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Strategic Marketing Plan for Protein Fusion Crunch Cereal MKTG3007

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Added on: 2024-12-07 18:30:12
Order Code: SA Student Zahra Arts and Humanities Assignment(6_24_43127_163)
Question Task Id: 509204
  • Subject Code :

    MKTG3007

EXECUTIVE SUMMARY

Protein Fusion operates in a dynamic macro environment influenced by political, economic, social, technological, legal, and environmental factors. Key considerations include government regulations, inflation, consumer spending, cultural differences, technological advancements, food safety laws, and sustainability. The competitive landscape includes brands like Sanitarium, Kellogg's, Nestl, and Uncle Tobys, necessitating effective differentiation.

Protein Fusion aims to sell its product through at least 15 businesses and maintain a profit margin of at least 10% within the next two years.

The target market for "Protein Fusion Crunch Cereal" consists of health-conscious individuals aged 18-35, including fitness enthusiasts and busy professionals. The product offers 20 grams of protein per serving from high-quality whey, pea, and nut protein, catering to on-the-go consumers seeking a nutritious breakfast.

Protein Fusion will use social media marketing, in-store demos and samples, digital ads, influencer marketing, and strategic alliances with gyms and fitness studios to promote "Protein Fusion Crunch." These methods aim to engage directly with consumers, increase brand visibility, and build trust through authentic endorsements.

The product combines whole grain oats, chia seeds, almonds, dried berries, and vanilla whey protein isolate. A value-based pricing strategy will be employed, supported by cost-plus pricing, with promotional discounts and bundling options. Distribution will be broad, including health and fitness outlets, with the introduction of subscription packages to enhance brand loyalty.

A budget of AUD 100,000 will be allocated to digital advertising, in-store promotions, and influencer marketing to increase brand awareness, boost in-store sales, and enhance brand credibility.

This plan aims to establish "Protein Fusion Crunch" as the preferred breakfast cereal for health-conscious, busy individuals, leveraging targeted strategies and robust promotional activities to achieve significant market presence and profitability.

SITUATION ANALYSIS

A macro environment is an environment in which a business operates within. The term is used to label the numerous external forces that may impact/influence the way a business operates (CFI Team, 2015). The purpose of identifying these broader forces is to allow businesses to conduct analysis, enabling them to consider actions plans and resolutions to the possible issues that can arise (The Investopedia Team, 2023). In doing so businesses are able to limit any possible money loss and adapt to matters that often take a toll on unprepared businesses in our economy. In certain cases, these forces being prepared for can lead to potential opportunities for leverage against competitors. Examples of some of the forces that constitute the business environment are economic conditions, government, suppliers, competitors, etc (Toppr, n.d.). Overall, these forces tend to fall under the categories Political, Social, Economic, Technological, Legal and Environmental. Completed was a PESTLE analysis in which we considered factors that may affect Protein Fusion. In terms of the political aspect of the environment Protein Fusion will need to consider changes in government regulation in relation to trade agreement, taxes and overall policy changes (Boyles, 2022). In terms of Economics, wed need to consider things such as economic conditions as issues like inflation can affect cost control for the business and can tie into another issue we should consider which is customer spending. In terms of social the business would need to consider cultural, lifestyle and health differences to correctly adjust our product and its marketing. When considering technology keeping up to with it can be difficult due to its constant development over the years however it is crucial for businesses as digital marketing can allow a business monumental growth to through different platforms, use of data analytics can improve the business in areas such as its customer and supply chain and up to date manufacturing equipment can increase production efficiency overall. In terms of legal factors wed largely need to consider food laws ensuring that we uphold food safety, labelling and advertising requirements for our products (Makos, 2024). And lastly with environmental the matter of climate change will continue to arise tying in with us ensuring production is in alignment with sustainability. Our business will have numerous competitors with brands like Sanitarium Food Company with Weet-bix, Kellogs with Nutri grain, Nestle with Milo and Uncle Tobys along other private label and small local brands all holding a healthy, protein-based breakfast cereal (Tracxn, 2024).

