Introduction
In 1961, Kuwait Flour Mills & Bakeries Company (KFMB) was established to meet the demand for high-quality foodstuffs that cater to consumers’ needs in Kuwait and ensure food security within its borders. The company has created an enduring impression as a vital provider of support towards ensuring nourishment safety while remaining dedicated to addressing increasing calls for high-quality alimentary throughout Kuwait. KFMB addresses the needs of Kuwait’s food industry, providing top-notch edibles. It satisfies this sector due to its allegiance to safeguarding sustenance in Kuwait and the ascending demand for superior nourishment.
Our service is having a temporary outage. If the issue persists, contact support and include the following error message. KFMB aspires to become renowned for its unwavering dedication to producing only food commodities that satisfy the appetites of Kuwaiti consumers (Target Markets Segmentation and Evaluation Objectives, 2021). Furthermore, this enterprise seeks to broaden its horizons beyond borders by introducing fresh merchandise and enhancing promotional and delivery strategies.
To demonstrate its dedication towards pioneering, client gratification, and constant betterment, the enterprise endeavors to substantiate itself before the business sector, consumers, collaborators, and staff. KFMB aspires to become a front-runner in the food commerce of that area by offering superior-quality food commodities and extraordinary patron amenities. KFMB’s overarching dogma is founded on delivering opulent, top-tier culinary entities that fulfill the needs of Kuwaiti consumers and safeguarding food stability within its borders (The benefits of offering products through variants, 2019).
The corporation pledges firm allegiance to perpetual progress, inventiveness, and gratifying clients’ hunger pangs with utmost contentment. KFMB extends an extensive diversity of comestibles, comprising the recently forged new product tailored to satiate the increasing clamor for nourishing victuals among current generations in Kuwait. Furthermore, this enterprise supplies conventional dietary products such as rice, flour, sugar, oil, and assorted seasonings and relishes.
General Description of Kuwait Flour Mills & Bakeries Company
The region of operation for KFMB is situated in the state of Kuwait. Its focal activities include producing and supplying animal feed, pastry items, and flour. Utilizing a high-tech wheat mill that can process up to 1,500 metric tons daily to create premium wheat goods tailored locally and abroad (Alnasiri, 2021). Furthermore, KFMB owns a state-of-the-art plant that produces diverse varieties of bread loaves alongside cakes or pastries retailed through multiple reputable brand identifiers. Under their trademark “KFM,” KFMB also fabricates raw materials intended for farmlands, plus other agricultural-based entities within not just its borders but further beyond said boundaries into the Gulf regions, too.
Situational Analysis
Current Products
The dominant manufacturer and distributor of flour-based products within Kuwait is the KFMB. Extensive research has been conducted on various factors related to this organization, including assessing its current range of available commodities, identification, and analysis of target audience demographics, and distribution networks. Further scrutiny was undertaken, encompassing appraising rivals operating in the same industry sector and performing detailed financial audits while considering external situational circumstances.
The spectrum of KFMB’s goods on offer includes many options incorporating diverse flour varieties, breads, and pastries from top-notch components. These goods possess attributes such as freshness and an extensive range suitable to cater to different customer requirements that have played a significant role in their triumph over competitors within the market sphere. The company has implemented promotional tactics, including optimally designed advertising strategies, to strengthen its brand name.
However, varying pricing policies targeted at ultimate consumers or distributors comprising discounts and incentives further reinforce its steadfast position. With seamless delivery networks encompassing direct distribution channels reaching out to customers alongside indirect sales through intermediaries also being available, they are ahead compared to rivals operating within similar domains. The KFMB serves many clients, including the hospitality industry, hotels, and restaurants.
Current Target Market(s)
The market that KFMB targets comprises a wide range of purchasers, including households, hotels, and restaurants, alongside other corporate entities. The company adopts a segmentation approach as its modus operandi to selectively direct various markets based on demographic and psychographic criteria. These specified parameters comprise education level, occupation status, and other factors such as lifestyle preferences, attitudes toward certain products, and an individual’s purchasing tendencies over time. However, these carefully screened individuals yearn for bakery items deemed high-quality, essentially baked goods that are fresh at all times, while allowing customers access at affordable rates compared with those from rival companies occupying similar niches in this field.
