Marketing Group Project
- Executive Summary
The paper discusses the establishment of organic breads in the American market. The product statement addresses the development of a product that is high in fiber, with sunflower seeds. It will target individuals between the ages of 39 and 70 who are interested in healthy eating.
The environmental analysis checks the factors beyond the organization that are likely to impact productivity. Such factors will include the adoption of new technology that will improve organizational efficiency. The research will also consider the economic, legal, and social factors affecting the organization so that they utilize appropriate strategies to remain competitive.
The SWOT analysis focuses on the factors within the company’s environment that will influence productivity. Some of the company’s strengths include the use of technology to ease production, highly skilled employees, and excellent customer service that will attract customers into the market. The weaknesses include security and fraud concerns that will discourage customers from engaging in online business. The perishability of the products also poses a threat to the profitability of the organization since the firm will have to incur the cost. The opportunities that the organization could tap to improve efficiency include the adoption of more technologies to enhance storage. However, the organization needs to deal with weaknesses such as competition from already established organizations in the industry, the lack of barriers to the entry of organizations in the industry, and legal changes that could affect the profitability of the organization.
The primary and secondary research section includes the use of both qualitative and quantitative data collection methods like interviews with organizational managers, focus groups, and consumer surveys that will reveal the trends in the industry. Secondary research will be conducted through an analysis of recently published information on the bakery industry to determine the relevant factors.
The marketing goals and objectives describe what the organization hopes to achieve in terms of market share gain, profitability, and revenues. The sector also considers the ability of the organization to increase its customer base over the years.
The marketing strategies consider the target market, including market segmentation and specific demographics that will help the organization to meet the specific needs of the market. The marketing implementation section describes the strategies that the firm will adopt to create a brand image in the market, including social media marketing.
- Table of Contents
Executive Summary……………………………………………………………………….…… 2, 3
Product Statement…………………………………………………………………………………6
Situation/Environmental Analysis………………………………….………………………………6
Analysis of the External Environment…………………………………………………………….6
Industry Situation………………………………………….……………………………………6, 7
Competitive Analysis………………………………………………………………………………7
Technological Forces……………………………………………………………………………7, 8
Economic Situation………………………………………………………………………………..8
Political, Legal, and Regulatory Factors…………………………………………………………..8
Cultural/Societal/ Demographic Trends…………………………………………………………..8
Analysis of the Customer Environment…………………………………………………………8, 9
- SWOT Analysis……………………………………………………………………………….9
Strengths…………………………………………………………………………………………..9
Weaknesses……………………………………………………………………………………9, 10
Opportunities…………………………………………………………………………………10, 11
Threats………………………………………………………………………………………..11, 12
Primary and Secondary Research………………………………………………………………..12
Qualitative Research……………………………………………………………………………..12
Quantitative Research……………………………………………………………………………12
Secondary Data…………………………………………………………………………………..12
Marketing Goals and Objectives…………………………………………………………………13
Marketing Strategies……………………………………………………………………………..13
Target Market Definition…………………………………………………………………………13
Strategy Statement……………………………………………………………………………….14
Image and Market Position……………….………………………………………………………14
Value Proposition………………………………………………………………………………..14
Marketing Implementation………………………………………………………………………14
Marketing Budget……………………………………………………………………………14, 15
References……………………………………………………………………………………….16
Marketing group project
- Product Statement
The new business will operate in the bakery industry with a specialization in the baking of wholemeal bread that will be made from sunflower seeds. The bread will have a wide range of benefits that will include a high amount of fiber that will be easily digested and therefore making the product suitable even for people willing to lose weight. Increased competition in the bakery industry means that new entrants must derive unique strategies that enable them to compete effectively in the market. The organization will, therefore, focus on packaging as the ideal marketing strategy that will allow them to remain relevant in the competitive market. Firstly, the bread will be packaged in different sizes, and the prices will be charged according to the size. Secondly, the organization will use oat hulls as the primary material for the packaging bags used for the products. The primary benefit of these packaging bags lies in their ability to decompose quickly, and therefore reducing the environmental pollution.
- Situation/Environmental Analysis
- Analysis of the External Environment
- Industry Situation
The bakery industry is huge in the United States, with a significant share of the population eating bread and wheat products. The American Bakers Association acknowledges that the bakery industry contributes to 2.1 percent of the American GDP (The American Bakers Association). In addition, the company’s specialization in the production of the wholemeal product means that it will attract a large number of customers who are willing to keep fit in the American economy.
The value of the revenues also determines the size of the industry every year. Research reveals that the bakery industry generates more than $30 billion in revenues every year. Already, there are over 6,000 organizations in the retail bakery business, while there are nearly 3,000 commercial bakeries (Hyslop, 2018). Although there are many organizations in the baker industry, there is a high probability that the organization will fetch a considerable market share from the customers wishing to invest in healthy eating. However, there is a high problem in that the organizations in the bakery industry do not make high-profit margins because of their inability to transfer the rising cost of wheat to the final consumer.
