Marketing Plan for Joeys - Case Study Example

Marketing Plan for Joey’s Executive Summary The following report outlines a marketing plan for Joey. Joey was established in Australia in 2008 and has cut an impressive market niche in the production of Oriental-style sushi in the last five years. For the short period that the company has been operating in Australia, its growth has been hampered by a number of external and internal factors, which have prompted the management to focus on new and innovative ways of doing business. As a summary, the report finds that Joey needs to expand the scope of its marketing initiatives in order to reap the potentials offered by the Australian market. To achieve this, it is important that the company understands the nature of business environment so as to implement sound marketing strategies. A key step for Joey’s successful market entry is for the company to develop a market plan. A well implemented business plan will help the company analyse business ideas in light of the market needs and develop contingency plans for the problems that may occur during the business journey. Table of Contents Marketing Plan for Joey’s 1 Executive Summary 1 1.INTRODUCTION 4 1.1 Company Background 4 1.2 Marketing Planning 4 1.3 Strategic Marketing Objectives 6 2.1 Internal Resource Assessment 7 2.2 External Environment Analysis 7 2.3 General Economic Environment Analysis 8 2.4 Customer Analysis 8 2.5 Analysis of Internal Strengths and Threats 8 2.6 Marketing Strengths 9 3.1 Market Analysis Summary 9 3.2 Market Segmentation 10 3.3 Market Plan Implementation 10 4. CURRENT AND FUTURE OPPORTUNITIES AND THREATS RELATED TO MARKETING 11 4.1 Strategies for Overcoming Competitive Forces 11 4.2 Marketing Strategy and Action Plan 11 ii.Stress Special Features: Joey’s shall strive to make its products stand out from those of the competitors. This important marketing strategy will be achieved by offering food products in different flavours and with different ingredients. These initiatives will be supported by enhancing the quality of packaging. 12 iii.Create a Niche: the company aims to create a market niche for it products. The management is considering green production, organic foods and medically helpful food products. The management will also consider certain demographic characteristics such as age, which will help boost its product appeal. 12 iv.Development of a promotional strategy: this will have major impacts on Joey’s marketing plan. The company will use different means available to get the product to the market and these will include print campaigns, internet advertisements and television spots. The company will make use of social sites to make its products known to a wide range of customers including the teens. 12 4.3 Marketing Mix of Joey’s 13 This marketing plan has created a framework upon which Joey’s can base its marketing operations. The plan has provided a detailed discussion of the company’s internal and external environment, customer analysis and competitor analysis. The findings indicate that Joey’s has some serious weaknesses, which may adversely impact on its business growth and hence the realization of strategic objectives. One of these weaknesses is that the company is small and has a small financial base, which may not allow quick expansion. Nevertheless, the company’s management is determined to expand the scope of the company’s geographical coverage. The initiative will see the company open up new production and distribution channels in Brisbane and other cities. This strategic move will boost the company’s marketing efforts by facilitating market penetration. The company needs to make efforts to improve the marketing experience as this will be important for brand building, customer loyalty and realization of the company’s long-term strategic objectives. 16 References 16 1. INTRODUCTION 1.1 Company Background Joey’s is a start up company in Australia that offers sushi rolls. The company has been operating in Brisbane since 2008 and aims to differentiate its services by embracing the highest levels of safety and health standards and offering authentic Japanese sushi taste. Although the company is committed to increasing service quality, its revenue is slightly small. This is because of the company’s small scale and the management’s failure to implement effective marketing strategies. Nevertheless, the company’s management has invested enough resources to ensure that it offers high quality products. The company’s increased profitability since 2010 is testimony to these efforts. 1.2 Marketing Planning Market planning refers to the processes that yield information for making decisions on how best a business can compete in the market it serves (Pratley, 2001). A well implemented market plan has a number of components which include pricing strategy. An important business processes that impacts on the pricings strategy and hence the overall marketing pan is distribution. Distribution refers to the method and procedures that a business uses to get its products and services to the market. Successful market planning has to look at both intensive and exclusive distributions. Sims (2003) has explained that a successfully designed and implemented market plan is key to the overall success of a business initiative. Its purpose is to maximize a business’ profits and increase market share for long-term growth and survival. As business environment changes or new opportunities crop up, a business marketing requirements and strategies tend to change. Without a comprehensive, succinct and well thought plan that serves as a guide in the marketing program, a business cannot compete effectively or realize short-term objectives. When developing a marketing plan, the first thing that a marketing manager should do is extensive market research (Smith, 1999). This process involves collecting information about various aspects of the business’ environment, both internal and external. This