Pitch

Harvest Produce has successfully applied the customer-centric and relationship orientation marketing concepts by focusing on long-term customers (Marshall & Johnston, 2019). The fact that the customers know they care and are willing to go above and beyond for them has kept Harvest going. However, as technology flies forward, one of Harvest Produce's biggest struggles is keeping up and providing customers with the technological advances they desire. School districts are one of their more lucrative customers, whom there is sharp competition for, and good relationships only play a small role in getting their business. So as time goes on, Harvest Produce needs to make a bigger and brighter spot for themselves in the wholesale produce distribution market by applying some fresh new marketing techniques for their fresh produce business.

2- Conduct a situation analysis (p 66+) textbook cite in all 3

a. Macro level external environment (p 67)

Consumers today are technologically advanced and expect digital solutions to most of their daily lives. This is due to changing generational preferences and technology (Marshall & Johnston, 2019). And it applies to both the consumers' personal and professional lives. Nowadays, almost every business has online ordering, except within the wholesale produce industry. Only the largest have this feature. If Harvest Produce wants to maintain and grow its market share, they need to make ordering and tracking orders more convenient. Technological environment changes are constantly emerging, so Harvest Produce needs to understand and adapt to the evolving market to remain fresh and viable (Marhsall & Johnston, 2019).

b. Competitive environment (p 68-pick 2)

Harvest Produce has a strong rivalry with other wholesale produce companies. Product prices can only play a small part in setting themselves apart, as every company receives their products from the same place for relatively the same price. A few of the competitors are the same size and offer the same variety of products. Still, the largest competitor has more buying power and can undercut smaller companies' prices. But, what they have in better pricing, they lack customer service. Customers choose to stay with the smaller wholesale produce companies because they are taken care of and supported. For instance, if a small deli runs out of Iceberg lettuce, Cisco will not send a driver out the same day. On the other hand, Harvest Produce will do everything in its power to try and make that work.

Just as there are a few rival companies close to the same size as Harvest Produce, and one or two large ones, the customers are mostly small with a few large ones. Most Mom and Pop restaurants do not have much buying power. Even chain restaurants that are well known, such as Jersey Mikes, but only order limited quantities of product, do not have much buying power. The general price of produce is based on the market value each day. However, school districts have excellent buying power. They are large and require bids for their business. A produce company must set a price for each item for the entire year, regardless of market price fluctuations. For school districts, the prized accounts for wholesale produce companies, the bargaining power of the buyer creates a highly competitive environment (Marshall & Johnston, 2019).

c. Internal environment (p 69)

Internal factors that affect Harvest Produce are the firm's systems and resources. The current system is slow and outdated and hinders consumer usability. There are no online accounts, no order tracking, no online billing or invoicing, and no up-to-date prices. With the knowledge being abundant nowadays, consumers expect it in the business arena as well. Key resources that affect Harvest Produce are marketing capabilities, human capabilities, and information system capabilities (Marshall & Johnston, 2019). For example, company resources, such as employees' time, are being spent tracking down customers who have not paid their bills. There is no information system for automated reminders. The CEO is also the sales representative.

3- Perform any needed market research (use one 'product/service' from the company for this and apply it to all 6 steps-tell how and who and what for your company, not just a definition of what you will be doing) (p 99+) textbook citation.

· Define research problem- "At the heart of the market research process is a search for understanding" (Marshall & Johnson, 2019). Harvest Produce needs to determine the best marketing campaign, and market research will help the company make the right decision.

· Establish Research Design- Harvest will need to conduct descriptive research to identify how customers would like to use their service and casual research to determine the best way to reach new customers. Data can be secondary data and come from qualitative research using small samples and surveys (Marshall & Johnston, 2019). The nature of the data will be behavioral data and surveys, including current customers and potential future customers.

· Search Secondary Sources- Search the internet for knowledge about the three marketing approaches, and look for statistical data.

· Collect the data- Survey customers and potential customers and record the responses.

· Analyze the data- Sort out all the information and interpret the data.

· Report the findings- Properly finalize and report the research. For managers to benefit from the research, it needs to be well written and presented (Marshall & Johnston, 2019).

4- Establish marketing goals and objectives-this is where you get to be creative. Apply all or as close to the $6000 (do not go over budget) and how you would spend it to promote your product/services for a year. Show your total at the end of it. You must do research and find real product/service and amounts (each one must be broken down; for example, how many ads on FB for the entire year per cost for each and total). Minimum of 3 promotions and citations (or personal communication ) must be provided. No outsourcing such as a marketing company. (You can review CH 13 for additional ideas).

Technology plays a significant role in today's world. Consumers expect to be able to know and monitor their accounts and orders online. If Harvest Produce does not update its website and online interface, consumers will leave for companies that do. The marketing goal here is whole business marketing, not direct marketing. A website creator can design a website using the open-source applications WordPress and WooCommerce for $1,900 (Weloveweb, n.d.), along with a custom plugin for $600 (Weloveweb, n.d.) and a business-to-business plugin for $99 (Codup, n.d.). Then Harvest can hire a WordPress trainer to train the owner and employees on how to use the new system, which would cost $140 for 2 hours (Wordpresserik, n.d.).

