A Sample Marketing Plan Crafting a marketing plan is hard but satisfying work. When completed, a marketing plan serves as a roadmap that details the context and scope of marketing activities including, but not limited to, a mission statement, goals and objectives, a situation analysis, growth opportunities, target market(s) and marketing (mix) program, a budget, and an implementation schedule. As a written document, the plan conveys in words the analysis, ideas, and aspirations of its author pertaining to a business, product, and/or brand marketing effort. How a marketing plan is written communicates not only the substance of the marketing effort but also the professionalism of the author. Written style will not overcome limitations in substance. However, a poorly written marketing plan can detract from the perceived substance of the plan. Written and style considerations Given the importance of a carefully crafted marketing plan, authors of marketing plans adhere to certain guidelines.
The following writing and style guidelines generally apply: Use a direct, professional writing style. Use appropriate business and marketing terms without jargon. Present and future tenses with active voice are generally better than past tense and passive voice. Be positive and specific. At the same time, avoid superlatives (“terrific”, “wonderful”).
Specifics are better than glittering generalities. Use numbers for impact, justifying computations and projections with facts or reasonable quantitative assumptions where possible. Use bullet points for succinctness and emphasis. As with the list you are reading, bullets enable key points to be highlighted effectively and with great efficiency. Use “A-Level” (the first level) and “B-Level” (the second level) headings under major section headings to help readers make easy transitions from one topic to another. This also forces the writer to organize the plan more carefully. Use these headings liberally, at least once every 200 to 300 words. Use visuals where appropriate.
The Business plan on Vogue Marketing Plan In Australia
Contents 1. Executive Summary 2 2. Introduction 3 3. Research Findings 3 4. External & Internal Analysis 4 External - Market segmentation & Definition 4 External - Market Analysis 6 External - Competitor Analysis 10 Internal - Analysis of Organizational Competencies 13 SWOT Analysis 14 5. Strategic Objectives and Issues 15 Financial Objective 15 Marketing Objective 16 6.Competitive ...
Illustrations, graphs, and charts enable large amounts of information to be presented succinctly. Shoot for a plan 15 to 35 pages in length, not including financial projections and appendices. An uncomplicated small business may require only 15 pages, while a new business startup may require more than 35 pages. Use care in layout, design, and presentation. Laser or ink-jet printers give a more professional look than do dot matrix printers or typewriters. A bound report with a cover and clear title page adds professionalism. Sample five-year annotated marketing plan for paradise kitchens Inc. The marketing plan that follows for Paradise Kitchens Inc. is based on an actual plan developed by the company. The company was found in 1989, and its products entered distribution in 1990. To protect proprietary information about the company, a number of details and certain data have been altered, but the basic logic of the plan has been preserved. Various appendices are omitted due to space. Notes in the margins next to the Paradise Kitchens Inc. Marketing plan fall into two categories: 1. Substantive notes elaborate on the rationale or significance of an element in the marketing plan.
2. Writing style, format and layout notes explain the editorial or visual rationale for the element. As you read the marketing plan, you might consider adding your own notes in the margins related to the discussion in the text. For example, you may wish to compare the application of SWOT analysis and reference to “points of difference” in the Paradise Kitchens Inc. marketing plan with the discussion in Chapter 1. As you read additional chapters in the text, you may return to the marketing plan and insert additional notes pertaining to terminology used and techniques employed. The table of Contents provides quick access to the topics in the plan, usually organized by section and subsection Seen by many experts as the single most important element in the plan, the Executive Summary, with a maximum of two pages, “sells” the document to readers through its clarity and brevity. The company Description highlights the recent success of the organization.
The Essay on Complaint About Plans to Demolish the Local Market
Complaint about plans to demolish the local market Dear Councillor Philips, I am writing this letter to strongly express my objection to demolition of the historic building that houses our local market. I am outraged by the fact that the project of a new car park, planned to be built on the site of the market, has been approved by the council. The small business owners, who trade within the ...
