our firm would be carrying out a differentiated marketing strategy by targeting three market segments and designing separate offers for each. Our drinks come in three main segments which are fruit juices, smoothies and yogurts. Our drinks are targeted at individuals who are in generation X and Y respectively.

This strategy would boost sales and help to bring customers closer to us. When customers are closer to us, they would become valued customers and contribute to customer equity.

6.1 Mission and Vision

Company Mission - To create a spirit within the company that promotes healthy living and to be acknowledged by our customers as a leading company advocating freshness and vibrancy while providing customers with a Total Quality experience (Product Quality and Service).

Company Vision - Reinventing Orange Julius as the leading fresh fruit people in the world while embracing diversity in the way we do business, developing dynamic, inspirational people who have fresh ideas and new energy, applying the highest standards of excellence to the purchasing, blending and fresh delivery of our blends, giving back through our initiatives and having all these in mind, recognizing that profitability is integral to our future success.

Marketing Mission Statement: - To always exemplify healthy living in our company culture, products and branding, maintaining high standards in employees’ image and upholding strictest requirements in product quality consistencies while innovating the fullest line of products available.

6.2 Marketing Objectives

1. We aim to achieve 85% brand awareness in our target markets.

2. We aim to achieve a growth in market share by 12%-within first year of marketing campaign to achieve an increase by 6%. Second year increase by 5%.

3. We aim to build customer database of at least 80,000 households within the next 12 months.

4. We aim for involvement in environment-friendly efforts as part of Orange Julius’ branding.

6.1

6.2

6.2.1 Short-term Goals (within 12 months)

1. To increase the number of standalone kiosks of Orange Julius by additional 4.

2. To introduce new “café-concept” to Orange Julius for consumers- 2 cafes within next 12 months.

3. To associate Orange Julius through sponsorship or partnership with at least 40% of all major healthy lifestyle campaigns and vibrant events (aiming more specifically at demographics of our target market).

4. To increase the number of outdoor advertising and promotion at strategic locations by 20% from previous year.

5. To stabilize sales volume to the highest peak within the range of the previous 5 years

6. To increase customers’ satisfaction by 20% through consumers’ focuses group and feedbacks.

6.2.2 Long-term Goals (within 2-5 years)

1. To have a 60% consumer brand presence on our target audience.

2. To increase sales volume by 40% from the peak achieved (see above short-term goals).

3. To establish ourselves as an eco-friendly company.

6.3 Target Marketing

Target marketing further segments our target customers and target market into specific groups so as to cater to each target market segments more effectively.

Key Target Markets:

· 18-28 years old: Young, trendy, more image conscious, partying crowd

· 29-35 years old: Young families with higher disposable income to see benefits of caring for health.

Target Customers further segmented into:

· Female: This group is generally more concerned about their looks, paying close attention to weight, skin and age. More specifically, this group will encounter monthly menstrual disorders, of which menstrual pains will be of their main concern. Our products address these issues with varieties like Downsize Me (slimming), Peach Paradise (skins’ health), Plump Pine (anti-aging) and Lady Luck (menstrual pain relieve).

· Male: This group is generally more easy-going and will “go for anything which works”. However, we do have juices which are thirst quenchers, heat relievers and Energy Boosters to cater to them.

· Partying crowd: As our target market customers are aged between 18-35 years old, this group will consists of party-goers. To cater to their heavy alcohol intoxication, we introduced Hang-OVER that neutralizes effect of alcohol.

· Health Nuts: Although our target market customers are generally health-conscious people, there will be a specific group who are health nuts and see the benefits of caring for their health all the time. Our juices cater to these issues, with products like Cold Fighter (fight colds), Bright Blast (vision care), SeaBreeze (improve respiratory tract), Immunity Inc (strengthens immunity) and Hearty Attack (anti-cancer and anti heart-diseases).

6.4 Positioning

Staffs, however fail to display enthusiasm and are always looking tired.

Figure 6.2 Market positioning map

Orange Julius positions itself as a moderately luxurious brand that offers healthy, premium quality fruit-beverages at competitively low prices through premium services. Orange Julius will achieve optimum customer satisfaction by providing valuable customer service to customers. Staffs will display excellent enthusiasm in service by their vibrancy and friendliness.

