Blue Diamond Walnuts
Kahlfanie Carabon
Keller School of Management
April 19, 2015

Executive Summary
Today’s walnut market is growing increasingly. It is projected to increase by over 25 percent in the next 3 years, (USDA, 2014). There is a grand opportunity provided by the rise in walnut demand that come s in the form of a brand extension for Blue Diamond to extend its reach into the walnut market. This extension would be two fold. The first would be opening up production to support our walnut products. The second would be securing that production in China’s rich walnut market. There is a high demand for walnuts in China, represented by their high import of the nut. The opportunity is prime for brand extension. The market has evolved in such a way that it will be strong enough to secure this move. The strengths come from several factors which are, demographics, history and awareness. The demographics factors are strong and numerous. The infrastructure is there, the people or future workers are there and the consumers are already supporting the product, just without the Blue Diamond stamp on it. History tells us of China’s linage with nuts in general that has proclaimed them as the number one exporter of nuts. An article by William Neuman in the NY times reads,
“Last year, China was the top foreign buyer of American walnuts, and in 2007, it became the leading export market for pecans. Altogether, China bought $737 million in tree nuts from the United States last year, up from just $89 million five years earlier, according to the United States Department of Agriculture.”
This trend speaks of a plethora of possibilities for Blue Diamond and it does so in the language of opportunity. These factors all tie in to the last and most essential factors for this brand extension.
Walnuts have been in the Chinese market for over a century, Blue Diamond have been in the Chinese market for several decades. Consumer know and are aware of both. It is simple logic to take advantage of this opportunity and combine a product with a company the Chinese consumers love. Using this methodology it can be said that if we give the consumers what they love from and company they know and trust that everything else will fall into place. This is the foundation for Blue Diamonds brands extension and will be the company drive as it moves forward. Two additional initiatives will be implemented as a means of supporting the brand extension. They include Blue Diamond Walnut break room, and Blue Diamond Walnut Co-op. These measures will help, stabilize, secure and structure the brand extension. A. IMC Objectives
Blue Diamond Growers is a grower owned business established in 1910. Supported by the hands that cultivate, grow and harvest the ingredients for Blue Diamond products. With over 100 years of business under its belt they have established themselves as the primer almond company. Their products range from almond milk, to cookies and even fruit flavored almonds. The almond industry is valued at over $6 billion dollars but there is another nut that is not far behind, (BlueDiamondGrowers, 2015). However in recent years the market for another nut has steadily been increasing. Walnuts have swept the market. They generate over $1 billion dollars in farm gate revenue while supporting over 60,000 jobs, (CaliforniaWalnuts, 2015). Blue Diamond Growers are eager to team up with California’s walnut growers to establish a new line of walnut snack products. Blue Diamond Walnuts are distinctively California, grown in the soil of the Golden State. Supported by over 4000 growers working together to celebrate and fuel discovery, promoting opportunity rooted in 100 years of experience that is always distinctively California. It is this distinction that links Blue Diamond to its consumer.
In life few things are today what they were yesterday, the same is true in business. Blue Diamond’s name has survived through two world wars and over 100 years of business. Today, 100 years later, the same soil produces the same products our great, great grandparents knew.
Supported by greener production techniques more growers and a family tree of Blue Diamond consumers. Recognized by the Blue Diamond logo that now carries the word “GROWERS”. Boasting as a symbol of Blue Diamond’s “Power in Partnership” with the growers who are the stewards of the land who produce the safest, best quality a products, (BlueDiamond, 2015). Blue Diamond’s almond products are stocked in stores spanning the entire North American continent and reaching far beyond. Blue Diamond products can be found in the United Kingdom, Australia, China, Finland, France, Germany, Hong Kong, India, Japan, Korea, Thailand and several other countries, (BlueDiamond, 2015). The California Walnut Commission reported that in February of 2015 walnuts were exported to countries in Central and South America, the Middle East and Africa and Asia/Pacific Rim. Out of these locations Asia had the greatest amount of imports at well over 1 million pounds, an increase of 2.73 percent over last year’s imports, (CaliforniaWalnutBoard, 2015). The Asia/Pacific Rim region seems to be a hot spot for walnuts and a prime location for Blue Diamond Walnut market.
Over 90% of the world’s walnuts are grown in California and of that 90 percent, 60 percent of them are accounted for by exports; with strong demand from Asia, Europe and the Middle East. This will allow Blue Diamond to leverage their brand extension. Through the relationships they already have with many growers, factories and transporters. Providing a means to capture a greater percent of markets they are already in, while claiming stake in new markets worldwide, (CaliforniaWalnutCommission, 2012).
Blue Diamond boast the largest footprint out of the 110 companies in the same market, (White, n.d.). With a consumer base that is six times as large as its closest competitor, (White, n.d.). The company’s healthy imitative, fueled by its various products, has resonated well with consumers, resulting in tremendous growth and consumer retention. Blue Diamond plans to build this as an asset for its new venture. Guiding, existing and new, consumers with a company history of value towards the experience of Blue Diamond Walnuts.