FIVE-YEAR MARKETING PLAN Paradise Kitchens, Inc. Table of Contents 1. Executive Summary 2. Company Description Paradise Kitchens, Inc. was started in 1989 by confounders Randall F. Peters and Leach E. Peters to develop and market Howlin’ Coyote Chili, a unique line of single-serve and microwaveable Southwestern/Mexican style frozen chili products. The Howlin’ Coyote line ofchili was introduced into the Minnespolis-St. Paul market in 1990 and Phoenix in 1994. To the Company’s knowledge, Howlin’ Coyote is the only premium-quality, authentic Southwestern/Mexican style, frozen chili sold in U.S grocery stores. Its high quality has gained fast, widespread acceptance in these markets In fact, same -store sales doubled in the last year for which data are available. The Company believes the Howlin’ Coyote brand can be extended to other categories of Southwestern/Mexican food products. Paradise Kitchens believes its high-quality, highprice strategy has proven successful. This marketing plan outlines how the Company will extend its geographic coverage from 3 markets to 20 markets by the year 2003. 3. Strategic Focus and Plan This section covers three aspects of corporate strategy that influence the marketing plan: (1) the mission, (2) goals, and (3) core competence/sustainable competitive advantage of Paradise Kitchens. MISSION The mission and vision of Paradise Kitchens is to market lines of high-quality Southwestern/Mexican food products that satisfy consumers in this fast-growing segment while providing challenging career opportunities for employees and above-average return to stockholders.
The Strategic Focus and Plan sets the strategic direction for the entire organization, a direction with which proposed actions for the marketing plan must be consistent. This section is not included in all marketing plans.
The Term Paper on Product Analysis of Pepsico
History Lay’s (known as Walkers in the United Kingdom and Ireland, Chipsy in Egypt, Poca in Vietnam, Tapuchips in Israel and Sabritas in Mexico) is the brand name for a number of potato chip varieties as well as the name of the company that founded the chip brand in 1932. Lay’s chips has been marketed as a division of Frito-Lay, a company owned by PepsiCo since 1965. Other brands in ...
The Mission Statement focuses the activities of Paradise Kitchens for the stakeholder groups to be served.
The Goals section sets both the financial and non-financial targets – where possible in quantities terms – against which the company’s performance will be measured.
Lists use parallel construction to improve readability_ in this case a series of infinitives starting with “To….”
Goals For the coming five years Paradise Kitchens seeks to achieve the following goals: Nonfinancial goals 1. To retain its present image as the highest-quality line of Southwestern/Mexican products in the food categories in which it competes. 2. To enter 17 new metropolitan markets. 3. To achieve national distribution in two convenience store or supermarket chains by 2001 and five by 2003. 4. To add a new product line every third year. 5. To be among the top three chili lines_ regardless of packaging (frozen, canned) in one third of the metro markets in which it competes by 2001 and two thirds by 2003. Financial goals 1. To obtain a real (inflation adjusted) growth earnings per share of 8 percent per year over time. 2. To obtain a return on equity of at least 20 percent.
3. To have a public stock offering by the year 2001. CORE COMPETENCY AND SUSTAINABLE COMPETITIVE ADVANTAE In terms of core competency, Paradise Kitchens seeks to achieve a unique ability (1) to provide distinctive, highquality chilies and related products using Southwestern/Mexican recipes that appeal to and excite contemporary tastes for these products and (2) to deliver these products to the customer’s table using effective manufacturing and distribution systems that maintain the Company’s quality standards. To translate these core competencies into a sustainable competitive advantage, the Company will work closely with key suppliers and distributors to build the relationships and alliances necessary to satisfy the high taste standards of our customers.
The Situation Analysis is a snapshot to answer the question, “Where are we now?”
4. Situation Analysis This situation analysis starts with a snapshot of the current environment in which Paradise Kitchens finds itself by providing a brief SWOT (strengths, weaknesses, opportunities, threats) analysis. After this overview, the analysis probes everfiner levels of detail: industry, competitors, company, and consumers.
