Marketing of a Company that Produces Health Organic Food Products - Assignment Example

? Marketing Report for a Company that Produces Health Organic Food Products of of Submission Marketing Objectives The Quality Organic Food Production Company (QOFPC) which produces healthier and organic foods aims at increasing its sales. The marketing department has formulated new marketing objectives which are going to be employed in order to achieve this. These marketing objectives will focus on improving the sales of the company by studying the customer needs and wants (Kotler et al, 2009, p. 200). To start with, is to develop a fresh product line which will aim at improving sales by at least 20%. Secondly, a “new and enhanced” commodity line to the already on hand customer base will be launched through conveying improvements and revisions. Furthermore, we intend to raise product awareness by at least 40% before the end of this year among the intended audience. Finally, carry out an extensive study on the different segments of the market and formulate new ways of satisfying each segment’s needs (Nash, 2000, p. 68). Market Segments Understanding market segmentation is very important since it will enable QOFPC to concentrate on satisfying the specific needs of its customers (Kotler et al, 2009, p. 200). Though mass marketing has its own advantages, it has also been criticized and companies are currently being advised to concentrate of micro-marketing where production is driven by market segments. There are different segments of the market that needs to be studies in order to know how to engage effectively on the production process. For instance, by QOFPC studying the behavior of its potential customers, it will be in a position to determine how to play between quality and low price in its search to satisfy all its customer categories (Schmid, 2007, p.102). First and foremost QOFPC needs to understand the demographic component of the market. This component takes into consideration things such as age, the size of the families of potential customers, gender, income, occupation, religion, social class, race and education. These demographic units are closely linked with consumer needs and preferences (Schmid, 2007, p.103). For example consumer needs change widely with age; a child may prefer very sweet food products as compared to an old person. Studying the geographic segment (focuses on regions, cities and rural and urban areas) is equally important since it will allow the company to identify the buying capability of its market. People in rural areas are mostly ignorant and have low incomes, hence, require different marketing strategies from those in urban areas (Nash, 2000, p. 70). By understanding these variations, the company will be able to estimate its market size and choose an appropriate media of reaching its market effectively. According to Kotler et al (2009, p. 205), the psychographic segment focuses on people’s lifestyles, socio-economic status, values/beliefs and personalities. Under this segment, psychology is applied to the demographic factors in order to have a clear understanding of the potential customers. People of the same age may have different beliefs that are likely to affect their tastes and preferences. The final market segment that needs understanding is the behavioral segment that focuses on: occasions, benefits, usage rate, attitude, readiness stage, user status and loyalty status. QOFPC needs to study the possibility of occurrence of occasions such as festivals that will boost its sales in order to target them effectively (Nash, 2000, p. 70). Moreover, since this company produces health organic foods, it will be of great importance to study individuals who exactly buy the products and their buying capability. Marketing Strategy Using Marketing Mix Marketing strategies aim at creating the value of customers, capturing and delivering that customer value and above all sustaining the customer value (Nash, 2000, p. 90). An appropriate marketing strategy calls for discipline blending and high flexibility. QOFPC should not only concentrate on a single marketing strategy, but rather it should constantly seek ways of improving the existing strategy. Moreover, a wide range of strategies should be developed where each strategy focuses on each product range. However, the company should develop a strategy using the marketing mix which focuses on informing customers about the advantages of the product, its price, its way of promotion as well as where to find the product (Kotler et al, 2009, p. 208). Nash (2000, p. 94) asserts that the geographic segment explains that people from rural areas are mostly exposed to low living standards due to their likely low incomes. As a result they are expected to struggle hard in order to satisfy their basic needs. Due to this, they may be compelled to go for cheap products. On the other hand health organic foods are mostly recommended on people who have health complications. Such people may not have a choice but to buy the products and in this case they insist on quality. As discussed in the above scenario, QOFPC’s management may be required to reduce prices on their products, but at the same time should never compromise on the product quality because they may lose other potential customers (Schmid, 2007, p.105). In addition, products should be made available to customers according to their needs, for example customers in rural areas can be supplied with lowly priced food products. According to the demographic segment of the market, different advertising strategies should be adopted by a company in order to reach people of all ages (Kotler et al, 2009, p. 210). Despite this fact, QOFPC should not concentrate all its resources on coming up with a variety of adverts overlooking other factors. Instead, it should come up with a single advert that captures the needs of all the age groups. The same segment examines the variations in product attitudes that are brought about by gender. In this case, food products that are favored by both genders should be produced in order to capture the interests of both sides (Schmid, 2007, p.106). For instance, women tend to go for cheaper foods as compared to their male counterparts, thus the company food products should be priced reasonably. The psychographic segment on the other hand emphasizes on the differences that are portrayed by people due to their beliefs (Nash, 2000, p. 98). QOFPC’s main aim is to make maximum sales without exploiting its customers and at the same time reaping maximum profits. An individual may be exposed to a lifestyle where he/she takes what is available without being attached to a brand. In such a case, QOFPC must ensure that all its products are available to all its customers and at the right time. Promoting a product through gifts, samples and reduced prices is also very necessary because it increases a customer’s interest in the product. Schmid (2007, p.108) explains that creating a marketing plan is very important since it guides the company on making decisions that will gear it towards the attainment of its mission and vision. References Kotler, P. et al, 2009. Marketing Management: A South Asian Perspective, New York: Pearson Education, Inc. Nash, E. L., 2000. Direct Marketing: Strategy, Planning and Execution, New York: McGraw-Hill. Schmid, V., 2007. E-marketing Strategy for Reg Vardy, Munchen: Grin Verlag GmbH. Read More