Marketing Plan - Term Paper Example

Marketing Plan 1.0 INTRODUCTION A marketing plan refers to a business manuscript written for the intention of recounting the present market position of business entity and its marketing strategy. In essence, a sound marketing plan is solidly founded on a solid marketing strategy. The General Mills Company will be considered in this study. General Mills is one of the largest producers of packaged food, which include Big G cereals, Baking products, snacks, Frozen foods, meals among others. This essay seeks to study a marketing plan for the General Mills’ National Retail Organization (NRO). A Marketing plan involves five key sections, which include situational analysis, marketing strategy, marketing mix, Financials and controls (Luther, 2001). Consider the following illustration of a marketing plan. This above diagram implies that a market plan is an association that brings the 4ps together in a common platform called target user. The 4ps include Place, product, price and promotion. This is a clear indication that whatever a market plan consists should be interlink the 4ps. 2.0 SITUATIONAL ANALYSIS The General Mills Company’s National Retail organization refers to the human resource force behind all the operations that facilitates marketing and distribution of the company’s products. General Mills has over 12,000 employees internationally. It includes both physical and invisible channels of marketing and distribution (Luther, 2001). The overall essence of this NRO is increased sales. The sales management fat the General Mills concentrates on developing the company’s brands and provide sound management in various categories where stiff competition from rivals in the field exists. Aspects such as markets and competition will be considered in this section. 2.1 Market The recent economic downturn has made the current consumer base to change the grocery-shopping trend. The current customer base includes young singles; younger childless couples and mile aged childless couples. On equal measure, the current target audience includes the married women with children and busy mothers who are busy all the time, in that they cannot find time to prepare an elaborate meal (Luther, 2001). This market target is viable because the foods are purchased for consumption in offices, schools and sometimes at homes. This represents a real market audience. The NRO plays a fundamental role in meeting the demands of this market niche and expanding its market base of existing and new products. The NRO through its strong distribution channels intends to expand its market by advertising the Company’s products. The NRO’s employees in marketing and advertising section should embrace online marketing and ads to increase its customer base (Wood, 2003). 2.2 Marketing strategy Online marketing should be facilitated by online marketing and advertising channels. Tools such as Google, twitter and other online platforms need to be used in a bid to expand awareness and accessibility of the General Mills products. The ads should include the types of products, prices and locations of retail outlets. Sustaining of the current international sales of $3 billion, the superiority of the company’s brands should be strategically put into both the new and existing market niches (Luther, 2001). Equally, the NRO should break down the current barriers to expansive market. For instance, the issue of retail placement fragmentation, for the case of single-serving pre-prepared meal group should be rectified, defined and facilitated. The placement channel is fundamental in sustaining the product market through flow of product information to the market audience in a consistent manner with the current GIS distribution channels (Luther, 2001). However, the company should endeavour in maximizing its economies of scale and bargaining influence. Similarly, other barriers such as positioning discrepancy and undifferentiated product should be checked and corrected. In essence, the NRO should endeavour in positioning its stores and retail outlet in strategic areas that can create a new market and expand the existing customer base. The positioning strategy should be composed of physical, emotional and functional payback. For instance, the NRO should endeavour in making short but informative list of ingredients at the back of the products such that, the customers can read and get a glimpse of the nutrient content before making a decision of purchasing. Similarly, the product should convey an element of consistency to the consumer (Luther, 2001). This should be done through usage of similar messages across all groups. A market base can only expand if the NRO remains relevant to the dynamic needs of the customers. There is increase in number of the single mothers, busy mothers and childless couples who form the market for the packaged food products. This increase indicates the real picture of the market (Marshall & Johnson, 2010). The market is rapidly growing; however, the NRO should engage its partners and distribution channels to capture the ready market. This should be done by increased awareness on the quality, availability and prices of the foods. Additionally, the products should be innovatively packaged. The NRO efforts should be geared towards convincing the market base on the taste, convenience of the foods (Marshall & Johnson, 2010). In addition, these efforts should help in removing the disconnect that exist between the Company and the targeted consumers. The disconnect can only be removed if the NRO realizes that both the self and family-focused consumers have different tastes and mind set about the food products. Consequently, NRO’s knowledge of such diversity through market research serves as the key component in correcting the situation. It is noticeable that, with proper NRO marketing and advertising of the General Mills food products both new and existing ones, will contribute immensely to market sustainability and expansion. This is due to creation of new and appealing perceptions on the products. In addition, the aspect of correcting the current fragmented retail placement serves as the forefront tool of rebranding the Company and products’ image (Marshall & Johnson, 2010). Product branding is a strong facilitator in changing the consumer perceptions on products consequently, the company. 