Marketing Strategy
Marketing Objectives
The major objective of S.J brand is to deliver a strong brand of organic food that satisfies the health needs of the targeted market. The S.J brand will assist in helping the targeted market to avoid the consumption of harmful products. Other than satisfying the health needs, KSOM S.J brand aims to realize specific profitability, financial, market share, and branding objectives. A $100,000 of profits raised will be channeled towards the funding of the MBA scholarship program within the 2-year period. For this reason, marketing objectives of the S.J brand are:
Maintain an overall low level of operating costs ($9000 for Kiosk Lease and $15,000 for product costs)
Donate $100,000 to the MBA scholarship fund during the 2 years by achieving the projected target of $25,000 for each trading quarter
Decreasing marketing expenses by 2 % every quarter
Realize a 5% market growth rate
Maintain a high profit margin for the KSOM product
Position the S.J brand as the strongest organic brand in the KSOM community in addition to keeping packing costs low
Increase market share by selling low cost organic snacks and foods
Target Markets and Audience
KSOM S.J product targets the organic market in given the increased level of opportunities available in this market. KSOM aims to capitalize on the increased conscious nature of consumers as far as the consumption of organic foods is concerned and the need to live healthier lifestyles. The targeted audience for the KSOM S.J brand are the health conscious residents in the seven boroughs and townships in Lackwanna Country. Majority of families in this country earn an average annual income of about $45,000. The lack of organic stores in the region also increases the likelihood of increased consumption from these consumers.
Positioning
KSOM S.J aims to position itself as premier company that offers unique organic products. Low cost product offering is certain to increase KSOM S.J competitive advantage. The strong Christian background and religious approach to healthy lifestyles will enable the company to differentiate itself from the competition. The wide range of low cost organic products such as cookies, crackers, chips, nuts, bars, and candy coupled with original packaging will help to distinguish KSOM S.J from the competition and attain unique differentiation. This is certain to keep allow consumers to recognize well-established organic brands
Strategies
This section covers the marketing mix for KSOM S.J brands and the different strategies that will be adopted under each strategic category. These strategies are aimed at creating product and brand awareness, communicating the product offerings through different promotional channels, and participating in actual sales activities (Armstrong. 2006).
Strategies and Programs
The Product Strategy
As earlier mentioned, KSOM S.J intends to supply and distribute a range of organic snacks in Lackwanna Country. These products include high quality organic food brands such as such as cookies, crackers, chips, nuts, bars, and candy. The unique feature of these products is their natural, healthy, and versatile characteristics.
The Place Strategy
Industry analysis and increasing trends in the around Lackwanna Country makes it the appropriate market for organic products produced and distributed by KSOM S.J.
The Promotion Strategy
Several promotion mediums will be used to distribute KSOM organic products. These mediums include direct sales from Kiosks, distribution retail distributors, and dial-a product services. Communication and advertising channels will involve the internet (KSOM’s website and KSOM pages on social media networks), the print media (University magazines, and posters), and church services (Kotler, & Keller, 2009).
Pricing Strategy
The prices for the organic products will be dependent upon several factors. These include the quality and the quantity, and the prevailing market prices for organic products. However, the pricing will be done in a low priced manner such that it does not scare and neither shall it compromise the quality of organic products.
Marketing Research
Information will be collected from clients and other returning customers. Equally, a survey questionnaire will be issued to random clients to collect their views concerning the product offerings from the company (Kotler, & Keller, 2009). Information collected from the market research will be used in improving the product development and supply (Kotler, Gary, & Saunders, 2008).
Financials
This section covers the breakeven analysis, sales forecast, and expense forecast.
Break-even Analysis
This will help KSOM to determine the total amount of monthly or annual sales needed to finance the operating costs of the business. KSOM S.J intends to keep operating costs at a low of $24,000 (at $9000 for Kiosk leases and $15000 for product costs). Unit prices will range from $2-$12 depending on the type of product.
KSOM will equate Fixed Costs and Variable sales to costs to attain the variable breakeven point (Abell, 2009). The analysis of the cost per package, cost per unit and their selling prices reveals that profit per unit of total products would be $755 and profit per package would be $515
Sales forecast and expense forecast
KSOM S.J will use sales forecast and expense forecast to control operation and advertising costs. Product will be divided into two categories: those sold per unit and those products sold per package. This will allow the sales team to calculate the level of profit from each product category. A 5 % increase is market share and a 2 % decrease in marketing expenses should be realized in every quarter.
References
Abell, S. (2009). Defining the Business: The Starting Point of Strategic Planning. Singapore: McGraw Hill.
Armstrong. M. (2006). A handbook of Human Resource Management Practice (10th
edition) Kogan Page, London,
Kotler, P., & Keller, K. (2009). A Framework for Marketing Management (4th Ed.).
Pearson Prentice Hall
Kotler, P., Gary, W. & Saunders, J. (2008). Marketing defined: Principles of marketing. London: Routledge.
