Marketing_Strategy

Marketing Strategy or Plan Introduction The cereal bar market in Australia is rapidly expanding. Bored with conventional approaches to cereal or ready to eat bar, aims to add extra value to an already popular product. The cereal bar market is now looking for extra ingredients in the bars to persuade customers on to that particular brand. The reason being is so that the target market has to find it easy to access the product; this can be established by increasing the supply chain so the product can gain shelf space in supermarkets and general stores. The market is helping people aged 18-25 stay healthy and also help them make up for the breakfast they did not have time to eat (Globe Newswire, 2008). Health has been a major driver in the cereal bar market and is becoming increasingly important. A healthy, organic, fair trade and nutritious product is in demand and is the trend in the market. These are also our competencies as a niche cereal bar company and on top of this there lies in the added glucose energy boost. The Organic Food market continues to be one of the fastest growing segments of the Australian food market, the values of the market has almost doubled by 2005 and is estimated to grow by another 49% by the year 2012. It is appeared that this is the right decision in entering the product into the market now as it is still growing and has a good rate of growth. The company expect to take advantage of this growth and implement the brand name and image into the market by gaining market share. An analysis was carried out on the external environments of the cereal company with a view to employing the strategies necessary to achieve its objectives. Environmental analysis is the process of assessing and interpreting the information gathered through environmental scanning (Pride, Elliot, Rundle-Thiele, Waller, Palandino & Ferrell, p. 57). The aim of this particular analysis is to identify the impact that environmental factors would have on breakfast cereal production and company. The external analysis looked at the macro-environment, the market and the competition in order to identify our opportunities and threats. Demography is the study of populations in terms of their size and characteristics (Adrian Palmer, p.59). The demographic environment is of major interest to marketers because it involves people and people make up the market. The local population which currently stands at approximately 21 million and is expected to increase by just a slight margin by the end of the year. Although the total population of most countries is stable some western countries are experiencing an increase in the proportion of elderly people, thus companies which has notice this trend have responded and develop means to meets the needs for particular groups of residents (Adrian Palmer, p.59). In the case of breakfast cereal the impact of growing society is deeply felt in many ways. But there are ways which this could be dealt with properly. This could either be done by introducing nutritious cereals rich in calcium to strengthen weakening bones in the older people. The reason being is that bone narrow disease is very common in elderly people and if this kind of initiative was in established then the risk developing one could be reduced. Introduction cereals which are high in carbohydrates to increase their energy levels to allow them to tackle much needed daily activities. As a result of the advocating of equal rights for women, we have seen that women are now taking on more leading roles in the society. The education system allows for equal opportunities for men and women, and it appears that the women are currently achieving better grades than men. Women currently make up 50 % of the workforce. Political forces influence organizations in many ways which can either create advantages and opportunities for organizations. Conversely they can place obligations and duties on organizations. It is believed that marketers should monitor the changing political environment because political alterations could have profound effects when pursuing marketing opportunities (Adrian Palmer, p. 55). However, following the increasing campaigns against sugary breakfast cereals and the global awareness of the health risks associated with sugary cereals, we propose the introduction of more reduced sugar cereals into the variety of breakfast cereals. Other factors that affect customer’s willingness to spend are things like recessions, prices, unemployment, income levels and family size. In the already shrinking world, it is evident that the recent economic recession had affected consumer’s purchasing power. For example it leads to increase fuel prices, which meant some people were force into public transportation usages. According to data collected from the bureau of statistics, it’s has been stated that more people had stopped large scale spending due to economic crisis. The technology tents to be available such as the modern telecommunication systems are availability, including fibre optic telecommunication and Internet. Through such advance system products promotion and products, the system could be used to sale cereals through online service. Approximately 20% of the population have access to computers now compared with 10% in 1999. The ideal customer is between the ages of 13 and 25 who enjoys a good morning bowl of breakfast cereal and be able to take a nutritious snack bar to school. The reason being is that studies have shown that children who skip breakfast cereal experience lack of concentration which in turn lead to poor performances, both