Marketing Plan Presentation Amanda Burns Shari Doe Chantelle

Marketing Plan Presentation Amanda Burns, Shari Doe, Chantelle Hitt

Gerber Products Company

Situation Analysis Where are we now?

Historical Background Nature of firm Sales / profit history Current marketing strategy/ objectives

Nature of firm 1927 – Founded in Fremont, Michigan by Daniel Frank Gerber 1928 – Developed five products Beef vegetable soup Strained peas Prunes Carrots Spinach Six months later Gerber went nationwide, which was the first nationally advertised baby food in grocery stores. 1939 - Cereal was added 1990 - Gerber graduates were added 2007 - Nestle acquired Gerber which improved the baby food industry by having the world’s leading experts in childhood nutrition working together. 2011, Gerber Good Start formula was introduced which was the first formula to meet FDA criteria for qualified health claim.

Sales/Profit History 2014 Sales: $1. 26 billion 1955 $ Millions % Change from 1954 Rank Previous Rank Revenues 78. 9 N. A. 348 N. A. Profits 3. 5 N. A. 332 N. A. 1994 $ Millions % Change from 1993 Rank Previous Rank Revenues 1, 269. 5 0. 1 307 297 Profits 42. 5 -66. 7 254 113

Total Sales Overall in the U. S. Baby food sales were up 3% in 2013 with sales of $1529. 77 million.

Current Marketing Strategy/ Objectives Direct Marketing Emails Mailings from existing database Mass Marketing Television and newspaper ads Coupons and free samples Emotion-Based Marketing Colors to convey calming and purity Pictures of mothers with babies Traditional Marketing Reasons why our product is better

Consumer Analysis Who are they? Segments? How Many?

Who are they? Target Market: Parents with multiple jobs Grandparents Daycare/Childcare centers Healthcare Providers Single Parent Travelers

Segments? How many? Demographic Age, Gender, Stage in family life cycle 85% of the purchasers of baby items are women, who want affordable and easy to carry items while traveling. Product is geared toward infants and younger children Psychographic Lifestyle Personal activities Travel People are constantly on the go and have busy lifestyles.

Competitive Analysis What market opportunities exist? What/who is the competition? SWOT Analysis

What market opportunities exist? Travel packs are currently not offered. Offer convenience with disposable items: bottles, formula, and Go Baby all-in-one packs. Baby products equal $12 billion in annual sales. 54% of Americans who purchase baby products want continuous customer flow. In 2013, $621. 4 billion was spent on traveling by domestic and international travelers. 78 percent of all travelers are for leisure. U. S. alone had 1. 6 billion leisure trips in 2013.

This graph shows the potential growth all over world.

What/who is the competition? Biggest Competitors are Travel and Baby Product Suppliers Baby Products: Johnson & Johnson Beach Nutrition Company H. J. Heinz Travel Products: Johnson & Johnson Babies Travel Lite

What/who is the competition? Nestle SA is #1 for both Prepared Baby Food and All Infant Nutrition

What/who is the competition? Gerber holds the #1 sales for baby food, even though there was a 4. 2% decrease between 2010 and 2013.

SWOT Analysis Strengths Weaknesses • Variety of Products • High Market Share • Top Manufacture of Baby Food • Only make cloth diapers • Not as strong in the baby products as other manufactures SWOT Analysis Opportunities Threats • New Market • Many People Travel • Increasing number of working women • Low Cost Competitors • Baby Product Manufactures: P&G, Kimberly-Clark, and Johnson & Johnson

Marketing Objectives Where do we want to go?

Sales Objectives Current Level Ø Current Level Next 5 years Ø Next 5 years

Current Level ü Test in regional markets, and establish a 3% foothold in U. S. markets. ü Increase on-the-go travel packs sales by 10% in the U. S. within the first year. ü Decrease or remove potential customers resistance to buying our products, leading to a 25% increase in overall sales in 6 months or less. ü Sell 2 million units in domestic markets by the end of the 1 st year. ü Increase revenue in infant supplies market category by 15% by the third quarter of the next fiscal year. ü Largest segment of on-the-go products

Next 5 Years ü Exceed 5% growth quarterly ü Long term view is to meet or prevent competition, remain the leader ü World-wide distribution by the end of 5 years ü Increase sales by 50% throughout the U. S.

Profit Objective Possible level of achievement ü Maximize profit on total output rather than one single item. ü Achieve profit within first year ü Reach 10% profit in 3 years ü Increase profit by 20% in 5 years

Consumer Objectives How will we serve our target customers? Positioning; What do we want customers to think about us?

How will we serve our target customers? Products for different ages A tiered product line that addresses the needs of varying age groups. Making Go-Baby products available where and when our customers need them the most – when they’re on the go. Provide safe and affordable products Satisfy customers – Give them the best products and deliver experience by meeting or exceeding expectations Fit with our customer’s lifestyles, and offer a convenient product with an equally convenient price. Improve customer experience through innovation and new products

Positioning; what do we want customers to think about us? We are loyal to our customers. View us as knowledgeable experts on baby products and what products fit into every mothers needs. Our business cares about its customers, and we deliver quality. Realistic expectations are met and delivered to every customer. Always have our customer’s best interest at hand.

Strategy How can we get there?

Product Strategy What do we offer? What should we offer?

What do we offer? Products for babies, toddlers, and young children. Baby care, wellness, and life insurance products. Breast feeding products: accessories, bottles and nipples, and massaging manual breast pumps Bath time and skin care products Health care products: such as vitamin drops and instant powder mix. Pacifiers and soothers Feeding products, such as cups, forks and spoons, dishes, and bowls; and baby foods, including cereals and juices.

