Global Marketing Plan of Supernature Oils - Essay Example

Executive summary

This report was written to provide global marketing plan of Supernature Oils. This is a family-own company that is located in Scotland and sells rapeseed oils with and without some infusions. In order to develop each element of the plan properly, the report clearly states marketing objectives, shows strategic fit and business portfolio, examines the target market as well as marketing strategy, making a strong connection between elements of marketing mix and needs and demands of the consumers; a part of the report is devoted to marketing positioning, the rest features implementation plan as well as measurement and controls. The target country that is proposed for expansion if France. There are several reasons for that such as geographic proximity, similar culture as well as high demand for the product. Each element of the analysis will address the marketing issues in two dimensions: the general and the concrete one. This may be particularly helpful for understanding the nature of the business as well as the manner in which it is able to expand into a different country. The report features all necessary information that must be considered by the company prior to the expansion. Moreover, this report should be used as a guideline for this activity.

Introduction

Supernature Oils is a small family-owned company that specialises in the production of rapeseed oil, complying with the traditional methods and delivering the highest quality of the product. The marketing objective that the company is willing to achieve focuses on raising the awareness of the product which expands the consumer base as well as increase usage of the product. The contemporary business conditions may provide a wonderful opportunity for the company in question since people show a general interest in buying organic products. This correlated with the company's mission which is to provide consumers with high-quality organic rapeseed oil. Currently, Supernature Oils provides a moderate range of oils with and without infusions. Nevertheless, one will make no mistake suggesting that the company is so successful that it possesses a sufficient amount of capacity to expand into a different country. It is obvious that the products by Supernature Oils are sold in England, Wales and the Northern Ireland, but since they are all parts of the United Kingdom this can hardly be perceived as entering a different country. For the purposes of this paper, France will be selected as a country is the most suitable for expansions. There are numerous reasons for this and all of them will be expressed in the paragraphs below.

Statement of marketing objectives

There are several marketing objectives that the company should pursuit. The first is raising the awareness of its product. At the present moment rapeseed oil may be known locally, but nationally or even globally the potential consumers are not aware of it. It is important to make sure that more people make orders and join official accounts of the company in social networks. Another marketing objective focuses on increasing usage of rapeseed oil by the people. Thus, the latter should be encouraged to use it in different situations. It may also be beneficial to explain why France is the country that Supernature Oils should start its global expansion from. First of all, one should keep in mind that this country is located relatively close. This may have a significant impact on the product since thought expiration date of rapeseed oil may not be close, the sooner people receive it, the more satisfied they will feel themselves. In addition to that, it must be noted that historically, there have been close connections between France and Scotland which means that people in both countries are well aware of each other’s culture. Finally, the French consumers generate a sufficient amount of demand for rapeseed oil. In other words, this country may be regarded as the best candidate for expansion.

Strategic fit and business portfolio evaluation

It may be particularly beneficial to make a correlation between capabilities and resources that are available for the company and the opportunities that the business world is providing. One would not make an exaggeration stating that there is a general trend for appreciation of organic products and rapeseed oil, especially the one which is produced by Supernature Oils, is highly praised by the public. In spite of the fact that the company is a family-run and is a relatively small, it is still able to produce a sufficient number of products and meet the demand of the people which is growing. It would not be a mistake to suggest that the product range that is offered by Supernature Oils may be limited. Nevertheless, it is also obvious that it features every kind of product that might interest a person considering making a purchase. Thus, large quantities of rapeseed oil may be appealing to those who are planning to use it on an everyday basis. Those people who simply want to try something new may be interested in the bottles of 100 ml and 250 ml. Finally, the gift boxes are suitable for a thoughtful present. That is why one might conclude that the product range perfectly fits the strategy that was chosen by the company.

As for the business portfolio, one should note that the company in question offers a moderate range of products. To be precise, there are three major categories: original oil, infused the oil, and gift boxes which consist of a set of small oil bottles ("Supernature Oils" 2013). Thus, original oils come in different volumes: the smallest one is 250 ml and the largest is ten times bigger - 2.5 litres. Infused oils come in two volumes – 100 ml and 250 ml. There are also gift boxes that have four categories and feature four 100 ml oil bottles groups together. While considering the strategic fit and the business portfolio one should also make some references to the segment of the market that will be addressed. Thus, rapeseed oil may be seen as a product that people will use while making food. As it has been mentioned, the available options allow people to buy a lot of this oil and use it on a daily basis. However, one should also consider the fact, that rapeseed oil may be seen as an exotic alternative to regular oil. This means that it is not only food segment of the market that should be mentioned, but also the segment of organic food. Indeed, those people who are interested in pursuing a healthy lifestyle will be most interested in this product.

