Running Head: Naturally Good Products Marketing Plan

Student Date

2.0 2.1

Situation Analysis Market Summary

2.1.0 Ansoff Analysis 2.1.1 Analysis Review 2.1.2 Demographics Data 2.2 2.3 2.4 2.5 2.6 SWOT Analysis Competition Product Service Key to Success Critical Issues

3.0 Marketing Strategy 3.1 Mission 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Markets 3.5 Positioning 3.6 Strategies 3.7 Marketing Mix 3.8 Marketing Research 4.0 Controls 4.1 Implementation 4.2 Marketing Organization

4.3 Contingency Planning References

Product or Service Idea: Packaged Organic healthy products made from fruits and vegetables in New Zealand. Grain cereals, Vegetarian foods such as beans, breakfast foods oats, raisins, trail mixes, and sauces. Including meats made of soybeans and natural flavorings and vegetables such as beef, chicken, and sausage. Is your product or service offered by: no____an existing company? yes___a new company imagined for the assignment?

Explanation: New Zealand is known for its natural beauty and untouched farmland. Ideal place to produce organic foods. Naturally Good Products is a new entrant to capitalize on the high number of New Zealanders who prefer organic foods. Who do you think is the target audience? People interested in eating organic foods, dieters, health conscious individuals. According to BioFamers of Australia six persons of every ten in Australia buy organic products (Organic Expo.com, 2010). Are similar or competitive products or services available? List or briefly describe a similar product or service: Yes. Other competitors in the Marketplace include OBE Beef, Australias Own, and Clean Food Organic (Organic Expo, 2010). How will your product or service differ from competitors? What is your distinctive competitive advantage? NGP foods are made with a patented preservative process that none of the competition has access to use. 2.0 Situation Analysis Naturally Good Products is already a leader in the natural food products market in New Zealand's North Island due to the quality and effectiveness of its products. Which are manufactured in a way which is respectful of nature and better for the consumer, using the best ingredients. Some of these products include hot and cold cereals, vegetarian breads, meats, and vegetables. They want to expand their market share to include all of New Zealand, to go from their current share of 10% to 15% in the next five years, and expand to Australia. The way they should do this is by expanding and increasing their advertising, to raise awareness of their products, opening up new markets and increasing their visibility.

2.1 Market Analysis 2.1.0 Ansoff Matrix Analysis. By analyzing Naturally Good Products with the Ansoff Matrix , the company's product and market expansion can be charted. The Ansoff Matrix looks at the risk and reward from potential expansion by comparing current and future markets and products and services (Teo Education, 2011).

Existing Products & Services New Markets Market Development *Increase Revenue *Increase Visibility Existing Markets Market Penetration *Steady Growth *Solid Customer Base *Room for Expansion

New Products & Services Diversification *Products appeal to wide range of consumers *Increases profit margin Product Development *Could limit growth

2.1.1

Analysis Conclusions:

Naturally Good Products should concentrate their efforts on developing and implementing new advertising strategies to facilitate their expansion. 2.1.2 Demographic Data:

Naturally Good Products makes and markets products which are perceived to only be attractive to a certain demographic, but this is an erroneous supposition. Evidence for diversification

among other target groups include: Over two-thirds (69 percent) of Australia adult consumers buy organic products at least occasionally. Furthermore, about 28 percent of organic consumers (about 19 percent of adults) are weekly organic users. (The Hartman Group, 2008). The Natural Marketing Institute (NMI) reveals that consumers are increasingly incorporating organic into their lifestyles. Total household penetration across six product categories is up from 57% in 2006 to 59% in 2007. Numbers of core users of natural products has gone up from 16% in 2006 to 18% in 2007 (Lipson, 2008).