Pricing is a key element as it measures the cost efficiency of products offered by Orange Julius as well as its competitors. There is a thin line between luxury and necessity, where luxury is often associated with a quality to buy regardless of price range. In this case, Orange Julius is definitely in an advantageous position, considering our moderately luxurious branding, healthy product offerings and competitively low prices (See Figure 6.2).

6.5 Strategy Pyramids

Figure 6.3 Strategy Pyramids

Our marketing objective is to boost our market share amidst competitors. The current market share of Orange Julius is 14%. Our marketing strategies are desired to boost market share by an additional 6% to 20%.

The above diagram illustrates our desire to adopt a more for less strategy that envisions placing a higher quality for a lesser price. Our marketing strategy aims to inform consumers that our products are of comparable quality but at a lower price. Through our advertising and promotional campaigns, we will convince our consumers that they are receiving more for the affordable prices that they have paid.

6.6 Marketing Mix

Marketing mix consists of the 4Ps (Product, Packaging, Price and Place). According to the survey as illustrated in Figure 6.4, the important factors influencing the customers’ decision to purchase Orange Julius products are 1^st Freshness, 2^nd Taste, 3^rd is Price of the products. In order to capture more market share from our consumers, we also need to focus on the other factors.

Figure 6.4 Factors for Customers’ Choice

From the response of the survey, we will thus focus on marketing our new Orange Julius® product line according to the freshness and quality of our ingredients as it is one of the critical aspects influencing consumers’ behaviour in purchasing our products.

6.3

6.4

6.5

6.6

6.6.1 Product

Figure 6.5 Current Market Share

Orange Julius is in a state of low growth, with virtually no promotional support, even as the market for smoothies and other blended beverages took off (See Figure 6.5). This is mainly due to the limited outlets of Orange Julius and poor brand awareness. To revivify Orange Julius’s brand, we are adopting an introductory strategy, with a focus on achieving higher brand awareness and sales through effective distribution and heighten promotional activities. We expanded our product line to include 20 new products for the product line. (Refer to Appendix E- menu)

Ø Website

Orange Julius® current website in Singapore is lacking severely in information and attractiveness. The information available in the website is also not up to date with the current events, promotions and store locations in Singapore. (The website is located at www.orangejulius.com.sg).

6.6.2 Packaging

Based on our survey, the current packaging was rated as the best among all our major competitors. The brand logo is distinctive, and users have no problem identifying the product (See Figure 6.6).

Figure 6.6 Best Packaging Voted From Survey Participants

6.6.3 Price

Figure 6.7 The Highest Price Consumers Willing to Pay

Based on the survey results, we can conclude that the majority of people are willing to fork out a maximum of $7- $7.80 for a cup of fruit-beverage (See Figure 6.7). Orange Julius’s fruit-beverages are made from quality fruits and ingredients while offering at a much lower price; generally 10% lower (See table 6.8).

Brand	Price
Average Market	$3.60-$5.80
Orange Julius	$3.20- $6.40

Table 6.8 Comparison of Price between Average Market and Orange Julius

Orange Julius is able to offer a lower price, due to the fact that we will be sourcing most of our quality fruits from Asia Pacific region and not from the usual Australian and Latin-American regions. This will lower export costs to a large extent, decreasing export taxes and overseas logistics costs.

6.6.4 Place (Distribution)

Figure 6.9 Location Map

There are 6 Orange Julius outlets around Singapore (marked in Orange):

· 1 outlet in the north – Causeway Point

· 2 outlets in the East – Escape Theme Park and Singapore Expo

· 3 outlets in Central - Orchard Road

Ø Location of Existing Outlets

The current locations of Orange Julius outlets are not advantageous to its business. 50% of the outlets are placed in Orchard Road. This is where the heat of the competition is. Orange Julius is competing with competitors who have capital resources for advertising and pricing advantages.

We have found out that the higher earners are denser in the South and West of the island (marked in blue). It will be more optimistic to relocate some outlets towards the Central Business District (South) and manufacturing (West) areas to gain market as these are more marketable areas with higher spending power from potential target consumers (Refer to Figure 6.9).

