Fundamentals of Marketing

Introducing a New Product

The food drink that

keeps you on the go©

Prepared By: Gail Bedward - 0801266

Sandor Edwards - 0800074
Alecia Hope - 0701173
Venessa Jennings - 0803005
Jean-Ann Mattocks - 0701639

Group: EBBA 2C

Prepared For: Ms. Janice Henlin

Date Submitted: April 6, 2010

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 TABLE OF CONTENTS

Page

ACKNOWLEDGEMENT i

EXECUTIVE SUMMARY ……………………………………………………………. 1

INTRODUCTION …………………………………………………………………… 2

SITUATION ANALYSIS……………………………………………….…………….. 3

Strengths ……………………………..……………………………………….. 3

Weaknesses ……………………………………………… ………………….. 4

Opportunities ………………………………………………..………………… 5-6

Threats …………………….……..…………………………………………… 6

COMPETITIVE ANALYSIS………….……………………………………………… 7-9

MARKETING PLAN.………………………………………………………………... 10

Marketing Objective .………………………………………………………… 10

Marketing Segmentation……………………………………………………… 10

Geographical Segmentation…………………………………………………... 10

Psychological Segmentation………………………………………………….. 10

JUSTICFICATION OF TARGET MARKET .………………………………………. 12

Characteristics of Selected Market …………………………………………... 12

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 TABLE OF CONTENTS CONTD.

Page

MARKETING MIX STRATEGIES ………………………………………………………. 13

Product ……………………………………………………………………………. 13

Convenience ………………………………………………………………………. 13

Ingredients ………………………………………………………………………… 13-16

Packaging …………………………………………………………………………. 16

Price ………………………………………………………………………………. 16

Place & Distribution ………………………………………………………………. 17

Promotion ………………………………………………………………………… 17

IMPLEMENTATION & CONTROL …………………………………………………….. 17

Operating Control ………………………………………………………………… 18

Strategic Control …………………………………………………………………. 19

SUMMARY & CONCLUSION …………………………………………………………. 20

SOURCE OF REFERENCE ……………………………………………………………... 21

APPENDICES

 Questionnaire

 Graphical Results From Survey

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 ACKNOWLEDGEMENT

We would like to thank God for giving us the wisdom, knowledge and understanding to

complete this assignment. We are also grateful to our individual families for the assistance given

to us while we worked tirelessly towards the completion of this project. Finally, big thanks to all

members of this group for their time, effort and support in completing this project.

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1.0 EXECUTIVE SUMMARY

1.1 The 2010 marketing plan of JAGS Foods Limited seeks to satisfy the demand for an

affordable healthy meal, designed to keep the body energized and healthy, while curbing

hunger and cravings. E-NUFF is geared towards students attending the University of

Technology, Jamaica (UTECH). Its ingredients provide multiple health benefits. It is easy to

digest and a great source of energy. It replenishes glycogen, which is important for those who

lead a busy lifestyle.

1.2 During the next six months the major marketing goal of JAGS Foods will be to aggressively

pursue the market at the University of Technology. In so doing, it is hoped that we will

achieve at least 60% of those targeted. It is our intention to achieve this through promotional

strategies on campus; this would include taste tests and distribution of sample products.

1.3 A recent survey conducted by JAGS Foods Limited at the University of Technology,

revealed that there is a demand for an affordable, convenient and nutritional meals. E-NUFF

is an all-in-one meal which is nutritious and affordable. Unlike other food supplements, it

uses only naturally blended ingredients that are inexpensive, easily accessible and effective

in providing the body with nutrients and essential vitamins.

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2.0 INTRODUCTION

2.1 The training of the human mind is not complete without education. Education makes a right

thinker; however, it is not sufficient without a balanced meal. The ingredients of E-NUFF

help to stimulate the brain. Some of its ingredients are ripe banana, oats, green plantain,

irish moss and peanut.

2.2 A distinguished feature of E-NUFF is that the ingredients are locally grown and are easily

accessible. Banana promotes the retention of calcium, phosphorus and nitrogen - all of

which work to build sound and regenerated tissues. Oats are amazingly high in calcium,

potassium and magnesium, together with lots of B complex are vital to a healthy nervous

system. Plantains are low in sodium and high in vitamin A, potassium, and fiber.  Irish

moss nourishes and protects the skin from environmental elements. It also protect from fat,

hypertension & arteriosclerosis. Peanuts contain vitamin E, a powerful antioxidant that is

shown to significantly reduce the risk of cancer and cardiovascular diseases.

