The Key Features of a Marketing Plan - Research Paper Example

Marketing Plan Topic: Marketing Plan Product: Fruit Juice Purpose of the Article: How a company can penetrate in the market with its product and services. Our Marketing Plan includes four Ps. 1. Product Describes all the features of our product i.e. fruit juice, how they are unique from other products in the market and their various attributes etc. Here, it is vital to discuss the current and the future product line but also to emphasis basically upon the short to intermediate term horizon. 2. Promotion It describes all the activities and services to encourage customers to buy the product. Promotional activities include: (a) Advertising (b) Public relations (c) Free samples (d) Discounts (e) Telemarketing (f) Partnerships etc The promotion section highlights which promotion strategy is to be used and how they will be used in order to gain a position in the market and increase sales. 3. Price Describes what will be the price point of company’s product. Also provides rationale for pricing. 4. Place This section describes the place or the distribution point. How the product will be delivered. What places, which stores, which cities etc. This section is often considered very crucial because product availability is the chief ingredient for our product to be successful in the market. If the product is unreachable, the customers would not be able to purchase it, which would result in losing our valuable customers. It is very essential for high growth and to get a margin. Places can be websites, big stores, retail locations etc. Besides all above factors, a Customer Retention Plan is necessary. A marketing plan discusses these in details. These include Customer Relationship Management tool, building network externalities, on-going value added services etc. Situation analysis, marketing strategy, sales forecast and expense budget are the key features of a marketing plan. 1. Product The product chosen for marketing here is Fruit Juice. Following are the main product portfolio:- i. Guava Drink ii. Mango Drink iii. Orange Drink iv. Juice Blend For addition in the Product range we want an entire product line. It depends on the financial condition of Capital. Product range can be diversified if enough capital is available. 2- Prices: Price is a very important factor in the Marketing mix. If the price is too high then less people will be able to afford that product. A comparison is made with the prices of competitors’. Once a comparison is made, then comes the stage of setting the final price for our product. Pricing is generally standard all around the globe. Price increment usually comes in view after a long period. However, we’ve have observed an increase in price when inflation is playing its role in a great deal in a country. 3- Place (Distribution Channel): To achieve the desired target for sales of our product, distribution coverage and practice is of chief significance. Understanding of the distribution channels is crucial in order for the manufacturer to plan and implement an effective distribution strategy. It is important to understand that multiple distribution channels are involved in the process of distributing fruit products and juices, which are producers, importers, wholesalers, retailers and users. Individual customers tend to buy the product from the retail market, however, organizational buyers usually contact the producers/importers and wholesalers directly to place an order for the quantity they require. 4- Promotion: It is a common practice of juices businesses to maintain the advertising budget to 3% of the total revenue. However, it can vary when talking about small or medium scale unit. Billboards, Television, Radio (FM Channels), & Newspapers The elements of promotion mix can be: a) Personal selling b) Public Relation c) Advertising d) Direct Mail e) Sponsorship f) Trade fairs and exhibitions g) Sales promotion SITUATIONAL ANALYSIS (A) SWOT ANALYSIS STRENGTHS: Our quality of product should be excellent; this will soon make us the market’s leader. We will give better quality of product at same market price to gain the advantage of positive competition. By using modern techniques, we can give high quality product at lower costs and enjoy normal profits. Our success depends upon the availability of skilled labor having an acquaintance with the production line. Another important aspect is the quality checks at different stages of manufacturing of Fruit Juice. To establish a brand name, aggressive marketing efforts are required at distributors & franchiser side. The organization must have sufficient financial resources available for the appropriate project cost. The organization has unique and modern technologies. The management of this organization has well qualified, trained and experienced and they have good record of accomplishment. WEAKNESSES: We should not miss any key skill. Our distributions channel should be adequate. We should appoint most highly qualified people for maintaining the best qualities regularly. Lack of awareness of standards for processing of foods. Lack of infrastructure and limited budget for advertising and publicity. Most of the consumer continues to show a preference for fresh foods. High cost of processed food because of high input, processing and packaging costs. Low income coupled with erosion in purchasing power. OPPORTUNITIES: Healthy organic and natural drinks are being supported in global and local cultures. Few companies are locally producing real fruit juice. High export