The company implements segmentation strategies to achieve its goals by targeting different markets based on demographic or psychographic criteria such as income level, age group, occupation status, and education level, while also considering individual preferences toward certain purchasing behaviors. KFMB’s customer base is composed of consumers who seek high-quality bakery products distinguished by their freshness, paired with affordability compared to similar brands produced by competitors. In positioning itself within the market, KFMB promotes its products by emphasizing quality and unique flavors at competitive prices relative to comparable items. The current dissemination system employed by KFMB comprises a diverse mix of direct and indirect means to circulate its products. The firm’s assemblage of distributors is inclusive in terms of types, sizes, and geographic locations, thus providing its service across diversified markets.
SWOT Analysis
Strengths
- Founded in 1961, the KFMB and bakeries offer affordable, high-quality products.
- An extensive production line that runs 24 hours a day.
- Healthy products, free of additives and preservatives.
- Daily fresh baking.
- Variety of products (gluten free products, protein bread, flavoured biscuits; cupcakes; buns).
- Largest gluten-free factory in MENA with competitive production power.
Weaknesses
- Decision makers are lacking in the organization (Bureau, 2019-2020).
- Insufficient technology implementation in distribution points, social media, and website.
- The company neglected feasibility studies, so instead distributed products based on their experience.
- Marketing department ineffective, although the marketing budget in 2019 was 311,626 KD (Bureau, 2019-2020).
- Lack of launch and e-search.
Threats
- Extensive benefits are driving employee turnover.
- Fresh products expire within three days, leading to high losses if unsold or expired.
Opportunities
- Selling unsold/expired products to the pet food company instead of damaging.
- Exploiting unused land for production and sales.
- Internationalizing their brands.
Market Segmentation and Target Market Selection
Segmentation
To effectively target the snack market, KFMB needs to undertake market segmentation. The first step in this process is to divide the entire market into different variables and identify the most profitable segmented groups (Market Segmentation, 2021). Once identified, KFMB needs to craft a compelling message that addresses the needs and preferences of the selected target market, thereby elevating customer satisfaction and outshining the competition.
Segmenting the market according to the four-variable mix as follow:
Table 1 – Four-Variable Segmentation
To effectively target the snack market, KFMB can identify two specific segments. The first segment consists of low-calorie consumers who are mindful of their calorie intake and prefer healthy snack options (Marketing blog, 2021). KFMB can launch a unique “brown pack” specifically for this segment to cater to their dietary requirements.
The second segment is regular snack consumers who enjoy various snack options. KFMB can create a range of products that cater to this segment’s preferences and taste buds. In addition to these two segments, KFMB can target other potential customer groups such as employees, workers in government and private sectors, citizens or residents, university students, diabetics, and those interested in healthy eating habits (Marketing Mix, 2021). By identifying these potential segments, KFMB can tailor its marketing strategies and product offerings to suit its target market’s diverse needs and preferences
Targeting
To effectively target the new product market segment, KFMB must focus on working parents aged 20-50 with full-time jobs, both local and expatriate. According to Philip Kotler, Veronica Wong, John Saunders, and Gary Armstrong (2005), a differentiated marketing strategy creates more sales than an undifferentiated strategy. KFMB adopted this strategy when launching its current new product.
By adopting a differentiated approach, KFMB can tailor its product offerings and marketing messages to suit its target market’s diverse needs and preferences. This can be illustrated in Figure 3, which highlights the importance of segmenting the market and creating unique value propositions for each segment. By catering to the specific needs of each customer group, KFMB can increase customer satisfaction and loyalty, leading to increased sales and revenue (Kuwait Population, 2021). The differentiated approach can also help KFMB to stand out from its competitors and establish itself as a leader in the new product market segment.
- The first marketing mix will target kindergarten, elementary, and primary students.
