Marketing Plan of Notpla Company for Australian Market

This report provides information about the marketing plan developed for the Notpla Company (formerly known as Skipping Rocks Lab.) to sustain the Australian market. Comprehensive approach is given taking into account every aspects of the business factors. The report highlights the PESTEL analysis, competitor analysis and SWOT analysis done on the company. It has discussed the various marketing strategies and campaign evaluation. Furthermore it provides the Budget allocation for the project. A deep analysis on the customer segment is also hereby provided.

Running head: MARKETING PLAN
Marketing plan of the Notpla Company
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Executive summary
This report provides information about the marketing plan developed for the Notpla
Company (formerly known as Skipping Rocks Lab.) to sustain the Australian market.
Comprehensive approach is given taking into account every aspects of the business factors.
The report highlights the PESTEL analysis, competitor analysis and SWOT analysis done on
the company. It has discussed the various marketing strategies and campaign evaluation.
Furthermore it provides the Budget allocation for the project. A deep analysis on the
customer segment is also hereby provided.

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Table of Contents
Introduction................................................................................................................................3
Situational Analysis...................................................................................................................3
PESTEL Analysis...................................................................................................................3
Competitor analysis................................................................................................................5
SWOT analysis.......................................................................................................................5
Customer Analysis.....................................................................................................................6
Segmentation..........................................................................................................................6
Target market.........................................................................................................................7
Positioning and Differentiating..............................................................................................8
Problem statement......................................................................................................................8
Objectives...................................................................................................................................9
Marketing mix strategy..............................................................................................................9
Campaign evaluation................................................................................................................10
Budget allocation.....................................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
Notpla formerly known as Skipping Rocks Lab was co-founded by Rodrigo Garcia
Gonzalez and Pierre Paslier in 2013. They studied Design Engineering at the Royal College
of Art and Imperial College London. They developed a product named Ooho which was
made from seaweed and plants. They joined hands with other chemists and chemical
engineers from Imperial College and started working on a scalable manufacturing
technology. Their product Ooho is an alternate to plastic (www.notpla.com, 2019). It is
biodegradable in nature and edible too. It offers flexible packaging for sauces and beverages
and gets easily decomposed within 4-6 weeks.
This article provides report on the situational analysis using the PESTEL analysis,
competitor analysis and SWOT analysis. It highlights the problem statement, objectives,
marketing mix strategy, campaign evaluation and budget allocation followed by concluding
remarks.
Situational Analysis
PESTEL Analysis
Political impacts: There are various government policies and regulations that can affect the
Notpla business in a positive and negative way. According to the tax regulations, the
company has to bear a reduced rate of 27.5% as compared to the big companies which bears
30% (Haines, 2017). Australia is connected to various organisations like WTO,
Commonwealth of Nations and OECD which can prove to be a benefit for the business.
Economic impacts: In 2018, 12,640,800 people were employed with a minimal
unemployment rate of 5.2% in Australia (Labour Force, Australia, 2019). The goods and
services tax is 10%. It ranked fifth in the Index of Economic Freedom which will provide the

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company the freedom of making economic actions (Acs, Szerb & Autio, 2017). Melbourne
has bagged the first position in the Economist’s 2014 list of most liveable cities in the world
for the fourth consecutive year making it an ideal place to set up the industry. Inflation rate is
also 2-3% and base interest rate is 5-6% (Worldbank Search, 2019). The service sector of the
economy accounts for 70% of the GDP. Australia exports majorly to countries like New
Zealand, Japan, South Korea, US and China providing platform to expand business overseas
(The World Factbook - Central Intelligence Agency, 2019). Up and Downs can be seen in the
recession trend which should be considered as a factor for establishing the company.
Socio-cultural impacts: Australia population was about 23 million in 2018. The average life
expectancy of men is around 80 years and women 84 yrs. It is a multiracial and multicultural
country. The population is divided into three categories upper-class, middle and working
class. They are also identified by sports participation, mannerisms and entertainment. It also
provides scope for higher education. All these factors are all in all good for the business.
Technological impact: Australia witnesses various technological innovations. However,
many university researches struggle for funding. 50% fund is provided by government and
industries provide 40% (Austrade, Australian Government – Austrade, 2019). Sky Ocean
Ventures has invested in Notpla and has helped them in future developments.
Environmental impact: Major climate changes and greater environmental awareness can
become an issue of concern. However, the general shift towards eco-friendly products will
benefit the company. The Protection of the sea Act of 1981 and the protection of the sea Act
of 1983 reflects, how much it is inclined towards environmental protection which is good
sign (Rothwell, & Stephens, 2016). Water is a scarce resource in Australia, its protection and
availability is a major concern.

