General Principles of Intellectual Property: Concepts of Intellectual Proper...
Edited jay marketing plan yollies.edited
1.
2.
3. 1.1 Executive Summary It has been summarized that the company Kerry Foods has a strong
position in the market of UK, and there has been an opportunity for growth and development in
the food and beverage sector operating in UK. It also states that there would be differentiation in
the product in order to increase the market share and the sales performance of Kerry Foods. It
also contributes in developing innovative products so that the brand can be established in a
proper way. It contributes to the understanding of the purchasing power as well the buying
behavior of the customers as the changing demands of the customers interpret the decisions
made on the marketing of this product.
4. Table of Contents
Table of Contents............................................................................................................................4
....................................................................................................................................................... 5
1.2 Background...............................................................................................................................5
....................................................................................................................................................... 5
1.3 Situational Analysis (Marketing Audit) ...................................................................................5
1.4 ‘Strategic Fit’ an integration of internal and external strategic analysis................................ 11
1.6 Principle Assumptions underlying the plan...........................................................................13
1.7 SMART Objectives of Kerry..................................................................................................13
2.0 Marketing mix for the Company Kerry..................................................................................15
2.1 Implementation and Controls (Budgets) ................................................................................16
2.2 Conclusion and Recommendation.......................................................................................... 16
2.3 References...............................................................................................................................17
5. 1.2 Background
Kerry Foods is one of the leading brands in the food industry market operating in the UK. The
food and beverage industry have a good market in the UK and the business is quite profitable.
With the change in the market dynamics, there have been rapid challenges and changes are
going to be taken place for the company Kerry Foods to deal with these challenges. It is
important that the management need to set up and establish a comprehensive marketing plan for
the next three years for Kerry foods so that the launching of the new brand Yollies should
penetrate and capture a strong position in the market of UK in order to enhance the reputation
and get a brand recognition within the market.
The study is focused on the establishment of a robust marketing plan so that the brand of Kerry
Foods Yoliies should get that position and hold by which they can get a competitive edge in the
market of UK. The study is also reflected in the internal as well as the external market analysis
which can be useful in understanding the dynamic business environment and how the brand gets
operated in this market with the other competitors present there as well. The scope of this report
is bright and evaluates the understanding of the theories for the analysis of the market.
1.3 Situational Analysis (Marketing Audit)
Macro Environment Model (PEST ANALYSIS)
Political
6. Kerry foods will need to consider the sugar tax which could occur as the World Health
Organisation demand a 20% tax on sugary drinks to fight obesity (Donnelly, 2016). Obesity is
responsible for more than 30,000 deaths each year in the UK (Nationalobesityforum.org, 2016)
if a tax of at least 20% is introduced it could reduce the prevalence of obesity in the UK by
around 180,000 people (Bosely, 2015). Childhood obesity is a crisis level in many countries
which is why Kerry foods need to consider sugar levels as children are their main target market.
In order to tackle sugar intake Kerry food can use alternative ingredients like honey which can
quell health concerns instead of using sugar.
Economic
The British economy took a while to get through the financial crisis, but has grown in every
quarter since the start of 2013, recently it grew by 0.5% compared with previous months
(Jackson, 1975). Income of individuals is also increasing and as consumers become wealthier
they place great value on health and consequently demand more health-related products (BIS,
2010). This helps organisations like Kerry Foods who focus on new product developments, as
the yoghurt drink and chilled deserts are experiencing growth. Market analysts believe that this
trend is set to continue with the food and drink industry set for growth between 3-4% (Stones,
2015). The increase in the economy will have a positive effect on consumer spending which can
help sales performance of Yollies, as a result this can be useful in improving the economic. The
labour cost in UK is below average (BBC, 2013) so the labour has been productive enough to
manufacture Yollies products at a low cost. Therefor the operational cost also gets down which
can be useful for increasing the economy of UK and the brand Yollies started to get developed
in this business environment
Social-Cultural Factor-
With the high development and growth of the food and beverage market in the UK there is an
opportunity for a rapid change in the dynamics of the market which proves to be useful for
changing the taste and the preferences of the customers. The people of UK are quite attractive
and they are very fun loving so the societal pressure is not so much on them as a result the
attitude and the behavior of the people is very good so the social factor is responsible for the
buying decisions of the customers as well the purchasing power of the customers have been
7. increasing day by day as the Yollies brand mainly target the kids but the parents are aware of the
society as well the culture of UK which is making them responsible for purchasing the yoghurt
on a stick which the kids love to eat.