After the newly designed website, a direct marketing approach should be taken with direct mail flyers. Harvest can hire a designer to create two unique designs, which would cost $40 (Mgreen129, n.d.). One would be for mailing to new potential customers and one for current customers to explain the new online offering. By purchasing a mail list of food stores and eating places for $525 (Geo Selector, 2022), it can have a print company create the flyers and mail them out for $1,382 (Next Day Flyers, 2022).

Finally, as some of Harvest Produce Inc's most lucrative customers are school districts, it can purchase a booth at the California School Nutrition Association Expo for $1,175 (CSNA Annual Conference, 2022). There, it can present itself to potential school districts with information about the updated customer experience.

Table 1

Put your company name and city/state here in Italics (see page 200 of APA manual)

5- Develop marketing strategies: review (71 Exhibit 3.11) and tell which of the 4 (citation needed) . Product-market strategies you will be using and why, then give an example.

Four main marketing strategies help provide a path for creating, communicating, and delivering value to customers. They are market penetration, product development, market development, and diversification (Marshall & Johnston, 2019). The emphasis on each strategy relies on existing or new products and existing or new markets. Harvest Produce is marketing existing products to an existing market, so market penetration is the best strategy. It will focus on existing customers by updating the customer experience by adding online ordering and updating the website to allow customer access, which can also recommend additional products.

Harvest would like to serve school districts (a new market), so using the market development strategy will get it in front of the school leaders at a school nutrition trade show and get noticed. Additionally, the product development strategy can be used with existing customers by contracting with more vendors. If Harvest Produce adds more than produce, such as dairy and bread, customers will not have to order from different vendors. They will be more likely to streamline their ordering and purchase everything from Harvest. Lastly, Harvest Produce can also use diversification and advertise to the school districts that they have more than produce but can also supply dairy and bread.

6- Market segmentation, target marketing, positioning (CH 7) TIPS: Pick your Market Segment (1)- check out the criteria for it in Exhibit 792 and 7.11. Target Market on page 198 has 3 steps which you can share using your example (your market segment). Analyze- so tell why you picked this one. Develop profiles (2)- pick the Primary target market and tell why it is the best ROI and other attractive factors (p 198+). Select a Target Market Approach (3)- pick one of 4 and tell why it works for your company/product (199-201). Citation needed.

Marshall and Johnston (2019) state that market segmentation divides a market into meaningful smaller markets or submarkets based on common characteristics. Harvest Produce should market segment by generational group and operating variables, focusing on the market segment with high technology use. This was determined from the following three steps in target marketing: Analyzing market segments, developing profiles, and selecting a target marketing approach.

Current customers have varying degrees of technology use in their businesses. The majority favor having online customer ordering as it saves time and allows them to view past orders online without having to go into paper files. I spoke with Alex Rivera, a former Harvest Produce delivery driver, and he stated that his conversations with customers showed him that they run busy businesses. They do not have extra time to wait for a customer service rep on the phone to write their order by hand. Additionally, he reported an increasing number of millennials and Gen Z are placing produce orders for the companies they work for (A. Rivera, personal communication, June 15, 2022).

By developing profiles, Harvest Produce can see that some customers have more difficulty placing verbal phone orders than others and are the ones with more technologically advanced workers. These customers have the highest potential of leaving for another produce business with easier ordering options due to demands for better technology (Crook, 2018). Therefore they are the primary target market. In addition, some customers who have not complained about ordering difficulties are still from the younger, highly technical generations and would still appreciate the new competitive edge of the updated website with customer management and online ordering.

For the third step, Harvest Produce will use the broadest approach, Undifferentiated Target Marketing. The reason is that the addition of online ordering and customer accounts will "be perceived as valuable to a very generalized group of consumers" (Marshall & Johnston, 2019, p G-17). Every customer can benefit from the improved CRM, and if they wish to still place orders over the phone, they are more than welcome to do so. And, they will most likely have fewer wait times to talk to a representative because many other customers will take advantage of the online ordering.

7- Marketing mix strategies (p 84+) Give specific examples of what/how you will do it! 1 paragraph each (textbook citation at least 1 when using terms from it)

a. Product/branding strategies (p 84, 247)

Harvest Produce offers produce to many types of local customers. Its marketing edge has always been based on building great customer relationships and going above and beyond. However, with the advance in technology, Harvest Produce had not kept up. To show current and potential customers they are not falling behind the times, the new online ordering option and customer accounts will allow customers a more convenient way to order. Harvest Produce will maintain its willingness to go above and beyond by offering more conveniences without removing any past service. Customers can still call in their orders if they wish.

b. Service strategies (84, 267+)

Harvest Produce's CRM will allow phone representatives and delivery drivers access to a customer's order history, allowing them to meet customers' expectations without a customer having to specify. The online ordering platform will allow personalized products to be saved and reordered on-demand, ensuring no miscommunication. This is valuable for business owners, as their employees often place orders without knowing exactly which type of product they receive. For instance, Jimmy John's orders 4x5 tomatoes, but the employee only orders tomatoes without specifying the type. Harvest Produce's service provides that they know the exact kind they need.