While Blue Diamond will be adding a new product they are no strangers to the world of nuts. It is this long history of experience that will support the extension. With consistent measures established through years of practice, focused on nuts Blue Diamond will continue to step within the means of its identity with its new walnut products.
Through over a hundred years of business you gain more than loyal consumers. Blue Diamond has gained partners, cultivated lasting relationships and community ties. With a wealth of investments going out to support these relationships. Blue Diamond is in impeccable standings with the BBB, its 3 year complaint history is well below industry average, (BBB, 2015). It is safe to say consumers are happy. However as stated earlier Blue Diamond is not satisfied with loyal consumers, rather they are driving for relationships that extend beyond the purchase of their products. However it is through their products, specifically their new walnut products, which they will use to plant seeds of good regards, devotion and mutual benefits.
The goal is to put our walnut products on the shelves and count on our consumer to continue to do what they are doing. Our consumers have come to expect a certain level of product from Blue Diamond. That includes a level of value, consistency and reliability, which is package is every Blue Diamond product. Our nuts continue to come from the same California soil and from the same group of growers. This secures product value, genuineness and dependability. Those who buy Blue Diamond share a desire for healthy products that are also environmentally in growth and production. Blue Diamonds social media pages are filled with likes, shares, retweets and comments that often read, “I just LOVE Blue Diamond almonds...delicious treats!!” (Scatena, 2015,) and
“my kids have a handful of raw blue diamond almonds on their cereal every morning and usually blueberries too... no sugary cereal though.” (Rolland, 2015). So this new line of walnut products will give consumers what they have come to rely on in a different package. Currently there are a number of other companies already established in the walnut industry, the leader being the California Walnut Company. The expansion into the new market in an already crowded region would prove difficult, thus Blue Diamond has established it marketing and corporate objectives in relation to this information. Providing a simple solution for gaining a 10% market year within the first year, and that 3-4% in consecutive years, driving towards being positioned as an industry leader and achievement recognition through service and merit that results in specific awards. This plan, which we be expounded upon in the following sections include, establishing plants abroad, cultivating relationships with walnut growers and using definitive information from a market analysis to secure measures of success. B. SWOT Analysis
The workforce, current supplies and financial resources are strong enough to support a move into the China. China, in the last 3 years, averaged produces over 690,000 pounds of walnuts. Respectively, that makes then 2nd in the level of walnut production worldwide, (USDA, 2013). However there are a number of factors that need to be accounted in relation to China’s market, economic trends, and relationships with suppliers, international law and regulations. Chinese business model with foreign companies is to establish a joint venture, which provides for mutual benefits. Through such a venture Blue Diamond would be able to navigate the new market, build supplier relationship, better interoperate laws and regulations and be able to establish business without fear of misinterpretation. The popularity of walnuts in China are founded on several factors they include behavioral occasion, demographics and geographic. Taking these factors into account will ensure we reach the right people at the right time through the right medium time to maximize profit. Additionally it is well known that all walnuts are heart healthy, nutrient dense and provide a host of health benefits. What separates Blue Diamond Walnuts from the rest is our team that supports all facets of the Blue Diamond Walnut brand. The most educated and experienced growers matched with cutting edge factory technology helps us deliver consistently great walnuts. Two factors make up the customer profile they are demographics and health awareness. Asian cultures have a strong relation with walnuts as do the health conscious. The specific customer would fit the demographic profile while also being health conscious.
Blue Diamond focuses on the manufacturer to retailer to consumer channel of marketing. This is the same avenue used for Blue Diamond Almonds and will be the same one used for Blue Diamond Walnuts. The major facilities are located in Sacramento and Salida California, however since China walnuts are China’s most popular tree nut, consuming over $104 million dollars of walnuts, a facility in Yunnan, China’s top producer of walnuts, maybe likely. Chinese consumers who have come to relish in the California imported walnuts will not be disappointed. As Blue Diamond will continue to found its business on these same walnuts. Some integration will be seem but at negligible levels.

C. Communications Strategy Plans, Budget and Schedule
Blue Diamond has established itself as a leader of almond products. It is important as they move forward that distinction be created with their new walnut line. The goal will be to establish Blue Diamond walnuts as a standalone product with the same values as all other Blue Diamond offerings. Since social media has supported growth it will continue to be used. A stable platform for this medium will be provided by the huge tech market in China. Using this medium to increase exposure for the new product is key. We feel that the effective frequency for current Blue Diamond consumers is twice as compared to new segments at 4. With the new segments we intend to strive for exposure rates of 3 per consumer to help establish an effective reach cycle.
In 2012 Blue Diamond Growers recorded a net sales and other revenue of over 1 million dollars, (BlueDaimondGrowers, 2012). The U.S. Small Business Administration advises business to spend roughly 7 to 8 percent of gross revenue on marketing but up to 20 percent for those in competitive markets, (Boykin G, 2015). In the competitive walnut market advertising is key so the aim will be closer to the 20 percent mark at about 15. Giving us a marketing and advertising figure of 150,000.
