Marketing Proposal Essays

Marketing Proposal Essays Marketing Proposal Essay Marketing Proposal Essay Our report analyzes the issues incorporated in NYF and recommend way to improve the situation. After evaluating the needs and wants of our existing and potential consumers, we decided to introduce a new product, which is Potatomade Noodle. Also, this paper will discuss the SWOT analysis performed, and evaluating what are the opportunities and strengths as opposed to our weaknesses and threats. Also, we have come out with an initial plan to market our new product. Through (1) Branding and Positioning; (2) Pricing; (3) Marketing channel; and (4) Promotion, we will bring the product toward success. ? 3? Introduction: the Company New York Fries (NYF) is a privately owned, Canadian franchise founded by Jay Gouldand his brother Hal in 1983. It specializes in fresh-cut fries and hot dogs. The firm’s concept is simple but their standards are high. New York Fries start with hand-cut fresh potatoes on site everyday and cook them in non-hydrogenated and Trans-fat free sunflower oil, which makes their fries low in saturated fat and cholesterol free. So their company mission is very simple: to serve customers with â€Å"REAL. FRESH. FRIES†. They are customer-centered policy that put customers as the essential consideration criteria to their products. Currently, there are over 201 stores across the world, but only two in Hong Kong. Agreement requires franchisee to open a minimum of 10 locations in Hong Kong and Macau within 5 years. New Product Idea There are several issues with NYF that make it less popular as opposed to other fast food restaurant in Hong Kong. NYF sales are significant lower than other competitors. The lack of variety and popularity of NYF (HK) are the main concerns of our marketing strategy group. As we found in a survey conducted by our group. There are 70% of participants who did not know anything about New York Fries. Among those who knew the existence of NYF, there are more than 50% of them thought NYF offers limited choice of food. 1 Therefore, we have decided to enhance the variety of food and introduce a whole new concept of fast food, the Potato-made-noodle. Besides providing varieties to the 1? Refer? to? appendix? I? ? 4? consumers, we choose potato made noodle because potatoes are more filling and will be able to satisfy consumers’ hunger, especially for those who need to be full during their long working day. Also, potatoes are generally healthy as well. Our product is a freshly potato made noodle, either western or Asian style. These noodles will be freshly made by a selected supplier and delivered to our stores promptly everyday. They will be served in different flavors like chess baked noodle, oriental style soup noodle (spicy/nonspicy/chicken flavored, beef flavored) and other flavors. Besides adding to the variety of foods sold in NYF, this new product also solves the issue of health concern of their customers. Customer Needs and Wants For our targeted customers, they have a similar desire for a benefit that is fast-served yet healthy food. Thus, we serve these customers with a new concept of fast food: highquality, convenient, delicacy, fashion and prestige. Although it seems that the new concept is irrelevant to NYF’s current business line, it is in fact consistent with the firm’s current mission, which is to actively change the business in order to satisfy their customers’ needs and wants. In addition, modern consumers are actively seeking for a highly fashionable lifestyle, which might also affect their eating habits. Also, we believe that potato made noodle is more filling, and will able to satisfy our consumers’ hunger during break time. In contrast to wants, products will only be successfully introduced if consumers are able to afford, thereby converting wants to demands. We believe our targeted customers, who are ? 5? the white-collar working class, have the purchasing power to afford a bowl of potato noodle served by us. Targeted Market Segment In Hong Kong, we are targeting Asian who has tradition of eating delicious noodles. Our target customer group is aged from 20 to 45 years old, with a monthly income of $10,000 to $50,000. They are mainly the white-collars, who are in the working or middle class. They are status-oriented achievers and always demand for fashionable way of enjoying traditional foods. We target to serve our noodles as a quick lunch during the customers’ limited break-time. We believe the noodles will be beneficial to those who seek for high quality, healthy and fashionable fast food. Our target segment is relatively small but well defined at this stage in order to achieve greater market share at the introduction of our potato noodle. SWOT Analysis Strengths Since NYF has been specializing in potatoes for more than 20 years, this provides us sufficient resources and abilities to produce potato products. Also, we have a strong and effective supply network in both North America and Hong Kong, which enables us to obtain cheap potatoes supply. These ensure that we are able to produce superior potatoes with current skills and knowledge. ? 6? It has a long established image of best potato product’s providers, which is mainly based on our long-term outstanding brand-service to the customers. For those who knew about NYF, they thought NYF provides the best fries (potatoes), compared to their competitors, McDonalds and KFC. Due to the experience obtained in past years, the production technology is complete, which means that NYF is able to provide variety of sauce flavors. Weaknesses Low variety of food because of their specialization. This situation may cause failure in attracting more customers who may have varieties of tastes on food. Limited consumer groups since the majority of our consumers are young adults, who are below 40 years old. Our service seems to be inaccessible because there are only two stores in Hong Kong nowadays. The relative number of branches of NYF in Hong Kong is too small and people may find it hard to find our location. However, we would look into the further business expansion upon the reform of NYF. Our current line of food maybe relatively unhealthy, because we usually provide fried food, which is always the pronoun of rubbish food and it doesn’t fit the modern concept of â€Å"good food†. NYF is yet to get popular in Hong Kong. Publicity and advertisement are obviously not enough due to limited investment on advertising. ? 