Marketing Plan: K-Stores Limited
The marketing plan relates to K-Store Limited which deals with the production and marketing of convenience food products. A situational analysis is illustrated by illustrating the firm’s goals and objectives. These include financial and non-financial objectives. These objectives are formulated by considering their measurability and the estimated time frame. The SWOT analysis depicts the firm’s strengths, weaknesses, opportunities and weaknesses. The benefits that the firm will attain through a market research are identified and explained. The firm’s marketing strategy is outlined by considering its market segmentation and the marketing mix. Some of the strategies which have been considered in the marketing mix include pricing, distribution, product and promotion. Finally, a conclusion is made.
K-Store Limited is a private company that was established in 2003 in Oxford, UK. The firm deals with production and marketing of a variety of convenience food products such as fast foods, milk products, fresh soft drinks, candies, rice, and wheat crispies. Since its inception, the firm has managed to develop and sustain a significant market share.
The food industry has witnessed a shift with the market becoming more competitive. This arises from the new business establishment within the industry presenting a challenge to firms within the industry such as K-Store Limited. In addition, small and medium enterprises (SMEs) in UK are facing intense competition from large firms such as ASDA and Waitrose (Confectionary, 2010, para. 1-3).To survive within the industry K-Store Limited management team has realized the importance of developing competitive advantage. As a result, the firm will be able to attain a high efficiency in marketing its products which are increasingly appealing to the consumers.
To attain efficiency in its marketing process, the firm will conduct a market research. The following are the benefits that the firm will attain from the market research.
- Enhances the firm’s insight on consumer purchasing behavior. This will improve the effectiveness and efficiency with which the firm produces its products to meet market demand.
- Enables the firm’s management team to attain efficiency in identifying the market trend such as changes in technological, economic, political and social-cultural environments,
- The firm is able to identify the competitors’ activities. As a result, the firm can strategize on how to compete with the competitors.
-The firm has a substantial financial capital
which enhances its investment capability.
-High efficiency in conducting product
-Brand recognition. The firm’s products are widely recognized within the local market.
-Competitive pricing due to low economies of scale.
-High probability of attaining a large market share through product line extension.
– High probability of the increase in sales volume through incorporation of online selling.
-Increase in competition.
-Increase in the number of substitute products.
-Changes in consumer purchasing pattern.
Goals and objectives
- K-Store Limited intends to attain a market share of 30% within its domestic market in the next year through effective and efficient marketing of its products.
- To increase the firm’s annual profit with a margin of 25% within six months. The increment in the firm’s profitability is expected to continue.
- To ensure that production and marketing of the products are conducted socially responsibly.
- To improve the quality of the products culminating in increased customers satisfaction. This will be attained through continuous product innovation.
In marketing its products, the firm has targeted individual customers as the major consumers. Morton (2008, para. 1) defines market segmentation as a specific group of customers that the marketer intends to reach. In its marketing process, a number of demographic and behavioral variables will be used. According to Tutor2U (2010, para. 1), demographic segmentation enables a firm to attain a high efficiency in marketing consumer products. The demographic variables considered include age and income.
On the other hand, behavioral segmentation will be conducted by considering the benefit sought by the consumer in their purchasing pattern. For instance, the consumers have become health conscious over the past few years in their consumption pattern,
In order to attain efficiency in its marketing process, the firm’s management team has formulated a comprehensive marketing strategy. The strategy has incorporated the marketing mix.
The firm will incorporate the concept of product line extension to ensure that it appeals to a wide range of customers. Product line extension will also enable the firm to deal with competition (The 100 Times, 2010, para. 3). The firm’s management team will ensure that its products are healthy for consumption of individuals in different age groups. This is contributing towards the firm meeting the health-conscious nature of the consumers.
Findings of a consumer market research revealed that consumers are price sensitive. As a result, the firm has incorporated competitive pricing strategy. This is attained through incorporation of penetration pricing strategy which entails pricing its products at a relatively low price point compared to its competitors.
K-Store Limited has realized the importance of creating market awareness in its operation. Shimp (2008, p. 65) asserts that promotion plays increases market awareness. Continuous market awareness will be conducted through various mediums. Both traditional and emerging market communication tools will be used. Traditional methods will include use of radio, television, outdoor advertising and the print media. On the other hand, social networking tools such as Twitter, youtube, blogs and facebook will be also be integrated.
To ensure that its products are accessed within the entire market, the firm will establish other stores in different regions. In addition, the firm will also collaborate with major supermarkets located within UK. This will increase the efficiency with which the firm’s products are accessed within the market.
By implementing the various strategies formulated, the firm will attain efficiency in marketing its products. The ultimate effect is that the firm will attain its profit-maximizing objective.
Confectionery. 2010. Competition number one food industry concern. Web.
Morton, L.P. (2008). Criteria are necessary for a market segment: market segmentation definition. Strategicmarketsegmenation.com. Web.
The 100 Times. (2010).Marketing mix: price, place, promotion and product. Web.
Tutor2U. (2010). Market segmentation: demographic segmentation. Web.
Shimp, T. (2008). Advertising promotion and other aspects of integrated marketing communication. New York: Cengage Learning. Web.