The bulk of the 100,000 advertising budget will be used toward social media marketing. Here we will invite consumers to be a part of the Blue Diamond Growers community. Taking part in events, discussions and stay up to date on the latest from Blue Diamond. We believe that consumers do so much for building a brand that it would be irresponsible not to listen to their voices. Social media will allow us to develop an air for the consumer’s voice. Blogs, fan sites, and other media venues will connect us with recommendation, concerns and likes from the consumer.
Direct marketing and sales promotion will be a vital part of securing a foothold in China and so will be supported by the following budget a 20,000 personal selling, discounts and promotions 30,000 and 50,000 for direct marketing. The way Blue Diamond is tackling this phase is founded on the following methodology. More important than our consumers getting to know us is that we get to know them. Through channels like YouTube, where fitness channels now account for over 30 percent of the media, we can invite consumers to be product testers and review or new line of almond products, (Sparkpeople, 2013). Creating conversation about the product will allow us to see what people like and dislike. We are in a tech savvy age and we intend to use that to our advantage. People are usually never without their phones. Emails and text coupon or special offers will allow us to travel with our consumers where ever they go. The following also define a number of viable option that are being considered; personalized mailings, emails concerning special offers coupons, price-off, gifts with purchases, contests, samples, mail sampling, newspaper sampling, on-package sampling and mobile sampling.
As mentioned earlier laws, regulations and cultural views pose as a concern. However Blue Diamond has a history with the market in China and thus the laws, regulations and cultural views. None the less with the support of a Chinese venture steps will be secured to ensure that the company stays ahead of any possible public relations issues. These measures will be reinforced by a 100,000 public relations budget. Which will include supporting brand integration, outreach and partnering and new business models.
As a means of getting beyond the shelves of stores Blue Diamond plans to use this brand extension as a means of getting into schools and business. This imitative will include Blue Diamond vending machines, stocked with healthy snack items. These items will also be available to consumers in Blue Diamond break rooms. A plan to manage business break rooms by making them more vibrant, yet relaxing and full of Blue Diamond products. It is important to respect the community of walnut growers who have long supported the Chinese demand. Blue Diamond understand that and plans to act accordingly. That is why outreach and partnering are an integral part of the brand extension. While Blue Diamond will continue to use mainly California walnuts, it will support the community of growers currently in China in several ways. By using these growers as third party vendors and hosting conferences that bring California and Chinese walnut growers together Blue Diamond will cultivate relationships and partnerships. The next measure has two purposes, it will be a drive to build a new business model that will also supporting Chinese walnut growers and thus supported by the Chines walnut industry. Co-ops are a familiar business model one that has seen a rise in popularity because it has a way of bringing like-minded people together in a way to allows everyone to share in growth and success. Blue Diamonds approach will be such, growers in China will be given the opportunity to co-owners in future facilities, the Blue Diamond break room projects and Chinese investors will be given priority for buying stock in the new businesses. These measures are to create ties, diffuse any possible tension and spread the Blue Diamond culture of health equaling happiness and happiness equaling success for all.
Blue Diamond believes walnuts are the foundation and the glue that will bind this brand extension together as unknown circumstances arise. That being the case the plan for implementation will be centered around the harvest cycle of walnuts. In California walnuts are harvested between the months of September and October, (Mclachlan, 2011). In this three month period, walnuts are shaken from their trees, swept up, processed in factories this include cleaning and in some case de-shelling and the packaged. Autumn in China is describe as the best time to visit. This is because, the winters cold have yet to arrive, the summer’s heat have dissipated a bit and the wetness of the spring are past, (Nanumann, n.d.). During this period autumn has colored the tree leaves with fall colors, making for bustling outdoors activities. Such outdoors activities with picturesque scenes and great weather will make for a perfect setting for Blue Diamond to introduce its not products. Walnuts will be in peak harvest and the environment in China will be in full support of the activities that are planned to be used to introduce Blue Diamond Walnuts. These plans include a host of initiatives that have been prepped by the public relations campaign, rallies, direct marketing, media relations and various others. Blue Diamond will use the opening of new facilities as a media day. Inviting walnut growers, consumers and their families to join in the event. Helping Blue Diamond to celebrate a new venture but it will also be used to show how Blue Diamond Walnuts will be a great benefit to the Chinese. With new jobs, more variety from a company they love and opportunity to become business partners. The vicinity of Yunnan, China will be ground zero for this event, as it is already home to one to the largest walnuts plants in China.
The Blue Diamond culture is such that it represents quality, partnership and innovation. With this new line or walnut products Blue Diamond intends to see these values extend and excel. Through active consumer activism and partnership we will provide the best tasting, highest quality nut product for snacking, cooking, foodservices and gift giving, (BlueDiamondGrowers, 2015). Blue Diamond will continue to build on China’s rich walnut market in support of the country, its consumer and opportunities for both.

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