Technological-
The Company should have the aim of developing and producing the products which should be
unique and innovative so that the customers are attracted towards the particular product as in
this case study it is a special health conscious and nutritional yoghurt wrapped on a stick which
provides the enjoyment to the kids for the innovation in the packaging. The technological factor
is also very high for making the products be developed innovative and attractive for the
customers for the brand to get recognized in this competitive business environment.
Competitive Environment
The overall paper is demonstrating the new product launching of the Kerry’s Food Product. This
is one of the renowned snacks brand of Ireland and it has huge prospect in United Kingdom
also. Latest product of the respective company is the Yoghurt on a stick. According to the
management of the company, this product has the strength to attract large numbers of children.
Management of the Company must have to judge the market environment so that they can
establish a good hold in the market.
Customers: Prime target of this product is the school going children. Children can have this
Yoghurt at their lunch time. According to the management of the respective organization
Yoghurt is the ideal healthy food which parents can offer their children at the time of lunch. At
this present moment management of Kerry has tied up with famous retail organization like
ASDA and NISA, they want to keep the Yollies in their retail hubs.
Intermediaries: After having the details of Kerry it can be said that the Company has its own
manufacturing plants and units where they are doing innovation with their products. After the
manufacturing of the products those are sent to respective retailers. According to the
management of the company, famous and popular retail chains of Ireland and UK are keeping
Kerry’s product.
Suppliers: For manufacturing the Yollies management must have to purchase the raw materials.
For manufacturing these types of materials management don’t have to invest huge amount of
8. money for the manufacturing purpose. Some dedicated suppliers provide yoghurt and sticks to
the manufacturing sectors.
Existing and Potential Competitors: Competitors are always challenging the business of the
Kerry. In different phases of product launching the company got different types of challenges.
According to the management of the company, Frubes is giving tough challenge to the latest
innovation Yollies. On the other hand some British organizations like Greencore Group Plc has
been trying to restrict the growth of the business (Jackson, 1975).
Employees: The company has 140 branches in all over the world and in these branches around
24000 employees are working. Management said they have the skills and talent to enhance the
potential value of the business process.
Media: The management of the Kerry has used specific advertisement tools as media for
promoting the new brand Yollies. From last summer management has been showcasing the
advertisement of the product through television.
Administrators and Interest groups: April Redmond is the chief marketing officer of the
Kerry has the duty to promote the product in the market. The company has specific investors
who invest their money for executing the project. By focusing the market growth and demand
regarding Yollies, it can be said that interest groups can get huge benefits through this process.
Competitive Environment Model (PORTERS GENERIC MODEL)
For the competitive analysis of the company in this business environment the management of
Kerry, Foods has applied the Porters generic strategy which is useful for making a
comprehensive analysis of the market as well the competitors operating in the food and
beverage industry in the UK. There are three main components of this model that includes the
cost leadership, differentiation and focus.
Cost Leadership- This strategy is increasing profit by making a considerable decrease in the
prices of the products taking place while charge as per the pricing standards of the food
industry. It is increasing in the market share by reducing the prices of the products so that the
company can penetrate into the market with the new brand. According to this case, the pricing
for the product is not reasonable, and they do not reduce the price of the products to achieve a
9. competitive position in the UK market.
Differentiation- The differentiation strategy is making the products differentiated or unique from
the competitors present in the market. The differentiation can takes place in the development of
the product, new development in the process as well with the delivery of the products to the
customers. According to this case scenario Kerry Foods would like to develop innovation
through new research and continuous improvement in the quality of the products as well with
the taste of the yoghurt so that the customers should get innovation in the packaging as well the
change in the flavor makes the product unique from the other competitors operating in the UK
market.
