Marketing Plan for Whey Protein Producer - Case Study Example

Marketing Plan Project Plan Outline 2.1 Market Summary The demographics of optimum whey protein customers include the following: Young professional athletes aged between 20-35 years. Employed individuals with an annual income of $35,000 and above. Health products stores especially large retail stores with international recognition. The needs of the market for optimum whey protein include: Affordable health products. Health products with high levels of unadulterated whey protein and less of carbohydrates such as cholesterol, lactose, and saturated fat (Navarra 56). Health products with little or no side effects to consumers. The trends in the market for optimum whey protein include: Consumers have shifted their demand for health products from products with less natural taste to products with more of natural taste. Increased demand for products with high levels of proteins and less of carbohydrates. Young professionals aged 20-25 have increased their demand for optimum whey protein in the last five years (Navarra 180). New health products have made an entrance into the market The market for optimum whey protein has been growing at a steady pace in the last five years. 2.1.1 Market Demographics There are two major customers for optimum whey protein including small shops and large retail stores such as supermarkets. Small shops: they mainly serve customers located in small geographic regions. They include general stores for consumer products and are the largest customers of optimum whey protein. The optimum whey protein will be able to fit in such shops. Other small shops include chemists and mini-supermarkets. They ensure that the product reaches the smallest parts of the market (Navarra 200). Large retail stores: include supermarkets and large chemists. Large retail stores occupy the least market share and are the smallest customers of optimum whey protein. These products are available in supermarkets in large quantities. This offers a tremendous opportunity for the sale of optimum whey protein to the market. 2.1.2 Market Needs Consumers have become price conscious and have developed a need for affordable health products. Optimum whey protein will meet such a need by offering the products at cost effective prices. Recent market research studies indicate that consumers are also very conscious of their health and the content of what they consume (Brewer 95). Optimum whey protein contains high levels of proteins and less of carbohydrates which maintain good health. It also has very few side effects on consumers hence favorable for consumption. 2.1.3 Market Trends In recent years, consumers in the market for health products have shifted their preferences to demand more of products with natural tastes. The consumers have also increased their demand for products with high levels of proteins as they aim to boost their health. This is a wonderful opportunity for optimum whey protein to thrive because it contains high levels of proteins and low levels of carbohydrates. There has also been the entrance of new health products which have increased competition in the market. In the last five years, there has been increase in the demand for optimum whey protein among young professionals. This can be attributed to the fact that most of them are making efforts to keep their bodies healthy. 2.1.4 Market Growth The growth of the market for optimum whey protein is estimated to be about 5 percent each year. This growth has been consistent in the last five years and analysts record that the market may grow by 7 percent in the next five years (Brewer 57). The market growth has been characterized by increases in demand especially among athletes in the field of body building. The product has recorded an increase in usage among body building athletes because it contains high levels of protein, which is an important supplement for body builders. 2.2 SWOT Analysis 2.2.1 Strengths Leading product in the market for body building supplement products. Cost effective hence affordable. High levels of proteins and low levels of carbohydrates making it very healthy. Loyalty customers. Strong brand name among body builders. 2.2.2 Weaknesses Newly introduced into the market. May have significant side effects on consumers. Not purely natural. 2.2.3 Opportunities Increasing market for body building products. Availability of diverse channels of distribution. Growing export market for body building products. Growing number of users in social media. 2.2.4 Threats Emergence of counterfeit/low quality products. Use of competitive technologies by other companies in marketing competing products. Presence of competitive products such as MusclePharm Combat Powder and USPlabs Jack3d. 2.3 Competition Clients in the market for health products consider a number of factors when making purchase decisions. Some of the factors considered include affordable prices, high quality products and effects of using the product. Based on the three factors, competition comes in the following manners: There is an increase in the number of lowly priced health products in the market. This will create a situation where customer will shift to use the lowly priced products (Berkowitz 180). Established brands are able to provide quality products hence attracting a significant market share. Competing business are introducing products that have little or no effects on the health of consumers. Since this is our competitive advantage, there is bound to intense competition. 2.4 Services The company deals with the supply of optimum whey protein to customers in the market for body building products. We supply the product to the global market as opposed to the domestic market only. All your body building needs are met with the supply of optimum whey protein. Our company has a network of distributors who manage the distribution of the product. We ensure that our product gets to the market in time by using short channels of distribution. Most of our transactions are on cash basis but we also offer credit arrangements on the sale of our products. There are also cash and quantity discounts on all our products. However, we do not undertake in the manufacturing of optimum whey protein (Blythe 114). 