Final NUNLEE Marketing Plan

[Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS Marketing Plan Group Danielle Dawkins Cheron Farley Tashana Sprattling Hong Guan Yang Yang Yu [Type text] 1 [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 2 Jennhyfer Laforest Table of Contents Introduction  ………………………………………………………………………  Executive Summary ………………………………………………………………  Goals ………………………………………………………………………………  SWOT …………………………………………………………………………… 6-8 Market Analysis  Market and Productive Objectives  ……………………………………………  Target Market  ………………………………………………………………… Positioning Statement  ……………………………………………………………  Feasibility  ……………………………………………………………………… Marketing Strategy Recommendations  Product  …………………………………………………………………………  Distribution  ……………………………………………………………………  Promotion  ………………………………………………………………………  Price  …………………………………………………………………………… Financial Data and Projections  Cross Tabulations  ………………………………………………………………  Past Sales Revenue  ……………………………………………………………  Performa Statements / CLV Analysis  …………………………………………  Projected Sales Revenue  ………………………………………………………  Break Even Analysis  ………………………………………………………… [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 3 Executive Summary This marketing plan in its entirety is a complication of semester long assignments and research in which a marketing plan was developed for a consortium of Delaware farms Tilapia is the common name for nearly a hundred species of fish Tilapia is a popular fish with a mild flavor In order to market this product a cohesive marketing plan, promotion plan, and feasibility test were conducted in order to reach to our conclusion The tilapia being marketed in our plan is superior to its competitors in that our tilapia is always imported fresh, pricing points, and the raising of our fish The focal point for this marketing plan is the promotion and selling of fresh fish tilapia Tilapia in a nutshell is an African freshwater cichlid fish that is widely popular in areas of seafood and fish concerts Tilapia fish are probably the oldest farm raised fish in the world Tilapia is popular because it is a mild flavored, white-fleshed fish that is available throughout the year at a competitive price Tilapia is a hardy herbivorous fish that feeds on algae or small aquatic plant cells, and is primarily raised in freshwater systems using cages, ponds, raceways or open water Tilapia as a product has numerous benefits to offer to consumers Tilapia is a disease resistant fish with low cost Tilapia is an ideal choice for any segment of the market solely on price aspects In this marketing plan the focal target market is families with annual incomes of 50,000 or lower with children located in the mid-Atlantic Our targets have at least a high school degree In beginning the marketing plan the feasibility of tilapia in the market was first looked at Cross tabulations and break even analysis were financial methods used in order to prove the validity and worthwhileness of tilapia for the target market Distribution will spread between various cities The tilapia will be distributed to local fish markets in [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 4 North Carolina, Virginia, Maryland, Delaware, New Jersey, and New York Overtime the demand for tilapia will increase because of its quality, source of fish, and the freshness For the promotional advertising we choose to promote this business via the following mediums of communication: newspaper, website, magazine, and salesperson The cost of each, in its respective order, is: $26,088.63 + $25,050 + $90,000 + $44,000 This gives a total of $185,138.63 for our overall promotional budget We would also like to advertise through social media, as this way would be completely free These five choices are best for our promotional plan simply because we will advertise and promote in more than enough ways, while still remaining under the total budget of $1 million for the entire business investment [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 5 STRATEGIC FOCUS MISSION/VISION Mission: Our mission is to show our customers how important it is to eat healthier by providing a facility that reproduces, harvests, and sells its own fresh tilapia We will serve customers along the Mid-Atlantic region of the United States offering premiumgrown and premium-sold fresh fish Vision: The vision of Tilapia Consortium of Delaware Farms is to expand western throughout the central, mid-western, and western zones of the United States We will then decide to “go global” based on our sales/profit performance in the United States Our business will expand overseas housing many franchises in numerous countries of the world, serving as the lead company specializing in Tilapia GOALS NON FINANCIAL GOAL FINANCIAL GOALS [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 6 SWOT ANALYSIS Strengths: The company’s strengths would be a large population target, selling fresh fish vs frozen, and economies of scale The target market the company is