Marketing Planning for Gu Fru - Essay Example

? Marketing Plan: Gu Fru & Section Number of Introduction: 3 Mission: 3 Segmentation, Targeting, locations, population and Trends: 3 UK Pot Dissert Market: 5 Marketing Mix (4Ps) 6 Positioning of the GU Company: 7 Marketing Analysis: 7 Competitive Analysis: 8 Three Year Strategy: 8 Financial Position: 9 Evaluation/Recommendations: 9 References 11 Introduction: GU is a UK based dissert brand owned by Noble Foods, which offers high end disserts, cake, mousses and chocolate related products in UK and some other countries. Recently company re-launches its brand with the name of Gu Puds which included previously known brands like GU Chocolate Puds and Fru Fruity Puds. Company is renowned for its packaging and high end fancy disserts. Company is built reputation in producing high quality premium products and very famous brand in UK. They offer variety of flavors such as, lime, raspberry, chocolate, mango and passion fruit (JustFood, 2011). Mission: Company mission is to create quality and tasteful mousses, souffles, chocs, cheesecakes, melting middles, tortes, brownie cakes, nibbles and naughties and to create a whole new world of chocolate extremism that’s strictly for adults; which will give them decadently delightful delicacies (GuPuds, 2011). Segmentation, Targeting, locations, population and Trends: GU changed its brand image and re-launches its brand in the market with stronger brands and packaging. The addition of the chocolate line makes this company stronger in the market who are dealing in same packaged products (Gatten, 2011). This market is divided into several sub segments, such as: Chilled Disserts Formage Frais Yogurts GU is offering products in the chilled disserts segment. The UK market for pot disserts and Yogurt is look like: Figure 1: Market Share of Chilled Food in UK 2009 (The Free Library, 2011) The pot dissert market in UK is almost worth around ?1.9 billion, which also includes yougurt. This market almost grown 9.8% due to chilled disserts and yogurt which together makes 88% of the market. Chilled dissert is second largest segment of the industry and worth almost over ?0.5 billion and growing with rapid pace of over 4% in UK (The Free Library, 2011). Main market for Gu in this segments are young adults and in Britain 660,900 tonnes of chocolate a year were eaten and almost 11kg per person per year is the rate. The target market for this segment is young kids, young adults and elderly people as well. This segments most likely target market is kids and youngsters. UK Pot Dissert Market: This is the main market for GU and this market is grown significantly in last couple of years in UK. The main factors of this growth is people living alone are increased significantly and demand for single and smaller disserts increased significantly in result which will be a good trend for products like Gu. The chilled dissert market is almost worth around ?618.3 million in year 2010 which is up from ?597.2 million in year 2009. The market is grown significantly The market demand for products, like; chilled and pot disserts, puddings, mousses and cheese cakes are on the rise in UK and all these products are offered by GU. The quarter of the adults eat disserts as a part of their main meal. Disserts are mainly served in house hold to children, two-third working mothers buy these pot disserts for their kids (Bainbridge, 2006). The target market for chilled pot disserts is mainly adults. The main age of the target consumer is in between 15 and 25. Where people with age over 65 also a main target for such products. People with age between 45 and 54 are the least likely buyer of such products (Bainbridge, 2006). Marketing Mix (4Ps) Product/Service Strategy: The products are innovative and very unique, people love to try their products and enjoy it. The only problem with their products is that people on the diet should be care full before eating their products. Although, the share of the company is not high but the company is gaining momentum in the market and soon their share will also increase. Pricing Strategy: The pricing strategy of the company is premium pricing, they are offering high quality novelty style products and against these products they are charging premium pricing and people love to eat their products in high prices. Place Strategy Their products are available in all retail stores and super markets of UK such as Waitrose, Sainsbury's, Morrisons, Tesco, etc. They are following traditional chain to distribute their product and selling through retailer to consumer. Promotion Strategy: Comapny is doing very aggressive marketing through above the line channels such as T.V, Radio and print channels. Company is also pushing its products and giving very high margins to retailers and wholesalers too. Positioning of the GU Company: The company positioned itself as a fancy, high end, high quality brand, which is offering unique, differentiated and taste full products in the market. Company main objective is to be perceived as a high quality distinctive product and set a image as very unique and different product as compare to available average products. Marketing Analysis: PESTEL: The political situation of UK is very stable and it’s one the biggest consumer market in Europe and considered hub of business throughout EU countries. The target market is comprises