Marketing Plan Presentation

Amanda Burns, Shari Doe, Chantelle Hitt

Gerber Products Company

Situation AnalysisWhere are we now?

Historical Background

Nature of firm

Sales / profit history

Current marketing strategy/objectives

Nature of firm 1927 – Founded in Fremont, Michigan by Daniel Frank Gerber

1928 – Developed five products

Beef vegetable soup

Strained peas

Prunes

Carrots

Spinach

Six months later Gerber went nationwide, which was the first

nationally advertised baby food in grocery stores.

1939 - Cereal was added

1990 - Gerber graduates were added

2007 - Nestle acquired Gerber which improved the baby food industry by having the world’s leading experts in childhood nutrition working together.

2011, Gerber Good Start formula was introduced which was the first formula to meet FDA criteria for qualified health claim.

Sales/Profit History 2014 Sales: $1.26 billion

1955 $ Millions

% Change from 1954 Rank Previous

Rank

Revenues 78.9 N.A. 348 N.A.

Profits 3.5 N.A. 332 N.A.

1994 $ Millions % Change from 1993 Rank Previous Rank

Revenues 1,269.5 0.1 307 297

Profits 42.5 -66.7 254 113

Total Sales Overall in the U.S.

Baby food sales were up 3% in 2013 with sales of $1529.77 million.

Current Marketing Strategy/ Objectives Direct Marketing

Emails

Mailings from existing database

Mass Marketing

Television and newspaper ads

Coupons and free samples

Emotion-Based Marketing

Colors to convey calming and

purity

Pictures of mothers with babies

Traditional Marketing

Reasons why our product is

better

Consumer Analysis

Who are they?

Segments?

How Many?

Who are they?

Target Market:

Parents with multiple jobs

Grandparents

Daycare/Childcare centers

Healthcare Providers

Single Parent

Travelers

Segments? How many? Demographic

Age, Gender, Stage in family life cycle

85% of the purchasers of baby items are women, who want affordable and easy to carry items while traveling.

Product is geared toward infants and younger children

Psychographic Lifestyle

Personal activities

Travel

People are constantly on the go and have busy lifestyles.

Competitive Analysis

What market opportunities exist?

What/who is the competition?

SWOT Analysis

What market opportunities exist?

Travel packs are currently not offered.

Offer convenience with disposable items: bottles, formula,

and Go Baby all-in-one packs.

Baby products equal $12 billion in annual sales.

54% of Americans who purchase baby products want

continuous customer flow.

In 2013, $621.4 billion was spent on traveling by domestic

and international travelers.

78 percent of all travelers are for leisure.

U.S. alone had 1.6 billion leisure trips in 2013.

This graph shows the potential growth all over world.

What/who is the competition?Biggest Competitors are Travel and Baby Product Suppliers

Baby Products: Johnson & Johnson

Beach Nut Nutrition Company

H.J. Heinz

Travel Products: Johnson & Johnson

Babies Travel Lite

Nestle SA is #1 for both Prepared Baby Food and All Infant Nutrition

What/who is the competition?

What/who is the competition?

Gerber holds the #1 sales for baby food, even though there was a 4.2%decrease between 2010 and 2013.

SWOT Analysis

Strengths• Variety of Products• High Market Share• Top Manufacture of Baby

Food

Weaknesses• Only make cloth diapers• Not as strong in the baby

products as other manufactures

Opportunities• New Market• Many People Travel• Increasing number of

working women

Threats• Low Cost Competitors• Baby Product Manufactures:

P&G, Kimberly-Clark, and Johnson & Johnson

SWOT Analysis

Marketing ObjectivesWhere do we want to go?

Sales Objectives

Current Level

Next 5 years

Current Level

Next 5 years

Current Level

Test in regional markets, and establish a 3% foothold in U.S. markets.

Increase on-the-go travel packs sales by 10% in the U.S. within the first year.

Decrease or remove potential customers resistance to buying our products, leading to a 25% increase in overall sales in 6 months or less.

Sell 2 million units in domestic markets by the end of the 1st year.

Increase revenue in infant supplies market category by 15% by the third quarter of the next fiscal year.

Largest segment of on-the-go products

Exceed 5% growth quarterly

Long term view is to meet or prevent competition, remain the leader

World-wide distribution by the end of 5 years

Increase sales by 50% throughout the U.S.

Next 5 Years

Profit Objective

Maximize profit on total output rather than one single item.

Achieve profit within first year

Reach 10% profit in 3 years

Increase profit by 20% in 5 years

Possible level of achievement

Consumer Objectives

How will we serve our target customers?

Positioning; What do we want customers to think about us?

How will we serve our target customers?

Products for different ages

A tiered product line that addresses the needs of varying age groups.

Making Go-Baby products available where and when our customers need them the most – when they’re on the go.

Provide safe and affordable products

Satisfy customers – Give them the best products and deliver experience by meeting or exceeding expectations

Fit with our customer’s lifestyles, and offer a convenient product with an equally convenient price.

Improve customer experience through innovation and new products

Positioning; what do we want customers to think about us? We are loyal to our customers.

View us as knowledgeable experts on baby products and what products fit into every mothers needs.

Our business cares about its customers, and we deliver quality.

Realistic expectations are met and delivered to every customer.

Always have our customer’s best interest at hand.

StrategyHow can we get there?

Product Strategy

What do we offer?

What should we offer?

What do we offer?

Products for babies, toddlers, and young children.

Baby care, wellness, and life insurance products.