- The second marketing mix will target low-calorie, healthy, and diabetic consumers—a differentiated marketing strategy.
Positioning
To cultivate an engaging brand identity with respect to its new line-up consisting of both brown- and white-box items, KFMB can adopt new-age packaging techniques that effectively cater towards their target audience’s aesthetic inclinations. Incorporating vivid colour palettes along with playful graphics in the package design can create more visual appeal for customers as well as end consumers. For instance, including images such as a happy-go-lucky panda on products meant for those liking white boxes or even going so far as showcasing it tonally alongside light-coloured designs could highlight the idea behind enjoying one’s culinary pursuits; Whereas designs meant for those fond of brown boxes could contain graphics such as an active squirrel evocative of the health and swiftness that these consumers might prize, alongside warm earth-based tones.
Symbols hold immense power when it comes to conveying ideas and emotions – especially within the context of branding. For KFMB’s upcoming line of products, carefully selected symbols reflecting qualities like intelligence, healthfulness, and positivity may prove particularly effective in capturing consumers’ attention. Importantly, this specific branding approach hasn’t been attempted by KFMB before – presenting both a challenge and an exciting opportunity for the company moving forward.
Current Distributor Networks
Regarding the advancement of Kuwait Flour Mills & Bakeries Company into flour creation and distribution while also producing various coveted bakery delicacies, it is unnecessary for an existing agent network. The fundamental aspect of KFMB’s method is setting up a personal affiliation with its clientele, encompassing both distinct customers and commercial-minded procurers. Individuals interested in obtaining products from KFMB have a variety of options to choose from, including supermarkets, hypermarkets, and convenience stores located throughout Kuwait. Moreover, customers can visit “Sabaq Al-Khair,” an outlet under the direct management of KFMB that serves as a one-stop shop for their requirements. To enhance customer satisfaction concerning shopping experiences even further, we provide online e-commerce solutions via our company’s website, enabling patrons to either receive home deliveries or pick up orders at store premises.
Concerning commerce customers, KFMB retains an unparalleled group of individuals dedicated solely to serving their distinctive requirements. These staff members interface with consumers directly and execute requests while guaranteeing the timely dispensation of merchandise. Furthermore, this enterprise offers personalized solutions in addition to feasible commodities for these clients based on their unique prerequisites and essentials (Lake, 2019).
KFMB operates independently without any reliance on external dealers, as the company does not emphasize expanding its product range, size, or geographical distribution. Instead, KFMB strives to establish strong interpersonal relationships with its clients and ensure absolute satisfaction, leading to customer loyalty (Raimo, 2018). The supply chain procedures employed involve strategies such as just-in-time delivery that assure freshness and premium quality of delivered products; this system is managed meticulously so that timely deliveries are never hindered for customers under any circumstances.
Market Share Acquisition
Table 2: Market Share
Competitive Analysis
It is a relentless race to win customers’ attention in the merciless marketplace of pastry and flour-based goods. These competitors zealously strive to lure identical consumers by providing similar items endowed with comparable traits, rates, dispersion networks, and other supplementary incentives (Alanbaa, 2015). Our establishment faces several formidable foes it must surmount, including Kuwait Flour Mills & Bakery – an inherently adept at milling and baked products; Kuwait Danish Dairy Company- suppliers whose specialty focuses exclusively on dairy produce originating from Denmark, and National Food Products Company, mainly emphasizing food production spheres.
Based on the current situation of KFMB and an analysis of the industry, it has been identified that the company faces competition from various local and international firms. Some prominent local competitors include AL Faisal Bakery, Al Shaheen, and Al Reef Lebanese bakeries, while Al Marai and Americana are significant international competitors (Alnasiri, 2021). Despite the competition, KFMB has a competitive edge over its rivals through its reasonable pricing, government backing, and vast network of 150 distribution points across Kuwait. This unique advantage gives KFMB the ability to increase its market share, unlike other competitors with limited access to the market. For more information on the market share acquisition of bakeries in Kuwait, please refer to Table 2.
