write-up a Marketing Plan

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research and write-up a Marketing Plan for the Company Blue Apron

In attached file is an example of what I need you to do!


I just need you to do these area :

1.0 Executive Summary

3.0 Marketing Strategy

3.1 Mission

3.2 Marketing Objectives

3.3 Financial Objectives

3.4 Target Markets

3.5 Positioning

4.0 Market Tactics

4.1 Products

4.2 Pricing

4.3 Distribution

4.4 Communications

4.5 Marketing Research

5.0 Financials

5.1 Break-Even Analysis

5.2 Sales Forecast

5.3 Expense Forecast

You can use these sources:

1 Our Team. www.blueapron.com. 2Bary, Emily. Finally, Some Good News for Blue Apron. Barron’s Next. (September 6, 2017). 3Rainey, Clint. Blue Apron Has Started Laying People Off. Grub Street. (August 23, 2017).


1Azad, Babak. “How Blue Apron Revealed a Lot More about Customer Acquisition and Retention than It Likely Intended To.” http://www.babakazad.com/blue-apron-customer-acqui... 2Consumer Affairs. Blue Apron Customer Reviews and Complaints. https://www.consumeraffairs.com/food/blue-apron.ht... 3Leonhardt, Megan. These 2 Charts Show Just How Popular Meal-Kit Services Are. Time. http://time.com/money/4855511/who-buys-meal-kit-se... July 20, 2017.


1Fowler, Bree. “Personal chefs aren’t just for the rich anymore.” ABC News. http://abcnews.go.com/Business/story?id=3710269&pa... 2Schawbel, Dan. “10 New Findings about the Millennial Consumer.” Forbes. Jan 20, 2015. https://www.forbes.com/sites/danschawbel/2015/01/2... 3Smith, Lindsey et al. “Trends in US home food preparation and consumption: analysis of national nutrition surveys and time use studies from 1965-1966 to 2007-2008.” Nutrition Journal 12:45 (2013). 4Solomen, Micah. “2015 is the Year of the Millennial Customer: 5 Key Traits These 80 Million Consumers Share.” Forbes. Dec 29, 2014. https://www.forbes.com/sites/micahsolomon/2014/12/... 5Grand View Research. “Global Frozen Food Market Worth Will Grow to $307.33 billion in 2020: New Report by Grand View Research, Inc.” Nov 19, 2014. https://globenewswire.com/news-release/2014/11/19/...

