Abstract
Wheat Fillets Limited manufactures wheat products for human consumption. This comprehensive marketing plan covers market segmentation and various properly researched marketing strategies this company intends to employ in order to cut a niche in food and beverages market in Australia especially in Queensland.
As the first market player to introduce natural wheat fillets in this market with an unlimited potential, the company intends to offer different grades of high quality wheat fillets for every household irrespective of their household income.
This product comes with a unique combination of different nutrients laced with vitamin A. Reflectively, this twist adds comparative advantage above other competitors as it offers additional nutrient at the same price as other wheat products. Besides, it is easier to cook and takes approximately five minutes to prepare. As the world is embracing the need for energy conservation, this modification comes at the right time as a solution.
To jumpstart operations, we intend to invest one and a half million dollars over a period of twelve months in addition to consultancy services offered to food outlets, hotels, and motels intending to incorporate this product into their recipe. Benefits will be derived from direct sales and properly developed distribution chain across the territory of Queensland.
Within six months, it is projected that the revenues from consultancy will contribute 10% of the total revenue stream. This paper reflects on the market mix, PEST analysis, competition analysis, consumer analysis, geographical mix, market analysis, positioning strategy, and product analysis of a marketing plan for Wheat Fillets Company based in Brisbane, Queensland.
Introduction
Marketing strategy is essential before actualizing projections of a blue print. As a matter of fact, this plan functions on the margins of informed decision making after comprehensive research on viability and sustainability of a new product or a modified product (Rossiter & Bellman, 2005, p.56).
In order to achieve desired margins in sales and total revenues generated, a proper marketing plan should integrate entry strategy, comparative advantage, and market segmentation since in most cases, there is always a strong competitor or competitors that passing might prove challenging due to existence of consumer perceptions and household names (Shimp, 2007, p.13).
This analytical research paper explores the best bundle of marketing techniques Wheat Fillets Company intend to employ in a bid to successfully introduce a new product called Natural Wheat Fillets in the Queensland market in Australia over a period of twelve months with an estimated budget of one and a half million dollars.
As the first player to introduce this product in the Queensland market with unexploited potential, the company intends to integrate this product as a daily meal for every household for different classes depending on the amount of disposable income of a family (Shimp, 2007, p.31).
This product comes with a complete balanced food nutrients dominated by vitamin A. Reflectively, this twist adds comparative advantage above other competitors as it offers maximum nutrient value at a price affordable to targeted market.
In order to achieve this target, the paper reflects on the proper information about the market, competition, product, marketing strategy, and distribution patterns arrived at after scientific decision making process consisting of pricing, product, and efficiency concepts (Belch & Belch, 2009, p.45). In addition, the treatise is specific on the criteria and weight distributed to each of the above concepts and competitive advantage.
Review of the Main Competitors
Market for food products has been in existence since the era of the primitive society. Over time, different types of wheat products have either been developed or the older versions modified to embrace the dynamics of price and health. Therefore, it is necessary to review the main competitors and design a unique feature to better our standing in the competitive advantage bracket.
The main competitors at present in this market are the Australian Wheat Board (AWB), the Against the Grain Gournet Food LLC, and Lion Nathan National Foods. AWB has been in the market for over three decades with current turn over of more than fifty million dollars annually. Against the Grain Gournet Food LLC has been operational since 2005 and has current turnover of above $100,000. In addition, the Northbourne Nominees Pty Ltd has also cut a niche in the market though at micro level.
After market analysis, it is apparent that Australian Wheat Board is the most outstanding competitor since it has been in the market for more than three decades. Due to its large marketing networks and apparently big turnover in sales annually, it reaps heavy benefits from economies of scale and therefore, its products are relatively cheaper than those of the other competitors.
Moreover, the company has become a household name in Australia due to its numerous philanthropic activities and majority of its customers have developed a perception that it is always the best (Belch & Belch, 2009, p.45). In addition, the company is financially stable and spends millions in direct commercial television and radio advertisements of its products reaching majority of Australian families who are the targeted customer.