Competitive Analysis By Price and Product Variety
Internal Analysis
A SWOT analysis, a planning instrument, conducts strategic evaluations of businesses regarding their areas for improvement and strong points during existing opportunities and risks. One could utilize this technique to gauge internal weaknesses or strengths while accentuating external threats, chances, and revenue options that span Kuwait Flour Mills & Bakeries Company’s (KFMB) food manufacturing business (Control process, 2021) by analyzing these aspects at meetings with KFMB’s sales, PR alongside marking departments inclusive of State Audit Bureau’s annual report covering 2019-20 fiscal year. One can create plans that build on respective competencies while rectifying inadequacies, thereby capturing prospects even as it reduces various hazards under consideration (Ebrahim, 2020). It emerged from the examination that, notwithstanding potential growth possibilities, KFMB showed limited vision besides motivation when considering establishing itself as an international brand name.
Ansoff’s Opportunity Matrix
Ansoff’s Opportunity Matrix is a collaboration of four main aspects of growth and development. Firstly, market penetration determines the performance of a product or service in the market. Secondly, product development requires extensive study of the market and all-inclusive testing of the new product. Thirdly, for a business to promote its products in unexploited regions, it has to find and develop new prospects through a market development method. Fourthly, a diversification plan promotes growth and expansion: it also aids in recognizing new opportunities, promotes revenues, enhances sales, and improves the market share ratio.
Therefore, using Ansoff’s Strategic Matrix and Opportunity Matrix, Kuwait Flour Mills & Bakeries Company (KFMB) can select the appropriate strategy that best suits its growth strategy for the new product. This can be achieved either by launching a new product or by developing the existing product.
In this case, KMFB has introduced a new product, which provides affordable pricing to attract and retain customers. Secondly, the company’s product development is focused on increasing revenue by launching new products in the current market. The above approach has the potential of assisting in identifying prospects of enhancing profit margins through industrializing new merchandise and service provision, as well as penetrating new markets.
External Forces
Various factors that are not within the control of KFMB affect its product(s) and impact the market. Social inclinations, cultural propensities, demographic shifts, economic circumstances, more advanced technological systems, political variables, and ethical deliberations constitute such forces (Kuwait Flourmills, 2021). A few examples would be transforming consumer preferences or individual lifestyles, along with sophisticated technology advancements, leading to adjustments in economic conditions, which can influence demand for bakery flour products.
PESTEL Analysis
Political
- According to Alanbaa (2015), KFMB showed resilience during the Iraq invasion.
- Ebrahim (2020) reported that KFMB tripled its production during the pandemic.
Environmental
- ISO accreditation (Alzaid, 2021).
- Award-winning GUL Food Innovation (Alzaid, 2021)
- The certificate from the ultimately BRAN Abu-Dhabi Exhibition Center (Alzaid, 2021).
- A quality control certificate issued by an industrial, public authority (Kuwait Flourmills, 2021).
Social
- A locally based corporation with seasoned chiefs.
- Kuwait flour mills, Gulfood – Dubai World Trade Centre, 2021
- Local and worldwide exhibitions on food security. (Flourmills in Kuwait, 2021)
- General administration civil defence employee training programs for volunteers to get them ready for pandemics or other similar events (Kuwait flour mills, 2021)
- Preparing General Authority students for employment through KFMB training (Kuwait flour mills, 2021).
Technology
- High-Tech Factories (Flour Mills in Kuwait, 2021)
- We are winning the top in Amir’s Prize for Excellence (Kuwait Flourmills, 2021).
- Award-winning engineering launch and technological advancement award as a great plant.
Economic
- A vital supporter and a tributary of Kuwait’s industry (Kuwait Flourmills, 2021).
- Securing food supplies (Kuwait Flourmills, 2021).
- Purchase of an animal feed plant (2021; Kuwait flour mills)
- Acquisition of Kuwait Supply Company (2021; Kuwait flour mills)
- A collaboration contract was signed with Kuwait Aviation Services Co. (Kuwait flour mills, 2021).
