Sunny Farm Organic Food Company, Marketing Plan
I. Executive Summery
Sunny Farm Organic Food Company is a small start-up company which is located in Dalian and now mainly focuses on the market of Northeast China. Sunny Farm sells many kinds of organic food which include grain, vegetables, fruits, dairy, spices, tea, and animal products. Nowadays, organic food’s share of food market is low, but it has a huge potential for development. How to compete and how to gain competitive advantage in this emerging market become the biggest challenges to the company. The primary marketing objectives are to improve the market channel, which can help goods flow more smoothly and reach more audience, and to maintain a good relationship with customers. Since Sunny Farm engaged in food market, which is indispensible in daily life, it is currently considered a business-to-customer marketer. The plan calls for Sunny Farm to engage and capture 20 percent of the Northeast China (three provinces) organic food market.
II. Environmental Analysis
Sunny Farm Organic Food was founded two years ago by entrepreneurs Calais Chen and Lizzie Zhang. Sunny Farm’s products reflect Calais’s and Lizzie’s passion for high-quality food and those products catch up with the trend of green life. Sunny Farm now has many counters in supermarkets and food shops of main cities, Northeast China.
A. The Marketing Environment
1. Competitive forces. The competition in organic food is relative weak in northeastern region compared to middle and southern regions because only a few competitors exist.
The competition within the food industry is intense but still, it’s a market with great potential. Ordinary food is the primary competitor and also the leader; it takes up more than 90percent of market share due to its lower price and mass production. And the less than 10percent market is divided among the existing firms. However, the new industry is developing and full of vigor, more and more competitors are expected to enter the market in the near future. 2. Economic forces. The whole economy environment is quite well. The former economic crisis had little impact on northeast China. People have more money to spend to live a higher standard life. Organic food may be a good choice. Even though its price is at least 30percent higher than same kind ordinary food, it has many incomparable advantages. Recent years, with the change in people’s concept of consumption, they are much more willingly to spend money related to health. 3. Political forces. No.
4. Legal and regulatory forces. In recent years, more attention has been paid to food safety due to negative news. Much legislation has been published to cope with such problems. However, the restrictions put on organic food is much strict than those put on ordinary food. COFCC (China Organic Food Certification Center) is responsible for certification, management, and inspection of organic food, supports for fostering organic food market. 5. Technological forces. Organic food is strong dependent on environment – soil, weather, sunlight, and artificial intervention. The quality of organic food is not as stable as mass produced industrial production.. A major emerging technological trend involves ecological agriculture model, which includes ecological farming, contract farming, food processing, clean energy, organic fertilizer, etc. 6. Sociocultural forces. In today’s society, people earn more and concern more about higher standard of living. Organic food starts getting popular and that fits an overall trend among middle-class Chinese toward buying high-quality products with greater nutritional value and better taste. Organic food also fits in other societal trends: a good choice of giving presents and the need of substantial development, for example.
B. Target Market(s)
As a company which has an advantage in the location, Sunny Farm must adapt to change and market dynamics, segment the market, enforce...
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