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MARKETING PLAN FOR HEALTH FOOD CANDY.
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Product description, production process, distribution channels, target market, advertising.... More...
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Paper Abstract:
Product description, production process, distribution channels, target market, advertising.
Paper Introduction:
The purpose of this research is to develop a marketing plan for a health food candy. The candy is classified in the health food category due to product ingredients. The marketing plan will include a description of the product, the production process, identification of the target market, as well as advertising and promotional techniques through the most effective channels of distribution.
Product Description.
The candy is a natural food. That is, the candy is free of refined sugar, non-nutrient sweeteners, as well as all preservatives and additives. The product is a rock-candy sweetened with fruit juice. Fruit juice provides the desired sweetness without the high caloric count of other candies. The candy is designed with nutrition in mind rather than shelf life
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H. New product development is costly and risky. (1984). These demographic (Kuczmarski, 1988) forces as well as changingvalues and related environmental dynamics have a profound influence onmarkets and their purchasing behavior. Conversely, ads aimed at age groups of 35 and upwards aregenerally successful, as "baby boomers" assume good health practices. (1985). Time134, 66. Fruit juiceprovides the desired sweetness without the high caloric count of othercandies. The new product is a hard candy made with fruit juice that is aimedat a health-conscious market. (1987, January 19). M. Marketeers andadvertisers are more interested in the reaction of the consumers to thisinformation because experts have conflicting opinions as to thesignificance of the data. All sorts of Americans are eating health foods to cut intake ofsalt, preservatives, cholesterol, fats, as well as refined sugars. Competitive analysis is essential to gain knowledge ofcompetitors through review of media coverage, annual reports, trade shows,and product literature. Television advertising is limited tomarkets where there are a sufficient number of stores to justify the cost.Conclusion. Steinberg, J. Successful new product development requires customer orientation,effective coordination (synergy) of developmental and marketing efforts,and a resulting product with unique and superior features. Currently, more consumersconsider themselves health enthusiasts and adopt the advise ofnutritionists who advocate fructose over sucrose. Salespromotions are used to push the product toward the customer, such assupporting strategies employed to motivate sales forces anddealer/distribution networks (pushing the product toward the customer).Advertising analyses are strategies employed to pull the customer to thecompany such as newspaper, consumer magazine, trade publication, radio,television, specialty stores, direct mail, and point of purchase- The types of media for effective utilization include television andradio (especially when broadcast during a "health alert" program),newspapers and magazines (particularly those that are health conscious),and personal presentations such as point of sale counters at health foodstores and related supermarkets. Changes in eatinghabits, working women, and two income households are often cited as themajor influences fueling natural foods' entry into the mainstream. The tone of advertising is to reflect the voiceof an old friend. The flavor is irrelevant, selling health is what matters (Toufexis,1989). D. Advertising agencies will define anobjective and target a budget then translate the objective into anappropriate advertising strategy. & Downham, J. C. U.S. Seltz, D. As a result,the increasing market segment has encouraged manufacturers to arrange need-satisfying and profitable offers to target buyers.Advertising/Promotional Techniques The budget for advertising should be sufficient to attain the goalsinvolved. Breakthroughs. Systematic developmentprocedures can help to ensure success. Udell, J. Caution has been disregarded with theonslaught of natural foods in the retailer mainstream. Several methods of establishing an advertising budget includethe objective and task method, percentage of sales method, and competitiveparity method. A study of sugar. EnglewoodCliffs, NJ: Prentice-Hall.Nayak, P. The numberand nature of intermediaries used will depend upon which combination canaccommodate the flow of goods most efficiently. The product will beintroduced with introductory pricing and special introductory discounts.This strategy will appeal to the 'bargain hunter" as well as provideinducement to the supermarket managers to place the product on theirshelves, provide sufficient shelf space for an adequate stock, allocate aspace of some prominence which will permit the new product to compete on anequal basis with standard confections and provide in-store advertisingspace for the product. G. Such procedures include (inaddition to the above mentioned analyses) societal analysis, markettesting, and product introduction through target markets.Target Market. According to statistics in the Natural Foods Merchandiser--a trademagazine published by New Hope Community in Boulder, CO--the total retailsales of natural foods in 1988 equaled $3.6 billion, opposed to $2.7billion in 1984 and $1.8 billion in 1979. (1988). It should also be noted that honey is preferred overrefined sugar by health enthusiasts. New York: John Wiley and Sons, 1981. The marketing planning guide. Natural foods have shedtheir unsophisticated ways for the bright lights offered by majormanufacturers and the wide aisles of supermarkets. Handbook of innovative marketing techniques.Reading, MA: Addison-Wesley. The advertising campaign directed at the target market will provideincentive for consumers, distributors, and retailers. A third analysis, market share analysis, isconducted to gather information through government statistics, tradeassociations, and market research studies. The candy is classified in the health food category dueto product ingredients. This is indicativeof a growing target market as the population expands and changes incomposition, as incomes and prices rise, as educational levels advance, asmore women enter the labor force, as people move and as lifestyles arealtered. Advertising agencies usually play a major role in theconstruction of advertising messages. Kuczmarski, T. (1988, April 11). News & WorldReport 1 2, 66. & Ketteringham, J. Essential information to develop aneffective campaign include information about marketing intimate knowledgeof the product, and information regarding competitors. Not all mass marketing techniques are suitable for the health foodindustry. (1981). Englewood Cliffs,NJ: Prentice-Hall. The consumer market researchhandbook. References