Introduction
Today's marketing and sales strategies have turned into "races" for Big Data—data about individual consumers, segments,regional markets, and different channels. The spot onwinners are those that capture the most value from their customers, from their store shelves, and from their interaction (A.T. Kearney 2013).
In all too many businesses there is animportant and unnecessary gap between strategy and execution: a lack of connection between where the enterprise aspires to go and what it can achieve. Yet a small number of companies seem to have this problem solved. They naturally combine strategy and execution in everything they do. These companies seem to make the right options about what type of value to offer and how to deliver it — and those options often run different to the conventional wisdom of the industry (Leinwand & Mainardi 2013).
“Fair Trade USA certifies businesses (allowing them to make use of the Fair Trade logo on their packaging) that “buy from certified farms and organizations” (Cramm, 2015). This type of recommendations hurt the off –brand products the most by indirectly labeling and imprinting to the minds of possible consumers that those goods are below standard and no quality assurance.
Promoting Tio Nino’s Loaf Bread
I have chosen Tio Nino’s Loaf Bread as my off-brand product. It is a low involvement product and Boundless Marketing (2015) describes this kind of involvement that requires onlyminimal information processing since purchases are made due to habitual decisions. The perceived quality signal for this product will be the price. I will also mimic the marketing strategy of famous bread makers such as Della Fattoria, H & F Bread Co., Berkshire Mountain Bakery, Barrie Cullinan, and Macrina.
As defined by the Business Dictionary (2016), segment means “Subdivision of a sector, consisting of distinct but closely linked or related elements, members, or parts.”
Using the U.S. Census (NP2012-T3, 2012), the size of my market segment would be the females 25 to 44 years old and 45 to 64 years old. Females are usually the ones buying and deciding for groceries and ages 25 – 64 are mostly married and living with family (be it newlywed, with children, or grandchildren).
Their purchase decision includes motivation, perception, learning, beliefs and attitudes. As females (or males) grow old, the drive or expression of the consumer of the need to be satisfied will greatly affect the motivation to buy a product which should be low-cost but quality assured.
In the figure below, we can see that the above mentioned ages has a total of 52.05 % in year 2015 (25.73% and 26.32%), 51% after 5 years, 49.35% for 2025, 48% in year 2030, and so on. Though surprisingly, the forecast is lower compared to the population of males (see figure 1.2), I believe females will still be the head of every house’s kitchen.
Now, let us identify what Reference Group Influence means. As explained by Neal et al (2004), a reference group is a group whose recognized perspectives or values are being used by an individual as the basis for his/her current behavior towards consumption or buying a product.
The diffusion determinant of Tio Nino’s Loaf Bread would be the high relevance of product to group (nature of group) and the diffusion inhibitor would be considered conservative since the immediate family will always be the basis (or part) of the decision making in buying a product, especially food.
My Diffusion Enhancement Strategy will be:
Search/target for other markets. I will be targeting not only individuals but also stores or restaurants (businesses will always consider costs)
Restaurants or cafeterias serve bread especially for breakfast, though Tio Nino’s Loaf Bread is off-brand, yet buyers will want everything at lowest cost. Tio Nino’s Loaf Bread costs only 21php compared to 67php Gardenia Bread.
Developing Characteristics of Tio Nino’s Loaf Bread
The characteristics of this product will be on long term focus and concrete. Desired state will be stability with safety and security.
First to execute will be the strategic plan and long-term intent. This is to make Tio Nino’s Loaf Bread a nationally recognized brand name. Below are the step by step techniques in achieving my plan:
Free samples. It's all about the taste and offering free samples in-store allows potential customers to check out the goods without money
Use of advertisements (ad campaign). I always believe that by advertising one business can gain a curious (innovator) customer and through this, the product will then be introduced and recognized.
Being stable will not be a problem, as indicated in page two, bread productsare low involvement and consumers will always buy this kind of product. When it comes to safety and security, Tio Nino’s Load Bread will be open to inspection conducted by World Health Organization (WHO). Assuring the safety and security of the product is always one step ahead to competitors who are not verified yet.
My strategy for this product would be promotion-focused. Personally, I am a risk-taker. I will be willing to try everything first and will still be happy if something goes wrong knowing that I tried rather than by just sitting there and do nothing.
Optimism is the key to success. If others can do it, then why not Tio Nino’s Loaf Bread?
Implementing a prevention-focused plan on this kind of product will not work since a bread product cannot just “run smoothly” in the market (there are already a lot of leading bread factories nowadays).
Here are five steps that will get my campaign off to the right start.
