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MARKETING TERM PROJECT
I. SITUATIONAL ANALYSIS
A. Executive Summary and Organization Mission:
Our mission is to provide a newly formulated product named “Neobest anti-
allergic baby food for babies with allergic intestines/stomachs”. The
mission of o our organization will be aligned with the mutual goals of the
organization so that the product “Neobest anti-allergic baby food for babies
with allergic intestines/stomachs” will resolve the allergic problems
which the infants and babies face from their childhood and/or birth, after being
tested positive to milk/dairy/wheat/soya-protein products. The targeted niche
market will be the global customers having children with the allergic
problems related and associated with milk/dairy/wheat/soya-protein
products. The newly developed product will cater to the baby food industry,
and will be lucrative for venture capitalists to invest in this newly developed
idea. This is because this product will be priced moderately so that the averagely
earning customers can afford to buy this product. The target will be to achieve a
larger market share by obtaining higher sales percentages in comparison with
the sales percentages of other baby food products like Neocate (which is
extremely high priced at $45.00 to $155.00) (Meyer & Allergy, 2016). Neocate
has already been recognized as the best anti- allergic product found in the United
Kingdom and in the United States of America because of the ingredients
of the baby food product (Meyer & Allergy, 2016).
B. Environmental Scanning
1. Social/Cultural Trends :
The global consumers of the baby food industry are more inclined
towards the ingredients of the baby food products as well as
towards the standardization of the ingredients of the baby food
products. For example, the global consumers of the United States
of America have faith on the FDA (Food & Drug
Administration) or USFDA (United States Food & Drug
Administration) more than any other organizations of food and
drug standardization (Tifft & Nicholson, 2016).
The global consumers of the baby food industry look for food
safety standards in the sense that any contamination with baby
food is an extremely serious issue. This is because the immunity
levels of the newborn children, or children between 1 month to12
months, is extremely low. Therefore, any contamination in baby
food can affect or harm the newborn children, or children between
1 month to12 months, in an extremely harmful manner. Therefore,
the global consumers want to get the best quality baby food
products so that they can be able to give their children the best
baby food products which are available in the global markets
(Meyer & Allergy, 2016).
The global consumers of the baby food industry ensure that they
read the reviews of the customers who have used any particular
brand of baby food products. This is the trend of the baby food
industry as well as for most of the adult food industry products.
This is because the global consumers do not want to take a chance
or a risk with their health or with the health and hygiene of their
children by trying out new brands of food products without getting
a fair idea about the outcomes or results of the new brands of food
products (Meyer & Allergy, 2016).
2. Political/Legal : According to the USDA requirements, organic products
must be directed by a USDA National Organic Program-approved
guaranteeing specialist, adhering to all USDA natural controls. Moreover,
according to the USDA requirements, organic products must be delivered
utilizing permitted substances. Besides, according to the USDA
requirements, organic products must be delivered without prohibited
strategies like sewage sludge, genetic engineering, and so on
(Lewandrowski, 2016).
3. Technology : Technology used in preparing baby food products is growing
gradually in the long run. The global engineers are constantly on the move
to prepare healthier and tastier food for newborn babies and for infants.
This is because the newborn babies and the infants will not like to eat food
which is not tasty or the same food again and again. It will become
extremely monotonous for them as it would become for the adults.
However, the safety of the preparation of the baby food products is
something which must be focused on. The main focus which is generally
kept by the engineers while making technological equipment for preparing
safe and high quality baby products, is cleanliness of the technological
equipment. The maintenance of hygiene is implemented by the use of
purifiers for purifying and checking the quality of the different types of
baby food products. Moreover, there are digitalized and computerized
setups wherein the baby food producers and manufacturers can get to
know about the percentage of fats, proteins, carbohydrates, impurities
present in the prepared baby food products (Petrarca et al. 2016).