in school and work place. Customers are typically children, single parents, and males who own home leading independence lifestyle as they have a wide range of disposable income. Some however are teenagers living at home; others are college students or those who have joined the workforce in the last 5 years. These are the two types of customers that define the demographic of cereals customers. Teens (including pre-teens) and young adults, which for the purposes of this marketing plan will include teenagers age 18 and above as they are considered young adults by the general population as well as by the law. Demographic segmentation refers to the process of dividing the market into groups based on variables such as age, gender, income, occupation, education, religion, race, nationality, family size, etc. Age is an important demographic variable for the product will target certain segments that are more likely to consume healthy food products. The logic behind using age as a segmentation variable is the fact the consumer needs and wants change as they grow older and marketers need to design products, packages and promotions to meet these needs and wants. The healthy breakfast cereal product will focus more on children – 3 to 12 years old and senior adults – above 65 years old. The children segment is chosen due to the parents’ increased concern regarding child obesity in Australia, whereas the senior segment is chosen due the government’s increased concern for growing health care expenses generated by an aging population and a shrinking taxation base generated by a slowdown in national rates. Through careful strategy the company focuses on developing an initial set of libraries containing breakfast cereal attributes that can be combined to create new nutritious cereal. Upon launching the first set of cereal boxes and snacks, we will stay in regular contact with our customers via numerous online methods, including social media and email marketing to give the consumers the opportunity to share their ideas about the newly developed product. After creating these libraries and information session, we will be able to market fast-turnaround consulting services to organizations who would like their own promotional alternate. The reason being is that customers get tired of present product quickly and demand constant innovative release of new products to meet their desire. As a result we will be releasing new cereals boxes and snacks within five to six months, relating it to current a fair. For example, if a famous person such as Cadell Evans a recent winner of the tour of the France won, we would then have a picture of him on some of the breakfast cereal boxes. On the other hand if a celebrity makes a foolish comment, innovator will access the data and associate that statement with a creation of nutritious snack bar. The cereal consumer’s market enjoy delicious cereal bar that give them a sense of energy and excitement, allowing them in some way to live vicariously through their daily activities. The breakfast cereal customers mainly consist of young people. Since the youth and young adult demographic are so large, it is also very lucrative. There are countless products targeting this demographic, from soda manufacturers to clothing designers to hair product companies. This segment can also consist of recruiters, which can be for military service or other jobs. Companies who already spend millions of dollars on marketing to this group are regularly looking for newer, more creative ways to reach this market to reinforce their brand and sell products. Organizations who want to reach males (and females, though it is a smaller proportion of our defined customer base) between 13 and 25 realize that this group has a lot of spending power. This age group is not yet used to saving money so they typically spend a lot of what they earn. As a result it is in the best interest any organizations not just us, who want to reach this market early and need to do so in catchy, creative ways. Much to the dismay of an older generation, teens and young adults are reading less and spending more time in front of a screen, whether it be television, a computer or a mobile phone with a variety of applications. The managing director needs to reach these target market where they hang out. Therefore those in charge should typically have large budgets to spend on marketing and willing to try new things, as long as they show results. The aim or the objective is to steer the cereal company on a course that will enable it to secure the production of new innovative products, while at the same time strengthen its position in the local industry and achieve greater levels of profitability year after year. To attain this, the focused on the following objectives, which include retaining existing customers, win new customers, and raise $65 million over the next three years. The company would work tirelessly to increase customer’s awareness about the newly introduced products, as well as ensuring their demands are met. This could be achieved by generating $ 400000 in sales by the end of every 6 months and increase sales by 100% by the end of third year. The entity will in reduced sugar cereals into variety of breakfast cereals to meet the demand of those customers who prefer to consumer low in sugar cereals. The target market of will be advanced to provide for other age groups as well. So as to be successful in marketing the product will be sold in wholesale retail chains and grocery stores all over the country, where samples will be used in various locations. The products