can involve information on existing and potential customer needs, preferences, desires and wants. It also involves collecting information about any other characteristics that can help identify the right target market such as geographic distribution, age, religion, sex and buying behavior of customers. Thorsten (2000) has explained in his book that the more extensive the market research is the easier and more effective the market planning. The main reason why market research is done is to know who the customers are (both current and prospective) and what their needs are so that the business can best fulfill them. Once the market research has been done successfully and the marketing manager and planners have a clear view of the nature of customer needs, the product can be orientated to the market (Pratley, 2001). This objective is achieved through the use marketing mix, which are product, place, price and promotion. All these elements must be considered when developing a marketing strategy for an identified market segment or target group. Smith (1999) has discussed six ways in which market planning contributes to improvement of organization performance. These are: i. Market planning helps ensure that all activities related to marketing are properly integrated and focused. ii. It enables employees to have a sense of direction and work towards achieving strategic objectives. iii. It helps a business to take advantage of market opportunities such as collapse of rival firms or technological changes. iv. Marketing planning help ensure that a business remains healthy and able to compete for the future by preparing against possible problems. v. Market planning helps put a business in good position to react to unexpected changes in the market or industry. vi. It also helps market team to identify the right market mix. 1.3 Strategic Marketing Objectives Joey’s marketing objectives are pegged on enhancing business growth, overall profitability and achievement of competitive advantages. All these will be realized by capitalizing on opportunities presented by the diversity of Australia’s population and by developing well planned marketing strategies. In particular, Joey’s aims to achieve the following marketing objectives: i. To increase market share by expanding the scope of target market and by offering competitive and innovative products. ii. To expand investment in research and development programs related to marketing. To achieve this objective, the company has recognized the need to engage the services of experts in conducting R&D programs. iii. To continually boost production capacity based on customer feedbacks and current market needs and by increasing customer base. iv. To achieve increased competitive advantages in marketing. To achieve this objective, Joey’s has embarked on training its employees, more especially the sales team on the best marketing strategies. 2. SCOPE OF THE MARKETING PLAN 2.1 Internal Resource Assessment Joey is currently operating on a gradual growth trend and its financial performance has increased considerably. The company employs a very efficient production system, which it complements with the efforts of its skilled and committed employees. Although the company has employed about fifteen employees to assist in different areas of production and marketing functions, the owner is responsible for supervising most of the company’s operations. The company lacks a skilled sales team to oversee the marketing of its products. Joey’s is currently in the process of expanding its business scale to match the increasing market needs and realize strategic objectives. 2.2 External Environment Analysis Joey’s success in the Australian food retail industry is subject to a number of external factors such as stiff competition from established companies and changes in economic patterns which affect commodity prices and influence changes in lifestyles. All businesses in Australia work under strict government regulations requiring adherence to statutory legislations. Changes in technology are another important factor that affects the company’s performance. The company is considering employing the latest technology to facilitate the production and delivery of products to the market. 2.3 General Economic Environment Analysis Fluctuations in the exchange rates of Australia’s currency are a critical factor that impacts on Joey’s business performance. Foreign exchange rates continually change and this affects the company’s ability to import the raw materials it uses in the production process. The company’s business performance is also affected by constant price changes. This hinders the company’s ability to obtain supplies in a timely manner. 2.4 Customer Analysis Joey’s customer analysis relates to the characteristics of market segments, customer demographics and transaction basis opportunities. Customer profile analysis enables a business create short term and long term strategies for achieving strategic objectives (Sahlman, 2001). Joey’s has already identified its products as the traditional Japanese convenience food. The food is offered fresh and tasty at a reasonable price and this would be suitable for mass segmentation. 2.5 Analysis of Internal Strengths and Threats Strengths: i. Very affordable price ii. Customers can find Joey’s products in convenience stores in various places across the city and students can find it in school canteens. iii. Fresh and clean products. Threats: i. Highly perishable product hence need for urgency in distribution. ii. Stiff market competition because of the presence of several fast-food restaurants in Brisbane. iii. Limited promotion strategies. 