BSB 126 MARKETING PLAN

Transcription

1 BSB 126 MARKETING PLAN Market Penetration strategy for The Hot Fresh Fries Company vending machine NAME: Jessica Martin STUDENT NUMBER: n TOTAL WORD COUNT: 1638 I. SITUATION ANALYSIS Microenvironmental factors The Hot Fresh Fries Company, based in Byron Bay Australia, is at present, leading the market for hi- tech hot chip vending Machines. The company has developed a cutting edge machine, considered the most sophisticated and technologically advanced, across the globe. (Hot Fresh Fries, 2015) Due to its technological capabilities, Hot Fresh Fries are a first mover in this market and therefore have limited competitors. Other fast food chains in the area, as well as frozen chip manufacturers can be considered as indirect competitors, as neither are technologically advance, however they present similar products. Additionally, the success of the company will be subject too the efficiency of their suppliers, and quality of their French fry product. The SWOT Analysis, as seen in Appendix 1, outlines the numerous advantages of the product, which outweigh any weaknesses, as well as assesses future opportunities for the product and possible threats. Macroenvironmental factors Demonstrated within Appendix 2 is the CDSTEP profile which outlines the macro environmental factors in which affect Hot Fresh Fries product. Although all influencing overall success, the national and regional culture, as well as present social trends are the most significant forces. Australians embrace fries as their most popular fast food choice, (Hot Fresh Fries, 2015) demonstrating the success of the company in this region. However, Hot Fresh Fries may face problems in those areas of Australia, which are densely populated with international cultures, where international cuisines are prominent. Furthermore there is a growing trend towards food prepared away from home with an increase in time poor households, (Brindal, 2010) this proving beneficial to Hot Fresh Fries. However, a large number of Australian consumers are also becoming more health conscious, determining how successful a Hot Fresh Fries franchise may be. (Australians more Health Conscious than Americans, Britons & New Zealanders - Just as Overweight 2005)

2 II. MARKETING GOAL To increase the Market share of The Hot Fresh Fries company in Australia by 30%, by III. MARKETING STRATEGY Target Segment The Hot Fresh Fries Company s primary target market is; working couples, aged between 30-40, with younger children, living in urban areas throughout Australia, with predominantly busy lifestyles. This market will be specifically successful as Australia s population is predominantly urban (currently 89 per cent of the population and growing) and this is largely responsible for the increased demand for convenient processed foods. (Nunzio, 2014) Additionally, Young Australian families share a growing preference for easily prepared meals, to suit their time poor urban lifestyles. (Nunzio, 2014) As both parents will be working, time is the most significant factor they will be considering. Providing foods that their children will like the taste of will be priority, over those, which have higher nutritional value, as more time will then be spent convincing the children to eat the poorer tasting, but more nutritional food product. As this target market embodies the two most influential macro environmental factors; a suitable Australian, urban culture and current social trends, it is likely that Hot Fresh Fries vending machines will be successful. The target segment also consists of two personality types; innovators and contended conformers. The innovators will embrace the new technology and are likely to be the first users of the vending machine as they are confident risk takers, seeking new, exciting things. Contended conformers however are likely to adopt the product at later stages of its product lifestyle, so they can follow the majority when they begin utilising the technology. Positioning statement The Hot Fresh Fries Company vending machine is a better product alternative in comparison to traditional fast food establishments for Australian working couples with young families because it is a technologically advanced machine, suited to their time poor lifestyle, which provides the consumer with hot fresh fries 24/7 and in less than 3 minutes, without having to drive through or be served by someone.

