You are on page 1of 5

Strategy 5.

2 Marketing Strategy
Jean's Tofu Delight will introduce its products at 20% off the wholesale price during the first month to promote supermarkets and stores to buy the product. In addition, Jean's Tofu Delight will co-sponsor local athletic charitable events for older women to raise the visibility of the brand name. Jean's Tofu Delight will use in-store samples booths to promote the product.

5.3 Sales Strategy


The sales strategy is to build customer loyalty in the new markets. Jean's Tofu Delight will increase its sales force to focus on the new markets. Jean's Tofu Delight will hire three new sales associates to serve these new markets.

Strategy and Implementation Summary


The Farmers Group strategy is to profitably and efficiently utilize present and future agricultural technology in the production of vegetables. The company, by acquiring an existing profitable vegetable farm with all the necessary custom-innovated equipment, will gain a significant industry advantage. Additional application and utilization of horticultural technology in the production of strawberries will allow double utilization of the climate controled portion of the overhead. Farmers Group hopes to consolidate considerable goodwill already created by exercising the option of not adding another high-production facility to the present supplydemand scenario. The company's goals in the first year are to:

Prepare the future site. Relocate and expand Green Acres vegetable system and get it operational. Integrate greens culture into the system. Have the composting system in full production by early spring of the second year.

The company's long-term plan is to phase out whichever products are least lucrative and replace them with products that are practical and cost efficient.

5.1 Competitive Edge


Farmers Group's main competitive advantages are:

Efficient production utilizing greenhouses. Reduced overhead by fully realizing crop output potential and economies of scale through joint costs.

Knowledge due to research since 1988.

5.2 Marketing Strategy


Farmers Group will initially market and supply its products to target customers. The company is further exploring marketing opportunities on the Internet. To this extent, the company would like to set up a website to market its products. The company will utilize aggressive advertising strategies to further market its products. These strategies include the promotion of products through the sponsoring of spots on cooking shows and exhibitions, and also engaging prominent chefs to help promote this fledgling industry.

5.2.1 Pricing Strategy


The company sets its pricing based on market rates as far as vegetable products are concerned. Farmers Group's pricing for strawberries will exceed the average market price for the following reasons:

Taste sampling at outlets will be encouraged. Unparalleled flavor superiority will addict greens tasters. Promotion of pesticide-free, fumigant-free cultural techniques of soil, environment, ozone, and health-friendly production techniques.

5.3 Sales Strategy


At Farmers Group, the sales process is primarily the same for vegetables as it is for composting products, in that both products will be mainly sold through wholesale marketing. As in the past, live shipments will be delivered by contract carriers in special oxygenated tanks carrying 8,000 vegetables or more, and will be continued as demanded. Farmers Group's bagged manure products will be delivered and unloaded in sizable wholesale quantities by the pallet. Smaller, more local orders will significantly increase the overall sales when the 300-450 live vegetables carrying tank system is put into service late in 2000 or early in 2001. The company's average sales cycle from first contact to closing of the sale is approximately 3 to 12 days for vegetable products. Farmers Group plans to shorten this cycle. Furthermore, the company estimates that from first contact to sale conclusion, the cycle for fresh strawberries will run 3 days or less. Composted products sale cycle should run from 3 to 12 days. Direct sales contacts of vegetable markets by delivery personnel, as well as cold calling by telephone of potential market outlets, will also be employed.

5.2 Marketing Strategy

The marketing strategy will be based on generating awareness and visibility of Botanical Bounty and their ability to produce the highest percentages of botanicals. The strategy will rely on several different forms of communication. The main form is participation in the numerous trade shows for the industry. The trade shows are where everyone from the industry gathers to meet and transact business. t is a wonderful place to network as well as learn about new developments in the industry. The second form of communication will be the use of advertisements. The main venues for advertisements will be industry trade magazines. The trade magazines are a well read source of information that buyers and sellers refer to for many different transactions.

