Marketing Plan

    Marketing Plan

     

    eam Company Name: Earth Sack

    II. Situation Analysis

    A. The Internal Environment

    Review of marketing goals and objectives

    Goal:

    – Pollution Free Shopping

    Objectives:

    – Replace plastic and paper bags with our Earth Sacks

    – Be the pioneer supplier of eco-friendly shopping bags to supermarkets

    – Promote a culture of green shopping

    Review of current marketing strategy and performance

    – New company trying to prove itself to supermarkets

    – Need to take an aggressive approach to enter the market

    – In need of sponsorship from a green organization to boost image

    – Cost of producing products are expensive at first (since economies of scale have not yet been achieved)

    Review of current and anticipated organizational resources

    – Outsource our production to another company

    – We will have 2 engineers who will work with the outsourced production

    – We will have 10 people in the office for marketing / operations / finance

    – Funding from venture capital needed

    Review of current and anticipated cultural and structural issues

    – Company promotes a mindset of thinking in the long-term because caring for the environment needs a long-term perspective

    – Company culture: “changing for the better” and “employees are helping the environment by doing their work”

    B. The Customer Environment

    Who are the firm’s current and potential customers?

    – Direct Customer: Supermarket (Whole Foods will be our first target in the early stages)

    – Indirect Customer: Shoppers who care about the environment

    – Instead of Whole Foods lowering / raising their prices, we will keep the current prices but using the new Earth Sack

    – How to Win the Public: Get influencers to show our product is effective; Make videos showing that paper and plastic bags are bad; Drive awareness that our supermarkets’ bags have changed; Spread through social media how our Earth Sacks are helping the environment

    What do customers do with the firm’s products?

    – Whole Foods: will use our bags instead of their current paper ones; we will put eco-friendly logos on the bags to make our brand visible

    – Shoppers – use our bags when buying from Whole Foods; the more that shoppers shop in Whole Foods, the more Whole Foods will order from us

    – Other supermarkets will also see the incentive to switch to our bags from a marketing and environmental perspective

    Where do customers purchase the firm’s product

    – Supermarkets will get their Earth Sacks from us through delivery. (Business to business sale)

    – Shoppers will get their Earth Sacks when shopping from Whole Foods.

    When do customers purchase the firm’s products?

    – Our products will be used more during “shopping seasons” like Christmas and Thanksgiving

    – Events where our products can be highlighted: Special eco-friendly festivals showcasing our product through Whole Foods ; World Environment Day – June 5th

    Why (and how) do customers select the firm’s products?

    – Whole Foods needs to strengthen their brand image of “green” and “environmentally-friendly”, and our product is just the solution

    – Shoppers want to protect the environment, and it will not cost them more money for their groceries

    – Other supermarkets would want to stay competitive by following the new trend.

    Why do potential customers not purchase the firm’s products?

    – Because Whole Foods is more expensive than regular groceries

    – A good amount of Whole Foods packaging is not really eco-friendly (like plastic for salads, utensils made of plastic etc.)

    – The technology is not very widespread or known yet

    C. The External Environment

    Competition

    – Paper bag companies: Durobag

    – Plastic bag companies: Multipak [there are still a lot of other small / medium size firms producing plastic bags]

    Economic Growth and Stability

    – Stable economy in the USA

    – Trends on grocery shopping like the desire for eco-friendly products (people willing to spend more on green products)

    Political Trends

    – Government’s plans to lessen support for the Environmental Protection Agency

    – Government’s support for the oil / petroleum industry – petroleum is used to make plastics

    Legal and Regulatory Issues

    – Regulations on paper bags since paper bags are not exactly eco-friendly

    – Banning of plastic bags across all US states (there are bans / regulations in other countries / some US states)

    Technological Advancements

    – New research revealing that paper bags are not exactly eco-friendly

    – The invention of plastic alternatives made of flour, algae, cassava

    Sociocultural Trends

    – Green shoppers are becoming a valuable customer group

    – Sustainability is a priority for millenials, and they are conscious of how people perceive their brand choices.

    III. SWOT Analysis

    A. Strengths

    Strength 1: The company has the technology to mass produce Eco Sack

    Strength 2: Eco Sack will be the first company to supply supermarkets with green shopping bags

    Strength 3: Eco Sack’s pro-environment image is definitely positive and appealing

    B. Weaknesses

    Weakness 1: Our company is small and new, which makes it challenging to gain the trust of customers and the public

    Weakness 2: Our bags are more expensive than traditional plastic and paper bags, thus we still need time to improve the technology and cut down costs

    Weakness 3: Given that our technology is new, there is a possibility that all its negative effects have not yet been discovered

    C. Opportunities

    Opportunity 1: Getting sponsorships from environmentally friendly associations who will promote our products to the public

    Opportunity 2: Opportunity to sell our products to department stores

    Opportunity 3: Possibility of eventually selling other products such as eco-friendly utensils

    D. Threats

    Threat 1: Our technology may be copied, stolen or leaked to competitors

    Threat 2: Scandals that affect our supermarket customers will affect us too

    Threat 3: Some politicians may not support pro-environment laws

    E. The SWOT Matrix

    Strengths:

    •Technology for Mass Production

    •First to Sell to Supermarkets

    •Eco-friendly image

    Opportunities:

    •Support from Environmental Organizations

    •Expanding Target Market

    •Expanding Product Line

    Weaknesses:

    •Market’s Trust in our Brand

    •High Expenses in Initial Production

    •Undiscovered Negative Effects of the Product

    Threats:

    •Copying / Stealing of our Technology

    •Scandals Affecting our Customers

    •Anti-environment Politicians

    F. Developing Competitive Advantages

    – Product Leadership: using technology to create strong yet biodegradable bags

    – Customer Intimacy: instilling the culture of caring for the environment in our customers

    G. Developing a Strategic Focus

    – Our overall strategic focus would be to aggressively push this product / concept

    – Our differentiator: We provide customers with a convenient product that does not destroy the environment (no trade-off in helping the environment)

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