potential. With the help of good pre-harvest forecast, total production could be turned into potential business opportunity without difficulty. Reduction in excise and import duties on goods processing machinery. Growing rate of 20 to 25% modernization of these sorts of industries. Generally people prefer to use natural drinks rather than carbonated soft drink. THREATS: Lack of availability of enough industry statistics. Single Product Company. High processing and packaging costs. High cost of backward integration (accessibility of raw material). Risk factor from other fruit juice exporting countries. The Price sensitivity and less consciousness about quality among potential buyers. Extensive availability of sub-standard substitutes. Massive advertisement from existing giant players of the commodity. High cost to meet international quality standards. Market Growth Company has identified its growth through the ANSOFF approach We can penetrate in the market through the business buyers like different food chains, restaurants and few of them are huge multinational organizations who have offered their products at the international and local level. The marketing development is looking for new markets for their juices. Consumer Behavior:- In a research it was observed that people all around the world are moving from carbonated soft drinks to natural juices which include fruit juices or instant solutions in fruit juices. This new insight is gaining attention day by day which is very beneficial for the industries manufacturing natural juices. Ready to consume drinks are gaining massive popularity among the young generation and many common people. Whereas, many hotels and hospitals are also increasing day by day and marketing our range of fruit juices here could prove to be a successful perception. Customers’ inclination towards fresh fruits and juices can highlight the likelihood of enlargement in this sector. Also, the second order is the most important order from customer. To get new customer, cost increases five times as compared with existing customer. SEGMENTATION:- Demographic Segmentation:- Industry:- The Fruit Juices industry in this country is in growth with 20-25%. This also highlights that many new companies are setting up in our country because of which the industry is growing bigger day by day. Company:- We want the most valuable distributors & franchisee to make maximum profit and market share for the company. Location :- When deciding upon the location for a fruit juice processing unit, major point to be kept in consideration is the continuous availability of raw material. However, aspects like availability of work force/labor, utilities and easy market access are also important and should be assessed thoroughly. Urban and rural segments both are important for this product. We believe that we can achieve our target sales for the coming year. Targeting is the 2nd step of Segmentation and position Single segment with single product (e.g. elite class or specifically high class people). One product for all segments – Whole Market (e.g. all class of people). A variety of different segments with a series of differentiated products. (different packing, prices and quality of juices for different class of people living in society like sports drinks or juice for sports man etc). CUSTOMER RELATION MANAGEMENT (CRM) TOOL Customer needs and wants are different; emphasis on needs while selling. Customers complaints to be addressed and handled satisfactorily to continue business with these customers. A phone track is very necessary while dealing with unsatisfied customers. Customers are more likely to discuss their bad experiences rather than good one. Marketing Strategy includes a mission statement, objectives, and focused product positioning. This includes the business strategy to increase the volume of sales, increase the long-term cash flow and economic value added to increase economic profit. In marketing strategy, we drive efficiency and cost effectiveness everywhere. While Positioning, we see the product, juice packing or bottle sizes. Sales Forecast includes detail to follow sales month by month and budget plan-vs.-actual analysis. Usually, a plan will also include specific sales by product, by region or market segment, by channels, by manager responsibilities, and other elements. The sales forecast alone is not enough. Expense Budget: This should encompass detailed data to trace expenses month by month and compare the plan and actual analysis. Marketing Plans consist of sales strategy, programs, management responsibilities, promotion, etc. The expense budget is a bare minimum. Include a Specific Action Plan It is often quoted that planning is about the outcomes, not the plan itself. A marketing plan is of some worth only when the results are good as per management expectations. A plan can only be successful when it is implemented. All the brilliant ideas and substantial market researches are of no worth if the plan is not executed properly. SMART OBJECTIVES Specific – The Short-term objectives of the company is to achieve the target sales of juice. Measurable - Quantify the objectives Achievable – If the objectives are achievable? Are we going to capture the market share of consumers? Realistic – Does our company have enough resources to make the objective happen (men, money, machines, materials, and minutes)? Timed - State when you will achieve the objective (within a month? or By such and such date) SMART Objectives: We need to outline specifically the following in order to meet the