1. INU1105: Introduction to Marketing
Summative Assignment 2
1
INTO NEWCASTLE UNIVERSITY
Diploma in Business
INU1105
INTRODUCTION TO MARKETING
Summative Assignment 2
A group assignment to produce a strategic marketing plan for your new product idea.
(2000 words)
GROUP MEMBERS
Geng Sidai(Elena) 110558172
Ma Han Chih(Haze) 110560577
Mabel Lim Yi Jun 110558367
Yuan Tiezheng(TZ) 110562836
TUTOR
Louise Thompson
Date of submission: 16th April 2012
Word Count : 2200
2. INU1105: Introduction to Marketing
Summative Assignment 2
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A Strategic Marketing Plan for a
New Product Idea
Brand Logo
Superbaby Foods Limited
&
its Superbabys Milk Cubes (SMC) products range
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Summative Assignment 2
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CONTENTS
Title Page
1. Executive Summary
2. Background Statement
3. Company Introduction
3.1 Background Information
3.2 Vision Statement
3.3 Mission Statement
3.4 Core Values
4. Product Introduction
4.1 Product Information
4.2 Product Claims/Benefits
5. Environment Analysis
5.1 PESTLE
5.2 SWOT
6. Competitors Analysis
6.1 Competition and Buying Patterns
6.2 Main Competitors
7. Customers Analysis
8. Market Analysis
8.1 Segmentation
8.2 Targeting
8.3 Positioning
9. Marketing Plan
9.1 Strategic Plan
9.2 Tactical Plan
10. Appendix
11. References
4
5
6
7
8
9
10
11
12
13
21
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Summative Assignment 2
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1. Executive Summary
This marketing report explains the strategic marketing plans that Superbaby Foods
Limited would be carrying out for its new product idea – the Superbaby Milk Cubes
(SMC). After analysing the environment, market, its competitors and customers,
Superbaby has come up with a range of marketing programmes to be carried out
within the United Kingdom (UK) to support the launch of its SMC products range.
The marketing activities would take place during the first 6 months from the launch
date with a budget of £200,000. Market research and statistics have also been
provided as supporting documents at the end of this report.
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Summative Assignment 2
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2. Background Statement
The children food products industry has been expanding steadily given the increasing
awareness of quality products for babies and toddlers among parents and caretakers.
Furthermore, the optimistic economic growth rate within the UK gives a positive
outlook for the children products industry. Changes in consumption and trends have
also presented itself as an opportunity. Therefore, Superbaby has analysed all these
trends and opportunities to launch this new product idea that aims to satisfy
customers’ changing needs and wants. As this is a new product idea that none of its
competitors have adopted, Superbaby will pride itself for being different and unique
to bring about greater convenience for customers today.
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Summative Assignment 2
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3. Company Introduction
3.1 Background Information
Superbaby Foods Limited is a new entry food company that specialises in children
milk products. The slogan of Superbaby is “Always here for you!” so delivering
qualitative and reliant products to customers is the company’s main objective. The
Superbaby Milk Cubes (SMC) comprises of a range of milk powder cubes for babies
and toddlers in different flavours and packaging sizes. Many parents have seen to be
in a constant challenge of balancing a hectic schedule in this modern society.
Customers’ needs and wants associated with a product are not fixed as they change
with time and according to culture and lifestyles. Thus, Superbaby took the
opportunity to launch SMC to satisfy the change in customers’ requirements.
3.2 Vision Statement
To be the trusted children milk products company that caretakers all over the world
can rely on.
3.3 MissionStatement
To enlighten the burden of caretakers by continuously striving to provide only the
best nutritional children milk products that are convenient yet quality guaranteed.
3.4 Core Values
Swift: Provide user-friendly products
Smart: Nurture brain development
Strong: Build a healthy body
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Summative Assignment 2
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4. Product Introduction
As Superbaby prides itself in providing high quality yet convenient products, the
SMC products range will bring about a unique form of milk powder packaged in
cubes.