Focus- The focus for Kerry Foods for this product to be developed and enhance its brand
Yollies by making differentiation in this product with changing flavors and making the yoghurt
nutritional and its innovative packaging and design made it simply different from the same
product developed by the other competitors in the market.
Competitor Analysis
Identify competitors- the competitors of Kerry Foods could be the other food and beverage
companies operating in the market of UK. The competitors can be analyzed by identifying the
presence of the competitors in the market (Westwood, 2011). There are three main competitors
of Kerry Foods which are the Associated British Foods Plc who have introduced sliced bread in
UK for the first time and delivered to the store like Primark. The next one is the Westbury
Dairies Limited who is the manufacturer as well the supplier of skimmed milk and other dairy
products in UK. The other is the Arla Foods Plc who are the manufacturers of fresh yoghurt and
cream.
Understand Competitors Objectives- The main objectives of the competitors is to make
innovation in the dairy products so that there has been rise in the sales performance which is
helpful in generating revenue. The competitors should deliver quality and innovative products to
the customers so as to develop new products. The competitors are trying to increase the market
10. share and would like to develop healthier and tasty products so that the yoghurt could be a
useful snack for the customers to take it in their lunchboxes often. The other objective is to
make innovation in the marketing plan for providing recognition of the brand Yollies.
Identify Competitors Strategies
The competitor’s strategy is to develop such a product that is unique and acceptable in this UK
market. The other strategy is to deliver the quality products with no compromise at the prices so
that customers should get value for their money they are spending. The competitors should
spend the huge amount of money in continuous improving the quality and the process through
which the products developed should be innovative.
Assessing Competitor’s strengths and weaknesses - The strength of Associated British Foods
is that they have huge employee strength and the weakness is that the differentiation in their
product is not good. The strength and weakness of Westbury are also the same as the Associated
British Foods.
Estimating Competitors Reactions- With the modest growth in the food industry of UK, there
have been aggressive reactions taking place from the companies as they are competing with
each other fiercely for maintaining a strong position in the market as well for making the food
business sustainable for the benefit.
Selecting Competitors to attack and those to avoid- The Company like Kerry Foods need to
attack the competitor like Westbury as this company is developing and supplying the same
product yoghurt in the UK market so the competition is fierce with Westbury rather than the
Associated British Foods Plc who does not have the product portfolio of dairy products in their
business, so the company should avoid the Associated British Foods Plc.
Internal Environment (PORTER VALUE CHAIN)
The analysis of the internal environment is dependent on the Porter value chain model which is
useful for the determination of the value chain activities to be carried out in delivering value for
11. the products they deliver to the customers (Warner, 2010). According to Michael Porter (1985),
the primary activities are needed to be considered so that the internal environment can be
analyzed properly. The primary activities are given below
Inbound Logistics- According to the case Kerry Foods should maintain a strong relationship
with the local suppliers so that they can deliver the products easily and timely to the different
hypermarkets and supermarkets of the UK from where the customers can get easy access to the
products. There would be storage and the receiving facilities provided by Kerry Foods.
Operations- The Company should get the raw materials and manufactures in the factories and
from there it has been supplied to the stores and in this way the operations take place.
Outbound Logistics- According to the case the company Kerry Foods need to collect the raw
materials, and it is then transferred to the factories and from there it has been sent to the
warehouse where it has been stored and then it has been sent to the suppliers and from there to
the distributors. After that, the distributors distribute it to the retailers and then the retailers
transfer the products to the respective food stores of UK.
Marketing and Sales- The marketing and sales have been done with the promotion of the
product in a proper way.
Service- The delivery service of the product should be good for Kerry Foods, and the after sales
service should be brilliant in improving the internal operations.