Legal
- Government support (Kuwait flour mills, 2021)
- Restriction for the Audit Bureau (Bureau, 2020)
- The internal expenditure mechanism is not subject to laws or policies (Bureau, 2020).
- Some company policies and procedures manuals have flaws (Bureau, 2020).
- Because the corporation took too long to provide building permits for the manufacturing land, it suffered financial losses (Bureau, 2020).
Companies Annual Sales
Table 3: Companies Sales
Table 2 demonstrates that Kuwait Flour Mills and Bakeries (KFMB) stand out from its competitors by offering a diverse range of products at affordable prices. In contrast, other competitors do not provide their customers with the same level of benefits.
Problem Statements
It is critical to identify issues that may cause setbacks. For instance, KFMB may lose some product line profits while experiencing other impediments in terms of quality or even reputation. Keeping in mind that the new product is not a consistent source of revenue, a spark at first may turn into a flame over time, implying that if KFMB encounters a severe problem in such a competitive market, its competitors are ready to jump in their place whenever they can (Cuthbert, 2021). These issues can be summarized as follows:
There are primary problems in the mass marketing approach that can affect the launch of the new product line. One such problem is the lack of segmentation and an unoptimized distribution strategy. Some of the secondary issues include economic dynamics, competition from rival entities, and the market pricing of the product. Therefore, specific marketing objectives need to be set to address these issues and ensure a successful launch, as well as develop a robust marketing plan for the new product.
The marketing objectives for the new product include increasing brand awareness, reaching a wider audience, and generating higher sales revenue. KFMB can achieve these objectives by creating a targeted marketing campaign that resonates with its target audience and effectively communicates the unique value proposition of the new product. By addressing distribution issues and executing a well-designed marketing plan, KFMB can position the new product as a best-selling product and strengthen its market presence.
Raising Awareness of the New Product
A survey was conducted among 40 mothers, out of which 35 responded. The survey results revealed that only five respondents were aware of the new product, which is only 14% of the total respondents. Therefore, increasing brand awareness among the target audience is essential to increase sales for a new product (Almarai, 2019). Various methods for improving understanding include participating in private school events and using aggressive advertising and promotions on billboards, television, buses, and hoardings, which will be discussed later. (See Appendix F)
Survey Results
A recent poll consisting of a sample size of 40 mothers revealed that an impressive majority, comprising 30 individuals (75%), expressed their willingness to invest in the new product. 8 individuals (21%) of respondents voiced reluctance by selecting the answer option labeled no, and the remaining 2 individuals (3%) proportion manifested as maybe. According to the results of this inquiry, many individuals within our intended market are inclined toward procuring novel merchandise. This observation aligns with society’s increasing inclination for food options that promote health and convenience.
Nevertheless, a new product’s lack of recognition among its target audience may present an obstacle in achieving projected revenue goals, based on indications from previous surveys conducted. Therefore, it becomes imperative to adopt means that would enhance public familiarity and endorsement thereof, thereby causing it to appeal more strongly to potential customers serenely. To achieve these objectives effectively, exploring methods aimed at participating actively during private school events alongside heavy advertisements via varied media channels such as billboards or buses, etc., could prove valuable gambits – according to preferred course recommendations provided above – geared toward augmenting customer awareness levels while simultaneously raising curiosity about what advantages purchasing items hosted by new product presents over other like products available elsewhere.
Capturing Them When They Are Young
Why this goal is critical: For KFMB’s long-term survival, establishing solid bonds early on will result in a stable and loyal customer base. This ‘acquisition strategy’ has helped many international brands such as Mazda, Himalaya, and others grow. 2021 (Cuthbert)
Solution: This term refers to the children who will be attracted by using a new product and become loyal customers. As a result, the company can achieve its long-term marketing goal by increasing its customer base.
Restructuring the New Values and Lifestyle Habits
Why this is a crucial objective: Due to the rise of families with two working parents in Kuwait over the past ten years, a new marketing opportunity to promote quick and healthy meals has opened up in the age of speed and busy lifestyles. (2021; “Labor force participation rate, female – Kuwait | Data”). A new product may be able to assist the business in restructuring how values and lifestyle habits are taught. A new product may change how quickly accessible, healthy food is consumed. Working parents will also benefit from this product as a remedy.
