I. Executive Summary
The following plan is to be implemented within three years subject to annual review, at the end of which kosher Parisian Chocolates should be available in every accredited store within Jewish neighborhoods in all the major cities of America. This growth will be achieved through proper market sensitization via mainstream and social media and by partnering with selected stores in America. Proper implementation of this plan should the company attain a sales turnover of $ 50 million in the first year and a subsequent annual turnover growth of not less 50%.
II. The Challenge
The main obstacle to growth is competition from existing kosher chocolate stores in New York and to overcome this, the company must aggressively but carefully market our product to the high end market segment that it is meant for by providing services and quality that surpass customer expectations. It is only by doing this that the company will be able to stand out from the existing stores and achieve the growth objectives.
III. Situation Analysis
The mission this analysis is to be the preferred suppliers of high end Parisian kosher chocolates in Jewish all Jewish and other neighborhoods in America in three years. Being a premium store, there should be a clearly focus on this market niche and clearly mark it with premium products, services and pricing. The staff and partners must be ready to accept the culture of providing five star services to customers without any room for compromise.
Since there are not many premium kosher chocolate stores in New York, the company will rely on royalty services and the large Jewish population in New York and around America whose loyalty to kosher products have never been compromised over the years. There is a wonderful opportunity for tapping into these strengths and achieving the set objectives, but however not overlook the fact that we have built a brand name which a weakness that competitors can very well use in driving us out of business. It is of significance to internalize the fact that we do not have any share of the existing customer base given that this is a new venture and its only through proper marketing strategies that we will be able to curve and retain our market niche.
There are 6.44million Jewish people in the United States with1.6 million living in New York alone according to the 2009 Israel Central Bureau of Statistic. With such a client base and taking into account that 60% of this population are in the middle class, the company should be able to effectively tap and get hold of the target client base. This can only be achieved if we implement the following;
Teenagers and young adults being major consumers of chocolate, there is need to produce ads that appeal to them and pass these ads through social media where they spend most of their time. It is important that kosher is sold as cool to be able to bring on board non Jewish customers.
There are several kosher chocolate stores in Jewish neighborhoods but not many of them are strictly high end with a number of them catering for basically all customers, this puts this venture in a better position to make an impact, strength that must properly utilized for success. Given that this company is a new comer into this market, getting a piece of the market and keeping it will only be realized if the products and services at the stores are very premium.
To reach the wider target market, the company must in the not so distant future partner with other whole foods and high end organic stores in the distribution process but one factor must be upheld in our search for partners: premium service.
Macro-environmental PEST analysis:
PEST analysis examines political, economic, social and technological impacts to our business. Politically, our business has its foundation on the Jewish culture and with teachings on adherence to strictly kosher foods being a major part of what the clientele receive every time they are in the synagogue, there can never be any doubt with regards to growth in sales.
The target market for our products are the very elite of the Jewish community, this is a niche that is not seriously affected by minor economic down turns which lays a foundation that can only mean more and more growth in our business.
America for long has been and still remains one of the worlds largest consumer of chocolate products and with the youth who are today’s number one chocolate consumers being a large percentage of the total American population, the company should be able to meet the set targets.
Internet today has totally changed the business environment with apps available for almost every task. This development presents a wonderful marketing opportunity to the products with advertisements that can be running simultaneously on face book, twitter and many other social sites. Proper use of this technology can only result into growth.
This company has a strength that is the promise of ‘royalty’ services and products; all that is to be done is the actualization of this promise to be able to realize results. The fact that this is a new name coming into a crowded field is a weakness that must be navigated and turned to an opportunity for success. It is important to realize that being new; a totally different order in the chocolate products industry must be provided to be able to command the market share.
Given that there are countable high end kosher chocolate stores around America, there is an opportunity to tap into a fairly green market segment. The threat of established stores that have been around for ages is an area that must be properly circumvented in the attempt to cut into their share of clientele.
IV. Market Segmentation
The market segment that the company intends to capture is 100% high end, a niche that requires proper understanding to be able to conquer and keep. Clients in this niche expect nothing less than excellent which therefore necessitates incorporating a experienced staff that understands their needs and a support system that appreciates customers’ royalty status.
V. Alternative Marketing Strategies
Providing discounted chocolate products was one available option that was dropped after looking at the crowded filed of stores in that segment. The one area that upon examination showed less crowding with countable players was that of premium Parisian kosher chocolates, an area that if well exploited could help realize return on investments within a reasonable time frame.
VI. Selected Marketing Strategy
The premium product marketing strategy was chosen for its clarity in terms of product value, distribution plan and a need in the segment that is yet to be fully met by the exiting products and distributors.
Decision to go for a product is driven by the brand name, quality, warranty, range of product line and packaging. The Parisian chocolate we intend to bring into the market is the apex in the industry and therefore must be packaged to live to that status. Customers are assured of its fine quality with a money back guarantee to customers who feel their needs are not met by the product. We will equally be a range of flavors to choose from to meet the various customer preferences.
Given the quality, level of service and market niche, our chocolate will be priced at a premium without room for compromise. This in itself comes with the challenge of giving products and services that match the values for money customers pay, something that must be upheld at whatever cost. Sales volume in this market segment is not usually very high in terms of units but the turnover in dollars for the units sold should ensure we break even.
This company should start with selling directly to customers from the store in New York before pursuing partnerships with other high end organic food stores to be able to reach a wider population in the short run. The long term plan is to have stores in all the Jewish neighborhoods. Due diligence must however be taken in identifying partner stores which must be high end in prime locations offering services above set minimum standards and serving an exclusive clientele. These stores must also have an efficient and state of the art storage system. Their motivation to keep our standards at all times will be from the attractive distributor package that we plan to offer these partners.
This involves how customers get to know the products offered. The company has to put in place an advertising campaign that will run in the Jewish and other radio stations. The main medium will however be the internet with advertisement on Facebook and twitter sites. They should also plan to offer sponsorship to several activities during the Hanukkah holiday, one of the Jewish calendars’ most important week. During the holiday activities, the company plan to use the endorsement of David Stern of Los Angeles Lakers, one of the most respected Jewish sports figures to cement brand identity with the sports lovers and the members of Jewish community.
VII. Short & Long-Term Projections
With proper execution of the plans there is a projection of a turnover of not less than $10 million in the first quarter with an annual growth of 50%. Company will however need to constantly review the service and quality standards for this are the foundation of our existence. Breaking even is not likely to be realized until the third quarter given the big preliminary costs.
The target market for the company’s product is a very risky one where one simple service or quality mishap has the potential of costing an entrepreneur the entire venture. It is therefore of utmost significance that staff and everyone involved embodies the level of services required and internalizes customer needs and expectations to be able to match and surpass them. Marketing is just as good as the implementers; the team should therefore be carefully selected to be able to put in place the culture of excellence
Kosher food is still not very well accepted outside the Jewish community and being able to penetrate the non Jewish community with kosher products will entail selling the health value in these products, an idea that requires both patience and resources. It is however important to take into account that a consumer base of over 6 million Jews should be able to comfortably sustain this venture if the concept is properly implemented. The long and short of this ventures success is starting on the right foot with customers who must experience the difference in making purchase and consuming chocolate from our store against in comparison to their previous purchase points. The ‘royalty’ element in our products and services must stand out for success.