2.2 SWOT Analysis. Through breaking down Naturally Good Products into these four essential elements, it is possible to gain more insight into the strength and stability of the company, as well as its potential for expansion, by contrasting the strengths and opportunities with the weaknesses and threats. a. Strengths. i. Naturally Good Products has obviously shown that its products have an audience. To have captured 10% of New Zealand's market share in these kinds of products is significant. This means that the products have value and have garnered customer loyalty, which should be capitalized on. The company's products are appealing and obviously are high-quality. Their superior chef inspired taste, along with a patented preservation process and manufacturing methods are part of the NGP competitive advantage. Products, using all-natural and often locally-grown ingredients, appeal to the rising trend toward de-construction of society and emphasis on the environment.

ii.

b. Weaknesses. i. The companys manufacturing methods, which are also part of their strengths, could potentially limit expansion. The type of labor and craftsmanship necessary to produce these products is not cheap. Expanding manufacturing capabilities would need to bear in mind labor laws and taxation, as well as not compromising the company's commitment to natural methods. Small batches mean limited manufacturing capabilities. Manpower and ingredient cost could be significant upon expansion. Capital would be needed to be diverted

ii.

from other areas to cover new facilities, hiring and training new personnel, and any taxes, permits, etc. Labor costs would rise, which could necessitate a rise in costs. c. Opportunities. i. Cottage industries/handmade products are extremely popular, as discussed above, and the popularity of such items is only increasing. NGP's already-loyal customer base could be useful in galvanizing marketing in other parts of New Zealand and Australia. Australia and New Zealand have free trade agreements which allow products that are sold in one country to be freely sold in the other, without import taxes or tariffs.

ii.

d. Threats. i. Action Plan: Increase customer base by additional advertising via alternative methods, to keep costs down. Explore options in streamlining manufacturing process, to potentially bring labor/manufacturing costs down, or at least not to allow them to increase significantly with increased output. Investigate methods of bringing ingredient/materials costs down, such as by agreements with growers' co-ops, local farms, hydroponics, etc. Investigate incidences of copycat/pirated "natural" products in the region. Get quotes from transportation companies regarding shipment pricing.

2.3 Competition

In order to capitalize on the market for organic products it is very important for NGP to remain one of the few companies that produce their products with little production equipment. In fact the advantage that NGP has over other companies is that its products are very labor- and qualityintensive. Requiring local chefs to prepare a unique recipe unused by any other producer. NGP has a patented recipe much that is used in all of its foods. It allows the foods to be prepared

without preservatives yet have a fresh natural taste. This process is sought after by others in the industry, however NGP recently won its on patent that sets it apart from the competition.

By expanding their customer base into the rest of New Zealand and Australia, NGP faces increases in prices due to transportation, storage, and advertising. This could result in a higher price point, putting the company at a disadvantage to any similar companies who are more locally-based or larger, meaning their product prices are similar or even less. Copycat/Pirated products made with inferior ingredients for less could pose a genuine threat. Piracy of brand names, labeling/packaging, etc. has risen sharply in recent years, especially in the Southern Hemisphere, where China and Korea have flooded the market with lower priced versions of organic goods. 2.4 Product/Service 2.4.1 Existing Markets and Existing Products and Services combine to produce Market Penetration. Currently, Naturally Good Products has a 10% market share of their niche, which means that of every 5,000 people in New Zealand's South Island who chooses a natural product like what NGP offers, 500 choose NGP. Market penetration is good, and bodes well for future expansion. Management is doing well to plan for future expansions. 2.4.2 Existing Markets and New Products and Services combine to produce Product Development. If the current customer base enjoys NGP products now, they are highly likely to want an even larger selection of products. But is it wise to expand the product line now, when expansion of the customer base is what the company wants to do? At this time, expanding product offerings would be counter-productive to the goals set by management, by diverting time, energy and funding which would be better spent elsewhere, at least for the present. 2.4.3 New Markets and Existing Products and Services combine to become Market Development. Since NGP has a satisfied customer base, expanding that base by way of increased advertising/marketing would further develop the market for their products, generating more revenue and helping further expansion. This is a recommended course of action. 2.4.4. Existing Markets and New Products & Services combine to produce Diversification. This is entirely possible given the wide appeal of Naturally Good Products. Their customer base is currently relatively confined, but with increased marketing and advertising they can raise awareness of their product in new markets, so their market share would increase through diversification.

