A MARKETING PLAN PRESENTED BY: THOMAS J. KENDALL 1
Table of Contents Page 1. Background .....................................................................................................................2 2. Strategic Focus and Plan ................................................................................................2 - Mission Statement .......................................................................................................2 - Goals ...........................................................................................................................3 - Competitive Advantage ..............................................................................................3 3. Situation Analysis............................................................................................................3 - SWOT Analysis ..........................................................................................................4 - Competitor Analysis ...................................................................................................4 - Company Analysis ......................................................................................................5 - Customer Analysis ......................................................................................................5 - Industry Analysis ........................................................................................................5 4. Market-Product Focus....................................................................................................6 - Marketing and Product Objectives ..............................................................................6 - Market-Product Grid ...................................................................................................7 - Target Markets ............................................................................................................7 - Points of Difference ....................................................................................................8 - Positioning ..................................................................................................................8 5. Marketing Program ........................................................................................................8 - Product Strategy ..........................................................................................................8 - Price Strategy ..............................................................................................................9 - Promotional Strategy ..................................................................................................9 - Place Strategy..............................................................................................................9 6. Financial Projections .....................................................................................................10 - Break-even Analysis ..................................................................................................10 7. Organization ...................................................................................................................10 8. Implementation Plan .....................................................................................................11 9. Evaluation and Control .................................................................................................12 - Possible Deviations ....................................................................................................12 - Possible Solutions ......................................................................................................12 Appendices: - Appendix A: Cookie Dippers Flyer ...........................................................................13 - Appendix B: Cookie Dippers Coupons......................................................................14 - Appendix C: Cookie Dippers Survey ........................................................................15
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1. Background
Cookie Dippers is a new product made by Kendall Enterprises. This product was designed to solve the problem created when dipping cookies into milk; the problem of having to choose between dipping the entire cookie and putting your fingers in the milk or only dipping a portion of the cookie.
Kendall Enterprises is a new company based in Boston, Massachusetts. It is a brand new company looking to create innovative new luxury products designed to help solve everyday problems. Cookie Dippers is the first product that Kendall Enterprises is responsible for to this point.
Boston is located on the East shore of Massachusetts in the North East region of America. The population of Boston, MA in 2012 was 636,479 and the median household income in 2011 was $49,081. The average age of Boston residents is 30.8 years old, and of the total population that is 25 years of age or older 84% have a High School or higher and 42.7% have at least a Bachelors Degree. Although Boston is above average for crime among U.S. cities, citizens consider most parts fairly safe.
The residents of Boston, MA pride themselves in sports and heritage, which is very richly Irish. The residents of Boston also show a high interest in food and food services. The third most common industry in Boston as of 2011 was accommodation and food services, and the third most common occupation as of 2011 was cooks and food preparation workers; meaning food is very prominent to the Boston population.
1. Strategic Focus and Plan
This portion of my marketing plan is focused on how to create success with Cookie Dippers. The next three topics will examine how to hopefully achieve the success we envision. The three topics being presented are: the mission statement, the financial and non-financial goals, and the competitive advantages of Cookie Dippers.
Mission Statement:
Our mission at Kendall Enterprises is to supply consumers with products that will help fulfill their needs/wants at a reasonable price. We imagine affective products for everyday use.
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Goals:
Financial: 1. Have a profit. 2. Double the financial value of the corporation in the first year. 3. Be able to afford expansion of the company to the entire country by Jan. 1, 2019. 4. Make 10% profit from sales by Jan. 1, 2015.
Nonfinancial: 1. Fulfill the needs/wants of everyday consumers. 2. Create customer loyalty to Cookie Dippers. 3. Maintain an ethical and economically positive corporation in the eyes of our customers and our competition. 4. Make Cookie Dippers the highest possible quality, while still being affordable to consumers with a wide range of incomes. 5. Begin selling Cookie Dippers in 10 or more shopping centers or supermarkets by the end of the first six months in and around the Boston area. 6. Create Cookie Dippers using recycled materials.
Competitive Advantage:
The biggest competitive advantage of Cookie Dippers is that there is no product like it in the market right now. Creating a thin fork made with 100% recycled materials to slide through the side of cookies will put Cookie Dippers in their own market with very little competition. Another competitive advantage Cookie Dippers has is that the product will be made with 100% recycled materials. With a large market for green products in society today than ever before Cookie Dippers will gain a large market segment of cookie eaters who are also environmentally friendly. Another competitive advantage we have is that we stress high quality and customer satisfaction, which are two traits that consumers care very much about. We also plan on getting Cookie Dippers into supermarkets and shopping centers which will give us the competitive advantage of being easy to access and conveniently ready for purchase at any time.