Besides, it has more than two hundred different distribution stores a cross Australia and runs semi-annual promotions when loyal customers are rewarded with discounts and other after sale services such as free delivery for bulky purchase and replacement of expired products (Belch & Belch, 2009, p.55). However, these products take longer to cook and luck nutrients our product intend to offer. In addition, it is perceived by a number of Australian citizens as a company operating on political clandestine.
Environmental Analysis
Environmental analysis is essential in projecting the sustainability and forecasting success of a marketing plan. In this segment, the market is review on the facets of social, economical, technological, and other factors which influence the business environment.
Political and Economic Aspects
Essentials of political operation in the Australian market have limited influence on business operation due to its stability and policies on economic liberalization. Australia is a democratic nation with limited cultural or religious stresses. As a matter of fact, this peaceful group forms the bulwark of the targeted users of this product.
This aspect encourages smooth business operations and predictability of the future market trends. With the full support of political class to the business community, the overall growth and development of the marketing network is projected as economic policies in operation are inclined towards diversification and promoting business opportunities for investors (Belch & Belch, 2009, p.95).
In addition, the commercial law in Australia has provision of trademark rights and patent which eliminate fraudulent opportunities to protect such a company from fraudsters and copyright infringers. This is an assurance of protection against illegal trade though the process of registration is time consuming and very expensive.
In the long run, this friendly political climate is expected to ease penetration and segmentation of the market. However, with the current economic meltdown, expenditure on food stuff has declined as families tighten budget in response.
Technology and social Aspects
Comprehensively, the marketer should review technological conversancy and lifestyle of targeted customers. Majority of the Australian population and technology conversant and have embraced new technological was of life. Their lifestyle revolves around technology from transport to communication.
Since this product is technology dependent, it is necessary to establish the estimate statistics on the same. Research has it that Australia though populous, has a very high percentage in literary and basic technological skills. Specifically, this rate is higher in youths and young families who the targeted consumers; making this a good business opportunity.
In addition, Australia has better physical infrastructures such as well maintained land transport network to facilitate market accessibility and substantially reduce overhead costs associate with transportation (Belch & Belch, 2009, p.76). A properly modeled penetration strategy should have minimal disturbances to the market and the company. Therefore, it is important to establish means and ways to reach the potential market.
To achieve this, the company intends to segment and differentiate Australia market along consumer-based market segmentation procedures (Longenecker, Petty, Palich, and Moore, 2009, p.98). This product introduction targets all the age brackets and has medicinal value for those suffering from diabetes.
Often this group spends a lot of resources on synthetics products that can be replaced the Natural Wheat Fillets. Therefore, it is important to appreciate comprehensive population patterns for the population across the streets of Brisbane, hotels, motels, collages, and other food outlets.
Consumer Analysis
This product target families on both end of economic ladder. They use wheat products often and have a budget allocation for the same from time to time. These families are spread across all regions of Queensland and are major consumers of wheat as revealed by the current statistics.
In addition, the product targets hotels, motels, schools, hospitals, collages, and other food outlets who serve wheat products as part of their recipe (Adler, 2008, p.34). Despite the fact that the market for wheat products have been in existence for along time, it comes in larger quantity, lacks additional value, and expensive to low income earning families (Longenecker, Petty, Palich, and Moore, 2009, p.65).
Due to economic hard times, this group operates on a relatively fixed budget and is keen on cost cutting. Their budget is instigated by wants and not impulse. Due to exposure to information sources such as new papers, television, radio, and magazines, product announcement through these avenues and a word of mouth would come in handy.
Decision on the best product therefore, would rely on information on multiple exposures to different competing products (Adler, 2008, p.66). Consequently, due to high literacy level and technological exposure this group is likely to choose a particular product after comparison on price, quantity, content, and benefits with other products of the same nature. Since this product is100% natural, laced with vitamin A and comes in smaller quantity at a competitive price, this group is likely to opt for this pocket friendly version.