aiming for has a high demand for fresh fish The Mid-Atlantic is derived of Caucasians, African Americans, Mexicans, as well as Asians who would contribute to buying fresh fish Selling fresh versus frozen fish will help attract more customers because of the healthy nutrients it provides Fresh is better than frozen because a customer will know where the fish is coming from and how it was raised and fed versus having the frozen fish that was imported in Regarding economies of scale, the more fish the business can produce, the lower the fixed costs will be making a profitable company Weaknesses: The company requires high initial investment because the business will have its own facility According to the information we found online, the estimate initial investment for a 6-tank tilapia facility is $301,575 The transportation cost(s) for fresh shipments of tilapia to other regions of the U.S would also be high Because the company will be selling fresh tilapia, the quality of the fish has to be guaranteed entailing that the tank(s) require(s) specific qualities of air, water, and temperature The company is a new company in the fish market No one is aware of the brand-thus this start-up company has a weak brand right now This company has a weak supply chain It is facing problems in its distribution process Transportation companies are needed to help with transporting the fresh tilapia The company needs to build long-term relationships with [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 7 seafood markets, supermarkets, and restaurants in the Middle Atlantic region to amend this issue Opportunities: This company faces low competition There are not a significant amount of fish markets that produce/breed and/or sell only tilapia, nor are there a significant amount of fish markets performing the above-listed with fresh, non-frozen tilapia To further ensure quality-sold tilapia, the company needs to contract with a local fish market to hire a skilled fresh fish preparer As a plan to reverse the continuation of a weak brand, the company should host programs promoting tilapia awareness and knowledge Because tilapia is a disease-resistant fish, it will not pose a threat to human life The company needs to incorporate and instill this knowledge into a qualitative, attractive brand Threats: There is inconsistency in the availability of fish supply Being that tilapia is not a popular fish, this means customers have a plethora of alternatives to choose from The average price of tilapia is not very high So, people can afford it However, the average price of fresh tilapia is higher than the average price of frozen tilapia So, if the economy is experiencing a recession, price-sensitive customers will easily switch from buying fresh tilapia to buying frozen tilapia Technology that is not updated, efficient or effective will pose a major threat for this company Water quality is one of the most overlooked aspects of pond management regarding fish production Clay turbidity in ponds is one of the most common quality issues addressed However, several other variables like water temperature, phytoplankton, photosynthesis and pH, carbon dioxide, alkalinity and [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 8 hardness also influence water quality A transportation technological method is mandated to deliver fish to each market If the technology isn’t executed in the most efficient and effective way, the fish sent to other markets will succumb to death as a result of being exposed to oxygen It is a private company, so there won’t be lots of regulations However, there are state regulations on the types of tilapia they can raise Target Market The target market for this business should be families (with children) that gross $50,000 or below a year, residing in the Mid-Atlantic region of the United States Families that make this amount of money are considered to be the working/working poor social class Being that tilapia is an inexpensive and healthy food source, these families would contribute to the most profit of the business Families that bring home more than $50,000 would not even consider tilapia because of its “cheap” price These families will more than likely buy from higher-end fish markets that sell their tilapia for a higher price, mistaking only this factor for better quality fish As for the children being involved with the buying power of the tilapia within a family making $50,000 or below, parents will be aware that tilapia is a healthier source of fish being that it is disease-resistant and use this knowledge as a reason to buy more tilapia for the sake of the kids’ health This, in turn, will drive the profits high because the kids are being involved [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 9 MARKET ANALYSIS Marketing and Productive Strategy Our main goals for our business are increasing awareness among consumers, providing information about the benefits of consuming fresh tilapia, reducing