Temple Food Company Issues - Example

Marketing Plan Name Institution Course Lecturer Date Marketing Plan Table of Contents Table of Contents 2 Introduction 3 1.0 SITUATION (SWOT) ANALYSIS 3 1.1 Strengths 3 1.2 Weaknesses 4 1.3 Opportunities 4 1.4 Threats 5 2.0 OBJECTIVES AND STRATEGY 5 2.1 Marketing/Financial Objectives 5 2.2 Strategy Statement 6 3.0 MARKETING MIX DEVELOPMENT 7 3.1 Product Design & Development 7 3.2 Distribution Strategy 8 3.3 Promotion Plan 9 3.4 Pricing Strategy 9 4.0 PROJECTED INCOME STATEMENT (12 months) 9 References 11 Introduction Temple Food Company is food product processing company that is situated in west Australia. The company was founded by Len Temple in 1970s since then the company has continuously been gaining expertise as far as production of health food is concerned (Stone, Laughren, Jones, Levenson, Holland, Hughes & Rochester, 2009). The company processes a variety of ready-to-eat foods which contain ingredients with natural flavours. The foods are quite healthy and are highly preferred by baby boomers as well as the aged persons. Temple, the company’s brand name complimented by the quality food products, has enabled the company to acquire a good reputation among her consumers in the market. (Basu, Temple & Garg,1999) This report discusses the company’s market plan for a new product which has been developed recently. The product is a ready-to-drink health food product that is recommended especially to those who miss breakfast. The report analyses the strengths, weakness, opportunities and the threats. Furthermore, the report discusses the marketing and the financial objectives of the company as well as the strategy statement. The company’s marketing mix is also well investigated and evaluated in this marketing plan as well as promotion and pricing strategy for the products. (Grandin, 2001) 1.0 SITUATION (SWOT) ANALYSIS 1.1 Strengths A new type of food drink that can offer more satisfaction to the consumer as compared to consuming other food drinks in the market because it enlarges by half its initial size when consumed and is as satisfying as a complete meal. A healthy food drink that is nutritious, tasty and low in calories. It has a wide range of flavours make it appetizing such as Lo-Krim® and Lo-Sweet® that are natural substitutes for fresh cream and natural sugar respectively. It comes with a wide variety of food drink versions. Consumers can choose the version that is convenient to them and that best suits their requirements from among three versions. The three versions are the regular version, the low-calorie version and the high-energy version. It is portable and capable of lasting up to 6 hours without refrigeration once it is opened. 1.2 Weaknesses The ready-to-drink beverage can be priced higher. Pricing is tricky due to the fact that it is hard to determine the consumer surplus because there is uncertainty on the amount of money spent per meal by consumers and the food drink cannot be priced based on the other food drinks available in the market because they are dissimilar. 1.3 Opportunities The need for the provision of healthy food drinks that are high in vitamins and low in calories for the health-conscious consumers in a market that has regular processed foods that contain calories. Change in consumer lifestyle and preferences that has resulted to the upsurge in the consumption of readymade food. For instance, the working class may lack enough time to take lunch or breakfast at home which results to them skipping meals or taking readymade foods. The breakfast cereals market has been experiencing declining sales and a lack of innovative products. Tie-up with small food outlets and supermarkets guarantees a greater market share because food drinks are becoming popular in Australia. Production of various versions of the ready-to-drink beverage is possible by simply altering the carbohydrate level. 1.4 Threats Potential competitors; there is increasing competition in readymade food sector from established players in the sector such as Kellogg's. Temple products are sold through small outlets whose trade incentives are dissimilar to the trade incentives for products in the healthy foods section in supermarkets. 2.0 OBJECTIVES AND STRATEGY 2.1 Marketing/Financial Objectives The company has well stated market objectives that have been outlined in line with the consumers’ needs, tastes and preferences. The main aim of the company is to make profit out of its deals. The marketing objectives for the company include;- Maintaining the company’s gross margin at above 45% every month Generating more sales both from the new drink product as well as improve the previous sales on food products. The company plans to increase these sales by about $ 5,000 each business day of the month. The company projects to increase its annual growth rate to approximately 25% by the following year. With the introduction of the new product the company management is also looking forward for more improvements as far as growth is concerned. Each quarter, the company plans to realize at least a $50,000 increase in its sales. The financial objectives for the company will entail;- Reduce the amount of expenses that the company has previously been incurring especially on the office and administrative activities. The company also projects to increase its revenues to exceed the already attained level by about 30% given the sales that will be realized from the new product. 2.2 Strategy Statement Our strategy statement will be based on ensuring the company becomes the best food company in the country that provides the most nutritious meals. The company will also be enhancing good health in its food processing activity so as to ensure that its products are hygienically clean. Moreover, the quantities and the qualities of the company’s products will be well taken care of so that no consumer should complain about them. Target market The main target market for the new drink product is the young people who normally skip their breakfast due to various reasons. The drink will act as their breakfast especially when going to school or when their parents are unable to prepare the breakfast for them. The drink will also be good to the people who are normally busy in the morning such that they are unable to make the breakfast. The nutrients in the product makes it effective and convenient even to the sick people who may not be able eat solid food. Brand positioning Temple Foods Company has very well defined distinguishing factors that make it attractive and most preferred in the market. For instance its ready-to-eat and ready-to-drink products contains natural sugar called Lo-Sweet®, and natural substitutes for fresh cream referred to as Lo-Sweet®. These natural ingredients have been patented and owned by the company and they give the company’s product a taste that is very different from any other food product. Furthermore the removal of the calories in these ingredients also gives the product a different face from other products. 