The Business plan on Whole Foods: Market Analysis
Executive Summary Whole foods has been a major natural and organic supermarket player since it was founded in 1980. It’s success can be linked to number of different factors, arguably the most valuable of which was the development of their “Whole Foods, Whole People, Whole Planet” slogan in the late 90’s. This was a key factor in their success, it outlines Whole foods most basic mission and has ...
SWOT Analysis identifies strengths, weaknesses, opportunities and threats to provide a solid foundation to identify subsequent actions in the marketing plan.
SWOT Analysis Figure 1 shows the internal and external factors affecting the market opportunities for Paradise Kitchens. Stated briefly, this SWOT analysis highlights the great strides taken by the Company in the eight years since its products first appeared on grocers’ shelves. In the Company’s favor internally are its strengths of an experienced management team and board of directors, excellent acceptance of its lines in the three metropolitan markets in which it competes, and a strong manufacturing and distribution system to serve these limited markets. Favorable external factors (opportunities) include the increasing appeal of Southwestern/Mexican foods, the strength of the upscale market for the Company’s products, and food-processing technological breakthroughs that make it easier for smaller food producers to compete. Figure 1. SWOT Analysis for Paradise Kitchens Internal Factor Management Strengths Experienced and entrepreneurial management and board Unique, high-quality, high-price products Weaknesses Small size can restrict options
Each long table, graph, or photo is given a figure number and title. If then appears as soon as possible after the first reference in the text, accommodating necessary page breaks. This also avoids breaking long tables like this one in the middle. Short tables or graphs that are less than 1.5 inches are often inserted in the text without figure numbers because they don’t cause serious problems with page breaks.
Offerings
Many lower-quality, lower- price competitors
Marketing
Personal
Distribution in 3 markets with excellent acceptance Good workforce, though small; little turnover Excellent growth in sales revenues
No national awareness or distribution Big gap if key employee leaves Limited resources may restrict growth opportunities when compared to giant competitors Lack economies of scale of huge competitors
Finance
Manufacturing
The Essay on Lancôme Cosmetic Market Analysis, Company Profile
Rich Experience in cosmetics industryLancôme has been established in cosmetics market since 1935. Lancôme products have great varieties. Its products include skincare, makeup and fragrance products. In this way, Lancôme's experience of producing many different kinds of cosmetics products has been accumulated for 66 years. This remarkable achievement can make the customers more confident of its ...
Sole supplier ensures high quality Continuing efforts to ensure quality in delivered products
R&D
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Prepared by Figure 1. SWOT Analysis for Paradise Kitchens (continued) Mai Aye Aye Aung
External Factors Consumer/Social
Opportunities Upscale market, likely to be stable; Southwestern/Mexican food category is fast-growing segment Distinctive name and packaging in its markets
Threats Premium price may limit access to mass markets
Competitive
Not patentable; competitors can attempt to duplicate product
Technological
Technical breakthroughs enable smaller food producers to achieve many economics available to large competitors Consumer income is high; convenience important to U.S households Many households “eating outs”, and bringing prepared take-out into home
Economic
The Industry Analysis section provides the backdrop for the subsequent, more detailed analysis of competition, the company’s customers. Without an in-depth understanding of the industry, the remaining analysis may be misdirected.
Legal/Regulatory
High U.S Food & Drug Admin. standards eliminate fly-by-night competitors
Among unfavorable factors, the main weakness is the limited size of Paradise Kitchens relatives to its competitors in terms of the depth of the management team, available financial resources, and national awareness and distribution of product lines. Threats include the danger that the Company’s premium prices may limit access to mass markets and competition from the “eating-out” and “take-out” markets. INDUSTRY ANALYSIS: TRENDS IN SPICY AND MECICAN FOODS
Even though relatively brief, this in-depth treatment of the Spicy Southwestern/Mexican food industry in the United States demonstrates to the plan’s readers the company’s understanding of the industry in which it competes. It gives readers confidence that the company thoroughly understands its own industry.