2. Situational Analysis
The SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis gives us an idea of what kind of external and internal environment Cookie Dippers face. On the top of the following page (3) you will find the SWOT analysis of Cookie Dippers:
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Strengths Weaknesses I have experience using forks to dip cookies, so Cookie Dippers were designed for the most effective dunking and dipping use. Kendall Enterprises is a new company and Cookie Dippers are a new product which may cause consumers to question the reliability and quality of Cookie Dippers. There are no patents for a cookie dunking product yet, so laws do not prevent me from making Cookie Dippers. With no reputation as a company it may be difficult to find stores that will purchase Cookie Dippers. 100% Recycled Materials Costs of producing a never before seen product are high. Our goals are to satisfy consumers and leave them happy. It's expensive to seek out and hire new employees. Opportunities Threats The U.S. is a country currently obsessed with luxuries. The American social culture tends to want the newest, biggest, and most expensive which will help Cookie Dippers since they are a luxury product. The health of the U.S. Economy is poor right now and with high unemployment levels many people are losing the will and the ability to spend their money on luxuries and non-necessities. Nearly every American has dunked a cookie in milk before. Everybody can relate to the problem the Cookie Dippers supply a solution to. With little to no competition, market growth and potential is unknown. Cookie Dippers will have no competition locally. Putting Cookie Dippers in stores locally, consumers will find ease in purchasing them. Internal Forces External Forces My target market may not see the big difference between Cookie Dippers and plastic forks.
Competitor Analysis:
With so many cookie companies holding such equal shares of the market, and Cookie Dippers being designed with Oreos specifically in mind, it is important that Cookie Dippers can be used for other cookies other than just Oreos.
There is not very much competition for Cookie Dippers because it is the first product to serve the function that it serves. Forks can be used to slide through the middle of a cookie; however Cookie Dippers are thinner and do a better job. They are also made of 100% recycled materials and cost approximately $4.50 per 100ct, while plastic forks cost between $5.00 and $6.00 per 100ct. 5
Cookie Dippers do not have any competition in the industry of cookie dunking/dipping utensils in the Boston, MA area or anywhere else in the country. However, when people make homemade cookies they may not make a trip to the store before hand and may not get the opportunity to purchase Cookie Dippers. This missed opportunity will hurt the sales of cookie dippers and therefore my largest competitor is actually homemade cookies.
Company Analysis:
Cookie Dippers will be working with Oreo to promote the use of the product when eating Oreo cookies. Since Oreo has had success in the wholesale industry and the cookie industry, Cookie Dippers will have an advantage in promoting our small name product to local grocery stores. Oreos popularity will also hopefully help promote the use of our product.
Since I, Tom Kendall am the inventor of Cookie Dippers and thought of the idea to help solve the problems with dipping cookies in milk with your fingers, I have the experience and expertise to design the most effective utensil to solve that problem.
The use of 100% recycled materials will put me in partnership with Econyl Inc. Econyl is a large Italian based company that has the technology to produce nylon using 100% recycled materials, and they will be helping Cookie Dippers produce an environmentally friendly plastic to use for Cookie Dippers. This may also help Kendall Enterprises to someday expand the sale of Cookie Dippers to Italy as well.
Customer Analysis:
Most of the customers of Cookie Dippers will be from the Boston Area, at least to begin with. Since the residents of Boston tend to be fairly eco-friendly and green I will have an easier time promoting Cookie Dippers in the area. Most of our customers will be between the ages of 12 and 30 years old, and will be of middle to upper-middle income households. Since the residents of Boston tend to be younger than other major U.S. cities the colors of Cookie Dippers will be bright, fun, and modern colors to appeal to the youthful and exciting market segment.
Industry Analysis:
America is becoming more and more eco-friendly and environmentally aware. This is especially true in the North-East. Many young people country wide are taking stands to change their environmental impact. Cookie Dippers will appeal highly to this market segment, which there is a large population of in the Boston, Massachusetts area. 6
3. Market-Product Focus
In the following section Cookie Dippers marketing and product development will be described in detail. Marketing and product objectives will give information about what some of the objective Cookie Dippers wants to achieve through the marketing and the quality of the utensil. A market-product grid can also be found in this section as well as the target market, what the points of difference are, and the positioning of the company.
