Healthy Food for Children - Example

Marketing Report: Healthy Food for Children By {Student’s name} Code+ course name Professor’s name University name City, State Date Executive Summary In the recent past, obesity has become a major health concern in Australia. If obesity rates continue to grow in Australia at current rates over the next decades, it is conceivable that the health and economic cost due to obesity will also grow to overwhelming proportions (Woolley 1991). This statement sums up the need for concerted effort in the control of obesity. This study sought to analyse a marketing strategy for healthy, nutritious and tasty food for children in the Australian market. In so doing, it defined three main objectives, namely to be the market leader in healthy, nutritious and tasty food industry across Australia and beyond, to be the pacesetter in quality, health, safety and environment and to maintain a constant supply and profitability in the sector. The company will implement the set objective to set a market niche and positioning for the healthy, nutritious and tasty food in the market. This will be realized through value addition, boosting the value perception through awareness creation, branding, promotions and campaigns. The target market for these products shall be divided into local and international markets. The local markets will be further segmented into and adolescents aged between 2 and 18 years who have a body mass index (BMI) greater than 25 kg/m2 and are at risk of, or have, one or more overweight or obesity-related cases. This includes infants and children under 2 years of age who demonstrate rapid weight gain. The competitors established in this study were also dividend into local and international competitors. The local competitors include the substitutes and local producers while the international competitors include direct importation from outside nations such as Thailand and South America. The study reveals three implementation phases, notably initial, maintenance and growth phases. Each phase shall have set objectives, strategies and budget, and will be implemented within a one year period. The report will conclude by developing a contingency plan to overcome any unforeseeable hurdle in the process. Table of Contents Executive Summary 2 1.4 Value and positioning analysis 6 2.0 Marketing Mix Strategy 7 2.1 Product 7 2.1.1 The core component 8 2.1.2 Supporting services component 9 2.1.3 Packaging components 9 2.2 Place/ Distribution 10 2.3 Promotion 11 2.3.1 Advertising 11 2.3.2 Sales promotion 14 2.3.3 Personal Selling 15 2.4 Pricing 15 3.0 References 16 4.0 Appendices 19 1.0 Introduction 1.1. Background information Diabetes has become a common lifestyle disease in Australia. About three million Australians lived with diabetes by 2013 (Vos & Strydom, 1998). Children are prone to diabetes and other ailments People suffering from diabetes usually face many complications caused by this condition. Kidney failure is one of the most commonly reported complications. Deaths due to kidney failure in Australia’s children are high (Stafford et al., 2009). The Australian Bureau of Statistics opines that such deaths will continue to rise in the future. Patient’s eyesight is negatively affected by diabetes and cases of blindness are reported in a number of hospital facilities in Australia. The main challenge with diabetes is the variations on sugar levels in the blood depending on the diabetes type. The blood sugar levels should be kept at appropriate levels through proper diet habits and regular monitoring. The illiteracy levels in this group of patients in Australia are high. Lack of primary health care focus and health promotion also worsen the worse situation. Dietary habits in Australia are determined by traditional, economic and individual factors. Communities also have their own food habits since time immemorial. That poses great challenges to promotion of diet literacy to the diabetic people. Patients should be taught on how to adapt new and better feeding habits. It is important for patients to realize that it is only through individual responsibility that can eliminate some types of ailments (Hegney et al., 2005). Diabetes being one of the lifestyle conditions, it is important to take some form of personal control in managing the disease. Our company understands that good eating habits help in reducing overweight in diabetic patients. A healthy diet tends to restrict the quantities of carbohydrates. Such an eating plan helps to check against weight increases,, while at the same time, maintaining medium body fatness. Notably, obesity and other related ailments are associated with typical high carbohydrates. Thus, there is no point of avoiding healthy and nutritious food as a way of controlling carbohydrates and consumption of natural fats. 1.2 Mission statement To be the market leader in healthy, nutritious and tasty food industry across Australia through adoption of quality, health and safety practices as well as best farming practices, state of the art technologies and high quality products, taking into consideration economic and environmentally sound practices. 