[Innocent Cereal Bar]
1. Marketing Objectives Page 3
2. Target Market
1. Introduction Page 5
2. The whole Organic food and drink market Page 5
3. Segmenting the Market Page 5
4. Description of potential segments Page 5
5. Applying criteria to potential segments Page 5
6. Customer Profile Page 6
3. Customer Perceptual Positioning Map Page 7
1. Introduction Page 7
2. Customer Preceptual Positioning Map Page 7
3. Key Brands Page 7
4. Main types of dimensions page 7
5. Constrcting The map ...view middle of the document...
After the first year of sales to have sales revenue at £19m
To break even after 3 years from the launch
This would be one of the main and one of the most important objectives to achieve; otherwise the company will not be making a profit and could go bust.
During the first three years we aim to achieve a substantial amount of revenue, which hopefully will be able to cover our overhead costs.
Our costs for production during the first year or so will be high, as we’re releasing a new product into the market. The capital investment will be high in areas such as marketing campaigns, transportation costs and also the core product itself. However after the product has established itself in the market, we will be able to see these costs decrease. Costs such as transportation and supplies will hopefully decrease as we will have formed relationships with suppliers and hopefully used distribution channels, which Innocent already obtain. Thus reducing the overhead costs.
With this said, it won’t be as straight forward to do, as some distribution channels and some suppliers may think we’re too much of a high of a risk to invest in, as the market is already saturated with Kellogg’s and UB sharing 41% of the market.
To achieve 9% market share within 2 year and try to achieve another 6% after 3 years.
We believe that this objective can be a realistic objective as the cereal bar will be associated with innocent, which already has 71% market share in the smoothies sector. Therefore with the cereal bar being branded with innocent, the former and current innocent consumers will stay loyal with the brand and try our new cereal bar, thus creating a larger market share for the cereal bar. Also as innocent has a large popularity and a large reputation within the UK for their products being healthy and ethnic, consumers from our target market would want to buy into it. Another reason to why we could possibly achieve 9% within the first 2 years is because we will be able to use innocent’s distribution channels, which will allow us to sell our products next to the smoothies, this therefore instantly allows us to be sold in specialist stores and also the large retail stores. This is a competitive advantage we will have over any other brand trying to release a new cereal bar product, as they would have to form relationships, while we already have an existing and strong relationship with many outlets.
We believe that once we have achieved 9% in the first 2 years, we will be able to achieve another 6% within 3 years. This is because, if the product has done well in the first 2 years, it will already have a moderate size of the market, which is only expanding at a rate of 2.2% per year. The market research shows that since 2006 the cereal bar market has expanded by 28%, reaching sales of £389 million in 2011. So with this said, the market is only expected to grow more, and we believe that the cereal bar will be at the forehead of the growth. If the brand is to...