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James Averdieck readily acknowledges the competitive nature of the food industry in Britain. Large multinationals daunt the industry thus are not ready to search for new customers.
Therefore, making entries into new markets is rather intricate. In the past seven years, GU has made significant progress in establishing its market niche by elevating its ability to enter new marketplaces thus rapidly expanding revenues (Averdieck 2011).
The management established that most customers buy their products from supermarkets and retail shops. The most effective way to market product entails linking up with strategic partner, advertising and ensuring that product quality does not depreciate.
Overview of the organisation
GU chocolate company focuses on the fabrication of confectionary products with puds as the main product. Launched in 2003, the entity has grown admirably. This is attributable to resilience of the management.
GU, which had three products, at the beginning has turned its fortunes around by rapidly expanding its product portfolio and now boasts of a wide variety of products. The subsequent founding of Fru, which is a sibling company, has helped GU to assert its influence in the market.
Their product includes mousses, cakes, chocks and other delicacies that are a preserve of the adults. Marketing of chocolate is very sensitive to packaging (Averdieck 2011). A professional management team led by James the founder of the institution heads the entity.
Their experience will count in trying to market their brand in a market that is very competitive. The expansive range of product that GU deals with helps in establishing its niche since it provides a large variety of products. The entity’s main strength lies in its experienced management and expanding market share.
The main challenge to this organisation is competition and the need to maintain appropriate quality (Perner 2008). For GU to survive the entity needs to offer more than what other ordinary Chocolate company’s offer.
Consumers of Chocolate Puds are adults. Such a target market has disposable income hence pricing should be moderate. Due to the product range, this entity offers, it can segment its market. GU’S customers are available in many countries in Europe (Averdieck 2011). Marketing will assist GU to make an entry in new lucrative markets.
GU puds aim at expanding its market share, a process that will require the management to enact several measures. To achieve an expanded market share, GU will have to launch an audacious advertising campaign that will draw new customers. Winning a significant fraction of the market will require creation a noticeable brand name to counter competition and assert influence in the market. Moreover, the entity would need to put in place appropriate strategies to ensure that the products reach the new target market, which is the major challenge to entities in such an industry.
In an industry, that has Multinational Corporation as players; a tender firm like GU will need to initiate effective strategies as the competitors have expansive financial resources. A forceful crusade in media that include Television and print media is necessary.
To enable GU compete with other multinationals, it can develop various products that suite different economic classes. This would allow the company to discriminate prices thus, reaping maximum profit (Perner 2008). GU will forge agreements with companies that can help in marketing products.
Airlines are perfect example as they address the needs of a noticeable fraction of clientele. GU’S product will be available as delicacies during the flights. The catering division, which promotes cuisine, will be pivotal in promoting puds as it sets the standards in the provisions industry.
A large proportion of puds reach customers through supermarket and retailing chains therefore, it is the management’s priority set up mutual agreement with their distributors.
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Puds consumers are sensitive to packaging and quality (Averdieck 2011). GU must prioritize the enhancement of product quality in face of growing demand for their product. Packaging is crucial in confectionary products as it attracts customers’ attention. It is evident that poor packaging leads to dwindling sales.
However, there is minimal difference between products sold to the higher and lower end of the market. Evidently, the firms that distinguish the market exploit the value difference by offering classy packaging. GU will take up social responsibility in the different countries where it operates.
Social programs will help in building its corporate image and promoting the brand name thus boosting its sales. The above entity is expanding rapidly thus, it needs to initiate decisions swiftly.
Decision making needs logistical support and the planned creation of logistic department will be a plus in facilitating decision-making supported by research and data from the market. Obesity that is attributable to junk food like puds is on the rise.
In an effort to adhere to the various calls by social movements and governments, GU should create products that do not pose health concerns. Customers are scrupulous on the delivery time. Failure to make judicious delivery leads to lessening of demand.
In an effort to counter this, adequate supply, modalities ought to be in place. Customers have varying taste and GU will continue to expand its product profile to meet all customer tastes.
Implementation and Budget
GU ought to make investments in production thus satisfying its widening clientele. To maintain their quality, GU will need to invest in research to enhance preparation of quality products.
The managers will seek the expertise of an advertising specialist to make advertisements that will capture the interest of potential customer and draw them to the products. GU will plough back its returns from previous financial periods and seek further capital from financial institution.
Ploughed capital and loans will finance the expansion of production line and set up a research facility. To the airline corporations and hotels, the company will offer free sample to the various clients of these industries. Consultation with distribution outlets will assist in set up agreements to facilitate distribution of puds.
The execution of the above strategies will require financing. Expansion of production capacity and setting up of a research facility will be a fundamental undertaking for GU.
Thus, the entity will need to solicit funds from financial institution if the revenues are not adequate. GU will set aside funds to finance well-vetted social projects that promote the welfare of the members of public.
By creating an extra department, the organisation will need to spend more funds internally to equip the new department with the necessary labour and equipments (Averdieck 2011). Diabetes is a lifestyle disease, preventable by consumption of products that contain the various nutrients in appropriate proportion. GU has to ensure that its products contain the required nutrients
It is necessary to sum up the plan by highlighting the evaluation process. This step acts as a control measure to assess the progress of the strategies. GU’s marketing and the logistic unit will assess the change in sales since the initiation of the marketing plan.
Change in sales numbers will serve as the main assessment criteria of the plan. A negative change in sales revenue will imply that the plan has flopped necessitating review. An increase in revenues will indicate surging sales hence the plan is successful but need improvement.
List of References
Averdieck, J. (2011). Gü Chocolate Puds, Business Development Insight Web.
Perner, L. (2008) Food marketing, University of Southern California Web.