4. US Economic Situation : The GDP of the United States of America, as of
2015, was $17.914 trillion (Shaefer et al. 2016). The GDP per capita of the
United States of America, as of 2015, was $51486 (Shaefer et al. 2016).
The unemployment rate of the United States of America, as of 2015, is 5%
(Shaefer et al. 2016).
5. Natural Environment : The preparation of baby food products requires the
scientific researchers to choose the purest form of raw materials and
process the raw materials carefully after purifying the raw materials in
order to prepare the final product. There is widespread global warming,
subtle and sudden weather changes, etc. which might drastically affect the
health conditions of the infants and newborn children in the upcoming
years in the future. Moreover, there are pesticides as well as fertilizers
used to grow fruits, vegetables and flowers quickly and in hybrid qualities
and hybrid sizes. Extracts from these fruits, vegetables and flowers can
harm the babies and infants if the baby food products are prepared from
these extracts. The babies and infants can also develop different kinds of
allergies towards certain fruits, vegetables, flowers, smell, or even
milk/soya-milk.
C. Sales Trends: Sales of organic baby food products in the United States of
America was about $22.5 billion in the year of 2015 (“Global Infant Formula
Market: Growing Demand for Organic Baby Food & Increasing E-commerce
Sales Key Trends”, 2016). There are online purchases of organic baby food
products as well as physical purchases of baby food products by the global
consumers. However, the online purchases of organic baby food products has
been on the rise in the past few years in America as well as in the other countries
of the global world (“Global Infant Formula Market: Growing Demand for
Organic Baby Food & Increasing E-commerce Sales Key Trends”, 2016).
D. Market Share: The percentage of baby food dollar sales in the United States of
America is $1,529.77 million (Facts, 2016). The percentage of baby food unit
sales in the United States of America is 1,199.52 million units (Facts, 2016). The
market share of organic weaning food in the United States of America is 21%
(Facts, 2016). The retail sales of organic baby food in the United States of
America is $553.9 million (Facts, 2016). The retail sales of organic milk formula
in the United States of America is $92.1 million (Facts, 2016).
E. Market Opportunity Analysis: It is evident from the recent sales trends and
market trends that the sales percentages of the baby food products in on the rise.
This is because of the aspect that there have been recent cases of babies and
infants acquiring allergic tendencies towards milk and dairy products. There have
also been reports of cases where babies and infants have developed excessive
developments of allergy like cow-milk protein allergy, soya-protein allergy, and
so on. “Neobest anti-allergic baby food for babies with allergic
intestines/stomachs” will be targeted towards developing immunity among the
babies and infants developing any kind of allergy towards milk, cow-milk, protein
diet, soya-proteins, etc. For this purpose, “Neobest anti-allergic baby food for
babies with allergic intestines/stomachs” will conduct tests on the babies and
infants (who use “Neobest anti-allergic baby food for babies with allergic
intestines/stomachs” for the first time). There will be tests conducted on the
babies and infants (who use “Neobest anti-allergic baby food for babies with
allergic intestines/stomachs” for the first time) like “Reducing substances” test,
“Toxic substances” test, etc. The tests will be conducted after the babies and
infants have consumed “Neobest anti-allergic baby food for babies with allergic
intestines/stomachs” for about a week after being diagnosed with allergy towards
milk, cow-milk, protein diet, soya-proteins, etc.
II. Marketing Objectives: The marketing objectives for launching the “Neobest anti-
allergic baby food for babies with allergic intestines/stomachs” will be as follows:
To provide the global consumers the opportunity to buy a substitute product to the
premium baby food products (like Neocate) with an affordable price.
To provide a substitute baby food product to milk for the babies and infants of the
global world having allergy towards the consumption of milk/dairy/wheat/soya-
protein products.
To achieve a market share of about 4% to 5% in the upcoming five to six years of
operations and running of the newly developed product.