The targeted group members are spread across the regions of Australia. Thus, the whole region is opened to business without any restrictions upon approval by the bureau of standards board. Specifically, this group consists of adults, especially women who have basic education with a household income of as little as $500 and users of wheat products.
Consequently, this product has no limit on the age, gender, income, and class of its user(Adler, 2008, p.88). In addition, this group read variety of business advertisement magazines, have unlimited access to television, and are above average in literacy level. Besides, they listen to radio while commuting in public means of transport daily exposing them to more advertisement information.
Market Segmentation
This market is subdivided into three distinct segments: the consumer, small and medium business, and institutions segments.
Small and Medium Business Segmentation
This market captures small food outlets, hotels, motels, and retail businesses across the regions of Marlboro and beyond. Wheat products destined for this market are often expensive, and lack the value addition component of the nutrient additives. Sometimes, quality is compromised due to the volumes of delivery for this market.
Wheat Fillets Company intends to introduce the Natural Wheat Fillets to this market promising diversity in types, lower price, and health with the introduction of vitamin A additive. Ten kilograms of this product will cost twenty dollars, in addition to five percent discount for bulky purchase above 1000 kilograms.
As an incentive, the company will offer free delivery to customers who purchase large quantities (Shimp, 2007, p.54). Besides, this product is designed to cook within a time span of less than ten minutes and would save substantial cost on fuel for these business ventures. Therefore, this segment is influenced by competitive pricing, energy conservation equation, and health value for optimal benefits at a competitive price (Hutton & Mulhern, 2002, p.24).
Institutional Segmentation
The city of Marlboro has several schools, homes, collages, hospitals among other institution with feeding programs. These institutions are strategically located and uniformly spread across the accessible market of Queensland. Nearly one hundred percept of people found in these institutions are consumers of wheat products.
With properly drawn partnership and memorandum of understanding, the market is within our influence since our competitors lack this aspect (Richard, 2004, p.65). Specifically, the vitamin additive would give the product a competitive age in schools and hospitals which campaign for healthy living through diet. Also, the competitive pricing will facilitate its sustainability in the highly differentiated market (Longenecker, Petty, Palich, and Moore, 2009, p.68).
Consumer Segment
This is the largest segment for the Natural Wheat Fillets product. This segment comprises of households who consume wheat products. Since this product come in smaller packages and has an additional nutritional value, the segment is influenced by differential quantification, competitive pricing, and energy conservation, ease of preparation, nutritional value and delicacy.
In addition, this product is largely consumed by the low income earners who would appreciate a product of high quality presented in smaller and affordable qualities (Harrison & St. John, 2010, p.100). Therefore, Wheat Fillets Company has come up with this product to position itself in this segment.
Target Audience
Wheat is a staple food in Australia with its annual production estimates at over three million tones. Every household is a potential consumer of this agricultural product. The Queensland City market comprises of 4, 510, 000 consumers of different ages. Majority of these consumers are middle income earning.
The population growth rate is projected at 3.4 percent per annum. The targeted consumers are drawn from different economic backgrounds, religion, and class. Currently, this population is already consuming wheat products. As the population growth rate surges, this number is expected to increase by 3% in the next year (Harrison & St. John, 2010, p.79).
Therefore, the potential number of over four million customers is expected to reach five million. Recent studies indicate that majority of this population are slowly but steadily embracing the need for healthy dietary and cost cutting on energy. Subsequently, steady rapid growth is projected over the next one year and beyond (Parente, 2006, p.34).
Geographical Location Aspect
Market for Natural Wheat Fillets is concentrated in Queensland territory north of New South Wales territory. This state is often called the “holiday state” and has numerous institutions, hotels, motels, fast food outlets, and other private and government institutions due to the numerous tourist visits across the year.