2.5 Key to Success Primary reasons given for buying organic products: *To avoid products that rely on pesticides or other chemicals *To avoid products that rely on antibiotics or growth hormones *For nutritional needs *To support the environment *To avoid genetically modified products *Health reasons other than allergies *They taste better *To support sustainable agriculture. (The Hartman Group, 2006). 2.6 Critical Success Factors Over half of Australians regularly buy organic produce and/or products, and state that they will continue to buy these products in increasing number as they become available (Eckersley, 2010). In order for NGP to be successful they must penetrate a larger measure of that 50%, at least 10% or more within the first three years or risk competitors making significant strides to developing a lower priced alternative. These more affordable products may draw customers away from the NGP premium price structure. 3.0 Marketing Strategy 3.1 Mission At NGP the mission is to Produce naturally healthy products in every available market to aid in leading the industry in building a healthier world. 3.2 Marketing Objectives Develop new marketing niches based on gaining a larger market share percentage in the general population. This will be accomplished by conducting surveys within communities at the most popular grocer retailers. The incentive will be to have a sweepstakes offering a grand prize of various gift certificates in denominations $100-$500 in free shopping at our stores. For each survey a potential customer will receive a free organic food item that has to

be redeemed at one of the NGP stores.

Offering the NGP Quick and Easy Recipes on the website for download. Partnering with local health clinics to promote seasonal health screenings such as back to school. Supporting schools by providing healthy alternatives for lunch programs. 3.3 Financial Objectives The financial goals are to raise profits by 10% each year over the next three years. In this way the goal of reaching over 50% of the market can be achieved. The hope is to have at least one of every two people using one or more of the NGP products to improve their diet. This will be accomplished by aggressively pursuing the following target markets. 3.4 Target Markets Some of the target markets would include K-12 Schools. The need for better nutrition among school age children and young adults is growing each year. The number of obese children in the Australia is growing at an alarming rate (Zanoli & Naspetti, 2011). Schools need healthier meal choices and NGP can help. Research studies will be collaborated with universities to gain data on how well the products aid in promoting healthier bodies. Measurements will be based around improving energy levels and metabolism, reducing cholesterol and incidents or symptoms that lead to diabetes and heart disease. Two of the highest causes of death in the Australia The students at the universities will be given alternative foods and then asked to volunteer for participation in research studies. This will allow medical and nutrition students to engage in research apprenticeships as well as provide further credibility to the NGP brand. Creating Competitive advantages over other organic suppliers. Another target market will be clinics and senior living complexes where there are many people on medications that require special diets lower in fat, salt, sugar, and cholesterol free. By partnering with these type of communities, providing reduced quality products that promote better health, NGP can impact the quality of life while gaining a new market niche. 3.5 Positioning

In order to position NGP as different from competitors it is important to stress the wellness aspect of the products. NGP will work with leaders in the field of science and nutrition to participate in research studies to show the difference our products make. With the research studies being done on our customers showing improved health verified by doctor reports. The competition has no proof that their products promote renewed health. However, NGP will have scientific studies done on volunteers over time for the various products showing the benefits of using them. This will position NGP as not just another organic food company, but a leader in the industry that has proven its effectiveness in providing healthier alternative organic products. 3.6 Strategies Market Research NGP will align with nutrition studies conducted at the University level to participate in research of the value of using our products. This will give credibility to using the product line. It will also allow Universities to back our product in advertising. The results of our reports can be shared through print media as well as television commercials and radio spots. The results can be published in a newsletter distributed at stores that carry the product line and the universities where the studies have taken place.

Marketing Budget Resource Team Senior Centers Schools, Universities Print Media TV Radio Every Quarter Weekly Ads Sundays Weekly Spots Sun-Thur $120,000 $ 25,000 $ 10,000 Duration 3 Months Costs $200,000