Ø Location of New Outlets

Orange Julius will also be setting up 4 new kiosks at locations which are buzzing with energetic lifestyle activities engaged by a youthful, vibrant crowd following. Compared to Orchard Road, these places are less dense in terms of competition. It will definitely increase buying power as it is more accessible. Possible locations include:

· East Coast

· Sentosa

· Changi Airport

· Bukit Timah

Ø New Café Concepts

Orange Julius will be opening 2 new cafes which allow customers to sit and enjoy their juices. These cafes will not simply be customers enjoying their cup of great tasting juice or smoothie. The brand is based on the entire Orange Julius Experience which takes place every time a customer enters a store. This experience is a combination of a fantastic product, served by friendly and energetic people who greet you with a smile, in a bright and colourful environment with fun music to match.

The store will have fridges where nicely diced fruits are placed for customers to pick, eventually handing it over to service staffs for blending. Existing menus of our product lines will still be in-store, but this time in our cafes, customers have the flexibility to mix and alter their choice of fruits. There will be proper controls and procedures to ensure optimal quality in our fruit-beverages.

Ø General Advertisement Distribution

Advertisements are to be customized to suit each location. For example Ads placed in Escape Theme park should focus on younger consumers whereas advertisements in Causeway Point should focus on promoting the benefits of Orange Julius’ fruit beverages due to its vicinity of Singapore Sports School. Advertisements in Orchard could have a general target focus, covering health issues to lifestyle trends.

6.6.5 Promotion

The Orange Julius promotion campaign will start from December 2009 to December 2010. We will be forming partnerships with companies through lifestyle events in Singapore such as; Standard Chartered Marathon, Youth Olympics 2010 etc. Our first main event, The Standard Chartered Marathon will be held in December 2009. We will be doing promotions for the Youth Olympic Games from 14^th August - 26^th August 2010. We will take this opportunity during these dates to promote our new range of products and increase Orange Julius brand awareness with the public as a healthy yet excellent-tasting fruit beverage.

Other advertising efforts like radio and print advertising will also be carried out, along with advertisements posted at selected transport transit stations aimed at increasing the public awareness of Orange Julius. At present outlets, monthly coupons will also be circulated to consumers through print media whenever they make a purchase.

The goal desired in promoting such a campaign is foremost to create awareness among the public. Eventually the ideal consumer’s perception we hope to receive is that Orange Julius is recognised as a strong brand that promotes freshness, vibrancy and a healthy lifestyle with the fruit juices it sells.

Ø Mobile Advertising

Mobile Advertising is held to increase brand awareness and to promote the new product line by bringing it out to the masses. The idea is to bring Orange Julius to the masses by renting vans to set up “shops” of our new product lines by giving out samples to the population in the different locations. Locations of these mobile adverts are reflected in Figure 6.10. These locations are selected because of their high traffic volume in the heartlands and town. These mobile advertisements will take place 2 times a month on alternate weekends for the first 3 months, December’09 - February’10.

Figure 6.10 Mobile Advertisements Locations

A vibrant, bright and fun environment is instilled at the locations. Pamphlets and coupons will be circulated out to the public and Orange Julius promoters carrying samples will let the public try out and sample the new product line. We will also be dispatching Orange Julius mascots around the area to promote its brand.

Ø Print Advertisements

Printed advertisements (half a page in the magazine) will be placed in magazines: FHM, Shape, Seventeen, Men’s Health and Cleo in months April, May, July, August and October. This is to ride along the hype of the Youth Olympics that will commence in August 2010. Emphasis on health is vital on the prints, embracing visuals that are bright fun and vibrant. This is to reach out and capture the attention of our target market group of Generation X and Generation Y.

We will also be forming partnerships with our targeted magazine companies to place our discount cards/coupons in the front of their magazines in order to entice consumers to frequent Orange Julius stores.

Ø Transit Link Advertisements

SMRT (Singapore Mass Rail Transit) and SBS Transit provides a good platform to reach a mass audience through their advertising billboards. We plan to publish our ads on their billboard spaces every month starting from December 2009 – December 2010. We also intend to place advertisements in prime heartland locations along the SMRT and bus lines with island wide coverage. (Refer to Figures 6.11 and Figure 6.12) Locations are: Jurong, Dhoby Ghaut, Orchard, City Hall, Bedok, Yishun and Bugis.From this medium, we will place ourselves at an advantage from consumers taking notice of our brand, which eliminates the “out of sight, out of mind” behaviour patterns.