5.3 Sales Strategy


Botanical Bounty's sales strategy efforts will focus on identifying qualified leads and turning them into paying customers. The main sales effort that Botanical Bounty will undertake is the reinforcement of the fact that Botanical Bounty's plants have the industry's highest percentage of botanicals. This will be quite appealing to the buyers as this is exactly what they want, more botanicals per plant. In addition to selling the buyers on Botanical Bounty's competitive edge of potent plants, there will be an emphasis on Botanical Bounty's ability to perform on long-term contracts. Botanical Bounty recognizes that the transactions should not be thought of as individual sales, but as long-term relationships. This is a reasonable assumption based on the fact that the customers are in the business of utilizing botanicals, that they will continually have the need for the botanicals, and that it is far less expensive to establish a relationship with one vendor than to continually have to find new vendors that can meet their needs.

5.3.1 Sales Forecast


The sales forecast indicates that growth will be slow but steady. Growth will be slow because of the time and effort needed to develop the customers. Production is not the slowing element as Botanical Bounty has been in production for a couple of years. Granted they were not producing at the same level, or for that matter with the same goal of business efficiency, but nonetheless they will be able to reasonably raise production to meet the sales needs. During the wet months of the year, the forecast reflects a tapering of sales as production will fall during these months. There will however be some sales and production which will be moved inside to the greenhouses. There are a few risks that could have a negative impact on sales. The first is weather. Plants are dependant on the weather. A poor growing season will have a serious effect on production. This risk is spread amongst all of the producers of the specific region meaning the weather risk is imposed on everyone, generally not a specific farmer. Another risk that could effect sales is some sort of pest that could unexpectedly negatively effect the crops. By planting multiple botanicals and choosing them based on their heartiness relative to the growing climate, Botanical Bounty is able to minimize these risks as much as possible
will market and supply its products to the selected outlets

The secret to Peets success is a broad customer demographic, from 16 to 70 years of age, middle to upper middle class. They have a special appeal to mostly liberal-minded customers including babyboomers because of their Berkeley (slightly) radical-chic image, the specialty coffee-house customer we all know and love. While the 1960s ethos is long gone, Peets has maintained a unique San Francisco individualist identity and has mastered the art of staying in touch with their core customers and building new ones through integrated marketing communications. Peets uses a multi-channel and multi-media marketing plan with expert and consistent branding and tone in the following eMarketing media and sales channels: Website, blogsite, Twitter, Facebook, YouTube, email marketing, pay-per-click advertising, banner advertising, in-store kiosks (utilizing co-promotions in grocery locations such as Bristol Farms in Southern California), foodservice, hospitality, corporate, and private label. Peets blog, for example, is consistent in branding and tone with all of their other eMarketing and integrated marketing communications and has useful and familiar hyperlinks to multiple pages on their website. It is chatty, fun, full of colorful photos and has created an attitude of community that Peetniks can relate to. The spirit of cool community continues to attract new customers and brings existing customers back to them with their hip, warm and personal style. Not bad for a NASDAQ public corporation. Peets Coffee grossed $250 million in 2008; with 7% revenue growth in the first quarter of 2009. Its easy to see why so many other businesses in food and beverage marketing try to emulate Peets Coffee & Teas coffee marketing at its finest.

look to create a consistent product that offer the same level of value no matter which venue you purchase from. They can automate much of the coffee process and knock out a cost efficient product that delivers fat profits on every sale. But could they be doing more? I was walking through the city the other day when I saw a great pre-work sales technique. A small coffee shop near Southern Cross station have a girl propped out the front with a tray of coffee ready to go for only $2 each. The strategy offers a discount cup of java to compensate for a slightly cold product, but hits the convenience market head on. Those making their way to work find it all too easy not only to satisfy it as a need, but to acknowledge the need itself as they hurry past. Josh Strawczynski's Opinion I'm sure the bigger players like Coffee HQ could increase their value offer and make more sales if they followed this strategy. Parliament station is a prime example, Coffee HQ have a barrister set up to one side of the escalator catching anyone with enough time to dilly dally, but this could be so much more if they were prepared. Sam Berringer's Opinion I also think Coffee HQ could sell more Red Bull by doing a similar thing, in the afternoon people are more likely to drink a cool Bull. The convenience marketing is booming and offering

consumers a faster solution to their need is the way of the future. This is exemplified in the USA Starbucks have started making drive through coffee shops and claim there is even further they could go!

You might also like