Marketing Strategies of Express Vending LLC - Research Paper Example

Marketing Plan of Express Vending LLC AFFILIATION: Marketing Plan of Express Vending LLC Background of the Company Express Vending LLC is a family business that has been set with the aim of providing high quality and innovative vending machines and food and beverage equipment for commercial entities that will be imported from Italy. The company will penetrate in the vending industry by introducing unique and technologically advanced vending equipment; the initial routes that will be used by the company comprise of the Central and Southern regions of Florida. The main aim of Express Vending LLC is to be the leader in introducing complete range of the best quality and innovative restaurant equipment and vending machines that will fulfill the needs of the customers. Express Vending LLC is a privately-held company in Florida that has a head office and a small warehouse in the area of North Miami Beach in Florida. There are four investors of the company i.e. Jessica Smith, Jones Patrick, Margaret Florence and Michelle D’Souza. Jessica Smith and Jones Patrick are the co-founders who have both an experience in the vending machine industry and have the expertise in running an entrepreneurial business. Margaret Florence has proficiency in the financial industry as she has worked for two well-known financial institutions in the last ten years and Michelle D’Souza will bring her marketing, operational and management skills to the company for ensuring that the business operations are smooth and effective. Once Express Vending LLC is successful in its local market, it will expand into the European market as it is vast and has a lot of opportunities for growth. Currently, the European market has a limited number of companies who are offering their customers reasonably priced machines and equipment for their restaurants; hence, the company will target those customers who are looking for innovative and top quality vending machines and equipment for the food and beverage at prices that are affordable by them. Strategic Mission Statement “The mission of Express Vending LLC is to be the dominant company in both the vending machine and the restaurant equipment industries by providing easy access to a wide range of unique, high quality and innovative products at reasonable prices. We believe that we will be successful in meeting the needs of our customers by developing close contacts with them so that we have cordial relations with them. Express Vending LLC will earn adequate stream of profits from its operations so that stability can be sustained and even finance the future growth avenues. We will ensure that all our business operations are conducted in an ethical manner and the value is added to our community by maintaining a familiar and friendly environment.” Vending Machine Industry The growth rates of the vending industry and the restaurant industry are increasing at an accelerating rate; the primary reason for such robust growth are the changes happening in the workplaces and workforces which are causing workers to have the meals that are easily accessible (Gerdees 2011). As majority of the customers are eating away from home, it is expected that they will demand more for best quality products. Almost all the vendors are offering a complete range of packaged frozen meals that are placed within their machines. According to the Vending Machines (2003), the vending industry of U.S. is divided into three segments i.e. manufacturers (organizations manufacturing machines for selling to the operators), operators (organizations that are buying and placing the vending machines on their respective routes, sell the products and do servicing of the machines) and distributors (organizations that act as intermediary between the operator and the manufacturer as it supplies the market with the products and machines for various operators). Likewise, food and beverage industry comprises of the food and beverage establishments, supply houses and suppliers (Smith, 2012). Express Vending LLC has identified two major product lines for its various markets i.e. the vending machines and the food and beverage equipment. The products of the vending machine line comprise of Perfect Sandwich Machine, Fresh Orange Juice Machine and Multi-line Dispenser. The products of equipment line include espresso makers, fresh juice squeezers and toasters. All of these products are developed from highly innovative and up-to-date technologies that give the company a competitive edge in the market. Hence, its market segment comprises of restaurants, hotels, top ranked food services companies and equipment supply companies. Target Market Express Vending LLC will market its vending machines to three segments i.e. end users, distributors and branded juice companies and sandwich manufacturers. The end users are the operators who have their own vending routes and are wishing to expand their product ranges; this category comprises of the large food service companies who are engaged in the vending operations as part of their complete business. However, distributors are the companies who supply the operators with various machines and supplies for their operations and the customized machines will be offered to the third segment i.e. branded juice companies and sandwich manufacturers to meet the customer’s requirements so that they can brand the company’s machines with their product ranges. For equipment business, two markets will be targeted; one is the equipment supply companies who are the large sized supply houses offering a wide range of equipment to the food and beverage industry and other is the restaurants and hotels market that are the end users who will be provided top quality products and equipment. SWOT Analysis of Express Vending LLC The SWOT analysis of Express Vending LLC gives a brief snapshot of the company’s internal and external position that helps in determining its positioning in the market: Strengths The major strengths of the company are as follows: 1. Our company has strong and cordial relations with the manufactures who help us in fulfilling the needs of customers. 2. The product line offered to the customers is extensive and there is a huge range of selection for our customers. 3. Every member of the management team has relevant skills and expertise to ensure that the company is able to create a positive image in the market and make successful progression in such a competitive environment. Weaknesses Some of the weaknesses that need to be addressed are as follows: 1. Our company is new in the market so there is a lack of brand awareness; we will have to increase our efforts to make our brand recognized in the market. 2. There is a need of taking debt so that the initial capital requirements can be fulfilled. 3. We are targeting an entirely new market i.e. innovative and unique range of products for end users; it has less visibility in the U.S. market. Opportunities Some of the most attractive opportunities for the company are: 1. We are entering in a growing market which means that we can extend into international markets after successfully capturing the local target market. 2. The distribution network in the vending industry is too strong so expansion into various regions can be easily done after meeting the demands of initial targeted region. 3. Although the economic recession is happening globally but the food market is still less immune; entering the restaurant industry is an appealing option for the company. Threats The threats faced by the company are: 1. Since the market is growing, many competitors can enter this industry and it can get competitive in future. 2. The advancements in technology are happening at an accelerating rate and it can cause a rise in our manufacturing cost; hence, the capital cost is high for our company. 3. The preferences of consumers are changing and they are looking for healthy substitutes that can drive them away from readymade food; hence, it can pose a threat to us as we will have to ensure that we meet our customer’s requirements on an ongoing basis. Market Position Express Vending LLC will position its brand as an importer of high quality, high-end, unique and technologically advanced vending machines and commercial food and beverage equipment. In order to achieve the desired position in the market, the company will leverage its competitive edge by focusing on following two effective tactics: 1. The company will take advantage of being the first company to introduce such highly innovative products in the market. With the help of this position, the brand image will be solidified and the desired image will be successfully created. The company will be able to get attention of the customers and will ensure that customer’s demands will be met in a flexible manner. 2. Other products of the company will have features which will help it in gaining competitive edge in the market in addition to the design features. The pricing of products will be done on the basis of competitive pricing so that the customers are provided top quality range of the machines and equipment. Hence, the market for product will be positioned for customers who are looking for innovative and high quality vending machines and food and beverage equipment at affordable prices. The main aim of company is to portray the image of its product range as highly durable and reliable which has been developed with latest technology. References Gerdees, R.M. (2011). Vending and the Technological Revolution: Delivery Systems of the Future. Retrieved October 19, 2012 from http://www.balancedforlife.net/pdf/About%20Vending.pdf Smith, G. (2012, March 3). Vending Machine Operators in the US Industry Market Research Report. PRWeb.com. Retrieved October 19, 2012 from http://www.prweb.com/releases/2012/3/prweb9248281.htm Vending Machines (2003). Vending Machines: US Industry Study with Forecasts to 2006 & 2011. Retrieved October 19, 2012 from http://www.freedoniagroup.com/brochure/16xx/1637smwe.pdf Read More