will be accessed through the website and distributed all over the country. Reaching senior marketing executives is typically done through a variety of means. Since we have limited resources and need to manage our finances very effectively, we will focus on two: advertising and networking. The advertising will primarily be online via search engine ads so we can see the results within days instead of not knowing whether a print ad has any effect. We have identified 4 trade shows and 3 conferences that these executives typically attend over the course of a year. Part of our marketing plan is to attend these events to network with these potential buyers. We also will submit responses to calls for papers to be speakers at some of the events when possible. When marketing their products firms need to create a successful mix of the right product sold at the right price in the right place and using the most suitable promotion. To create the right marketing mix, businesses have to meet the following conditions. The product has to have the right features - for example, it must look good and work well. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. Marketing mix stands for four P's of the marketing management--Product, Price, Place and Promotion (Neil H. Borden1964). Though with the passage of time there have been attempts to increase these P’s to include three more P’s –Personal, Physical Evidence and Package but mostly these four are still considered to be the main ingredients of the marketing. The premise of these four P's is that all marketing decisions generally falls under one of these broadly categories. The main product of the breakfast cereal company is the snack bar. The snack bar is the most convenient product which offers consumers 10 precents saving and 100 precents satisfaction guarantee to increase more positive innovation within the industry itself to allow competitive edge. The incentives, along with the simplicity, speed, and convenience of the system, and the use of technology it will result in production of three millions snacks bar within months. The company will ensure that 70 precents of the produced goods would reach the right customers, the purchase of a snack bar would reduce the amount of time spend in queues, as the product will be made available through various sources. One of the advantages of purchasing a snack bar is that it comes with pricing tactics, leading to low pricing. In order to be known into the market place and as a new entrant, the company will provide its target market with an affordable cost while providing them a high quality products and services. The company will be given the customer and client a price that is lesser than its competitors so that the consumer will enhanced to buy and patronise the snack bar. In order to be known in the market place, the product will be distributed directly to its clients and consumers. But to be known internationally, one of the strategies that the product will utilise is going on a joint venture with distinguished distributors who share similar aspirations in relation to the company. After such a lucrative venture had been established the company would offer it consumers with great deals as a way to market the product. The reason behind having a joint venture is so that the company can enjoy the prospect of being known locally and internationally, as well as developing clients trust worldwide. Although having a joint venture seem to be a good opportunity, one other way to promote the company and its product, will focuses on the use of video advertisements, print advertisements and the concept of e-marketing. These promotion and communication strategy will tend to meet the consumers form different places everywhere, especially those target markets or consumers in the work place. Moreover, since the trend in the market place today is the usage of e-marketing, the company will provide a website that any client can access. The use of the internet is changing high tech marketing overnight while different industries have been trying to use it as part of their marketing strategy. It does not only configure the way different firms do business and the way the consumers buy goods and services. The reason being is because it also becomes instrumental in transforming the value chain, from manufacturers to retailers to consumers, creating a new distribution channel (Donthu and Garcia, 1999). E-marketing is a powerful tool used by different business organisations around the world. It is defined as a process of achieving marketing objectives through the use of electronic communications technology. Smith and Chaffey (2001) have provided a 5S’s mnemonic for how the internet can be applied by all business firms for different e-marketing tactics. These 5S’s are selling, serving, speak, save and sizzle. E-marketing is also known to be the online marketing strategy utilised by different companies’ objectives is to be the best in their field. Thus, the company will create its own website. The main objective of utilising e-marketing strategy is to appeal and to keep in touch with different internet users so it can be able to attract more clients and consumers. Conclusion Smith, P.R. and Chaffey, D. (2001) e-marketing excellence: at the heart of e-business. Butterworth Heinemann, Oxford, uk Donthu, Naveen and Andriana Gatcia (1999), “The Internet Shopper” Journal of Advertising Research, V 39 (3), 52-58 Neil H.Borden (1964), The concept Of the Marketing Mix' : http://www.thetimes100.co.uk/theory/theory--marketing-mix-(price-place-promotion-product)--243.php#ixzz1TvqW3qWH