Strategic Marketing - Objective Planning for Cheese company

Objective Planning
Student’s Name
Department, Institutional Affiliation
Course Name and Number
Instructor’s Name:
Assignment Due Date
Table of Contents Cheesseen Company....................................................................................................................... 3 Macro Marketing Challenges........................................................................................................ 3 Macro Marketing Challenge I...................................................................................................... 3 Rationale............................................................................................................................................................................... 4 Macro Marketing Challenge II..................................................................................................... 5 Rationale............................................................................................................................................................................... 6 Market Segmentation..................................................................................................................... 8 Macro Market Segment................................................................................................................ 8 Micro Segment I........................................................................................................................... 8 Characteristics..................................................................................................................................................................... 8 Position Statement.............................................................................................................................................................. 9 Micro Challenge I............................................................................................................................................................... 9 Rationale............................................................................................................................................................................. 10 Micro Segment II........................................................................................................................ 11 Characteristics.................................................................................................................................................................. 11 Position Statement............................................................................................................................................................ 12 Micro Challenge I............................................................................................................................................................. 12 Rationale............................................................................................................................................................................. 13   References..................................................................................................................................... 15
Cheesseen Company
Cheesseen is a cheese production company. The company produces cheese and cheese products on its ranch. The cows in the ranch are fed on organically farmed greens, with half the ranch being a farm for cow feeds. As the company is starting up, it needs to create a brand that can attract customers and create its own market share. Cheesseen company prides itself on producing the highest quality cheese in the industry.
Macro Marketing Challenges
Macro Challenge
To create awareness of the new cheese products from Cheesseen and have a market share of 20% in the local shopping center by the end of the first quarter.
INTERNAL
EXTERNAL
P
O
S
I
T
I
V
E
Strengths:
* Cheesseen has good cheese products without any chemicals that other companies have in their products due to animals using many chemicals in their growth.
* Cheesseen has its ranch, reducing the cost of production.
Opportunities:
* If the company achieves a minimum of 20% market share, it can expand to other areas and cities using the revenue obtained from local sales.
* If the company achieves a 20% market share, it will help the business increase its employees, marketing, and advertisement, leading to more sales.
N
E
G
A
T
I
V
E
Weaknesses:
* The cheese products from Cheesseen are new, and they need to create a name for themselves.
* It is hard for Cheesseen to penetrate the market and gain customer trust in cheese production.
Threats:
* If the competitors strengthen their advisement simultaneously as the company starts production, then the company will have a hard time winning customers.
* If Cheesseen does not have a market share of 20% at the end of the first quarter, expanding will be difficult, and the company will have to be content with supplying to the local area.
Rationale
Strengths
Cheesseen has a ranch where all the cheese products will be sourced from. The ranch was established five years ago, and most cow feeds are grown in half of the ranch. The ranch owner has 50% of shares in the company, with the other 50% owned by the investor who bought production equipment and transport vans. The cow feeds are grown without chemicals, making the cow products from the ranch natural. The cheese, therefore, has few harmful substances that can result from cow feeds with chemicals. In addition to healthy natural cow products, the ranch reduces production costs since all raw materials are already present. Therefore, the ranch will lower the cost of production and thus lower price, offer quality cheese that the local people know the source which can result in higher sales within a short period.
Opportunities
Getting a 20% market share in the local cheese market will give the company enough revenue to increase production without additional capital from the two owners, making the company rely on its income rather than cash injections. Also, the increased revenue can be used for advertising to help introduce the products in new markets, in other regions, which will increase production and therefore more revenue. The advertising will, in turn, be spread over a large sale, decreasing in cost per sales (NiBusiness, n.d.).
Weaknesses
It is hard to gain market share in the short run for new products from a new company. Without the market share, the company will not survive for long as the company's growth depends on the local sales for expansion to other regions. There are existing brands in the cheese industry that offer stiff competition to startups and other companies due to their large scale of production.
Threats
If the company does not have at least 20% of the market share, it will incur financial problems that will hinder its growth in the short run. Without growth, the company will have to be content with supplying the local area and thus not be profitable.
Established cheese companies offer competition, and any strong marketing in the short run may overshadow marketing by Cheesseen and thus negatively affect market penetration. Without the market share, the company will not make enough revenue to run the company.
Macro Challenge II
Expand the company from the local town to the entire city in the next twelve months, with projected revenue of $ 600,000 in the first financial year.
INTERNAL
EXTERNAL
P
O
S
I
T
I
V
E
Strengths:
* The company will be depending on its transportation and supply chain.
* Cheesseen has vast land in a different region that it can use to start another ranch that can act as the production and distribution center.
Opportunities:
* If the company achieves the targeted revenue, it can offer more cheese products in the market.
* If the company achieves its goals, it can expand to offering other dairy products in the already established market, giving it more revenue and customer base.
N
E
G
A
T
I
V
E
Weaknesses:
* Entering new markets will require more advertising and marketing, reducing the expected revenue in the short term.
* Gaining a market share away from home, where the company is based, is an uphill climb, as many customers are not familiar with the product.
Threats:
* If the company does not meet the target revenue, it may inject more capital into the business, which will require adding another investor to the business.
* A company's weakness due to funding can cause the company everything, as it is dealing with consumable products.
Rationale
Strengths
Cheesseen has a large tract of land in the neighboring city, which can be used as a warehouse and distribution center in the short run. In the long run, the land can be converted into another ranch, giving the company the advantage of low production cost and as a backup to mitigate the company from natural calamities in one region. With different production zones, the company can share products, information on best practices, research, and development. The two regions can also support each other when one area faces hardships such as lack of water, fire, or pandemics that can impact the transportation of products or raw materials due to lockdowns, as we are currently witnessing.
Opportunities
Cheesseen is offering cheese and cheese products in the market. In case the company achieves the expected revenue, it can divers...