MARKETING ASSESSMENT

 

MARKETING ASSESSMENT

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Table of Contents

Abstract          2

1. Identify a Firm Which You Think Needs Improvement in Terms of Marketing 2
2. Identify the Market Segments That the Firm Is Targeting and its Current Positioning and Evaluate Them. 3
3. Based on Your Evaluation, Recommend the Target Markets and Positioning Strategy That Would Be Most Appropriate to the Firm’s Long-Term Objectives. 5

References      8

 

 

 

 

Marketing Assessment

Abstract

Marketing assessment refers to reviewing and evaluating existing marketing assets and activities to determine their effectiveness in improving the revenue of a company. In this paper, I conduct a marketing assessment for Mi Constenita, a company that produces food species such as spices, herbs, dried chilies, and many other food products. In this paper, I detail the reasons why Mi Constenita marketing requires some improvement. I also identify the market segment that Mi Constenita targets while expounding on the different types of market segmentation. The paper also provides an evaluation of the current positioning of Mi Constenita. My research also provides a recommendation of the target market and positioning that the firm should consider so to increase their revenue in the long run.

1. Identify a Firm Which You Think Needs Improvement in Terms of Marketing

The firm that I have identified that needs improvement in terms of marketing is Mi Costenita (www.micostenita.com), which was established in Chicago in the year 1995 as a family-owned and operated business. Mi Costenita majors in the production of species, seasonings, dried peppers, snacks, and other packaged food products. Initially, when Mi Costenita was beginning, the primary customers that it focused on were members of the Hispanic community. Still, eventually, the company has grown and established branches in different parts of the united states. Mi Costenita distributes most of its products through stores such as Food-4-Less, Walmart, save-A-lot, Tony’s, and many other stores. This form of marketing has its advantages because it provides a large customer base for the products.

Mi Costenita marketing requires improvement because its primary market focus is large-scale retailers such as Walmart, limiting the organization’s sales and revenue. Some of the disadvantages of relying heavily on large retailers are that the producing company loses control over how its products are marketed and priced (Moorthy et al., 2018). Losing control over the product’s marketing and pricing, especially for a company with many competitors who have comparable products, some of the competitors may reduce their prices to gain a larger share of the market.

 

Analyzing Mi Constenita through a SWOT analysis exposes the strength of Mi Constenita as follows, the company has a large loyal customer base, the company has also been able to withstand various market uncertainties since it was established in the year 1995. The weaknesses for Mi Constenita include it has not diversified its customer base; It has also not developed a robust online presence. The opportunity for this company many people are more willing to try out new cuisines which are rich in culture and flavor; this makes the products of Mi Constenita more marketable. The threat for Mi Constenita is that very many companies are coming up, which produces outcomes similar to those of Mi Constenita.

2. Identify the Market Segments That the Firm Is Targeting and its Current Positioning and Evaluate Them.

Market segmentation refers to classifying a target market into smaller, more defined categories (Dolnicar et al., 2018). Market segments refer to a group of customers that have common characteristics such as needs locations, demographics, or needs. Market segmentation enables a company to identify which audience should focus its marketing resources and efforts. Market segmentation also allows a company to know their target market better to meet their needs. Market segmentation of the target market enables a company to identify marketing strategies that are most effective to differentiate itself from other competitors.

Market segmentation of the target market begins with identifying the target that is which audience will most likely receive the product. In this case, the Mi Constenita company initially targeted members of the Hispanic community and, in particular, women from the Hispanic community. The target market is based on the fact that member of the Hispanic community enjoys food that is healthy and rich in flavor. The products from Mi Constenita are suitable for the whole family. The second step in the market segmentation process is to identify the target market’s needs or expectations. The identified needs and expectations of Mi Constenita’s target market are high-quality products that are healthy, rich in authentic flavor, and suitable for all family members. The other step in market segmentation is dividing the target market groups into subgroups. For example, Mi Constenita has products ideal for generally young people; this group can be divided into young kids and teenagers or young adults. Therefore, Mi Constenita can focus on marketing their candies and toys to kids and marketing their snacks to teenagers or young adults.

There are about four market segments; the first is demographic segments. Demographic segmentation refers to a type of marketing segmentation whereby you classify potential customers based on their observable characteristics, for example, sex, income, race, age, occupation, education level, or marital status. In this type of market segmentation, the market segment that Mi Constenita targets women, especially those with families. This is because women are most likely to go for grocery shopping, especially in most households. The company produces products suitable for all members of the family. The other market segment that the company is targeting is members of the Hispanic community. Mi Constenita has grown tremendously and has become popular in other communities other than the Hispanic community and has established branches in several states in the United States.