Corporate Social Responsibility
Why is this goal primary: For an organization of this size, like KFMB, improving brand image is always a challenge and an objective. During the COVID pandemic, the new product initiative was launched, enhancing the brand’s perception among current and potential customers. KFMB uses this chance to give back to the neighborhood by keeping the costs low.
Our Proposal: To increase the overall visibility of the new product, we propose launching two product variants, the White Pack and the Brown Pack, as shown below.
Both of these packs will cost 500 fils. As a result, the revised marketing mix is provided below.
Revised Marketing Mix
Product
According to marketing experts (“The benefits of offering products through variants,” 2019), having a product variant increases the likelihood of a sale. As shown above, the current new product variant has only one variant (blue). This report proposes to give consumers more options by introducing two variants, as shown below.
Table 4: Production volumes divided according to bakery sales of KFMB
Attractive packaging and additional options will tempt customers even more because the sale of white bread is about 2.5 times that of brown bread; the white pack is estimated to contribute 70% of the total production volume. To achieve aggressive pricing, the new product needs to be launched with a “predatory pricing” mindset (Campbell, 2021). This strategy will continue in the long term as it is part of KFM’s community service initiative; since white bread consumption is 2.5 times that of brown bread, sales of the White pack are expected to be higher. KFM may also consider more lenient payment terms for retailers and distributors, allowing credit sales compared to other established products.
Place
To make the marketplace more granular, each Governorate will be further segregated into indoor and outdoor marketing strategies (see Appendix B and C). Indoor marketing venues will include dedicated booths in shopping malls (see Appendix D), public park hoardings, and food festival stalls. Outdoor marketing strategies include sponsoring football matches (see Appendix A), hiring billboards near schools and offices, and screen-based advertisements.
The focus will be on the 82 Co-Ops, and the new product will be made available at significant shops, large convenience stores, and large-scale markets like Sultan Centre and Lulu Hypermarket. The new product should also be introduced in both varieties at private schools to boost sales. Teachers could counsel parents on the value of launching healthy eating habits and use the new product as an excellent illustration.
Promotion Distribution
KFM needs to define a granular marketing strategy. The market can be segmented into 5 Governorate zones: Hawalli, Al-Ahmadi, Al-Jahra, Al-Farwaniya, and Mubarak Al-Kabeer Governorate. Population-wise distribution needs to be considered. The population-wise distribution is furnished as follows.
Table 5: Population of 5 Governorates
Based on the population census, the budget for each place may be finalized in the same proportion. Aside from KFM’s more than 150 existing distribution outlets, internet sales are also intended to be a crucial point of purchase. A direct marketing operation in which instructors from both public and private schools are trained on the benefits of healthy and nutritious food habits for children may be a superb strategy. Free sample delivery straight to parents’ hands might be an initial step. To make the marketing campaign more appealing, the group has come up with two messages in punch line style, i.e., for the first two weeks of advertising, the tagline will be “Feeling Peckish?”
Guerilla Strategy
A marketing method known as guerrilla marketing aims to advertise a good or service in a unique, imaginative, and frequently low-cost manner. Based on our prior experiences in Kuwait, we devised a winning strategy. We will pique people’s interest by launching the advertisement in the street with the question “Feeling Peckish?” – which represents a friendly term for wanting something to eat as a snack – with empty backgrounds on billboards for two weeks and then launching the entire idea with the phrase “Grab a New product,” as illustrated below (see Appendix C).
Launching a New Product
In launching a new product, social media sites like Facebook, Instagram, and Twitter are excellent for reaching a broad audience. With a significant social media following, KFMB can target moms or parents in their neighborhood with interesting postings and appealing photographs or videos of the new product. Utilizing the influence of social media, KFMB can successfully inform its target market about the new product.