1.3 Objectives 1.3.1 To be the market leader in healthy, nutritious and tasty food industry in Australia; 1.3.2 To be the pacesetter in quality, health, safety and environment in Australian healthy, nutritious and tasty food market; 1.3.3 To maintain a constant supply and profitability of healthy, nutritious and tasty food throughout the year. 1.4 Value and positioning analysis The company aims at adding value to healthy, nutritious and tasty food industry in Australia and across the globe in various ways to create a competitive advantage. This includes boosting the value perception of the consumer through promotions, campaigns and training to create awareness on the healthy, nutritious and tasty food. The packaging and branding will also contribute to value addition, especially to the new markets. Branding ensure easy identification of our company’s products and create a competitive edge over other brands. In addition, branding will appease the impulse buyers and create a competitive advantage to the substitute products. Awareness creation and quality control will be ensured throughout the supply chain in terms of handling, display and storage to ensure that only quality products reach the consumer. The manufacturers will have healthy, nutritious and tasty food at a better rate to woo them into buying more of the products and expanding the clientele base. Other positioning activities will include merchandizing of the product to expand the market. 2.0 Marketing Mix Strategy 2.1 Product Our company shall conduct a series of activities known as product adaptation, or modification, in order to meet the needs of the Australian target market. Due to the dynamic business environment, our company shall conduct a market research investigation, in order to determine the product strategy to follow. A company may decide to sell a similar product, modify the product or develop new products. The company aims at introducing its healthy, nutritious and tasty food products in the Australian market. In order to remain competitive, we will adopt a unique way of competing. The company shall adopt a multidimensional approach, in order to deliver value to the client. In the face of globalization, it is imperative for marketers to note that the clients will react to a certain brand even before it is launched (Francis, 2010). As such, companies should conduct a thorough marketing research, and also predict the emerging trends. We will use the product component model, in identifying the possible modes of entry into the Australian market. The product component model identifies the impacts of such aspects as cultural, geographic, economic and legal factors on the market. The product component model focuses on the core, supporting services and packaging aspects that influences the acceptance of a product in the market. 2.1.1 The core component A research, which was done by Mentzer, (2001) stated that organizations are often faced with external pressures such as a new customer demand. During turbulent times, the core competencies of a firm usually influence the organizational culture. The core competencies such as innovation play a key role in enhancing value and thus, satisfying customer needs. A sustainable competitive advantage allows the maintenance and improvement of an organization’s competitive position in the market. In order to achieve a competitive advantage in the Australian market, we shall add product variations. Major product modifications may be expensive and hence requiring extra capital investment. We can therefore, modify such aspects as healthy, nutritious and tasty food design, color and functional features, in order to capture the attention of local consumers. We will thus, add or delete functional features depending on the Australian market. To become successful, we shall anchor its business strategies on the technology platform. As such, the company will employ the state of the art design to create innovative products and acquire customers. The company will continuously create new products, in order to gain a larger share of the market. Our company’s healthy, nutritious and tasty food products will be driven by the desire to create a modernized and successful organization, which is result oriented. In the face of global competition, our company shall strive to adapt to Australia by streamlining its processes, systems and structures. The company shall therefore, give a high priority to innovative programs. 2.1.2 Supporting services component This component ensures that the organization is performing effectively. Some of the main activities within this component include repair and maintenance, instructions, installation among others. To achieve a competitive advantage, our company will perform the above activities in a way that generates more overall value than do rival firms. The company shall create superior value through differentiation. 