The other type of market segmentation is behavioral segmentation, where you categorize consumers into market segments based on their behaviors. These behaviors may include loyalty, usage rate, online shopping habits, or befits sought (Dietrich et al., 2016). In this category, Mi Constenita targets market segments based on loyalty because they are aware that most people from the Hispanic community are loyal to their product. The other market segment targeted is based on benefits sought, and Mi Constenita has targeted people who yearn for healthy food, which is rich in culture and flavor. The other type of market segmentation is geographic segmentation, which entails dividing your target market based on their location. Mi Constenita has established its branches in Houston, North Carolina, Atlanta, Illinois, Michigan, Minneapolis, and other cities in the united states. These cities have a relatively high population and hence increasing the market base for Mi Constenita products.

Product positioning is the process of coming up with a marketing strategy that best communicates the qualities of your products to your target market based on the needs of the target market. The current positioning of Mi Constenita products currently targets women because a woman pictures even the brand design. The product positioning also aims members of the Hispanic community because most of the products produced by this company have names that originate from the Hispanic community. The current positioning of Mi constenita also targets individuals in the middle class because most of the products are distributed in large scale retail stores such as Walmart.

The market segmentation and product positioning of Mi Constenita have been quite useful because they have captured a loyal market base that is consistent in buying their product. Mi Constenita has been able to communicate its products as high quality, crafted with love and passion. This is a beneficial form of marketing because it makes the consumers feel that the products’ producers were intentional about meeting their needs. However, the market segmentation and product positioning of Mi Constenita are narrow and do not focus on broadening the target market.

Based on the product life strategies, Mi Constenita is positioned at the Maturity stage. It describes a stage whereby they are at its peak; however, the market is saturated with other competitors; therefore, it is essential to come up with new marketing strategies to prolong the product life cycle. One of the marketing strategies that Mi Constenita should apply is modifying its target market to widen its customer base.

I used Porter’s five models to conduct a competitive analysis. The first force is supplier; the supplier force of Mi Constenita is relatively high because it produces an authentic, high-quality product, also Mi Constenita products have been in the market for a long time; therefore, they influence their prices. The second force is buyer power; the buyer power of Mi Constenita market segments is pretty high because the products are not essential; therefore, the buyers can choose when to buy or not buy the product. Also, they have a variety of producers to choose from. The third force is competitive rivalry, the market type in which Mi Constenita is based is filled with other companies that are offering similar products. The third and fourth forth forces are the threat of substitution and the threat of new entry. The threat of substitution for Mi Constenita is quite high because it is flooded with similar companies producing comparable goods. The threat of new entry is also quite high because the market is proving to be profitable based on people’s willingness to try out new exotic cuisines. The competitive advantage for Mi Constenita is that it has a loyal customer base; it also produces high-quality products over a long period; therefore, they have won the trust of their customers.

3. Based on Your Evaluation, Recommend the Target Markets and Positioning Strategy That Would Be Most Appropriate to the Firm’s Long-Term Objectives.

One of the target markets that Mi Constenita is expanding its target market to European audiences. In recent years there has been an increased popularity in spicy food in Europe, which has contributed to the rise in demand for dried chilies in the European market. After Asia, Europe stands as the second-largest importer of dried chilies taking up about forty percent of the world’s total imports. Between the year 2014 and 2018, the imports of dried chilies in Europe has been increasing in volume consistently. In the next five years, the importation of chilies in Europe is estimated to grow at an annual growth rate of 5 – 6 % (CBI ministry of foreign affairs, 2019). The largest importer of dried chili in Europe is Spain. In the year 2018, that value of Spain’s Importation of dried chilies was worth approximately 78 million Euros. Some of the factors that have led to this trend are the increasing interest and fascination for international ethnic cuisines and the demand for stable and sustainable sourcing. Mi Constenita should, therefore, consider venturing into this growing market.

The other target market that Mi Constenita should consider exploring is healthy food enthusiasts. In recent years there has been a rising trend of healthy living, and wellness people want to consume organic products. Most health enthusiasts use spices and herbs to add flavor to their fat-free or meat-feeling meals (Market Insider, 2015). Some also use spice and herbs to entice their children to consume more healthy foods (Smith et al., 2019). Most spices and herbs have precious nutritional value, and this is a plus for health enthusiasts. Mi Constenita should position its products in such a way that it can attract more health enthusiasts.

The other recommendation for Mi Constenita is to explore alternative routes to the market, for example, by partnering with restaurants, food trucks, or music events and festivals. Stores and supermarkets are not the only way to reach target audiences (Hilton, 2017). High streets and street food have become very popular, especially those that make Mexican and Hispanic cuisines while utilizing many hot sauces and spices. Many consumers are more willing to experiment and try new flavors. There is also an increased used table sauce to customize dishes. Partnering with restaurants or food trucks will open up new audiences for Mi Constenita, especially in markets where most consumers have disposable incomes and are more willing to spend their money on non-essential products.