Target market

Demographic

The identification of the target market should take into account several dimensions. The first one to be used is demographic. Becken (2015) believes that it is useful to group the consumers in terms of major demographic characteristics since this may reveal important information about them. In the case of Supernature Oils, it is obvious that the target market includes people in their mid 20's and up to 40's. They have a college degree or higher, they are likely to be married and possibly have a child. Their income is average or above average. If one considers this dimension of the target market and applies it to France, one will be able to see that this group will include a considerable number of people. While this may be true that some citizens of this country will not be able to afford buying rapeseed oil instead of regular oil, the company should not worry about the demand: the price that they set is affordable to a considerable number of people. Therefore, it is obvious that demographically, the target market may be seen as rather big.

Geographic

Another aspect that should be mentioned is the geographic dimension of identification. Krishnamacharyulu (2010) rightfully notes that people in cities are more likely to buy organic products than those in the rural areas. No matter how surprising it may seem, but the city-dwellers are more interested in organic products since they believe that they are negatively affected by different environmental factors. That is why they perceive such products to be a tool to improve their health. Therefore, one may also suggest that the population density that characterises the target market in question is relatively high. Speaking of the geographic aspect of the target market in France, one should consider several aspects. First of all, as it has already been mentioned, when it comes to sending goods, it will take a little time for Supernature Oils to send the items to the consumers. Indeed, the transportation in the UK is fine-tuned and there are many ways in which products can be shipped to France. Another point that should be considered is the level of urbanisation. The evidence shows that the vast majority of the people in this country live in cities. This means that the target market will include a lot of people. Needless to say that people who live in rural areas are likely to refrain from buying rapeseed oil since they are capable of growing it themselves.

Psychographic

The next important dimension that may reveal a lot of important information about the target market is the psychographic one. Lazor (2013) insists that it is particularly advantageous to understand what drives the target audience. It would not be an exaggeration to suggest that the people who are likely to buy rapeseed oil pursue a healthy lifestyle and would like to increase the share of organic products. Moreover, they are aware of the negative effect that the environment has on their bodies and take conscious actions to mitigate it. Their values include health, being active, and taking control over their life. The psychographic dimension may be particularly important when it comes to understanding the culture of the target market. As it has been previously noted, there are several reasons for choosing to buy rapeseed oil and the desire to pursue a healthy lifestyle may be regarded as one of the most important ones. Speaking of the French consumers, it must be noted that throughout the history they preferred organic products since they like taking care of their body as well as their organism. Therefore, one might suggest that the consumers who come from this country may be included to buy this kind of products which is particularly beneficial for the company in question.

Behavioural

The last dimension that should be used while determining target markets focuses on the behaviour of the target audience. Lim (2012) believes that usage, as well as purchase occasions, are able to tell a lot about the consumers. For example, if people add rapeseed oil to their salads this might reflect that fact that their diet is sophisticated. In addition to that, it is obvious that by doing so, the people seek to become healthier and try to reduce the number of negative substances that are consumed. Another point that should be mentioned is that rapeseed oil may also become a suitable gift which means that there is a category of people who will be happy to receive such a gift. In any case, there is a wide range of motives that may persuade a person to buy rapeseed oil. One should keep in mind that they may be modified by the local culture and customs. Thus, the French people are known to be gourmets which means that buying a new kind of oil, whether for personal use or as a gift, may be regarded as an action that is approved by the society. In other words, as soon as the products by Supernature Oils enter France, they will be noticed by the local consumers immediately. Moreover, one should also keep in mind that the French are prone to impulse shopping and the sales are likely to be high.

Marketing strategy

Product

There are two steps in identifying marketing strategy: first of all, each element of the marketing mix is defined and, secondly, a connection is drawn to needs and demands of the consumers. Speaking of the product, one should note that Supernature Oils produces rapeseed oil that is known for its numerous positive qualities. Kramer (2012) holds that there are numerous uses that can be identified and it is quite logical that many people will buy it. Keeping in mind that local customer, what the consumers demand and would like to buy, it is obvious that no particular changes should be made in the products. Speaking of the language on the package, one might suggest that small stickers in French should be made and placed on the package. It may be important to retain the description in English since it will put emphasis on the fact that the product that a person bought comes from a different country. As for changes in the available volumes or product range, it must be noted that none should be made since the current products are well-suited for the French market.

