Homemaker

Executive Summary

The goal of this report was to investigate weather Alara Wholefoods Ltd. can introduce its already existing products successfully on two new markets: Belgium and the Netherlands, and weather the company can grow and earn profit by doing that.

The report begins with an introduction and background of the Alara Wholefoods Ltd., where mission, vision and company's objectives are discussed. This part demonstrates that Alara's mission is to promote healthy lifestyle by producing nutritious muesli products. Alara's products correspond to a growing necessity to lead a healthy lifestyle. Alara is currently present on various markets, where the demand for its healthy muesli is constantly increasing. Alara also wants to achieve higher profits and growth by establishing itself in new markets: Netherlands and Belgium.

The report continues with external analysis with an opening of a consumer profile, which identifies the target group that consists of people with a higher income that stick to a healthier diet. Further the macro Ð'- environment of the two potential markets: Belgium and Netherlands is studied using the DESTEP analysis, which demonstrated the attractiveness of the potential markets.

The SWOT analysis introduces opportunities of the company, which include cooperation with cafeterias, restaurants, hotels, as well as building strategic alliances with established retailers. Further the threats of the company are discussed, which mainly consist of intense competition that is analysed on various levels in the section. Internal environment of the company is discussed on the level of strengths and weaknesses, which can influence the potential success of the company on the new and existing markets. SWOT matrix allows a closer look at possible strategies of the company in the future on existing and new markets, by taking into consideration the results of the SWOT analysis.

Furthermore the report discusses various implementation strategies that can be used in order to correctly establish Alara's products on the new markets. Marketing objectives, strategies and instruments are discussed using 4P's. Even though there is not too much information available, the expectations for the implementation of preset marketing strategies are positive. The base for positive expectations is discussed using various internal and external factors of the company throughout the report.

Possible financial prognosis is presented in the end of the report, where optimistic, pessimistic and realistic scenarios as well as the break-even point of the market penetration are examined. The budget for year one is estimated to be 80 000 Euro and the break even point can be achieved at 407, 894 units. Additionally possible country, commercial, currency, internal and market risks are discussed in order to demonstrate the stability of the economic situation on the markets considered.

Conclusion and recommendation bring the report to the end by demonstrating the highlights of the research.

 

Executive Summary 3

1. Introduction 6

2. Mission, vision and background 7

A. Company mission, vision, brand promise 7

*Company Objectives 7

*SBU objectives 8

B. Market definition and product/brand description 8

*Brand/Product description 8

*Market Definition 10

3. Situation analysis 11

A. Internal analysis Ð'- company core competences, resources and abilities 11

B. Customer profile and buying habits 11

C. Industry analysis Ð'- Organic Muesli market 13

* Macro environment factors Ð'- DESTEP - the Netherlands 13

*Macro environment factors Ð'- DESTEP - Belgium 14

*Market factors - The Netherlands 15

*Market factors - Belgium 15

*Industry structure factors - The Netherlands 16

*Industry structure factors - Belgium 16

D. Competitor analysis 16

E. Distribution Analysis 19

4. SWOT Analysis 19

Strengths 19

Weaknesses 20

Opportunities 20

Threats 21

Matrix-plus options 22

Confrontation Matrix 23

5. Marketing objectives/expected results with respect to the product's life-cycle. 24

6. Marketing strategy 25

A. Marketing strategy selection Treacy and Wiersema model 25

B. Targeting 25

7. Decisions regarding marketing mix elements 26

A. 4Ps Objectives 26

B. Strategies and tactics for the Marketing mix (4Ps) 27

*Transformational strategies for Alara's Marketing Mix 28

*Informational strategies for Alara's Marketing Mix 28

8. Finances and budgets, financial prognosis 28

9. Evaluation criteria 33

10. Conclusion 34

11. Sources 35

12. Appendices 36

APPENDIX 1 - Products of Alara Wholefoods Ltd 36

APPENDIX 2 Income Statement, Balance Sheet 37

APPENDIX 3 - ACTION PLAN 39

 

1. Introduction

Every day brings new challenges in the world of contemporary marketing. Customer satisfaction has never before been so important in terms of long lasting product-customer relationship and values.

One of these new trends which are dictating a new marketing policy for a lot of companies is the demand for healthy