Marketing Plan For New Product Launch Candy Flakes - Assignment Example

MARKETING PLAN FOR NEW PRODUCT LAUNCH ‘CANDY FLAKES’ Introduction The assignment would focus upon the development of the strategic marketing plan fora new product launch called ‘Candy Flakes’ which is an assortment of different fruity flavored candies in one pouch, operating out of Best Town, Illinois. The candy balls would contain gelatin and sugar with added flavors and color weighing 8 grams each, packed in a water resistant pouch at a price that’s very competitive and is likely to be loved by people of all ages. The promotion and marketing budget would encompass 10% of the total Business Revenue earned so that the product volume and quality along with the retail price may be kept competitive in an already oligopolistic market. The target segment is from all age groups but it would especially target the children as the primary consumer over adults for health concerns that would make them less prone to taste the product. PESTLE Analysis for ‘Candy Flakes’ feasibility The business is dependent upon the factors like PESTEL as briefed below those have impact on the strategy formulation for the marketing launch plans. Hassanien et al. (2010) opined, the market’s behavior is dependent upon factors those the business takes into consideration prior to formulation of the launch strategies. The business targets to cater the UK market starting from the town of Best Town, where the dynamics that the researcher finds from different sources are as follows: Political: The political issues of the market that the business operates in have a direct effect upon the way the business grows (Miles, 2011). The political will of the US Legislation or political forces supports the way the small businesses grows or support in every possible ways for development of small business with possible financial, Infrastructural supports and also provides the guidelines for an ethical business practices. The recent 2013 survey of IBIS world suggested 1.3% of the industrial growth but no such increment in the 21st Century commodity prices. Economical: The economic scale of a market determines the purchase capability of the consumers in those markets (Sachdev, 2004). Nevertheless, the economy of the market also determines the pricing of the product, profit and pricing strategies for the business where the equitable purchase power determines the pricing in those markets. Since the target audience is children therefore the cost would be determined in a way that suites the children’s spending limits (GNOINC, 2014). However, the hike in US wide commodity prices would leave the profits low for next 5 years but the scope to increase the market share would be greatly strategized for. Social: The society as a whole have a vast effect upon the business where the business houses choose a product mix that are taken well by the society as a whole. The acceptance of Flavored candy for children should have a hygiene, packaging and composition those have no mal effects upon the users, therefore making the social acceptance a huge factor in the business market planning. However, the recent US wide trends in the decrease of the children’s age of lesser than 14 years of age has made the business consider a wider choice of audience. Technological: The changing dynamics of modern-day businesses are more dependent upon the technological inputs those are changing the way production distribution. Timmons et al. (2004) observed that the businesses those which do not evolve with time in technological additions would become eventually less productive and obsolete. Therefore the Candy Flakes would use the latest technology that gives the product the consistency in quality and have a volume optimizing capability. IBIS World survey expects the industry to put 23% of every dollar they earn in Quality output for next 5 years therefore the technology along with employee skills would be focused. Legal: The legal parameter in a business is not only a set of guidelines for production practices but also determines the punishment and identifies the authorities responsible for such legal processes implementations. The legal processes in the business of Candy Flake is a factor that would make the production distributions and such facets under a set rule that determines the food and its components those are laboratory tested to be permitted for addition in products edible by people. Nevertheless, the decrease in the candy industry revenue is supposed to drop by 10.7% in next few years therefore the lowering in the labor intensive industry also needs to accommodate its production likewise (Ibisworld.com, 2014). Ethical: The ethics of business gives the market and consumers and idea of the kind of business practice that the organization follows. For long term sustainability the confidence of the people who the business serves needs to perceive ethical culture that makes the business more trusted by the people and the social responsibility that the business dose shows their strength in social development aspects. However, the ethical issues due to decrease in cost of