Assess Marketing Communication Opportunities
It's important in this first step to examine and understand the needs of my target market (females ages 25 – 64 and restaurants/cafeterias). They will be looking for quality yet affordable breads.
Communication Channels
I will be using personal communication channels such as face to face meeting, telephone contact, and perhaps a personal sales presentation since my target market (most of them) will be at home as well as the restaurants (which of course the owner might be the one answering the phone call and might consider the campaign). I will also usenonperson communication such as newspapers and magazines, flyers and tarpaulins.
Determining the Objectives
Promotional objectives will be stated in terms of long behaviors by people who have been exposed to my promotional communication. It should be imprinted on them that Tio Nino’s is a tasty bread, with food security, and affordable.
DeterminingPromotion Budget
This will determine the total promotion budget. For example, I have 5,000 pesos for this campaign. I will 2,500 for printing of flyers and tarpaulins. The other 2,500 will be used for a sales representative that will be giving free samples along with the flyers that will located in public places like malls/public market. Salary would be P500 a day for 5 days.
Determine Campaign Effectiveness
This will answer on how well the actual performance measured up versus the planned objectives.I will gather this information by asking my target market whether they recognized or recall specific advertising messages, what they remember about the message, how they felt about the message, and if their attitudes toward the product were affected by the campaign.
Having my campaign strategy, now I have to understand the consumer behavior and how it will affect my marketing strategy.
Consumer’s buyer behavior is influenced by four key factors: Cultural, Social, Personal, And Psychological (Cramm, 2015).
Culture in America is influenced by Europeans, who loves bread and tasty foods but also partly influenced by American Natives. Today, there are a number of foods that are commonly identified as “American comfort food”, such as hamburgers, hot dog buns, potato chips, macaroni and cheese. These of course, mostly used breads (or buns) (Zimmermann, 2015).
I cannot deny the fact that it will be hard to aim for the Social Roles and Status of the target market since it refers to as a set of attitudes and activities that an individual is supposed to have and do according to his/her profession, his/her position in the family, gender, and expectations of the people around him/her. And they cannot just offer loaf bread for snack, or simple sleepover, unless they will be celebrating Thanksgiving or a birthday party.
Kearney (2013) describes Personal Factors as age and lifecycle stage, occupation, economic circumstances, lifestyle (activities, interests, opinions and demographics), personality and self-concept. Again, my target market are females ages 24 – 64 years old, which I believe, in no matter what age, a woman will always be thrifty and practical to her foodstuffs.
The Economic Situation also plays an important role in Consumer behavior since one’s economic situation has great influence on his/her buying behavior. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products.
Each of us sometimes feel the urge to “treat” ourselves by enjoying some luxury once in a while, and bread is not a good way to make you feel better.
This is where the ad campaign will play its role and the sales representative that will be giving free samples and flyers. People might not buy a low-cost product but surely they will consider this once they got out of money.
Tarpaulins and phone calls will also help to remind them that Tio Nino’s Loaf Bread is offering its delightful taste in just an affordable price, half the price of most bread.
References
A.T. KearneyConsulting Firm. (2013). Consumer Products and Retail Strategy. Retrieved from
https://www.atkearney.com/consumer-products-retail/capabilities
Boundless Marketing (2015). “Marketing Changes Due to Involvement.” Retrieved from
https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/consumer-marketing-4/consumer-experience-43/marketing-changes-due-to-involvement-219-4853/
Business Dictionary. (2016). Segment Definition. Retrieved from
http://www.businessdictionary.com/definition/focus-strategy.html
Cramm, S. (2015).The Dawning of a Conscious Consumer. Retrieved from
http://www.strategy-business.com/blog/The-Dawning-of-a-Conscious-Consumer
Gorchels, L. (2010). The Product Manager’s Handbook. Retrieved from
http://www.slideshare.net/gorchels/product-managers-handbook
Leinwand, P., Mainardi, C. (2013). Creating a Strategy That Works. Retrieved from
http://www.strategy-business.com/feature/Creating-a-Strategy-That-Works
Neal, K. M., Qyester, P. G. & Hawkins, D. I. (2004). Consumer Behaviour: Implications for Marketing Strategy (4th ed.). McGraw-Hill Australia.
United States Census. (2012). 2012 National Population Projections: Summary Tables.
Retrieved from http://www.census.gov/population/projections/data/national/2012/
summarytables.html
Zimmermann, K. (2015). American Culture: Traditions and Customs of the United States.
Retrieved from http://www.livescience.com/28945-american-culture.html