Marketing and Product Objectives:
Cookie Dippers goal for marketing is to inform the target market that the utensil is a good solution to the problems that come with dipping cookies in milk. We also want to promote ourselves as a company that respects, supports, and listens to our customer base, while supplying the best possible quality of products at the best possible prices. This is in order to build customer loyalty, so when they are finished using the cookie dippers they purchased they go back again to buy more.
Cookie Dippers main goal for marketing is to communicate the advantages of buying our products to current cookie buyers and eaters. If we can inform current cookie eaters of the high quality products we are selling we are doing a good part of our job as marketers. Another goal of marketing our product is to inform the population of cookie eaters in the Boston area that we are supplying a product that is green and made with 100% recycled plastics. These two marketing objectives are our most important at Kendall Enterprises for the marketing of Cookie Dippers.
A good promotional idea that we would like to try is putting on marketing events at high schools and middle schools in the area. We plan on hosting dances for the students of the schools and setting up tables with cookies and milk and our own Cookie Dippers on the table. This will be to promote our name and hopefully create a good impression of the good service that our company is willing to provide. This will also help us connect with part of our target market and then will let those customers promote our company and product for us if they are pleased with the job it does.
Market Product Grid:
On the top of page 7 you will find the market-product grid for Cookie Dippers. It analyzes the market segments and helps identify our target market(s).
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Market-Product Grid: Oreos 5 4 2 1 House Parties 4 Market Segments Product Offerings Other Cookies Homemade Cookies Events Personal Use 2 3 2 1
5 4 3 2 1 Large Medium Small
When analyzing the market-product grid above we can see that the best marketing strategy would be to market towards individuals who eat cookies on a regular basis even when there is no occasion, and we want to promote the Cookie Dippers to individuals who eat Oreos and other brands of cookies that can be purchased at supermarkets and grocery stores. The above grid also tells us that it important not to spend a lot of money trying to market to events that will have a lot of homemade cookies at them or to house parties that are serving Oreos. This means we need to look at times of the year that have events and house parties such as these. For example: many house parties around Christmas time serve homemade cookies rather than store bought cookies, therefore we should not do as much advertising for house parties during the Christmas season.
Target Markets:
Through market research and analysis of companies who started similarly to how we are starting we have discovered that our target market should be a defined well but be broad at the same time. How this works is we should know what age, gender, income, prior education, and interests our target market consist of. However, we should not limit ourselves to that target market, and if we find out that our sales are going to a market segment that we hadnt predicted we should consider changing or adding to our target market.
For any consumer that is looking for a utensil or accessory for food we can tell that the person is trying to improve their eating experience. So when we promote our product to our target market we will guarantee to them that their eating experience will be improved with Cookie Dippers.
Cookie Dippers has a target market of men and women ages 12-30 years old, who are avid cookie fans (mostly everybody) and that come from a middle or upper-middle income 8
household. This is because we have determined that Cookie Dippers are a luxury product and are mostly going to be sold for personal use and second most for house parties. We can see that Boston fits our target market well.
Points of Difference:
Cookie Dippers have unique attributes that make them different than our competitors:
- Cookie Dippers are the only utensil specifically designed to dunk cookies in milk - Cookie Dippers are made with 100% recycled materials - We offer the lowest price for a product such as this - Customers will be able to find Cookie Dippers in their local grocery store where they buy their cookies - We offer a coupon for a free 100ct package of Cookie Dippers for every 200 used Cookie Dippers that customers mail in to our company warehouse in order to recycle and reuse the plastic from them.
Positioning:
Kendall Enterprises wants to have a reputation as a company that stands by its customers and can be relied on to provide the best service and the highest quality at the most affordable prices possible. We also want to gain respect as a company that is very aware of our environmental impact and we want to reduce the amount of impact we have. Since the Cookie Dippers are made with 100% recycled materials we should be able to gain the respect of eco- friendly consumers and hopefully attain that market segment as part of our main customer base.
4. Marketing Program
Product Strategy:
Kendall Enterprises offers a fairly simple product line for Cookie Dippers:
1. Sample Pack: 10 count of Cookie Dippers - $2.25 2. Personal Pack: 25 count of Cookie Dippers - $3.00 3. Family Pack: 50 count of Cookie Dippers - $4.00 4. Party Pack: 100 count of Cookie Dippers - $4.50 5. Event Pack: 250 count of Cookie Dippers - $7.00
Our goal is supply any person with perfect amount of Cookie Dippers for the situation that applies to them. We will ask the stores we sell the range of our products to about how 9
quickly their inventory of Cookie Dippers are moving off their shelves in order to keep a good relationship with our major direct customers(Supermarkets & Grocery Stores), and to make sure we are not manufacturing too many or too few Cookie Dippers.
