Marketing Plan free essay sample

Our Product line will generally fall to Fruit Jams or Spread. b. Geographic area? Which areas? Passi City and nearby Municipalities like Calinog, Dumarao, Duenas, San Enrique. Since our product is not yet that famous, we will first target nearby towns and municipalities surrounding Passi City. c. Sales? Because our product is new to the market and we are still trying to market it, we are at least expecting 50 bottles a day which we will target sales of 1,500 Bottles per month. This is a rough estimate based on our assumptions and study. d. Industry? Our target industries are Food and Manufacturing Industry B. Business Competition 1. Who are our business competitors? Our main competitors are Branded Fruit Jams which they include Pineapple Jam. Yet their product is not that competitive among our target market. Examples are: SO PINEAPPLE FRUIT JAM FRUIT GARDER JAM TAJ AGRO PRODUCTS (Pineapple Jam) This Pineapple Jams are made by famous and huge companies which have already placed their product in the market competitively. Financial Objectives Sakae Sushi aims to achieve the profit of 30 million by 31 December, 2008. 1. 4Marketing Objectives We hope to build Sakae Sushi into a global brand, and so we have to be everywhere on the globe. † said by Douglas Foo, owner of Sakae Sushi, Singapores largest sushi chain.Analysis, the firms identifies and evaluates its most significant strengths, weaknesses, opportunities, and threats. To fulfill its mission, the organisation needs to capitalise on its key strengths, overcome or alleviate its major weaknesses, avoid significant threats, and take advantage of promising opportunities. (Etzel, Walker and Stanton, 2007) The SWOT analysis provides information that is help in matching the firm resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. (http://www. quickmba. com/strategy/swot/) 2. 1 Strengths A firm are its resources and capabilities that can be used as a basis for developing a Competitive advantage. Brand name A brand is a name and/or mark intended to identify the product of one seller or group of sellers and to differentiate the product from competing products. A brand name consists of words, letters, and/or numbers that can be vocalised. (Etzel, Walker, Stanton, 2007) Brand identification has certain advantages. It enables the seller to build a consumer following and identify a given level of quality with a product. It facilitates differentiating a product from competitors’. (Davis, 1985) Sakae sushi is a global brand. It has grown into a global chain of more than 50 outlets throughout Asia and beyond. The Sakae frog symbolises a brand that is far sighted and poised to grow by leaps and bounds. Its smile indicates a friendly company, welcoming all. Its Asian heritage is reflected through the lower body of the frog that is reminiscent of a Chinese gold ingot, and a bowl filled with rice. The frog’s head and belly also symbolises the number â€Å"8† that is an auspicious number. (http://www. apexpal. com/brands. html) Why Sakae Sushi choose the green colour? Green is the colour of nature, life, its the most restful colour. Green symbolizes self-respect and well being. Green is the colour of balance. It also means learning, growth and harmony. Green is favored by well balanced people. Green symbolizes the life force. It often symbolizes money. People should eat raw green foods for good health. (http://www. crystal-cure. com/green. html) 2. 1. 2 Quality Food and Services In particular, buyers are looking for consistencies of product or service quality so that end products are reliable. (David Jobber, 1998) At present, most of people want to eat health food, because it benefit for their health. Sakae Sushi use fresh food and its rice is enriched with vitamin E for added health benefit. So it will attract many customers. Sakae Sushi service is also special, it use computer system to take order, this can save time for customers and it also can improve efficiency. For the service convenience, each table is equipped with its own hot water tap so that people can have freshly steeped green tea any time they want. 2. 2 Weaknesses Weaknesses are attributes of the organisation that are harmful to the achievement of the objective. (http://www. bookrags. com/wiki/SWOT_analysis) 2. 2. 1 It does not advertise Advertising is one of todays hottest fields in marketing. Description or presentation of a product, idea, or organisation, in order to induce individuals to buy, support, or approve of it. (http://www. investorwords. com/129/advertising. html) Sakae Sushi does not place great emphasis on advertisements. Alternately, they are considered to be non-aggressive in their promotional companies. Obviously, compared to other sushi shops propaganda is not enough. The following qualities about the disadvantages of not advertising can be noted. One of them is that the customers can not receive the new messages immediately. The Sakae Sushi motives for purchasing the products will not be publicly understood. Second is about the pervasiveness. Advertising is pervasive medium that permits the seller to repeat a message many times. It also allows the buyer to receive and compare the messages of various competitors. (Kotler, 2000) 2. 