wages and higher technical inputs would have some ethical dilemma in payment of wages and decrease of it as the industry trends suggests thus the 5years plan of the business would have more of technology for lesser manpower intensively used in future days to have optimum outcome. The Primary and Secondary Markets: The 4Ps, STP and 5C’s aspects Sherman (2009) identified Primary market as the new segment that the business targets to be its prime focus in terms of consumer attractions that would be new to the product and its offerings. However, Samuelson (2009) suggested that the secondary market is the market that already has a taste of the similar product where the product of Candy Flake shall come in as another addition to the long list of similar candy producers. Thus for the Candy Flake the primary market shall be the school children’s who would be the primary target for the brand for product sales and secondary market in such a case would encompass the retailers and distributors who have the prior experience of similar product sales and distribution. McCarthy in 1960s developed the 4P model for Product marketing mix. Product, promotion, pricing and place or markets are to be considered in determination of the market segments. The product and its ability to capture the market for all the people of the targeted segment in them would be considered the prime one for the 4P mix in product. Here the product has both the soft and hard candy for sales. In this context Rego (2010) described that the price that is affordable for children and for the age group of all segment. Promotion that conveys the product message to the target audience, product and its uses or values that would make it more attractive over other similar offerings are all to be communicated along with the place or availability of the product information needs a suitable transmission for consumer’s purchase decision processes. The promotional attributes of the business needs to have an outlook to encompass a bigger larger market that also have e-commerce links for direct delivery. Therefore the promotional campaigns needs a development like wise to attract all consumers in the segment. The Place has its own way to be generated for the product where the International market for e-commerce would come in action to play a distribution and market role in the US and International Market encompassing the North American Continent to a global platform in next 5 years. Nevertheless, Lapez et al. (2012) argues that the 5C’s of the business, especially in a new venture where the product values are yet to be determined by the market, the business needs to focus upon the components like the Company, Competitors, Consumers, Collaborators and Climate in deciding the strategic formulation of marketing. The market analysis of the 5Cs gives the business about the ability, capacities of the business, along with the target consumer’s identification for promotional material developments. It Includes suppliers and distributors which can be used by the business with best of its ability along with business climate and competitors strategies to build a marketing plan those suites the efforts of the new launch. In Consumer’s part the awareness is first where the consumer builds the product awareness through that product promotion, market advertisement, and word of mouth of people who had the product already experienced. The Alternatives that the product has those ‘Candy Flakes’ would encounter as competitor would be considered in terms of usage benefits, price, place and ease of availability prior to deciding the final product to be purchased. The Competitor’s offerings are to be surpassed by ‘Candy Flakes’ with effective marketing reach, price and use benefits those fits the palate of the consumers for repurchases in future. Consumers would be lesser than 14 years of age primarily however the brand would also target oversees market with an effective strategic collaboration of e-commerce and international dealers and supply Chain management companies to reach those markets. However, the market climate changes would affect the way the business has strategized its 5 year long plan where the dependence upon technology shall be put to encounter the 10.7% decrease of the Manpower cost in next 5 years with lesser growth in domestic markets. The STP or the Segmentation, Targeting and Positioning of the Candy flakes are to be done in a way that chooses segment of the children of age 14 or below along with an international audience. Again the target audience segment makes the business focus upon the segment that it wish to serve or considers as its bulk buyer business may promote and build the advertising content likewise that highlights the activity and media along with audience selection to keep the cost of promotion under a limited promotional cost to achieve best results out of it (SBA, 2013). Therefore the Positioning is likewise strategically made to make the segment and targets achieved in the process both in domestic market and internationally over 5 years. The Short and Long Term Goals Along with it the business would focus upon