7? Opportunities Increasing emphasis on healthy food will bring us a new opportunity because nowadays people prefer to eat healthier food with the illusion that the so-called healthy food can always make them healthy. We think that providing modern healthy food can both increase the turnover of our company and the image of our own brand. At the same time, we are aiming to change the stereotyped perception of consumers toward fast food. There are more people emphasizing on efficiency these days. Therefore, they want faster-serving foods. This potato noodle will be served like a fast food. Thus, this will serve the benefit seek by customers. According to the our daily observing, people nowadays prefer new fast food concept, they are totally bored with traditional fast food like fries, burgers etc. Our new concept of fast food may refresh their discerning taste. Potato is one of agriculture products that have an elastic demand. Therefore, supplier cannot exploit the company by increasing their price, as supply of agriculture product always exceeds the demand in the economy. Threats There are too many competitors in Hong Kong, and we always have to face substitute’s threat. For example, the other fast food provider, noodle stalls and etc. ? 8? It will be hard to make the public to change their stereotyped perception toward fast food, which is â€Å"fast food equals junk food and potato equals fats†. If this is not well encountered, we could not deeply develop this new market. In the process of developing our new product, we also have to face the dietary of modern world people: they always reject fast food. And this will force us to think of different efficient ways to change this kind of dietary. Branding and Positioning NYF has got reputable brand equity. Since its establishment back in 1983, NYF has been established as a fresh potato fries provider, offering exceptional fresh and best fries in town. We would be using the manufacturer’s brand, NYF for our new product. We are introducing a new product to the existing brand, the potato noodle. Thus, it would be a brand extension for NYF. This would save a little cost as a result of slightly less advertising cost. It would take less time than normal new brand development for consumers to accept our product. This is because existing loyal consumers are more likely to accept and try out our new product. Besides, the brand extension is also consistent with the current brand’s image, which is providing fresh potato-related products to consumer. In relation to managing the product life cycle, we believe it would have a relative longer life than normal fast food, as it is less likely to trigger any health issue as compared to other fast food. This can be supported by the long history of noodles restaurant in Hong ? 9? Kong, which are still earning significantly large profit at present. In addition, NYF marketing team will be innovative in future to invent more flavours to the potato noodle in order to extend its maturity stage of product life cycle. Our positioning statement would be â€Å"To customers who need fast, healthy and delicious food, we cook the best potato noodles†. Our positioning strategy will focus on the following two differentiations: Product Differentiation In contrast to the prevailing unhealthy, fried fast food, we developed the new fast food concept: the potato noodles. We choose the best potatoes and specialize in delicious, healthy potato-made noodle, which is different from McDonald and KFCs fried chicken. Potato noodles will fulfill the eating habit of Asian people and those who like to eat potato Image Differentiation New York Fries will continue to use yellow sunflower as their symbol, which indicated that the food is made with sunflower oil, which is healthy. Yellow sunflower also conveys the information of brightness, happiness, and loveliness to pleasure our customers. Overall Positioning Our product is offering the â€Å"more for same†. We are offering the more added value noodle at market price for other noodles. NYF will be able to have slightly more advantages in cost control as we have been in this business for years. We are able to offer a distinctive quality of noodle as compared to our competitors, other noodle providing restaurants. ? 10? Pricing The market our company operates in is a monopolistic competition market where there are many buyers and sellers trading with differentiated offers. Product differentiations are particularly essential in order to achieve high turnover. We are setting our price at market price so that consumers would purchase our products rather than the competitors. Market penetration pricing is a suitable pricing strategy for our new product. This is because consumers are not very aware of our company. In order to attract a large number of buyers, it is better for us to set a low price to gain a larger market share quickly. Once the consumers are confident and more loyal to our product, we can then evaluate and raise the price to increase our profit margin in future. Initially, we would propose that the price for a bowl of standard potato-noodle would be charged at around HKD$25-HKD$35. Promotion This promotional strategy will last for 3 years as there are three stages that we want to achieve from time to time. Firstly, in the Stage–Brand Recognition: advertising and sale promotion and buzz marketing are crucial to enhance people’s recognition toward NYF. Advertising: in lifestyle and fashion magazine and on buses: We want to advertise in some local magazine, for instance, Readers’ Digest and Milk. Since the above magazines are well circulated in Hong Kong, the readers are mostly working classes or even adolescent who are our targeted customers. Compared to ? 