3.0 MARKETING MIX DEVELOPMENT 3.1 Product Design & Development Product design and development refers to the ways in which the company aims at making its own brand more attractive and different from the rest closely related products in the market. Sometimes the products may be unrelated but the brand of the product being sold is usually very important in capturing the market and enabling the product to sail through the competition in the market amongst other products. Moreover the company must ensure that its brand is well protected under the intellectual copyright so that no other company comes up with a similar product brand. Temple Foods Company has very well defined distinguishing factors that make it attractive and most preferred in the market. For instance its ready-to-eat and ready-to-drink products contains natural sugar called Lo-Sweet®, and natural substitutes for fresh cream referred to as Lo-Sweet®. These natural ingredients have been patented and owned by the company and they give the company’s product a taste that is very different from any other food product. Furthermore the removal of the calories in these ingredients also gives the product a different face from other products. The new product is aimed at opening the doors for more development in that it has very unique features that distinguish it from others. For example the drink is packaged in a way that it can last for more than 5 hours when opened and not placed in a refrigerator. The product targets the young generation unlike the food products that were widely spread to all sectors in the market. Moreover, the company plans to sell the product both locally and internationally. This will help in the market development for the product. 3.2 Distribution Strategy The mode of distribution for any product matters a lot in that it determines the profit margin for the company. Temple Food Company normally distributes its products using its three main sales persons who make sure that its products are well distributed to the various outlets in the country. The chain is made as simple as possible from the company to the wholesalers and finally to the retailers. The drink is packaged in a way that it can be sold even to passers-by as a take away drink. Just as the food products the drink will be supplied to small food outlets such as kiosks on the roadsides, lunch bars, sandwich shops, petrol stations, delis, and other small sellers in the market places. Moreover, the company will conduct a road-show campaign to create more awareness of the product to the consumers. This will be done by the use of some of the most popular artists in the country as well as comedians so as to attract as many people as possible. Television advertisement will not be encouraged very much due to the high costs involved, however once the product has picked well in the market the TV ads will be created to improve the advertisement of the product. In addition, the company will visit various private and public schools in order to make the product known among the students since the target market is baby boomers and young people. 3.3 Promotion Plan The promotion of the product will be effected by the use of brand artists as well as the company’s brand name. The company is aware of the competition posed by the Kellogg therefore the company plans to put in place promotion strategies that will enable it to succeed in the market. Among the strategies that the company aims to put in place include packaging the product in containers of various colours and of different shapes. The containers will also be labelled the company’s slogan as well as the brand artist’s portrait. The first bunch of buyers will be awarded a discount depending on the quantities they purchase. These features are aimed at promoting the product and making it more attractive to the consumers. 3.4 Pricing Strategy The drink will be produced and packaged by the company. The estimated production cost that includes the packaging cost and the cost of delivering the product to the stores per unit is $0.80. The company is able to produce about 200,000 litres of the product per day. The standard size of the product is 500ml. After conducting a market research on the prices of any close substitute, the company found that there was no such a product which would be used so as to compare prices. However it was noted that the drink served as a whole breakfast meal and from the research it was found that people spend between $3.00 and $8.00 for a breakfast meal. Hence, the company settled to sell the product at $5.00 for every 500ml container of the product. 4.0 PROJECTED INCOME STATEMENT (12 months) The company will create a cost-centre that will evaluate the returns from the product and the company at large. It will be done quarterly after the first 12 months of the product existence in the market. The following income statement is projected to be accomplished for within the first 12 months of the product in the market. Income Expenses Particulars Amount Particulars Amount Sales from the new drink $700,000,000 Office & Administrative exp. $20,000 Sales from the food products $800,000,000 Marketing manager’s salary $35,000 Sales representative $135,000 Total 1,500,000,000 Travel expenses for the sales representatives $45,000 Others $50,000 Profit 1,499,715,000 Total $285,000 References Basu, T. K., Temple, N. J., & Garg, M. L. (Eds.). (1999). Antioxidants in human health and disease. CABI Pub.. Grandin, T. (2001). Solving return-to-sensibility problems after electrical stunning in commercial pork slaughter plants. Journal of the American Veterinary Medical Association, 219(5), 608-611. Stone, M., Laughren, T., Jones, M. L., Levenson, M., Holland, P. C., Hughes, A., ... & Rochester, G. (2009). Risk of suicidality in clinical trials of antidepressants in adults: analysis of proprietary data submitted to US Food and Drug Administration. Bmj, 339. Read More