Marketing Essays – Food Product Marketing

Food Product Selling

Merchandise Plan for Low-fat Chocolate Bar

The market where we will be aiming our low-fat cocoa saloon merchandise will be the confectionery retail sector. Over the last two decennaries, this sector has enjoyed an unprecedented degree of growing. The primary ground for this is that there have been major progresss in confectionery nutrient merchandise development and an increased figure of houses come ining the market. As a consequence, the assortment of confectionery nutrient available to the mundane consumer is rather merely reeling. The effect of this has been a decrease in monetary values since the market can be described as about absolutely competitory.

Furthermore, the intense competition that exists within the confectionery nutrient sector has meant that it has become progressively hard for each single house to get a dominating per centum of the market portion. It has reduced each house & A ; rsquo ; s leaning to do supranormal net incomes. The confectionery nutrient sector is besides characterised by intense selling runs and advertisement. For each house to do an feeling on the market, they must explicate and use a merchandise mix that is accurately geared towards their intended niche market. At this point, it is deserving adverting that most of their advertizements are aimed at kids and immature grownups.

We have chosen to present our merchandise within the health-eating niche subdivision of the market. The ground for this is because we feel that this market is barely as saturated and pullulating with competition as the mainstream confectionery nutrient sector. Our merchandise will besides match with the current consumer clime where there have been calls for the demand of healthy feeding, particularly among kids. Various medical establishments and research workers have presented grounds that fleshiness, diabetes and other wellness jobs are on the rise. Hence there is an pressing demand for consumers to take more healthy feeding options.

The low-fat cocoa saloon which we will present will be targeted at kids, immature grownups and their parents. However, it must be said that the mark market is vastly wide because of the healthy nature of the merchandise. The merchandise will be ideal for school lunchboxes and can besides be eaten at place as a bite. The healthy low-fat cocoa saloon will be available through a assortment of supermarket ironss and retail mercantile establishments.

Furthermore, cocoa as a merchandise is an highly popular confectionery point particularly amongst kids and adult females of all ages. The fact that there is non any important presence of a low-fat cocoa saloon trade name makes our merchandise really marketable and appealing so. Without a uncertainty, the commercial chance for the merchandise looks really optimistic.

We have undertaken questionnaire-based primary research in order to show the huge chance that exists within our chosen niche market. The inquiries we posed to our respondents were specifically designed to uncover the widespread entreaty of our intended merchandise and to guarantee that we meet the precise demands and outlooks of the possible consumer. This kind of market research and cleavage is necessary if our merchandise is to win. The consequences we obtained from our primary research have been analyzed and decisions have been drawn from this.

Market Overview

The proviso of supplies of nutrient to consumers, sufficient to represent the nucleus of a proper and balanced diet, is a cosmopolitan aim to which most authoritiess, including the UK authorities, support1. The authorities is progressively seeking to step in in the processed nutrient sector of the confectionery nutrient industry because of several diet-related wellness issues that have been highlighted over the old ages. This is in crisp contrast to decennaries ago when the authorities largely concerned itself with the agricultural sector of the industry.

It can be said that one ground for the authorities & A ; rsquo ; s behaviour towards the nutrient industry lies in the comparative construction of elements within the confectionery chain2. Domestic agribusiness, nutrient processing and nutrient distribution make up 7.5 % of UK GDP3. These sectors about accounted for equal per centums of this figure. As at 1977, the figure of houses in the nutrient and drink industry was estimated at over 500. During that same period, the average 5-firm concentration ratios over 60 confectionery merchandise markets exceeded 70 % 4.

As mentioned earlier, the confectionery industry is a market that closely resembles a absolutely competitory market scenario. However, the large houses which exist within the market are able to hold a significant influence on monetary value and end product. This tends to propose that there is the possible for monopsonistic influences to be within the confectionery market. Examples of the most influential houses within the industry include Cadbury, Nestle and Kellogg & A ; rsquo ; s. These houses have the ability to undersell monetary values in order to restrict the entry of new houses.

However, there is a broad market & A ; lsquo ; nothingness & A ; rsquo ; within the healthy-eating subdivision of the industry. As a consequence, we feel that we can bring forth significant market demand and do maximal net incomes for our intended low-fat cocoa merchandise.

