Marketing Assignment editing

 

Marketing

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Table of content

Executive summary………………………………………………………………………………3

Situational analyses………………………………………………………………………………3

Marketing objectives…………………………………………………….………………………4

Target market………………………………………………….…………………………………4

PEST analysis……………………………………………………….……………………………5

SMART objectives…………………………………………………….…………………………5

SWOT analysis……………………………………………………………...……………………6

Customers groups and market segmentation…………………………..………………………7

Marketing mix……………………………………………………………………………………8

Budgets and controls……………………………………………………………….……………8

Control mechanism and contingency plan……………………………………………..………8

References…………………………………………………………………...…………………10

Executive summary

The business need to increase its sales while retaining the current retail prices of its products. A lot of changes will need to be effected while other proposed plans like expanding into new markets will have to be effected for maximum profits. The market analysis and all the plans are illustrated below.

Situational analyses

Brief Information on Company’s current Market.

Van der Steen confectionery is a family confectionery business within Brisbane with a long family and business history. The confectionary has a loyal following as it uses all natural ingredients in makings all its products. The ingredients have not been changed since the opening of the confectionery in 1925. With a small loyal and experienced staff, the confectionery current production was 320 kilograms per week within the month of July to a high production within December where 550 kilograms are produced weekly. There has been a steady price within all its products for quite some years with some small changes when the raw materials experience a sharp increase in prices (Ferrell, 2009). This however did not interfere with the current demand. Van der Steen confectionary had sales amounting to $1872880 and a gross margin of $608661 in the 2011 financial year. From a survey, the confectionery has more than the total number of customer being regular customer who always comes back.

Products

Distribution

The business has never advertised but relies entirely on a word of mouth and the general customers’ satisfaction. The business objective is to have a promotional budget of $110,000 within the first year and have a sales record of $2.3 million within the year. This would require the business to sell about 900 kilograms on a weekly basis and still within the current retailing prices of $12.50 for a 250 grams box.

Competition

The business aces a lot of competition from other business that were still locally small seized companies. The business has its retail shop within the confectionery factory where it serves all its customers. Joseph’s main concerns are how to reach the set goal of the business by achieving the $2.3 million sales target within the next year while make sure that the business continues to grow.

SWOT analysis

Strengths ·	Weaknesses ·
Opportunities ·	Threats ·

Discussion on SWOT Analysis

The business has a loyal following that always come back from time to time. This also happens when there are changes in prices and hence the business should try to attract more loyal customer for the god of the business.

This being a family business, there may be a weakness in management especially when the person inheriting the business has no business knowledge or background. The current owner has a business knowledge but this might not be always so for future owners. Also by the fact that the business for this entire long has not considered expanding this can be a great weakness especially when the decision of expanding will have to be effected (Cohen, 2005).

There exist numerous opportunity within the current market. There is a big opportunity within the business class demand and if meet appropriately, it will be a big success toward the business. There also exist opportunity within different market, the business should also consider selling their products in new market and even try exporting them to different regions.

The business is being threatened by the big number of competitions who produce the same products. There also exists a threat in the use artificial raw material as the business is well and widely known for its use of natural raw material in all their products. This is the main reason that the business its customers coming back again. This restricts the business to only use the natural products. This threat is currently managed by quality and the pricing of the products.

PEST analysis

Political: the political environment in Brisbane seems to be stable and encourages business. This is well portrayed by the presence of other similar business in the locality.

Environmental: By this being a confectionery business, the environment is not harmed in way.

Social: there is a good social condition within the business as the business is seen to be able to retain customers and also attract even the business class.

Technological: The business has retained its historical methods of producing products and hence the technology seems to be still intact and no more improvement is seen.

Marketing objectives

1. The main idea behind the marketing objectives is the growth of the business while increasing the total sale of the confectioneries. This is expected to be achievable through promotion of all the products and brands. Other than the use of the word-of-mouth and customers satisfaction, the business should promotes its products through advertisement in print, radio and television for an increased market demand.

2. The business should also try to reach more customers than they already do. This is quite possible by opening up other retail shops in different places. The factory can be used to supply all this different retail shop (Reider, 2008).

