Feasibility and Marketing Evaluation - Essay Example

Feasibility and Marketing Evaluation (Part 2) Marketing Strategy Any missing element is worth 0 7. Does the Strategy Make Sense? 8 – 10 = Clear and Complete description– Addresses each of the 4P’s - including: A clear description of the offering including image, personality, etc. Pricing plans (e.g. initial pricing, discount policy), positioning strategy, etc. Complete advertising and promotion plan (e.g. branding) Clearly defined outlets to customer 6 – 7 = Some basic analysis of the 4 P’s 0 – 5 = Poor or Incomplete analysis 5 ------- Competitive Analysis 8. SWOT (Strengths, Weaknesses, Opportunities and Threats) 8 – 10 = Complete, All 4 elements well analyzed – Prepared for key competitor(s) and/or competitor profile. Includes the new venture’s plan to exploit it’s strengths and how it will leverage unique opportunities 6 – 7 = Relatively Complete, All 4 elements considered 0 – 5 = Poor or Incomplete analysis ----6--- 9. 5-Force Analysis (Internal Rivalries, Customers, Suppliers, Substitutes, New Entries) 8 – 10 = Complete, All 5 forces elements well analyzed 6 – 7 = Relatively Complete, All 5 elements considered 0 – 5 = Poor or Incomplete analysis ----5--- 10. Professor Evaluation B: Overall Impact WOW Factor – Innovative and Persuasive Quality: Complete, Comprehensive and Consistent Presentation: Document Organization, spelling, grammar, clarity and citations This is an overall analysis of how good an overall plan you put together, most will get 7’s for an adequate story, only 1 or 2 will get 10’s for exceptional work. (e.g. did a customer survey, ran focus group, had an exceptional competitor analysis) ----5--- Total Score (out of 100) --21----- Contents STRATEGY SUMMARY STATEMENT 5 Potential customers 5 Goal and objectives ( Mission ) 5 Products and services 6 Distinctive competencies 6 Potential partners and employees 6 Potential competitors 6 STRATEGIC DETAILS 7 Product (positioning) 7 Communication (promotion) 7 Location and distribution (Place) 8 Pricing 8 RISK ANALYSIS 9 Porter’s five forces 9 SWOT Analysis 11 References 14 Bibliography 14 STRATEGY SUMMARY STATEMENT Potential customers The new business idea is that of food industry and the name of the company is Crazy food Plc which falls into the category of food processing and ready to eat. Thus the potential customers are those set of people who wants to keep them fit and are health conscious. It has also been recorded that there has been a huge demand for products such as chips and dark chocolates as they contain less sugar and are of crispy in nature. Goal and objectives ( Mission ) The objective of the company is to serve the people with healthy food and provide its customers with a healthy lifestyle. The company’s priority is to provide the customers with excellent food. Goal and objective of the organization includes, To offer wholesome, organic, fairly priced and diverse options of food to its customers Create an attractive as well as diverse menu Provide a high class customer service which enhances rapport with the target customers through responding towards the need and wants of customers. Establish a high quality jobs for employees with good wages, opportunities in career advancement, provide training and employees participation in decision making. The mission of Crazy Food plc is to provide its valued customers high quality food and prompt service in a courteous and friendly manner. The mission of the organization can be achieved with the above set goals and objectives. In order to provide prompt service, the company aims to reduce the customers waiting time by 10minutes, involve organic food and use products which are low in fats and cholesterol. Products and services The products of the company would include the processed food and the ready to eat food products. The first brand of the company will be the confectionery brand by the name Crazy bite. Crazy Bite is a brand that have different favored sweets bar which will be available in different shapes and designed. It is one of the confectionary products of crispy in nature and coated with chocolate. Distinctive competencies The company provides a high class product as well as customer service. Unlike other food processing and ready to eat organization, Crazy food aims to provide its customers with the top quality of food products, which includes organic food at a large quantity at a reasonable price. The organization has adopted the low cost differentiation strategy as the prices charged are relatively low as compare to its competitors and aims to be the cost leader in the food processing industry and it differentiates its product by offering organic food products in the category of chips and dark chocolates along with others. Potential partners and employees Potential partners would be those health care centers or also those stores which keep healthy products. One of the most effective partners would be the organic food centers. People nowadays prefer organic and healthy food and thus they would prove to be potential partners. Potential competitors Potential competitors for the company would be those who are also offering the same type of food products and care for people’s health in the snack and confectionary market in United Kingdom. Few of the potential competitors for Crazy food plc includes, Brown Bag Crisps which