7. Financials, Budgets and Forecasts

7.1 Overview

We use sales and expenses forecast to provide a financial overview of Orange Julius (new product line) marketing strategy. It is appropriate to use Income (Profit & Sale) statement to illustrate the relationship with the marketing activities.

7.2 Income Statement

The income statement is determined by using expected estimate of net sales revenue, (which is calculated sales less the loss by reducing the price level of current product line) as well as expends figures. The estimated figures are spread over a period of twelve months, which is the of the promotion period of the Orange Julius’ marketing campaign.

The sales generated and expenses incurred during this period is closely linked with the promotion effort which includes indirect sales from mobile advertising, Transit Link advertisement (SBS & SMRT), radio and print advertising, as well as those events we are supporting (Standard Charted Marathon, Singapore Bay Run & World Youth Olympics).

(Refer to Appendix B for the Income Statement.)

Based on the income statement, we have projected net sales revenue of an estimated 6.084 million Singapore dollars and incurred a total expense of 260.3 thousand Singapore dollars.

Figure 7.1Net Profit Graph

*Note: The net profit shown is before (tax / manufacturer / labour wages / electricity & utilities bill / research & development / license fee / logistics / & other operating expenses) deduction

Based on the projection, we will achieve a projected net profit of 5.823 million Singapore dollars. The above graph illustrates the net profit estimated in relation of our marketing activities. (See Figure 7.1)

7.3 Sales Forecast

Figure 7.2 Sales Graph

From the Figure 7.2, the graph indicates a steady and gradual increase in sales as it is linked closely with the marketing activities of that month. Heavy marketing effort was placed in the first three months of the marketing year by introducing mobile vans to bring Orange Julius to the masses. As marketing efforts increases, we expect to have an increase in sales and a decrease in sales when marketing effort decreases.

Radio advertising is held in the months of December’09, March’10, June, Sept and Nov’10 and Print advertising is held on April’10, May, July, August and October’10. These two advertising media is spread throughout the year and compliments one another during this marketing campaign. Transit-link advertising is planned throughout the whole year to create public awareness in Orange Julius products and its brand.

(Refer to Appendix C for the Sales & Expenses Budgeting Estimates.)

7.4 Expense Forecast

Figure 7.3 Expenses Graph

From the figure, expenditure is closely linked to the marketing activities of that month. There are two main expenses to take note of during the month of December 2009 and August 2010. During the Standard Chartered Marathon held on December 2009, expenditure is set to increase as we will be kick starting our marketing effort during the event by introducing our new product line and its brand. On August 2010, expenditure sky-rockets as promotional efforts increase to prepare for the Youth Olympics and Singapore Bay Run. Expenses for the rest of the months remain almost the same as promotion activities are consistent through the year.

(Refer to Appendix C for the Sales & Expenses Budgeting Estimates.)

7.5 Controls

The purpose of the marketing plan is to outline the strategy to be used for this year and to monitor the progress of the budget and sales on a monthly basis.

8. Implementation Controls

This includes operating controls and strategic controls which are essential in every successful marketing implementation.

8.1 Operating Control

8.1

8.1.1 Employee Recruitment

The job interview will be a primary source of information about the applicants. The purpose of an interview is to extract information from an applicant to determine his or her ability to perform the job. Hence, it is important to hire front-line employees with great communication and listening skills.

After applicants are hired, they will need to attend a three day training program to familiarize themselves with the products of Orange Julius. Training program entails:

· Outlets orientations: New employee will be shown around the outlets to interact with existing staffs.

· Product familiarization: New employees will need to know the products of Orange Julius and also understand the working environment in order to attend to customer enquiries.

· Dry run process: New employees will be doing work samples to determine specific job skills. For examples, employees who are responsible for preparing beverages will need to know how much fruits or juice to mix for cost and quality control. In the same time, there will be a supervisor evaluating and documenting the performance before they can start work on their first day.

8.1.2 Employment Evaluation Control

Every outlet managers are to evaluate every employee’s working attitudes and motivation level. Non-monetary incentive compensation will be provided as company’s appreciation to workers and thus, keeping them motivated to perform well.