2.6 Marketing Strengths a) Skilled Japanese workers in production: Joey’s has employed fifteen people, most of whom are experienced in making Japanese culinary including the sushi rolls. This means that the company is able to ensure delivery of authentic Japanese cuisines and hence create a long-lasting brand image. b) Production factory is near the town: In 2010, Joey's moved its production facility to the Morning side, which is highly accessible from all parts of the city. This initiative dramatically reduced the company’s cost of distributing products to the market. In addition, labor is cheap in this location. c) Clean and safe production line: Joey’s focuses on the efficiency of its production line, as well as, quality management. The company aims to offer clean, healthy and safe food products to its customers. With an efficient production line and strict adherence to food safety standards, the company’s product quality is high and this has helped build a positive market reputation. 3 MARKET ROLL-OUT PLAN 3.1 Market Analysis Summary The Australian catering industry is growth oriented as are other industries. There are a number of factors to explain this phenomenon. First of all, the large number of tourists flocking Australia each year make it necessary to develop appropriate facilities for addressing the food needs of the tourists. Secondly, Australia’s cultural diversity means that different people have different delicacy needs. The two factors have made the industry to experience upward growth. Australia’s relatively health economy is an important factor for Joey’s successful growth. 3.2 Market Segmentation Joey targets customers from all ethnic and cultural backgrounds. In addition, the company has specific targets for the peoples of South and East Asia. In general, Joey’s market segment comprises of healthy conscious people who are interested in Japanese cuisines, most of whom will be from China, Korea and Japan. The company aims to employ innovative marketing strategies including online marketing to reach customers. 3.3 Market Plan Implementation Joey’s is currently undertaking a word-to-mouth business to solicit recommendations from its customers. Although the company is based in Brisbane, it is building up networks across the country through acquisition of indirect and direct customers. Direct customers will comprise individual buyers and retailers while indirect customers will comprise of strategic partners. The company aims to expand its business to other major cities including Sydney and Melbourne by 2014. This will be achieved by building franchises with strategic partners in those cities. In accordance with the mission statement, the company is committed to controlling and streamlining the purchase and delivery of raw materials and other supplies used in the production process. For this reason, most of the ingredients used in the production will be sourced from local suppliers such as Wal-Mart’s and Cole’s. This initiative will be crucial in facilitating marketing and will have long term effects on the company’s long term growth and profitability. In order to embrace high standards of hygiene, all food products will be diced and packed by selected vendors. 4. CURRENT AND FUTURE OPPORTUNITIES AND THREATS RELATED TO MARKETING 4.1 Strategies for Overcoming Competitive Forces Joey’s business operations are subject to a number of internal and external forces. These forces include: i. Threat of substitute products: this can be overcome by developing a strategy for low switching costs, adopting a high degree of product differentiation and improving product quality and performance (Pratley, 2001). ii. Purchasing power of suppliers: this force can be overcome by using exceptional market researchers and hiring independent suppliers. iii. Threat of new market entrants: Joey’s understands that the Australian catering market is open to new entrants. The company is prepared to face this threat through brand development and by using specialist knowledge to build customer loyalty (Porter, 1985). iv. Buyer power: the impact of this force will depend on Joey’s ability to develop and offer appealing and substitute products. The force can also be overcome by expanding the scope of market segment. 4.2 Marketing Strategy and Action Plan i. Offer low prices: Joey’s aims to become a low-cost leader for its food product segment. To goal of this strategy is to target price-conscious consumers and influence them to choose the company’s products over those of the competitors. Successful implementation of this strategy will require dedication to low overhead costs and streamlining of the production process. ii. Stress Special Features: Joey’s shall strive to make its products stand out from those of the competitors. This important marketing strategy will be achieved by offering food products in different flavours and with different ingredients. These initiatives will be supported by enhancing the quality of packaging. iii. Create a Niche: the company aims to create a market niche for it products. The management is considering green production, organic foods and medically helpful food products. The management will also consider certain demographic characteristics such as age, which will help boost its product appeal. iv. Development of a promotional strategy: this will have major impacts on Joey’s marketing plan. The company will use different means available to get the product to the market and these will include print campaigns, internet advertisements and television spots. The company will make use of social sites to make its products known to a wide range of customers including the teens. v. Strategic positioning: Joey’s aims to establish new production facilities across the Brisbane and other major urban centers. The facilities will be strategically positioned taking into consideration production costs and market demographics. This will help facilitate product delivery to the market (Mintzberg, 1999). In general, Joey’s food products will be produced and marketed under strict observance of Australia’s food policy and local regulations. The company will strictly adhere to the import policy to ensure that all production equipment and ingredients sourced from abroad are safe. Although Australia is a multicultural community and more people are likely to accept foreign food, the products that Joey’s products shall be tailored to promote the traditional Japanese taste (Porter, 1985). The company has realized that its future lies in its ability to market cheap, tasty and fresh food products. 