4.1 Product Information
Product Amount Price Recommended Use
For babies 0-6 Months
(Standard Box)
Two layers of 4x7
cubes (30g each)
£16.99 Daily Usage
For babies 1-3 Years
(Standard Box)
Single layer of 4x7
cubes (30g each)
£9.99 Daily Usage
For babies 0-6 Months
(Travel Pack)
Single layer of 3x4
cubes (30g each)
£4.99 On-the-go
For babies 1-3 Years
(Travel Pack)
Single layer of 3x4
cubes (30g each)
£4.99 On-the-go
Sample 2 cubes (30g each) Sample Sample
(Refer to figures 1.1, 1.2, 1.3, 1.4 & 1.5)
Also, our cubes / bar of cubes will be packaged in an aluminium foil while the outer
layer will be wrapped in a recyclable paper with the brand and product specifications
printed on it.
(Refer to Figures 1.6 & 1.7)
4.2 Product Claims/Benefits
Nutritional – packed with vitamins and minerals
High standard of quality assured
User-friendly, simple and convenient to use
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5. Environment Analysis
5.1 PESTLE
Superbaby has found that the external environment is conducive to launch Superbaby
products.
(Refer to Figure 2.1)
5.2 SWOT
After analysing the internal strengths and weaknesses, external opportunities and
threats, Superbaby has developed a comprehensive strategy to take advantage of the
current situation. Firstly, Superbaby will capitalise on its strengths through Research
and Development (R&D) by bringing more nutritious and convenient products to the
customers. Next, Superbaby will take advantage of the opportunities by means of
marketing to mothers who are living a hectic lifestyle. In addition, Superbaby will
also work on its weaknesses by raising the company’s profile. Lastly, Superbaby will
lower the threats by differentiating itself in terms of products and services from its
competitors.
(Refer to Figure 2.2)
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Summative Assignment 2
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6. Competitors Analysis
6.1 Competition and Buying Patterns
The most important factor in this market will be the quality of the product. With the
high standards of hygiene and protection required due to the nature of the industry,
our products are going to need to stand out against our competitors. This will attract
and encourage our customers to use our products against other top brands in the
market.
6.2 Main Competitors
There are currently a few well-established brands in the UK market that will be in
direct competition with Superbaby’s SMC products. An analysis of the competitors
has been done so as to help gauge how Superbaby should position itself in this
competitive market.
(Refer to Figures 3.1, 3.2, 3.3 & 3.4)
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Summative Assignment 2
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7. Customers Analysis
Targeted Customers
- Parents
o Career Mothers
Hectic schedule
Wants convenience and prefer simple to use products
Save time and trouble
Market Research
- Preference in children food products
o Higher protein and mineral content
Enhance immune system
o Added iron and vitamins
Important for bone and brain development
- Increasing knowledge and product choices
o Parents aware of products specifications
Selective of purchases
Quality more important then price
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8. Market Analysis
8.1 Segmentation
DEMOGRAPHICS PSYCHOGRAHIC BEHAVIOUR
Age: Working Mothers
(21-39 years old)
Income: High, Middle,
Low
Nationality: American
Asian
European
African
Family Size: Small to
large family
Lifestyle: Hectic, Non-
working
Attitude: Fast, Convenient,
Slow and Relax
Beliefs: Quality and
reliability
Interest: Travelling
Stay home
Usage rate: Daily, Weekly,
Monthly
Benefit Sought: High in
Vitamins and Minerals
Attitude towards product:
Quality and Convenient,
Cheap
8.2 Targeting
After analysing the various segments, Superbaby has decided to focus on working
mothers (21-39 years old) from all nationalities who is earning a high income, living a
hectic lifestyle and loves travelling. Superbaby will also target mothers who belief in
quality and reliability, has an attitude of fast and convenience. Mothers who are
looking for nutritious baby-products are also Superbaby’s target.
8.3 Positioning
PRICE Premium Price
2 layers, 4 by 7: £16.99
1 layer, 4 by 7: £9.99
Travel pack, 3 by 4: £4.99
KEY BENEFITS Convenient and User-Friendly
Nutritious, pack with Vitamins and Minerals
Good for Brain, Bone and Teeth development
Easily digested by babies
AVAILABILITY Hospitals
Nurseries
Supermarkets
IMAGE Prestige
Trustworthy
Quality
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Summative Assignment 2
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9. Marketing Plan
9.1 Strategic Plan
3 broad goals (marketing objectives) to be achieved within the next 5 years
1) To establish the position of a market challenger
2) To maximise profits
3) To achieve customer satisfaction and loyalty that will in turn produce good
referrals
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9.2 Tactical Plan
3 specific goals that have been narrowed down relevant to the above
Goal Strategy Marketing Programmes (Product, Price, Promotion, Place)
As a new company, Superbaby will be carrying out a range of promotional activities
over an intensive period during the first 6 months with a budget of £200,000.