Total spice consumption increased 50 percent from 1985 to 1995, and consumption of spices jumped from an annual average of 2 pounds per American in 1988 to 2.7 pounds in 1994. Currently, Mexican food and ingredients are used in 64 percent of American households. Burritos, enchiladas, and taco dinner kits, which had insignificant numbers in1981, reached between 4 percent and 11 percent of American households in 1996. Age wave, Inc.’s 1998 Boomer Report also stated that Baby boomers consumed 84 percent more Mexican food in 1995 than they did in 1986.
The Essay on Kudler Fine Foods & Cardiff Seaside Market Analysis
In this paper I will talk about Kudler Fine Foods and Cardiff Seaside Market and since both the businesses are direct competitors of one another, I would compare and contrast the two businesses in order to analyze the areas where one falls short from the other. Kudler Fine Foods is a gourmet grocery store that targets the upscale customers for whom time constraint is a big issue as the store ...
According to Grocery Marketing, as the general population becomes more accustomed to different ethnic cuisines and style of eating, spicy foods and unusual flavors are turning up on the dinner tables of middle America and the aisles of supermarket, as well. As Baby Boomers grow older, their taste buds will become less sensitive, and they will want stronger-tasting foods. In addition to age, growth in population, incomes, and tastes in the American diet should continue to fuel the trend for spicy foods in the United States. Retail sales of fiery food could top$1.8 billion in the year 2000, according to Packaged Facts, up from $1 billion in 1994. These trends reflect a generally more favorable attitude toward spicy foods on the part of Americans. The Southwestern/Mexican market includes the foods shown in Figure 2. Figure2. Some Food Included in the Southwestern/ Mexican Product Category 1996 Item Percentage of Sales Sales in Millions Salsa Cheese/bean dips Refried beans Seasoning mix Chilies Taco shells Dinner kits Taco shells Enchilada sauce Other Total 39 13 9 8 7 7 5 3 2 7 100 $624 208 144 128 112 112 80 48 32 112 $1,600
This summary of sales in the Southwestern/Mexican product category shows it is significant and provides a variety of future opportunities for Paradise Kitchens.
As with the Industry Analysis, the Competitor Analysis demonstrates that the company has a realistic understanding of who its major competitors are and what their marketing strategies are. Again, a realistic assessment gives confidence to readers that subsequent marketing actions in the plan rest on a solid foundation.
COMPETITORS IN SOUTHWESTERN/MEXICAN MARKET The chili market represents $495 million in annual sales. The products fall primarily into two groups: canned chili (62 percent of sales) and dry chili (16 percent of sales).
The remaining 22 percent of sales go to frozen chili products. Besides Howlin’ Coyote, Stouffers and Marie Callender’s offer frozen chilies as part of their broad lines of frozen dinners and entrees. Major canned chili brands include Hormel, Wolf, Dennison, Stagg, Chili Man, Chili Magic, and Castleberry’s. Their retail prices range from $.99 to $1.79. Bluntly put, the major disadvantage of the segment’s dominant product, canned chili, is that it does not taste very good. A taste test described in the October 1990 issue of Consumer Reports magazine ranked 26 canned chili products “poor” to “fair” in overall sensory quality. The study concluded, “Chili doesn’t have to be hot to be good. But really good chili, hot or mild, doesn’t come out of a can.”
Dry mix brands include such familiar spicy brands as Lawry’s, McCormick, French’s, and Durkee, along with smaller offerings such as Wick Fowler’s and Carroll Shelby’s. their retail prices range from $.99 to $1.99. The Consumer Report study was more favorable about dry chili mixes, ranking them from “fair” to “very good”. The magazine recommended, “If you want good chili, make it with fresh ingredients and one of the seasoning mixes we tested.” A major drawback of dry mixes is that they require the preparers to add their own meets, beans, and tomatoes and take more preparation time than canned or frozen chilies. The Consumer Reports study did not include the frozen chili entrees from Stouffer’s or Marie Callender’s (Howlin’ Coyote was not yet on the market at the time of the test).