2.1.3 Packaging components It is imperative for marketers to understand that customers will view a company’s product negatively, if the design is not appropriate. Consumers judge an organization based on how it how designs its product. Customers are sensitive to a product’s packaging, and thus, our company shall strive to create new packaging ideas. The role of packaging concept is to protect, promote and enhance the products’ quality. Among the strategies that the company shall adopt in order enhance its competitiveness include branding, quality and styling (Keillor, 2011). In the modern business world, branding concept has become an essential for promoting products. Recent research indicates that consumers prefer to purchase commodities from renowned companies. According to Boone & Kurtz (2011), the brand is a label that distinguishes a firm’s product from that of the rivals. A strong brand therefore, has the ability of capturing clients’ attention. Our company shall introduce a strong brand in order to win key competitions. The company will offer unique and innovative healthy, nutritious and tasty food products that connect with clients. A trademark is a word, symbol or logo that our company could use to identify its products in the market. The company will overwhelmingly institutionalize the culture of innovation to create unique healthy, nutritious and tasty food products. Therefore, the new brands will be well differentiated from the already existing ones in the market. This will make it easier for clients distinguish our brands as they stand out from the rest. In addition, the trademark will play a crucial role in protecting our products since no products will be produced under similar trademark. 2.2 Place/ Distribution Our company will use the available distribution channels to market its products throughout Australia. The company can involve renowned distributors such as Healthy Habits Franchising Pty Ltd and Freedom Foods Group Ltd to promote and distribute products throughout Australia. As McKinsey & Co. (2009) asserts, the established distributors have developed a strong client base, including government and corporate organizations. Product distribution should then be supported by long-term promotion strategies. Importantly, our company will need to strive to develop a relationship with the Australian consumers through a marketing campaign. Trade missions and trade shows are good suggestions for this company before engaging healthy and tasty food education programs. Brand building and marketing via distribution channels is also essential. 2.3 Promotion After companies have developed the products, they must inform potential customers about the products, in order to cut a niche in the market. The company will advertise its healthy, nutritious and tasty food products using the following tools; advertising, sales promotion, personal selling among others. 2.3.1 Advertising Recent research reveals that advertising is the most often used tools of promotion. According to Hansen & Christensen (2003), advertising is any paid, form of non- personal presentation and promotion of ideas and products by a well-known sponsor. Marketers use this means, in order to seize consumer’s attention. A promoter has to pay advertising agency experts in the field of advertising. Advertising is a mass communication which is aimed at persuading a large number of potential buyers. This company will achieve numerous benefits by maintaining a strict contact with the clients. The following are the main objectives of advertising; information and persuasive advertising. Information advertising enlightens the market about new products and also, proposes new uses for a product. This form of advertising also, notifies the consumers about price changes and hence, enabling them to make informed purchase decisions. Persuasive advertising, on the other hand, involves creating selective demand for a given product. In the face of global competition, the company may convince consumers to always buy their healthy, nutritious and tasty food products. The company may also conduct advertising with a view of reminding consumers that they require the product in future. Setting an advertising budget for healthy, nutritious and tasty food products Normally, advertising costs vary from one organization to another. For instance, the major pharmaceutical firms across the globe spend around 15 % of their income on advertising, whilst organizations such as GM and Ford spend around 2 %. Healthy, nutritious and tasty food products can be classified as fast moving consumer goods, and thus, the advertising budget for the company will be around 7-10 % of sales (Murthy, 2009). There are many competitors in the healthy, nutritious and tasty food industry, and therefore, the company needs aggressive advertising to build awareness, and persuade enthusiasts to try their products. The company Ltd will adopt the ‘same level as competitors approach’ while setting the advertising budget. The company will thus examine the competitors’ activities before setting an advertising budget. However, this approach has several shortcomings, and the company needs to be careful. For instance, it is not easy to gain correct information on rival firms’ spending. Also, there is no rationale to believe that competitors spent their advertising money