III. Marketing Strategy
a. Target Market:
● Children age 0-5 years
● Married men and women with children
● Upper and lower middle-income levels
● Healthcare institutions and healthcare franchisees
● NGOs and non-profit organizations
The healthcare institutions and healthcare franchisees will be where the “Neobest
anti-allergic baby food for babies with allergic intestines/stomachs” will
be supplied in large quantities so that the healthcare organizations can be
prepared to provide the global consumers with the newly developed “Neobest anti-
allergic baby food for babies with allergic intestines/stomachs” for
providing the babies and infants with similar levels of proteins and nutrients as
is provided by the consumption of milk products. “Neobest anti-allergic baby
food for babies with allergic intestines/stomachs” will be provided to NGOs and
non-profit organizations so that the newly developed product can
reach out to the underprivileged sections of the American societies
and the underprivileged societies of the other countries of the global world.
b. Analysis of Buyer Behavior:
Types of consumer buying decisions – There are impulse purchases which are
evident in the baby food products industry (Elg & Hultman, 2016). This is
because many consumers try new products when every other existing product
fails to nourish their children totally. There are also routine purchases which the
global consumers actualize in order to ensure that they keep stock and substitutes
of baby food products for their children so that the children do not starve in times
of hunger (Elg & Hultman, 2016). There are also global consumers who possess
characteristic traits of limited decision making and/or extensive decision making
in the baby food products industry (Elg & Hultman, 2016).
Cultural influences – There are cultural influences like having heavy meals by the
American citizens is considered mostly by the American citizens to be healthy
and nourishing, rather than taking light meals at regular intervals. Therefore, most
of the American citizens buy baby food products in bulk and in large quantities
for safety, security and health reasons.
Social influences – There are social influences like clichéd and stereotyped
mindsets about a particular brand name. There are American citizens who would
not want to try out new brands because of a particular family traditions of being
loyal to on particular brand name. There are also influences like counterculture
and subculture influences which influence the buying behavior of the global
customers in America. The American consumers are mostly impulsive buyers and
easily get influenced from advertisements and television commercials.
Life-style analysis – The life-style analysis of the American citizens can be
fathomed from the fact that there are different countercultures and subcultures
which influence the decision-making process of the American citizens. This is
because the food products which the people belonging to a particular subculture,
will want to buy will mostly be different from the choices of the people belonging
to another subculture. The same logic and rationale apply for different
countercultures.
IV. The 4 Ps
a. Product
● Description: Powdered milk substitute in the form of proteins, carbohydrates,
amino acids, essential vitamins, necessary fats, DHA combined together with a
flavor of ice-cream sandwich. The ingredients would be Rice Starch (25%), Fruit
extracts (10%), Refined Olive oil (2%), Powdered Chicken Supplements for
babies and infants (5%), Docosahexaenoic acid or DHA (3%), Protein
supplements for babies and infants (10%), Diet sugar (5%), Creatine (5%), Iron
(5%), Calcium (5%), Vitamin D (5%), Zinc (5%), Iodine (5%), Magnesium
Phosphate (5%) and Ice-cream sandwich flavor (5%).
● Packaging: Air-tight, Food-Grade and recyclable plastic container with
measurements of 1.5 lbs and 2.5 lbs of “Neobest anti-allergic baby food for babies
with allergic intestines/stomachs”.
● Classification: Specialty product. The global consumers of “Neobest anti-allergic
baby food for babies with allergic intestines/stomachs” would be desperate to buy
and feed this newly developed product because they would want to heal the
allergies (cow-milk protein/soya-protein allergy, etc.) within their children.
● Brand name: Neobest ™
● Warranty: Implied
● Positioning: “Neobest anti-allergic baby food for babies with allergic
intestines/stomachs” will be positioned as a natural substitute (with no milk
solids) to milk products for newborn babies and infants.