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Legal impact: Australia maintains bilateral sanctions and UN Security Council sanctions
with various countries. These sanctions include training and financing, import & export
restrictions, travel sanctions etc. furthermore, a company should abide by these measures to
perform well in the market.
Competitor analysis
Notpla is mainly a small packaging company. Its competition is basically from firms
that provide packaging solutions of handy food products like water, juices, cocktails, sauces
and non-food products like screws, nails, hardware etc. These competitor companies offers
packaging solutions by manufacturing durable plastic containers, sachets, drink bottles.
According to a survey, 3,513,100 tonnes of plastics were consumed in Australia which
implies the extent of challenges Notpla has to face (Environment.gov.au, 2019) Researches
are being done to manufacture Bioplastics which can create challenges for the Ooho.
SWOT analysis
Strengths: The material used for packaging is bio degradable in nature. It decomposes in few
weeks (Balasubramaniam et al., 2017). The firm has provided a solution to the heavy usage
of plastics helping in reducing the plastic wastes. The products are made from Notpla, a
material made from seaweed and plants that disappear, naturally. They are edible too. It has
the potential to be cost competitive with the plastic. It is not harmful to the surroundings and
minimizes the waste of packaging the foods. In addition to this, the processing technique
involve is simple and incurs low processing cost (Wei & Yazdanifard, 2014). It also enhances
the effectiveness of the operation and lowers down the processing time. Its usage is very
convenient as the product easily melts down as soon as it comes in contact with the saliva.
The packaging can be customized according to the needs and demands of the market.
Through the customization process, one can easily change the flavours, sweetness and
colours of the product. They can also be odourless, tasteless and colourless. It not only

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provides shell life to the beverages and food but also increases the nutritional value as the
packaging is made of naturally occurring materials (Bourtoom, 2018).
Weakness: This technology is very new to market so there is a chance that people might buy
the product and will lack confidence in using the product. The strength and durability is less
as compared to plastics. The packaging developed is restricted to the packaging of handy
products like sauces, water etc. It is not developed for large size commodities. Single-gulp
water is not everyone will need on a daily basis. Furthermore, the membrane is delicate that it
can pop if tossed in bag or backpack. External packaging might be needed to ensure the
safety of Oohos but at the same time negating its “packaging free” agenda.
Opportunities: Every nation is encouraging the non-usage of plastics. This will boost the
success of the organisation. The food packaging industry is big and have bright future in them
coming days. Consumers nowadays are very much concerned regarding the environmental
issues. And would surely be motivated and inspired by the green technology and green
products. Because of the compactness of ‘Oohos’, they can be used to replace pizza dipping
sauce and ketchup sachets. Delivery Company like ‘Just Eat’ is implementing the use of
Oohos. Threats: New competitors will face challenges in this field. The rivals can use the
same formula to produce similar packaging by using fruits or vegetables in the manufacturing
process. Furthermore, there is culture of unwrapping and throwing the packaging before
eating. So, changing this attitude would pose a threat. Also the packagings are mainly
composed of seaweeds and plants, the environmental activists and organisation can pose a
threat to the company because seaweed extraction can hamper the aquatic ecosystem.

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Customer Analysis
Segmentation
Segmentation is the method of differentiating customers according to their needs.
These eco-friendly products are very much popular among people who practises green
lifestyle. The Green lifestyle can be categorised into three main categories (Awad, 2015):
 Dark green lifestyle ( 8%-10% of people)
 Light green lifestyle (20%-40% of people)
 Uncommitted lifestyle (60%-80% of people)
People who have undergone high education are the ones who are inclined towards a
greener environment and live the Dark green lifestyle. Their age criteria ranges from 20-39.
Their job qualification is high and has a handsome salary package (Lavelle, Rau & Fahy,
2015). People of this category understand the sense of social responsibility and are highly
active in green lifestyle. They are very much concerned about the pollution and always try to
support the government in their green initiatives.
People in second category have a higher average age and their income and educational
levels are moderate. Their notion is that it is the government’s responsibility to look after the
sustainability of the environment. They do support green products usage but would not like to
increase their expenses by purchasing green products. Light consumers consider green
products expensive and call them products of inferior quality.
The third segments constitute the “uncommitted green”. These groups have low wages
and have pursued low educational qualification (Schwarzinger, Bird & Hadler, 2019). They
do not show have concern related to environmental issues and their knowledge base is
superficial. They do not care about the ecosystem and their purchasing behaviour doesn’t
include ecological preservation.