2. 2 High operational costs A company’s cost take two forms, fixed and variable. Fixed cost is a company must pay bills each month for rent, heat, interest, salaries, and so on. (Kotler, 2000) Firstly, as Sakae Sushi offers its customer with fresh food, so if the food cannot sold today, it will cannot sold tomorrow, the cost of materials are too high. On the other hand, some food air transports from Japan or other areas, following the disadvantage is high freight commitment. The limitation to it pricing strategy and it could not attract all of it intended target customers. Secondly, the shops which located in shopping centre, these rentals cost rather more than many in the suburbs. Thirdly, high-quality food needs of the high-tech cooks, relative to the payment of their salaries more and more than the same industry. 2. 2. 3 Lack of diversified product Sakae Sushi has a diversified range of Japanese food. However, the income of the firm is still heavily dependent upon its share of the Japanese food market. This may leave it vulnerable if for any reason its market share erodes. 2. 3 Opportunities Opportunity is an area of need and interest in which there is a high probability that a company can profitably satisfy that need. (Kotler, Keller, 2006) 2. 3. 1 Expand the unexploited market Sakae Sushi has the opportunity to expand its global operations. New markets for Japanese cuisine such as North Korea and South Africa are beginning to emerge. Sakae also has the opportunity to expand the teenager market. Because its price is not very high, and it located in shopping centre. And teenagers are always like to try new things. So it will easy to access these customers. 2. 3. 2 Innovation An innovation is any good, service, or idea that is perceived by someone as new. ( Kotler, Keller, 2006) Over the years Sakae Sushi has exhibited the ability to innovate to distinguish them from their competition. It adopted a simple two-tier price structure for their sushi to provide customers with a hassle-free way of keeping track of their bills. It also use sushi rice enriched with Vitamin E instead of the usual vinegared rice. It also can innovative new product, such as a variety of desserts. This process of innovation can generates interest among customers to go there. 2. 4 Threats Any factor in the market, external to the marketing organisation, which has the potential to negatively impact demand for the marketers product or service. (http://www. answers. com/topic/environmental-threat) 2. 4. 1 Emergence of Substitute Product At present, many similar Japanese Restaurants have established in Singapore, and they set its price is very lower, and they promote their product use different ways. Such as when you consume $100, you can enjoy 40% discount, or buy two get one free. Customer always sensitive to the price, they will compare Sakae Sushi’s price with other restaurants, if these restaurants have similar product, but price is lower, then customer will shift to other restaurant. Consumer price sensitivity is a potential external threat to Sakae Sushi. 2. 4. 2 Market Entrant As Sakae Sushi in a highly competitive market, so it has lower barriers to entry. Many enterprisers who want to enter the sushi restaurant business can get a loan, lease a building and start serving the sushi without too much trouble. Such situation causes Sakae will face many competitors, these new firm entry the market will cause sushi’s price to decrease, and Sakae will not make high profit in the future. 3. 0Segmentation/Target market Target market is a group of customers (people or organisations) for whom a seller designs a particular marketing mix. (Etzel, Walker, Stanton, 2007) Sakae Sushi adopts mass-market strategy and product differentiation strategy. Mass-market refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. (http://www. netmba. com/marketing/market/segmentation/) Product differentiation, one firm distinguishes its product from competitive brands offered to the same aggregate market. (Etzel, Walker, Stanton, 2007) Sakae offers varied of Japanese food including sushi set, Udon, Soup and Sashimi. Although these would be the same with other Japanese restaurants, but it set conveyor belt, use colourful plate and offers fresh food. These can distinguish its product from competitors. 3. 