2.3 The initiative of providing a food supplement resulted from a survey conducted by JAGS

Foods at the University of Technology. This survey revealed that the market demands a food

that is affordable, nutritious and fulfilling. Students are ready to buy a product that will help

to stimulate the brain and enhance their learning capability. Additional research revealed that

most students get fatigue and feel lethargic after having a day’s lunch. Their feedback

suggested that they would prefer a meal that can be easily consumed in class, can hold in

their bags conveniently at the same time equally satisfying when compared to cooked meals.

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3.0 SITUATION ANALYSIS

3.1 Strengths

Some major strength of the company includes:

3.1.1 Manufacturing of our product was inexpensive which provides cheaper

price to the market. We are able to offer affordable product due to

reasonable cost of our ingredients used to produce our product. For

example, the banana, peanuts and green plantain were sourced from a

local produced farmer, whose prices were lower than the competitive

market price. Likewise, the soy, oats and the other ingredients were

sourced at wholesale price. In addition, the prime and overhead costs were

low and the facilities were convenient and readily available.

3.1.2 High quality products with ingredients that are safe and can be easily

recognized by the market. Research will show (as stated by my team

member) that all the ingredients used to create our product have their

individual attributes to the development of ones body, and in their own

way used as treatment.

3.1.3 No hierarchy means quick decision making. The JJAGS Food Limited

comprises of five decision maker. When compared to our competitors,

large and established companies, decisive decisions are made quickly,

even in conflicting situations.

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 3.1.4 Producing the product does not require technological skills.

3.1.5 Access to a convenient distribution network due to the location of the

retail outlet in relation to the factory. That is, this product may be bought

at John Shop and Mega Shop.

3.2 Weakness

Some key weaknesses of the company entail:

3.2.1 Established competition with similar products tends to receive majority of

the market share – loyal customers. We are a new business entity, which

makes it difficult to gain sustainable share of the competitor’s market. As

a result, this impedes on the sales and profit of JJAGS Foods Limited.

Low or no sales means no profit – which dampens the efforts of attaining

target goals over forecasted period of time.

3.2.2 Inadequate staff and machinery to meet escalating demands. They are

limited resources such as inadequate funding for premises, overhead costs

and working capital to finance the running of an established business;

provided that we increase in demand, likewise expanding business to a

larger market share.

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3.3 Opportunity

Opportunities that exist for our product are:

3.3.1 Market penetration (UTECH) – The target market entails the more than

90% of the students on the UTECH campus that are within the age group

18–35. JJAGS Food Limited’s new product ‘E-NUFF’ ensures that

students who buy the new product may be satisfied and delighted. This

will allow these students to encourage others to buy and consume more of

‘E-NUFF’, thus increasing market share. This situation is what we call

marketing evangelism.

3.3.2 Market expansion opportunities – The potential to serve emerging new

markets. Positive responses hearten the expansion of providing E-NUFF to

wider markets. For example, in the growth stage of E-NUFF, JJAGS may

now consider to providing the new product to other secondary, tertiary as

well as pharmacy and supermarket establishments.

3.3.3 Its economical base upon changing environmental constraints: Inflation

rate affects the purchasing power of the UTECH students where price on

competitive meals - served by Lillian’s Restaurant and JUICY Beef -

escalates. However, this new product:

a) Allows for individual students to afford a proper meal for the day,

irrespective of their income status. In this way, students are able to

keep up a healthy and affordable living.

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 b) Also, this new product rids the inconvenience that part-time students

would have during class-time. For example, a part-time student may

have had a rough day at work. Instead of purchasing a Juicy Beef meal

(rice & peas and curry goat), which is high scented and distracting

during class sessions, the student can buy an ENUFF food drink which

is filling and convenient.

c) More affordable than competitor’s prices. Most of the population of

the UTECH body are full time students who do not have a steady

inflow of income. For this considered reason, ENUFF was generated

to alleviate the purchasing power of these students.

3.3.4 Students may want a change in taste from competitive products. Students

may be tired of consuming the same food on a daily basis. Thus,

consuming the new product is also at their convenience when students

change their buying pattern.

3.3.5 If anticipated sale is met /exceeded, profit margins will be good.

3.4 Threats

The main threats facing our product are:

3.4.1 Others might be turned away due to allergies and other unforeseen factors.

Students might be allergic to any of the ingredients likewise lactose

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 intolerance and so on. Therefore, this causes potential market to turn

themselves away from the product before attempting to consume the

product. These factors may cause forecasted sales and profit to be

overstated or understate.