3 IV. MARKETING TACTICS Product Hot Fresh Fries specialise in producing potato fries that are Hot, crispy and delicious. The name of the company, along with the slogan suggests that the fries come ready to eat, acting as the perfect snack or meal side, and therefore are convenient for the intended market. Additionally, the vending machine is painted in bold shades of red and yellow, which are bright and appealing to children, therefore this also reaches an aspect of the market. Whilst successfully reaching their market currently, and progressively moving towards their marketing goal, there is potential for the Hot Fresh Fries Company to add variation to their product by introducing sweet potato or zucchini fries. These new products would allow the company to cater for those health conscious consumers and thus tap into another market sector, in which majority of their competitors are currently not catering for. According to nutritionist Sara Ipatenco (2015) A 1- ounce serving of veggie chips contains 6.6 grams of fat, of which only 0.5 gram is saturated. The low- saturated fat content is a plus because watching your intake of this kind of fat is a good way to protect the health of your heart. Due to the growth in consumer demand for healthy foods and the claim that, 34% of Australians follow a low fat diet (Australians more Health Conscious than Americans, Britons & New Zealanders - Just as Overweight 2005) it is an incentive to Hot Fresh Fries to include vegetable alternatives in their product line. This will expand their market potential and ultimately allow them to achieve their marketing goal. Price A successful pricing strategy is built around the 5 c profile; competition, costs, company objectives, customers and channel members. Every firm when determining a price needs to consider what their competitors are offering, understand their cost structure and how much is required to make a profit, consider what their company goals are, understand the value the customer places on their product and how much they re willing to pay and finally consider the different perspectives of their manufacturers, wholesalers and retailers. (Grewal, Levy, Mathews, Harrigan, Bucic 2015) There are 3 methods to pricing; competitor based, where firms set their price to outweigh competitors, cost based, where a product is priced based on manufacturing costs in order to maximise profit, and finally value- based which focuses on setting prices of a product based on the customers perceived value. (Grewal, Levy, Mathews, Harrigan, Bucic 2015) The Hot Fresh Fries

4 Company would benefit from adopting a competitor based pricing approach, as this would allow them to reach their target market. By pricing their fries product lower than competitors it is likely that young couples will choose the vending machine fries, not only for convenience but for the low cost. Fries are considered to be an elastic product as they are not a necessity, and there are various substitutes available, further suggesting the need to keep the price low. Although both parties are working, thus having a sufficient disposable income, the cheaper price will be attractive, especially when purchasing quite frequently, allowing them to spend their disposable income on other, more desirable, luxury goods. To encourage consumers to utilise the vending machine for the first time, vouchers should be placed in the mailboxes of surrounding areas, as well as attached to local food catalogues, to build their customer base and work towards their marketing goal. Customer loyalty can then be built by creating customer cards where the 10 th purchase of fries is free, and the card is stamped in the machine each time it is used. Distribution The Hot Fresh Fries Company currently uses an Indirect Marketing channel, to distribute its vending machines across Australia. This method involves one or more intermediaries working with the manufactures to allow the product to reach the consumer. (Grewal, Levy, Mathews, Harrigan, Bucic 2015) The Company operates from Byron Bay Australia, and distributes the vending machines through a franchise model, involving the franchisees buying and then placing Hot Fresh Fries machines into venues in an arrangement where both parties share in the profits. (Hot Fresh Fries, 2015) They currently have numerous franchises across urban areas of South Australia, Perth, Sydney and Queensland (Hot fresh fries launch, 2007) By using a franchise model they are able to reach a wider market across all of Australia. Vending machines are appropriately placed in urban centres, such as shopping or transport precincts, as these are frequently visited places by working couples, allowing Hot Fresh Fries to reach their intended market. Promotion For The Hot Fresh Fries Company to successfully reach their target market the objective and task method should be used when considering promotional techniques. This method is a budgeting method that determines the cost required to undertake specific tasks to accomplish communication

5 objectives. (Grewal, Levy, Mathews, Harrigan, Bucic 2015) A full analysis of this can be seen in Appendix 3. The Hot fresh fries Company will primarily focus on direct marketing in the form of catalogues, and Newspaper advertisements, both online and print. $ will be allocated and split between these two forms of advertising. Attaching a product focused advertisement, with vouchers on the back such as buy one get 1 free, in supermarket catalogues will inform and remind consumers about the hot chip vending machine, and encourage them to trial it as a new alternative. These catalogues can be distributed at supermarkets in urban locations, or into local mailboxes. Furthermore, according to a study performed by the California Polytechnic State University (2010), print catalogues generate the second highest response rate, after telemarketing. This form of marketing is highly targeted, allowing Hot Fresh Fries to personalise their advertisements. (Grewal, Levy, Mathews, Harrigan, Bucic 2015) Newspaper advertisements in weekly papers are also appropriate to reach the target market on their way to work or in the workplace. Complimentary newspapers are often distributed at central train stations, or at workplaces, for their employees to read. This promotional method will allow the company to reach working couples and engage with them at a time which is not their busiest Currently, nearly 7 out of 10 adults have read a newspaper in the past week, with 79% of them taking action on a newspaper add in the past month. (Advantages of Newspaper advertising, 2011) This indicates that this is an effective tool for The Hot Fresh Fries Company to utilise. The remaining $ will be allocated to radio advertisements. This would also be an effective tool to reach those within the target market who drive to work, as this form of advertising is reasonably inexpensive and wide reaching. Overall, each form of advertisement would send a message to the consumer emphasising the convenience of the product, and the slogan Hot, crispy and delicious. Therefore, regardless of how the message reaches the target audience, it is consistent throughout.