- Competitive Analysis
The current bakery industry in the United States is highly competitive, which means that organizations ought to be innovative in the type of products they offer to the customers. Dave’s Killer Bread is selected as the company’s key competitor since it has managed a significant share of the American market, with over 1 million followers on its Facebook page. In terms of revenues, the organization already had $53 million in 2012 before Flower Foods acquired it in 2015 (Abdulla, 2015). The organization also holds a considerable share of the North American markets with markets in Canada and the United States. Having been founded in 2005, Dave Killer’s Bread offers a total of 7 varieties of organic bread with ingredients such as honey oats, whole wheat, whole grains, Powerseed, and Good Seed that distinguish them from the market (Dave’s Killer Bread).
- Technological Forces
Technology drives efficiency in the baking industry. The organization will, therefore, adopt high-quality technology that includes spiral style mixers that enable the bakers to make larger batches of bread with less oxidation. The mixers will also provide enough rest time for the dough without supervision, leading to the production of high-quality products. The organization will also utilize silicon bakeware that will help to store the dough in frozen form, which will reduce the amount of time used to prepare bread upon request by a customer.
- Economic Situation
The economic situation of the country has no significant impact on the demand for bakery products. This is because baked products such as bread have considerably lower prices compared to other products in the market.
- Political, Legal, and Regulatory Factors
The political, legal, and regulatory factors will not have a significant impact on the bakery industry. However, the regulatory factors that could affect the performance of the organization include the introduction of taxes on all online services, which would lead to an increase in the prices of the bread and eventually affecting profitability.
- Cultural/Societal/ Demographic Trends
Social factors are likely to impact the performance of the organization. Cultural factors are also likely to have a positive impact on the demand for organic bread. American culture has always embraced baked products. Even better, cultural changes have led to the introduction of organic bread whose demand is high in the market from the increased need of the population to eat healthily. The organization will also benefit from the increased population in the United States, which will be interested in eating healthy.
- Analysis of the Customer Environment
The organization targets both men and women between the age of 39 and 70 years. The reason for the selection of the target market is the fact that they are conscious about their health. The organization will specialize in the production of organic breads that will be high in fiber and, therefore, get easily digested. The breads will also be suitable for individuals of this age group regardless of their health condition.
- SWOT Analysis
- Strengths
Highly qualified personnel
The organization understands that the staff act as ambassadors to the organization. For this reason, we will invest in highly skilled staff who will help to drive the company’s revenues and promote a positive brand image. The staff will also undergo continuous training that enables them to enhance their skills for career development. This will create a motivated workforce that will be willing to stay longer in the organization.
Technological know-how
The organization will adopt recent technologies that will enhance the development of standards that will be utilized throughout the company’s locations. The organization will also use modern technologies that will help the customers to access their site through mobile devices for convenience.
Free delivery of products
The firm will offer free deliveries that will create convenience for customers and therefore increase their competitive position in the market. However, the cost of delivery of the goods is borne by the clients unconsciously since they are incorporated in the product prices.
- Weaknesses
Security and fraud concerns
The organization faces the risk of losing a significant share of the market because they have insecurities over the use of credit cards. Most people fear using their credit cards for online transactions because technology has led to the development of strategies to con individuals conducting online business.
Perishability of the product
The organization understands that baked products are better consumed when they are fresh. It will, therefore, make sure to offer free delivery of the products probably within two hours. However, the organization is bound to bear the cost of delivery, including taking responsibility for the items damaged during transportation.
Opportunities
Adoption of technology
Technology holds myriad benefits for the organization. First, the firm should consider the development of unmanned centers that will help them reduce the cost of employees while they increase efficiency for the customers. Secondly, the organization should make improvements to the shopping cart experience that will create a quicker, smoother, and friendlier customer shopping experience.
Using big data analytics
The organization should utilize technology to determine customers’ shopping patterns. Moreover, the use of data analytics can help the organization to identify the products that the customer has purchased before so that they can make similar suggestions involving products in the same category. The organization will also use customer data to determine the location of the customer and their neighborhood and then suggest preferences for individuals in that region.
Excellent customer service
The organization will understand that most customers are willing to work with those organizations that will provide the highest quality of customer service. For this reason, the customer service department will act as the organization’s marketing department as it will focus on meeting the exact customer’s needs. The organization will also rotate employees so that each one of them will operate in the customer service department for at least a month so that they understand the diverse customers’ needs. The provision of excellent customer service will also be enhanced through the use of live chat that will increase the interaction between customers and the organization.