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60 PART 1 UNDERSTANDING MARKETING MANAGEMENT DEVELOPING MARKETING STRATEGIES AND PLANS Sample Marketing Plan | CHAPTER 2 Pegasus Sports International* 1.0 Executive Summary 2.0 Situation Analysis Pegasus Sports International is a start-up aftermarket inline skating accessory manufacturer. In addition to the aftermarket products, Pegasus is developing SkateTours, a service that takes clients out, in conjunction with a local skate shop, and provides them with an afternoon of skating using inline skates and some of Pegasus’ other accessories such as SkateSails. The aftermarket skate accessory market has been largely ignored. Although there are several major manufacturers of the skates themselves, the accessory market has not been addressed. This provides Pegasus with an extraordinary opportunity for market growth. Skating is a booming sport. Currently, most of the skating is recre- ational. There are, however, a growing number of skating competitions, including team-oriented competitions such as skate hockey as well as individual competitions such as speed skate racing. Pegasus will work to grow these markets and develop the skate transportation market, a more utilitarian use of skating. Several of Pegasus’ currently developed products have patents pending, and local market research indicates that there is great demand for these products. Pegasus will achieve fast, nificant market penetration through a solid business model, siglong-range planning, and a strong management team that is able to execute thisteam exciting The three principalspersonal on the management haveopportunity. over 30 years of combined and industry experience. This extensive experience provides Pegasus with the empirical information as well as the passion to provide the skating market with much-needed aftermarket products. Pegasus will sell its products initially through its Web site. This “Dell” direct-to-the-consumer approach will allow Pegasus to achieve higher margins and maintain a close relationship with the customers, which is essential for producing products that have a true market demand. By the end of the year, Pegasus will have also developed relationships with different skate shops and will begin to sell some of its products through retailers. Pegasus is entering its first year of operation. Its products have been well received, and marketing will be key to the development of brand and product awareness as well as the growth of the customer base. Pegasus International offers several different aftermarket skating accessories, serving the growing inline skating industry. TABLE 2.1 2.1 Market Summary Pegasus possesses good information about the market and knows a great deal about the common attributes of the most prized customer. This information will be leveraged to better understand who is served, what their specific needs are, and how Pegasus can better communicate with them. Target Markets ■ Recreational ■ Fitness ■ Speed ■ Hockey ■ Extreme 2.1.1 Market Demographics The profile for the typical Pegasus customer consists of the following geographic, demographic, and behavior factors: Geographics ■ Pegasus has no set geographic target area. By leveraging the expansive reach of the Internet and multiple delivery services, Pegasus can serve both domestic and international customers. ■ The total targeted population is 31 million users. Target Market Forecast Target Market Forecast Potential Customers Growth 2011 2012 2013 2014 2015 CAGR* Recreational 10% 19,142,500 21,056,750 23,162,425 25,478,668 28,026,535 10.00% Fitness 15% 6,820,000 7,843,000 9,019,450 10,372,368 11,928,223 15.00% Speed 10% 387,500 426,250 468,875 515,763 567,339 10.00% Hockey 6% 2,480,000 2,628,800 2,786,528 2,953,720 3,130,943 6.00% Extreme Total 4% 10.48% 2,170,000 2,256,800 2,347,072 2,440,955 2,538,593 31,000,000 34,211,600 37,784,350 41,761,474 46,191,633 4.00% 10.48% *Compound Annual Growth Rate Source: Adapted from a sample plan provided by and copyrighted by Palo Alto Software, Inc. Find more complete sample marketing plans at www.mplans.com. Reprinted by permission of Palo Alto Software. 60 Demographics ■ There is an almost equal ratio between male and female users. ■ Ages 13–46, with 48% clustering around ages 23–34. The recreational users tend to cover the widest age range, including young users through active adults. The fitness users tend to be ages 20–40. The speed users tend to be in their late twenties and early thirties. The hockey players are generally in their teens through their early twenties. The extreme segment is of similar age to the hockey players. ■ Of the users who are over 20, 65% have an undergraduate degree or substantial undergraduate coursework. ■ The adult users have a median personal income of $47,000. Users enjoy fitness activities not as a means for a healthy life, but as an intrinsically enjoyable activity in itself. Users equipment. ■ ■ spend money on gear, typically sports Users have active lifestyles that include some sort of recreation at least two to three times a week. 2.1.2 Market Needs Pegasus is providing the skating community with a wide range of accessories for all variations of skating. The company seeks to fulfill the following benefits that are important to its customers: ■ Quality craftsmanship. The customers work hard for their money and do not enjoy spending it on disposable products that work for only a year or two. ■ ■ 2.1.4 Market Growth With the price of skates going down due to competition by so many skate companies, the market has had steady growth throughout the world, although sales had slowed down in some markets. The growth statistics for 2007 were estimated to be over 35 million units. More and more people are discovering— and in many cases rediscovering—the health benefits and fun of skating. 2.2 SWOT Analysis Behavior Factors ■ Another trend is group skating. More and more groups are get- ting together on skating excursions in cities all over the world. For example, San Francisco has night group skating that attracts hun- dreds of people. The market trends are showing continued growth in all directions of skating. Well-thought-out designs. The skating market has not been addressed by well-thought-out products that serve skaters’ needs. Pegasus’ industry experience and personal dedication to the sport will provide it with the needed informa- tion to produce insightfully designed products. Customer service. Exemplary service is required to build a sustainable business that has a loyal customer base. The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Pegasus. 