● Unique benefits: “Neobest anti-allergic baby food for babies with allergic
intestines/stomachs” offers newborn babies and infants with guaranteed relief
from allergies (cow-milk protein/soya-protein allergy, etc.) with zero side effects.
b. Price
The method of pricing will be based on focusing in increasing the sales
percentages through the enhancement of the distribution channels.
Moreover, the pricing will be aligned with the mutual goals, the mission and the
vision of Neobest ™ so that a 4% to 5% of the target market share can be
achieved in the near future.
c. Place (Channel of Distribution)
● Direct distribution – For NGOs and non-profit organizations, there would be the
method of direct distribution adopted.
● Indirect distribution – For health care institutions and healthcare franchisees, there
would be the method of indirect distribution applied because intermediaries are
important to promote and market newly developed baby food products.
d. Promotion/IMC
● Newspapers, Magazines, Social Networking websites.
● Television advertisements, wireless media advertisements.
● Focus on low and moderate price of the new product in comparison with premium
products like Neocate – There will be press conferences organized and media
attention entertained for the purpose of globalizing and publicly promoting the
distinctive features of the new product.
e. Response of the Target Market
The sales percentages of the new product and the target market share, will be
measured for understanding the response of the target market.
V. Competitive and Industrial Analysis
a. Direct Competition:
Neocate is the direct competitor of the new product. Neocate is an already
established brand in the target markets of the baby food industry. Neocate has
been proven to possess an immaculate formula and is considered to be one of the
best formulas ever developed for children possessing allergies (cow-milk
protein/soya-protein allergy, etc.). However, the price of the Neocate products is
extremely high priced and basically caters to premium customers. This
disadvantage of Neocate will be exploited by the newly developed product’s
product differentiation and pricing strategies (Meyer & Allergy, 2016).
b. Indirect Competition:
Gerber Products Company is an indirect competitor of the newly developed
product. Gerber baby foods and Gerber purees are products of Gerber
Products Company which consist of ingredients like fruit flavors of bananas,
applesauce, prunes, pears, peaches, etc. Also, vegetables like sweet potatoes,
peas, green beans and carrots, are ingredients in the Gerber baby foods and
Gerber purees. Gerber, being a subsidiary of the Nestle is a close
competitor of the newly developed product (Schlegelmilch, 2016).
This is because Nestle also manufactures and prepares baby food
products and protein supplements for babies and infants.
References
Elg, U., & Hultman, J. (2016). CSR: retailer activities vs consumer buying
decisions. International Journal of Retail & Distribution Management, 44(6), 640-657.
Facts, U. (2016). Topic: Baby Food Market. www.statista.com. Retrieved 29 November 2016,
from https://www.statista.com/topics/1218/baby-food-market/
Global Infant Formula Market: Growing Demand for Organic Baby Food & Increasing E-
commerce Sales Key Trends. (2016). Parent Herald. Retrieved 29 November 2016, from
http://www.parentherald.com/articles/63286/20160824/global-infant-formula-market-
growing-demand-for-organic-baby-food-increasing-e-commerce-sales-key-trends.htm
Lewandrowski, J. (2016). Climate Change and Agriculture: How is USDA Helping Agriculture
Respond.
Meyer, R., & Allergy, F. (2016). Neocate LCP-The No. 1 Amino Acid-Based Formula in the
UK. NETWORK, 6.
Petrarca, M. H., Fernandes, J. O., Godoy, H. T., & Cunha, S. C. (2016). Multiclass pesticide
analysis in fruit-based baby food: A comparative study of sample preparation techniques
previous to gas chromatography–mass spectrometry. Food Chemistry.
Schlegelmilch, B. B. (2016). The Future of Global Marketing Strategy. In Global Marketing
Strategy (pp. 221-249). Springer International Publishing.
Shaefer, H. L., Wu, P., & Edin, K. (2016). Can Poverty In America Be Compared to Conditions
in the World’s Poorest Countries?
Tifft, D., & Nicholson, J. (2016). The Process of Local Commercial Food Production.
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