Marketing Segmentation Strategies in the Context of Food Industry in the UK - Assignment Example

?Marketing Plan for a New Organic Goods Company Executive Summary The primary purpose of this assignment is to propose a valid and a relevant business plan for an organic foods company named Beijing Organic and Beyond Corporation (OABC) through analysing different marketing approaches and attributes. In relation to the present market scenario, OABC is regarded as one of the renowned brands in China, which has number of organic farms across Beijing, Jiangsu, Shanxi, Shandong along with central Mongolia. The company is been identified to build its strong position in delivering wide range of organic foods including vegetables, grains, fruits and Chinese crabs and eggs (China Beijing Organic and Beyond Corporation, 2013). In this proposed marketing plan, a particular fruit i.e. organic apple has been taken into concern for promoting in the current organic fruit business industry of the UK. Now, the company is intending to expand its business in the emerging UK food business industry. In this regard, the proposed marketing proposal for the company would focus on critically analysing different marketing research tools such as PESTLE, SWOT and marketing segmentation strategies in the context of UK food industry. Additionally, the proposed marketing plan would also incorporate the process of selecting effective marketing approach and different actions in order to enable OABC to achieve its business objectives in the growing food industry of the UK. A financial plan, metrics and appropriate implementation as well as controlling process have further been illustrated for the company in order to attain success of its desired business objectives. Table of Contents 1. Executive Summary 2 2. Situation Analysis 4 2.1 PESTLE Analysis 4 2.2 SWOT Analysis 6 3. Market Segmentation 7 3.1 Targeting 8 3.2 Positioning 8 4. Objectives 9 5. Marketing Strategy 10 6. Marketing Programs 11 6.1 Marketing Mix Strategy 11 7. Financial Plans 12 8. Metrics & Implementation Controls 13 References 15 Bibliography 17 2. Situation Analysis The aspect of situational analysis involves the study of demonstrating the scenario with respect to external environmental factors of a country or a location, wherein the business to be performed (Grabosky & Braithwaite, 1993). The following situation analysis in the form of conducting PESTLE and SWOT would examine the major influencing factors in accordance with the business objectives of OABC. 2.1 PESTLE Analysis Political Factor Although the political condition of a country has major influence on a particular business, the adequate flexibility along with greater deregulatory policies within the political framework of the UK would eventually provide major opportunities for OABC to market organic apples. The well-structured governmental regulations and the adequate balances of the regulatory processes in the UK have long been identified to provide extensive support for the foreign entrepreneurs. Therefore, the political factors would provide a major support for the company to successfully establish its business unit in the respective country (Coventry University, 2013). Economic Factor The economic factors such as income level of the consumers, interest rates portfolio, taxation programmes, exchange and inflation rates of the UK can also be considered to ensure providing adequate support to OABC in successfully achieving its desired financial goals. Specially mentioning, the higher economic growth with regard to Gross Domestic Product (GDP) rate of the nation would also provide an effective support to the company to substantially market and promote its quality based highly nutritional organic apples (Agriculture Horticulture Development Board, 2013). Social Factor In the context of social factor, the increasing number of adult population along with budding changes in their food habits would also facilitate OABC to effectively perform its business operations in the UK market. Moreover, the increasing diversity of the UK populaces along with greater mobility of the communities can also provide greater support to the company while expanding its business in the UK market and target more customers towards buying organic apples (Coventry University, 2013). Technological Factor The increasing growth of web-based communication along with higher usage of social networking media would be major influencing factors for OABC, while performing its business in the UK market. In this context, the company should highly focus on utilising advanced technological features while interacting and promoting organic apples to the potential UK consumers (Coventry University, 2013). Legal Factor The legal factors of the UK can have major influence on the business practices of OABC to supply organic apples in different UK markets. The country incorporates strong regulatory policies along with legal terms and conditions associated with environment, trade policies, copyright regulations and Intellectual Property (IP) related provisions (Coventry University, 2013). Environmental Factor The environmental and the sustainability aspect within the UK business market can be apparently observed as a growing concern for the foreign entrepreneurs. In this regard, the business performance of OABC must need to ensure adequate compliance with the laws and the policies associated with using natural resources and reducing their impact on the environment while promoting and widely marketing organic apples in the UK business markets (Agriculture Horticulture Development Board, 2013). 