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9.2.1 Goal
To build up Superbaby Foods Limited image and the awareness of its SMC products
range.
9.2.1.1 Strategy
By increasing its brand presence in the baby milk products market through extensive
advertising and promotions.
9.2.1.2 Marketing Programmes
I. Promotion
The initial stages of promotional activities would mainly revolve around informing
customers of Superbaby’s existence, its SMC products range, and how customers can
purchase them through the following:
a) Advertising
Different forms of advertising will be implemented to enhance awareness about
Superbaby and it SMC products range. Superbaby will focus on low-cost advertising
methods. As such, while television and print media are essential, they would be used
strategically to minimise cost. On the other hand, cheaper forms of channels would be
exploited to gain the most from them. The main message that would be delivered
would be the slogan of Superbaby – “Always here for you!” – such that customers
would be able to feel a personal connection with the brand.
(Refer to Figure 4)
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b) Direct Marketing
Direct mail, brochures and magazines would be mailed to potential customers
informing them of Superbaby presence and its products. For instance, potential
customers would receive monthly mail letters to be notified of any new products or
promotions. The customer services team could then arrange for an appointment with
customers who express an interest in Superbaby products, with the intention of
encouraging them to make a purchase.
c) Public Relations/Publicity
Superbaby would carry out different activities to develop and manage its relationship
with the public so as to establish goodwill. Firstly, it would focus on the activities
revolving around the launch of its SMC products range. The activities encompass of
keeping track of editorials, building good relations with the media (e.g. editors and
journalists), executing launch events, designing posters and leaflets, preparing free
samples. Secondly, Superbaby would display its environmental consciousness
through the usage of recyclable packaging. Its environment tagline, “Secure a future
for your child”, aims to encourage parents to be more environmentally conscious.
Thirdly, Superbaby’s Hope Project would assist underprivileged children who cannot
afford education through charity donations from its sales profits. This would help
Superbaby to enhance its public relations and increase publicity.
d) Events
Attending trade shows and exhibitions would help to increase awareness of
Superbaby and its products. These events would also enable the sales team to interact
with potential customers and build relationships with them. Face-to-face promotion
would also be more personal and customised depending on the different types of
customers. An example of an upcoming exhibition would be The Baby Show 2012 in
London, which presents Superbaby an opportunity to promote itself.
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II. Place
Superbaby would carry out its promotional activities with related institutions through
partnerships. For instance, Superbaby would sell its products at several hospitals
across the nation so that it could reach out to parents specifically at the children’s
ward. Sales representatives could be present to carry out personal selling or forms of
direct marketing could be used to inform parents of the SMC products range and its
benefits. Also, sales promotion could take place through the distribution of products
samples to parents to try out and follow-up sales action could take place.
9.2.1.3 Implementation and performance evaluation
Success could be measured through the sales volume that the above promotional
activities bring about. However, it could be tricky to match the results to a specific
promotion strategy, as it would be difficult to calculate. Instead, the success of the
promotional activities which would translate to sales and profits would be seen as an
overall effort by the promotions team.
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9.2.2 Goal
To gain 10% profits from the sales of SMC products range within the first year.
9.2.2.1 Strategy
Superbaby will focus on maximising its sales to achieve its profits target. Therefore,
Superbaby will advertise its products to increase sales by allowing customers to
acknowledge and understand its products better.
9.2.2.2 Marketing Programmes
I. Product
In order to differentiate Superbaby’s products from its competitors, the SMC range
would be marketed based on its additional benefit of being ‘user-friendly, simple and
convenient to use’ which ties in with its brand values. This differentiation would
allow Superbaby’s products to stand out and attract customers based on its unique
selling point.
II. Place
Sales promotion, which would be discussed in the following section, would be carried
out at multiple locations including major supermarkets, which are often the top choice
for customers to purchase food products. Sample packs would be given out at
childcare centres too, so that children would be able to try and test them out.