However, it is fair to say that these products _ consisting of ground beef, chili beans, and tomato sauce _are of average quality. Furthermore, they are not singled out for special marketing or promotional programs by their manufacturers. Marie Callender’s (including cornbread) retails for $3.09, and Stouffer’s retails for $2.99. COMPANY ANALYSIS The Company Analysis provides details of the company’s strengths and marketing strategies that will enable it to achieve the mission and goals identified earlier.
The husband-and-wife team that cofounded Paradise Kitchens, Inc. in 1989 has 44 years of experience between them in the food-processing business. Both have played key roles in the management of the Pillsbury Company. They are being advised by a highly seasoned group of business professionals who have extensive understanding of the requirements for new product development. Currently, Howlin’ Coyote products compete in the chili and Mexican frozen entrée segments of the Southwestern/Mexican food market. While the chili obviously competes as a stand-alone product, its exceptional quality means it can complement such dishes as burritos, nachos, and enchiladas and can be readily used as a something sauce for pasta, rice or potatoes. This flexibility of use is relatively rare in the prepared food marketplace. With Howlin’ Coyote, Paradise Kitchens is broadening the position of frozen chili in a way that can lead to impressive market share for the new product category.
This “introductory overview” sentence tells the reader the topics covered in the section_ in this case customer characteristics and health and nutrition concerns. While this sentence may be omitted in short memos or plans, it helps readers see where the text is leading. These sentences are used throughout this plan.
The Company now uses a single outside producer with which it works closely to maintain the consistently high quality required in its products. The greater volume has increased production efficiencies. Resulting in a steady decrease in the cost of goods sold. CUSTOMER ANALYSIS In terms of customer analysis, this section describes (1) the characteristics of customers expected to buy Howlin’ Coyote products and (2) health and nutrition concerns of Americans today. Customer Characteristics. Demographically, chili products in general are purchased by consumers representing a broad range of socioeconomic backgrounds. Howlin’ Coyote chili is purchased chiefly by consumers who have achieved higher levels of education and whose income is $30,000 and higher. These consumers represent 57 percent of canned and dry mix chili users. The household buying Howlin’ Coyote has one to three people in it. Among married couples, Howlin’ Coyote is predominantly bought by households in which both spouses work.
While women are a majority of the buyers, single men represent a significant segment. Anecdotally, Howlin’ Coyote has heard from fathers to teenaged boys who say they keep a freezer stocked with the chili because the boys devour it. Because the chili offers a quick way to make a tasty meal, the product’s biggest users tend to be those most pressed for time. Howlin’ Coyote’s premium pricing also means that its purchasers are skewed toward the higher end of the income range. Buyers range in age from 25 to 55. Because consumers in the western United States have adopted spicy foods more readily than the rest of the country, Howlin’ Coyote’s initial marketing expansion efforts will be concentrated in that region.
The higher-level “A heading” of Customer Analysis has a more dominant typeface and position than the lower-level “B heading” of Customer Characteristics. These headings introduce the reader to the sequence and level of topics covered.
Satisfying customers and providing genuine value to them is why organization exist in a market economy. This section addresses the question of “Who are the customers for Paradise Kitchens’ products?”
This section demonstrates the company’s insights into a major trend that has a potentially large impact.
Health and Nutrition Concerns. Coverage of food issues in the U.S. media is often erratic and occasionally alarmist. Because Americans are concerned about their diets, studies from organizations of widely varying credibility frequently receive significant attention from the major news organizations. For instance, a study of fat levels of movie popcorn was reported in all major media. Similarly, studies on the healthfulness of Mexican and Southwestern-style food had been widely reported and often exaggerated. Less certain is the link between these reports and consumer buying behavior. Most indications are that while Americans are well-versed in dietary matters, they are not significantly changing their eating patterns. The experience of other food manufacturers is that Americans expect certain foods to be high in calories and are not drawn to those that claim to be low-calorie versions. Low-fat frozen pizza was a flop.