2.2 SWOT Analysis Strengths Quality based organic food items Strong brand image in the local Chinese organic food industry Competent work culture and effective diversity management capabilities Strong organisational policies in marketing and promoting food items Weakness Conventional organisational structure Low experience on conducting trade in the Western countries Incompetent technological attributes Slower business expansion strategy Opportunities Increasing demand of the organic food items Growing economic condition of the UK Growing trend in changing food habits Increasing mobility and diversity of the societal members Threats Fierce competition in the UK organic food industry Large number of global competitors Changing regulatory norms regarding environment, food, safety and technology usage policies Rising volatility in the global economic condition 3. Market Segmentation Market segmentation can be duly considered as one of the essential factors for an organisation especially while intending to expand its business in overseas markets. This particular notion basically refers to a process of defragmenting market into different sub groups in order to make more efficient of the business practices (Goi, 2009). The proposed business plan of OABC would emphasise segmenting the overall target market into two major categories namely demographic and psychographic factors. In relation to the demographic factor, age, gender along with income level of the customers will be taken into concern facilitating the organisation to attract huge figure of customers by delivering them with their desired products. Relating to the proposed business plan, the psychographic segmentation will also be conducted based upon focusing customers’ perception towards health consciousness food items along with their preferred tastes and choices. 3.1 Targeting The business of OABC would basically focus on targeting different segments of customers in accordance with their prevailed age groups. In this regard, the age groups including the children, young adults and old-age groups can be duly considered as the primary customer segments for the UK business market. Moreover, the individuals belonging to middle and higher income groups can also be targeted for the organic products to be marketed in the UK market. This can be owing to the reason that these targeted individuals in the form of customers might possess greater level of consciousness while having organic food items. 3.2 Positioning In relation to the present competitive business environment, the idea of positioning can be duly considered as one of the major decisions for the marketers, which require to be taken into concern while entering into new business markets. The term positioning generally refers to an effective strategic tool, which increases the efficiency of different marketing operations and supports in identifying customers’ perceptions, attitudes and purchasing behaviours along with patterns (Karadeniz, 2009). The positioning strategy for OABC in marketing organic apples would be emphasised developing the brand value within the respective market. 4. Objectives In order to successfully establish a strong position and ensure long-term sustainability in the UK organic food industry, it is highly essential for OABC to formulate well-built objectives. In this context, the objectives of the organisation would primarily characterise into three major dimensions including financial, marketing and societal objectives. These have been discussed hereunder. 4.1 Financial Objectives In order to establish strong reputation and most vitally to become as the most preferred brand, the financial objective of OABC would be to achieve a minimum growth of 10% in its profitability in each month from the commencement of its business. In addition, attaining the desired sales target of ?20,000 in the first year and augmenting its annual sales around 15% in the 2nd year can also be duly considered as the other primary financial objectives of OABC after entering into the UK organic food industry. 4.2 Marketing Objectives The marketing objective of OABC would be to focus upon promoting organic apples through the incorporation of different media channels including print media, electronic and online media among others. Moreover, in order to attract consumers from different age groups, the involvement of social media tools such as Facebook, Twitter and LinkedIn among others might play a decisive role in promoting and advertising organic apples in the UK business market. 4.3 Societal Objectives The societal objectives for OABC will be to promote social values along with developing health and wellbeing of each individual within the community. Moreover, the adequate compliance with the environmental policies and reducing potential impact of the resources upon the environment would also support the company towards building long-term sustainability of the company in the UK business market (Ministry of Small Business and Economic Development, n.d.). 