III. Promotion
a) Personal Selling
Face-to-face selling will ensure that customers receive a high degree of personal
attention and personalised service as the sales message can be customised to meet the
requirements of different types of customers. Also, the two-way nature of the process
allows the customers services team to respond directly and promptly to any queries.
Furthermore, personal selling is an ideal way to deliver large amounts of specific or
complex product information. This is essential, as parents would want the best
products for their children and would be even more careful with food products for
babies and toddlers. By being able to explain clearly the products details and benefits,
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the sales team would also be able to demonstrate the product. This is especially so
since the SMC products range is a relatively raw idea, which works in a unique way.
Most importantly, face-to-face meetings with customers frequently can provide an
opportunity to build good customer relationships in the long run.
b) Sales Promotion
As Superbaby is a new company in the market and the SMC products range is a
relatively fresh concept, not all customers will be able to accept it immediately. Thus,
Superbaby would distribute free products samples to encourage customers to try and
eventually purchase the products. This would allow consumers to understand and
experience the benefits of the products.
9.2.2.3 Performance Evaluation
The company would monitor the amount of sales made weekly in response to the
marketing campaigns so as to decide if there is a need for changes to the marketing
programmes.
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9.2.3 Goal
To retain 50% of the customer base after a year.
9.2.3.1 Strategy
Superbaby would ensure quality products at affordable prices and also, maintain long-
term customer relationships and evaluate customer feedback.
9.2.3.2 Marketing Programmes
I. Product
Superbaby will focus on R&D to ensure its products will be delivered at a high
standard of quality to customers. It will also ensure that all its products comply with
the standards set by the UK Food Standards Agency (Food Standard Agency, 2012).
II. Price
A lean-production process will be used to minimise waste and maximise efficiency.
Also, Superbabay will adopt a just-in-time stock management system to reduce
warehouse costs and reduce manpower. All these cost-savings will be passed on to
customers, making sure that the prices of the products are at its lowest.
III. Promotion
a) Maintaining long-term relationships with customers
Staff members will be stationed at hospitals and nurseries to promote SMC products
and record the particulars and contact details of children and their parents
respectively. Birthday cards will also be sent out to these children on their birthdays.
Besides, parents will receive updates of any new product developments and advice on
child development. Free samples will also be mailed to parents.
b) To listen and improve on customer feedback
Customer feedback is highly important to the company. The company will set up a
comprehensive feedback channel through email, phone call and mail. Contact details
will be provided on the company website to facilitate customers in the feedback
process. The company will acknowledge all messages within 24 hours of receipt. A
solution will be offered in the same form of channel within five working days. There
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will also be a direct hotline to the company to answer any queries regarding the
company’s products or the company itself. The company will guarantee that every
phone call will be answered by a ‘real’ person who will be able to understand the
situation.
9.2.3.3 Performance Evaluation
The company will monitor the number of returning customers monthly through its
data base. Statistics will be calculated and shown through graphs. An overall trend
will also be analysed at the end of the year.
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10. Appendix
Figure 1.1 Standard box
Note: No. of cubes pictured is inaccurate – supposed to be a box of 4 x 7 cubes
Figure 1.2 Individual cubes wrapped with aluminium foil
Figure 1.3 An individual cube without packaging
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Figure 1.4 Travel pack – a bar of 3 x 4 cubes
Figure 1.5 Free samples – a bar of 2 cubes
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Figure 1.6 Individual cubes packaging
Figure 1.7 Bar packaging
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POLITICAL General Election of May 2010 became known as the ‘Mumsnet
election’, with all of the main parties competing for family vote.
Furthermore, the Conservatives party which is the current ruling
party also places great importance on young children and families.
ECONOMICAL Spending on children is often the last thing to be reduced even in
recessionary times and thus, the demand for children food products
is relatively price inelastic. The UK’s economy is expected to
grow 0.8% in 2012 and 2% in 2013 (Yahoo, 2011). This gives a
positive outlook for the children products industry.
SOCIAL The fertility rate in the UK has been on the rise (the average
fertility rate rose from 1.64 in 2001 to 1.97 by 2008 (BBC, 2012).
The percentage of working mothers in the UK has also been on the
rise. In 2011, 66.5% of mothers in the UK either work part-time or
full-time (The guardian, 2011). Furthermore, there has been an
increased demand for products that are easier to travel with, on top
of other sophisticated demands.