resistance to buying the our product Also, distinguishing our fish as a premier type of tilapia with the best taste, at the best price in our region We also will focus on increasing our sales Our strategy for achieving this goal increasing sales among women between the ages of 25-50 We choose to specify on that target market because most woman of those ages have children and women they are more cautious about what they eat and what they feed to their kids Profitability is one of our major objectives, making sure that revenue stays ahead of our cost of production The key to achieving that is focusing on both our production and operation while making a profit The core of any business is the employee They are the face our company and they help the company retain our customer and generate repeat revenue, and keeping our clients happy With all these objectives we hope to bring forward the marketing to help in the success of our company [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 10 10 Target Market Our target market is families with 50,000 annual incomes or lower with children According to the data from U.S Census Bureau, the median household income in the U.S was $51,939 in 2013 People with higher income will choose more expensive fish instead of tilapia, or they will go to restaurants instead of cooking by them Our targets have at least high school degree, because people with a high school degree or lower consumed significantly less of any fish (Jahns, Raatz, Johnson, Kranz, Silverstein, & Picklo, 2014) Tilapia is known as a healthy food Tilapia contains all the essential amino acids human body requires from the diet to help build proteins The most important factor is that tilapia is a rich source of omega-3 fatty acids, which are important for growth and development in children and brain function (Coleman, n.d.) Families with kids have higher demand for food that promotes health and well-being They will consume fresh tilapia for the health of their children [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 11 11 Positioning Statement For a household making $50,000 or less that wants to find an inexpensive fish that is fresh and raised on a farm, then purchasing tilapia is best This fish, when fresh, provides you with a healthier choice in your life style A household making $50,000 or less would prefer to purchase tilapia and on a regular basis than a household making $50,000 or more This is because tilapia is very inexpensive as opposed to the price(s) of other kinds of fish Because of the inexpensiveness of this fish, a family making over $50,000 would prefer to buy an expensive kind of fish simply because the price of tilapia would seem too cheap for them to buy Because they make more money than a family making $50,000 or less, they can afford to buy not only a pricier fish but a much tastier fish as well Unlike imported and/or frozen fish, the fresh tilapia grown here will provide a sense of familiarity Because this company will mate the fish to increase production and harvest them, consumers and customers will know how the tilapia is raised This includes what it is fed and any contamination it may have that may lead to food poisoning if not harvested properly If the fish were brought in from local waters and/or ocean contamination would be of very high concern The factors that are influencing the consumer to purchase this fish are: that it is affordable, healthier and that it is fresher compared to the frozen tilapia We should segment the market by looking at who purchases this type of fish based off income We need to collect statistics on the income that generates the most sales in purchasing tilapia At Wal-Mart, one brand of fresh tilapia fillets run for around $6/lb For this weighted price, three fillets are included Another brand sells 2lb bags of frozen tilapia for $7 [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 12 12 Feasibility (Financial Analysis) SPECIFIC COST Promotion (yearly) Refrigerated truck (one-time cost) Distribution (yearly) COST (IN DOLLARS) $185,138.63 $24,300 $10,400 ($200 weekly, once a week Employees (yearly) Facility (one-time cost) Machinery (one-time cost) TOTAL * 52 weeks in a year) $514,000 $48,000 $180,000 $961,838.63/$1M As previously discussed, our total promotion costs are $185,138.63 The cost of three refrigerated trucks total is $24,300 ($8,100 x 3) We agreed on three delivery trucks because we would be able to evenly distribute the states into three main sections based on location One truck would deliver only to the top half of North Carolina, another delivering only to West Virginia and Virginia, and the last truck delivering to Pennsylvania, Delaware, some of New York, Connecticut, and New Jersey This distribution would be beneficial because if this business was to only have on truck, we would have to factor in more mileage which, in turn, would mean more gas money and longer traveling distance for the truck drivers The kind of truck