c. Pricing strategies (84, 294+)

Harvest Produce will implement penetration pricing to try and gain market share. Penetration pricing is beneficial because it "can be effective to gain customer trial, expose customers to excellent service quality, and build customer loyalty for the brand" (Marshall & Johnston, 2019, p. 84). This pricing strategy is also necessary to gain school districts because Harvest Produce must place pricing bids each year to earn the contract. A second pricing strategy to be used by Harvest is quantity discounts. The more a customer orders each produce or product type, the lower their price per unit. Harvest Produce pays less for products in larger quantities and can pass that savings to the customers as well. Third, As a business-to-business distributor Harvest Produce works with customers with strict budgets. If they can negotiate prices, Harvest may be able to gain them as a customer or keep them from leaving.

d. Supply chain strategies (84, 317+)

Harvest Produce is a wholesale distributor, meaning that supply chain management is one of its most essential aspects. Harvest needs to be able to get the product to the customer quickly and safely. To accomplish this, Harvest Produce sends employees to the Los Angeles Produce market every morning to purchase fresh products that they can handpick. Harvest can also maintain updates on where the product is and when it will be back to the warehouse for sorting. Employees then build customer orders and deliver them straight to the customers on individualized routes. Efficiency is essential, and customers can check on the location of their order at any time. They also have direct access to their delivery drivers if they need to change anything.

Additionally, Harvest Produce uses the strategy of creating assortments by purchasing more than just fruit and vegetables, such as bread and dairy. Harvest Produce can create value by supplying as many food items as possible to each customer by showing it offers a convenient assortment of options. It would benefit the customer because the more they can get from Harvest, the less they will need to order with other vendors, making their jobs quicker and easier. According to Marshall and Johnston (2019), most customers appreciate the convenience, so it is a good marketing mix strategy.

e. Integrated marketing communication strategies (85)

Integrated marketing communication is "a strategic approach to communicating the brand and company message to targeted customers in a way that is clear, concise, and consistent" (Marshall & Johnston, 2019, p G-8). One way to achieve integrated marketing communication is by delivery drivers and customer service representatives alerting customers to other offerings, such as bread and dairy, which would be personal selling. Direct marketing is another approach harvest Produce can use by sending flyers to local businesses with a need for produce and other food items. Future customers will receive flyers through the mail, but current customers will receive them with their orders, and delivery drivers will be there to explain the handout if there are any questions. Sales promotion can also be used when Harvest has an excess product it would like to clear out. The sales representative can call current customers who use the product and offer a discount if they are willing to purchase more than usual.

8- Develop implementation plans (no citations needed in section)

a. Programs/action plans for each strategy including assignment of responsibilities, and resources required (tell what you have in mind for the company overall besides the marketing plan from #4 (such as exact # employees, pay pp and hours)

The strategies above are the responsibility of the owner. He will set the company's tone with branding, service, and pricing strategies. However, the employees will mostly be the ones to implement it. If each customer consistently gets the same delivery driver, they will be able to build relationships and become comfortable. Customer service representatives will need to provide support and uphold service strategies. The company buyer will need to ensure pricing strategies can be upheld, and everyone will pay attention to logistics.

As more customers are added, more delivery drivers will need to be hired. Each employee should be able to complete their delivery route within 6 hours so customers can receive their product promptly. If routes become too long, Harvest Produce will need to split them up. However, with the implementation of online ordering, no new office workers will be necessary. Streamlining the orders will allow for better customer service. The resources required to implement the strategies are time, money, communication, and advertising. Within a few months, the new CRM and ordering system will be implemented, the flyers delivered, and school bids entered. Harvest Produce should soon after see the positive outcomes of its effort.

b. Metrics for marketing control (16+)

Harvest Produce will use CRM Analytics for marketing control metrics. This system can collect and interpret data relating to customer demographics and interactions with the company. Harvest Produce will be able to identify certain characteristics of a given customer to determine the level of service and expense investment required (Marshall & Johnston, 2019).

c. Provide for contingency planning (do not repeat what you have done previously and share how you will prepare if something doesn't work out

Harvest Produce hopes for a steady increase in business as they grow and gain market share. However, a contingency plan is good to have in case of a worst-case or best-case scenario. In the event that Harvest Produce's marketing attempts fail, it would simply revert to its previous ways of communicating with customers and taking orders. If necessary, it would absorb the cost by cutting bonuses from the owner and management and removing the CRM system.

However, a best-case scenario is a little more problematic. If Harvest Produce's marketing plan works better than expected and a significant market share is quickly gained, it would need to be ready to hire more employees and possibly purchase more vehicles. To prepare for this, Harvest can have an employment ad ready to go and pre-research vehicle costs and loans. Additionally, if Harvest gains multiple school districts as customers at once and is unable to physically and logistically accommodate them all, it would need to turn down service to one or multiple. In this case, it would be imperative to implement public relations strategies to maintain good relationships with the customers it cannot serve in hopes of gaining them again when infrastructure is built up. Alternatively, the contingency plan could also include getting a bank loan to cover the initial cost of acquiring the school districts with the contract as a qualifier.

References