3.4.2 The product might not suit the taste of the entire target market after

consuming the product for the first time.

4.0 COMPETITIVE ANALYSIS

4.1 One of our main competitors is Nestle Jamaica Ltd, who have a wide range

of energy food drinks on the market, some of the most popular brands include

Supligen, Boost, and Nutrament. These three brands have enabled Nestle to

control a large portion of the energy food drink market, however these brands are

not as nutritious, healthy, fulfilling, or as economical as our product “E-Nuff”.

4.1.1 All three brands: Supligen, Boost, and Nutrament, contain large amount of

sugar. Sugar is a major contributor to cardiovascular diseases and obesity,

which generally leads to diabetes.

4.1.2 Supligen, Boost, and Natrament mostly contain artificial ingredients, chief

among them is an artificial sweetener called Aesulfame. This was first

approved by the [Link] Food and Drug Administration (FDA) in July 1988.

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 According to Dr. H.J Roberts, who is a U.S based doctor, there is still

significant doubt about the safety of acesulfame. Acesulfame has no food

value and tricks the body in thinking that it’s eating something sweet.

Acesulfame is part of the Aspartame group of artificial sweeteners, the

most dangerous of all artificial sweeteners; they are generally referred to

as “sweet poisons”

4.1.3 When compare to “E-Nuff” the cost associated with these food drink are

not very economical. The price of, a tin of Supligen (395g or 14 fl. oz.) is

$160, a tin of Boost (224g or 8 fl. oz. ) is $195, a tin of Nutrament (336g

or 12 fl. oz.) is $210.

4.2 Ensure food drink, which is distributed locally by Cari-Med, is another competitor.

Similarly to the other food drinks mentioned, Ensure contains large amount of sugar

and artificial ingredients, one such ingredient is corn syrup. Corn syrup is a

common sweetener and preservative, which is very high in calories and low in

nutritional values. Regular consumption of corn syrup can lead to coronary artery

disease and high blood pressure. When compare to “ENuff”, Ensure is relatively

expensive as a bottle of Ensure (224g or 8 fl. oz.) is sold for $285

4.3 Complan which is distributed locally by Lasco Ltd, is another of our Competitor.

Complan is sold in powder form, and has to be prepared by the end user before it

can be consumed. The drink is prepared by pouring the Complan powder into a

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 container of water or milk, and then it is stir repeatedly, to ensure that it is properly

mixed. Given the preparation which is needed for the consumption of this food

drink, a University campus is not suited for this kind of product. To add to that

a pack of Complan is very expensive, a 450g pack is sold for $1050.

4.4 In comparison to these other energy food drinks “E-Nuff” is far more nutritious as it

contains no artificial ingredients and has some of the most nutritious ingredients

such as, ripe banana, oats, peanuts, green plantain and soy milk. “E-Nuff” contains

no sugar or preservative and as such is healthier. From a economical perspective

“E-Nuff” is far more affordable, as a bottle of “E-Nuff” (560g or 20 fl. oz.) is far

$100.

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5.0. MARKETING PLANNING

5.1. Marketing objectives

5.1.1 Our aim is to achieve at least 30% of the total market for energy performance

supplements by the end of the first six months

5.1.2 To acquire a volume target of 10000 cases of the energy drink by December

2010.

5.1.3 To gain and maintain at least 45% of customer's loyalty levels within the next

nine months.

5.1.4 To earn a total sales revenue of one point four million dollars ($1.4M) by the end
of one year.

5.1.5 To increase an awareness levels among our particular target group up to 80%

within the first 10 months of existence.

5.2 Marketing Segmentation

In segmenting our market, there are two categories in which theirs an interests, these

include:

 geographical

 psychological

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5.2.1 Geographical segmentation

JJAGS is a newly formed company; as a result there is not a wide distribution, our focus

are on the students and employees of the University of Technology which is located in

the Papine area. We are however committed to develop as the business progresses.

5.2.2. Psychological segmentation

In this segmentation, we are focusing on socioeconomic background, persons

consciousness about their health and the drive to consume not only healthy meals but

those that are delicious, nutritious and affordable. In conducting our survey we ascertain

that 90% of our target market were very concern about their health. So as a result we

make sure that our product was sugar free, preservative free, high in potassium, vitamins

protein, fibre and unsaturated fats. These ingredients aids in the prevention of cancer,

high in antioxidants which strengthens the immune systems and boost energy levels, thus

resulting in a healthy lifestyle.