Therefore, while Howlin’ Coyote is already lower in calories, fat, and sodium than its competitors, those qualities are not being stressed in its promotions. Instead, in the apace and time available for promotions, Howlin’ Coyote’s taste, convenience, and flexibility are stressed. 5. Product-Market Focus The section describes the five-year marketing and product objectives for Paradise Kitchens and the target markets, points of difference, and positioning of its lines of Howlin’ Coyote chilies. MARKETING AND PRODUCT OBJECTIVES Howlin’ Coyote’s marketing intent is to take full advantage of its brand potential while building a base from which other revenue sources can be mined-both in and out of the retail grocery business. These are detailed in four areas below:
The chances of success for a new product are significantly increased if objectives are set for the product itself and if target market segments are identified for it. This section makes these explicit for Paradise Kitchens. The objectives also serve as the planned targets against which marketing activities are measured in program implementation and control.
Current markets. Current markets will be grown by expanding brand and flavor distribution at the retail level. In addition, same-store sales will be grown by increasing consumer awareness and repeat purchases. With this increase in same-store sales, the more desirable broker/warehouse distribution channel will become available, increasing efficiency and saving costs.
New markets. By the end of Year 5, the chili and salsa business will be expanded to a total of 20 metropolitan areas. This will represent 72 percent of U.S. food store sales. Food service. Food service sales will include chili products and smothering sauces. Sales are expected to reach $693,000 by the end of Year 3 and $1.5 million by the end of Year 5. New products. Howlin’ Coyote’s brand presence will be expanded at the retail level through the addition of new products in the frozen-foods section. This will be accomplished through new potential products. These products will be brought to market in Years 2 and 3. Additionally, the brand may be licensed in select categories.
This section identifies the specific niches or target markets toward which the company’s products are directed. When appropriate and when space permits, this section often includes a production-market matrix.
TARGET MARKETS The primary target market for Howlin’ Coyote products is households with one to three people, where often both adults work, with household income typically above $30,000 per year. These household incomes experienced, adventurous consumers of Southwestern/ Mexican food and want premium quality products. POINTS OF DIFFERENCE The “points of difference” – characteristics that make Howlin’ Coyote chilies unique relative to competitors – fall into three important areas: Unique taste and convenience. No known competitor offers a high-quality, “authentic” frozen chili in a range of flavors. And no existing chili has the same combination of quick preparation and home-style taste. Taste trends. The American palate is increasingly intrigued by hot spices, and Howlin’ Coyote brands offer more “kick” than most other prepared chilies. Premium packaging. Howlin’ Coyote’s high-value packaging graphics convey the unique, high-quality product contained inside and the product’s nontraditional positioning.
An organization cannot grow by offering only “me-too products.” The greatest single factor in a new product’s failure is the lack of significant “points of difference” that set it apart from competitors’ substitutes. This section makes these points of difference explicit.
A positioning strategy helps communicate the company’s unique points of difference of its products to prospective customers in a simple, clear way. This section describes this positioning.
Prepared by Mai Aye Aye Aung
POSITIONING In the past chili products have been either convenient or tasty, but not both. Howlin ‘Coyote pairs these two desirable characteristics to obtain a positioning in consumers’ minds as very high-quality “authentic Southwestern/Mexican tasting “chilies that can be prepared easily and quickly. 6. Marketing Program The four marketing mix elements of the Howlin ‘Coyote chili marketing program are detailed below. Note that “chile” is the vegetable and “chili” is the dish. PRODUCT STRATEGY After first summarizing the product line, the approach to product quality and packaging is covered.
Everything that has gone before in the marketing plan sets the stage for the marketing mix actions covered in the marketing
This section describes in detail three key elements of the company’s product strategy: the product line, its quality and how this is achieved, and its “cutting edge” packaging.
Product line. Howlin ‘Coyote chili, retailing for $2.99 for a 10- or 11.5-ounce serving , is available in five flavors. The five are: Green Chile Chili: braised extra-lean pork with fire-roasted green chilies, onions, tomato chunks, bold spices, and jalapeno peppers, based on a Southwestern favorite. Red Chile Chili: extra –learn cubed pork, deep-red acho chilies, and sweet onions; known as the “Texas Bowl of Red”. Beef and Black Bean Chili: lean braised beef with black beans, tomato chunks, and Howlin ‘Coyote’s own blend of red chilies and authentic spicing. Chicken Chunk Chili: hearty chunks of tender chicken, fire roasted green chilies, black beans, pinto beans, diced onions, and zesty spices. Mean Bean Chili: vegetarian, with nine distinctive bean varieties and fire-roasted green chilies, tomato chunks, onion, and a robust blend of spices and rich red chilies.
