Post on 17-Jan-2015
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10 STEP MARKETING PLAN FOR RED RIBBON CAKESJoanne Wolcott
February 2011
1
DISCLAIMER
This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.
The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.
When appropriate, data are “masked” so as not to create unexpected conflicts.
The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.
STEPS 1 TO 5
SUMMARY HEADLINE OF YOUR PTM AND MARKET
1. Primary Target Market (What do they need, want, demand)
2. What are they choices3. Where is the opportunity4. How big is the market (3Cs)
CELEBRATES LIFE BEAUTIFUL MOMENTS
1) Class A and B Families who want to celebrate togetherness and make every moment special
2) They need a good tasting cake that suites the specialty of the occasion
3) For the longest time goldilocks has sole market share for commercial cakes
4) The gap competition is always about great tasting food
5) The market size is with in the class A and B
STEPS 6 TO 10
SUMMARY HEADLINE OF THE MARKETING MIX & STRATEGY
6. Product7. Price 8. Promo 9. Place 10. Generic Winning Strategy of Mix
MARKETING MIX AND STRATEGY
Products there are cakes, pastries, breads, pasta miryenda
meals, set meals, custom cakes,rolls Price
cakes are from Php 350-959 Cake rolls 210-300 Pastries Php120-350 in (packs of 3’s or 6’s) Miryenda meals average Php 150 (available in
free standing stores and mall stores)
MARKETING MIX AND STRATEGY
Promo print, tv, radio and internet. More emphasis on
print Place
Inside major malls, inside Jolibee stores in the provinces and free standing stores with in “food district” of cities.
They also have internet and delivery hotlines Over all generic winning strategy:
Appeals to the emotion of the customers
1. DESCRIBE THE PRIMARY TARGET MARKET (PTM)* Demographics (Age range: must have a start
and end age*, sex, social class, marital status)
Lifestyle (what they do) Behavior (when consumed, how much, how
frequent, special concerns)
CLASS A AND B FAMILIES WHO WANT TO MAKE THEIR TOGETHERNESS SPECIAL
They are targeting families that are in the class A and B. Has emphasis on the women who chooses food for the family
They are well to do in the society. All of the commercials are in English
They target people who views food as a sign for to gather people and have “bonding time”
MARKET SIZE FOR COMMERCIAL CAKES
6.1 percent upper class, 4.2 percent upper-middle class, 57.1 percent middle class (http://opinion.inquirer.net/inquireropinion/columns/view/20100710-280190/NSCB-tries-to-count-the-rich
) Total pop of the Phil 92 million approximately
62,008,000 target market (adding all the upper class, upper middle, and middle class)
2. MY PTM’S NWD
Needs from Maslow’s hierarchyWants determine choiceDemands for them to buy the product
3A. DIRECT AND INDIRECT PRODUCTS THAT ADDRESS MY PTM’S NWD
List of Competitors products/ brands Determine the variables that affect choice of
product, brand
DESCRIBE YOUR PTM NEEDS
13
Self-Actualization Needs(Self-
Development & Realization)
Esteem Needs (Recognition,
Status)
Social Needs (sense of belonging, love)
Safety Needs (security, protection)
Physiological needs (food, water, shelter)
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
I want to belong to a loving family
I am happy with my family
2. PTM’S NEEDS, WANTS & DEMANDS
Needs: To have a great tasting dessert/ snack
Wants: To have a centerpiece for the special occasion or togetherness.
Demands: They want something that is
considered of high caliber and something to be proud of when buying a caked for sharing. Most of the target market are from the class A and B so they are also looking for the quality of ingredients and the presentation
3B. POSITIONING MAPS FOR THE CAKE AND PASTRIES INDUSTRY
1st Map: 2 x 2 Matrix showing the 2 Most Critical Variables for Consumer choice
This 1st Map should allow differentiation/ non-clustering of the direct competitors
Example: Price vs ageSize of bubbles= represent relative market shares of
the brands
2nd Map: Functional Benefit vs. Brands/ Variants
POSITION MAP FOR CAKES
Price/ Age Matrix
0-13 yrs 13-24 yrs 25-49 yrs 50yrs up
High price
Low Price
Price vs. Age Matrix as of 2011
Red ribbon
Goldilocks
Goldilocks
Red ribbo
n
Goldilocks
Contis
EXAMPLE OF A BENEFIT POSITIONING VS. BRAND MAP FOR CAKE
Benefit Positioning vs. Brand Matrix
as of 2011
Contis
Functional Benefit pastrieslocal cakes cake rolls
birthday cakes
premium cakes
miryendapackages pastries cake rolls cakes
miryenda packages pastries cakes snacks
Dessert/snackbrings people togetherGood tastesaves moneygood designbrings joy to peoplequality of ingredients
Goldilocks Red ribbon
4. IDENTIFY THE GAP BETWEEN CUSTOMERS AND COMPETITION
Where is the marketing opportunity? There is opportunity in looking more into the
customized cakes for birthdays. Goldilocks is dominating that market through the designs of the kiddie cakes.
In the 50 above age bracket, it is dominated by Goldilocks because of the brand recall and it has been there for a long time or by specialty cakes producers
Can also compete with the local pastries since Goldilocks is the only one selling that in their stores.
