Marketing Planning and Strategy - Assignment Example

Marketing plan and strategy: of Table of content Executive Summary A market plan is necessary for all organizations anticipating growing to greater heights. Market plan is always detailed. Goal settings, analyzing the market situations, market planning involves creation of market strategies, the monitoring of available resources and allocation of the resources. Market plan is a process strategized to help the organization grow, through the satisfaction of customer’s needs and wants. Consequently, the plan assists the organization in profit making. Market planning incorporates two crucial processes namely, marketing mix and market research (Wehrenberg, 2012). A successful plan can range between one to five years. Management of an organization uses the strategized plan to achieve the goals and objectives of the organization. Management and other organization’s staff can refer to the plan to strategize on the business processes and keep in line with the market plan (Hiebing, 2012). Incorporation of ideas in the plan assists in overcoming the organization’s challenges. Fully addressing of challenges experienced in the organization ensures their elimination. Customers’ satisfaction is the backbone to an organizations success (Mullins, 2013). A detailed research on the competitors is necessary in the market plan, as the organization is able to decide on the strategies to incorporate to outdo it in the market. There is addressing of the strengths and weaknesses of the organization. Perfection of the strengths is necessary while correction of the weaknesses is also indispensable for the organization (Mullins, 2013). The plan must be goal oriented, clear, and reasonable for it to succeed. 2. Situational Analysis Market Summary A real world organization, which has been successful in using market mix, is Stony field Farm organization. Through this plan, Stony field Farm has outdone other organizations in the same market and emerged successful. Its main products include yoghurt and milk products. Erik Drake is the Executive president of this organization (Wehrenberg, 2012). Customer relationship is paramount to the organization in order to achieve success. Media, social sites and websites are useful for maintaining for a good public relation. Erik Drake in Ad Club’s CMO Breakfast Series boasts that the organization has a large market. The organization majors on quality and perfection in their services to outdo their competitors. Event marketing and partnership is a major marketing strategy used by Stony field Farm organization (Mullins, 2013).Additionally, SWOT analysis Stony field Farm has utilized the SWOT analysis to reach greater heights (Hiebing, 2012). SWOT is initials representing; one is the strength. Second are the weaknesses of the organization. Third are the opportunities available. Last are the threats. A marketing plan must incorporate SWOT analysis if it has to succeed. Stonyfield Farm gets a successful market niche curve using the SWOT analysis. Talents are natured and utilized maximally for the success of the organization. There is maximization and exploitation of available resources to the success of this organization. Competitor analysis Stony field Farm compares its strengths with those of its competitors. Consequently, this assists it in identifying its weaknesses. There is elimination of the factors leading to lose of sale. Stony field Farm has grown much since it takes every possible opportunity and utilizes it maximally (Finch, 2010). Technological changes, government policies, local events, and patterns trending are the most important sources of opportunities which Stony field Farm uses (Kotler, 2012). Stony field Farm ensures that it is far ahead of its competitors that offer similar products. Stonyfield Farm has a variety of products of which the customers can choose. Its products include; milk, organic yoghurt, smoothies and frozen yoghurt. Quality products produced at a fair price attract many customers. Products have many flavors, color, and tastes which gives customers a wide variety to choose. Consequently, competitors try to lower their price in attempt to outdo Stony field Farm to no avail. The main competitors of Stony field Farm are the Unilever N. V, Dean Foods Company and General Mills, Inc (Kotler, 2012). Product offering Product offering ensures that allocation of all products effectively. Making proper decisions helps to prevent loss of customers. In case Stony field Farm makes wrong decisions, customers tend to divert and purchase the products from the competitors. Hirschberg, the president of Stony field Farm ensures that products meet the expected quality. New products are effective for a product offering. Hirschberg ensures experts come up with new products with time. Furthermore, promotion and advertising of the new products helps increase sales. Stony field Farm key to success depends on their strengths. Keys to success The management of Stony field Farm majors on the organizations strengths in out doing their competitors. The organization is competitive as it offers quality products compared to its competitors. The market plan is comprehensive of all the strategies incorporated in the organization. Additionally, customers must have satisfaction once they purchase Stony field Farm products. Stony field Farm mission commits it to healthy products, healthy people, healthy business, and a healthy planet (Mullins, 2013). Gary Hirschberg saw the opportunity of yogurt production as the perfect business for the company. Critical