Essays on Business Plan for Bouncing Babies, a Baby Food Brand in the UK Case Study

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The paper "Business Plan for Bouncing Babies, a Baby Food Brand in the UK" is a great example of a marketing case study.   The baby food market consists mainly of baby cereals, baby snacks, bottled and canned baby food and others. The leading suppliers of baby food in the United Kingdom are global players, H.J Heinz and Company, Royal Numico and Hipp (researchandmarkets. com, 2006). In order to enter this market that is controlled by large global players, a new player needs to understand the macro and microenvironment of the business carefully and design its marketing strategy accordingly.

In this paper, I will design such a market entry strategy for Bouncing Babies, a brand of baby food to be launched by Freez-Wiz, a small but established manufacturer of frozen foods in the UK. As the company already has distribution channels through retailers like Co-op, Kwik-Save and Aldi, they can use the same retailers or tie-up with other supermarket chains. The product After a market survey, Freez-Wiz has decided to launch the brand, “ Bouncing Babies” , an organic frozen baby food packed in 250 gm micro-safe, tamper-proof trays.

There will be two ranges of the product – 1) for babies aged 4-10 months, 2) toddlers above 10 months. The product will be entirely natural, with no artificial ingredient. Besides, all products will be Halal in order to cater to the immigrant Muslim community. The packs will be divided into two counters so that the entire amount does not need to be heated at one go. To enter a new market and thereby evolve a winning strategy, the company needs to innovate a product. The diffusion of innovation was first theorized by Rogers (1962).

He defined innovation as a product, service or idea perceived as new by the customer. The innovation is adopted on the basis of relative advantage, compatibility, observability, trialability and complexity. Bouncing Babies is an innovative product that incorporates organic and Halal qualities. These criteria provide a relative advantage to the Asian Muslim consumers, compatibility to the dietary characteristics, observable in the convenience, traceable on account of the cheap price and least complex as the product has a limited range. The Unique Selling Proposition (USP) of Bouncing Babies is the organic nature of the product that is produced without the use of pesticides.

Since infants consume much more food per unit of weight than adults do, the presence of pesticides becomes a concern more for babies since it leads to a larger amount of toxic intake. A baby food manufacturer has to recognize the fact that it cannot reap profits by increasing volumes of sales, as a result of the unavoidable fact of birth rate decline, hence it has to focus on quality and product differentiation. It is estimated that the baby food market worldwide, including that in Britain, will remain stagnant over the next few years because the birth rate is on the decline yet there is a shift from processed to organic baby food.

Although organic baby food, in general, is about 69 per cent higher in costs, organic baby food sales increased globally by 60 per cent over 2000 to 2005 (brandchannel, 2008). In 2007, organic food sales worldwide grew by 16 per cent to $268 million while overall baby food sales grew by 3 per cent to $3.7 billion (Nutrition Business Journal, 2008).

The demand for organic food has been boosted by the health consciousness of people and mothers want to give their babies natural and healthy food. This is the main attraction of the Bouncing Babies product. The UK organic baby food market is not as competitive as that in the US. The main players in this segment of baby food are Germany’ s Hipp and UK’ s Organix, Cow and Gate beside the other smaller UK players like Fresh Daisy, So Baby and Truly Scrumptious (Branchannel, 2008, ethicalconsumer).

Other baby food producers also have one or a few organic products in their range.

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