1.4 ‘Strategic Fit’ an integration of internal and external strategic analysis
The best strategic fit for the company could be understood by the application of the SWOT
analysis which is the micro-environmental analysis of the company (Luther, 2001). Depending
on the internal as well the external strategic analysis of the company it is important that the
company should develop and grow the innovative products like Yoghurt as the dairy products
12. have a strong market growth in the UK. The delivery of quality and differentiated products
helps in attracting the customers enhancing the sales performance of Kerry Foods.
1.5 SWOT Analysis of respective Product
Strength Yollies is one of the recent and
innovative product.
It is innovative by its shape and
contents. A cold Yoghurt stays on a
stick (Mintel June 2015).
It is made by considering the health
conditions of Kids. It is full of Vitamin
D and Calcium.
Most of the children like to eat sugar
snack in their lunch time.
Market potential is high.
Weakness Market share is one of the major
problems for this Company.
Another major diary firms are trying to
penetrate in the market which can
challenge the aspects of product.
Opportunities • According to the NPD report in coming
years growth and demand of Yollies
will be enhanced.
• It can be assumed that in near future
sales of the Yollies will be increased.
• According to the Mintel Report, total
revenue of Kerry has been increased by
1.48 GBP after the launching of
Yollies.
Threat Government has initiated meal system
for the kids. On the occasion sales of
13. the Yollies can be reduced.
Mintel report states that sales can be
dropped due to government decisions.
1.6 Principle Assumptions underlying the plan
The overall paper is demonstrating the marketing plan of Kerry Company regarding their latest
innovation Yollies. Yollies are specially made for the kids those who want Yoghurt in their
lunchbox. Various approaches have been followed for doing the marketing process. Situational
analysis has been done for having sound concept and knowledge over the market. Potential of
the market regarding the market has been gathered from different Mintel Sources. Assumptions
of the market has been stated below,
i. Market structure of UK and Ireland is quiet good enough for the implementing this new
product Yollies.
ii. Mintel Report states that market growth regarding this matter is good.
iii. Market is favorable for the Kerry Group.
iv. The company could be able to enhance their market share through this way.
According to Mintel report growth of sugar snacks can be restricted by recent government
policies and systems.
1.7 SMART Objectives of Kerry
At this moment management of Kerry wants to make a marketing plan for the promotion and
implementation of the Yollies. For doing this management of the company must have to set up
SMART objectives. Objectives have been specified below,
1) To convince more numbers of supermarkets so that they can keep their new and
innovative product Yollies.
2) To attract large numbers of consumers through different advertising tools and
techniques.
14. 3) To enhance the market share by investing more amount of money in this particular
sector.
4) To maintain the product value so that sustainability issues can be maintained.
1.8 Target Market
Kerry is mainly based in Ireland and different parts of United Kingdom. The company is
popular for their chilled food products. At this present moment the company wants to promote
their new innovative product Yollies. Yollies is presented by putting freeze yoghurt on a stick.
Already the promotion has been showcased through television and different other media. Prime
target of this product is the school going kids. It has been observed through analysis that kids of
age between 6 to 7 mainly like these types of foods (Mintel June 2015). Parents of these kids are
highly concerned about the lunch time food for their kids. After getting the views of 2015
Mintel Report, ninety percent parents want to provide sweet snacks to their children. For this
reason it could be said that Yollies can attract them for buying. Marketing team of the respective
organization also need to focus on the retail sectors from where these products could be sold.
ASDA and NISA has already agreed to keep this innovative snack product. Mintel report also
states that this market has the potential and growth. For this reason management must have to
focus on the other retail corporations along with existing stores.
1.9 Positioning Statement
After launching any kind of product or service it is the utmost duty of the management of any
organization to develop the product so that it can get a good brand image among the consumers.
The paper is mainly showcasing the organization Kerry and their latest innovation in the market
Yollies. For enhancing the brand image of the respective company management of the company
must have to position their product in the market so that a huge craze can be created among the
consumers. Prime consumers of Yollies are the kids who love to eat sugar snacks in their lunch
break. Various ways have been taken by the management to promote their product in the
market. Some of the steps have been denoted below,
First of all promotion of the Yollies are promoted through television and different media.
Through this way people can be familiar with the services and aspects of the product.