Influencer Marketing and Participating in Private School Events
The new product may be promoted effectively by teaming with regional influencers or mommy bloggers with a sizable following among the target population. These influencers can publish or share product reviews on their social media pages, which can assist in building consumer confidence in it and entice others to buy it. An excellent strategy to connect with the target audience is participating in private school activities like fairs, open houses, and parent-teacher conferences. KFMB can successfully highlight the features and advantages of the new product and entice potential consumers to try it out by putting up a booth and providing product samples.
Outdoor Advertising, Promotions, and Discounts
The new product may be promoted to a larger audience using billboards, buses, hoardings, and other outdoor advertising media. KFMB can successfully reach out to potential consumers and persuade them to try out the product by picking busy places where the target demographic is likely to be present and designing eye-catching adverts highlighting the advantages of the new product. Promos and discounts on the new product might entice customers to try it and boost sales. KFMB could provide a value or a buy one, get one free deal as an illustration. KFMB may boost brand recognition and sales by incentivizing potential buyers to sample the product.
Product Differentiation and Brand Positioning
The new product is a non-durable product that consists of two sandwiches, a mini cupcake, and two types of biscuits. These boxes are available to everyone at an affordable price and are mainly targeted toward students and workers. The new product has unique attributes that differentiate it from other products in the market:
- Price: The new product will be sold at a low price of 500 fils, making it accessible to a broader range of customers (Alanbaa, 2015). It is made of essential wheat items produced exclusively for the box by KFMB.
- Quality: Product quality is a crucial positioning tool, and KFMB is known for its high hygiene quality standards. The new product contains products of good quality standards and high nutritional value that benefit young students (Alzaid, 2021). KFMB produces all ingredients locally, ensuring availability and variety. KFMB runs a quality control check on each product after each production process, utilizing its specialist workforce.
- Accessibility: KFMB restocks the New product daily (excluding weekends) at 82 main selling points and in some co-ops (Aliexpress, 2021). They also deliver their products to supermarkets nationwide, making them readily available for customers.
Brand Positioning
The process by which a business shapes the perception of its brand or product in the minds of the market and its target audience is known as brand positioning. Determine the target market’s demographics and target market identification with the use of brand positioning (Almarai, 2019). The launch of promotional techniques is also aided by it; brand positioning is more than simply a name; it is also about value, accomplishments, and legacy. According to Kotler, Wong, Saunders, and Armstrong (2005), the brand strategy for a new product is line extension (Alnasiri, 2021). It is an addition to their hallmark goods that aims to delight busy parents with creative ideas delivered in a compact brunch package, saving them time and bother.
Marketing Implementation
In this marketing plan stage, the marketing strategy is transformed into an actual plan with a clear vision for evaluation and control. The implementation plan includes the following phases:
- Re-designing: This phase spans two and a half months, from May to mid-July, with a marketing budget of 190,660 KD (see Appendix A). During this time, the team will suggest the best possible designs for the two new products. They will create, choose, and finalize the most appropriate design before moving on to the next phase.
- Soft Launching: This phase will last two weeks, from mid-July to mid-August. It involves introducing the product to the market and gathering customer feedback to identify necessary improvements before the official launch.
- Assessing: This phase takes place before the official launch and lasts for two weeks. The team will re-evaluate the soft launching phase and check for any errors or issues that must be addressed before the official launch.
- Official Launching: The official launch phase involves advertising the New product in the market and will take place from September to November (see Appendix F).
The implementation plan follows the outlined schedule to ensure that each phase is completed on time and that the marketing campaign is executed successfully.
The milestones specify the critical marketing initiatives (see Appendices F and G).
Each one must be completed on schedule and within budget.
- In Kuwait, it took 65% of the brunch market within six months.
- 85% more customers will become aware of a new product within six months.
- Within a year, achieve a minimum 20% return on the marketing spend.
- Maintaining customer loyalty to KFM (community service) and emphasizing the next generation
Evaluation and Control
Evaluation Process
The process of tracking the effectiveness and efficiency of the marketing plan and initiatives is called evaluation and control. It guarantees that the marketing strategy’s goals are met and that there are no surprises when implementing a marketing plan. It also assesses and monitors the performance of the projected marketing operations.