Justification for Product Selection and Market Segmentation

It is a fact that the industry has an huge entreaty in general and there has been a consumer demand & A ; lsquo ; roar & A ; rsquo ; within the last two decennaries. We besides understand that the present socio-economic clime has meant the confectionery market is in demand of more health-oriented merchandises. These are the primary grounds why we have chosen to aim this market. With these facts, determining purchaser behavior within the market is non a foregone decision.

It is non ever easy to build a standard theoretical account for consumer purchaser behavior. Whilst the inputs and end products of doing a determination can be readily identified, and to an extent measured, the intangible component which concerns purchaser behavior and pick determiners is frequently more elusive5. At best, it can be defined as a signifier of & A ; lsquo ; black box & A ; rsquo ; 6. This is why we have engaged in a comprehensive questionnaire-based market research exercising in order to get more information about the market and to section it consequently.

Our cardinal client group consists largely of kids of school-going age, their parents and immature grownups, particularly adult females aged 22 to 46. We have targeted this niche group because we believe they presently make up the cardinal client group for regular cocoa bars. We will besides be able to pull in an even wider subdivision of the population because of the healthy nature of the merchandise.

We recognise that there are marketing variables that need to be considered in order to work the chance within the market. Product, monetary value, topographic point, publicity, people, procedure and physical grounds ( known as 7Ps ) 7 and client service have all been considered in our merchandise planning exercising. The external stimulation which can be illustrated utilizing PEST analysis consist of political, economical, societal and proficient factors8. We have obtained an in-depth apprehension of these external stimulations and therefore will be able to bask a competitory advantage within the market.

Evidence and Consequences Obtained

As mentioned, the primary research chosen for this merchandise is questionnaire-based. We believe that we can accurately develop a theoretical account of consumer purchaser behaviour through this method of research. We interviewed a sum of 200 respondents. This sample size was estimated to be sufficient in order to pull up a comprehensive analysis of the market. The construction of the questionnaire employed can be seen in appendix 1.

Out of the 200 respondents, 130 were female and 70 were male. The prevailing age group of the sample size was between 13 and 22 old ages of age. Furthermore, 85 % of the respondents were pupils, 10 % were in the skilled manual employment sector and the staying 5 % were in the unskilled manual sector.

Seventy per cent of the respondents said that they consumed cocoa every two to three yearss. 25 % of the respondents indicated that they consumed cocoa one time a hebdomad and 5 % said they consumed cocoa on a monthly footing.

Furthermore, over 85 % of the sample size said that they consumed cocoa on the spell or when they were outside the place in general. Fifteen per cent of the respondents besides indicated that they put cocoa in their kids & A ; rsquo ; s tiffin boxes. One of the most important findings we obtained was that the bulk of the interviewees ( 95 % ) indicated that they would purchase a low-fat cocoa which tasted precisely like the conventional type of cocoa.

Over 60 % of the respondents believed that the monetary value for low-fat merchandises will be relatively higher than other merchandises in their niche market. Besides, crucially, over 98 % of respondents said that they thought many kids were being exposed to unhealthy merchandises and nutrient ads and, as such, they deserved healthier options. Respondent were besides asked: On a graduated table of 1 to 5 make how make you see organic and healthy merchandises selling on the market in the close hereafter? 1 being really good and 5 being really hapless. Ten per cent scaled at 2, 30 % scaled at 3 and the bulk of the respondents ( 70 % ) scaled at 4.

We besides presented the cardinal client group with six possible names for a low-fat cocoa saloon from which they could choose one as their favorite name. The merchandise names were: Enjoy, Imagine, Krish, Midnight, Angelic and Hybrid. The consequences obtained were as follows: 20 % selected Angelic, 30 % selected Enjoy, 10 % chose Imagine, 20 % opted for Midnight and another 20 % chose Hybrid.

Analysis and Contemplation

The consumer behavior which we will presume our cardinal client group will hold is the 1 propounded by major theoretical accounts, which include those of Engel, Blackwell, Nicosia and Kollat. These theoretical accounts & A ; lsquo ; picture the consumer progressing along a problem-solving and decision-making sequence & A ; hellip ; & A ; rsquo ; . Harmonizing to these theories, the result is determined by the purchaser & A ; rsquo ; s rational map every bit good as their natural processing of information8a.

