Masters Of Business Administration

RUNNING HEAD: MARKETING PLAN 1

2018-2019

Module Title

Marketing plan of the Vegeto product

Module Code

BAM030

Module leader

Maged Ali

Student ID No.

180257137

MARKETING PLAN 2

Table of Contents

Executive summary ................................................................................................................................. 3

SWOT analysis ....................................................................................................................................... 4

Strengths ................................................................................................................................................. 4

Weakness ................................................................................................................................................ 5

Opportunity ............................................................................................................................................. 6

Threats .................................................................................................................................................... 6

Segmentation........................................................................................................................................... 7

Positioning strategy ................................................................................................................................. 8

Budget ..................................................................................................................................................... 9

Control and implementation planning................................................................................................... 10

Personal assessment of the plan ............................................................................................................ 10

Conclusion ............................................................................................................................................ 11

References ............................................................................................................................................. 12

MARKETING PLAN 3

Executive summary

In today’s world, the hospitality industry has continued to grow and more and more

inventions are made every single day. Some of the most established business has been from

the hospitality sector making it one of the very fast growing industries in the world. Rocky

company is an example of a hospitality industry company producing soft drinks. The

company was first established in 1993 to process and market soft drinks. Today, the

organization is the world's driving maker in the refreshment business, working internationally

in more than 53 nations with its head office situated in Atlanta, USA. This is a good example

of a company that has made it big according to the hospitality industry. Around the world,

there are a lot of competitions in every sector and for the purposes of marketing, one ought to

understand how to deal with the various competitors that are always there. This is a

consideration on my side as I strive to introduce a new product to the market targeting the

hospitality industry.

The paper gives an outline for my marketing plan for the Vegeto product. Vegeto is

an ice cream that has been made from vegetables. I have always had an interest in the

hospitality industry too and my main aim was to introduce a new product to the market. The

product by which I decided to launch was the vegeto product. There are various advantages

associated with the product and thus my main aim of introducing the product to the market.

The product contains honey and has very less sugar in it hence being a health beneficial

product. The product is preservative free and has no artificial colour. Based on my market

research the product will have a target market of people from all group of ages. The main

focus of the vegeto product is the teenagers who in their own way would like to try

something new, another target is the kids and senior citizens and especially the type of people

who would love to try something new. A bigger market would be the people who are health

conscious. I am sure the market will adopt the product very fast from the various advantages

MARKETING PLAN 4

in which the product has as outlined in my marketing plan and the main reason is the fact that

it will be able to bring a healthy dessert into the existing market. The paper would be able to

give various advantages and disadvantages of the particular product and making it clear on

the profits expected from the product.

SWOT analysis

The analysis of internal and external factors affecting the consumption patterns of

Vegeto is a fundamental strategy for both short and long term development of Rocky

Company. The formulation of SWOT analysis is founded on the grounds of competitive

nature of a variety of company within the USA which provides a similar variability of vegeto

product. This analysis should assist the company to identify the loopholes that are articulated

within the nature, place and marketing capability of the product. Secondly, the analysis

should also help the company determine the level of pragmatic activity which can only be

achieved by analyzing the pragmatic representation of activities of honey, fresh vegetables

and other ingredients which forms the basic raw materials of vegeto. In order to achieve the

SWOT analysis, Rocky Company will conduct an internal survey by engaging a diverse

program and relevant agencies. The internal survey can be a web-based strategy which will

seek to answer the questions of whether the purported product will quench the desire of

intended users. Secondly, the company should also seek to analyze the top priority issues that

require additional resources for extensive research.

Strengths

Strength relates to the advantages that are competent and resourceful. The

introduction of vegeto in the hospitality industry has confirmed myriad of benefits not only to

the company but also to the stakeholders of the company. Rock Company will leverage the

MARKETING PLAN 5

full benefits of the product because first, the company is located in a strategic position. The

strategic location of the company makes it easily accessible by customers, investors and also

by local communities who hail around the vicinity. The strategic location of the company

also means that the company will receive benefits of cheap rental Bills. The Company also

has got fascinating facilities which offer after refreshment services for its customers. The

competition of vegeto is not as high as of other products; the company will thus be in a

position to formulate her own market price based on the underlying factors of production and

economic growth of the country.

