Marketing Plan for Nature Valley Energy Bars

This marketing plan is dedicated to the new product launch of Nature Valley Company. The product designed for this new venture in organic Energy Bars. The market for organic foods has increased in the Australian markets. But the new generation is tend to be attracted by the products that are less time consuming and more effective. This is why the protein and energy bars and drinks are capturing the market day by day. This report would present the background and analysis of the present market position of the company and how the new plan would be implemented in the context.

Running head: MARKETING PLAN
MARKETING PLAN
Name of the Student
Name of the University
Authors note

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MARKETING PLAN
Executive Summary
This marketing plan is dedicated to the new product launch of Nature Valley Company. The
product designed for this new venture in organic Energy Bars. The market for organic foods
has increased in the Australian markets. But the new generation is tend to be attracted by the
products that are less time consuming and more effective. This is why the protein and energy
bars and drinks are capturing the market day by day. This report would present the
background and analysis of the present market position of the company and how the new plan
would be implemented in the context. The objectives of the new launch, as well as the target
consumers, would be discussed. This is an overall market plan for the new Nature Valley
Energy bars which would consist of the positioning, marketing price, product, delivery and
place. The estimated profit for this new project is calculated as $ 22,000.

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Table of Contents
1. Current situation.........................................................................................................3
2. Objectives...................................................................................................................3
3. Target market.............................................................................................................4
4. Marketing strategies...................................................................................................5
4.1 Positioning............................................................................................................5
4.2 Product.................................................................................................................6
4.3 Price......................................................................................................................7
4.4 Placement.............................................................................................................8
4.5 Promotion.............................................................................................................8
5. Marketing implementation.........................................................................................9
6. Budget......................................................................................................................11
7. Evaluation and control.............................................................................................11
References....................................................................................................................14

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1. Current situation
 Background: The new product would be launched for Nature Valley Company to
achieve more sustainable markets. The product would be the energy bars of organic
ingredients. The Australians are tending to use more organic foods as they are healthy
and far less harmful compared to the regular foods available in the market.
 Environmental Analysis: The macro and Microanalysis of the business environment
for organic food in Australia shows that the demand for this type of readymade source
of energy is increasing day by day. Therefore, it has a favourable environment for
organic energy bars launching in the target market.
 Market and customer analysis: The market of organic foods have grown by 9.8 %
in the year gap 2017-18, and it would be one of the most popular choices by the year
2021. Australia is a potential market for organic food bars as it has enough organic
farming resources and huge demand for the products among the customers.
2. Objectives
The mission of Nature Valley is to provide quality products more a more sustainable
future. The objective of new energy bars has been fixed in SMART methods. These
objectives are divided into financial, marketing and sustainable aspects.
Financial Objectives
 To achieve a sale revenue of $ 1.5 billion within the three years of product launch.
 To increase the growth of the company by 5% in a year and 15% in five years.
Marketing Objectives
 The total time span for achieving the objectives and goals for the new product would
be five years.

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 To capture about 5% of the market in energy bars segments by third years of the
launch.
Sustainable Objectives
 To ensure a decrease in the carbon footprint of the company by 15%
 To enhance the sustainability factors of the company by offering organic foods in bio-
degradable packaging.
 Reducing the production waste by 25% within a year
 Contributing 5% of the total profit in social construction works.
3. Target market
Segmentation
Demographic Age
 Children above three years
 Adults within the age group of 25-55 years
 Youths in the age group of 14-26 years
Gender
 Male and female both
Occupation
 Public sectors workers
 Private sectors employees
 People who stay at home
Psychographic Life style
 People with busy lifestyles
 People who exercise regularly and are health-conscious
 Women who are concern about their family health but