market research and quality feedback testing and consumer’s likings to give the product modifications that it deserves when required (Weinstein, 2008). The Fifth year in long term objective settings aims in building the business with the UK national presence where the production units are more to accommodate the volume, develop the manpower to have the quality and quantity maintained in accordance to the market plans. The Social media is a cheap source of promotion and here the business would concentrate more to track the feedback and following of the Candy Flake in terms of the likings of the users as the first year short term plan. The promotions of Corporate Social Responsibilities would transmit the values of the business to the audience that it targets at a cost that is lowest compared to traditional media (Williams, 2007). The brand seeks the active engagement of the consumers in the social development activities where the brand adds value to the user’s perception for an edge over the other similar products and brands in the UK market. SWOT and Need Analysis for Candy Flakes SWOT or the Strength, weakness, opportunity and Threat elements of the business those the business takes in consideration to assess the Internal and external factors to plan the business is analyzed with it. Arif (2010) describes Need analysis as the requirements of the market or the user centric design of the product that suites and is taken well by the consumers those perceives the product desirable for use. Strength: The Candy Flakes strength is in its assortment of flavors, competent pricing, that is not a very common packaging product mix in the US market that can be seen as the products strength. Weaknesses: The candy producers in the US market are in plenty. Again the audience having health concerns would avoid using them due to high sugar contents and along with its limitations of distribution in and around Best Town. Opportunity: The Candy Flakes assortment of different flavors of candies gives it an opportunity to explore a larger variety of consumers with different tastes making it a product of choice for many. Threats: The threats that the business may see can come from different sources like the financial constrains, saturation of market with other competing candy brands and lack of logistic support in the first phase or the first year may occur as the outsourced logistic costs may see changes in terms of cost involved. Therefore the Candy flakes success in both long and short term business planning is being analyzed herein to determine the kind of challenges that the business may encounter and thus the factors that they may consider to maximize the opportunities and strengths to counter weaknesses and threats those may come in the way of the business. Conclusions The new business ventures encompass multiple factors prior to strategizing the plans those would carry the business forward. The PESTEL and SWOT gives the business managers the objectives to develop the strategies likewise in consideration of the external and internal factors those have direct link with the business and its performances. The Candy Flake is the product that has an unique appeal due to its assortment of various candied and flavors which needs a carefully calculated launch and promotion strategy along with long and short term scopes assessment that the venture may utilize and develop upon. References Arif, M. (2010). Consumer Needs vs. Marketing Segmentation. SSRN Journal, 12(3), 15-19. Han, J. (2009). Object segmentation from consumer videos: a unified framework based on visual attention. IEEE Transactions on Consumer Electronics, 55(3), 1597-1605. Hassanien, A., Dale, C., & Clarke, A. (2010). Hospitality business development. 3rd ed. Amsterdam: Butterworth-Heinemann/Elsevier. Lapez, F., Castedo, L., & Mascarea, J. (2012). A Sulfinyl-Directed Asymmetric [5C + 2C], Journals of International Marketing, 12(2), 15-19 Miles, G. (2011). A Stone Pestle and Mortar from the Upper Ramu River. Man, 3(5), 185-198 Rego, G. (2010). Hospital Foundation: A SWOT Analysis. Ibusiness, 21(3), 210-217. Sachdev, D. (2004). Business strategies for satellite systems. (4th ed.) Boston: Artech House. Samuelson, D. (2009). The Order in Beaumonts Knight of the Burning Pestle. English Literary Renaissance, 9(2), 302-318. Sherman, A. (2009). Franchising & licensing. (3rd ed.) New York: AMACOM. Timmons, J., Spinelli, S. & Zacharakis, A. (2004). Business plans that work. (2nd ed.) New York: McGraw-Hill. Weinstein, A. (2008). Consumer Behavior, Research, and Segmentation. Journal Of Segmentation in Marketing, 2(2), 1-5. Williams, M. (2007). A Carved Pestle and Pipe-Stem from British Columbia. Management Journals, 37(1) 169-170. SBA. (2013). Small Business Development Centers. Retrieved from https://www.sba.gov/offices/headquarters/osbdc/resources/11409 GNOINC. (2014). Regional Economic Development. Retrieved from http://gnoinc.org/initiatives/business-development/ Ibisworld.com (2014). Candy Production in the US Market Research | IBISWorld. Retrieved 20 January 2015, from http://www.ibisworld.com/industry/default.aspx?indid=234 Read More