2.3 Competition The US and international market for the packaged food products is a congested niche in the overall trading. Several companies across the globe engage in manufacturing of diverse brands and kinds of packaged foods. However, the closest competitors of the General millers include Netsl, Mondelez International, Inc., Tyson Foods, Inc among others; have gone a step ahead of embracing superior store brands (Marshall & Johnson, 2010). This aspect of store brands is fundamental in creating superior appeal of the product brand among the consumers. The rivals in this industry have taken advantage of the NRO’s weakness to rebrand its stores and slowly they are taking over the market base from the General Mills. As a matter of significance to the continued market sustainability and expansion, the NRO should embark on store branding across all its retail outlets in a bid to increase product appeal. To beat the competitors in consumers’ acceptance, the NRO should be endeavour in leveraging a single brand across all its multiple kinds (Marshall & Johnson, 2010). This fundamental component contributes to the overall image and consumers’ perception on products through consumer satisfaction with store brand. This encourages purchase of the store brands’ product. The General mills NRO should make a point of marketing a line of simple but limited ingredient whole foods across its multiple classes. For instance, the Pillsbury Simply line of set to bake cookies has its packaging simplified with the product’s image and natural ingredients. This provides room for the product line to experience large brand presence (Marshall & Johnson, 2010). On the same regard, the pricing aspect is fundamental in keeping the competitors rate of growth checked. A food market of packaged food products is price sensitive. The NRO should ensure that pricing plays the role of product differentiation in the market. This implies that, the floor pricing should be closely comparable to the GIS current brand, whilst the ceiling price should be the soaring end competition (Wood, 2003). 3.0 MARKET MIX FACTORS These ones include the factors that influence the market of the General Mill’s products. Primarily, the NRO should consider creating a super brand of products’ packages. There are numerous kinds of products in the market consequently; this serves as a step towards attracting the consumers’ appeal. It is imperative to note that branded packages act as a fundamental attribute of product differentiation (Marshall & Johnson, 2010). The product is easily differentiated from the rest through its superior branded packages and this increases the consumer perception. On equal measure, the NRO is required to provide high standard of services to the client be at either the retail outlets or any other market platform to continually differentiate the products produced by the General Mills from the rest (Wood, 2003). This is a step towards increasing customer awareness of the General Mills superiority on its products. For the case of pricing, the NRO should ensure that, its prices are comparable with those of the competitors and the universal market prices. To keep watch on the competitors’ price trends, the NRO should apply the competitor Based Pricing Model to determine the exact price positioning of the General Mills Company (Marshall & Johnson, 2010). This model will ensure that the General Mills products are not sold below and above the standard market prices. This enables that company to position itself close to the market price standards. However, for the case of the new market or expanding the existing one, the penetration-pricing model should be used in order, to meet the demands of the new consumer base. A market research on the needs of the new consumer base in terms of taste, preferences, quality, ingredients and pricing should be carried out to ensure production and pricing of products in tandem with the needs of the consumers (Wood, 2003). 4.0 DISTRIBUTION CHANNELS These are the gateways through which the products pass through from the retail outlets or stores to the consumers in the market. It is evidence that, strong and efficient distribution channels will serve as a significant aspect in increasing the sales of the Company. NRO should revisit its supply channels and modify them to accommodate the diverse needs of the client base. NRO should invest in creation of sound channels, which can distribute the products across the vast market (Marshall & Johnson, 2010). To ensure direct marketing, which is cost effective, the NRO should embrace the direct channel configuration. This kind of channel does not have intermediaries, such as subcontractors. These intermediaries are expensive and this makes the products meant for the consumers expensive. Moreover, in case of indirect configuration, NRO should embrace its own merchants as intermediaries; this will reduce the overall cost of distributing products through diverse channels (Wood, 2003). For the case of advertising, the NRO should embrace a sales promotional strategy such as public or private. The NRO being a body that develops customer-employee relationship should embrace use of digital marketing. For instance, the social media strategy should be applied to expand the online distribution channels, create new market bases, or embrace present customer base (Marshall & Johnson, 2010). Various interactive platforms such as twitter and paid content platforms should be applied to integrate the functions of the company in a bid to increase the functionality of the distribution channels. At all times, the NRO should endeavour making the distribution channels active, reliable and efficient to operate. This increases customer appeals, consequently creation of a market niche (Northwest Territories Tourism, 2000). In essence, the supply and distribution channels should be active, functional and accessible for customers at all times to ensure bridging of the gap between the General Mills and the rivals. Both online and physical channels should be embraced (Northwest Territories Tourism, 2000). At the end, the superiority and activeness of these channels shall increase the consumer needs. This will increase of the consumption of the products. 