Employees are given the authority to provide feedbacks about the products and how to improve customer purchase experience. By implementing employee empowerment in Orange Julius, this can result in increasing productivity and innovation.

The issuing of a monthly e-newsletter can improve employee retention numbers and decrease inventory loss in every different outlet. It also keeps employees up to date with the company’s monthly activities.

8.1.3 Hygiene and Quality Controls

Hygiene will be of essence since Orange Julius will pride itself on its premium quality product offerings. Therefore, to ensure quality consistencies across all outlets, training courses will be provided to ensure the exact amount of ingredients used in every cup of fruit-beverage. There will be outlet competitions which provide staff with incentives to ensure optimal hygiene is maintained.

8.2 Strategic Control

8.2

8.2.1 Marketing Activities Control

Advertising and promotional efforts must be evaluated to ensure maximum effectiveness. Firstly, we should start of by identifying which method of communication has pulled in more revenue. Secondly, we can understand why that particular avenue of communication is doing well. Finally, we also need to understand and utilize the psychology of a consumer's perceptions and apply helpful techniques to build brand equity. We might need to consider shifting some of our advertising effort to those markets who are more responsive.

The activities will solely be monitored on 2 primary criteria; profitability and timely application of strategies decided. Profitability of activities will be monitored using last year’s quarter-to-quarter turnover as comparison and simultaneously control must be exercised to match the planned targets.

From then on, the fusion of the two criteria will indirectly report on our progression and effectiveness of our activities.

8.2.2 Marketing Audits

The marketing audit will be performed on a bi-annual basis. Agendas that will be monitored on are:

· Amount of revenue in contrast with the campaign investment on the marketing strategies employed.

· The time taken to achieve the goal within the first year, which then will direct us to set a reasonable standard time range for a the profit margin for the subsequent years.

The financial manager will be in charged in analysing the data collated and auditing whether the report is reliable and if it can be punitively managed.

9. References

1. 12 manage-The executive fast track, 2009, Description of Differentiated Marketing, Explanation, updated 22 September 2009, viewed 7 September 2009, <http://www.12manage.com/description_differentiated_marketing.html>.

2. Bonvests Holdings Ltd, Bonvest Annual Report 2007, viewed 5 Aug 2009, <http://info.sgx.com/listprosp.nsf/07aed378bf53ffd8482574e4002cb6b8/9dd20d5fa06516e94825758d0027e65d/$FILE/Bonvest_AR'07%20(LR).pdf>.

3. Bonvests Holdings Ltd, Bonvest Annual Report 2008, viewed 5 Aug 2009, <http://info.sgx.com/listprosp.nsf/07aed378bf53ffd8482574e4002cb6b8/caca3cb179caed9e48257426001360de/$FILE/BonvestsAR2007.pdf>.

4. Director-General, Agri food and Veterinary Services, Food Regulations, 7 December, Agri-Food & Veterinary Authority Of Singapore ,viewed 5 September 2009, <http://www.business.gov.sg/NR/rdonlyres/99A16209-B959-4307-9F79-6D20365B6D55/8225/Attach60_legislation_Sale_FoodRegulations_rules.pdf>.

5. Ee, S 2009, About Lexus product review, the business times, viewed 5 September 2009, <http://www.lexus.com.sg/about_lexus/product_reviews/2009/2009_01.asp>.

6. Enterprise One 2009, Government of Singapore, viewed 4 September 2009, <http://www.business.gov.sg/EN/Industries/FoodNBeverage/>.

7. Fruitful Juice Products, Product Information, viewed 19 August 2009, <http://www.fruitful.com/prod_fr.html>.

8. MediaCorp Radio eRateCard, viewed 19 September 2009, <http://www.corporate.mediacorp.sg/mediarates_radio.html>.

9. Ministry of Manpower, viewed 11 September 2009, <http://www.mom.gov.sg/publish/momportal/en/home.html>.

10. Monetary Authority of Singapore, Economic Research & Resources, viewed 30 August 2009, <http://www.mas.gov.sg/eco_research/index.html>.