5. Marketing Strategy Marketing strategy is regarded as one of the crucial steps for an organisation, which determines to obtain a feasible position while intending to perform activities in other overseas markets. In relation to the proposed business plan of OABC for the growing UK market, the marketing strategy of the company would highly focus on evaluating the natural ingredients that are used while producing organic apples without the application of any chemical fertilizer or pesticide. Moreover, the marketing communication process of the company would focus on avoiding the use of Genetically Modified (GM) techniques while producing organic apples. The value based marketing strategy would further enable the company towards influencing the potential groups of customers through the deliverance of quality products or services to them. Therefore, the continuous practice of value based marketing strategy would be implemented in order to build long-term sustainability in the growing UK food industry and also to attain the desired business objectives. 6. Marketing Programs Marketing programs are often regarded as an effective set of practices that execute by an organisation with the aim of generating greater value to the customers by ensuring proper communication and delivering the required products or services in a timely manner (Kotler & Keller, 2006). In order to determine the marketing programs for the organic apples of OABC, it can be affirmed that the sales and marketing strategy of the proposed business plan would be identifying the products or services as per the modern trend and desires of the customers towards organic food items. Therefore, an effective assessment of marketing mix strategy can ensure to provide adequate support to the company for competitively performing in the fiercely growing UK food industry. 6.1 Marketing Mix Strategy Product Product is duly considered to be one of the core attributes for an organisation, which determines its competitive position and ensures future growth (Kotler & Keller, 2000). In relation to the proposed business plan, OABC will be highly prioritised in delivering quality organic apples to the UK customers. Price Pricing of products can further be considered as the other major factor, which can enable the OABC to gain its business competencies and achieve predetermined business targets (Armstrong, & Kotler, 2007). Therefore, in this regard, an effective value- based pricing strategy will be developed for the organic products, which can enable the company to attract and gain a huge number of loyal consumers in the UK business market. Place With regard to the proposed business plan, the exceptional range of quality based organic products will be sold through an effective retail distribution process. Moreover, the organisation would further move towards extending its retail units in different growing markets through increasing its distribution channels in order to achieve wide range of middle and higher-income customer groups in the UK market. Promotion Building a strong group of stakeholders through delivering quality based organic apples would be a major promotional strategy for OABC. This particular strategy would certainly enable the company in building its sustainable position in the growing UK organic fruit market. In addition, the company can also adopt and utilise other promotional tools such as personal selling and advertisements in the newspapers among others. These could be regarded as the other promotional strategies of the company through which it can create greater awareness about various organic food items that would be sold to the UK customers. 7. Financial Plans 8. Metrics & Implementation Controls The implementation and control process is also often viewed to be an important factor, which signifies the rationality along with viability of the overall marketing plan. In this context, the implementation procedure in the proposed marketing plan of OABC would be to conduct number of activities effectively in order to successfully enter into the growing UK food industry. Therefore, the following action plan in the form of metric would eventually demonstrate the overall implementation plan of the company in the growing food industry of the UK. Action How Sensible Measurable Achievable Realistic Time Analysing the current statistics of organic food products in the UK markets Through collecting and assessing relevant information from the local communities It would enable to identify the required nutritional levels for improving consumers’ health It can be measured by changing physical stability of each individual group of consumers With the help of the different sales and marketing operations Within a feasible and affordable cost 1 Month Promoting organic food items in the growing UK food industry Through the alliance of different marketing and promotional media channels It would facilitate to target a large group of potential UK customers It can be assessed by involving different segments of population Through obtaining the support from local communities Within a feasible cost 1 Month Launching extensive numbers of quality based organic food items Through developing different sales networks including, local distributors, wholesalers and retail distribution channels It would make the customers to avail the products Targeting a large group of customers through targeting in accordance with their prevailed age groups and preferred tastes Through the support of the community, government and commercial institutions Within a feasible cost 3 Months References Agriculture Horticulture Development Board, 2013. 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