Maxwell House Alternatives & Implementation Plan

PRESENTED BY: JUSTIN COLE, SUMIT SYAL, EDDIE HUANG, ANTAYA JONES, BRANDON DARTNALL AND SAKTHIVEL KARUNANITHI

1917-1989 1990-2005 2005-2010 2010- Present

AGENDA • Company Background

• Organizational Objectives

• Evaluation of Alternatives

• Implementation Plan

Company Background • Founded in 1892 by Joel Cheek in Nashville, Tennessee

• Maxwell house produces a variety of ground coffee. (ex. 100% Columbian, Dark Roast…)

• Produces many line extensions such as instant coffee, beverage mixes

• Fun Fact: Maxwell house coffee had the 26 President of the United States, Theodore Roosevelt visit and stated the coffee was “good to the last drop”

Organizational Objectives • Increase revenue of overall sales by 15% from January 2016 to December 2016

• Increase unit sales of ground canned coffee by 30,000 units in Loblaws and Metro locations in Ontario in 2016

OBJECTIVES: WEIGHT ALT A: Bundle with other products associated with coffee (mugs, creamers)

ALT B: Launch a new line of Microwavable coffee (market development)

ALT C: Implementing a new line of tea and hot chocolate as part of a new winter collection

OBJ 1: Increase revenue of overall sales by 15% from January 2016 to December 2016

3 3x3=9 3x3=9 5x3= 15

OBJ 2: Increase unit sales of ground canned coffee by 30,000 units in Loblaws and Metro locations in Ontario in 2016

2 2x2=4 1x2=2 2x2=4

TOTAL RATING 13 11 19

Recommendation Alternatives Pros Cons

Alternative ABundle with other products associated with coffee (mugs, creamers)

• Increase total unit sales under the Maxwell house brand

• Bring awareness to the lesser known products in the Maxwell brand

• Higher customer value

• Loss of profit on individual sales• Takes up more shelf-facing that

could be filled with other Maxwell House products

Alternative BLaunch a new line of Microwavable coffee (market development)

• Penetrates the on-the-go market(convenience, active lifestyles)

• It is an untapped market

• Risk of reduced product quality• Risk of low consumer appeal

Alternative CImplementing a new line of tea and hot chocolate as part of a new winter collection

• Brand diversity• Increases market share

(currently holding 12.9% of market share)

• Risk of failure• Possibility of market saturation

Why is Alternative A the best option? • Has the best flexibility out of the other two options, even though the weight was lower

than C

• Alt. A has the best improvement for both objectives

• Will increase unit sale while increasing revenue of other products under the Maxwell house brand

• With this alternative Maxwell would not have to risk additional capital because of the use of already established products

• Its ranking in the evaluation matrix was 2nd with 13 points

Target Market • Male and female, ages 30+

• They emphasise value and efficiency

• Urban active lifestyle

Marketing Mix Product• Creamers• Various coffee flavors • Mugs• Sample packs of other Maxwell products

Place• Available in many grocery stores such as

Loblaw and Metro• Corner stores

Price• Increase price to 12-15$ a unit, price varies on

bundle

Promotion• Grocery Store Flyers • Social Media (Facebook, Twitter, Instagram,

YouTube) • Contests (raffles) • Radio Promotions • Discounts

Timeline

Budget ITEM AMOUNT IN CAD $$$ CALCULATED AS SOURCE OF COSTS

Social Media Manager 32,850 Yearly

Radio Advertisements 3,360 Yearly

Facebook Paid Advertisements

25,000 Yearly

References • Maxwell House. (n.d.). Retrieved March 23, 2016, from http://

logos.wikia.com/wiki/Maxwell_House?file=Maxwell_House.png

• Facebook logo. (n.d.). Retrieved March 23, 2016, from https://www.facebook.com/maxwellhouse/?fref=nf

• ☕️Coffee,Coffee & More Coffee!! . (n.d.). Retrieved March 23, 2016, from ☕️ https://www.pinterest.com/pin/422845852488229913/

• Maxwell House. (n.d.). Retrieved March 23, 2016, from http://www.kraftfoodsgroup.com/brands/largest-brands/brands-m/maxwell.aspx

• The Hangover. (n.d.). Retrieved March 23, 2016, from http://www.starpulse.com/Movies/Hangover,_The/gallery/Hangover-movie-10/