issues Challenges are the critical issues that affect Stony field Farm. Sustainability and customer satisfaction are the greatest challenges that affect every entrepreneur. However, Gary Hirschberg ensures attention to all customers’ grievances. Additionally, hard work and determination to produce high quality products has been successful through sustained efforts. Numerous innovation and invention has helped overcome the challenges faced by Stony field Farm. The staffs also have good values and belief in overcoming any forthcoming obstacle for the success of this organization (Mullins, 2013). Pricing Stony field Farm is very careful on its pricing policies. The products too are of very high quality hence attracting more customers. Our company ensures that prices set are efficient and will not be to the disadvantage of the customer. Additionally, fair prices along with high quality products ensure that the organization gain more customers. Losses occur in cases where there are poor pricing. Moreover, high pricing scares away customers, which may lead to a loss in the end. Products at Stony field Farm is set at fair prices to attract more customers (Mullins, 2013). 3. Marketing Strategy Mission Marketing strategies decides the plans in which the organization should incorporate to achieve its goals. Stony field Farm ensures that it has laid down its entire plan and adheres to them maximally (Wehrenberg, 2012). The organization’s mission is to achieve ultimate success. Stony field Farm mission is clear and precise. Its mission, even before the yoghurt industry was to provide a healthy environment to the people. It is crucial for all the staff members to ensure that they adhere to the organization’s mission to achieve success. Efforts made by Samuel and Gary are evident as they aimed for an environmental and family friendly organization (Mullins, 2013). They had many aims for the organization in which, all were important if the organization was to succeed. Stony field Farm aimed at providing the highest quality products. They also aimed at providing all natural products, as this is healthy. The employees are able to advance their careers to greater heights. They get the chance to learn more skills. Challenges did not discourage the organization from achieving success. Improper decisions lead to loses, but in the end, use of proper strategies eliminates these challenges. At a stage, Stony field Farm produced garden salad flavored yogurt with the hope of gaining much customers. Customers did not love it. Consequently, the organization eliminated it from the market. Currently, the organization has been able to achieve its mission by providing healthy products to their customers. Erik Drake was careful in achieving the mission of this organization. Their business is health and environmental friendly (Kotler, 2012).Stony field Farm market objectives are set and all staff work towards achieving them. Its main objective is to cut on the extra costs to increase the profit margin. Samuel Kaymen who was the former engineer started the organization as a teaching center named The Rural Education Sector. The organization started from scratch with a loan but since all the participants stuck to the objective, they achieved success (Kotler, 2012). Their main objective was to renovate new products that would have the bottom line profit. They spent many long hours working uplifting the organization and achieve success. They did all they could to promote their products. Marketing Objectives Health was paramount to this organization and was a main objective during the production process. New products too such as frookwish were established. Stony field Farm came into agreements with customers in decision-making. They also switched from plastic containers to pint containers which would decompose fast hence creating a more friendly and healthy environment. Wood Turner, the current Vice President of Sustainable Innovation in Stony field Farm is proud that they were able to cut $18 Million costs (Finch, 2010). Proper work division and specialization has also assisted the organization in fulfilling their objectives. Market positioning includes influencing the public and the customers to view the products in a different positive perception compared to other brands that are available in the market. Market positioning is of importance since it attracts more customers to the organization. Taste, color and other product differentiation method are most useful in this case. The ideas must be clear and unique to attract the customer’s attention (Brymer, 2009). Customers prefer efficiency and good taste at fair prices. The organization ensures that it provides best flavors at a fair price. Stony field Farm establishes all the opportunities available in the market and utilizes them to attain success. Segmentation and market research is the best way to identify opportunities (Finch, 2010). Market problems are also addressed efficiently eliminating them to achieve organization objectives and goals. They are all attainable through competition, distribution, promotion, price, and packaging. Positioning targets impressing the customer to like a specific product and purchase it. Brand positioning is much more effective in the end. Understanding and comparing how the competitor is faring is the most important thing with product positioning. Marketing mix (4 P’s) Marketing mix has four Ps. It is usually termed as a marketing strategy. Prices of the products are represented by the first P. place, is represented by the second P. Thirdly is the