wisely. Therefore, the organization shall determine the right advertising budget. As such, the marketing leaders should not set the budget too high, as it will give rise to lavishness, and lesser profits. In addition, they should not set the budget too low because it will be extremely difficult to grasp consumer attention. Media Mix and Message Our company shall consider the following two factors when developing advertising strategy, that is, advertising media and advertising message. With respect to the advertising message, the company must rate the messages on exclusiveness, believability and desirability. The message must state something interesting about the healthy, nutritious and tasty food products. It must state something special that does not apply to every healthy, nutritious and tasty food products. Also, the message must be credible for healthy, nutritious and tasty food consumers to think about it, and react. Advertising media are a channel that conveys the promoters’ message to the intended audience (Murthy, 2009). It is a vehicle through which a marketer passes on his message to potential clients. Our company needs to advertise extensively in order to spur growth. The company may use E-mail marketing in order to reach a wider client base within the shortest time possible. With the advancement in information technology, most marketers across Australia have switched to E-mail communication. Therefore, our company shall own a website that is branded with dark-rich colors, in order to attract prospective customers. The company will also have adequate plans of utilizing the social media advertising tools, that is, Facebook and Twitter. In the era of information technology, internet access in Australia has become less expensive. Marketers are taking this advantage to advertise their products electronically. Recent research indicates that marketers across Australia have overwhelmingly embraced the aspect of social media advertising (Alozie, 2012). Our company shall, therefore, advertise its healthy, nutritious and tasty food products through social media such as twitter and Facebook. Hopkins, Zeller and & Roberts (2012), in their studies, argued that advertising through social media provides a firm with a competitive edge, due to its ability to influence consumers to purchase a product. Advertising using social media persuades the client from the time he is assessing the available brands to the period after procuring the product. Therefore, our company shall embark on social media advertising in order to strengthen advocacy of existing clients, increase the likelihood of acquiring new clients, enhance the brand visibility and also, respond swiftly to clients’ complaints and feedback. Our company will also, make use of Television (TV) when advertising its products. Television commercials normally create an impulse purchase whereby, consumers view the presentation, and then purchase the product instantaneously. TV usually describes, display and frequently demonstrates the brand, as well as, its features. Thus, TV will work well for our company because it offers the greatest possibility for creative advertising. After developing an advertising strategy, the sales and marketing department of our company shall proceed to determine the effectiveness of advertising. The management team can show the advert to the consumer before placing it, in order to get their opinions. This will enable them to know the attitudes of the buyers, and also, determine whether it meets the advertisement objectives. Marketers can determine the advertisement success prior to, during or after the promotion. 2.3.2 Sales promotion Sales promotion is a temporary enticement, which is aimed at encouraging buyers to purchase a product. The company’s sales department must set their sales promotion objectives before settling on a particular sales promotion tool. These objectives include; consumer promotions, trade promotions and sales force. Our company’s promotion objectives are consumer promotion and trade promotions. Thus, the company aims at enhancing short term sales, as well as, increasing its market share in the long-run. In this regard, the company may use the following sales promotion tools; coupons, price of, patronage rewards, cash refunds and samples. In addition, the organization may discounts and allowances to traders who agree to take part in an advert. 2.3.3 Personal Selling Personal selling could be defined as the face to face contact between the marketer and prospective client (Gitman & McDaniel, 2008). Unlike other promotional approaches, this method is concerned with looking for potential purchasers, presenting the product, and obtaining an order from the client. This approach is ideal for our company because it has the ability to command a much larger share of total sales revenue. The company will use salespersons that are already familiar with the market. 