15. On the other hand management of the Kerry wants to put a strong hold in the market by
its healthier quotients. Yoghurts are full of Vitamin D and Calcium which is important
for protecting the health of kids.
By showcasing above mentioned healthy tips among parents, management is trying to
convince them so that they buy tasty Yollies for their child.
Management also could be promote this product by negotiating with retail stores and
supermarkets.
Through the above mentioned process Kerry can make position for Yollies in the market.
2.0 Marketing mix for the Company Kerry
Kerry has the fame and popularity for its chilled foods. At this present moment the company
wants to promote their latest brand Yollies. Marketing Mix is the process to judge the value of
the business and through understanding this quotient management of Kerry could be able to
enhance the fruitfulness of the business.
Product: The company has launched their new brand Yollies where consumers are offered
Yoghurt on a stick. This is the concept which hasn’t been launched by any organization before.
This is first time where kids can have the flavor of yoghurt as ice-cream. The product is full
with healthy features like Vitamin D and calcium. According to the management, Yollies
contains 65mg calcium and .4mg Vitamin D (Mintel May 2015).
Place: Prime concern of the management is to promote the Yollies in Ireland and various parts
of United Kingdom. Major supermarkets are demanding this product in their stock. In different
supermarkets like ASDA, NISA, Yollies of Kerry can be found.
Price: Management of the company stated that they have set reasonable price for the Yollies.
Mintel report showcases that in the retail stores of Sainsbury Yollies are sold in 2GBP for
100mg.
Promotion: Promotion is the essential segment for any kind of business organization.
Management of the Kerry promotes their services through the television and other different
media. Parents of kids are also influenced by showing the healthy aspects of this new and
innovative product Yollies.
16. 2.1 Implementation and Controls (Budgets)
Year Items
Estimated Costs
(£)
2016
Advertisement in
TV 675
2017
Media
Advertisement 467
2018
Digital
Advertisement 1287
2.2 Conclusion and Recommendation
The overall paper is showcasing the marketing and promotional activities made by the Kerry
Food production company regarding their latest innovation Yollies. Different types of analyses
have been made for doing such kind of activities. It has been observed through analysis that
Yollies are very popular among the kids. They prefer this type of snack product in their lunch
break. After getting the Mintel Data, it can be said that market is very dynamic, for this reason
management of the organizations must have to be innovative enough so that they can sustain in
the market place. Kerry has launched the chilled product Yollies and now the management
wants to know the market circumstances. For understanding the overall business condition
situational analysis has been made. Through this situational analysis market audit and
competitors analysis can be done (Keynote 2015). Organizational product value has been judged
17. by the marketing mix. STP analysis also has been done for understanding the current market
condition regarding the new innovation of Kerry. Through these approaches an appropriate
pathway of making any decision can be made. After having the Mintel report 2015, government
of UK has decided to provide free lunch to the kids. On that occasion concept of Yollies can get
threat in the market.
2.3 References
Keynote 2015 ‘Milk and Dairy Products
Mintel May 2015 – Kids Snacking
Mintel June 2015 – Ice-cream and desserts
Spary , S. (2015)’ Yoghurt on a stick and a gaming robot? It's all about FMCG innovation’
Marketing 26 October 2015
www.bravebonesclub.com
www.kerryfoods.com
www.Talking Retail.com - 11 November 2015
Brooksbank, R. (1991). Essential Characteristics for an Effective Marketing Plan. Marketing
Intelligence & Planning, 9(7), pp.17-20.
Comish, N. (1947). The Model Stock Plan in Small Stores. Journal of Marketing, 11(4), p.402.
Jackson, A. (1975). Developing a sales plan. Industrial Marketing Management, 4(4), pp.217-
221.
Jensen, D. (2013). Your Personal Marketing Plan. Science.
Simkin, L. (2000). Marketing is marketing – maybe!. Marketing Intelligence & Planning, 18(3),
pp.154-158.
18. Wheeler, W. (1943). The Victory Merchandise Bond Plan. Journal of Marketing, 8(1), p.58.