Vegeto product is cheap and unique. Survey has indicated that there is no other

company that offers a similar product yet. Since kids do not prefer eating fresh vegetables,

their demand for this product is increasing day by day, this concern has already enabled the

company to establish a strong customer base of its product. Vegeto comes with many

advantages; both to the producers and to the consumers. The producer is the company whose

accrued benefits from the product have already been mentioned above. However, consumers

are the end users who are being targeted by the company. This product targets all the age

groups especially the kids and the teenager whose population, according to research, has

dominated the aged. Vegeto is the only recommended product for the alleged group of people

because it contains honey and less sugar, it is preservative free with no artificial colour and it

is also created to bring a healthy dessert into the market.

Weakness

Weaknesses are the shortcoming, weak point and the limitation of, according to this

context, a new product (Rao, 2000). Vegeto is a new product and depending on some

uncertainty and circumstances, ground research may have not been done as to whether the

product will endow a long term or a short term effect into the hospitality industry. A lot of

MARKETING PLAN 6

funds will also be required for marketing, advertisement and distribution of the product into

various retail shops. Finance issues, inconsistent patterns of economic growth, insufficient

awareness and insufficient labour and capital intensive factors remains to be the major

shortcomings for the implementation of vegeto into the market. Such issues should be

addressed in the marketing planning strategy.

Opportunity

Vegeto is highly perishable and will require a lot of attention especially during the

transportation. In order to fill this gap, the Rocky company will apply pickup and delivery

services for individual customers, the company will put close attention to the supplying

segment. All the ingredients including vegetables must be ensured a safe and secure delivery

and in addition, health issues must also be put into consideration as that will guarantee quality

end product.

Threats

Some companies may also introduce vegeto into the market and thus competition is

likely to be stiff in the near future. Vegeto’s primary raw material is vegetables whose

production is usually seasonal and risky especially on the emergence of an epidemic or a

disaster such as a drought, storms and flood. Such a phenomenon can highly affect the

continuous supply of vegeto into the market. There are also chances of imposing health issues

to the end users on the circumstance that arises when the company is not able to observe

clean environs where the product is blended.

The major objective for introducing vegeto into the market is to surprise the

customers with the hard to find, unique and one of the most delicious ice cream in the market.

The company will use the consumption pattern of this product to determine if there will be a

MARKETING PLAN 7

change in the number of customers visiting the hotel at a particular point in time. Secondly

and the most fundamental objective for introducing vegeto into the market is because of its

health benefits. Beetroot is rich in calcium iron and potassium, carrots prevent heart disease

and it also helps in digestion, pumpkin is prevented the development of the metabolic

syndrome. If vegeto is successfully brought into the market, such health issues will ultimately

be solved.

Segmentation

The segmentation process is usually based on diverse factors which are sometimes

referred to as the external factors affecting the marketing demand of a product. Such factors

include the demographic and psychological characteristics of a consumer as well as the

available place and choice to select the product from. Vegeto consumers in the USA chose a

cluster sampling technique to determine the sample size. Majority of customers prefer good

looking vegetables, the colour of the product, size and shape. These are an important attribute

which must well be taken care of while inaugurating vegeto into the market as it affects the

first-hand consumer habit of whether or not to buy the product. The store location,

accessibility of the store and similar culminating factors can also determine the consumer

patterns for vegeto. In order to address this concern, the company has ensured a strategic

location of the shop where customer can access affordable services ranging from customer

care, pricing and before and after-sales services. The consumer will beyond any reasonable

doubt enjoy the benefits that have been put in place to defend consumer accessibility of the

product. Segmenting vegeto will consider three fundamental cluster analyses. These segments

include a section of consumers whose concerns revolves around product establishment while

purchasing the product, secondly, a section of consumers whose concerns are health issues

MARKETING PLAN 8

arising from the utilization of the product and lastly, the third segment which seeks to address

convenience and ease to access the product anytime and anywhere.

Positioning strategy

According to the international dairy food association, there is a total of approximately

6 billion people consumers into the market (Rollins, 2005). This market can be divided into

segments so that each segment will be supplied with different types of ice cream. The first

segment will be supplied with super premium ice cream. This type of vegetal has very low

overrun and very high-fat content. It is considered the most quality vegeto because the

manufacturers use the best quality ingredients. The second segment will be supplied with

premium ice creams which are made with quality ingredients and are rich in relatively higher

fat content. Another segment will be availed with regular ice cream which requires the

federal ice cream standard. The economy ice cream which will be issued to the last segment

will meet the government standards and generally sells at a very lover price than regular ice

cream.