6 V. REFERENCES Advantages of newspaper advertising. (2011) Mansi Media research group. Retrieved from expertise/newspaper- advertising- advantages Australians more Health Conscious than Americans, Britons & New Zealanders - Just as Overweight. (2005). Retrieved from Australian social trends. (2007). The Australian Bureau of Statistics. Retrieved from abs.gov.au/ausstats/abs@.nsf/0/0485bb5550fe5799ca25732c00207c77?opendocument Brack, R. (2015, February 12). Would you trust something made of microchips cooking your hot chips? SBS News. Retrieved from soon- machine- will- be- asking- do- you- want- hot- chips Brindal, E. (2010). Exploring fast food consumption behaviours and social influence. Retrieved from Chan, S. (2010). Effectiveness of catalogue printing on online consumers. California Polytechnic state university. Retrieved from context=grcsp Demand for healthy foods and biodegradable packaging. (2013). Queensland Government. Retrieved from innovation/innovative- food- beverage- products/healthy- foods- biodegradable- packaging Di Nunzio, J. (2015). Consumption patterns and food demand in Australia to Retrieved from and- water- crises/1631- consumption- patterns- and- food- demand- in- australia- to html#sthash.lXxd1YzE.dpuf Grewal, D., Levy, M., Mathews, S., Harrigan, P., Bucic, T. (2015). Marketing (1st ed.), North Ryde, NSW: McGraw- Hill Education Pty Ltd. Hot Fresh Fries. (2015). Retrieved from fresh- fries#ykxei3yjzw6vlrve.99 Hot Fresh Fries launch. (2007). Retrieved from Fresh- Fries/Hot- Fresh- Fries- Launch Ipatenco, S. (2015). Are veggie chips healthy? Retrieved from / are- veggie- chips- healthy/

7 VI. APPENDICES Appendix 1 SWOT Analysis Strengths Hot chips are available 24/7 Customers do not have to deal with customer service personnel who may be unpleasant or slow Preparation time is very quick, being delivered in under 3 minutes Australians can enjoy the deep fried salted and sauced carb comfort food whenever they get the urge. Machines are easily accessible, without having to drive through Weaknesses Risk of machine malfunctioning which is more difficult for customers to fix in comparison to if they were in a restaurant and could just send the chips back The public perceptions of freshness is challenged Only serves chips in comparison to other fast food outlets that serve burgers, nuggets etc aswell Opportunities Develop alternative product lines that are healthier eg. Sweet potato or zucchini chips Expand into other cities of Australia, or other westernized countries e.g. America Threats Other fast food chains Frozen chip packets in supermarkets Health conscious consumers

8 Appendix 2 CDSTEP profile influencing The Hot Fresh Fries Company Culture Demographics Social trends The vending machines must be placed in regions which embrace fast food and traditional westernized diets, in comparison to international cuisines eg. Asian or Mediterranean Customers must be of the appropriate age to be able to use the technology and operate the vending machine The vending machine will have increased usage in Societies which are considered time poor and are looking for convenience products. The Hot Fresh Fries Company however will suffer with the growing health and wellness trend deterring consumers from fast foods. Technological advances Economic situation Political/legal environment As technology continues to change, the product must also continue to evolve in order to remain are leader in the market and maintain profits. The vending machines must be implemented in areas where consumers have sufficient disposable income as a cup of chips from the vending machine would cost more per unit as oppose to an entire packet in the supermarket. The Hot Fresh Fries Company must ensure they operating in accordance with fresh food guidelines. Appendix 3 Task and objective table Objective Task Cost To increase awareness of the hot chip vending machine and encourage first time users Catalogue advertisement $ Newspaper advertisement $ Radio advertisement $10 000