What NWDs are not being addressed? The need to satisfy the budget of the lower
class(class C and D), that would like to have a piece of the better off counterparts.
What can be the unique selling proposition for the new product (totally new or repositioned.)
A good selling proposition is still go head to head with Goldilocks since the only stores that are competing for the commercialized cake industry.
Stay in the Class (mid to lower) A and class B bracket.
5A. ESTIMATE THE MARKET SIZE USING COMPETITOR DATA1. Industry size comparisons and
observation in the environmentFor every 2 goldilocks free standing
stores, there is also 2 red ribbon stores within the vicinity.
In an SM mall there is always a red ribbon and goldilocks in the premises.
If there is Jolibee, there is most of the time there are red ribbon cakes and pastries for sale
Goldilocks pastries are sold in the super market.
5B. ESTIMATE THE MARKET SIZE USING COMPANY DATA1. Claimed market share3 billion pesos (Red Ribbon, 2009 sales )5.947 Billion( Goldilocks, 2007 sales)2. Guesstimate on market share= estimated 30% market share of red ribbon
http://www.goldilocks.com.ph/business-opportunities
http://www.jollibee.com.ph/downloads/reports/2009/annual_2009.pdf
5C. ESTIMATE THE MARKET SIZE USING CUSTOMER DATAAverage size of a household is 5 people in the
Philippines. Usually Cakes are being bought for special occasion so an estimate of buying a whole cake is an average of 3-5 times a year. This is applicable to the target market of class A and B.
http://www.nscb.gov.ph/headlines/StatsSpeak/2008/011408_rav_poor.asp
5. DECIDE ON MARKET SIZE IN PESOS, NOT IN NUMBER OF PEOPLE
1. Competitor data= 6Billion Pesos (2007)
2. Company data = 3 Billion Pesos (2009)
3. Customer Usage data = n.a
6A. CAKES
CAKE ROLLS AND PASTRIES
SNACKS/MIREYENDA
6A. SHOW HOW PRODUCT LOOKS VS. COMPETITION
6B. PRODUCT DESCRIPTION
The box of the cake is always red. Their boxes are always packed with a red ribbon lace
The information about the cake is always specified in the receipt. There is no box window to see the product unlike Goldilocks.
They always put a premium in the packaging, the box lining is smooth and glossy so that the icing cannot sag the box if it touches.
PACKAGING
7. PRICE
* All prices In Phil peso
Products Prices of Goldilocks
Prices of Red Ribbon
Average Price Difference
Cake Rolls 154-286 210-300 -35Cakes 165-605 350-959 -269Pastries 24-60 40-60 -14Miryenda 100 150 -50
8A. WHICH OF THESE MODES DOES YOUR PRODUCT USE?** PLS. RANK MOST USED, 1-HIGHEST USE
Mass Marketing1. Advertising2. Sales Promo3. Public Relations
Personal Marketing1. Interactive
Marketing2. Personal Marketing3. Word Of Mouth
8A. YOUR PRODUCTS PROMOTIONS
Advertisement
WEBSITE
ADVERTISMENTS
Video http://www.youtube.com/watch?v=r6q-aN9Ny1o
Radio:http://www.youtube.com/watch?v=mAQE3K9qGEw
8B. COMPETITOR PROMO
COMMUNICATION
The advantage of Red ribbon is that it has a active website that you can order directly
It has exposure to many avenues since red ribbon is also present in Jollibee stores
They concentrate on the “expirience” of having a red ribbon cakes
9. PLACE
Where is your product available? It is available in every major malls, many
jolibee outlets and free standing stores It is also available in the internet and has a
delivery hotline
10. WHAT IS THE GENERIC WINNING STRATEGY?Which of the 4 strategies are being used? (bold
and underline to most dominant strategy) Supply and Distribution Leverage- because it can
easily be accessible to the consumers. It is also present in Jollibee stores. Delivery by internet or hotline
Differentiation It caters to the class A and B who have an eye for
quality
SUMMARY
40
STEPS 1 TO 5
SUMMARY HEADLINE OF YOUR PTM AND MARKET
1. Identify your target Class A and B
2. What do they need, want, demand (NWD) They need a cake that can be the centerpiece of
the gathering to make it special
3. What are they choices (competitors) Goldilocks Specialty cake stores Contis Small Bakeries
4. Where is the opportunity (gap) In the higher end cakes and distributing native
pastries
5. How big is the market (3Cs)
1. Competitor data= 6Billion Pesos (2007)
2. Company data = 3 Billion Pesos (2009)
3. Customer Usage data = n.a
Claimed market share3 billion pesos (Red Ribbon, 2009sales )5.947 Billion( Goldilocks, 2007 sales)
Guesstimate on market share= estimated 30% market share of red ribbon
MARKETING MIX AND STRATEGY
Promo print, tv, radio and internet. More emphasis on
print Place
Inside major malls, inside Jolibee stores in the provinces and free standing stores with in “food district” of cities.
They also have internet and delivery hotlines Over all generic winning strategy:
Appeals to the emotion of the customers