2.4 Pricing Previous researchers on healthy, nutritious and tasty food products throughout the globe have stressed the importance of setting up a clear price mechanism. According to OaShaughnessy (1995) conducting constant researches on pricing allows marketers to plan for production level, assess the market profitability, and to understand the market price variables as well as the relationship between price and consumption. A research, which was done by Ferrell & Hartline (2010), indicated that healthy, nutritious and tasty food prices keep on fluctuating throughout the year due to various factors. Our company will determine the price of its products based on such aspects as competitors’ prices and cost of production. Basically, our company will enter the Australian market to be a market leader selling healthy, nutritious and tasty food products at lower prices. Based on this, the company shall consider the cost of production and the target profit. In addition, our company will also conduct a market survey before setting prices. The company shall also consider the competitor’s prices in order to set prices which are attractive (Ferrell & Hartline, 2010). During the initial stages, healthy, nutritious and tasty food products should be sold at relatively low prices, but the quality should remain high. After successful entry, the firm can explore opportunities for increasing the price levels. After a successful entry into the market, promotion campaigns should focus on promoting the quality of the products. Once a brand loyalty is established, our company can then explore the possibilities of increasing price levels and retain a competitive edge. 3.0 References Alozie, E. C. 2012. Advertising in Developing and Emerging Countries: The Economic, Political and Social Context: Farnham: Gower Publishing, Ltd. Boone, L. E. & Kurtz, D. L. 2011. Contemporary Business. Ed. 14. Hoboken: John Wiley & Sons. Ferrell, O & Hartline, M. (2010). Marketing Strategy. Ed: 5. London: Cengage Learning. Francis, C. 2010. International Business: Text and Cases. Ed: 5. New Delhi: PHI Learning Pvt. Ltd. Gitman, L. J. & McDaniel, C. D. 2008. The Future of Business: The Essentials. Ed: 4. London: Cengage Learning. Hegney, D., Plank, A., Watson, J., Raith, L., & McKeon, C. (2005). Patient education and consumer medicine information: A study of provision by Queensland rural and remote area registered nurses. Journal of Clinical Nursing, 14(7), 855-862. Hansen F & Christensen, L.B. 2003. Branding and Advertising. Copenhagen: Copenhagen Business School Press DK. Hopkins, T; Zeller, D & Roberts, R. R. 2012. Selling All-in-One For Dummies: For Dummies. Hoboken: John Wiley & Sons. Keillor, B. D. 2011. Winning in the Global Market: A Practical Guide to International Business Success: A Practical Guide to International Business Success. California: ABC-CLIO. McKinsey & Co. (2009) Preparing for China's Urban Billion. Retrieved 28th March 2013, http://www.mckinsey.com/mgi/publications/china_urban_billion/executive_summary.asp Mentzer, J. T. 2001. Supply Chain Management. Ed: 2.New York: SAGE. Murthy. 2009. Advertising. India: Excel Books India, 2009. OaShaughnessy, J. 1995. Competitive Marketing: A Strategic Approach. Ed: 3. London: Routledge. Stafford, J., Mitchell, H., Stoneham, M., & Daube, M. (2009). Advocacy in action: A toolkit for public health professionals. (2nd Ed.). Perth: Public Health Advocacy Institute of Western Australia. Available at http://www.phaa.net.au/documents/100114PHAIAdvocacy Toolkit% 202ndedition.pdf Vos, A. S., & Strydom, H. (1998). Research at grass roots: a primer for the caring professions. Pretoria: J.L. van Schaik. Wooley, SC. & Garner, D 1991, Obesity treatment: the high cost of false hope. J Am Diet Assoc. 91(10): 1248-1251. 4.0 Appendices Appendix One: Contingency plan Phase Objectives Strategy Phase 1 (year 1) - To enter into the Australian healthy, nutritious and tasty food market. - to create a position and a niche in the market - Product branding, selection of name, slogan and logo that will be used throughout the marketing process. - Launching of healthy, nutritious and tasty food marketing campaign and promotion in different locations. -Setting a market position -Selection of the right communication channels and procedures with regards to reorder levels and quantities as well as whole sale and retail pricing will be identified in this stage. - Establish the best practices, quality, health, safety and environmental consideration in the production and manufacturing processes. Phase 2 (Year 2) - To be the market leader in the Australia market - Brand promotion to the target market - strengthen consumer awareness of the product and its superiority over the other brands. - strengthen the collaboration across the chain supply to enhance efficiency in terms of reducing the barriers, time management, quality and value addition, as well as price stability across the year. Phase 3 (Year 3) To maintain a constant supply and profitability of healthy, nutritious and tasty food throughout the year. - building stronger collaboration and communication across the supply chain. -constant promotion and campaigns across the market, rebranding and other strategies to ensure that the product remains at the top in the market. - boosting the sales, production and profitability in line with the company’s goals. Read More