Abstract
The essay focuses on the importance of a marketing plan to any business organization; this document enhances the achievement of the set goals. There are real world examples of firms that have failed or benefited by using a market plan in its activities.
Existing Consumer Product
Polythene paper bags are a common consumer products used worldwide. Paper bags are affordable and light to carry, and this makes majority of people to use them for packaging commodities. Paper bags, however, pose an environmental threat due to their non-degradable nature.
Green marketing revolution has emerged to adapt to customers’ ways of preserving the environment. Production of biodegradable packaging bags will attract many customers. The packaging bags should be lasting to prevent customers from regular disposal. There are a few manufacturing firms specializing in production of biodegradable bags, hence there will be no stiff competition.
The marketing team will require well-branded paper bags, and aim to sell them at affordable prices to attract the customers. The distribution chain should be comprehensive to ensure a continuous supply of the product to the market. High quality product and low prices will enable the firm’s product to gain a competitive advantage over other firms in the market.
Marketing Plan
A marketing plan is a written document, which shows the series of activities involved in achieving a firm’s objectives such as attracting customers, and persuading them to purchase the company’s products (Luther, 2001, p.6). A marketing plan should be updated frequently to ensure that a firm incorporates the changes in the market. The plan can be created independently or as part of a business plan, with the aim of informing the customers on the value of the company’s products or services. Decisions included in a marketing plan can either make a business successful through increased sales, or lead to failure due to low sales of the firm’s products.
An Example of Success
Successful marketing requires firms to have knowledge of the customers’ needs and the competitors’ skills in the market. The capability to create value for customers and maintain their loyalty should be a vital strategy in designing a marketing plan (Luther, 2001, p.16). Kraft Foods Group is an example of a firm that has been successful because of its marketing plan. The managers who designed the marketing plan targeted individuals that desire healthy lives and need ready packaged food and beverages (Lempert, 2012). This has enabled the firm to be the second largest food and beverage producing company worldwide. The products unique branding has protected the firm from imitation by potential competitors.
Kraft Foods Group forecasts future sales to enable managers to plan for unexpected losses, which has a significant role in determining the company’s success. Some climatic seasons may not favor agricultural produce, and this leads to increased prices of raw materials. The firm ensures it has enough raw materials in its stores to ensure a constant food distribution chain at affordable prices.
Kraft Foods Group competitors include Pepsi Co., Nestle, and General Mills, who possess a significant market share. The firm is strategically located, for easy access to customers. This enables marketers to collect useful information regarding the quality of the company’s products. This proximity has enabled the company to distribute food products, without necessarily requiring intermediaries in the supply chain.
An Example of Failure
Kraft Foods Group failure was evident when the management did not include proper budget standards in the marketing plan. This made some customers opt for other cheaper substitutes. People now preferred growing their own vegetables, or eating fresh food from the restaurants, rather than purchasing the company’s processed food products (Lempert, 2012). The customer diversion from the company’s products led to a decrease in sales, and hence low profitability. People are now aware of healthy eating habits, and this largely determines their bargaining power. The need to avoid obesity and other related health problems has forced individuals to acquire healthier food products from other medical sources.
The marketing plan designed by Kraft’s managers should have incorporated plans to take various customers’ needs into account, for instance, the emerging issues on healthy food products for obese people (Lempert, 2012). The prices for the products have increased due to the economic changes worldwide, and this has posed a major challenge on the firm’s sales as people have opted for close substitutes for food and beverage products. Processing green products would attract many customers, and this would increase the firm’s profitability. Failure to design an all-inclusive marketing plan has led to decreased sales by Kraft Foods Group.
Analysis of the Two Examples
Knowledge of the competitors’ strengths and weaknesses help a firm to strategize, and use appropriate ways to venture the market and be successful (Bateman & Snells, 2013, p.14). Ability to include the competitors’ factor in the marketing plan enabled Kraft Foods Group to have a competitive advantage in the market, leading to its success. Failure to include various customer needs in designing the firm’s marketing plan had a negative impact on sales and the firm’s growth. Kraft Foods Group should revise the marketing plan frequently to incorporate the emerging issues in the client’s consumption behaviors.
The Box Office Flop: A Marketing Application
An example of a movie that failed in the market is the animated film Mars need Moms directed by Simon Wells in 2011. The movie is about a nine-year-old boy called Milo, who recognizes the importance of family members, and struggles to rescue his beloved mother from the Martians (Wells & Breathed, 2011, p.5). The movie is regarded as a commercial failure since it received the lowest response among the Walter Disney brands. The film is considered the biggest box office flop in history as it cost more to produce than it acquired in revenue, both domestically and worldwide. The movie recorded a net loss of USD 136 million, which was a major blow to Disney Productions.
Marketing Analysis: What Went Wrong?
The directors did not include the marketing costs despite using $150 million to produce the film. The studio did not focus on creating awareness to the customers, and so the response rate was low. The managers did not change their marketing strategy or adopt a new promotion plan, and this contributed to its failure. There was competition from the release of another film called Battle: Los Angeles, which attracted more audience than Mars need Moms.
The branding technique for the movie was not appropriate as the use of the word ‘mommy’ did not please some members of the society such as boys, who could not imagine of a world controlled by women. The anti-feminist aspect spread through social networks, and discouraged people from watching the movie. The theme of a mother being kidnapped from the child did not present a pleasant and sensible idea to the audience, and this negatively affected the film’s sale. Analysts argued that the maternal overtone did not attract an audience as the filmmakers expected. The managers did not elaborate on the theme, as there were no marketing strategies for the film, which gave different perceptions to people.
Studio executives should have included marketing costs in the production budget of the film. The failure should be assessed to avoid a recurrence of incidences in the film industry. Some experts argue that the technology applied in the film production did not appeal to the audience, though it had been applied in other previous animated productions. These factors contributed to the failure of a film that had used $150 million to produce. Other films such as Polar Express used a lesser budget, and were successful in the market.
It is vital to ensure an appropriate marketing plan is adopted in any business venture for successful results. Use of large amounts of resources does not guarantee success as in the case of the animated film Mars need Moms. The studio managers failed to recognize what their customers require, and this led to the film’s downfall. Customer satisfaction is vital as it influences purchase behavior.
References
Bateman, T. S., & Snell, S. (2012). Management. New York: McGraw-Hill Companies.
Lempert, P. (2012). Food Trends to Watch. Supermarket News. Retrieved from http://www.supermarketnews.com/author/phil-lempert
Luther, W. M. (2001). The marketing plan: How to prepare and implement it. New York: AMACOM.
Wells, S., Green, S., & Breathed, B. (2011). Mars needs moms. Hoofddorp: Buena Vista Home Entertainment.