4.3 Marketing Mix of Joey’s Joey’s marketing mix consists of the following elements which will form the core of the company’s marketing strategies and help in the realization of marketing objectives: Product: Joey’s puts considerable emphasis on developing a menu that appeals to a wide range of customers. The company engages market research services to determine customer needs and changes in customer preferences. In order to meet customer changes, the company shall continually introduce new products and phase out old ones. The company takes great care to ensure that it does not affect the sales of one choice of its products when introducing new choices (Joyce & Woods, 2008). The ability of the company’s products to generate profits will generally vary at different points and in accordance with changes in the product life cycle. Price: In Australia, customers’ perception of value is an important determinant of the price at which a product is marketed (Courtney, Kirkland & Viguerie, 2000). Joey’s has realized that customers like to make mental pictures of what products are worth. Ideally, Joey’s is determined to be a low cost leader in selling Japanese sushi rolls in Australia. Although the company is relatively small and has not attained sufficient financial stability, it anticipates that the low cost strategy will help attract more customers and enhance market penetration. This will in turn help the company increase sales revenue and gain competitive advantages in selling sushi rolls in Australia. Promotion: product promotion is an important marketing process, which not only impacts on a company market penetration but also on the ability to realize long-term strategic business objectives. Joey’s promotion objective will cover all aspects of marketing communication and this will include advertising. In addition to advertising, Joey’s management uses promotional methods to create brand awareness such as point of sale display, door drops, and sales promotions. Primarily, the aim of marketing communication is to develop a strategic campaign that uses various approaches in a way that provides the most effective marketing experience (Callon, 2006). This initiative is complemented by in-store promotions to encourage people to try the product and to get them to keep on buying the product. Place: Joey’s chose Brisbane as starting point for its business in Australia because of the city’s large population of Chinese, Japanese and Koreans. Burns (2011) has noted in his book that place as an aspect of marketing mix is not just about the physical location of a business but a consideration of several elements which include the management of production and distribution processes. Joey’s outlets are evenly distributed throughout Brisbane. This has made the company’s products to be highly accessible to its customers. The company has plans to introduce new production and distribution channels in other cities. This move will increase the company’s market share to significant levels and will be critical in realization of strategic marketing objectives. People: Employees at the Joey’s have a standard uniform and have been trained to offer friendly and prompt services to the company’s customers. The company has recognized the important role played by employees in enhancing business performance (Brian, 2001). To this end, Joey’s employs the most effective and innovative human resource management practices. These practices include offering compensation packages that match trends in the industry. In addition, the management has implemented flexible work programs, which is seen as an appreciation of employee’s personal and family commitments (Ansoff, 2007). Process: the food manufacturing process at the Joey’s is completely transparent. This means that the entire process is visible to the customers and the company readily acknowledges customer criticism and feedback. In fact, the Joey’s allows its customers, both individuals and retailers to view and judge hygienic and safety standards by allowing them access to the area where the food is prepared. Customers are also allowed to question the ingredients that are used to prepare the food. In general, Joey’s production process focuses on maintaining clean and hygienic environment. Conclusion This marketing plan has created a framework upon which Joey’s can base its marketing operations. The plan has provided a detailed discussion of the company’s internal and external environment, customer analysis and competitor analysis. The findings indicate that Joey’s has some serious weaknesses, which may adversely impact on its business growth and hence the realization of strategic objectives. One of these weaknesses is that the company is small and has a small financial base, which may not allow quick expansion. Nevertheless, the company’s management is determined to expand the scope of the company’s geographical coverage. The initiative will see the company open up new production and distribution channels in Brisbane and other cities. This strategic move will boost the company’s marketing efforts by facilitating market penetration. The company needs to make efforts to improve the marketing experience as this will be important for brand building, customer loyalty and realization of the company’s long-term strategic objectives. References Ansoff, I., (2007). Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep-Oct, pp.113-124. Brian, R., (2001), Ernst and Young business plan guide, Prentice-Hall, New Jersey. Burns, P. (2011). Entrepreneurship & small business: start-up, growth & maturity, (3rd edition). New York: Palgrave Macmillan. 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