11? advertising in some TV channels, advertising in magazines is a cheaper method to approach our potential customers. It can also lower our promotional cost. Also we need to increase the exposure of our brand name. Advertising in outlook of buses is one of our promotional means. It is not only inexpensive, but it also spreads our messages to a huge audience. Online banners on strategic websites: Nowadays, internet is a bridge to communication. People use it as an information channel to get the first-hand information, especially in some forums, for examples, Uwants and Discuss. It is hoped that the online banners on these two forums could get people’s attention. Sale promotion and buzz marketing Our company will offer some sample tasting of potato noodles outside our branches for the first week of selling. Participates are required to fill in the evaluation form after tasting for further improvement. The cost of sample tasting is low. It could also attract more potential customers to try our new products. Also we will offer price packs in first month after the first selling. This price packs mainly aims at stimulating our sale and attracting more customers. As one month after the first selling, people may lose their curiosity to try our new products, therefore, launching price packs can help customers’ lower their defensive to the new products. The price packs can be launched for a year until the start of the second stage of promotion. ? 12? Second Stage would be Brand Knowledge. The amount of advertisements will be sharply decreased and the format of the ads will have slightly changes. We will focus on the public relations in order to build up the company image in the community. Informative advertising in lifestyle and fashion magazine Milk and Readers’ Digest will be continued to act as our communication platform. We will invite some gastronomes and editors to try on our new products and write some commentary and recommendation in order to attract more new customers. Public Relations in continuing the donation to National Kids Cancer Ride: NYF has been longed established the donation to National Kids Cancer Ride. There will be three days of selling in August where all sales revenue will be all donated to National Kids Cancer Ride. Also, we will organize a range of fundraising activities for Children’s Cancer Foundation, which is a local charity organization. Hong Kong people concern about whether the company is ethical or not. It is believed that the donation for these organizations can act as differentiation with other similar fast food shops in Hong Kong. Third Stage is the Brand Preference. Advertising and public relations will be continuously launched. It is hoped that all the promotional means could be deep-root in many Hong Kong people’s mind in order to help people remember the brand of NYF and choose it as the first priority in comparison with other fast food shops in the local. We will advertise in the Cable TV because it is cheaper than TVB and have more potential customers than ATV. Wewe will emphasize on our strengths in order to compete with ? 13? other prevailing products. Although the cost of the broadcast in TV channel is relatively high, it can reach many audiences. From a psychological research, when the same picture is broadcasted on the TV nonstop, it simulates peoples’ purchasing power. In relation to public relation, we will continue the donation to National Kids Cancer Ride and Children’s Cancer Foundation. Charity works will be continued because it not only acts as a promotional means, but it is also a social responsibility. For Sale promotion and buzz marketing We will continue sample tasting. After collecting evaluation forms from the first stage of promotion, we will amend it and launch a second round for customers to try on. The sample tasting will launch at the third year. It is hoped that different sauces of potato noodle enhance the variety of the existing products. In addition, we aim at boosting the sales of potato noodles and providing opportunities for new customers to try our product in a cheap price through price packs Place (Marketing Channel) NYF adopted the vertical marketing system (VMS) as its channel structure. We understand that cooperation and efficiency between channel members are important in order to deliver our products to customers smoothly. Therefore, we use contractual VMS which is a franchise system (service firm-sponsored retailer franchise system), NYF will grant franchise to retailer shops in different parts of the world to operate business. This system is unified; coordination and conflicts management are attained through contracts and agreement. ? 14? NYF is popular in Canada and US but not in Asia. The limited number of branches in Hong Kong makes it inconvenient and inaccessible for customers. Our products cannot reach our customers efficiently. Therefore, we have a new distribution strategy. In order to satisfy customer needs, we will open 2 branches in Central and Admiralty, and 1 in Causeway Bay, which are accessible for white collar working class as well as teenagers. We can provide them quick and healthy potato noodles during their limited lunch time. As these places have high pedestrian flow, this can easily attract customer’s attention and raise NYF popularity. Morever, NYF uses selective distribution, which has good market coverage and a moderate cost. As from the franchise agreement, opening more branches are inevitable in the coming years. In this way, our new product, potato noodle can easily reach the targeted customers and at the same time with more control and less cost than intensive distribution. For international distribution channel, NYF will first introduce potato noodles in Hong Kong and other parts of Southeast Asia, we will test the response from customers and collect feedback. Then we will continue to improve our product. When our product becomes mature, we will introduce potato noodle to Canada and US. We will establish potato noodle as an exotic, oriental and healthy fast food. ? 15? Appendix I Attached result of our online research (survey). There were in total 60 participants to our survey conduct. ? 16? ? 17? Apendix II (online survey questions) Cognition of New York Fries Author: yyy We are doing a marketing plan on a fast food company New York Fries. Our goal is to investigate the Hong Kong people of cognition toward New York Fries. It would be much appreciated if you could kindly spare some time to fill in the following questionnaire. Your information provide for academic purpose will be kept confidential. It will be discarded properly. ? 18? Thank you. End ? 19?