is a 2006 Isuzu NPR 16’ Reefer Van Refrigerated Truck that will be purchased off eBay This would bring a total distribution (gas) cost to $10,400 There will be fourteen total employees: two fish butchers making $30,000 salaries, two technical trainees for operation of the machinery making $52,000 salaries, five workers that would monitor the fish tanks and collected data of the machinery making $30,000 salaries, the three truck drivers making $50,000 salaries, and two overall cameramen observing the cameras in the entire facility making [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 13 13 $25,000 salaries We are hoping to find a facility of 12,000 square feet where we can lease for a total of $48,000 somewhere in Delaware The machinery needed will cost $180,000 This gives a grand total of $961,838.63 for start-up costs of the business in its entirety We feel that these costs are beyond feasible since this is a new business that has yet to actually be established yet Further technologies (advancement), newer vehicles, and increased salaries will emerge in the later years as the business success proves itself MARKETING STRATEGY RECOMMENDATIONS Product [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 14 14 Distribution The companies’ channel of distribution is we are the producers of the fish then it will be distributed among different stores in varies cities We feel that this method will be the most profitable because it gives our customers a variety of places to get our product [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 15 15 The target market that we are achieving to reach is the Mid-Atlanta region, with that being said we will distribute our fish to local fish markets in North Carolina, Virginia, Maryland, Delaware, New Jersey and New York With the mass-producing of fish, we will deliver the fresh fish weekly to our fish markets in the various cities by a refrigerated truck Over time the demand for the fresh tilapia will increase because of its quality, source of the fish and its freshness The demand will be at an all-time high, which we will be well equipped for the demand Since the fresh tilapia will be stationed in each state we are targeting the profit will be greater than having it stationed in one main location Promotion [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 16 16 Price STORE Walmart Fresh Tilapia lbs $6.98; lbs $7.92 TYPES OF FISH Frozen Tilapia Swaii 1lb $4.98 $2 lbs $6.98 [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS Wholey’s The Fresh 2lbs $24.00 1lb $17.50 N/A N/A [Type text] 17 17 N/A N/A Lobster Company Our selling price for 1lb of fresh Tilapia is $6.50, where the percent markup on cost is: (1+Markup) x (UC): (1+.50) x ($4.334)=$6.50 The percent markup on selling price is: UC/(1-Markup): $4.334/(1-.50)= $8.668 Cross Tabulations Tilapia/Income $0 -$30,000 $30,000 -$50,000 $50,000 -$70,000 $70,000 -$100,000 Total Eat Tilapia 19 Don’t eat Tilapia Tilapia/Children Have child Eat Tilapia Don’t eat Tilapia [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 18 18 No child Total 10 19 Tilapia /Race Caucasian/European Asian African American Hispanic or Latino Native American or American Indian Other Total Eat Tilapia 5 Don’t eat Tilapia 0 4 20 FINANCIAL DATA AND PROJECTIONS Past Sales Revenue Because this business has not been established yet, there are no past sales revenues; therefore, the past sales revenue is $0 Projected Sales Revenue [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 19 19 Weekly Projected Sales/ Revenue Forecasting Estimated Fillet Tilapia Sold: Average Sales per order Estimated Whole Tilapia Sold: Average Sales per order Total Projected Sales Net Sales Fish Tilapia Mahi Mahi Salmon BEV=FC/(P-VC) Frozen Fresh Price Price Premiu (lb) (lb) m 3.49 5.94 70.20% 10.49 4.93 17.04 6.66 Average $6.50 90 lbs $585 $2,535 $2,535 Break Even Analysis Store Walmart Sams Club Walmart $6.50 300 lbs $1,950 62.44% 35.09% 55.91% [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 20 20 BEV= ($185,138.63 + $10,000 + $514,000) / ($6.50 – ($24,300 + $48,000 + $180,000)) BEV= ($709,138.63) / ($6.50 – ($252,300) BEV= ($709,138.63) / (-252,293.50) BEV= ($-2.81076853) BIBLIOGRAPHY References [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 21 21 (2002) Aquaculture in North Carolina: Tilapia North Carolina Department of Agriculture and Consumer Services Transportation of Fish and Fish Products (2015) Retrieved from Food and Agriculture Organization of the United States: http://www.fao.org/fishery/topic/12327/en APPENDICES [...]... new business that has yet to actually be established yet Further technologies (advancement), newer vehicles, and increased salaries will emerge in the later years as the business success proves itself MARKETING STRATEGY RECOMMENDATIONS Product [Type text] [Type text] Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS [Type text] 14 14 Distribution The companies’ channel of distribution is we are the