Besides, the population is approximately four million; the targeted market. In addition, majority of this population consist of working class families with an average income of 700 dollars per month. Due to relatively low income, this population prefers high quality at an affordable price (Gelder, 2005, p.78).
Fortunately, our product comes in handy to provide quality at a competitive price and contribute secondarily in energy conservation. Moreover, the current population is projected to increase by 60,000 in the next one year as a result of birth, immigration, among other factors. The capital city of this territory: Brisbane boost of industries, commercial hubs, and institution which is a ready market (Dagnino and Rocco, 2009, p.198).
Positioning Strategies
In the overcrowded market for food products in Australia, product position is directly linked to the success in the short and long term especially for a new product. In order to achieve the desired goals, positioning ensures clear difference of the new product from the existing products (Fahey, 1999, p.23). Thus, the following strategies will be applied.
First-Mover Strategy
We intend to position this product as the first of its kind in the market. As the first player for this kind of wheat product, we project a steady market share gain within six months. Once this is achieved, the delivery channel will revolve on quality maintenance to support the leading marketer status (Dagnino and Rocco, 2009, p.87).
In the process, a permanent and positive image of the company will be glued in the minds of our clients. In addition, series of market research on demands of the consumers will be carried periodically to improve on satisfaction, desires, and expand on new market territories (Dagnino and Rocco, 2009, p.87). In the process, focus will be directed to the most competitive price and what the customers are able and willing to pay.
In order to cut a unique niche, the right audience will be captivated by the smaller portions available, vitamin A additive, and ‘easy to prepare’ and energy saving benefits. Despite the crowded market for wheat products, Natural Wheat Fillets is first of its kind. Since this product will be manufactured in Queensland, we intend to include this in the “Buy Queensland, Build Queensland” marketing advertisement strategy (Belch & Belch, 2009, p.45).
Multi-brand Strategy
In order to diversify market operations, WFL intends to create multiple products from the same product with different coloration, scent, sizes, and packaging (Harrison & St. John, 2010, p.68). This will create an environment of own competition and block other competitors from encroaching into the company’s market (Blythe, 2006, p.23).
These sub-products will be differentiated by features, prices, and difference in quality. As forecasted in the market research, this strategy will be successful towards dominance as it offers variety of options to consumers, while at the same time, maximizing benefits of economies of scale (Belch & Belch, 2009, p.45).
Since Queensland market has low entry barriers, we are likely to reap from the experimenting consumers as the product is a daily meal for most Australian population. The high and the low end varieties will target the high and low income earning consumers. With the high end and low end varieties in the market, little room will be available for competitors to create a third product based on quality (Adler, 2008, p.56).
Demographic Strategy, Research, and Advertisement
This product targets every person irrespective of the economic arms. In order to achieve this aim, demographic differentiation will be based on income supported by strategic packaging and series of relevant marketing campaigns. Since AWB has established itself in the market, this would the best approach towards commanding a price premium (Waller, 1998, p.32).
As a result, the fair pricing mechanism among other factors will skew competitive advantage positively. In addition, the company intend to recruit distribution agencies a cross the regions of Queensland and well trained marketers for these product.
Moreover, the company has allocated a semi-annual budget of twenty thousand dollars on advertisement and periodic promotions. In order to remain relevant to the ever changing trends in the market, ten percent of projected revenues will be pumped back into research and product modification as dictated by demand and supply equations (Wang, 2007, p.124).
Conclusion
Properly researched marketing plan determine the success and sustainability in penetrating a market with a new product. To increase credibility and maintain professionalism, product processes and feature should flawlessly facilitate a healthy and lifetime relationship between the company and its clients.
A properly designed market plan should be practical in presenting brand knowledge, awareness, penetration strategy, and passing information to target audience. In achieving these objectives, the plan should map possible competition, positioning strategy, consumer and market analysis, and geographical region of operation.
Generally, these concepts are vital in forecasting and acts as a guide towards actualizing a marketing plan blue print. However, the plan should be flexible to market dynamics and embrace alterations where necessary.
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