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JUSTIFICATION OF TARGET MARKET SELECTION

A research was done to ascertain the type of product that could be developed to assist the

University of Technology (Utech) students to get all the nutrients in one meal and is convenient

to their pocket. The responses given were geared towards an energy drink that not only gives

energy but also gives all the nourishment and nutrients of a complete meal that will allow the

students to stay healthy. It will be cost effective and allow students the opportunity to live within

their budget and be able to save. In analyzing the response of the research done, the decision was

taken to manufacture and promote a energy drink called “Enuff”.

Characteristics of selected target market

 Geographic

Place - The University of Technology, Jamaica

 Demographics

Age - 17 – 35 years old

Gender - Male and Female

Occupation - Students

Income - as low as $ 3000 per week

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5.3 Marketing Mix Strategies

Marketing mix is a set of controllable tactical marketing tools (product, price, place

and promotion), that a company blends to produce the response it wants in the target

market.

5.3.1 Product

To deliver on its value proposition a firm must first create a need-satisfying market

offering in the form of a product. E-NUFF is a fulfilling and nutritious energy

food drink, which contains all natural ingredients. It contains no sugar, no

artificial ingredients or preservative. There are several factors that are needed to

be considered in offering our product in order to meet our customers’ demand.

5.3.2 Convenience

E-NUFF is available in 600ml (20 fl. oz), which weighs just over a pound. It is

packaged in a sealed plastic bottle which makes it easy to carry around. This

makes E-NUFF a very convenient product and is ideal for our target market.

Students can conveniently carry the product around with no hassle, whether it is

in their bags or just in their hands.

5.3.3 Ingredients

The main ingredients that make up E-NUFF are:

 Soy Milk

Soya beans are high in calcium, low in saturated fats and cholesterol free.

They also have high iron content.

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 Oats

Oats is considered to be a soothing food for the nerves. It is one of the best

sources of Inositol, which is important for maintaining blood cholesterol

level. Oats are amazingly high in calcium, potassium and magnesium,

together with lots of B complex – all are vital to a healthy nervous system.

Eating oat regularly will lower one’s blood cholesterol level. It is a natural

antidepressant - will make one feels calmer and normally used to treat

depression, anxiety and nervous disorder. Unrefined oats reduces stress

while cooked oats relieves fatigue and it is used to protect us from bowel

cancer.

 Peanut

Peanuts contain high amount of protein, which makes it a preferred diet of

those people engaged in body-building and those people who are weak and

underweight. It contains vitamin E, a powerful antioxidant that is shown

to significantly reduce the risk of cancer and cardiovascular diseases. It

contains iron which is essential for the correct functioning of red blood

cells and calcium which helps promotes healthy bones. Peanuts' fiber

content helps lower the risk of colon cancer and helps to accelerate the

growth of male and female hormones.

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 Green Plantain

Plantains are a type of banana that contain less sugar than the common

yellow banana. Plantains are low in sodium and high in vitamin A,

potassium, and fiber. They contain similar nutritional content as bananas.  

 Ripe Banana
Banana is known for promoting healthy digestion and creating a feeling of

youthfulness. It promotes the retention of calcium, phosphorus and

nitrogen - all of which then work to build sound and regenerated tissues.

Banana also contains invert sugar, which is an aid to youthful growth and

metabolism. The banana is used as a dietary food against intestinal

disorders.. It is of great value in constipation and diarrhea as they

normalize colonic functions in the large intestine to absorb large amounts

of water for proper bowel moments. Bananas are useful in the treatment of

arthritis and gout. Being high in iron content, bananas are beneficial in the

treatment of anemia. They stimulate the production of hemoglobin in the

blood. Bananas are valuable in kidney disorders because of their low

protein and salt content and high carbohydrate content. They are useful in

uremia, a toxic condition of the blood die to kidney congestion and

dysfunction. A diet in bananas is considered an effective remedy for

weight reduction, as they contain practically no sodium. Banana is an

effective medicine for menstrual disorders, it helps to increase

progesterone hormone which reduces bleeding.

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  Irish Moss

Irish moss nourishes and protects your skin from environmental elements.

It also protect from fat, hypertension & arteriosclerosis. Irish moss

enhances the skin's ability to retain vital moisture and essential lipids. It

helps support healthy skin appearance. It is used to increase the metabolic

rate and helps strengthen connective tissues, including the hair, skin and

nails. Irish moss is widely used as a remedy for expectorant, demulcent,

anti-inflammatory.

5.3.4 Packaging

E-NUFF is package in 600ml sealed plastic bottle which allows for easy carrying.

It is imprinted with the word E-NUFF on the wrapper, which is written in red and

blue on a white background; this will allow for easy recognition by our potential

customers.