Using parallel structure, this bulleted list presents the product line efficiently and crisply.
Unique Product Quality. The flavoring systems of the Howlin ‘Coyote chilies are proprietary. The products’ tastiness is due to extra care lavished upon the ingredients during production. The ingredients used are of unusually high quality. Meats are low-fat cuts and are fresh, not frozen, to preserve cell structure and moistness. Chilies are fireroasted for fresher taste, not the canned variety used by more mainstream products. Tomatoes and vegetables are select quality. No preservations or artificial flavors are used.
This Price Strategy section makes the company’s price point very clear, along with its price position relative to potential substitutes and when appropriate and when space permits, this section might contain a break- even analysis.
Packaging Reflection the “cutting edge” marketing strategy of its producers, Howlin’Coyote bucks conventional wisdom in packaging. It avoids predictable photographs of the product on its containers. (Head on any grocer’s freezer and you will be hard-pressed to find a product that does not feature a heavily stylized photograph of the content.) Instead, Howlin’Coyote’s package show a southwestern motif that communicates the product’s out-of-the-ordinary positioning. This approach signals the product’s nontraditional qualities: “adventurous” eating with minimal fuss- a frozen meal for people who do not normally enjoy frozen meals. PRICE STRATEGY Howlin’coyote Chili is, at$2.99 for a 10 to11.5 ounce package, priced comparably to the other frozen offering and higher than the canned and dried chili varieties. However, the significant than taste advantages it has over canned chilies and the convenience advantages over dried chilies justify this pricing stratagem. PROMOTION STRATAGE Key promotion programs in-store demonstrations, recipes, and cent-off coupons.
In-store Demonstrations. In-store demonstrations will be conducted to give consumers a chance to try Howlin’Coyote products and learn about their unique qualities . Demons will be conducted regularly in all markets to increase awareness and tri purchases. Recipes. Because the products’ flexibility of use is a key selling point, recipes will be offered to consumers to stimulate use. The recipes will be given at all in-store demonstrations, on the back of packages, and through a mail-in recipe book offer. In addition, recipes will be included in coupons sent by direct –mail or free-standing inserts. For new markets, recipes will be included on in –pack coupon inserts. Cents-Off Coupons. To generate trial and repeat purchase of Howlin’Coyote products, coupons will be distributed in four ways: In Sunday newspaper inserts. Inserts are highly read and will help generate awareness. Coupled with in-store.
Elements of the Promotion Straregy are highlighted here with B-heading in terms of the three key promotional activities the company is emphasizing for its product line: in-store demonstrations, recipes featuring its Howlin’Coyote chilies and cent-off coupons.
Demonstrations, this has been a very successfulPrepared by Mai Aye Aye Aung technique so far. Another bulleted list adds many details for the reader, including methods of gaining customer awareness, trial and repeat purchase as Howlin’Coyote enters new metropolitan areas. In – pack coupons. Inside each box of Howlin’Coyote chili will be coupons for $ 1 off two more packages of chili. These coupons will be included for the three months the product is shipped to a new market. Doing so encourages repeat purchases by new users. Direct-mail chili coupons. Those households that fit the Howlin’Coyote demographics describe above will be mailed coupons. This is likely to be an efficient promotion due to its greater audience selectivity. In-store demonstrations. Coupons will be passed out at in-store demonstrations. Coupons to give an additional incentive to purchase.
The Distribution Strategy is described here in terms of both ( 1 ) the present method and(2)the new one to be used when the increase sales volume makes it feasible.