1 Age group According to market intelligence, the catering industry manufacturers, the most common form of market segmentation is the demographic factors as the basis for other factors. In demographic variables, used age was the most common application. Sakae Sushi’s target market would be range to 15-64 years old. According to the population statistics Singapore, the sex ration of the aged 15-64 years is males 1,000 per females 979. So the males are 1,326,340 and the females are 1,318,060. So Sakae will be targetting both male and female with a total population of 2,664,400. (http://www. singstat. gov. sg/stats/keyind. html) 4. 0 Marketing Mix Marketing mix is the combination of a product, where and when it is distributed, how it is promoted, and its price. Together, these four components of strategy must satisfy the needs of the target market(s) and, at the same time, achieve the organisation’s marketing objectives. (Etzel, Walker, Stanton, 2007) 4. 1 Product A product is a set of tangible and intangible attributes, which may include packaging, color, price, quality, and brand, plus the seller’s services and reputation. (Etzel, Walker, Stanton, 2007) 4. 1. 1 The product life cycle A product life cycle consists of the aggregate demand over an extended period of time for all brands comprising a generic product category. (Etzel, Walker, Stanton, 2007) Maturity: during the first part of the maturity stage, sales continue to increase, but at a decreasing rate. When sales level off, profits of both producers and middle men decline. (Etzel, Walker, Stanton, 2007) Seeking to differentiate themselves, some firms extend their product lines with new modes; others come up with a â€Å"new and improved† version of their primary brand. During this stage, the pressure is greatest on those brands that trail the #1 and #2 brands. During the latter part of this stage, marginal producers, those with high costs or no differential advantages, drop out of the market. Etzel, Walker, Stanton, 2007) Sakae during the maturity stage of its life cycle it designs new promotion. Such as for members they can consume $30 and get $20 worth of vouchers. It also modified their services by adding self service hot water then customers can have freshly steeped tea anytime they want with its unique piped in hot water system that is fitted to every table. 4. 1. 2 Packaging Packaging consists of all the activities of designing and producing the container or wrapper for a product. . (Etzel, Walker, Stanton, 2007) Packaging can protect the product on its way to the consumer; protect the product line after it is purchased; help persuade middlemen to accept the product and help persuade consumers to buy the product. (Etzel, Walker, Stanton, 2007) Sakae use colourful plates going for merely S$1. 99 and premium red plates at S$4. 99, it also have the frog logo in it 4. 1. 3 Branding A brand is a name and/or mark intended to identify the product of one seller or group of sellers and to differentiate the product from competing products. A brand name consists of words, letters, and/or numbers that can be vocalised. Etzel, Walker, Stanton, 2007) Brand identification has certain advantages. It enables the seller to build a consumer following and identify a given level of quality with a product. It facilitates differentiating a product from competitors’. (Davis, 1985) The Sakae frog symbolises a brand that is far sighted and poised to grow by leaps and bounds. Its smile indicates a friendly company, welcoming all. Its Asian heritage is reflected through the lower body of the frog that is reminiscent of a Chinese gold ingot, and a bowl filled with rice. The frog’s head and belly also symbolises the number â€Å"8† that is an auspicious number. (http://www. apexpal. com/brands. html) Why Sakae Sushi choose the green colour? Green is the colour of nature, life, its the most restful colour. Green symbolizes self-respect and well being. Green is the colour of balance. It also means learning, growth and harmony. Green is favored by well balanced people. Green symbolizes the life force. It often symbolizes money. People should eat raw green foods for good health. (http://www. crystal-cure. com/green. html) 4. 2 Price Price is the amount of money and/or other items with utility needed to acquire a product. (Etzel, Walker, Stanton, 2007) 4. 2. 1 Seasonal discount A manufacturer of goods purchased on a seasonal basis may consider granting a seasonal discount. (Etzel, Walker, Stanton, 2007) Sakae gives to a customer 10%-20% discount during the slack season. Such as set lunch only $8. 9 each person, and for student only $8. 4. 2. 2 Flexible-Price Under a flexible–price strategy, also called a variable-price strategy, similar customers may pay different prices when buying identical quantities of a product. Etzel, Walker, Stanton, 2007) Sakae Sushi has the buffet promotion, different time could attracting different types of customers. During lunch, teatime and dinner, every child only costs $9. 