While considering the concept of positioning and branding in marketing, the company

will seek to address the best strategic plans that will be used to take home vegeto into the

market. The additional brand that will be used for this product is the differentiation strategy.

The company will position vegeto as a healthy alternative of vegetable products since it

contains organic product manufactured from healthiest and organic ingredients. The product

will aim at health-conscious consumers who are ready and willing to incur the expenses of

acquiring the premiums for quality and healthy organic products. This positioning will create

an environment for itself in a more competitive market.

MARKETING PLAN 9

Budget

Budgeting strategy for the implementation of vegeto into the market will require basic

but fundamental mechanisms which will be subjected to rigorous assessment before being put

in action. An ice cream stand will cost between $2,500 and $12,000 in commencement fund.

A truck of ice cream will slightly cost less than that. Motor start-up and brick will cost at

least $40,000 to rent a store place depending on the location. The type of equipment will

depend on the type of shop. A smaller shop will mean less cost to be incurred for purchasing

equipment. The dependency of budget allocation depend on many factors; the building,

access to fundamental human and natural resources, transport network, government

involvement and many more. Convenient accessibility of these factors will result in a lower

cost of product and thus a convenient budget allocation for the implementation of the

product. Other parameters which will also be factored in include the cost of business permits,

supply equipment, supply cost and the cost of available raw materials. Longtime budgeting

allocation will be considered on the ground of natural factors affecting the patterns of

production. For example, some ingredients such as pumpkins and some vegetables are

sensitive to climatic changes; such ingredients may not be available during some seasons.

Alternative ingredients must, therefore, be identified in order to contain such possibilities.

Implementing vegeto into the market will be a subject of the following budget allocation.

Cost per 3 gallon tube of ice cream - $35

Size of scoop - 5 ounces

One scoop - $ 0.53

Miscellaneous - $ 0.81

The price per scoop will therefore range between $ 2.5 and $ 3.5.

MARKETING PLAN 10

Control and implementation planning

The rocky company plans the production of vegeto on 10 – month rolling basis. This

implementation plan captures the process of operational planning and sales. The demand plan

for this product varies predominantly due to climatic habits and seasonal changes. The

management of the company will prepare the line of production during the peak season by

taking an account of various capacity and product cost. During the early stages of developing

vegeto, it was difficult to come up with the implementation plan because the company was

not in a position to establish, generate and facilitate stock-out. With this regard, the company

will efficiently reformulate strategic plans to equate the supply and demand of the product

and also to make sure they would avoid stock-out in implementing new products. New

formalities will also be taken into account to optimise the utilization of production facilities.

Personal assessment of the plan

The planning process to introduce vegeto into the market is proactive, subjective, and

objective and aims at addressing both long term and short term concerns of customers on the

grounds of quality of similar products in the industry. My opinion is that vegeto is unique and

natural product, its price will be emphasised by competitive pricing. The market demand for

vegeto will definitely thrive since, according to research, there are not producers of a similar

product in the country. Developing a marketing plan for vegeto will incorporate a strategy

which will address the assess pricing and the cost of ice cream, equipment and supplies

throughout the United States. There are three main expenses that will be incurred during the

process of marketing; warranties, repair services and availability of the product in the market.

There should be consistency in the supply of products throughout the season of production.

MARKETING PLAN 11

Conclusion

Vegeto product will endow myriad benefits to the government of the United States

her surrounding community. The implementation plan to introduce such product into the

hospitality industry is a huge move to steer the development for innovating new and quality

food products. While this acts as an example, other companies should also embrace the same

move and come up with other products which will address both human and environmental

concerns. Vegeto will bring more benefits ranging from health benefits to economic benefits.

Consumers will beyond any reasonable doubt, enjoy the benefits that have been put in place

to defend consumer accessibility of the product.

MARKETING PLAN 12

References

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Farms to Consumers. DIANE Publishing.

Dimitri, C., & Oberholtzer, L. (2009). Marketing U. S. Organic Foods: Recent Trends from

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Rao, K. R. (2000). Export Marketing of Marine Products. Discovery Publishing House.

MARKETING PLAN 13

Rollins College. Center for Practical Politics. (2005). The ABC of Industrial Park

Development.

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Issues and Cases. Andover: Cengage Learning EMEA.

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Kanishka Publishers.

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