Marketing Plan for Lewis Road Creamery Fresh Chocolate Milk - Assignment Example

Marketing Plan Marketing Plan for Lewis Road Creamery Fresh Chocolate Milk I. Situation Analysis Lewis Road is a thriving dairy company that is based in New Zealand. The central mission of the company is to provide the best daily product all over the world. New Zealand has a successful dairy farming history. Although the country does not take dairy farming seriously, the company does. Since 1882, the company has been using the technology to reach its consumers (Lewis Road Creamery, 2012). SWOT analysis Strength In New Zealand, the dairy business is not taken seriously by many. Although the country is leading worldwide in dairy farming, the production of dairy products like cream is not in many peoples minds. That is an advantage of the company. The company has an assurance that they can operate under minimum competition from any other company. The reason behind the lack of competition is that there few companies in New Zealand which works on the production of dairy products (Lewis Road Creamery, 2012). Weakness The Company may have several weaknesses since there are many dairy farmers in New Zealand. The company may have a large quantity of milk delivered by the farmers. Therefore, there is the likelihood of the company producing a lot of butter. The consumers of the butter may, therefore, be few despite the company lacking many competitors (Lewis Road Creamery, 2012). Opportunities New Zealand has less number of producers of the butter. That is a significant opportunity for the company since there are few competitors. New Zealand has a large population who can be the users of the company’s product (Lewis Road Creamery, 2012). Threats The Company mighty experience various risks. One of the possible risks the company may experience is an emergency of a new competitor in the market. The second threat the company must be ready about is the market. The market at some time may be down; the prices might fall following the lack of demand for the product. Last threat the company has is a lack of suppliers of raw milk especially during dry seasons (Lewis Road Creamery, 2012). Ii. Marketing goal The Company’s primary goal in marketing is to get more customers of the butter produced and in return get a significant market share. Iii. Marketing strategy Target Customers The Company’s target customers are the citizens of all over the country and outside the country. Therefore, every citizen of New Zealand is the target consumer of butter. The company should deploy several methodologies to reach the target customers. The steps that the company must follow include; Identify the consumers of the product (butter) is first and most crucial step the company should take. The company should not believe that not everybody in New Zealand will be the consumer of the product. Mostly, the marketers think that everybody will be a customer of the product. That is not true at all (Graham, 2013). The second step the company must follow is to determine the formula that will be used to identify the consumers (Graham, 2013). After determining the way to identify the users, the company should evaluate what the customers want from the product or the company. It is not a good thing to produce the product without consulting the consumers on what they want. Customers will give the company the best product they want in the market. Therefore, it is wiser to consult them than continuing to deliver a product that the consumers do not approve (Graham, 2013). The fourth step is, identify the media that will be used to communicate to the consumers. The company should make a wise decision on which channel is best to reach many customers. The company may consider online communication. Sometimes, using a local newspaper is more efficient than using online (Graham, 2013). The final step is to evaluate if you have reached the right consumers of the product. That can be done by now taking the product to the market. The market will provide the company with a good statistics whether right consumers were reached (Graham, 2013). Value Proposition The target customers will desire to the company’s butter for the following reasons; One, the butter that the company produce is of high quality. The quality is the priority of the company. It is better to incur high costs and get many customers than save money and get a small portion of customers (Lewis Road Creamery, 2012). The second reason the butter from the company will reach many customers is that, the price of the product is consumer’s friendly. The butter, the cheese and the milk from the company should be packaged in packets of the various quantities that will cater for all groups of consumers (Lewis Road Creamery, 2012). Another reason that the products will have many consumers is that, the company has made the products to be attractive. The company’s products like milk, cheese and butter are packaged in packages that are user-friendly. The packages are in that the product is in best (Lewis Road Creamery, 2012). Iv. Marketing tactics Product The Company should consider improving the appearance of the product. The package of all the products like milk, cheese and butter should have attractive packages that sell the product. The company should also consider improving the tastes of the product by adding various flavours. It will be important if the company will add the tastes of all fruits that many people love. The flavours that the product can have are strawberry, pineapple, orange taste and many others. The flavour should be to products like milk. Another suggestion is to add them to the packages of various products that they will convince consumers. Some of the them are, milk is good for your health. Price The Company should consider the customers capability. There are various categories that the company should bear in mind. There are consumers who are in a group of the lower class. The group of lower class consumers is the majority. Therefore, as the company produce their product, they should favour this category. The