RESERVED FOR HIFSA SHAUKAT

1

Running head: MARKETING PLAN

MARKETING PLAN 5

Marketing Plan

Rana Liberta Nurfahmy

INTO University of East Anglia

4/2/2016

Proffesional communication and skills

Intended for tracy woods

Word count: 1796

 

Marketing plan

Executive summary

Research shows that there are no sufficient spice shops in Norwich City, which culminated in the idea of starting a business to cater to this market. The aim of the enterprise is to make spices available in a retail shop. Prices will follow as per the weight of the bought product and pre-orders accepted for large quantities bought at once. Spice shop intends to offer the spices in whole and customers have the option of having their spices grounded. Additionally, spice drinks will be offered and so will free Wi-Fi to cater for the tech-savvy customers. The incentives are geared towards ensuring that prospective customers are found and retained. The aim of the business is to make sure that customer gets the best value for their money.

Target customer

Statistics indicate that the demographics lean more towards females than male and middle-aged people than those of the younger group. 31 out of 51 female and 21 out of 48 male people polled used spices for cooking. The numbers show that there is the large potential market for the spice business in Norwich (McDonald, 2008). Out of the 99 respondents polled, 52 of them cook with spices, a figure that is more than half, further proving that there is an enormous market for spices.

According to the respondents, a lot of people between ages 15-40 said that they do not often cook but only do when it is extremely necessary. The reason behind that is that they could be university or college students (Chandler, 2013). More so, people between the ages of 41 to 50 reported to cook always. Looking at the age to gender demographics, the conclusion is that the primary focus should be on the people of middle age from 20 and above, who cook more often at home thus have a higher chance of using spices when cooking. At the same time, women are more likely to be targeted by the spice shop as they are more inclined to cook than men. Competitor Analysis

Direct

1. Herb and spice shop located in the norwich market. 1 Market Pl, Norwich NR2 1ND

Pricing strategy:They keep their prices at reasonable levels, They do not sell their products at really low prices because it would create the assumption that their products are inferior and off low quality but they maintain it at a reasonable price and not at a high so as to not drive away the customers that they attract. The prices of all their products vary because it depends on their product but it is between the 1.66-4.00 gbp per 100 gram price range

Promotional strategy: The promotional strategy of their business is very limited. The business used the norwich city council website as their primary form of advertisement one can find the business information readily available on the city council website. Placing it on the city council website helps this business keep cost low and it attracts customers because the city council website is a directory fo all those in norwich. Beyond that the business employs word of mouth and flyers.

Place strategy: The herb and spice shop places their stall within the norwich city center making it readily avaible. Their location places them within the cities center where the community of norwich frequently visits sorrounding them is also working places making it accesible to the working middle class making it accesible for them,students also frequently visit that area and the elderly population of norwich do a large part of their shopping within the norwich market.

Product strategy: They offer a large variety of spices to fill the needs of their consumers from vanilla pods to turkish figs beyond that they also provide dried beans and dried fruit. This creates options for the customers.

Indirect

indirect competitors will be the other grocers who sell spices but they are not specialized in selling spices. Such stores include Asda,Morrison,Spice land, Tesco to name a few. The large scale competitors we have are placed in various locations which make it convienet for the consumer, they also operate on a large scale so the business cannot compete with them, their promotional advertising is also very similar to one another with expensive tv ads, etc, their products are also priced very cheap with their spice products in the 1-4 GBP price range. The smaller scale one such as spice land is also located where it is convienient

Unique Selling Proposition

A business is known mostly by what it stands for. Customers associate themselves with a brand by what it offers differently from others. For that reason, spice shop has decided to use the phrase “To bring flavor to your life.” This selling proposition is unique in the sense that it inspires people who are not experienced in cooking to want to get involved in cooking as they believe that their skills will be ‘enhanced’ if they use spices (McDonald, 2007). The sales proposition can also inspire people who do not like cooking often to consider doing it more. Such a move drives more customers to the business as the scope widens regarding demographics. The choice of the sales proposition is unique as prospective customers will have an easier means of connecting with the brand.

Pricing and positioning strategy

On the pricing front, the strategy to be adopted is that of price to weight system. This system is based on the premise that quantities commensurate with price, the argument being that all the products are of the same quality or value. The pricing for the by weight system will be priced slighlty lower than our main competitor and according to our primary research consumers are willing to pay between 1-4 Gbp, So we will set it at a reasonable price point of 1.55-4.00 gbp per 100G so we can give the best value for money and stay competitive.

With regards to positioning, Norwich City does not have a defined market for spices. Most of the spices available are in the open markets where general groceries are sold such as tesco, asda, spiceland (McDonald, 2008). The business will be located within one of the norwich lanes specifically in bethel street it fits our business because it is filled with other independent retailers so the business doesnt have to compete the other large retailers, it is also located near the city hall, the forum libary and it is also within the city center where people frequently visit to shop which can increase our exposure and sales. It is also convienent for consumers because there are many bustops near that area and it is a 5 minute walk from the bustop to bethel street. The area is also very pedestrian friendly with pathways within the area.

Distribution Plan

Spice shop is a start-up enterprise, and so there will be two modes of distribution that will be rolled out. First the store will be the central point of distribution as customers will buy the spices directly from the shop (Westwood, 2013). The other mode of distribution will be through the internet as spice shop has a website through which purchases can be made.