Some of the strategies for foreign market entry include establishing a joint venture whereby Mi Constenita can partner with a locally owned business such as a restaurant. Hence, it can establish a strong market base in Europe. The other strategy is starting up their franchise in Europe; this might be time-consuming and difficult because they may have to sell their intellectual property to their franchisee. The other strategy that Mi Constenita should look into while venturing into a foreign market is standardization or adaptation. Standardization involves not altering your product while marketing it in global markets while adaptation, while adaption involves changing the product so that it fits in different global market specifications. Adaptation enables a company to consider the expectations and sections of locals; however, it is time-consuming and expensive. Standardization allows a company to have a single global image, which enhances a faster set up in the worldwide market; however, it might receive less reception in the global market.

The other strategy that I would recommend for Mi Constenita is improving their online presence. A significant percentage of people prefer online shopping because it is easy and quite practical (Harris et al. 2017). Mi Constenita should develop a website that is easy to use and mobile-friendly so that their customers can order products at their convenience. Establishing a website will also enable the company to track and review its customers; hence they will be able to identify the new trends in the market (Vinerean, 2017). The other recommendation for Mi Constenita would be to improve their branding and design. The product packaging and visuals are essential because it acts as the initial impression when customers come across your products in stores. Having inferior branding and design may make customers overlook the time and effort put into coming up with a product. (Tybout & Calkins, 2019).

Another strategy that Mi Constenita should apply is Internal marketing, which involves building a sense of loyalty and engagement with the employees by communicating to the employees the company’s vision and mission. Therefore, employees work towards achieving the goals and objectives of the company. Some of the barriers to internal marketing are lack of regular employee training and poor communication between the management and employees. Therefore, the company should keep employees motivated, conduct proper training to develop their skills, and facilitate smooth engagement between employees and the management.

One of the strategies that Mi Constenita should plan on employing in the future is Return on Investment (ROI), a metric that enables a company to determine the probability of an enterprise to gain returns; therefore its measures the profitability of an investment. The formula for obtaining ROI divides the net return on investment by the cost of investment and then multiplies the answer by a hundred.

 

 

References

CBI Ministry of Foreign Affairs. (2019). The European market potential for dried chilies [Online] Available at https://www.cbi.eu/market-information/spices-herbs/dried-chillies/market-potential (Accessed 11th August 7, 2020)

Dietrich, T., Rundle, S., and Kubacki, K. (2016). Segmentation in social marketing: Process, methods, and application. Springer

Dolnicar, S., Grun, B., and Leisch, F. (2018). Market segmentation analysis: Understanding it doing it and marking it useful. Springer.

Harris, P., Dall’olmo Riley, F. and Hand, C. (2017). Online and store patronage: A typology of grocery shoppers. Internation

al journal of retail & distribution management, 45(4), pp 419-445.

Hilton, J. (2017). ‘Growth patterns and emerging opportunities in nutraceutical and functional food categories: Market overview.’ In Bagchi, D., and Nair, S. (Eds) Developing new functional food and nutraceutical products. Elsevier, pp.1- 28. https://doi.org/10.1016/B978-0-12-802780-6.00001-8

Market Insider. (2015). ‘Spices,’ Market Insider. Available at https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwinx8mT-pLrAhUIUhUIHQT1AAEQFjAAegQIBRAB&url=https%3A%2F%2Fwww.intracen.org%2FuploadedFiles%2Fintracenorg%2FContent%2FExporters%2FMarket_Data_and_Information%2FMarket_information%2FMarket_Insider%2FSpices%2FITC%2520Market%2520Insider%2520Spices%2520report%2520June%25202015.pdf&usg=AOvVaw1Aeyz-gs8_QmVKVwdDbAeN (Accessed at 11th August 7, 2020).

Moorthy, S., Chen, Yoongmin, C., and Tehrani, S. (2018). Selling your product through competitors’ outlets: channel strategy when consumers comparison shop. Marketing Science, (37)1. https://doi.org/10.1287/mksc.2017.1063

Smith, R., Kelly, B., Yeatman, H., and Boyland, E. (2019). Food Marketing influences children’s attitudes, preferences, and consumption: A systematic critical review. Nutrients, 11(4). https://doi.org/10.3390/nu11040875

Tybout, A., M., and Calkins, T. (2019). Kellogg on branding in a hyper-connected world. John Wiley & Sons.

Vinerean, S. (2017). Importance of strategic social media marketing. Expert Journal of Marketing. Sprint Investify, 5(1), p