90. The different is that for youth and senior citizen, they could give a low price $13. 90 during lunch and teatime, until to dinner have a higher price $15. 90. This is the same situation to the adult. 4. 3 Place A distribution channel consists of the set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or consumer or business user. Etzel, Walker, Stanton, 2007) 4. 3. 1 Selective Distribution Selective distribution, a producer sells its product through multiple, but not all possible, wholesalers and retailers in a market where a consumer might reasonably look for it. (Etzel, Walker, Stanton, 2007) The advantage of choose selective distribution are: first, if the company choose intensive distribution there have a high cost on it; another, a firm move toward more selective distribution to enhance the image of its products, strengthen consumer service, improve quality control, and maintain some influence over its prices. Sakae sushi choose selective distribution. With 33 outlets in Singapore the stores are located in shopping centre or near MRT station, such as Plaza Singapore, Bugis Junction and Vivio City. Sakae choose shopping centre and MRT station as their distribution channel as there have a large number of population, it can easy to access its target customer. And if it choose intensive distribution, such as 7-11 or NTUC, then its quality of product will drop, because it cannot offer fresh food and these markets are very small, it cannot access its target audience as much as possible. Franchise system Franchising is a method of doing business wherein a franchisor authorises proven methods of doing business to a franchisee for a fee and a percentage of sales or profits. (http://en. wikipedia. org/wiki/Franchising) Buying a franchise can offer protection to a prospective new retail store or to an independent store that faces stiff competition from chains. The benefit include: Franchisees can use the parent company’s well-known trade name, which should help attract customers; Various forms of management assistance, such as technical, management training and promotion programs. These are provide to franchisees prior to as well as after opening the business. (Etzel, Walker, Stanton, 2007) Sakae has been opened more than 50 outlets in the world. Join sakae as a franchise it will provide guidelines on site selection. The construction team will visit the site that have been selected, assess the location, before working on the design and layout of the outlet. The outlet will be renovated and furnished so that it is ready for operation. 4. 4 Promotion Promotion is the element in an organisation’s marketing mix that serves to inform, persuade, and remind the market of a product and/or the organisation selling it in the hope of influencing the recipients’ feelings, beliefs, or behaviour. (Etzel, Walker, Stanton, 2007) 4. 4. 1 The Communication Process in Promotion A feature of a free-market system is the right to use communication as a tool to persuade as well as inform, that freedom is reflected in the promotional efforts by businesses to affect the awareness, feelings, beliefs, and behaviour of prospective customers. Etzel, Walker, Stanton, 2007) Sakae Sushi wants to share must first be encoded into a transmittable form, and their campaign an idea is â€Å"Good Place, Very Good Sushi† as a slogan. The company use this message of transmitted through a communication channel is the website. The current promotion is the topic about Chinese New Year. This kind of message may change in the receiver’s knowledge, beliefs, or feelings about the sushi. They are willing to try the new menus, and then the response serves as feedback. Through the feedback, Sakae Sushi can learn what a communication accomplished. . 0 Conclusion 5. 1 Contingency plan If Singapore government ban the import of seafood, Sakae will face it cannot offer the fresh seafood to customers everyday and those customers who like such as sashimi and prawn will not come here. At this time, Sakae should look for the local seafood wholesales to make sure it can offer seafood immediately, and innovate new product to attract customers. 5. 2 Evaluation In 2006, Sakae sushi’s total revenue is $30,720,000, the cost is $8,428,000, the profit is $22,292,000. In 2007, the total revenue is $38,781,000, it is increased 26. 2% than 2006, although the cost is increase to $10,694,000, but the profit is increased 26%. In 2008, its financial objectives aim to achieve the profit of $35 million. Across to 2006 and 2007 total revenue, we can found Sakae operates very well and set its financial objectives is reasonable. It use SWOT analysis to help them to know their strengths, weakness, opportunities, and threats. It also use 4ps strategy to increase their sales, which of these can make Sakae to achieve its goals very easily.