5.3.5 Price

The price of our product, E-NUFF is very affordable, at a cost of $100.00

E-NUFF is far less than the price of a patty and a soda, but yet is more fulfilling

and nutritious. The aim is to make the price of our product affordable and

competitive and as such we will be using the market penetration strategy. By

setting a low price for our product we can attract a large number of buyers a and a

large market share. This is ideal due t o the fact that our industry is characterized

by a lot of competing band.

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 5.3.6 Place and Distribution

The location of our administration office and factory is located at 2 Oxford Road,

Kingston 5; this is in close proximity to our target market. There are two retail

outlets located on the university’s campus namely “John Shop” and “Mega Shop”,

both outlets are two of the most popular eateries on the campus and are located at

the area known as the “Barn”.

5.3.7 Promotion

E-NUFF promotional programme includes:

 Advertising in the university students hand book, flyers and posting

notices in areas that students frequently visit.

 Conducting a lot of sampling at various locations on campus, and also

give-away of various items bearing our product’s name.

6.1 Implementation and Control

In order for us to turn our marketing plan into marketing actions that will accomplish our

strategic marketing objectives, there must be a vigorous implementation process for our

product. During the implementation process we will be focusing on some key areas:

 What will be done?

Continuous and vigorous marketing campaign across the university campus

by way of flyers, conducting sampling on a regular basis, placing notices

in popular eating areas

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  When will be done?

Our implementation process has already began; however, there will be a massive

campaign in early May at the beginning of the next semester, and the ending of

exams. This will be done in an effort to get the attention of as many students as

possible.

 Who will do it?

The process involves our entire staff compliment. Each person will be given

task outline as to the area to be targeted.

 How much will it cost?

The overall cost of implementation process is estimated to cost $120,000.00. This has

already been sourced from each partner.

6.1.1 Control

Our marketing control strategies will be done in two phases – operating and strategic

 Operating control

This is where we will have continuous checking of ongoing performance against the

annual plan and taking the corrective action where necessary by:

o checking sales on a weekly bases to see if the sales targets are being met

o compare each weekly sales against the cost of production to ascertain if

whether there was a profit or loss

o In the event that sales or profit is not being realized, more advertising and
promotional events will be done

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 Strategic control

This is where we will look at whether our basic strategies are well matched to its

opportunities by:

Reassessing our environment, objectives and strategies and activities to

determine our weak areas and opportunity, to see if a new plan of action is

needed to improve our market performance.

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7.1 SUMMARY AND CONCLUSION

7.1.1 After careful evaluation of the market research, we decided to develop a product

that is more reliable than those already being offered by competitors. This led to

the realization of the product E-NUFF. The information which was gathered also

assisted us in identifying opportunities which were available, as well as the

possible threats that would be faced in the market environment.

7.1.2 In developing this product we hope to capture 90% of the target market within the

first six months. It is our intention to achieve this through promotional strategies

on campus; this will include taste tests and distribution of sample products.

7.1.3 The training of the human mind is not complete without education. Education

makes a right thinker; however, it is not sufficient without a balanced meal. We

endeavour to provide a product that is affordable, convenient and nutritional to

students. The product will be available to all those targeted and ultimately

nationwide.

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 REFERENCE

Boone & Kurtz, Contemporary Marketing Tenth Edition, pg 236-251

Kotler & Armstrong, Principles of Marketing Thirteenth Edition

Kotler P & Armstrong G 2009 Principles of Marketing twelveth edition, pg309-317

Kotler P & Keller K. Marketing Management 12 edition page 438-450

Strategic Bundling of Products and Prices; a new synthetic for marketing journal of marketing
research January 2002 page 55 -72

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 Questionnaire

1. Which age group do you belong?

 17-21  22-26  27- 31  32-35

2. What is your current status?

 Full-time  Evening  Part-time

3. Are you currently employed?

 Yes  No

4. Can you afford a healthy meal on a daily basis?

 Yes  No

5. Due to the stress from studying and your busy schedule, are you able to partake of a
healthy meal?
 Yes  No

6. Are you currently taking any energy supplement (tablet or drink)?

 Yes  No

7. If yes, state which type:

__________________________________________________________________
__________________________________________________________________

8. Which product do you prefer?

 An energy food drink  An energy drink  An energy tablet  None

9. How much do you spend on an energy product per month?

 $1000.00  $1500.00  $2000.00  more

10. Would you prefer to have an energy food drink, which has all the nutrients found in a
complete meal to help booth your energy?
 Yes  No

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