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)