promotion of products. Finally, we have the product itself that the organization provides to its customers (Brymer, 2009. The organization must establish the right products that would lead to its success. Identification of the proper product is possible through the market research. Stony field Farm is efficient in this since it establishes the best products that most customers demand. Yoghurts must have a good taste for customers to like it. Stony field Farm ensures that all products are available in stalls and markets where the customer can easily access them. Identifying the strengths of competitors is also necessary to plan on how to outdo them. Proper distribution channels are also essential if the organization is to succeed. Delivering of products is convenient where many customers can access them. A proper supply chain management is paramount if the process is to succeed. Example, Stony field Farm has many outlets all over the world where delivery of products that customers and other businesses can purchase them easily (Wehrenberg, 2012). Price of products heavily depends on the products value. Costly products have higher value compared to the lower value products. Discounts are also attractive to customers. Products must also have a fixed or constant price in the end. Consumers at most times are price sensitive and any change in prices may affect their purchase a lot. It is also very important to compare the prices of products to those of competitors (Wehrenberg, 2012). Product positioning Product promotion involves attracting the public to gain more customers. A cost effective product promotion method is necessary for Stony field Farm to maximize their profits. Reaching the target market is necessary for the organization to reach many customers. Proper timing is also necessary for Stony field Farm, so that the organization can reach its target group. Consequently, it is important to identify the strategies used by the competitors. Stony field Farm advertises and promotes every new product in the market. Promotion of every new brand product takes place so that customers are able to gain knowledge about it and purchase it if interested. Other ways of advertising include using the television, use of radios, press or even the billboards (Brymer, 2009). Advertising and product promotion is costly in the end but very advantageous to the organization. Marketing research Market research involves the process through which the organization is able to communicate and maintain contact with customers. Stony field Farm organization knows the issues affecting the consumer through this method. Feedback is available once a proper research method is incorporated. Furthermore, it is advantageous to the organization since they are able to rectify any problem with their products (Finch, 2010). Qualitative and quantitative data are gathered and addressed from the research done. Elements of the market mix have a great effect on the consumer’s behavior. Consequently, this calls for a marketing research whereby there is an assessment of the marketing elements (Wehrenberg, 2012). All the information gained through the process is essential in decision-makings and problem solving in Stony field Farm organization. Stony field Farm conducts market researches to identify the problems and issues affecting their customers (Brymer, 2009). Through this, there are proper decisions made and correction done perfecting it to the customer’s tastes and preferences. It is very important since it leads to customer’s satisfaction increasing sales. In the end, profit margin increases steadily. 4. Financials Sales Forecast This financial analysis is Stoneyfield market target for one financial year: from January to December. The sales includes three products offered by Stony field Farm; frozen yoghurt, milk, organic yoghurt, and smoothies. Stony field organization ensures that they estimate the sales forecast to plan for the future (Boone, 2014). Sales forecast keeps them on toes to achieve their targets. In this case, stony field estimates purchases all their products in the year. Selling prices of products per unit are determined and calculated and in the end, multiplied too the number of units sold. Eventually, it leads to the comprehensive amount of total sales sold during the estimated period. It is important to estimate the sales according to geographical regions to be more accurate. Targets for a certain geographical region are set. Table 1 shows the targeted sales by Stony field Farm in the year 2013. NB; All the measurements are in Million Littre. Table1. Targeted sales by Stony field Farm in the year 2013. MONTH FROZEN YOGHURT MILK SMOOTHIES ORGANIC YOGHURT JANUARY 100 342 394 234 FEBRUARY 134 368 420 246 MARCH 142 400 462 321 APRIL 164 437 485 354 MAY 190 495 512 399 JUNE 201 530 543 423 JULY 240 583 589 483 AUGUST 279 600 593 541 SEPTEMBER 300 623 632 581 OCTOBER 342 650 672 643 NOVEMBER 398 690 703 700 DECEMBER 420 733 743 788 TOTAL 2910 6451 6748 5713 Chart 1.Target sale of milk in the year 2013. Chart 2.Target sale of smoothies in the year 2013. Chart 3.Target sale of organic yoghurt in the year 2013. Chart 4.Target sale of frozen yogurt at the year 2013. Bar graph1.Total target of all commodities in Stony, field Farm at the year 2013. Profit targets Profits calculation is by subtracting all the expenses incurred during the year. If the Farm wishes to gain more profit, maximization of costs is important. Table2. Total estimated costs by Stony field Farm at the year 2013. MONTH RAW MATERIALS $ Millions TRANSPORT $ Millions WAGES $ Millions FIXED COSTS $ Millions JANUARY 243 121 155 77 FEBRUARY 257 123 155 77 MARCH 263 124 155 77 APRIL 271 126 156 77 MAY 279 131 154 77 JUNE 300 136 153 77 JULY 321 131 156 77 AUGUST 329 139 157 77 SEPTEMBER 331 145 156 77 OCTOBER 348 147 152 77 NOVEMBER 359 152 156 77 DECEMBER 361 155 151 77 TOTAL 4003 1630 1856 924 Bar graph2. Target estimated cost for Stonyfield Farm at the year 2013. Table3. Total estimated profit target for Stony field Farm at the year 2013. MONTH FROZEN YOGHURT $ Millions MILK $ Millions SMOOTHIES $ Millions ORGANIC YOGHURT $ Millions JANUARY 523 603 532 562 FEBRUARY 534 613 539 593 MARCH 545 634 594 639 APRIL 563 654 606 654 MAY 573 673 628 681 JUNE 582 730 687 712 JULY 592 773 702 732 AUGUST 642 791 720 777 SEPTEMBER 673 803 732 821 OCTOBER 734 863 783 834 NOVEMBER 802 892 843 987 DECEMBER 850 903 963 1002 TOTAL 7613 8932 8329 8894 Bar graph 3. Total estimated profits on each commodity produced in 2013 by Stonyfield Farm. The profit targets are also important to every organization. Profit projections must be high to achieve ultimate success for the organization. Forecasts however must be realistic. Some may be set too high above making them difficult to attain. Consequently, profits depend with the amount of sales made within a specific period. A perfect sales planning takes approximately a year in most organizations. Stony field Farm organizations have their sales forecast targeted for one year (Kotler, 2012). Profit targets are calculations targeting the amount of profit within a particular period. Profit targets motivate all employees in the organization to work towards attaining the set profit target by the management. Profit targets must always aim higher every time. For an organization to grow, the profits margin must increase with time. Successful organizations employ their best skills in ensuring success of the organization (Wood, 2011). 5. Controls Stone field Farm organization will employ budget tactical activities for implementing the plans of the organization. The budget tactical activities used must focus on the five market structures addressing the wants of customers. These five market factors to be addressed include pricing, distribution performance benchmarks, promotion, product configuration, and plans for changing any of the parameters if performance measures are not met. 1 Pricing Pricing of all products in Stonyfield Farm will be determined accordingly. Development of a price strategy will enable the company decide on the products pricing. Stony field Farm will be very careful in addressing the pricing strategies to be implemented. Customer’s decisions must be considered since they are the backbone to the success of the organization. Stonyfield Farm will investigate on the amount that customers are willing to pay for each product. High pricing of products will be avoided to prevent loss of customers. The company also strategizes on how much they need for overheads and other costs. Pricing by Stonyfield Farm must put into consideration the profit margin that they anticipate to get during the year. This also forces the organization to reduce the payment costs incurred in achieving milestones. 2 Product configuration Product configuration is a process through which the organization is able to enquire from the customers the type of product they need. Stonyfield Farm will utilize this in ensuring that they provide the best services to their customers. Customers are able to rely on Stonyfield Farm since they get the right products they require from the organization. Stonyfield Farm will ensure that this is possible through the internet and other computing networks. Customers will be able to design their products according to how they suit them. The organization also plans to hire more market researchers with the motive of understanding the customer’s behaviors. Product configuration will enable Stonyfield Farm increase their sales steadily over a short time. The customers will also be satisfied since most of their product specifications are met by Stonyfield Farm. 3 Promotion Promotions are used by Stonyfield Farm to ensure that the customers get the information of every product. Stonyfield Farm plans to invest much on product promotion since it attracts many customers. Product promotion is carried out in many ways. Stonyfield Farm opts to use every method in their promotion activities. These processes to be used include the promotions, direct marketing, advertising, and others such as sales tactics. The processes however will not increase the costs of Stonyfield Farm expenses to a level where the profit margin will decrease. The right audience will be targeted for the product promotion to be effective by this organization. In cases where Stonyfield Farm has discounts on their products, proper advertising and proper product promotion strategies are used. Seasonal pricing should be promoted through media devices. Stonyfield Farm plans to major on television advertising since it is effective. Television advertising also incorporates audio and visual advertisement, which will be appealing to most prospective customers. 