TECHNOLOGICAL There have been significant improvements in technology to ensure
safety standards of baby food products with various tests in place.
Hipp, for example (UK-based subsidiary of the world's largest
baby food manufacturer), carries out more than 260 tests on each
product to ensure that they meet all the legislations for baby foods
(Food Processing, 2011).
LEGAL The UK government has implemented stricter rules on the labeling
of all types of formula clarifying that follow-on formula should
only be used by infants from 6 months of age (an increase from the
current limit of 4 months). Only a small number of approved
health and nutrition claims will be allowed on formula milk (Food
standard agency, 2012).
ENVIRONMENTAL There is great environmental protection awareness in the UK. In
2010, the UK is ranked 14th
in the world based on environmental
performance index (global Sherpa, 2011). Also, the UK is
committed to reduce its greenhouse gas emissions by 12.5% from
1990 to 2008-2012 under the Kyoto protocol.
Figure 2.1 PESTLE Analysis
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STRENGHTS WEAKNESSES
Unique concept and product
innovation
Nutritious food product with a high
standard of quality assured to deliver
the best for its consumers
Convenient and easy to use
Relationship selling with a focus on
customer satisfaction
Excessive packaging
New brand and relatively new
product idea which might result in
slow customer acceptance
Brand and product infancy might
mean that wholesalers and other
intermediaries might be skeptical
about our products too
OPPORTUNITIES THREATS
Changing lifestyles with hectic and
busy schedules
Increasing proportion of career
mothers
Demand for convenience
Necessity product after all
Fills the gap in the market
Existing competition from many
well-established brands
Wide variety of baby milk products
that are already available in the
market
No patent acquisitions – low barriers
to entry
Figure 2.2 SWOT Analysis
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Summative Assignment 2
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Figure 3.1 Market share of main competitors (as of 2009)
Figure 3.2 Amount spent on marketing by main competitors (in 2008)
54%
40%
3%
2% 1%
Companies Market Share (%)
Aptamil + Cow & Gate
SMA Nutrition
Nurture
Hipp Organic
Others
5.8
3.3
1.1
0.056
0
1
2
3
4
5
6
7
Aptamil + Cow &
Gate
SMA Nutrition Nurture Hipp Organic
Million£
Amount Spent on Marketing by Main
Competitors
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Figure 3.3 Price of milk from competitor brands (Milk for 6+ Months)
Figure 3.4 Price of milk from competitor brands (Milk for 1-3 Years)
£1.01
£0.88
£0.75
£0.89
£1.01
£0.00
£0.20
£0.40
£0.60
£0.80
£1.00
£1.20
Aptamil Follow
on Milk
Cow & Gate
Follow on Milk
Hipp Organic
Follow on Milk
SMA Follow on
Milk
Superbaby 6+
Months Milk
£
Price of Milk for 6+ Months(Per 100g)
0.94
0.87 0.87
0.78
1.19
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Aptamil Growing
Up Milk
Cow & Gate
Growing Up
Milk
Hipp Organic
Growing Up
Milk
SMA Toddler
Milk
Superbaby 1-3
Year Milk
£
Price of Milk for 1-3 Years (Per 100g)
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Advertising channels Benefits / Reasons Specific details of plan
Television Highest degree of
visual and audio
High impact
Creative and flexible
Prestige and status
To be shown between
drama serials / variety or
reality shows that have high
female audience viewings
Print Media Effective at
delivering message
through words and
images
Longevity
Mainly through magazines
Narrow targeting by
focusing on women / parent
titles
An example would be
Mother and Baby, the UK’s
Number 1 Pregnancy and
Baby Magazine
Internet New, exciting and
fast growing medium
which would be ideal
for modern parents
Low cost
Able to form two-
way communications
Through different forms of
social media (e.g.
Facebook, Twitter and
Youtube) which could reach
a large mass of audience
almost instantly
Online forums specially for
mothers, examples:
http://www.askamum.co.uk/
http://www.netmums.com/
Figure 4 Advertising methods
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Stock-Cube-MF-025-.html (Accessed 7 April 2012).
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(Accessed: 29 March 2012).
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31. INU1105: Introduction to Marketing
Summative Assignment 2
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