Sweepstakes Promo Product Development 3.7 Marketing Mix

6 months New Products yogurt milk

8,000

$100,000

Product - The first product will be a health drink much like yogurt. It will stimulate healthy digestion and reduce constipation. The drink will come in flavors that are preferred by children, young adults and senior adults. The product is Yogurt Milk which is lactose free, available in fat free and low fat varieties, and comes in cases. Price - The pricing of the product will be slightly higher than dairy milk, however a coupon discount will be offered on every second gallon or second case. Place - The product will be offered through school and university lunch programs. It will be sold in grocers and available to order in for selected senior living complexes that sign up for delivery services. Promotion - Promotion will be through University Nutrition Research Internship programs, School lunch programs, television commercials, radio spots, and Sweepstakes promotion. 4.0 Controls The marketing controls required for management to reach the optimal level of measurable success involves evaluation of the marketing plan. The process itself will guide management to manage marketing strategies within certain parameters as established by leadership and sponsors in the organization. Controls will evaluate the scope of the marketing plan and compare it to the corporate objectives of the company. In order to properly align goals with the marketing plan. Measurements will be placed such as surveys and interviews with each target market to gauge customer satisfaction with the products. Controls such budget of costs associated with the plan. Feedback from schools and senior centers will be reviewed in order to determine the effectiveness pf the marketing plan. New advertising avenues will be reviewed to assess if proper target market percentage has improved. Meeting with marketing and leadership to discuss all promotions will allow for any issues to be discussed and plans revised to be more effective. It will be important to identify the people that can assist with improving the plan and replace those that have been unsuccessful. Develop progress reports and a timeline will aid in meeting projections. Marketing forecasts reporting is required to evaluate efforts and consider additional plans to expand strategies into new territories such as health food stores and grocery chains.

4.1 Implementation

Implementation will be conducted over the next 18 months using a Gantt chart to schedule each marketing component as shown in Figure 1 referring to plan, schedule, costs and implementation dates. 4.2 Marketing Organization Marketing organization consists of a cohesive set of resources that coordinate and hold accountable the other components in order to reach the desired result. Oftentimes marketing is handled much like a mix bag of tricks. Each one performed to see what type of reaction or measure of success is attainable. However for a marketing plan to be successful there are five critical components necessary in marketing organization. Alignment within the planning cycle is important. During this phase all stakeholders must speak the same language and be on board with marketing strategies set (See, 2006). Each level of management must be aligned with a stakeholder to communicate and facilitate the progress and execution each phase. Champion each phase must also have a sponsor or person who has the ability to get things done.

Who is at an executive level and has influence within the organization to get resources and buy in from stakeholders. Visibility is getting the numbers to match the projections accurately. This will allow participants to see whether or not projections and actuals mesh (See, 2006). If the target market is not buying the product at the rate projected, it is time to rethink strategy or complete some metrics to find out what is happening and how to fix it. Learn and Grow the culture of the organizations should not be one that blames failures or mistakes on the other guy. It is ok to make mistakes, the problem is that they not be repeated. That something is learned or achieved through the process and adjustments made. You need to have a culture where failures are not viewed as such as long as everyone makes a valiant, intelligent effort, says Mike Eichorst, VP of Marketing at Chase (See, 2006). 4.3 Contingency Planning If projections are accurate for the market to increase within the next six months, production will be ramped up after the first progress reports show growth. The increase in production is planned for the fall back to school season and if the projections fall short, the sweepstakes can then spark interest to replace any loss in sales. If projections are inaccurate for the market to increase during the back to school season or throughout the entire campaign, the entire marketing plan will be revisited by senior management to determine how to proceed. After the first six months, forecasts, sales, and reporting will be reviewed to determine any necessary adjustments. If one of the target markets remains unresponsive, that team will be expected to determine how best to proceed based on information obtained in the field. The plan is to execute in a phased approach over the next 18 months. With a detailed assessment of goals and objectives every six months.

References Eckersley, N. (2010). Organics everyday choice Australians. Retrieved November 3, 2011 from http://sydney.organicexpo.com.au/buzz/organics-everyday-choice-australians Hartman Group (2006). Organic 2006: Consumer attitudes & behavior, five years later & into the future. Hartman Group. (2008). The Many Faces of Organic 2008, Summer 2008. Natural Marketing Institute (2008). Retrieved November 4, 2011 from http://www.nmisolutions.com/reports.html Lipson, E. (2008). Organic consumers share values not demographics. Retrieved November 3, 2011 http://newhope360.com/organic-consumers-share-values-not-demographics See, E. (2006). Reinventing the marketing organization: five critical components. Retrieved December 4, 2011 from http://chiefmarketer.com/disciplines/marketing_organization_01272006/ TEO Education. (2011). Ansoff matrix. Retrieved November 3, 2011 from http://www.teoeducation.com/teo/?p=2763 Zanoli, R. & Naspetti, S. (2011). Positioning organics which way forward. Retrieved November 19, 2011 from http://orgprints.org/7629/1/ZAnoli-Naspetti_Odense_06.pdf