Evaluation is concerned with more than just the present implementation of the marketing plan; it also offers an understanding of future opportunities and risks (Genchev, 2015). This procedure entails launching performance criteria that vary depending on the nature of the marketing plan’s responsibilities. The performance is documented in data, then analysed to determine the results. The data are then used to fill gaps and repair errors during the marketing strategy’s implementation (see Figure 7).
KFMB should use the four actions shown below to design and maintain a consistent and effective marketing aim:
The KFMB Board of Directors first establishes a marketing goal and then evaluates its performance and growth compared to market competitors. After a predetermined period, such as a month or quarter, management must convene to reassess the marketing plan’s effectiveness and address any gaps that must be filled to meet the marketing goal.
Controlling Achievements of Goals
Finally, conducting a periodic review after each marketing campaign (see Appendix F) using market surveys, focus groups, and online questionnaires is recommended. The purpose of this review is threefold:
- Analyze data from market surveys and internal sales records to evaluate customer response to various promotional efforts. Customer feedback is a valuable source of information for any business (DP Blogs, 2016).
- Determine if there is a gap between intended goals and actual results and make necessary changes. The board of management at KFMB can provide existing sales reports in correspondence with customer responses to ensure better results.
- Evaluate the effectiveness of different promotional elements. Marketing can be an expensive operational cost for any business due to the expenses associated with advertising, research, launch, team execution, and evaluation. However, this expense can be considered an investment for the business, and a higher return on investment will indicate the successful implementation of marketing strategies (DP Blogs, 2016).
Expected Financial Return
The central aspect of measuring the number of goals attained is evaluating the return after implementing a marketing plan.
Calculating Breakeven Points
At least a 20% return on our marketing spend will be used within the following academic year.
Table 6: Marketing Costs
The breakeven point (BEP) analysis indicates how many boxes must be sold yearly to attain the BEP.
Table 7: Breakeven Point
Conclusion and Recommendations
In conclusion, the market plan was launched to create a new strategy for Kuwait Flour Mills & Bakeries Company (KFMB) to market and distribute its new product, which is now part of its product portfolio. The target market sectors were identified by conducting necessary marketing research and collecting primary and secondary data, and a marketing mix was created to suit each industry (System, 2021). The goal was to achieve a market share of over 65% of the target market. An advertising strategy was devised using various marketing techniques and practices (see Appendix F) to create compelling customer interaction.
Recommendations
To ensure the success of the new product in the market, here are some recommendations for Kuwait Flour Mills & Bakeries Company (KFMB):
- Product improvements: KFMB can consider adding new features or improving existing features of the new product to increase the level of satisfaction of existing customers and acquire new customers.
- Innovation and launch: KFMB should aim to continuously launch and present modern versions of new products to create a wide range of products that keep pace with market launches.
- Benefit from customer feedback: KFMB can implement feedback strategies and communicate with customers through various platforms, including customer service, website forums, social media platforms, and survey forms, to understand customer needs and preferences.
- Retargeting campaigns: KFMB can implement retargeting campaigns to regain customers who stopped buying the product and attract new customers.
- Exploring new markets: KFMB can target new segments and sectors to extend the product’s life.
- Continuous communication with customers: KFMB can provide a means of live chatting or have a customer service tool or platform to address customer queries and turn them into successful purchases.
- Marketing Audit: KFMB should perform regular marketing audits to ensure the marketing plan is executed as expected and goals are met without gaps. A third-party organization can be engaged to deliver transparent reports that will help management address any gaps that may occur.
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Appendix
Appendix A – Marketing Cost
*40,000 lunch boxes giveaway for malls booth for 5 weekends
Appendix B – Outdoor Buildings Screen Ads
Appendix C – Outdoor Billboards Ads
Appendix D – Indoor Mall Boot
Appendix E – Radio / TV Ads
Appendix F: Part 1
Appendix F: Part 2
Appendix G: Part 1
All prices are a quotation by aliexpress wholesale:
Appendix G: Part 2