2.2.1 Strengths ■ In-depth industry experience and insight ■ Creative, yet practical product designers ■ The use of a highly efficient, flexible business model utilizing direct customer sales and distribution 2.2.2 Weaknesses ■ The reliance on outside capital necessary to grow the business ■ A lack of retailers who can work face-to-face with the customer to generate brand and product awareness ■ The difficulty of developing brand awareness as a start-up company 2.2.3 Opportunities Participation industry within ■ Decreased scale 2.1.3 Market Trends ■ Pegasus will distinguish itself by marketing products not previ- ously available to skaters. The emphasis in the past has been to sell skates and very few replacement parts. The number of skaters is not restricted to any one single country, continent, or age group, so there is a world market. Pegasus has products for virtually every group of skaters. The fastest-growing seg- ment of this sport is the fitness skater. Therefore, the marketing is being directed toward this group. BladeBoots will enable users to enter establishments without having to remove their skates. BladeBoots will be aimed at the recreational skater, the largest segment. SkateAids, on the other hand, are great for everyone. The sport of skating will also grow through SkateSailing. This sport is primarily for the medium-to-advanced skater, and its growth potential is tremendous. The sails that Pegasus has manu- factured have been sold in Europe, following a pattern similar to windsurfing. Windsailing originated in Santa Monica but did not take off until it had already grown big in Europe. ■ a growing product costs through economy of The ability to leverage other industry participants’ marketing efforts to help grow the general market 2.2.4 Threats ■ Future/potential competition from an already established market participant ■ A slump in the economy that could have a negative effect on people’s spending of discretionary income on fitness/ recreational products ■ The release of a study that calls into question the safety of skating or the inability to prevent major skating- induced traumas 2.3 Competition Pegasus Sports International is forming its own market. Although there are a few companies that do make sails and foils that a few skaters are using, Pegasus is the only brand that is truly designed for and by skaters. The few competitors’ sails on the market are not designed for skating, but for windsurfing or for skateboards. In the case of foils, storage and carrying are not practical. There are different indirect competitors who are manufacturers of the actual skates. After many years in the market, these companies have yet to become direct competitors by manufacturing accessories for the skates that they make. 2.4 Product Offering Pegasus Sports International now offers several products: ■ ■ ■ The first product that has been developed is BladeBoots, a cover for the wheels and frame of inline skates, which allows skaters to enter places that normally would not allow them in with skates on. BladeBoots come with a small pouch and belt that converts to a well-designed skate carrier. The second product is SkateSails. These sails are specifically designed for use while skating. Feedback that Pegasus has received from skaters indicates skatesailing could become a very popular sport. Trademarking this product is currently in progress. The third product, SkateAid, will be in production by the end of the year. Other ideas for products are under development, but will not be disclosed until Pegasus can protect them through pending patent applications. 3.1 Mission Pegasus Sports International’s mission is to provide the customer with the finest skating accessories available. “We exist to attract and maintain customers. With a strict adherence to this maxim, success will be ensured. Our services and products will exceed the expectations of the customers.” 3.2 Marketing Objectives ■ Maintain positive, strong growth each quarter (notwithstand- ing seasonal sales patterns). Achieve penetration. ■ ■ a steady increase in market Decrease customer acquisition costs by 1.5% per quarter. 3.3 Financial Objectives ■ Increase the profit margin by 1% per quarter through effi- ciency and economy-of-scale gains. ■ Maintain a significant research and development budget (as a percentage relative to sales) to spur future product developments. ■ Achieve a double- to triple-digit growth rate for the first three years. 2.5 Keys to Success 3.4 Target Markets The keys to success are designing and producing products that meet market demand. In addition, Pegasus must ensure total customer satisfaction. If these keys to success are achieved, it will become a profitable, sustainable company. With a world skating market of over 31 million that is steadily growing (statistics released by the Sporting Goods Manufacturers Association), the niche has been created. Pegasus’ aim is to expand this market by promoting SkateSailing, a new sport that is popular in both Santa Monica and Venice Beach in California. The Sporting Goods Manufacturers Association survey indicates that skating now has more participation than football, softball, skiing, and snowboarding combined. The breakdown of participation in skating is as follows: 1+% speed (growing), 8% hockey (declining), 7% extreme/aggressive (declining), 22% fitness (nearly 7 million—the fastest growing), and 61% recreational (first-timers). Pegasus’ products are targeting the fitness and recreational groups, because they are the fastest growing. These groups are gearing themselves toward health and fitness, and combined, they can easily grow to 85% (or 26 million) of the market in the next five years. 2.6 Critical Issues As a start-up business, Pegasus is still in the early stages. The critical issues are for Pegasus to: Establish company. ■ itself as the premier skating accessory ■ Pursue controlled growth that dictates that payroll expenses will never exceed the revenue base. This will help protect against recessions. ■ Constantly monitor customer satisfaction, ensuring that the growth strategy will never compromise service and satis- faction levels. 