As mentioned earlier, there are external stimulations which have the possible to impact the sale and selling of the low-fat cocoa saloon. Cultural influences within the UK and other states where the merchandise will be marketed will play a major function. For illustration, this low-fat cocoa saloon merchandise will be given to sell more during certain internationally-recognised vacation periods but besides have to be marketed otherwise depending on the civilization of the state the merchandise is being sold in9. This is because some states tend to observe the same vacations in different ways and on different day of the months. The consequences obtained from our primary research will besides help us in explicating the right cultural scheme for marketing the merchandise both at place and abroad.

We have been able to set up the socio-economic factors that could impact our merchandise from our primary research. In other words, we have established who is most likely to purchase the low-fat cocoa saloon. This is an indispensable measure in the market cleavage exercising. Such client analysis aims to bespeak the common features within client groups, which can so be used to regulate the passage of effectual communicating schemes. We have established that a big per centum of our mark niche market will dwell of young persons aged between 13 and 22 old ages of age, the bulk of whom will be pupils and of the female gender. Having said this, we believe that the niche market for this merchandise will spread out even further over clip, one time the trade name has been established.

The alterations in income within this niche market do non be given to be in the higher income brackets and does non be given to fluctuate excessively much over clip. Hence, this needs to be considered when pricing the merchandise. Constantly the income of persons within this group stays on a par with inflationary force per unit areas on confectionery merchandises.

Technological progresss in the fabrication of these kinds of confectionery merchandises will intend that we are likely to bask big economic systems of graduated table. In general, we feel that maintaining up with technological progresss within the industry will non turn out to be a major challenge as the confectionery industry is non needfully technological intensifier. With the right investing determinations, the technological factors impacting this section can be catered for.

The political and societal clime that is presently prevailing within the UK is one of healthy feeding and exposing childs to less fast food10. The Government is presently looking to present a measure that will see an terminal to fast nutrient advertisement during kids & A ; rsquo ; s telecasting hours. They are besides looking to restrict debris nutrient advertisement online, in magazines and on hoardings. Since our merchandise is a nutritionary and healthy option, there is a opportunity such political factors as these will non impact the merchandise negatively. In this instance, we could besides bask some competitory and economic advantages over our rivals as a consequence of the wider range of advertisement avenues available to us. The just trade facet is besides a major political issue that must be considered.

The major advantage to be enjoyed within this sector stems chiefly from the fact that the current political and cultural clime is one that would ease overall entreaty for the merchandise. Furthermore, most members of the public enjoy devouring & A ; lsquo ; eat on the spell & A ; rsquo ; merchandises, as 85 % of our sampled respondents would attest to.

One major failing of the confectionery industry is the fact that the market can go concentrated really rapidly. It is one where there are really few barriers to entry. This means that there could be & amp ; lsquo ; inordinate & A ; rsquo ; competition which will in bend have effects on market portion and net incomes. There is besides the possibility that some people might happen it hard to alter their perceptual experience of cocoa as a merchandise, from one being non so healthy to one that is good for them. This may hold the inclination to smother gross revenues to a certain grade, but one time trade name image has been to the full established, the job should non be as marked.

Decisions and Recommendations

In decision, this low-fat cocoa saloon will hold an chance to obtain a significant per centum of the confectionery industry market because of the merchandise & A ; rsquo ; s broad entreaty and the current attending on healthy feeding. The market research and cleavage that has been carried out seems to propose the same. Our chosen cardinal client group was representative of the niche market that the merchandise will aim. Once the merchandise mix can be catered for, along with all external stimulations, there is no ground why the merchandise can non set up itself within the market. Therefore, it must be said that chances for set uping a popular trade name name and doing maximal net incomes is rather good.

One cardinal recommendation that needs to be considered stems from the fact that other consumer behavioral theoretical accounts such as those propounded by Shama and Narayana tend to back that consumers do non prosecute in problem-solving behavior when it comes to buying products11. If this is the instance in world, so more consumers will non experience the demand or desire to exchange from conventional cocoa to a low-fat 1. In order to work out this job, aside from advertisement, an extended public consciousness run may be required in order to show to the public why the merchandise should be patronised. There is no uncertainty that farther market research will be necessary in order to turn to this issue to the full.

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