2.5 Keys to Success The major key to success is our electronic business model which allows customers place orders and receive optimum whey protein over the internet. The world of technology has in the recent past been very dynamic. This is can be explained with the invention and use of electronic commerce, and also the invention of social media. These two factors are critical to the success of optimum whey protein in the market. The use of the internet will aid the business in marketing optimum whey protein to a wide market (Berkowitz 189). Social sites such as Facebook and Twitter have a combine number of users in excess of one billion. This is a potential market for optimum whey protein. Social sites offer advertising services for a number of businesses and our business will ensure that the product is advertised in the social media. The use of electronic commerce in business transactions has the effect of improving service delivery while reducing the cost of operation. Electronic commerce business model eliminates the use of physical premises and reduces the time taken to make transactions. It also aids in recording the number of potential customers in terms of site visits. The other key to success is that optimum whey protein is healthy and cost effective. The product has high levels of proteins which play an essential role in body building and low levels of carbohydrates which are mainly responsible for obesity. The product is priced at favorable rates hence making it affordable. The fact that optimum whey protein is cost effective and healthy makes it highly desirable among consumers (Blythe 130). This will create a competitive advantage for the product and it is expected that there will be high levels of sales revenues. 2.6 Critical Issues Internal Factors 1) Penetrating the target market: the product should be promoted using tools such as personal selling, advertisements in trade magazines and participation in trade shows. The product should also feature in commercial advertisements on television and radio. 2) Customer Relationship Management (CRM): there is need to maintain good ties with customers. This can be achieved through the following approaches: Understanding goals and objectives of relationship: the company needs to have a deep understanding of the needs of its clients and should ensure that all the information about the product is made available to the consumer. Advanced service offering: new products and services are critical to the success of optimum whey protein in the market. New products will ensure that the brand stays relevant in the market. New service offerings improve customer satisfaction hence attracting more customers. 3) Support from top management: the success of the product requires consistent support from the top management especially in the initial phases of launching the product in the market. This will ensure that there is good execution of marketing plans and strategies which will eventually lead to customer satisfaction (Berkowitz 200). 4) Customer purchasing power: the ability of customers to purchase optimum whey protein is very important. The company should conduct surveys on the ability of consumers to purchase the product so as to determine price levels that are friendly (Navarra 210). 5) Human resources: adequate personnel will ensure that the marketing plan is a success. This is because there will be enough personnel to execute the marketing plan. External Factors Some of the external factors that will have an impact on the performance of optimum whey protein in the market include: 1) Rise in prices of oil: this will increase the cost of production hence reduce profit margins 2) Intense competition: this will reduce sales revenue levels. 3) Presence of counterfeit products: this will affect sales levels in the market and may also result in increased regulation (Blythe 136). 2.7 Channels Optimum whey protein will be distributed through multiple chains that will include wholesalers, the internet, catalogues, sales team, consultants, dealers, retailers and sales agent. Despite having multiple channels of distribution, the product will be made available in the market mainly through retailers. Supermarkets and small stores will form the bulk of distributors of the product. Wholesalers, resellers, retailers, consultants and agents will be treated as major customers who will be supplying the product to the market. The company will ensure that all those involved in the channel of distribution undergo training so as to ensure that they have adequate support in terms of marketing campaigns and resources (Brewer 99). The company’s channel of distribution will focus on the needs of the consumers so as to improve levels of consumer satisfaction. This will be managed through a number of marketing approaches. The first approach is that customers in need of personalized services will have their needs fulfilled through the use of local dealers. There will be a local dealer network that will ensure consumers receive personalize services. The second approach relates to internet users who prefer making their purchases online. The company will create an electronic commerce website and an order fulfillment site where customers will place their orders and have them delivered in time (Brewer 100). The company will also seek the services of established online retailers such as eBay who will be offering the optimum whey protein from our company on their site. The third and last approach will involve the company creating a specialized sales team that will be in charge of closing deals with customers directly. In this case, the customers include wholesalers, resellers, retailers, consultants and agent. 2.8 Macro environment There are a number of factors in the macro environment that influence the success of optimum whey protein. The macro environment factors include: a. Legal environment: in recent times, there has been influx of counterfeit/low quality products which has resulted in tight regulations. Health products are required to meet strict standard procedures before they are supplied to the market (Blythe 150). b. Economic environment: the recent global economic recess has had a profound effect on the purchasing power of consumers. This has also resulted in increased costs of production which has pushed up the price of optimum whey protein. c. Political environment: there is a high degree of government intervention in the market for health products. Most of the health products are produced by the government. d. Technological factors: new technologies have led to the creation of new business models such electronic commerce. Businesses have been able to sell their products to customers through the internet. e. Environmental factors: increasing concern over the protection of the environment has resulted in high taxes on products that have a high impact on the environment. Works Cited Berkowitz, Eric. Essentials of Health Care Marketing. New York: Jones & Bartlett Learning, 2010. Blythe, Jim. Essentials of Marketing. Chicago: Prentice Hall PTR, 2008. Brewer, Robert. 2012 Writer's Market. New York: Writer's Digest Books, 2011. Navarra, Tova. The Encyclopedia of Vitamins, Minerals, and Supplements. Chicago: Infobase Publishing, 2004. Read More