Marketing of Great Foods Inc - Business Plan Example

1. Executive Summary: With the quality of products as a lone ace up its sleeves, Great Foods! Inc seeks a drastic change in its marketing policies, and is poised to enter the overseas market. The basic concept is that all top brands, especially in the food and restaurant sector, have a possibility to thrive in the overseas market. Globalization has opened the doors for an integration of not only culture and values but it has also influenced the less significant aspects like food and dress habits. Top brand fast food restaurants like Mc Donald’s and Domino’s are flourishing globally and they are large scale consumers of our products. Great Foods Inc with its present capacity can manufacture more products to cater to an international market. Thus it is the right is time to explore foreign market and to increase our sale and profitability. 2. Introduction: Great Foods! Inc, founded by Sammy Romers in 1975 in San Antonia, Texas, began its Business on a small scale with its presence confined to the domestic market. After years of struggle, Great Foods! Inc had established an impressive command over local clients by the simple appeal of their products on the taste buds of their customers. The company has recognized the potential of its products to target an international market and now it is seeking to try one of the overseas markets on a trial basis. 3. Country Market Selection: A country’s market segmentation is influenced by the demographic factors such as age, sex and income as well as life style, personality and attitude of people towards shopping experience. Brazil, a prospering country, will be a good market for us to explore. It is a country adapting to the Western culture, and there is a huge potential for our products there. 4. Country Market Environmental Analysis: The marketing environment of Brazil is very much influenced by the culture, change in customer expectation, development in Interaction technology etc. In recent years there has been a sea change in the shopping and spending habits of people. The new trend of huge shopping malls with a variety of entertainment facilities, has opened up opportunities for restaurant chains to do brisk business. Brazilians eat their meals at a leisurely fashion and they often take their children out to dinner. Fast food is a craze among children, and this creates a very favorable environment for our product to sell. With the advancement of technology and development in all the spheres of human life, the marketing condition in Brazil is conducive for our products. Brazil is a good target, because our products are an essential ingredient of most of the traditional and modern food that are popular in the country. The people there have an intense passion for football, and their team’s presence in the international soccer scene is very prominent. As a result, the country has interaction with different cultures. This has changed the people’s attitude and food habits. Further, due to migration of a large number of Brazilians to US and Europe, there is an intense cultural transition in the country. Thus food habits from these countries have an influence in Brazil. This also favors the marketing climate for our products in the country. 5. Competitive environment: There is a correlation between the effectiveness of company’s marketing strategy and the effectiveness of its competitor’s strategies in the same market. This is influenced by factors such as promotional strategy, pricing policy, distribution etc. Great Food Inc enjoys a very good reputation in the domestic market. In terms of quality we have an edge over the other brands and hence this will be an advantage that we can cash upon while entering a new market segment, where consumption rate of tomato products is high. Brazil is one of the greatest importers of tomato sauce in the world as most of the people prefer food like pizzas, sandwich, hot dogs, burgers, cutlet etc. So Great Food Inc should sell at a lower price tag, with quality packing and a variety of range with product differentiation in product when compared to other competitors. The company must also keep a good relation with its environment, especially the potential customers, to maintain a good market control. 6. Target Market: Great Food’s main target is the younger generation of the market segment who slant towards a modern life style and are influenced by western culture. Great Food Inc has to focus its market on this younger generation that values quality of the product, to accrue the maximum market capital. 7. Product strategy: The company must devise a good product strategy and be able to modify its product in accordance with the change in market requirement. The Great Food Inc products, i.e. Mexican sauce a concoction of jalapenos, tomatoes, onion, garlic and cilantro, used for seasoning and as a condiment, and snacks version of the typical sauce which contain cheese, beans and green olives as extra ingredients, have got a very good response in domestic market. The company is also looking forward to the same response from the foreign market. In order to ensure that any possible hurdles are removed in the initial marketing stage, we will introduce a product test to assess and make necessary changes in the product range so that it suits the market environment of the overseas segment. 8. Communication Strategy: Effective communication plays an important role in a company’s product influence on the target market. The product should be introduced in the market to reach the maximum number of customers and an awareness of it needs to be created in the marketing segment for generating good response. So it will be our endeavor to advertise the product through media like newspaper, TV, internet etc. While planning the ad campaigns we will keep in mind the profile of customers in Brazil and produce the ads accordingly. In order to make a definitive impact we will initially conduct a survey through some agency located there and then take appropriate decision on the type and variety of the ads. The country’s deep passion for football can be exploited by involving soccer players in the ads. Sales promotion can also be done by placing ads in grounds and stadiums where football games are organized, where the turnout of spectators will be quite large. The internal communication system with distributors, suppliers etc in Brazil, and the internal communication within the company also needs to be planned. Regular and consistent flow of information is required for effective operation in an overseas market. Receiving feedback and relaying important decisions, changes etc are vital to ensure the seamless flow of operations. Since Brazil is technologically developed this aspect need not cause any worry as we will be able to establish necessary infrastructure there. 9. Pricing strategy: Price plays an important role in the movement of products in the market. In the initial stage the product of Great Food Inc must posses a nominal price. It should neither be too high nor too low. But the organization must try to maintain a steady cash flow to tide over the initial transition from domestic to international market. In the beginning stage of the introduction of a product in the market the company must not aim for profit maximization instead we must look forward to market or sales maximization. In a country like Brazil price of a product does not matter much as most of the people are well settled, and the economy is quite sound with a GDP per capita of $ 4,322. But as a common, in a market, if same products of two companies of good quality exist with different price the people prefer the product with low price. So Grate Food Inc product price must not be higher than the price of its competitor and if the price is lower than the competitor it will lead only to market competition and Great Food Inc will not be able to reap much benefit. 10. Conclusion and last: In a country like Brazil the Great Food Inc company will not find much difficulty in having good market segmentation. Only 20% of the population is below poverty line. As most of the Brazilians love food made of souse materials. There are many migrants settled in USA, Europe etc, or working in western countries. Thus there is an active cultural transition, and consumerism is visible. These conditions favor the launching of our operations in Brazil. Read More