Assignment 2: Business Plan Breakdown 4—The Operations Plan

Marketing Plan-Fresh Foods

Name

Institution

Marketing Plan-Fresh Foods

How the marketing plan targets the market segment

Fresh Foods is utilizing a target market strategy which aims at reaching out the customer of the business in the most effective and efficient way. When a business is able to reach out to its customers in the desired manner, the business is able to realize sales for its fresh produce as the various customers will be well aware of the business, its range of products and the benefits associated with the consumption of the fresh farm produce. The target market for the fresh produce and consumers all over the United States. Using the market plan, the organization will be able to define the target market which requires researching the psychographics and demographics of the consumers in order to get the general characteristics of the targeted customers. However, it is important to point out the company will not be able to reach out to all these consumers without the intervention of the Fresh Foods outlet stores as well as independent retailers who will distribute the products through their various stores and outlets within the country.

Fresh Foods Positioning Statement

Agriculture is one of the largest and oldest industries. As a result, there are various companies and individuals engaged in different agricultural activities. Fresh Foods is coming into a market that is already dominated major old-time players such as Whole Foods. The quality of the agricultural produce does not only depend on the content but also the freshness of the produce. The fresher the produce, the healthier it is and the more beneficial it is to the targeted customers. As such Fresh Foods is focusing on producing and supplying fresh and quality agricultural produce. This makes the company stand out among such as Whole Foods who put more focus on the quality alone. The slogan for the company is “Fresh is Quality. Quality is Healthier.”

The Products and Services Offered

As an agricultural company, Fresh Foods will not only engage in the production of fresh and quality firm produce but also supply these products to the market through its company-branded outlet stores and other independent suppliers and retailers. One of the major crucial factors for any agribusiness is favorable weather conditions for the growth and development of the crops. Fresh Foods utilizes the greenhouse technology which is backed by modern state of the art technologies. The technology plays a significant role in overcoming the major challenges that reduce the yield of the crops that increase their quality. The main products that the company will focus on are vegetables. After harvesting the produce will be packed without any modification that may interfere with their natural quality. This ensures that the targeted customers are able to make their purchase as if they are buying directly from the firm.

Pricing Strategy

The pricing strategy is an important aspect of the business because it will determine whether or not the business will be able to realize its goals and objectives within the specified timelines. If the business settles for a price that the targeted customers cannot afford, then it will realize diminishing sales which will result in losses. Also, if the price is too low, the business will be able to realize more sales but small profit margins which prevent the business from growing and expanding the business through research and development, (Coles, 2018). Therefore, the business is focusing on understanding the market, choosing the best pricing technique and working out the costs to determine the most effective prices for the produce when they reach the market.

Understanding the market helps the business to determine how much the customers are willing to pay for the products. If the product is too expensive for the targeted customers, then they will opt for the more affordable produce from the competitors. The process also helps the company to determine the price of the competitor products and determine whether to match or beat them in order to realize the goals and objectives of the organization. Regarding choosing the best pricing technique, the business will utilize a cost-plus pricing technique which involves adding a markup percentage to the various produce. This percentage will vary based on the input and cost of production for the various crops. Last but not least, the company will also work out all the direct and indirect costs associated with all the levels of production to determine the fixed costs that need to be covered. This way, the business is able to settle for a price that covers the costs and make the desired profits as well.

The Promotion Plan

Fresh Foods will heavily utilize technology to promote is products and services to targeted customers. There are various channels that can be utilized by the business to realize the desired positive outcomes, (Geldes et al., 2015). However, it is crucial to recognize that some of the channels are more effective than the other considering the targeted audience and the desired outcomes for the organization as argued by Payne et al. (2017). Thanks to the advancements in the field of technology, the business has a variety of options to select the most effective channels to promote its products to targeted consumers. These channels include the internet, specifically social media, TV commercials, and print media.

Social media will involve the use of social networks such as Facebook, Twitter, and Instagram to reach out to targeted customers with customized marketing messages. Studies have shown that there are more than more than 70% of the American population has a social media profile, (Coles, 2018). This brings out the potential of utilizing social media to reach out the targeted customers. Moreover, social media also provides a fast and effective way for the customers to get instant from the company on any issues pertaining to the fresh produce.

TV commercials will also be used to reach out to the targeted audience. A report by the New York time revealed that American adults take an average of 5 hours watching TV on a daily basis as presented by Mooney (2016) By 2013 there were more than 300 million TV sets being watched in the United States, the business will be able to reach out to as many of the targeted audience as possible thus increasing the likelihood of the customers to be aware of and buy the fresh firm produce being offered by the company, (Koblin, 2016).

Finally, the print media will be used to make billboards with the customized marketing message. The boards will be placed on strategic locations such as road intersections to increase its visibility to the targeted customers. Also, the marketing message will be included in agricultural magazines in addition to health and wellness magazines.

Target location for Fresh Food

The nature of the company operations makes it necessary to select the most effective location for the greenhouses as well as the outlet stores. The greenhouse will be located in a vast and open land which will accommodate the large greenhouses for the various crops. The location is also well endowed with natural resources such as water needed to promote the growth of the crops. The location also has an improved rood network as well as easy access to the airport which makes it easy for the produce to reach the market within the shortest time possible after leaving the firm. This also helps the minimize costs for the company as the transportation costs are kept at a minimum.

References

Coles, L. (2018). Social media for business: Foolproof tips to help you promote your business or your brand.

Geldes, C., Felzensztein, C., Turkina, E., & Durand, A. (2015). How does proximity affect interfirm marketing cooperation? A study of an agribusiness cluster. Journal of Business Research, 68(2), 263-272.

Koblin, J. (2016). How Much Do We Love TV? Let Us Count the Ways. Retrieved from https://www.nytimes.com/2016/07/01/business/media/nielsen-survey-media-viewing.html

Mooney, C. (2016). The U.S. has as many televisions as humans. Here’s how both can waste less energy. Retrieved from https://www.washingtonpost.com/news/energy-environment/wp/2016/03/15/why-people-who-watch-a-lot-of-tv-might-really-need-a-new-one/?noredirect=on&utm_term=.51323cd33df6

Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution, development, and application in marketing. Journal of the Academy of Marketing Science, 45(4), 467-489.