Price

In the majority of the cases, the consumers may be quite sensitive to the price of the product as they believe that the difference in the quality is negligible, but the difference in the amount of money charged is easily measurable. If one takes a close look at the way in which Supernature Oils are marketed, one will be able to see that they are sold at prices that are significantly lower than those of the competitors (“Oil”, 2016). This means that the company wants to put emphasis on the desirable combination of high quality and low price in order to attract the biggest number of the potential consumers. One would make no mistake suggesting that the issue of price is among the most important ones. That is why a considerable amount of attention should be devoted to this topic. Given the lack of significant differences between the economic development of the United Kingdom and France, one should point out that no changes are needed while penetrating the market of the latter country. In addition to that, the approach that Supernature Oils adhered to in its domestic country should be replicated, namely, the price should be standard or even slightly below the competitors. This will attract a considerable number of people and convince them to try to a new product that appeared on the market.

Place

The question of distribution is the next one that should be carefully examined. Thus, Supernature Oils are marketed different placed ranging from small local retails to large supermarkets and hotels (Ross & Brown, 2015). This is particularly important since it shows that there is no chain of official stores. It is obvious that everyone can come to the farm and buy the products directly. One would make no mistake suggesting that this should not be changed since it shows the exclusiveness of the product and makes the original farm a unique place. One would make no mistake that the company in question should rely on local retailers when entering France. This means that the major channel of distribution will consist of local well-known retailers that have a fully developed network. First of all, it is essential to choose several retailers that have the highest coverage of the country. In this case, the company will be able to attract the biggest number of clients. It is also possible that those cities which are located on the coast may enjoy a shipping option. This will allow Supernature Oils send goods directly from its headquarters.

Promotion

At the present moment, Supernature Oils are not promoted well. Funk (2014) suggests that social media promotion may be the key to success in the contemporary business world. In spite of the fact that the company in question has accounts on Facebook, Twitter, and YouTube, its virtual presence is far from being satisfactory. It is obvious that this is the direction in which Supernature Oils should work hard since this will show that the company is a modern one and it tries to keep up with the pace of time. In addition to that, promotion in conventional channels, for example, print advertisements, can be beneficial as well. It is also important to rely on the local retailers in terms of promotion. Thus, the business partners should be chosen based on their level of recognition and the image that is associated with them. It is quite obvious that cooperation with a foreign company will improve their status; so, one might suggest that the benefits from promotion are mutual. In addition to that, a retailer should be able to promote the new product well by providing a sufficient amount of shelf place. Furthermore, retailers are expected to facilitate various campaigns which means that the fate of promotion in France will largely develop on their efforts. As a result, Supernature Oils should choose only the most reliable.

Wants and needs

The success of the marketing strategy is ensured by the fact that it is able to meet the needs of the consumers. Thirlaway and Upton (2009) report that there is a general trend of improving one’s lifestyle by introducing more organic products and finding better alternatives to those products which are known to have a negative impact on the organism. In other words, a consumer needs an alternative to ordinary oil that is used for various purposes, but the price of it should be equal or lower. As it has been mentioned before, the wants and needs of the French customers are largely similar to those in the United Kingdom. That is why one might expect that the factors which drove the demand back at home will also be present in a foreign country. However, it is also possible that there are will be unique needs. For example, the French consumers may prefer infused oils to regular oils since they would like to sense some aromatic additives. As a result, the former category will be more popular than the latter one. This is something that Supernature Oils should take into account since this will heavily influence the manner in which the items are stocked.

Demands

All this logical results in a distinct set of demands. Canavari and Olson (2007) hold that sometimes the consumers are able to formulate their demands clearly and it is up to a company to adjust its marketing strategy accordingly. Thus, Supernature Oils are not expensive and they are of the highest quality. Given the fact that they are produced according to the traditional methods as well as are free of any negative substances, they represent a perfect substitute for other oils. Therefore, the demand for a product that will contribute to one’s health and will not be too costly has been successfully met. Given the similarity of the consumers, there should not be any surprise in the fact that the demands of the French consumers will resemble those in the United Kingdom. Indeed, the former will be willing to buy a product that will allow them to improve their lifestyle by introducing more organic products into their diet. However, they also would like the price of such a product to be reasonable. Therefore, the traditional pair, price, and quality, will remain important for this market since it will reflect the basic demands of the people. All this leads to the understanding that there is no need for in-depth marketing research to be successful in this country.