company targets. a) Profitability Objectives ( 20% return on capital on return ) b) Market Share objectives ( 25% of the market share ) c) Promotional objectives (to increase the sale of our product) d) Objectives for growth (increase the size of the operation) e) Objectives for survival (to survive in this recession ) f) Objectives for branding AIMS a. PEOPLE b. PARTNERS c. PORTFOLIO d. PROFIT e. PLANET COMPETITION The company has few competitors in the markets with their products sold and purchase by their name merely. They have to do something different e.g. distribute coolers or fridges as prizes in a scheme with the juices or any big incentive for a specific target sale by the retailer or distributors. The company must have to introduce a line of different juices at different size and in different packing in order to induce the customer. We can take an example of Mcdonald. The reason of Mc Donald’s success is the kids and for them they have made a play area in each of their outlets. Marketing Control Measuring and monitoring controls comes with each other. There is no planning to succeed in the juice market without a good control and its measures. Marketing control is one process in which proposed plans are supervised as they progress. They are also altered where it is necessary. When an objective is put forward for a proposed plan, it aims towards a path for your desired destination and control keeps a check if you are on the right route or you have accomplished your goal. Control includes measurement, evaluation, and monitoring. Often resources are scarce and expensive. Hence, it is very important to control marketing plans in order to keep a check. We need to set standards. It is the responsibility of a marketing manager to compare actual progress graph against the standards. An investigation will take place if there is any corrective action or difference in the figures or prospect sales. A Marketing control cycle: A Marketing Control Process Performance Standards Compare results against standards Correction and alteration There are many ways to control i) Budgets ii) Quality controls iii) Distributor support iv) Cash flow statements v) Feedback from customers vi) Customer Relationship Management System vii) Ration Analysis viii) Market share analysis ix) Sales Analysis x) Etc We cannot ignore the PEST Analysis while making a marketing plan of our product i.e. Fruit Juice. This includes the internal environment (Five Ms, which are MEN, MONEY, MACHINERY, MATERIALS & MARKETS; e.g., Staff, wages, finance etc) and external environment at micro level (customers, suppliers, technology, competitors etc) and at macro level (political and legal forces, economical forces, socio cultural forces and technological forces). SWOT Analysis, Michael Porters Five Forces Analysis or PEST Analysis can be used in order to audit the external environment. We understand that the Political Factors influence the regulation of business. In order to market the product outside the region, we observe that the political stability is very necessary along with government policy on the economy. This includes tax policy that regulates the business. If the government has the trade agreements with different bodies like NAFTA, ASEAN, EU, and WTO etc is a positive sign. In the later stage when marketing our product Fruit Juice in the international market, we see the economical factors of that country or even city, if it is locally supplied. We need to look at the interest rate, the GDP per capita and the employment rate. This determines what the price of the juice should be. When we analyze the socio cultural factors, we must look at the different variety of juices (guava, orange, apple etc) may be liked by different cultural people and at different ages and their attitudes towards the foreign products. Many companies are only surviving because of their technological edge and it is of vital importance. With the use of technology, we can produce the products more cheaply and with a better standard of quality. Use of e-commerce shopping and new generation mobile can boost our sales of juices. We can use technology in booking via internet, flight tickets, etc. and while using customer relationship management tool (CRM) when interacting with our valuable customer. Key to Success: The following key points are major factors of success. To achieve success, one must have a clear image in his mind in order to establish clear image in the minds of customers. Focus should be maintained on the product itself. For positioning success: Define, over deliver, claim, and success. Define the criteria for each product offered MISSION "Our Mission Statement to increase the market share and get a win-win situation" In order to achieve the mission, we must give attention to every constraint we serve, including our consumers, customers, our juice packing department and our communities. Success is based on the mission and vision statement. FINANCIAL OBJECTIVES "To increase sales volume and gain market leadership" SALES FORECAST TABLE SALES AND INCOME 2008 2009 2010 2011 NET SALES NET INCOME UNITS SOLD Breakeven = Total fixed cost_ (1- Total Variable cost) Total Sales References: Kerin, Roger A, Steven W. Hartley, and William Rudelius.Marketing. Boston: McGraw-Hill/Irwin, 2009. Print. Hiebing, Roman G, and Scott W. Cooper. The Successful Marketing Plan: A Disciplined and Comprehensive Approach. New York: McGraw-Hill, 2003. Print. Luther, William M. The Marketing Plan: How to Prepare and Implement It. New York: AMACOM, 2011. Print. Read More