4 Distribution performance benchmarks Benchmarks are used by Stonyfield Farm to measure the average performances. The supply chains used by Stonyfield Farm in distributing their products must be accessed and evaluated with time. Stonyfield Farm uses a series of benchmarking in ensuring a good performance in the distribution process. Supply chains are also improved since benchmarking identifies the weaknesses in the processes. Benchmarking the supply chains of Stonyfield Farm assists the organization in perfecting them. Distributions of products to their destinations are made efficient to gain customers’ trust. It will ensure that the path to be followed is effective. Products much reach the customer in time. 5 plans for changing any of the parameters In case the targeted performance measures are not met, Stonyfield Farm decides to plan changes to these parameters. Plans must satisfy the desired performance of the organization. Stonyfield Farm plans to gain profits hence no mess of plans is allowed. Project managers are responsible in ensuring that the processes being undertaken are in line with the plans. Time is also an important factor to consider while planning. Stonyfield Farm ensures that the timeline milestones are perfectly attended. All activities that do not lead to the achievement and completion of the milestones targeted by the Stonyfield Farm organization are prevented. Milestones Milestones are specific activities targeted by an organization within a certain period. Stony field Farm organization outline their milestones and strategize on how to achieve them. Stony field Farm staff through hard work ensures the achievement of these milestones in the end. A real deadline for the budget is set and all the activities to be completes within the scheduled time. The milestone table, as shown below this section shows the activities strategized during this period. Budgetary constrains must also be addressed while determining the milestones in Stony field Farm. It also addresses the marketing challenges by using controls such as milestones. The controls put in place in this organization accesses the marketing plan of Stony field Farm. There is proper handling of all the milestones in Stony field Farm organization, which leads to the success of the plan (Wood, 2011). The organization pays special attention is necessary to the milestone since it is in the last stages of the development and business plan. Controls evaluate and monitor the milestones of Stony field organization. Combined with Program Evaluation and Review Technique, the milestones enhance perfectness in the organization’s plan. Implementations and timelines Stony field the project manager creates an implementation timeline plan. It enhances the smooth flow of activities within the organization. Implementation plans ensures accuracy and perfects the plan. Proper implementation avoids confusion in Stony field Farm organization in carrying out the specific projects designed in the plan. Implementation of these timelines is very useful to ensure that all the members of the organization know when to achieve certain milestone (Kotler, 2012). Timelines provides a proper time schedule to achieve these milestones at the required time. The implementation timeline decides the personnel responsible for all the activities. Stony field the project manager decides the person in charge of the overall plan. The implementation plan also establishes guidelines followed in the plan and always track the progress of this plan being implemented by Stony field Farm. 12 months Milestone Timeline for Stony field Farm. ACTIVITY START END NOTES Market planning 2/1/2013 28/12/2013 This must be achieved before the end of year 2013 Products quality improvement 2/1/2013 3/5/2013 Quality of products are improved Advertising 4/5/2013 6/7/2013 Advertising of the product is done Staff training 7/7/2013 7/9/2013 Programs to train staffs Website online 8/9/2013 25/10/2013 Online advertising for the improved and new products Speaking advertising 26/10/2013 21/11/2013 more advertising Progress analyzing 22/11/2013 26/12/2013 The progress of the organization is analyzed Press release 27/12/2013 27/12/2013 A well-prepared and detailed press release is made. Project End 28/12/2013 Completion of project 6. Summary Conclusively, a market plan benefits the organization much. Stony field Farm is an example since they have their market plan. A Stonyfield Farm detailed market plan leads the success of organizations. Proper positioning of the products of every organization leads to increased sales of the products (Finch, 2010). Segmentation, which involved division of consumers into classes of same needs, is also important for a successful market plan. Market targeting and product promotion targeting is essential for increased sales of the organization. The four marketing mix Ps are fulfilled. The plan must be real and the objectives must be achievable. Through determination and persistence, the plan works leading to the success of the organization. However, for the plan to be successful, it must be detailed, comprehensive, and realistic in the long run (Finch, 2010). References Boone, L. E. (2014). Contemporary Marketing (16. ed., international Ed.). S.l.: South-Western Cengage Learning. Brymer, C. (2009). The nature of marketing: marketing to the swarm as well as the herd. London: Palgrave Macmillan. Finch, B. (2010). How to write a business plan (3rd Ed.). London: Kogan Page. Wehrenberg, S. (2012). The successful marketing plan: how to create dynamic, results-oriented marketing (4th Ed.). New York: McGraw-Hill. Kotler, (2012). Marketing management (14th [ed.] Ed.). Upper Saddle River, N.J.: Prentice Hall. Mullins, (2013). Marketing management: a strategic decision-making approach (8th Ed.). New York: McGraw-Hill. Smith, C. (2013). Art Marketing 101: an artists guide to a successful business plan (4th Ed.). Nevada City, CA: Art Network. Wood, M. B. (2011). The marketing plan handbook (4th Ed.). Boston: Prentice Hall. Read More