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have less time for cooking
Food habits
 People preferring organic foods
 People who do not have the idea of organic foods
 People who want to consume safe and healthy in a short
time (Mujanovic and Damnjanovic 2018).
Table 1: segmentation table
(Source: created by author)
The target people for this product would be the one who wants to adopt a healthy lifestyle by
investing minimum time for their decision making. As pined by Wang and Zeidler (2019),
Australian people do not want to cook their foods as they are living a busy life. The parents
who are the concern about their child health and want to avoid foods with pesticide effects
are apt for this food choice. The energy bars are easy to consume and works instantly as an
energy supplement.
4. Marketing strategies
4.1 Positioning
The product of Nature Valley is known for its quality and price. For the new product,
the same policy would be implemented. The product would be differentiated in the market of
organic food bars through its quality, taste and flavours. The price of the bars would be
moderate. It would be positioned in a way that would provide the customers with high quality
and low price (Luxton, Reid and Mavondo 2015). The competitive advantages would be
gained through its impressive nutrition value and intensive quality.

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Figure 2: Positioning map of Nature Valley organic Energy bars
(Source: Created by author)
4.2 Product
Nature of the offer: the product is designed to offer the customers with instant
energy bars in two flavours- mango and raspberry. The nutrition value of the product would
be high with protein and carbohydrate ingredients made with organic resources.
Level: it is an actual product offering.
Type: the type of this product is consumer good. The energy bars are food products.
USP: The USP of this product is its organic origin, availability in flavours and the
reasonable pricing.
Brand perception: Nature Valley is the popular choice of customers who want to
consume organic products. The company is known for the quality organic food offerings. The
organic granola bars of this company is one of the highest consumed food bars in Australia.

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The loyal customer base is remarkable for this company, and this could help in the promotion
of the new energy bars (Schoenherr and Swink 2015.).
4.3 Price
Pricing goals
The pricing goals for the company product is set according to the sale-orientation
(Calantone, Di Benedetto and Rubera 2018). The quality maintenance of the product would
be the main concern, along with increasing the sale in the first five years.
Demand, Cost and profits
The marketing research has given an out view of the demand for the products. At the
first lot, the cost and pricing status would be like this-
Cost (Per unit/10gm) $ 2.8
Price (Per Unit/10gm) $5
Profit (per Unit/10gm) $(5-2.8)= $2.2
Pricing strategy
The pricing strategy is developed depending on market penetration. The price has
been fixed in a way that would not be heavy in the customers pocket and would also maintain
the quality positioning in the market (Viio and Nordin 2015).
Fine-tuning the Price
The basic price would be reviewed after the six months span to understand if this is helping
in the marketing process. If the price is proved to be higher, the profit margin could be
lessened, and the price could be fine-tuned accordingly.

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4.4 Placement
Channel structure: Both direct and Indirect. The supplies of the raw materials would be
gathered directly from the farmers and sent to the manufacturing units of the company (Wang
and Shaver 2016). On the other hand, some of the ingredients need to be channelised through
the suppliers.
Distribution Intensity: At the first phase, the product would be distributed only in the
selected outlets of the Nature Valley. After a year it would be available in other stores as
well.
Logistic Services: The supply chain of this product would be based on market factors. The
manufacturing and supply of the products would be depended on the demands of the
customers. The company would try to have the best deal with the logistics partners and
minimise the Cost mainly through direct supply chains.
4.5 Promotion
Target audience: Australian people with hectic jobs, housewives, children and college goers,
sportspersons, work out persons.
Communication goals: The store managers would give an intensive, detailed presentation of
the new product benefits to the customers who are visiting the stores (Kettunen et al. 2015).
Advertisement in the TV, Radio and websites would communicate the product specialities as
well.
Message design: The store representatives must be consistent in their approach and introduce
the product features with the visiting customers.