11. Orange Julius Fruit Drinks and Premium Fruit Smoothies, viewed 17 August 2009, <http://www.orangejulius.com/ >.

12. Kotler, P, Brown et al, 2009, ‘Principles of Marketing – A Global Perspective’, Pearson, Singapore

13. Schwepker et al, June 22, 2004, ‘Marketing control and sales force customer orientation’, Journal of Personal Selling & Sales Management, viewed 12 September 2009, <http://www.accessmylibrary.com/article-1G1-130347147/marketing-control-and-sales.html>.

14. SGX – Singapore Change Ltd, viewed 30 August 2009, <http://www.sgx.com/wps/portal/marketplace/mp-en/home>.

15. Singapore Department of Statistics, Economic Survey Series 2007 – Food & Beverage Services ISSN 0218-3978, viewed 14 August 2009, <http://www.news.gov.sg/public/sgpc/en/media_releases/agencies/singstat/press_release/P-20090202-2/AttachmentPar/0/file/F&B%202007.pdf>.

16. Singapore land authority 2009, Government of Singapore, viewed 4 September 2009, <http://www.sla.gov.sg/htm/ser/ser0307.htm>.

17. SMRT Website - SMRT Media, Advertising & Leasing, viewed 19 September 2009, <http://www.smrt.com.sg/advertising_leasing/documents/rates/Train.pdf>.

18. Statistics Singapore – Statistical Resources, viewed 11 September 2009, <http://www.singstat.gov.sg/statsres/resources.html#concepts>.

19. Suite101.com 2009, Best Marketing Strategies for Maximum Sales, updated 21Apr 2009, viewed 6 September 2009, <http://marketingpr.suite101.com/article.cfm/best_marketing_strategies_for_maximum_sales>.

20. The side road 2007, Market Positioning, viewed 5 September 2009, <http://www.sideroad.com/Marketing/market_positioning.html >.

10. Appendix

List of Appendix

Appendix A CPI Chart

Appendix B Income Statement

Appendix C Sales & Expenses Budgeting Estimates

Appendix D Monthly Breakdown – Revenue & Expenses

Appendix E Menu of New Product Line

Appendix F Sample Survey

Appendix A

CPI Chart

Appendix B

Income Statement

Sales revenue	$	$	Remarks
Sales from new products line		9,360,000	Potential target market is 1.5 million x 6% of market growth. i.e. 90,000 customers. Based on current sales, each customer would consume one cup of any products per week, each product will generate average gross profit of $2.00. Therefore, direct sales will generate a gross profit of $9,360,000.
Total sales generated		$9,360,000
Less: Loss of reducing price of current products		(3,276,000)	With average $0.20 price reduction per cup and current 14% of market loss will be generated a loss of $3,276,000.
Less expenses:
Mobile advertising	24,480		$1020 per vehicle x 3 vehicles x 2 events per month x 4 months
Events (Standard Chartered Marathon)	40,000		Cost price of a sample cup, $0.40 x 2 cups/participant x 50,000 participants
Events (Singapore Bay Run)	60,000		Cost price of a sample cup $0.40 x 2 cups/participant x 75,000 participants
Radio advertisement	17,400		Mediacorp Radio Advertising: Perfect 10 98.7FM ( $4400) Class 95 FM ( $13000)
Print advertisement	50,000		For 5 months ($10,000 per month for 5 magazines)
Transit link	68,400		SMRT (Singapore Mass Rail Transit) ($48600) & Bus Line( $19800)
Total expenses		(260,280)

Net profit (before tax)		$5,823,720

Appendix C

Sales & Expenses Budgeting Estimates

Total Population Profit
Total Population	4,680,000
Target Market Population	1,500,000
Current Market Share	14%
Market Share Growth	6%
Net Increase in population	90,000
Average Gross Profit Per Cup	$2.00
Total Net Profit Increase	$9,360,000

Expenses for Mobile Advertising
Activities	$	Remarks
Pamphlets distribution	360	3 cents x 12,000 pamphlets
Petrol	60	1 full tank for whole event
Samples	400	40 cents x 1,000 cups
Salaries (2 workers including driver)	200	$100 x 2 workers
Total Mobile Advertising for 1 vehicle	$1,020	Total expenses for one vehicle