3. Another marketing objective is the increase on different brands of confectioneries to the current market. This will offer the customer a wide variety of products to choose from and also increase the market and sales of their products. Personalization will also be quite an effective marketing objective. Different types of people require different types of products. The confectionery should try and make different people product that are aimed in targeting different types of people. This will result in a wider market where the customers are sure to get what they want and what they like.

SMART objectives

Specific: to achieve a sales target of $2.3 million while retaining the same retail prices

Measurable: the sales target can be archived on weekly basis which will eventually transform to the whole projected sales in the year.

Achievable: this will be achievable through the sale of 900 kilograms on a weekly basis.

Realistic: this will be done through additional of staff member and increased demand or new market.

Time based: the business objective sales target should be reached before 2012.

Target markets

There exist some current trends that are to affect this business. Currently people are trying as much as possible to eat healthy. Most sweet things are associated with unhealthy eating and hence if the business will be able to make sweet but healthy products, it will be able to attract more customers and increase sales. This can be done by only using natural and healthy raw material in making of all the products.

With the current completion from the local shop around Van der Steen confectionery, fighting the competition by always being ahead will be the most crucial thing. Increasing the market share by increased retail shop and increased production with different branding will actually help the business gain a larger market share and fight its competition.

Customers groups and market segmentation

Confectioneries are mostly loved by young people; this should be main target market. However this does not mean that the older people should be forgotten. For the younger people, the business should consider including a small packaging plan for their products. The young people are able to buy small quantities of products at a go but they do it very often. Packing products in large quantities always discourages the young people. Even though, packaging product in small quantities mostly is costly, the cost can be passed to the customers who will still prefer the small sized packaging (Burns & Bush, 1998).

This also encourages the opening of other retail shop in places where there is high young population. The business people should also be a target. Mostly buy the products in several packages that are aimed for business gifts. By providing a business package that will always make sure the business people get what they need at all times, the shop will actually be a hot spot for the business class. There should also be a consideration of office delivery for the business class who cannot be able to visit the retail store. This will actually encourage the business class to always order their products preference while still in office and bring loyalty toward the business. As for the old people, an old package should be considered where they are able to get the best product that generally suits them. Some factors like old age illnesses and conditions should be considered like the use of natural sugars and fats. From all this there will be something for everyone. This will all result to an increased number in sales while creating loyal customers.

Marketing mix

Product

The product should be specific in target a certain group of people and also accommodate everyone. With a sales slogan ‘something for everyone’ every customer will be welcomed.

Price

The price should however not change except if the cost of the ingredients will demand for the change. The current price of $12.50 is quite a big distinguishing factor of Van der Steen confectionery and hence its detainment will keep its customers while offering some sense of cheap but quality products.

Place

Promotion

Increased product promotion will actually increase the sales and customers but this increased should also be prepared for, by additional workers or even more retail stores. From all the marketing objectives the target $2.3 million sales will be easily achievable and even surpassed if the recommendation are handled appropriately.

Budgets and controls

With an objective of increased sales while retaining the current retail price, a lot of factors will need change. There will be an increase in all the raw materials and at some instances; some new raw material will needed in order to archive the projected target. This will also increase the business expenditure. An increase in the staff number will also be necessary especially if the business is to expand in new territories (Holtz, 2003). To keep up with the demand of 900kilogramms per week, some two or three workers will have to be added to the existing number. The increase of staff and raw material will bring up some additional cost but this should be covered up well from the projected profits without a negative shifts.

Control mechanism and contingency plan

With all the proposed ideas and changes, a control mechanism should be in place to avoid mishaps and be able to deal with any new and unexpected outcomes. This will be like the use of current profits or saving to expand and fund the new projects other than borrowings and loans. This will be quite safe if any of the plans will not be in a position to successes.

References

Cohen, W. A. (2005). The marketing plan. Hoboken, NJ: Wiley.

Ferrell, O. C. (2009). Marketing strategy. Fort Worth, TX: Dryden Press.

Holtz, H. (2003). How to succeed as an independent consultant. New York: Wiley.

Reider, R. (2008). Effective operations and controls for the small privately held business. Hoboken, N.J: John Wiley & Sons.

Burns, A. C., & Bush, R. F. (1998). Marketing research. Upper Saddle River, N.J: Prentice Hall.