of all sorts of races and its also multicultural region where people from all races present in clusters and in large numbers. There are no such legal issues except some advertising and food legalities. Environment is much favourable for business since no tariffs on food. SWOT: Strength: Company posses very strong products and very much recognized as a quality and premium products provider. Strong brand image is a biggest strength of the company. Weakness: Company re-launches its products under one brand and previously failed to gain maximum share of the market. The expenses of the company are on higher side. Opportunity: Market is developed for their products since singles are living more than ever rate in UK and demand for disserts is increased. Threat: One of the biggest threat for company is competition and flooding products of other companies and these competitors are giant companies such as Muller, Nestle, etc. Competitive Analysis: While many companies in the market whose share is much higher as compare to GU are present in the market and successful but they are in the market with different product differentiation strategy as compare to GU. Many companies are focusing on either best cost provider working on economy of scale and some of them are providing multiple products. But the strategy adapted by Gu is product differentiation strategy and the theme of this differentiation is top of the line image. This top of the line image by the Gu is adapted through its, differentiated products in terms of unique and very different flavours, very fancy and unique style of packaging and entirely new concept of presenting the disserts products in fancy pots and packages, and last but not the least is their superior quality and taste of their products. On these attributes Gu is differentiating its products with its competitors in the market and showing the theme of Top of The Line products. Three Year Strategy: In long run our main strategy will be differentiated products and very unique and fancy packaging which will distinct us in the market. In modern world, packaging is the firs step towards branding, the good package design is considered as a vital part of successful business practice. Our strategy for packaging will also be same, we will create effective packaging for our customers which will help in purchase decision making step and provide the information our customers need and motivate them to make a purchase. We will use the packaging of our product which will attract customer by drawing attentions on these areas: Quality: Our strategy is developing such packaging which gives clear picture that our brand possesses quality. Freshness: Color combinations and schemes will show that we supply fresh food and best quality food. Attractive Packaging: Packaging design will also be very attractive and show consumers we give best packaging, safe for health and environment. Financial Position: Company made some significant progresses in last few months after the re-launches its all products under one strong brand name and attractive packaging the company sales and profitability improves significantly and the company position in the market is improved. Although their share in market is still well behind its customers but they made some extra ordinary progress in last few months. Evaluation/Recommendations: The Gu Company is producer of top of the line pot disserts, mousses, chocolates and bar cakes company in UK. It’s targeting young adults and people living alone in the UK. Its main strategy to compete in the market is differentiation strategy for its products and built image of top of the line products through superior quality, unique taste and highly fancy and very attractive and expensive packaging for its products. In future company can enter into new product lines, such as; quality, exotic, savory gourmet popcorn; it can be the many flavorful and exotic types of popcorn which primarily target adults. References JustFood. UK: Gu to consolidate Gu and Fru brands, Retrieved May 27, 2011, from: http://www.just-food.com/news/gu-to-consolidate-gu-and-fru-brands_id115232.aspx Gatten, T. Gu Review on theculinaryguide.co.uk, Retrieved May 27, 2011, from: http://dusktodusk.co.uk/2010/08/16/gu-review-on-theculinaryguide-co-uk/ The Free Library. Yoghurts in health kick: impressive growth in yoghurts and pot desserts is being spearheaded by functional brands and their popularity among health-conscious consumers. Retrieved May 27, 2011, from: http://www.thefreelibrary.com/Yoghurts+in+health+kick%3A+impressive+growth+in+yoghurts+and+pot...-a0199461306 DivineChocolate. Chocolate facts, Retrieved May 27, 2011, from: http://www.divinechocolate.com/about/resources/facts/chocolate_industry_today.aspx Bainbridge, J. Sector Insight: Chilled pot desserts - Banking on a growing niche, Retrieved May 27, 2011, from: http://www.marketingmagazine.co.uk/news/598043/Sector-Insight-Chilled-pot-desserts---Banking-growing-niche Business Insights. Chocolate Confectionery Industry Insights, Retrieved May 27, 2011, from: http://www.globalbusinessinsights.com/rbi/content/rbcg0125m.pdf ChilledFood. Chilled / Prepared Foods 2007-10, Retrieved May 27, 2011, from: http://www.chilledfood.org/Resources/Chilled%20Food%20Association/Public%20Resources/TNS%20Kantar%20Chilled%20Prepared%20market%202007-end%202010%20uploaded%2014%203%2011.pdf Read More