3.0 Marketing Strategy 3.5 Positioning The key to the marketing strategy is focusing on the speed, health and fitness, and recreational skaters. Pegasus can cover about 80% of the skating market because it produces products geared toward each segment. Pegasus is able to address all of the differ- ent segments within the market because, although each segment is distinct in terms of its users and equipment, its products are useful to all of the different segments. Pegasus will position itself as the premier aftermarket skating accessory company. This positioning will be achieved by leverag- ing Pegasus’ competitive edge: industry experience and passion. Pegasus is a skating company formed by skaters for skaters. Its management is able to use its vast experience and personal pas- sion for the sport to develop innovative, useful accessories for a broad range of skaters. 3.6 Strategies 4.1 Break-Even Analysis The single objective is to position Pegasus as the premier skating accessory manufacturer, serving the domestic market as well as the international market. The marketing strategy will seek to first create customer awareness concerning the offered products and services and then develop the customer base. The message that Pegasus will seek to communicate is that it offers the best-designed, most useful skating accessories. This message will be communicated through a variety of methods. The first will be the Pegasus Web site, which will provide a rich source of product information and offer con- sumers the opportunity to purchase. A lot of time and money will be invested in the site to provide the customer with the perception of total professionalism and utility for Pegasus’ products and services. The second marketing method will be advertisements placed in numerous industry magazines. The skating industry is supported by several different glossy magazines designed to promote the industry as a whole. In addition, a number of smaller periodi- cals serve the smaller market segments within the skating industry. The last method of communication is the use of printed sales literature. The two previously mentioned marketing methods will create demand for the sales literature, which will be sent out to customers. The cost of the sales literature will be fairly minimal, because it will use the already-compiled information from the Web site. The break-even analysis indicates that $7,760 will be required in monthly sales revenue to reach the break-even point. 3.7 Marketing Program Pegasus’ marketing program is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. • Pricing. price. TABLE 4.1 Break-Even Analysis Break-Even Analysis: Monthly Units Break-Even 62 Monthly Sales Break-Even $ 7,760 Assumptions: Average Per-Unit Revenue $125.62 Average Per-Unit Variable Cost $ 22.61 Estimated Monthly Fixed Cost $ 6,363 4.2 Sales Forecast Pegasus feels that the sales forecast figures are conservative. It will steadily increase sales as the advertising budget allows. Although the target market forecast (Table 2.1) listed all of the potential customers divided into separate groups, the sales fore- cast groups customers into two categories: recreational and competitive. Reducing the number of categories allows the reader to quickly discern information, making the chart more functional. Monthly Sales Forecast This will be based on a per-product retail • Distribution. Initially, Pegasus will use a direct-toconsumer distribution model. Over time, it will use retailers as well. TABLE 4.2 Sales Forecast Sales Forecast • Advertising and promotion. Several different methods will be used for the advertising effort. • Customer service. Pegasus will strive to achieve benchmarked levels of customer care. 3.8 Marketing Research Pegasus is blessed with the good fortune of being located in the center of the skating world: Venice, California. It will be able to leverage this opportune location by working with many of the dif- ferent skaters that live in the area. Pegasus was able to test all of its products not only with its principals, who are accomplished skaters, but also with the many other dedicated and “newbie” users located in Venice. The extensive product testing by a wide variety of users provided Pegasus with valuable product feedback and has led to several design improvements. 4.0 Financials This section will offer the financial overview of Pegasus related to marketing activities. Pegasus will address break-even analysis, sales forecasts, expense forecast, and indicate how these activi- ties link to the marketing strategy. Sales 2011 2012 2013 Recreational $455,740 $598,877 $687,765 Competitive $ 72,918 $ 95,820 $110,042 Total Sales $528,658 $694,697 $797,807 2011 2012 2013 $ 82,033 $107,798 $123,798 Direct Cost of Sales Recreational Competitive $ 13,125 $ 17,248 $ 19,808 Subtotal Cost of Sales $ 95,158 $125,046 $143,606 4.3 Expense Forecast The expense forecast will be used as a tool to keep the department on target and provide indicators when corrections/modifications are needed for the proper implementation of the marketing plan. Milestones Milestones TABLE 4.3 Plan Milestones Marketing plan completion Web site completion Advertising campaign #1 Advertising campaign #2 Development of the retail channel Totals Start Date End Date Budget Manager Department 1/1/11 1/1/11 1/1/11 3/1/11 1/1/11 2/1/11 3/15/11 6/30/11 12/30/11 11/30/11 $ 0 $20,400 $ 3,500 $ 4,550 $ 0 $28,450 Stan outside firm Stan Stan Stan Marketing Marketing Marketing Marketing Marketing Monthly Expense Budget Marketing Expense Budget TABLE 4.4 Marketing Expense Budget ■ Customer satisfaction ■ New-product development 5.1 Implementation The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget. 2011 2012 2013 Web Site $ 25,000 $ 8,000 $ 10,000 Advertisements $ 8,050 $ 15,000 $ 20,000 5.2 Marketing Organization Printed Material $ 1,725 $ 2,000 $ 3,000 Stan Blade will be responsible for the marketing activities. Total Sales and Marketing Expenses $ 34,775 $ 25,000 $ 33,000 5.3 Contingency Planning 6.58% 3.60% 4.14% $398,725 $544,652 $621,202 75.42% 78.40% Percent of Sales Contribution Margin Contribution Margin/Sales 77.86% Difficulties and Risks ■ Problems generating visibility, a function of being an Internet- based start-up organization ■ An entry into the market by an already-established market competitor 5.0 Controls The purpose of Pegasus’ marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance: ■ Revenue: monthly and annual Expenses: annual ■ monthly and Worst-Case Risks ■ Determining that the business cannot support itself on an ongoing basis ■ Having to liquidate equipment or intellectual capital to cover liabilities
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Blue Apron Company Marketing Plan