Carey, J. (1981). The market strategy is to promote nutritionand health. R. The product is a rock-candy sweetened with fruit juice. The final phase of the advertising campaign will include mass mediacoverage through newspapers, magazines, radio, and television where asufficient number of stores exist to justify the cost and where healthconscious consumers frequent. Marketing in an age ofchange. Therefore, it isessential to analyze trends [in similar product data] over a period of timeto compare and contrast leading indicators. It should affirm the quality of the more traditionalproducts, but clearly establish the uniqueness of the new product. Although supermarkets sell less, they have increased theirmarket share by seven percent since 1986.Channels of Distribution. The purpose of this research is to develop a marketing plan for ahealth food candy. W. Equallyprominent in the advertising will be the information concerning ingredientsused in the manufacturer of the product. The candy is designed with nutrition in mind rather than shelflife or cosmetic appearance. D. Planning profitable new product strategies.Radnor, PA: Chilton Book Co. Evidently a sizeable segment of thepopulation agrees with the nutritionists and the taste tests. Further, taste tests,using children, have concluded that fruit juice sweetener is preferableover honey because consumers indicated that they disliked the strong after-taste of honey. Even with nutritionand health as a focus, the desire for candy-type foods remain, and studiesindicate that confections can be successfully marketed to most healthenthusiasts, as well as the health conscious, if a product is developedthat will satisfy the urge for sweets without adding empty calories. In fact, items (such as brownrice, rice cakes, and granola bars) once found only in health food storeshave passed into the mainstream. R. There are, of course, otherreasons for adopting nutrition and health practices, these are but two ofthe most current reasons for altering diet behavior. Natural foods used to mean foods that utilized minimal processing.Today natural products have lost their image as "rabbit food' and havejoined their less dignified product counterparts. Moreand more consumers fear their health is threatened by the foods they eat.Some of these people are health conscious because of recent publicity aboutcancer causing chemicals like alar in vegetables and fruits while othersintend to optimize performance in sports. The initial steps are to identify a sponsor, the goals to beobtained, the product to be promoted, and the market to be reached.Extensive research may be required to secure the latter; such researchseeks to identify the characteristics, needs, perceptions and purchasingbehavior of the targeted market. Distribution is a system of exchange facilitation that gathers theproducts of individual producers and disseminate them to consumers.Distribution can be viewed as a set of business activities devoted to themovement of goods from their raw material state to consumption. While scientists fault sugar only for causingtooth decay, nutritionists contend that sugar contains no nutrients and areoften found in fattening foods that can lead to obesity, diabetes, andheart disease when consumed in large amounts. 3rd. Ten percent of these sales aregenerated by supermarkets while health food stores provide the remainingninety percent. & Laczniak, G. Health fooddesserts are following entrees and snacks. New York Times, Sec.3, Fl3. Worcester, R. (1989, July 16). Health foods are specialty markets in that people will go out oftheir way, if necessary, to acquire health food items. Battle of the food blurbs. (1986). The vehicles include prime-timetelevision on the educational channel as well as local network and localeditions of newspapers and magazines. According to one study (Taylor, 1984), it takes 58 product ideas toculminate in one successful new product. Toufexis, A. (1989, September 11). Other References Consulted Bangs Jr., D. Even among those few productideas which reach the market, the failure rate is high. New York: Elsevier Science Publishing.----------------------- 1 Although the number of health consciousconsumers have increased, the volume still may be too low to warrant use ofcoupons. As a result, manycompanies creatively imitate the proven innovations of others, rather thanattempt to generate their own. Economic activities are viewedas tools to help determine market potential and trends in market behavior.For instance, economic indicators identify primary and secondary markets aswell as ascertain if conditions are likely to improve, worsen, or remainconstant. In the past experts talked of opportunitiesin the health food segment, but their visions were scaled down and thewatchword appeared to be caution. This change in diet could be the result of various studies,particularly those studies that address human consumption of sugar (Carey,1987, January 19). The marketing plan will include a description ofthe product, the production process, identification of the target market,as well as advertising and promotional techniques through the mosteffective channels of distribution.Product Description. New York:Rawson Associates. Geoghegan, P. Taylor J. (1988). (1986). In addition tomanufacturers, supermarkets have initiated new consumer programs to bettersatisfy the needs of health-conscious consumers. Capitalizing on a new crop ofcustomers. That is, the candy is free of refinedsugar, non-nutrient sweeteners, as well as all preservatives and additives. Therefore, the creative strategy to marketthis product is based on the advantages of nutrition.Production Process. The advertising will present the product as a confection whichwill satisfy the craving for sweets in the same manner as standardconfections but without the added preservatives and calories. Ed. One study indicates that a typical five-year-oldconsumes 43 pounds of refined sugar within one year. The marketing plan workbook. The candy is a natural food. Managing new products. This phase of the campaign also includes point ofsale counters at health food stores and related supermarkets. Makens, J. As technology and costs change, a need may arise for new channels.Historically, certain channels are used, such as vending machines, directmail, company-owned retail outlets, independent retail outlets, salesforce, wholesalers/distributors (company-owned and independent). Natural foods in the mainstream.Supermarket News, 14. Once a staple for a small segment of the United States population,health food entrees and snacks have moved to the mainstream. Portsmouth,NH: Upstart Publishing Co. For example, using coupons, in the past, have failed becauseresearchers found that volumes of health food product were not high enoughfor the endeavor to be profitable. Advertising strategy is creatively applied to knowledge for thepurpose of finding the most effective way to communicate through the mediawith a targeted audience.
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