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Promotional mix:
Medium Objective
Social media  Introducing the product to the people
visiting the website, Facebook page
and YouTube page of the company
 To gather feedback from them
 To inform them of the offers and
promotional discounts on the
product
TV and Radio Ads To introduce the product and its
advertisement in these media.
Newspaper advertisement  Big ads to attract people attention
 Informing them of the new discounts
or offers on the product.
Table 2: a promotional mix of Nature Valley Energy Bars
(Source: Created by the author)
5. Marketing implementation
Steps Date Responsibility Total
Expenditure
Product Product
designing
12-15 Oct.
2019
Marketing unit $ 8000
Product
manufacturing
16- 30the Oct,
2019
Manufacturing
unit

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Product
presentation
From 20th Oct
onwards
Marketing Unit
Price Setting the
price
13-15th Oct Finance
department
$ 500
Evaluating
the price
Every three
months
Promotion Posting
advertises in
different medias
20th Oct – Sep,
2020
Marketing team $ 1500
Reviewing
the feedbacks
Every three
months
Evaluating
media promotions
Every three
months
Place Selecting the
suppliers
13th Oct 2019 Marketing and
sales team
$ 7500
Contacting
them
13th Oct 2019
onwards
Storing
inventories
20th Oct
Onwards

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Supplying
them in the stores
25th Oct, 2019
onwards
6. Budget
The estimated budget for this new venture is stated below-
Revenue expected by the end of the year ($5* 8,000)=$ 40,000
Cost of production $9000
Cost of Distribution $ 7500
Marketing costs $1500
Projected Profit $40,000-(9000+7500+1500)= $22,000
7. Evaluation and control
The evaluation of the performance would be evaluated against the set objectives
 Financial: the sales and profitability number would be evaluated at the end of the
year. The finance department would also keep track of the quarter sales number and
ROI (Kettunen et al. 2015).
 Marketing
o Consumer attitudes towards the brand and how much they are satisfied with
the products would be a regular evaluation. The stores representative would
request the customers to give their feedback through a form. In online media,
the comments and rating systems would be implemented. There would be
evaluated in every three months.

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o Consumer behaviour changing would be evaluated by mapping the number of
new customers who show interest in new energy bars.
o At the end of the year, the increase in market share would be estimated against
the projected market share goals.
 Sustainability:
Issues like reducing waste, carbon imprint and recycling methods would be the
sustainability evaluation yardstick. This evaluation would be done quarterly, and new
methods would be implemented for better results.

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Self-assessment
A marketing plan is a complex idea as it has various aspects in its exposure. I do not have any
idea of how to build a marketing plan before I started working on this project. I have learnt
about the steps of marketing planning like product development; pricing set up, promotional
mediums and distributional channels. I have known how to set the estimated budget and the
promotional tactics a company could use to promote its products. Evaluation is the most
important thing in the process. I think evaluation gives the company the idea of whether their
plan is fruitful or not. Besides, our teamwork was intact and motivational. I have learnt a lot
during this report building.

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References
Calantone, R.J., Di Benedetto, A. and Rubera, G., 2018. Launch activities and timing in new
product development. Journal of Global Scholars of Marketing Science, 28(1), pp.33-41.
Iliev, P., 2019. CONTROL AND AUDIT IN MARKETING — challenges of the Knowledge
Society, pp.1053-1056.
Kettunen, J., Grushka-Cockayne, Y., Degraeve, Z. and De Rick, B., 2015. New product
development flexibility in a competitive environment. European Journal of Operational
Research, 244(3), pp.892-904.
Luxton, S., Reid, M. and Mavondo, F., 2015. Integrated marketing communication capability
and brand performance. Journal of Advertising, 44(1), pp.37-46.
Mujanovic, E. and Damnjanovic, A., 2018. MARKETING MANAGEMENT AND SOCIAL
ENTREPRENEURSHIP. Economic and Social Development: Book of Proceedings, pp.77-
88.
Schoenherr, T. and Swink, M., 2015. The roles of supply chain intelligence and adaptability
in new product launch success. Decision Sciences, 46(5), pp.901-936.
Viio, P. and Nordin, F., 2015. When does the implementation of relationship orientation in
new product launch matter?. Industrial Marketing Management, 45, pp.47-48.
Wang, K. and Zeidler, T., 2019. The practice of content marketing strategic planning.
Wang, R.D. and Shaver, J.M., 2016. The multifaceted nature of competitive response:
Repositioning and new product launch as a joint response to competition. Strategy Science,
1(3), pp.148-162.