5.0 FINANCIALS Money and annual projections form part of the company’s financial agenda. The company should inspect its financial records and statements, to check that the company is making profits. The NRO should endeavour in ensuring that there are controls across all the sections of the market. Financial controls are fundamental in ensuring that the company is making progress. The controls should be done right from the inventory, sales, purchases, stores and any other section that allows flow of money (Northwest Territories Tourism, 2000). The financial controls meant for the company growth and not for individual expansion are significant in the restructuring of the distribution channels. Such processes ensure that, the company is struggling to sustain its expenditure low such that, they it can make profits. It is imperative to note that, the overall objective of any Company is to make changes in response to the ever-dynamic needs of the customer base. The market dynamism requires implementation of market plans such as the one under consideration. The General Mills should set aside a certain amount of money for the implementation of the market plan. The success of a company such as General Mills requires a considerable amount of money for implementation of a market plan. Let us see the benefits that a company can reap from implementation of a market plan. To start with, if this market plan is implemented, then The General Mills Company stands to improve its market size (Northwest Territories Tourism, 2000). This is because, with the full implementation of this market plan, the possibility of increasing the existing consumer base is high. In addition, there chance of creating a new consumer base through advertisement of the company’s products to the possible consumers (Wood, 2003). On the other hand, financial spending on quality control and production resources play a significant role in defining the company’s objectives in relation to production of high quality products. More spending is needed in the distribution channels. There are two kinds of channels namely direct and indirect. Most companies embrace both direct and indirect channels. For the case of the General Mills Company, both direct and indirect distribution channels should be used (Hopkins & Conference Board, 2001). The distribution channels should be well established to ensure that, all the existing consumers are reached. In addition, the distribution channels are mandated to open up new market niches. It is expensive to reach a given new market through a distribution channel. However, it is the only sure way of expanding a company’s operations. The NRO should ensure the implementation progress is checked to ensure the set objectives are made (Wood, 2003). Over and again, the NRO should be counter checking on the progress of the competitors to ensure that, no big gap in terms of sales, market size, efficiency of distribution channels and consumer appeal towards the company’s brands exists (Hopkins & Conference Board, 2001). The constant checking enables the company to sustain its competitive edge with its rivals. In addition, General Mills Company will be in a position of ear marking the challenges and success of the implantation process of a market plan. At this stage, the NRO is encouraged to embrace diverse marketing metrics for progress cheeking. Some of them include penetration, market share, cannibalization rate, customer lifetime value, promotions and pass through, return on marketing investments and click through rates. These marketing metrics are beneficial in determining the rate of implementing the market plan under consideration (Hopkins & Conference Board, 2001). For the future trends of the company, it is advisable for the General Mills NRO to use forecasting methods such as time series analysis, statistical demand analysis and market test to forecast the real picture of the market in future (Northwest Territories Tourism, 2000). CONCLUSION In conclusion, this marketing plan for the General Mills Company depends on four primary factors for its success. They include NRO’s desire to meet the market demands by rebranding through packaging, addition of taste and creating more consumer appeal on the products. This ensures sustainability of the already existing market and creation of a new market. On equal measure, the NRO should endeavour in strengthening its market strategy (Hopkins & Conference Board, 2001). This can be done by breaking down various barriers to such as fragmented placement channels and positioning discrepancy. The General Mills NRO requires positioning of its products strategically within the access of the consumers. In addition, the NRO should capitalize on the economies of scale in a bid to compete stiffly with its competitors who do not enjoy such economies of scale (Luther, 2001). Finally, the mix factors, distribution channels and financial controls should be well coordinated to ensure progressive achieving of the Company’s objectives. References Hopkins, D. S., & Conference Board. (2001). The marketing plan. New York, N.Y: Conference Board. Luther, W. M. (2001). The marketing plan: How to prepare and implement it. New York: AMACOM. Marshall, G. & Johnson, M. (2010). Marketing Management. New York, NY: McGraw Hill Northwest Territories Tourism. (2000). Marketing plan. Yellowknife, N.T: Northwest Territories Tourism. Wood, M. B. (2003). The marketing plan: A handbook. 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