Price Strategy:
As a marketing/selling strategy we offer deals to consumers and businesses that purchase our products. For example, if a customer is walking through their local supermarket and wants to buy Cookie Dippers they have the option of buying a personal pack of 25 Dippers for $3.00 or they can double that amount and buy the family pack of 50 Dippers for $4.00, just $1.00 more. So they save $2.00 by buying the family pack rather than buy two of the personal packs. We also offer deals like this to the stores that purchase our Cookie Dippers in bulk. If a store purchases 50 of any of the packs we offer they get 10% off their order, and if they purchase 250 or more of any pack we offer they save 15% off their order. This is a good incentive for stores to purchase more of the Cookie Dippers because it gives them the chance to make a larger profit.
Promotion Strategy:
At Kendall Enterprises we can see that it is tough for new businesses in todays economy, which is why we are going to offer many promotional deals for our new customers. One way we plan on promoting our new product Cookie Dippers is to put a couple of ads is the Boston Globe for a two month span that has a coupon for buy one get one free. We are also going to put a coupon on the packaging for the Cookie Dippers that customers can cut out and get $1.00 off their next purchase of any package of Oreos and Cookie Dippers. The coupons will have an expiration date and a limit of one per customer. These coupons can be found in Appendix C.
We are also going to hang up flyers outside and around local stores that you can buy cookies, along with in the stores that Cookie Dippers are available for purchase. The flyers will have deals on them such as buy 2 get one free on any variety pack. We will also have promotional 10 packs given away for free to any customer who buys two packs of Oreos. The flyers will have an expiration date and a limit of one per customer printed on them. See Appendix B to view the flyer.
Another promotional strategy Kendall Enterprises is going to use to help market Cookie Dippers is to put on a couple of dances at local middle schools around the Boston area and give out free single packaged Cookie Dippers with cookies and milk to the students. I would also hang up the flyers and hand out the coupons that were previously mentioned.
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Place Strategy:
Our strategy on where to sell Cookie Dippers is mostly in big name box stores that sell a wide variety of cookies. This is so that the cookie eaters that we want to connect with when we market our product will have easy access to purchase our product if they want to. It is also so that our target market hears a lot and sees a lot about Cookie Dippers and we can become a memorable product in their minds.
6. Financial Projections
To determine the break-even point for Cookie Dippers we need to look at the fixed costs of the company in the first year. The cost of running Kendall Enterprises per year is $60,000. The cost of producing 185,000 Cookie Dippers is $4,625. Those 185,000 Cookie Dippers will be split into: 1000 Sample Packs, 1000 Personal Packs, 500 Family Packs, 500 Party Packs, and 300 Event Packs. This tells us that the average cost per Cookie Dipper is $0.025. What we are charging makes the average price per Cookie Dipper is $0.0996. There is also an initial cost of $500 to have Cookie Dippers plastic molds made and startup costs with the plastic manufacturing company. Below you can find the calculations for the break-even amount.
BEP Revenue = 804,290 Cookie Dippers $0.025 = $20,107.24
7. Organization
Kendall Enterprises has two owners, Thomas Kendall and John Kendall. Thomas Kendall is a current student of Siena College located in upstate New York. John Kendall is a graduate of Castleton State College located in central Vermont. John graduated from Castleton State College in 2013 with honors. Kendall Enterprises working in conjunction with Creative Extrusion & Technologies, a plastic manufacturer located in Brockton, Massachusetts. This is the company that makes the molds and actually forms the Cookie Dippers. However, we get our recycled plastics from Econyl, the Italian company mentioned earlier. So here at Kendall Enterprises we design and purchase the materials to be made by our partner Creative Extrusion & Technologies and then we receive the Cookie Dippers in bulk. After we receive the Cookie Dippers we then hand package them to save money, for we are a new company and found that it is cheaper to cut and label the plastic bags ourselves. We currently have 5 employees that are in charge of sorting and enclosing the packages before shipment to stores.