Social media marketing
The organization will utilize social media as the primary marketing tool because of its potential to reach a large audience without incurring the cost of marketing. Moreover, the organization understands the ability of social media marketing tools to enhance quick information sharing that will help to create awareness of the company’s products and eventually to increase their market share.
- Threats
Competition
The organization will face competition from other similar organizations in the same industry. These will include the already established e-commerce businesses in the retail sector like Amazon and Walmart, which have thousands of product offerings, thereby increasing the customers’ convenience. These organizations also have stable capital sources that make it easier for them to survive, which is not the case in a new organization.
Legal changes
Various Federal laws have a direct impact on the performance of the organization. For instance, legislation that is currently before Congress might require that all internet sellers collect sales tax, which is likely to discourage customers from buying.
Low barriers to entry
There are very few barriers to entry in the bakery e-commerce business. In addition, business owners do not require physical premises as they can sell their products from the comfort of their homes as long as they have the means to communicate with their customers. Sellers do not even need to design their website as they can comfortably sell their products through other social media channels such as Facebook, Twitter, and Instagram.
VII. Primary and Secondary Research
- Qualitative Research
Qualitative research will be utilized to provide more information about the viability of the business. This strategy is useful since it will provide in-depth information concerning the e-commerce industry. Data will be conducted in the form of interviews and focus groups that will be conducted on senior managers of organizations in the retail industry to determine the strategies they utilize to remain relevant in the market.
- Quantitative Research
Quantitative research will also be necessary for the firm since it will help to determine trends in retail e-commerce marketing. Data will be collected in the form of consumer surveys that will help to collect data from customers in the market. This will help to determine customer preferences and then utilize them in strategy development.
- Secondary Data
Secondary data will be used to supplement the resources from both qualitative and quantitative research. Data, in this case, will be collected on the already published material related to e-commerce in retail marketing. However, such data must be recent so that it relates to new trends in business.
VIII. Marketing Goals and Objectives
The organization will carry out intense marketing strategies that will enable them to reach out to larger target audiences within a short time. Some of the marketing goals and objectives will include increasing the company’s market share by 6% in the first year, 15% in the second year, and 38% in the third year. The organization also hopes to use various advertisement strategies that will enable them to enter new markets internationally. In this case, the organization hopes to expand its operations to the regions of Asia and Europe within five years. The organization also hopes that the marketing strategies will enable them to increase their sales by 20% in the first year, 35% in the second year and 55% in the third year
- Marketing Strategies
- Target Market Definition
The organization will offer a product in the bakery industry with the target market, including both men and women between the age of 39 and 70years. The products will be of high quality, which will help them to attract high prices in the market. The organization will also utilize the geographical segmentation of the market to reach its target customers. The headquarters will be in Phoenix, Arizona. At the same time, the organization will also have operations in Tucson and Sedona because they have high populations of individuals with interest in baked products.
- Strategy Statement
- Image and Market Position
The organization will seek to establish its brand as unique in the market as it offers a variety of benefits to customers. The product will qualify as a luxury due to the use of sunflower seeds as a primary ingredient, which will help them to fetch prices that are considerably higher than those of other similar products in the market.
- Value Proposition
The organization will seek to offer unique products in the market that will change the way Americans view bread. The company understands that customers are aware of the effects of wheat on weight and therefore invests in wholemeal products that high in fiber, making it easily digestible and thus having no adverse effects in the body.
- Marketing Implementation
The organization will design the pricing of the products as a strategy to attract customers into the market as the prices will be associated with the high quality of the product. The organization will also consider packaging as a marketing strategy that will differentiate its products from those of competitors. The organization will also utilize free delivery of the products within a few hours to ensure that customers receive the product when it is still fresh. The organization will also form relationships with retailers who will help them to distribute their products in the market as long as they will get to the customers while they are still fresh.
- Marketing Budget
The marketing budget for the organization is considerably low. Firstly, the acquisition of the packaging bags will be cheap because they will be made from purely natural raw materials that are readily available. The marketing budget will also be low, considering that there are little costs involved in marketing the company’s products on social media platforms. The total marketing budget will, however, vary according to the prevailing market conditions. In the first year, the organization will incur $100 in marketing, $40 in the second year, and $30 in the third year.
References
Abdulla, H. (2015, August 20). What the Dave’s Killer Bread Deal Means for Flowers Foods.
https://www.just-food.com/analysis/what-the-daves-killer-bread-deal-means-for-flowers-foods_id130879.aspx
Dave’s Killer Bread, G. (n.d.). Our Products. http://www.daveskillerbread.com/our-products
Hyslop, G. (2018, October 31). Industry Insight into US Bakery Market.
https://www.bakeryandsnacks.com/Article/2018/10/31/Industry-insight-into-US-bakery-market
The American Bakers Association. Retrieved from https://www.americanbakers.org/industry-
data/