Fruit Loops: Marketing Plan Essay

Objectives

A market plan is made to improve the profits made by a business. The market plan is typically the advertisement strategy in order to make the consumers or the customers aware of the existence of the product in the market.

The objective of the market plan is to spend three and a half million dollars for advertisement in terms of billboards, television advertisements, radio advertisements and others. (ACFM Statement on Responsible Marketing and Advertising, 2006)

Secondly is being able to spend five million dollars in promotions, competitions and other promotional services.

Another objective is to design catchy radio jingles and television advertisements to promote consumer awareness.

Sponsor events such as sports tournaments and others so as to promote brand recognition, consumer awareness and hence drive sales making it the forth objective of the plan.

The plan should make it easier to sell one hundred thousand units of Fruit Loops per month for the first month with an increase of ten percent units every month.

It should also be able to generate well over four million dollars in sales by the end of the first year and increase sales of fruit loops by hundred percent by the end of year two.

The plan should also maintain revenue stream from Fruit Loops at a minimum of ten million dollars from year three with an increment of five million dollars per subsequent year and return investor capital by the end of the third year.

Target Markets

Abell (2006) suggested “The definition should cover three dimensions: ‘customer groups’ to be served, ‘customer needs’ to be served, and ‘technologies’ to be utilized”

Our ideal customers are between the ages of seven and twenty five who enjoy eating cereals for breakfast and other nutritious snacks. They often have cereal boxes and are ready to try new products in the market which if they like it; they continue using it as suggested by Henderson, L., Gregory, and Swan, G. (2002)

Customers are typically both male and female and with a wide range of disposable income and also providing a wide market for the goods. A number of the besieged clients are young people who still reside at home with their folks or guardians while others are college students or those who have become employed in the recent five years or so.

These consumers readily associate with catchy jingles and advertisements, market trends which are driven by these advertisements and also with companies that are willing to spend their money to sponsor events for the good of the community and also market their products.

Market Definition and Segmentation

In this there are two segments are embattled and they consist of: individual clients and organizations that desire to attain them. In both of these segments, customers are the same (Henderson L, Irving K, Gregory J, Bates CJ, Prentice A, Perks J, Swann G, Farron M (2003).

Individual Consumers

Individual consumers are the final users of Fruity Loops. They are the main consumers who the whole plan is targeting. However they are targeted through the supply chain. Individual consumers are mainly the main market source in many goods this is because in one way or another they are the end user of many products, whether directly or indirectly.

Organizations

Organization consumers mainly defines big companies who purchase goods in bulk they include: wholesale shops, supermarkets, hypermarkets and others involved in the supply chain that will be involved in getting the product to the consumer.

Market Size

Fruit Loops will be distributed through wholesale and retail supply chains as described by Simon, H. One of the obstacles to be overcome is the speed with which retail stores move products. Therefore there is need to ensure their stock is replenished.

Estimated market size is ten million consumers by the end of the first year. The market size of fruit loops also matters a lot the larger the readily available market the more the profits earned. A good market should be unlimited and is not seasonal. Thus if the market range is limited and seasonal, that is only available at certain period of the year then the sales during that period would be low hence incurring low profits or even losses which would not be good for the business.

Competitive Forces

There are many cereal products being sold in the market. Cereal producers include Kellogg’s, General Mills, Malt-O-Meal, Nestlé, Quaker Oats and Post Foods (Jeffrey K., 2008). Given that there other companies dealing with same product, it is important one to understand whatever completion he/she is up against, in this way one is able to compete effectively in the available market. Otherwise if not then the competitors will make more sales thus incurring losses in the business.

Conclusion

Generally a market plan constitutes of a marketing strategy of a product. The marketing strategy requires one to know the kind of market being targeted and the objectives that he/she wants to achieve by the end of the day. In this way one can easily achieve the set goals in the business.

Reference list

Abell, (2006). Defining the Business: The Starting Point of Strategic Planning.

ACFM Statement on Responsible Marketing and Advertising. Milan, Italy.

Breakfast Cereals Market Report – Market Research Reports – Research and Markets. Web.

Henderson, L., J. Gregory, and G. Swan (2002). The National Diet and Nutrition Survey: adults aged 19 to 64 years. Volume 1: Types and quantities of foods consumed. London. Office for National Statistics: TSO.

Henderson, L. et, al. (2003). The National Diet & Nutrition Survey: adults aged 19 to 64 years. Vitamin and mineral intake and urinary analytes. New York. Oxford University press.

Jeffrey, K. (2008). The Gospel of Consumption. Web.

Kellogg Company, (2010). Google Finance. Web.

Ruxton C.H.S., O’Sullivan K.R., Kirk T.R. & Beltons N.R. (1996). The contribution of breakfast to the diets of a sample of 136 primary-schoolchildren in Edinburgh. British Journal of Nutrition, vol. 75, no.3 pp.419-431.

Simon, H. (2001). Rational decision making in business organizations, ‘American Economic Review.’ London.

Sabine S. (2010), Longer life for high fiber cereals consumer. Web.