MARKETING GOALS AND SMART OBJECTIVES

Our business product Protein Fusion Crunch cereal holds two marketing goals. The first, which is our non-monetary goal, is to sell our product through at least 15 businesses within the 2 years whether they are large retailers or locally owned small businesses. The second goal, which is monetary, is to maintain a profit margin of at least 10%.

MARKETING STRATEGY

Our target customers for the Protein Fusion Crunch Cereal are those who take care of their health and want to have a convenient and tasty source of protein in the morning. This group comprises people who are into healthy living, have busy schedules and have an interest in fitness. The overall objective of the marketing campaign is to position Protein Fusion Crunch as the preferred breakfast cereal for consumers who seek convenience and protein as part of their meal. There is a rapid increase in consumer demand for a healthier, more nutritious and natural source of energy.

Breakfast is widely regarded as the most important meal of the day, with skipping it negatively impacting both health and intellectual performance (Adonu et al., 2023). University life and work life, characterised by tight schedules and demanding early-morning activities, underscores the importance of maintaining a healthy breakfast routine. Habits formed during youth and early adulthood, particularly regarding breakfast, play a significant role in promoting a healthy lifestyle (Adonu et al., 2023). Numerous studies have demonstrated that maintaining a regular meal schedule and consistently eating breakfast can improve overall diet quality and mental health (Adonu et al., 2023).

The majority of current and potential customers fall into the category of people who attend gyms and fitness facilities or are engaged in sports, they are in other words a segment of health-conscious consumers seeking better and healthier breakfast options. People within this category of consumers are conscious of their health and are always on the lookout for more sources of protein that they can incorporate in their meals. They are typically young adults ( such as 1835 years of age ) , financially self-sufficient, and fairly active. Exercise is significant for them, and they are willing to buy equipment that will contribute to their fitness and weight loss goals (Dwivedi et al., 2021).

Persona 1- Mary ( Health and Wellness Advocate ) : At least five days a week, Mary, a 25-year-old fitness fanatic, hits the gym. With a full-time job, she certainly has a very busy life between her work, her social media accounts and her own fitness blog. Fitness and healthy living are very important to her, and she is always in search of novel platforms that can assist her in achieving her goals. She prefers taking protein foods for breakfast and most of the time she is on a high protein diet. Mary doesnt always have time to make breakfast as she is always in a rush and tends to go for fast food options. ( Li et al., 2020 ) .

Persona 1 Priya (Busy Professional ) : Priya aged 40 is an executive of a multinational corporation. She works long hours and often travels for work. Priya gets up early and mostly skips breakfast due to time limitations. She understands the need for a healthy and nutritious breakfast as she has noticed that she frequently experiences fatigue around mid-morning. She desires something quick and easy that will sustain her until lunchtime.

VALUE PROPOSITION

Protein Fusion Crunch cereal is perfect for an on-the-go person like Mary and Priya to ensure they are getting their protein fix and starting their day in a healthy way. This cereal contains 20 grams of protein derived from a combination of high-quality whey, berries and nut protein. Protein Fusion Crunch is a perfect option for people who want to increase protein and improve their physical shape while eating breakfast (Li et al., 2020).

Statement of Position: Protein Fusion Crunch is great for people who are always on the go and want protein without compromising their health and taste as well as a quick option that is considered time - pressed option that focuses on wellness and maintaining a high energy level throughout a busy day.

The placement map above highlights that Fusion Crunch Cereal stands out as both distinctive and appealing due to its exceptional convenience and high protein content. These attributes are crucial for attracting the target audience and enhancing the product's market value.

MARKETING TACTICS

Product

Protein Fusion Crunch Cereal is a breakfast innovation poised to transform your mornings. Crafted with precision, this flagship product embodies a fusion of whole grain oats, nutrient-rich chia seeds, crunchy almonds, and luscious dried berries, all infused with premium vanilla whey protein isolate. This product is designed not just as a meal but as a nutritional powerhouse, "Protein Fusion" promises a satisfying and energising start to your day. Each serving offers a harmonious blend of protein, fibre, and essential nutrients, catering to health-conscious consumers seeking a wholesome breakfast option. The inspiration behind "Protein Fusion" stemmed from a commitment to create a breakfast solution that excels in both taste and nutritional value, meticulously selecting ingredients to deliver a truly exceptional cereal experience.