Marketing positioning

There are several ways to identify the desired positioning of the product in question. Supernature Oils may benefit from using the approach which connects uniform positioning with the universal segment. According to Oosterveer and Sonnenfeld (2012), this will allow a company to produce the same product and market it similarly in every country. This may be particularly convenient for Supernature Oils since it will produce rapeseed oils and sell them unchanged in every country they enter. In addition to that, this will put emphasis on the highest standard of quality that the company in question is proud of. One would make no mistake suggesting that quality may be regarded as one of the major sources of competitive advantage for the company in question. Indeed, today it is possible to buy a wide range of products from all over the world. However, people still question the quality of some products. As a result, Supernature Oils should position itself as a company that will not make a compromise when it comes to quality and price. In other words, the potential consumers should rest assured that when they buy a product that is manufactured by this company, they will enjoy outstanding quality. This may be particularly important for the French market.

Moreover, the company should also utilise foreign consumer culture positioning. Daun, Eskin, and Hickling (2011) insist that this approach helps a company to create a certain mystique regarding the product that it sells and emphasise some qualities. This means that Supernature Oils are not some ordinary oils, but those that were created according to the Scottish traditions. Therefore, the consumers may be interested in trying this product since they will be intrigued by the characteristics of it. This will, in turn, reinforce the demand for the oil and will encourage the consumers to try the product. It must be noted that the overall image of Scotland for the French people is positive. Moreover, it is highly influenced by some epic stories and leads to the emergence of partially idealised perception. That is why it may be particularly beneficial for the company to position itself as the one which adheres to the Scottish traditions since it will be perceived as the representative of its own culture. One would make no mistake assuming that the French people will be willing to try a truly Scottish product without leaving the country. As a result, this will lead to the increase of demand and interest a considerable number of people.

Implementation and action plan

Jarboe (2012) states that implementation of the strategy should have a reasonable timing. If one considers the example of Supernature Oils, one should note that the general plan should take about a year and it should be divided into several sections. The first section will take about three months and will focus on establishing a proper virtual presence. The next stage will take six months and will be designed to increase awareness and stimulate the sales. The remaining three months will be used to maintain the interest of the consumers and build up clientele. It is quite obvious that the timeframe which was mentioned before should be used as a guideline, not the actual timetable. Given the difficult situation with the refugees and occasions riots that happen in France, it is possible that implementation of some actions may be delayed. Nevertheless, it is important to state that penetration of the market should take a reasonable amount of time. Indeed, it may be next to impossible to implement the given plan ideally; that is why some problems are expected to emerge. However, Supernature Oils will benefit from a reasonable fast penetration of the French market since in this case it will be able to operate in an additional country.

Measurement and controls

Finally, it may be logical to introduce a system of measurements and controls that will reflect the effectiveness of the strategy. Riva (2006) suggests that measurements and controls should be objective and transparent. Moreover, it is important to make sure that they have the required level of validity so that it measured the desired characteristics. Thus, the number of people who follow the account of the company in question can be easily measured and the difference should be interpreted as a change in awareness. Moreover, the sales figures will also show whether the strategy was successful or not: if they increase, then it is obvious that the company was able to stimulate growth and interest of the people. There are two points that should be balanced which controlling the French branch of the company. On the one hand, it should be properly managed by the headquarters. It is essential to make sure that the standards of quality that Supernature Oils takes pride in are maintained. That is why taking the business to a different country should not be seen as an excuse to lower the quality. However, on the other hand, the regional managers should be allowed to introduce changes that would adapt the product or the promotion to the local reality. As a result, there should be a balance between the control and freedom that is given to the branch. Nevertheless, the accurate, as well as appropriate measurement, should be taken into account which considering the effectiveness of the actions performed.

Conclusion

Having examined all the points which were mentioned in the paragraphs above, one is able to come to the following conclusion: Supernature Oils may benefit from global marketing plan which was presented in this report. It is important to keep in mind that the marketing objectives are achievable and if the company is able to correlate its capabilities and resources with the available opportunities, it will be able to benefit from the existing trend and interest in organic food and the desire to use rapeseed oil. It is quite obvious that the future of Supernature Oils in France will largely depend on the steps that will be taken by the company in this country. It is highly possible that if it follows the proposed plan, it will be able to successfully penetrate the market and establish dominance over the niche. However, one should also keep in mind that certain changes should be made along the way since the situation in the future may be significantly different from what is expected from it today.