Product

Spice shop intends to hit aggressively the market by offering customers an array of products and services that will bring them back as referrals. First, pre-orders will be provided for customers who choose to buy spices in bulk (Chandler, 2013). The other offer that spice shop is offering is free Wi-Fi for customers who come to the premise. Spice shop will not only sell spices but also include herbs, grains and seeds into its stock to increase variety and attract a larger group of prospective customer’s .To further increase variety, spice shop will also offer spice drinks and snacks that will cater for on spot and beverage services (McDonald, 2007)

Promotion

The budget allocated for the promotion services is 20,000 Great Britain Pounds (Stephanie, 2009) Having the information on the behavioral patterns of people in Norwich City from the surveys, it is clear that more women are likely to be the expected customers. Marketing the enterprise will be mostly through the internet as more people tend to look for information about products on the internet to achieve this we will develop a website with information regarding our store which will cost 4,000 GBP(Parr, 2014). This mode of marketing has proved to be the most efficient in the success of many enterprises in the city.

Given that women are most likely to comprise the majority of customers at the spice shop, fancy brochures will be made to attract them The brochures will cost around 40-60 GBP each. Using colorful brochures to market the spice store will be effective as most women are predisposed to fancy and colorful things (McDonald, 2008). The brochures and flyers will be placed in places where people frequently such as The norwich market,London street,and major shopping malls such as intu chapel field (Norflok, 2014) . Catching the attention of the prospective customers will ensure that they visit the store and get a feel of what is offered. In the brochure will also be the location of the shop as is on the store’s website.

Conclusion:

The marketing plan has looked at a broad range of aspects which will increase the rate of sucess of the business. Though the marketing plan has looked extensively at various aspects such as distributional plans, promotional strategy and so on. It is without weakness,The promotional strategy could be more varied this might reduces business exposure and thus reduce sales but if the avaible options for promotion are used optimally then all goes well. The Price range is not as focused due to the large quantity of different products which will make it difficult to set the precise price point and it will interferre with the aim of the business. The location might aslo turn out to be an issue even though there is no major large retail competitor within the area there will be a large amount of other independent retailers that we have to compete with and it is also in close promixity with our direct competitor .But our strenght being at a more competitive price point,the added varietyof confectionaries and also being relatively new, helps us balance out the negatives. All in all even though there will be challenges along the way, but if the marketing strategies are used effectively the business will suceed.

Appendix.1 location of store

Appendix.2 location of herb and spice store

Appendix 3.

Appendix 4. Total men and women who cook is 52

appendix 4

Appendix 5.

Promotion	Time span and units	Price
Website	12 months	4,000 GBP
Brochure	100 brochures	100 units X 50 GBP= 5,000

Total spending

Website 4,000 + Brochures 5,000

9,000 gbp

References

Barrow, C. (2009). Business plans for dummies. Hoboken, N.J: For Dummies.

Browder, S. and Browder, S. (2012). 5 Top Reasons Why a Good Website Is Crucial for Business. [online] Shetakesontheworld.com. http://www.shetakesontheworld.com/2012/12/5-top-reasons-website-beneficial-business/

Communications and Council, N.C. (2015) Wholefoods, herbs and spices. Available at: http://www.norwich.gov.uk/NorwichMarket/MarketStalls/Pages/Wholefoods,herbsandspices.aspx (Accessed: 1 February 2016).

Chandler, S. (2013). The nonfiction book marketing plan: Online and offline promotion strategies to build your audience and sell more books.

Dibb, S., & Simkin, L. (2008). Marketing planning: A workbook for marketing managers. London: South-Western Cengage Learning.

Graphicdesigner2b.co.uk, (2016). Prices. [online] Available at:http://www.graphicdesigner2b.co.uk/prices

Lee, J. (2011). The right-brain business plan: A creative, visual map for success. Novato, Calif: New World Library

McDonald, M. (2008). Malcolm McDonald on marketing planning: Understanding marketing plans and strategy. London: Kogan Page

McDonald, M. (2007). Marketing Plans: How to Prepare Them, How to Use Them. Burlington: Elsevier.

McKeever, M. P. (2015). How to write a business plan.

Norflok, T. (2014) Norwich shopping guided picture tour http://www.visitnorwich.co.uk/get-to-know/a-rich-history-/norwich-attractions/

Parr, R. (2014). How Much Does It Cost To Build A Website In 2014?. [online] Executionists

Pinson, L. (2008). Anatomy of a business plan: A step-by-step guide to building the business and securing your company's future. Tustin, CA: Out of Your Mind & into the Marketplace.

Project Timing, Marketing Plan, and Offshore Molding. (January 01, 2014). 55-67.

Blog. Available at: http://www.executionists.com/blog/cost-to-build-websites-2014/ [

Ramsey, D., & Windhaus, S. (2009). The everything business plan book: All you need to succeed in a new or growing business. Avon, Mass: Adams Media Corp.

Rogoff, E. G. (2007). Bankable business plans. New York, NY: Rowhouse Pub.

Sorger, S. (2012). Marketing planning: Where strategy meets action. Boston: Pearson.

.

Sahlman, W. A. (2008). How to write a great business plan. Boston, Mass: Harvard Business School Press.

Westwood, J. (2013). How to write a marketing plan. London: Kogan Page.

Yeoman, I., & McMahon-Beattie, U. (February 01, 2005). Developing a scenario planning process using a blank piece of paper. Tourism and Hospitality Research, 5, 3, 273-285.

Graphicdesigner2b.co.uk, (2016). Prices. [online] Available at:http://www.graphicdesigner2b.co.uk/prices