type can be supported by designing small packages that are of lower prices (Mbaskool, 2008). There must be an evaluation to evaluate a company is capable of producing a product that the consumer will welcome. The company should analyse their strength, the weakness they have, the opportunities in the market and the threats ahead (Mbaskool, 2008). When pricing, it is also important to investigate the prices of the competitor’s product. The company should take the action of pricing with reference to competitors prices. The will protect the company from losing their or lacking customers of the product (Mbaskool, 2008). Collaborate with other companies so that they may act as the third party. The collaborator will be selling or advertise the products the company produces (Mbaskool, 2008). One of the most common pricing strategies that are applied by most organizations while introducing new products is low pricing method. Most organization applies the strategy so as to attract customers. The approach also helps in creating a customer base. However, an organization may also opt to set high prices. The strategy is commonly known as market skimming. Firms chose to use such strategies so that they can recover the funds that were used in developing the new product. Another approach that is used in pricing products is known as break-even pricing. Business entity price a product equivalent to the cost that was incurred in its production (Mbaskool, 2008). Lastly, determine any other issue that might affect the market of the product. Those issues may include; the economic issues, the social issue and the political issues (Mbaskool, 2008). Distribution When distributing the product, the consumers should be given the highest priority. The company should, therefore, come up with a way that customers will be reached by the company’s product quickly. The company should ensure that products released into the market reach the customers with limited cost possible. The limited price of distribution will also enable the vendors of the product to sell it at a lower price. That will attract many consumers and in return increases the profitability of the company (Clancy, 2006). Secondly, the company should mobilise all its employees to advertise it all over. The will ensure that the product’s news will reach many people (Clancy, 2006). Thirdly, the brand of the product should be the point of focus rather than the distributors. Let the vendors learn a lot from the company as well as company learn a lot from them (Clancy, 2006). The descriptions in any social media should not be exaggerated. The description should be similar to the product in the market. By that, the company will be able to curb customers from running away because of not been sincere (Clancy, 2006). The primary marketing channel the company should deploy is used f social media like Twitter, Face book and many other available social media. The company should also consider improving the online communication by updating the website. Another way the company can advertise the products is by using the local newspapers. Many people usually read the newspaper every day. If the company have an advert in a page, their many consumers will have knowledge of the company’s product (Clancy, 2006). It is a good idea that the company should hire an external company. The foreign company will be in a position to distribute the products. This foreign company should have enough resources and must be an able to market to products for the local company (Clancy, 2006). Promotion Find out a way to promote the product’s consumers. For example, the company will offer an additional product from the company that is of low price. The company should also consider offering bonuses for various goods. The company has another option; introduce the game to promote extreme customers. The organization needs to carry out a massive promotional campaign for its products to be successful in the market. One of the strategies for conducting an effective promotional campaign is through giving free samples and carrying out a vigorous advertising campaign among others. Advertisements are commonly used among many corporate organizations. With the advancement of technology, a majority of customers have been able to afford electronic devices such as Smartphone, radios and televisions. Consequently, most organizations have opted to use such channels of communication to promote their goods and services. Most organizations advertise their products using such platform since they are accessible to many people. Advertisements are very effective since they create awareness of a product. One product awareness has been created demand is stimulated (Government of Western Australia, 2015). References Clancy H., (2006).Channel marketing strategy: Seven steps for 21st-Century success Government of Western Australia. (2015). Marketing - Promotion Strategy: Small Business Development Corporation. Graham S. (2013). 5 Steps You Must Take To Reach Your Target: Retrieved: Ivkovik E., (2010). Planning Your Internet Marketing Campaign Goals and Strategies Jain, S. C. (1993). Marketing planning and strategy. Cincinnati South-Western Publishing Company 1985. Krampf, R. F., & Heinlein, A. C. (1981). Developing marketing strategies and tactics in higher education through target market research. Decision Sciences, 12(2), 175-192. Lewis Road Creamery. (2012). about us Mbaskool. (2008). 5 C’s Of Marketing.Retrieved: Warren R. (2013).7 Tactics Your Content Marketing Strategy Is Missing. Retrieved :< http://unbounce.com/content-marketing/7-tactics-your-content-marketing-strategy-is-missing/> Wearne, N. (1990). Marketing strategies and tactics.Retrived: Appendices Appendix A: Marketing goals These are the goals that the company PROFITS Expenses Purchasing of milk: $50,000 Advertisements: $3,500. Transport: $4,300. Salaries: $60,000. Tax: $7,500 Total expenses: $125,300 Net Returns: $750,000 Profit: $ 624,700 Appendix B: Expansion Cost Item Cost ($) Location 7,500 Machinery 56,300 Analysts 9,000 insurance 1,500 Total 74,300 Read More