What should we offer? Travel Packs Ø Combine products into smaller versions. Ø Convenience for families to grab one package with the items needed versus many separate items. Ø Gerber will also be introducing disposable diapers and wipes. We currently sell cloth diapers.

We should we offer? Our Go Baby line will include convenient travel packs, each consisting of products that correspond with the general needs. 2 -Disposable diapers, one 10 pack of wipes, 3 oz tube of diaper cream 2 -6 oz ready made formula, 1 - 8 oz. plastic bottle 1 8 oz bottle of juice, 1 -12 oz dried fruit snack pack 1 12 oz. bag of snack crackers, 1 -8 oz juice box

Pricing Strategy Current pricing strategy Justification Pricing Objectives Profit Oriented Status Quo Oriented Non-price Competition Meeting Competition Sales Oriented Growth in Market Share Dollar Unit Sales Growth Maximize Profits Target Return

Current pricing strategy Value-based pricing Competition Fixed and variable costs Company objectives Proposed positioning Target groups willingness to pay Convenience Price

Current pricing strategy Pricing objectives Ø Maximize long-run profit Ø Maximize short-run profit Ø Increase sales volume Ø Company growth Ø Maintain price leadership Ø Desensitize customers to price Ø Discourage new entrants into the industry Ø Match competitors prices Ø Obtain or maintain the loyalty and enthusiasm of distributors and other sales personnel Ø Enhance the image of the firm Ø Encourage the exit of marginal firms from the industry

Justification Pricing should always take into account many factors, and reflect supply and demand. If the product is priced too high or too low, it could mean a loss in sales for our company Ø Value-based Pricing Consider the competition and customer when pricing. Value based pricing is the strategy chosen, because people will pay for the product out of convenience. Creating special packages for travel use, it will cost more in packaging rather then selling one product by itself.

Distribution Strategy What channel(s) Physical distribution facilities Location Other characteristics

What channel(s) We are going to use a multiple distribution channel strategy. This will include: Wholesalers Retailers Consumers Internet E-Commerce Websites

Physical distribution facilities We need to make sure our product is sold in: Ø Convenience stores Ø Drug stores Ø Grocery stores Big Box stores Specialty Stores (Babies R Us)

Location Ø Airports Ø Train stations Ø Rest Stops Ø Hotel Shops Ø Gas Stations Ø Bus Stations Ø Hospitals Ø Store

Other characteristics We are using a distribution channel with two intermediary. We sell and deliver larger quantities of our Go-Baby products directly to the wholesaler who then breaks up and sells to the retailer who sells to the consumer. Producer wholesaler Retailer Consumer

Promotional Strategy Ø Personal selling Ø Advertising Ø Sales Promotion Ø Main message Ø $ spent / media / theme

Personal Selling ü Sponsor events where our target audience is. ü Offer free seminars to expectant mothers

Advertising ü Baby Magazines ü Doctor’s Offices Specialty Stores ü Inexpensive advertising - we can get our product out to as many people as possible. ü ü To create awareness of baby care products that are convenient and affordable. ü Television

Sales Promotion End-Cap We want our product to be at the end of the aisle. This will promote a quick sale/impulse buy. It is also convenient for the shopper to grab the travel pack. Eye level on other shelves Contact customers Mail Email Social Media This is a great way to show importance of customer satisfaction, but also leaving the door open for promotional opportunities. Ø Distribute free product samples Ø Coupons and rebates

Main Message Gerber’s Go Baby products are safe, simple, superior products for your baby. Go Baby recognizes the importance of perfection when it comes to your baby; we have you covered. We will work to grow and capitalize on this product line and focus on healthy and affordable options of products and continue to create and maintain loyal and happy customers!

$ spent / media / theme Media § Television – This is the most expensive based on rating points, but will reach the most customers. Repetition is very important, and rewards can be great. § Radio – No visuals, so harder to sell this product. § Direct Mail – This will reach many current customers on the company’s data base, but not as effective. Cost is low. Our theme will include products that are in current trends and meet customer needs. These will go through products using materials that are economically friendly and appealing to customers. We want to use theme of calm, delicate, pure colors with pictures of mothers and infants.

Financial Strategy Projections Ramifications if not implemented

Financial Projections Short-Term Forecast Medium-Term Forecast Long-Term Forecast • Period of 6 month • Net income=25% increase • 1 year ahead • Sell 2 Million Units • 2 years and up • Net Income= $6. 4 billion+

Projections Items are already being manufactured, so it will only take a new package to combine a smaller version of the items. It is important to incorporate the following strategies: Cost Leadership Budgeting Setting Milestones Quality Control Advertising/Marketing Costs

Ramifications if not implemented? If a financial strategy is not implemented there can be many problems: Ø Cash flow shortage Ø Too much product because it isn’t selling Ø Higher risk than what was anticipated Ø Debt becomes higher than equity

Gerber Products - THE END

Resources http: //www. ehow. com/list_6549042_business-financestrategies. html http: //www. learnmarketing. net/Place. htm https: //www. gerber. com/home http: //www. economist. com/news/business-booksquarterly/21569368 -staying-top https: //www. udemy. com/blog/business-strategy-examples/ http: //smallbusiness. chron. com/financial-strategies-businessplan-5107. html http: //en. wikipedia. org/wiki/Market_segmentation https: //www. gerber. com/our-story/our-history-and-heritage