Breast feeding products: accessories, bottles and nipples, and massaging manual breast pumps

Bath time and skin care products

Health care products: such as vitamin drops and instant powder mix.

Pacifiers and soothers

Feeding products, such as cups, forks and spoons, dishes, and bowls; and baby foods, including cereals and juices.

What should we offer?

Travel Packs

Combine products into smaller versions.

Convenience for families to grab one package with the items needed versus many separate items.

Gerber will also be introducing disposable diapers and wipes. We currently sell cloth diapers.

We should we offer? Our Go Baby line will include convenient

travel packs, each consisting of products that correspond with the general needs. 2-Disposable diapers, one 10 pack of wipes,

3oz tube of diaper cream

2-6oz ready made formula, 1- 8 oz. plastic bottle

1 8oz bottle of juice, 1-12oz dried fruit snack pack

1 12 oz. bag of snack crackers, 1-8oz juice box

Pricing Strategy

Pricing Objectives

Profit Oriented

Status Quo Oriented

Non-price Competitio

n

Meeting Competitio

n

Growth in Market Share

Sales Oriented

Dollar Unit Sales

Growth

Maximize Profits

Target Return

Current pricing strategy

Justification

Current pricing strategy

Value-based pricing

Competition

Fixed and variable costs

Company objectives

Proposed positioning

Target groups

willingness to pay

Convenience Price

Current pricing strategy

Pricing objectives Maximize long-run profit

Maximize short-run profit

Increase sales volume

Company growth

Maintain price leadership

Desensitize customers to price

Discourage new entrants into the industry

Match competitors prices

Obtain or maintain the loyalty and enthusiasm of distributors and other sales personnel

Enhance the image of the firm

Encourage the exit of marginal firms from the industry

Justification

Pricing should always take into account many factors, and reflect supply and demand. If the product is priced too high or too low, it could mean a loss in sales for our company

Value-based Pricing

Consider the competition and customer when pricing. Value based pricing is the strategy chosen, because people will pay for the product out of convenience. Creating special packages for travel use, it will cost more in packaging rather then selling one product by itself.

Distribution Strategy

What channel(s)

Physical distribution facilities

Location

Other characteristics

What channel(s)

We are going to use a multiple distribution channel strategy.

This will include: Wholesalers

Retailers

Consumers

Internet

E-Commerce Websites

Physical distribution facilities

We need to make sure our product is sold in:

Convenience stores

Drug stores

Grocery stores

Big Box stores

Specialty Stores (Babies R Us)

Location

Airports

Train stations

Rest Stops

Hotel Shops

Gas Stations

Bus Stations

Hospitals

Store

Other characteristics

We are using a distribution channel with two intermediary. We sell and deliver larger quantities of our Go-Baby products directly to the wholesaler who then breaks up and sells to the retailer who sells to the consumer.

Producer wholesaler Retailer Consume

r

Promotional Strategy

Personal selling

Advertising

Sales Promotion

Main message

$ spent / media / theme

Personal Selling

Sponsor events where our target audience is.

Offer free seminars to expectant mothers

Advertising

Baby Magazines

Doctor’s Offices

Specialty Stores Inexpensive advertising - we can get

our product out to as many people as possible.

To create awareness of baby care products that are convenient and affordable.

Television

Sales Promotion End-Cap

We want our product to be at the end of the aisle.

This will promote a quick sale/impulse buy. It is also convenient for the shopper to grab the travel pack.

Eye level on other shelves

Contact customers Mail

Email

Social Media

This is a great way to show importance of customer satisfaction, but also leaving the door open for promotional opportunities.

Distribute free product samples

Coupons and rebates

Main Message

Gerber’s Go Baby products are safe, simple, superior products for your baby. Go Baby recognizes the importance of perfection when it comes to your

baby; we have you covered.

We will work to grow and capitalize on this product line and focus on healthy and affordable options of products and continue to create and maintain loyal

and happy customers!

$ spent / media / theme

Our theme will include products that are in current trends and meet customer needs. These will go through products using materials that are economically friendly and appealing to customers. We want to use the theme of calm, delicate, pure colors with pictures of mothers and infants.

Media

Television – This is the most expensive based on rating points, but will reach the most customers. Repetition is very important, and rewards can be great.

Radio – No visuals, so harder to sell this product.

Direct Mail – This will reach many current customers on the company’s data base, but not as effective. Cost is low.

Financial Strategy

Projections

Ramifications if not implemented

Financial Projections

Short-Term Forecast

• Period of 6 month

• Net income=25% increase

Medium-Term

Forecast• 1 year

ahead• Sell 2

Million Units

Long-Term Forecast

• 2 years and up

• Net Income= $6.4 billion+

Projections

Items are already being manufactured, so it will only take a new package to combine a smaller version of the items.

It is important to incorporate the following strategies:

Cost Leadership

Budgeting

Setting Milestones

Quality Control

Advertising/Marketing Costs

Ramifications if not implemented?

If a financial strategy is not implemented there can be many problems:

Cash flow shortage

Too much product because it isn’t selling

Higher risk than what was anticipated

Debt becomes higher than equity

Gerber Products - THE END

Resourceshttp://www.ehow.com/list_6549042_business-finance-strategies.html

http://www.learnmarketing.net/Place.htm

https://www.gerber.com/home

http://www.economist.com/news/business-books-quarterly/21569368-staying-top

https://www.udemy.com/blog/business-strategy-examples/

http://smallbusiness.chron.com/financial-strategies-business-plan-5107.html

http://en.wikipedia.org/wiki/Market_segmentation

https://www.gerber.com/our-story/our-history-and-heritage