In addition to its nutritional benefits, Protein Fusion Crunch Cereal is quick, easy, and convenient, making it the perfect choice for busy mornings. Whether youre rushing to work, heading to the gym, or simply want a hassle-free start to your day, this cereal ensures you dont compromise on nutrition or taste. Just pour, add your preferred milk or yoghurt, and enjoy a delicious, protein-packed breakfast in minutes.

Price

In determining the pricing strategy for "Protein Fusion Crunch," we delve into the 5Cs - cost, customer, convenience, communication, and competition. Given the competitive landscape and the premium positioning of our product, a value-based pricing strategy is most suitable. This approach considers the product's unique value proposition, aligning with the preferences of health-conscious consumers who prioritise quality and nutrition. Additionally, considering the rising demand for functional breakfast options and the dynamic market trends, implementing a cost-plus pricing model alongside value-based pricing could offer flexibility in adapting to changing market dynamics.

A conventional approach employed by companies to maintain profit margins is the cost-plus pricing method. This straightforward pricing strategy allows businesses to optimise profits by incorporating a predetermined percentage above the product cost to establish the selling price. While various other considerations are involved in pricing decisions, mastering the application of cost-plus pricing is crucial for enhancing margins and ensuring consistent profitability (Indeed, 2023). Moreover, offering incentives such as promotional discounts or bundling options could further incentivize trial and drive initial adoption, enhancing our competitive advantage in the market. Through a strategic pricing approach and value-driven incentives, we aim to establish "Protein Fusion" as the preferred choice among discerning consumers seeking a nutritious and convenient breakfast solution.

Distribution

Protein Fusion Crunch has employed a broad distribution approach, ensuring our brand is present within a variety of reputable health and fitness outlets to maintain a premium brand image. In line with our customer oriented values, a suitable suggestion for an unconventional way of reaching out would be to consider having a subscription package of our products. This approach is similar to the one used by YouFoodz, a popular distributor of healthy foods which employs a selective distribution channel aimed at getting to the health conscious consumers directly and regularly. If adopted, it would lead to increased brand loyalty among our clients while at the same time ensuring that we constantly attract new buyers within this niche market segment. In summary, introducing subscription packages as another form of distributing items can help us widen our coverage as well as consolidate our position in the industry.

Promotion

  1. Objective: Increase Brand Awareness and Market Presence

IMC Tool:Digital Advertising (Social Media and Search Engine Marketing)

As the marketing landscape of today has been predominantly digital (Stamoulis, 2021), utilising the advancements made within the digital marketing industry will allow Protein Fusion Crunch a vast array of marketing tools to reach our target customers. Allocating $30,000 to digital promotion on social media platforms such as Instagram and TikTok, and an additional $10,000 on Googles search and display ads, by utilising pre-existing ad targeting, using Vaross conversion rate it is expected for our advertisements to reach upwards of 3,000,000 users on TikTok alone (Shaked, 2023).

  1. Objective: Boost In-Store Sales

IMC Tool:In-Store Promotions

By installing thought provoking and attractive promotional materials, within supermarkets, health food stores and even gyms, Protein Fusion Crunch can be directly viewed by our desired audiences. The production cost and point-of-sale advertising fees range from $15,000 to $25,000 however, to maximise consumer reach, spending $25,000 towards these promotional initiatives is necessary (Terraboost media , 2024).

  1. Objective: Boost Brand Credibility and Reach

IMC Tool: Influencer Marketing

A reliable method to build our image and establish trust can be working with health and fitness influencers. We can use an influencer as a stage to promote Protein Fusion Crunch and its various health benefits through a promotional partnership. If we collaborate with people such as Sam Wood or Amanda Bisk who have over 500k followers each on Instagram, it will not only increase credibility within the health/lifestyle market but also increase overall engagement among our target audience.

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  • Posted on : December 07th, 2024
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