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Target market
The primary focus of the business will be the customers of the dark green segment.
They are conscious about the green products and have high purchasing power. They are eager
in buying eco products. However, an extreme image should not be created of the product that
it is only meant for environmental extremists. The motive is to deliver and inform the other
segments (uncommitted and light green customers) about the green product and to encourage
them to use them.
Positioning and Differentiating
The Ooho provides flavours to food and also offer health benefits. It has
revolutionized the way that we consume beverages and foods. The customers should be able
to differentiate between Oohos and biodegradable plastics. Though both the products are
degradable, but the Oohos is more valuable and can be easily customized according to the
market demand.
The potential targets will be people of all age groups. Food and beverages as well as
pharmaceutical companies are also the target customers. There are many other edible coating
manufactures which uses materials like Proteins, lipids, surfactants etc (Shit & Shah, 2014).
So, it is affordable by people who have low wages. This will make the company easier to sell
their product as it is eco-friendly.
Problem statement
Following are the problems the product can face when introduced in the Australian market in
2019:
 The product will take a long time to get a stronghold in the market because the
amount of plastic bottles that is in circulation in the market is very high. So, it will
take time about two decades or so.

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 Plastic packaging serves various purposes very well. So, it will be challenging to
provide alternatives that will offer same advantages.
 Plastic packaging triples the shelf life of perishable products. Providing an alternative
can increase more food waste problem which can be a problem for the ‘Ooho’.
 Retailers and suppliers provide value to the organisation. Building a strong network is
one of the key challenges to circulate the product.
Objectives
1. To provide ethically, fairly priced and wholesome diverse edible packaging products
2. To make available various range of biodegradable packaging products.
3. To provide efficient customer service to enhance productivity by focusing on market
demand
4. To establish high quality job opportunities
5. To curb the environmental pollution and ecological issues
Marketing mix strategy
Product specifications: The product is edible and bio degradable in nature. It is made of
Notpla, which is a material made from seaweed and plants. It is compact and easy to carry
and can contain sauces, condiments, salad dressings weighing from 10-60ml. Oohos can also
carry drink juices, alcohol cocktails and water at private parties and festivals.
Pricing: According to the reports, the Production cost is 1.5p per 25cL Ooho. Profit of
£288,000 is earned per year per truck. However, the pricing is dynamic and depends on
various internal and external factors. So, it is not necessary that it will be cheaper than normal
goods and fall in the affordability section.
Promotion: The Advertisement of the Oohos should be focusing on the green properties,
convenience and uniqueness of the product. Customers should be made aware of the

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advantages and benefits the product is giving to the food industry and the society. In this era
of societal marketing concept, the business strategies can easily be implemented (American
Marketing Association, 2016).
Place: Grocery stores and supermarkets is best suited for selling the products. An intensive
distribution channel is also required supported by good network of retailers and suppliers.
Campaign evaluation
Monitor customer feedback: Polls and surveys can be conducted to get the customer’s
feedback. Feedback can be gathered by online polls and interviewing individuals.
Target market sales: This can be measured in units sold, profit amount or revenue
generated. The Actual sales than can be compared to the expected marketing plan sales.
Budgeting and Monitoring Spending: Marketing budget is called as the balance between
the revenue generated by marketing plan and cost of manufacturing the advertising product
(Rubin, 2019). The factors include cost of research studies, print advertising expenses,
internal personnel costs etc.
Market Share Milestones: The percentage of product domination in the market should be
compared with projected market share. If it hasn’t reached any milestone, then the marketing
plan has to be analysed.
Budget allocation
It becomes necessary to maintain as well as increase the profitability of company with
respect to its product Ooho. Approximately 5-12% of gross revenue will be generated. This is
because company includes its loyal clients and marketing strategies used will retain them.
Expenses in the form of cost should be incurred as budget to bear with the advertising and
promotion platforms (Soma et al., 2014). Expenses incurred will be for social media

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marketing and even physical marketing materials. Campaign used by the company for its
product Ooho bear high cost in the budget but will yield higher return on investment.
Apart from the above there will be some hidden cost to be bared for product Ooho
that would also effect return on investment of company and there would be clear
understanding about how much more to spend as cost in the form of expenses. Hidden cost
will be in the form of expenses for hiring of agent for execution of campaign. Funds will be
allocated for creating awareness as well as retargeting. Remaining funds shall be allocated
several marketing tool for promoting Ooho- social media and CRM. Moreover, company
should have goal for allocation of funds with respect to total revenue, profit, number of units
of its product sold. The more tactfully company allocates its fund into its budget the higher
will it earn return on its investment and that would be increasing its profit percentage.
Conclusion
Ooho, an edible packaging is a revolutionary concept that will open new opportunities
for the food processing industries. It carries the potential for growth and success thereby
adding value to the society and stakeholders. It’s a great alternative to plastics and also
motivates the green marketing model. There are various benefits associated with it and does
no harm to the surroundings.
Awareness must be created among the customers. Various shades of customers are
identified using the segmentation. The external factors i.e., political, economic, socio-
cultural, technological, environmental and legal factors that can affect the business are
discussed in details. The business should target the dark green customers who are active in
the environmental issues and have high purchasing power. The technology developed is new,
so many competitors are likely to enter the market. The pricing is dynamic and finally, the

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product should be able to create a mindset that edible packaging is safe, nutritious and
safeguards the environment.

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