manufactures potato crisps in UK; Burts Potato Chips; Corkers Crisps; Crips; Kolak Snack food which is one of the leading manufacturer in UK and supplies its product in UK and Europe (PotatoPro, “Manufacturers of Chips and Snacks”). STRATEGIC DETAILS Product (positioning) Positioning is nothing but a battle of the minds (Ries, p.3). The product will be positioned as healthy food in the minds of the customers which would not increase the weight of the people despite of the product being confectionary. This will help the potential customers to try out the product and generate awareness. The company needs to capture the minds of its potential customers by portraying the product to be a healthy lifestyles and letting the customers adapt to the changing needs of their body. Crazy food needs to maintain this concept and create awareness in the mind of the customers. Communication (promotion) There is various ways through which a company can communicate to its potential customers. Some of the most effective promotional strategy includes publicity, advertising, sales promotion, public relation, and personal selling (Harper, p. 108). In the same way Crazy Food will also apply the communication tools in order to create awareness in the minds of the potential customers. The company would apply both push and pull strategy to communicate with the targeted people. Advertising would be the key tool which would be used by crazy Food Plc. The print media would be used by the company to promote its confectionary product. Advertisements would be made in newspapers, health food magazines. Sales promotion would also be taken care of as its one of the most effective communication tools among the customers. Also advertisements would be shown in billboards and hoardings to attract the customers. Thus with the help of these effective communication strategy, the company will be able to promote its product and create an awareness in the minds of the customers. Location and distribution (Place) Location and distribution pays an integral part of the marketing mix of any organization. It takes into consideration the desired location and the channel of distribution along with the supply chain management. An effective supply chain means coordination with the suppliers, manufacturer and also the retailers to bring in the desired result (Greene, p. 154). Similarly Crazy Food distribution and location is also effective and takes into consideration all the required people from the manufacturer to the retailers through its supply chain. The company concentrates on how to get the goods which are to be sold and how to get the products available to its customers. Distribution is important for the company so that the products are supplied in a timely manner as well as and when required. The channel of distribution used by the company would be three tires distribution channel from the manufacturer to the wholesaler to the retailers and finally to the customers. The company has set to establish in the UK and gradually it would expand into other locations of UK and then into other countries. Pricing Pricing is one of the key elements of the marketing mix and is important to decide on the prices based on the various different factors. The pricing strategy adopted by the Crazy Food Plc would be based on the competitors based pricing and this is because the company is new and it needs to stay at par with its competitors. If the prices are charged high it would prove to be difficult to convince the customers to buy its product rather than its competitor’s product. Thus initially it would follow the competitor’s strategy and latter it can switch on to the strategy of market skimming one of the most effective pricing techniques. With its core competency of low cost differentiation strategy, the price charged by the company is much lower than its competitors. The price of its chocolate and confectionery would range from £2.00 for its small bars to £25.99 and snacks items would also remain to be low priced but with high quality. The snacks products would be priced from £5 to £10.00. The company will not be able to go beyond this because it would bear the cost of latest technology, and most important it deals with organic foods which are regarded as costly. RISK ANALYSIS Porter’s five forces 1. Customer bargaining power: high Bargaining power of customers is high in this case as there are various others confectionery stores located in the place giving the customers a huge option to choose from those stores. Customers have the bargaining leverage as it has the power to choose from many other food stores which has a brand name and the customers are used to with the price and the quality of the food. The buyers are concentrate as the people have not yet adopted consuming organic foods and the few buyers tends to carry a significant market share. Therefore the bargaining power of buyer is high. 2. Supplier bargaining power: high The suppliers are concentrated all over the place and the industry requires raw materials at an adequate amount along with labor and other supplies. The need between the buyer and the supplier relationship exits. The suppliers have the power to exert an influence over the manufacturing or the producing industry. The supplier have the advantage of forward integration making them more powerful and the cost of switching suppliers are quite high and can be felt heavily by the retailers and with powerful customers, the demand for suppliers are high and thus the bargaining power of suppliers is high. 3. Threat of potential entry: Moderate to High The threat of new entrant can be said to be moderate to high because, to set up a food processing company usually requires a huge amount of capital. It should comply with the latest technology and with changing customer’s preference and taste; the potential entry should match up with the environment and produce the product need by its target customers. Also with some of the big brands in the industry it would become difficult for the new organization to set up a brand image and brand name and compete with its competitors. 