DISTRIBUTION STRATEGY Howlin’ Coyote is distributed in its present markets through a food distributor. The distributor buys the product, warehouse it, and then resells and delivers it to grocery retailers on a store by store basis .This is typical for products that have moderate sales compared with, say, staples like milk or bread .As sales grow, we will shift to a more efficient system using a broker who sells the products to retail chains and grocery wholesalers. 7. Financial Data and Projections
All in the marketing mix decisions covered in the marketing program have both revenue and expense effects. These are summarized in this section of the marketing plan.
PAST SALES REVENUES Historically, Howlin’ Coyote has had a steady increase in sales revenues since its introduction in 1990. In 1994, sales jumped, due largely to new promotion strategies. Sales have continued to rise during the last four years, but at a less dramatic rate. The trend in sales revenues appears in figure 3. Fingure3. Sales Revenues for Paradise Kitchens, Inc. Sales Revenues ($1,000) 5123
FIVE-YEAR PROJECTIONS Because this table is very short, it is woven into the text, rather than given a table number and title. Five-year projections for Paradise Kitchens appear below: Projections Financial Element Cases sold Net sales Gross profit Selling and general and admin expenses Operating profit (loss) Units 1,000 $1,000 $1,000 Actual 1998 353 5,123 2,545 Year 1 1999 684 9,913 4,820 Year 2 1999 889 12,884 6,527 Year 3 2000 1,249 18,111 8,831 Year 4 2001 1,499 21,7333 10,597 Year 5 2002 1,799 26,080 12,717
The five-year Financial Projections section starts with the judgment forecast of cases sold and the resulting net sales. Gross profit and then operating profit- critical for the company’s survival -are projected. An actual plan often contains many pages of computer-generated spreadsheet projections,
usually shown in an appendix to the plan.
$1,000 $1,000
2,206 339
3,835 985
3,621 2,906
6,026 2,805
7,231 3,366
8,678 4,039
These projections reflect the continuing growth in number of cases sold (with 8 packages of Howlin’ Coyote chili per case) and increasing production and distribution economies of scale as sales volume increases.
8. Implementation Plan The implementation Plan shows how the company will turn plans into results. Gantt charts are often used to set deadlines and assign responsibilities for the many tactical marketing decisions needed to enter a new market. Introducing Howlin’ Coyote chilies to new metropolitan areas is a complex task and requires that creative promotional activities gain consumer awareness and initial trial among the target market households identified earlier. The anticipated rollout schedule to enter these metropolitan markets appears in Figure 4. Figure 4. Rollout Schedule to Enter New U.S. Markets New Markets Added The essence of Evaluation and Control is comparing actual sales with the targeted values set in the plan and taking appropriate actions. Note that the section briefly describes a contingency plan for alternative actions, depending on how successful the entry into a new market turns out to be. Year Today (1998) Year 1 (1999) Year 2 (2000) Year 3 (2001) Year 4 (2002) Year 5 (2003) 2 3 4 2 3 3 Cumulative Markets 5 8 12 14 17 20 Cumulative Percentage of U.S. Market 16 21 29 37 45 53
The diverse regional tastes in chili will be monitored carefully to access whether minor modifications may be required in the chili recipes. For example, what is seen as “hot” in Boston may not be seen as Dallas. As the rollout to new metropolitan areas continues, Paradise Kitchens will assess manufacturing and distribution tradeoffs. This is important in determining where to start new production with selected high-quality regional contract packers.
9. Evaluation and Control Monthly sales targets in cases have been set for Howlin’ Coyote chili for each metropolitan area. Actual case sales will be compared with these targets and tactical marketing programs modified to reflect the unique sets of factors in each metropolitan area. The speed of the roll out program may increase or decrease; depending on Paradise Kitchens’ performance in the successive metropolitan markets it enters. Similarly as described above in the section on the implementation plan, Paradise Kitchens may elect to respond to variations in regional tastes by using contract packers, which will reduce transportation and warehousing costs but will require special efforts to monitor production quality.
Various appendices may appear at the end of the plan, depending on the purpose and audience for them. For example, detailed financial spreadsheets often appear in an appendix.