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8. Implementation Plan
We have only planned events within the next six months of the company because we cannot account for the possible extrapolation of events in the future past six months. The events we have planned are as follows:
Date(s) Event January 14, 2014 Meetings with 2 local Walmarts, 1 Shaw's, 2 Cost-Cos, and 4 Hannafords. February 5, 2014 Advertisement in the Boston Globe with cutout coupon attached. February 12, 2014 Hang Flyers with promotional deals in and around stores selling Cookie Dippers. February 21, 2014 Host Match Charter Public Middle School dance. Give free samples of Cookie Dippers along with Oreos. March 1, 2014 Host Hurley K-8 Elementary/Middle School dance. Give free samples of Cookie Dippers along with Oreos. March 13-14, 2014 Advertise an online survey about customer satisfaction. In return for completion of the survey people will receive a voucher for $1.50 off any package of Oreos and pack of Cookie Dippers combination. April 4, 2014 Get feedback from stores selling Cookie Dippers about sales. April 20-28, 2014 Send 3 employees to stores to make observations of consumer buying habits when buying Cookie Dippers and how that is connected to their purchase of cookies. May 5, 2014 Put advertisement in 2 local news papers about the giveaway event coming up on May 30. May 16, 2014 Place advertisment in Boston Globe about the Quincy Market event on June 13, 2014. May 30, 2014 Giveaway event! Give a free Personal Pack of 25 Cookie Dippers to the first 15 customers to purchase Oreos at any store Cookie Dippers can be purchased at. Limit one per customer. June 13, 2014 Downtown event in Quincy Market. Free Sample Packs of Cookie Dippers. Free t-shirts with purchase of any Cookie Dippers product pack. June 30, 2014 Full company meeting. We will evaluate our progress and success as of this point. Are we meeting financial and non-financial goals? Are we making 10% profit? What is our reputation?
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9. Evaluation and Control
As stated in our mission statement, some of our biggest goals as an organization rely on customer satisfaction. When we evaluate our company we dont only look at profit or lack of it, we look at what feedback weve had and what potential we have for the future.
Possible Deviations:
1. We may not make enough profit to keep our company in business.
2. There may not be enough demand by consumers in the Boston area to continue producing Cookie Dippers.
3. Stores may not purchase Cookie Dippers to place on their shelves.
Possible Solutions:
1. My brother and I may have to start working part time for Kendall enterprises in order to cut company costs. We may also have raise the prices on Cookie Dippers or lower the amount of units that we put in each pack; for example: we might change the Family pack from 100ct. to 75ct.
2. We might have to go on trips around New England or the entire West Coast trying to sell Cookie Dippers to more big stores. We may also have to find a new location to move Kendall Enterprises to and base our sales out of there.
3. If stores dont purchase Cookie Dippers for their shelves we may have to go to bakeries and try to sell to them. We might also create a website to order online. One final possible solution could be to try to create a deal with Oreo and have them attach a couple of Cookie Dippers to each package.
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Buy any two packs of Cookie Dippers, Get one of equal or lesser value free! -Just cut out this coupon and present it at the time of the purchase-
Limit One Per Customer Expires June 30, 2014 Buy any two packs of Oreos Get a Sample Pack of Cookie Dippers Free! -Just cut out this coupon and present it at the time of the purchase-
Limit One Per Customer Expires June 30, 2014 Appendix A Cookie Dippers Flyer
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Buy 1 Get 1 Free on any Cookie Dippers product of equal or lesser value -Cut out this coupon and present it at the time of the purchase- Limit One Per Customer Expires June 30, 2014 15% OFF when you spend $5.00 or more on Cookie Dippers Products -Cut out this coupon and present it at the time of the purchase-
Limit One Per Customer Expires June 30, 2014 Thank you for your purchase. Take $1.00 OFF your next one! -Cut out this coupon and present it at the time of the purchase-
Limit One Per Customer Expires June 30, 2014 1 FREE pack of OREOs when you spend $7.00 or more on Cookie Dippers -Cut out this coupon and present it at the time of the purchase-
Limit One Per Customer Expires June 30, 2014 Appendix C Cookie Dippers Coupons
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Appendix D Cookie Dippers Survey
PLEASE TAKE THE TIME TO FILL OUT THE FOLLOWING SURVEY
Do You Like Cookie Dippers? YES / NO
How Often Do You Use Them Per Month? 0 1-3 4-6 7-9 10+
Carter, Helen. "North-east to Pioneer Building of Eco-friendly Warehouses." The Guardian. Guardian News, Web. Nov. 2013. <http://www.theguardian.com/>.
"Introduction to the Eco-Friendly Youth Project." North East Waste. NE Waste, Web. Nov. 2014. <http://www.newaste.org.au/>.
Johnson, Jamie; Smith, Amy. Student Marketing Plan For Bagels By The Bay. Print. 2013