4. Substitute product: Low to Moderate The food industry does not have substitutes but the confectionery and snack industry tends to have a high level of substitute product. The customers are very much concerned about the health does not want to consume products which would harm them and instead opt for foods which would benefit them. But with organic food coming into the picture customers are demanding more of organic food which are low in fats and cholesterol and are healthy to consume. It is often misunderstood for smacks and confectionery can never be healthy and people with such mindset tend to consume other substitute instead of chips, dark chocolates and other products. Therefore it can be concluded that the threat of substitute can be regarded as moderate to high. 5. Internal rivalry: high Rivalries among the firms are quite high as there is a huge competition in the food industry. Everyday each of the organization is bringing out new products which appeal to the customers ranging in huge competition among the firms and this is particularly true in snacks and confectionery. A person who loves these kinds of food also loves to try out different range of products from different brands which increases the competition at a high rate. Industry in order to meet the consumers demand keep on introducing new products leading to intense competition not only for products but also in terms of price. The food industry follows the competitors pricing policy and tends to stay at par with the competitors if not at a higher level. SWOT Analysis 1. Strength Our company has a creative, educated, and young motivated management team. Organic food is one of the biggest strength for the company along with its customer service. Crazy Food is a new company and it has the ability to change and provides the high quality product to our customer. Our company offers the products according to the needs of its targeted customers. The products are manufactured taking into consideration the health factors of the customers which add on to the strength. 2. Weakness A major weakness lies in the fact that the company is a start up organization and as a result it would have to face a tough time to become one of the best company offerings health food and generating awareness. Lack of brand awareness and brand name and image Our company is still young and new company, so we have a small budget for direct marketing for our customer. 3. Opportunity A huge opportunity lies in the food industry especially in the ready to eat and processed food as more and more people are opting for such kinds of food products and the health factors is also another major opportunity. Organic food is the future of food industry as the customers have lately recognized the need of healthy food and the importance of staying healthy. Consumers awareness becomes more increase, so it would be a good opportunity of mouth advertising. 4. Threat The Company faces threat from its competitors in the field of its food segment especially in the ready to eat food as there are many new companies coming up with the concept of ready to eat food. Our target market becomes more competitive rapidly. Potential entry of new competitors with strong capital base and with latest technology can pose a threat to the company. References Greene, Cynthia L. Entrepreneurship: Ideas in Action. USA: Cengage Learning, 2011. Print. Harper, Stephen C. The McGraw-Hill Guide to Starting Your Own Business: A Step-By-Step Blueprint for the First-Time Entrepreneur. New York: McGraw-Hill Professional, 2003. Print. Ries, Al. Positioning: The Battle for Your Mind. New York: Tata McGraw-Hill Education, 2003. Print. PotatoPro. Manufacturers of Chips and Snacks. Companies. No Date. Web. 9 July. 2012. < http://www.potatopro.com/Lists/Companies/Chips%20and%20Snacks.aspx> Bibliography Bohm, Anja. The SWOT Analysis. Germany: GRIN Verlag, 2009. Print. Dent, Julian. Distribution Channels: Understanding and Managing Channels to Market. USA: Kogan Page Publishers, 2011. Print. Fleisher, Craig, S, and Bensoussan Babette E. Business and Competitive Analysis: Effective Application of New and Classic Methods. New York: FT Press, 2007. Print. Hill, Charles, W L and Jones, Gareth R. Strategic Management Theory: An Integrated Approach. USA: Cengage Learning, 2012. Print. McDonald, Malcon, and Wilson Huge. Marketing Plans: How to Prepare Them, How to Use Them. Italy: John Wiley & Sons, 2011. Print. Rolnicki, Kenneth. Managing Channels of Distribution. New York: AMACOM Div American Mgmt Assn, 1998. Print. Saxena, Rajan. Marketing Management 4E. New York: Tata McGraw-Hill Education, 2009. Print. Read More