Developing a Sustainable Marketing Plan Marketing Plan
- Length: 8 pages
- Subject: Business
- Type: Marketing Plan
- Paper: #23957885
Excerpt from Marketing Plan :
Sustainable Marketing Plan
The following pages focus on presenting a marketing plan for introducing organic coffee on the market. The paper starts with an analysis of the organic foods market situation, and also of the coffee segment. This section is intended to help readers identify important aspects that this marketing plan addresses. The plan continues with the discussion of the company's strengths and weaknesses, and of the opportunities and threats provided by the business environment. Furthermore, the plan focuses on establishing and discussing the marketing objectives that are addressed by this plan. These objectives also refer to people and planet, providing a complex image of the company's intentions regarding corporate social responsibility.
The plan continues with the presentation of the Marketing Strategy. This section discusses the customer segments targeted by the company. In addition to this, the section also addresses the marketing mix that the company intends to use. The marketing mix refers to the product, price, distribution, and promotional strategy. The Action Plan is also presented. This section includes the targeting and positioning statement, the strategic map that explain how the company's objectives can be reached, the promotional and distribution strategy, the implementation, control, and evaluation of the company's strategy, and others.
The development of new products and their introduction on the market is a complex process that requires significant resource allocations from companies. The success of this process relies on the research and development activity, on the marketing strategy, and on the control of these activities. Therefore, it is important to collaborate with specialists in the field in order to establish the objectives that must be followed by the teams involved in this project.
The introduction of organic coffee on the market requires thorough market studies that are used in order to determine the issues that must be addressed by the marketing plan. Regarding the marketing strategy, the company should focus on the promotional component. In other words, the company should increase investments in the promotional strategy.
The reason for selecting this product relies on the important marketing opportunities that can be addressed in this business. With coffee consumption increasing, producers in this industry can increase their market share simply by addressing the market expansion. Therefore, this situation represents an interesting case that can be studied.
Market Situation Analysis
The organic foods and beverages industry has significantly increased as a result of different factors that have determined customers to increase their organic products consumption. The benefits of these products and people's orientation towards healthier lifestyles have determined numerous customers to focus on purchasing food, cosmetics, and clothing items of organic production. Coffee is one of the products that seem to continuously attract customers. Specialists' advice and people's pleasure or necessity of drinking coffee has determined coffee sales in the U.S. To increase (OTA, 2011).
Most customers prefer Arabica coffee that is imported from Brazil. An important trend on the coffee market is represented by the increased demand for green coffee, which determined prices to significantly increase. Specialty roaster stores seem to be customers' favorite.
Internal Strengths and Weaknesses
The company's relationship with business partners -- it is important to develop strong relationships with coffee producers, roasters, and sellers. The company's activity relies on its relationship with suppliers. In order to improve the efficiency of its supply chain, the company prefers to do business with a larger number of small suppliers, instead of working with a reduced number of larger companies. This is intended to reduce the company's dependence on suppliers.
High quality products -- the company has created competitive advantage because of the quality of its products. Most customers are interested in high quality products, although they are more expensive. However, their purchasing process is significantly influenced by the quality of coffee beans. This also helps the company increase brand loyalty.
Technological developments -- the company must use equipments that ensure an efficient production process. These technological developments also help the company reduce its production costs.
Higher costs -- the coffee business can be quite expensive. The prices of high quality beans on international level have increased as a result of higher demand. This requires increased levels of resources from the company.
Limited marketing budget -- the company's financial situation does not allow for significant investments in the marketing strategy.
External Opportunities and Threats
Market growth -- the expansion of the organic products industry and of the coffee segment is an important opportunity that the company can address. The rather reduced barriers in this market allow the company to expand its activity on international level.
Increasing profit margins -- this can be achieved with the help of technological developments that can determine reduced production costs. There are other advantages influenced by this factor.
Costs -- coffee is considered a commodity and must subject to international regulations. In addition to this, international trends affect this business, determining higher prices for coffee. This can make it difficult for the company to expand its business.
Increasing the number of customers -- the company must focus on increasing its market share by attracting a higher number of customers. This objective can be achieved also because of the fact that the market is expanding. Therefore, the company must not necessarily target its competition, but it should address this opportunity.
Increase customer loyalty -- this can be achieved by improving customer experience. The company must conduct several research studies intended to identify the factors that influence customers' purchasing decision, the issues that present great interest to them, and the aspects that customers consider that should be improved. Based on these studies, the company must establish the business issues that must be improved in order to increase customer satisfaction.
Reducing the customer acquisition costs -- this is an important objective required by the company's intention of reducing its production costs.
Improving the workplace environment of employees -- the company is interested in improving the working conditions of its human resources. This is because its activity relies on the performance of these employees. Therefore, it is important to develop successful strategies intended to increase satisfaction and motivation level of employees.
The development of the coffee market creates direct jobs in the countries that produce coffee, in the regions where coffee is manufactured, and in the countries where it is commercialized. The production of organic coffee requires a reduced level of machinery involved in this process, and increased level of human resources in producing coffee.
Develop environment friendly strategies -- the company has focused its activity on supporting the community and the environment. It is important that customers understand the company's implication in protecting the environment and follow its example. Therefore, the company has developed a series of actions intended to determine people to orient towards organic products, and to get involved in environmental protection activities.
Organic production is strongly linked to healthier environmental conditions. Therefore, it is important to intensify the efforts required by increasing organic production. This helps improve the environment in the communities where coffee is produced on a large scale.
Target Market Selection
The most important customer segment targeted by the company is represented by individuals aged between 30 to 45 years, college or university graduates, with medium incomes. These customers have a busy schedule and are oriented towards healthier lifestyles. Therefore, they are interested in purchasing organic products. Their activity requires them to drink large quantities of coffee. Their incomes must allow them to purchase organic products that are usually more expensive in comparison with traditional products. They are also interested in different types of coffee and similar products.
Another customer segment targeted by the company is represented by individuals aged between 46 and 65 with medium incomes. These individuals are interested in coffee as a habit or pleasure. In addition to this, the company targets the customer segment aged 65+ interested in coffee as a pleasure but also in its benefits. It is important to address these customer segments in accordance with their preferences. Therefore, the company's managers must develop and implement strategies that address each of these customer segments and their different objectives. These strategies must rely on the analysis of these customer segments and their interests. The company must increase its investments in these strategies.
The company's product strategy is based on creating competitive advantage as a result of introducing high quality products. The company produces regular roast coffee, with medium roasted beans that result in a moderately flavored brew. The types of coffee produced by the company are made from high quality beans imported from Brazil. In addition to this, the product strategy also focuses on developing a wide range of coffee products. These refer to regular coffee, decaffeinated coffee, and lighter coffee that targets customers that are not allowed to drink a lot of coffee. The company also produces different types of hot chocolate and products associated with coffee consumption.
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