Expenses for Transit Link
Activities	$	Remarks
Expenses of 4Sheet Panel Advertising (Inside MRT station)	21,600	$3600 per week x 6 weeks (Dec 2009-May 2010 first week of each month)
Expenses of Window Sticker Advertising (Inside MRT train)	27,000	$4500 per week x 6 weeks (June 2010-Nov 2010 first week of each month)
Expenses of One SMRT Bus Advertising	19,800	$1650 per month x 12 months (For wholly painted bus 12m)
Total Expenses For Transit Link	$68,400

Appendix D

Monthly Breakdown – Revenue & Expenses

	Dec	Jan	Feb	Mar	Apr	May
Net Sales Revenue	$364,000	$422,500	$468,000	$507,000	$494,000	$487,500
Expenses	$54,850	$11,370	$11,370	$8,730	$15,250	$15,250

Expenses

Event (Standard Charted Marathon)	$40,000
Radio Advertising	$3,480			$3,480
Print Advertising					$10,000	$10,000
Transit Link	$5,250	$5,250	$5,250	$5,250	$5,250	$5,250
Mobile Advertising	$6,120	$6,120	$6,120

	Jun	Jul	Aug	Sep	Oct	Nov
Net Sales Revenue	$546,000	$533,000	$585,000	$559,000	$546,000	$572,000
Expenses	$9,630	$12,270	$76,150	$9,630	$16,150	$9,630

Expenses

Event (Singapore Bay Run)			$60,000
Radio Advertising	$3,480			$3,480		$3,480
Print Advertising		$10,000	$10,000		$10,000
Transit Link	$6,150	$6,150	$6,150	$6,150	$6,150	$6,150
Mobile Advertising		$6,120

Net Sales Revenue = Sales Revenue by New Product Line–Lost by Reducing Price

Appendix E

Menu for New Product Line

Appendix F

Sample Survey

Orange Julius®

We are a group of marketing students currently studying in Singapore Institute of Management (SIM).
We are conducting a marketing survey for Orange Julius® and we would like you to participate in it.
Your participation is greatly appreciated and it is strictly voluntary on your part.
This survey contains 18 questions and it would take you about 15 minutes to complete it. We value your opinions seriously.

If you have any enquiries, please do not hesitate to send an email to, Nicholas at nicholasliao@hotmail.com
All information is kept strictly confidential and we would not give out your personal information to anyone.
The completion and return of the survey is an acceptance on your part to participate in it. Thank you.

*1)

Gender:

Male

Female

*2)

Age:

*3)

Income:

$0 - $1000

$1001 - $3000

$3001 - $5000

Above $5000

*4)	How often do you purchase/consume fruit beverages (fruit smoothies,fresh fruit juice)?

Everyday

Two or more times a week

Once a week

Once a month

Seldom

*5)	What do you look out for when buying fruit juices/fruit-based smoothies? (Rate from 1 - 6, 1 being the most important and 6 being the least important)

Freshness
Taste
Variety
Brand
Service
Price

*6)	If you were to choose from the variety stated below, which of these items will appeal to you? (You can tick more than one.)

Fresh fruit juices

Fresh fruit juice mixed with added nutrients (Eg: Heart health nutrition boost, Joint care nutrition boost, Fibre plus nutrition boost.)

Exotic juices (Eg: Dragonfruit, Avocado, Kiwi, Lemon grass, Lime.)

Fruity Yoghurt Drink

7)	What is the first product that comes across your mind when we mention Orange Julius®? (You can only choose one)

Flavour enhancer

Freshly squeezed fruit juices

Ice-blended smoothies

Yoghurt drinks

*8)	If you do not drink fresh fruit juices/fruit based-smoothies, what is the reason for it? (You may tick more than one)

I don't drink fruit juices at all

Too expensive

Fruit juices do not taste good

Can't find any fruit juice stalls near my area

Do not see the benefits of consuming fruits

Other (Please Specify):

*9)	Have you heard of Orange Julius®?

Yes (If yes, please continue onto the next question.)

No (If no, please skip to Question 14)

10)	When purchasing fruit beverages, would you consider Orange Julius® as your top 3 choices?

11)	The following questions are related to Orange Julius®: ________________________________________________ How did you get to know about Orange Julius®?