1

A Marketing Plan for the Company Blue Apron

Name

Course
Instructor
Date Due

Blue Apron Company Marketing Plan

2

1.0 Executive Summary
Blue Apron will adopt a variety of market tactics including reimagining the conventional grocery
business model as well as developing and integrated ecosystem that embraces expertise and
technology across many disciplines. Moreover, through the company’s supply-demand
coordinated activities including demand planning, recipe merchandising, recipe creation, and
marketing have been critical in driving Blue Apron’s end-to-end value chain. The importance of
an effective marketing strategy is to the benefits of an innovatively developed business model are
affectively communicated and delivered to customers. Blue Apron has the potential to serve the
greater part of the U.S population and extend to international market. Its marketing strategy is
anchored on quality, value, as well as variety and convenience. For instance, Blue Apron ensures
that it delivers specialty and unique ingredients to its customers through elimination of
middlemen in its supply chain. Moreover, the meals provided by Blue Apron are believed to
offer compelling value when a comparison is considered with those bought from grocery stores.
Furthermore, variety and convenience is central to the company’s memorable cooking
experience. Blue Apron’s target markets are within the frozen meals, kit-meals, wines, markets,
as well as ranch products, including being a premium supplier of pasture raised poultry and
grass-fed beef. In attempts of better equipping its customers towards excelling as home cooks,
Blue Apron will embark on launching its Blue Apron Market, that would encompass its emarketplace that shall feature a curated utensils, and cooking tools’ selections as well as pantry
items that the company’s culinary team recommends. The break-even analysis indicates that
$102,283 will be required in quarterly annual sales revenue to reach the break-even point.

Blue Apron Company Marketing Plan

3

3.0 Marketing Strategy
The importance of an effective marketing strategy is to the benefits of an innovatively developed
business model are affectively communicated and delivered to customers. Blue Apron has the
potential to serve the greater part of the U.S population and extend to international market. Its
marketing strategy is anchored on quality, value, as well as variety and convenience. For
instance, Blue Apron ensures that it delivers specialty and unique ingredients to its customers
through elimination of middlemen in its supply chain. Moreover, the meals provided by Blue
Apron are believed to offer compelling value when a comparison is considered with those bought
from grocery stores. Furthermore, variety and convenience is central to the company’s
memorable cooking experience.
3.1 Mission
Blue Apron’s mission is to provide and make ac...


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This is great! Exactly what I wanted.

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