Marketing Plan for Organo Store's New Organic Food Products

This report describes the concept of marketing plan that has been prepared by Organo Store to offer their newly introduced products i.e., organic food items within the marketplace in order to enhance their profit margin within the market place. It includes business overview, summary of fixed and variable costs, profit forecast, cash budget, break even analysis, KPI, conclusion and recommendations.

Business plan

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Business Overview......................................................................................................................3
2. Summary of fixed and variable costs...........................................................................................6
3. Profit forecast.............................................................................................................................10
4. Cash Budget...............................................................................................................................10
5. Break even analysis...................................................................................................................12
6. KPI.............................................................................................................................................14
7. Conclusion and recommendations.............................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
A formal business plan is a written document that is consists of the organizational goals and
objectives of the firm. Their main purpose is to create an effective strategy for the expansion and
growth of the organization (Ycedo, 2020). Another function is to determine future financial
requirements along with attract various investors towards the firm to sustain within the
competitive marketplace.
This report will describe the concept of marketing plan that have been prepared by the firm
Organo Store in order to offer their newly introduced products i.e., organic food items within the
marketplace in order to enhance their profit margin within the market place.
Executive Summary
The marketing plan can be prepared with the help of certain documents within Organo
Store which provides right direction to the firm so that they can achieve its desired objectives
and goals in most appropriate manner. Current marketing plan has been prepared with an
intention to introduce organic food products within the market space of UK in order to provide
health benefits to the consumers as well as fulfil their company ambitions.
1. Business Overview
Organo store is a UK based firm having various numbers of stores and dealing in retail
industry offers various kinds of goods and services. In order to survive in the competitive market
space, the company wants to expand its business with introducing new and innovative organic
food products in order to satisfy the advance age requirements of the customers (Jiamburapalert,
2018). The products Organo intended to sell in the UK market is food products which are
organic and nutritious. The organic food products of Organo includes vegetables, cereals and
fruits. Further, the services that company will be planning to offer to their customer is doorstep
delivery and online payment facility. Selecting market group is also one of the key strategic step
which need to be taken for the successful expansion of the business. The market group of Organo
store for its nutritional and organic food products is all individual age between 3 to 60 years
especially children age 3 to 10 years. The annual market size of Organo retailer is 5.7% as
compared to other competitors dealing in retail industry of UK. For instance, the market size of
Tesco Plc is 27.9% (Desquilbet, Maigné and Monier-Dilhan, 2018). The level of competition in

UK retail industry is high and the closet competitors of Organo store is Tesco plc, Sainsbury,
Unilever, M&S etc.
The cost leadership strategy will be adopting by the company to set low price for its
products and service as compared to the prices set by competitors. Hence, the low price of the
food products with proper quality maintenance is the key for which customer will by organic
food products offer by Organo. The business is located on 10 Downing street, SW1A 2AA,
London, UK. The sources of finance from where the company will acquire funds for the purpose
of its product expansion is Bank loan, own capital etc. The initial funds be used to manage day to
day activities of the business is £10000 (Jiamburapalert, 2018). The possible business risk that
Organo might face during the product expansion is poor accessibility to finance, lack of
management commitment or support, market uncertainties, changing customer demand etc. This
risk has to be manage by the company for the purpose introducing organic food products for the
customer in smooth manner.
SWOT evaluation
Strengths
 Highly satisfied consumers.
 Growing market share.
 The strong brand image within the
marketplace of United Kingdom.
 Good distribution network.
 Innovative ideas and tips in order to
have high customer engagement.
 Online purchase services are available
for consumers.
Weaknesses
 Poor access to financial resources.
 Lack of human resources.
 Primary focus should be completely on
grocery items according to the desires
of the customers.
Opportunities
 Growth rates and profitability.
 Company can also be able to provide
advanced organic products in other
household items.
Threats
 The discounting strategies of other
competitive firms.
 Rising cost of raw material for the
production of organic products.
 Governmental rules and regulations

along with unexpected problems.
PESTLE analysis
Political
 Brexit highly effects the business
operations all over the UK.
 Innovative policies and regulations
regarding trade.
 Unclear legislations on the organic
products.
Economical
 Wage enhancement within the UK.
 New openings for employment
opportunities.
 Fluctuation in inflation rates along with
consumers spending.
Social
 Increased demand of organic products
and items in current generation.
 Changes in customers preferences.
 Increased premiumisation of goods and
services.
Technological
 Promotions to use on demand click list.
 Requirement for user friendly interface.
 Beating the power of innovation within
the offered products.
 Addition of more convenience with the
help of advanced technologies.
Legal
 Litigation and lawsuits.
 Changes in tax rates and savings.
Environmental
 Zero emission and waste production
programs are highly required during the
production procedure.
 Limited number of natural resources
are available.
Segmentation, Targeting and Positioning
With the help of the effective business analysis tool, the Organo Store is able to set their
successful segmentation, positioning as well as targeting strategues which have been explained
below:
Segmentation: In order to segment the market, the company divide the market according to the
demographic as well as geographical factors because it enables the firm in segmenting the

market in most appropriate manner. The company selects the people according to their
preferences and the type of lifestyle they want to spend with the usage of healthy food items in
the form of organic food products. They utilise geographic segmentation in order to produce and
offer their products and services within the marketplace or among the selected segmented people.
Targeting: Aiming refers to the term of focusing on the particular group of consumers who have
the opportunity or chances to make a purchase of goods and services form the organization. The
marketing managers of Organo Store are very carefully focuses on certain kind of groups of
people. It brings the firm under such situation so that the firm can derive best possible value of
their offered goods and services (Aguirre Plasencia, 2019). For better business expansion, it is
significant for the firm to target only those people who are able to provide huge amount of profit
margins to the establishment such as more health-conscious people.
Positioning: It is the process of deriving the market into such a place in which the firm is able to
get or obtain desired results. In order to attract the targeted people or targeted customers, The
Organo Store takes help of different promotional and advertisement tools along with certain
programs that enhances the awareness of organic food items within the society and the people
who are highly in demand of healthy food products.
2. Summary of fixed and variable costs
Fixed and variable are the two types of cost which company have to incur for producing any
products. The various fixed and variable cost that Organo store need to incur for producing three
products such as cereal, vegetable and fruits.
Variable Costs:

Interpretation: On the basis of the above calculations, it is identified that the variable cost
of producing cereal products is £34.75, vegetables is £28.075 and fruits is £63. The variable cost
per unit changes with the change in the number of units sold by the company (Martinho, 2020).
Fixed Costs:

Interpretation: On the basis of the above calculation, it has been summarized that the fixed
incur by Organo company is £73000 (Martinho, 2020). The fixed cost will remain same over the
year without any change in the number of units sold by the company.

3. Profit forecast
Comment: On the basis of the profit forecasting of Organo new organci food products over
the twelve months, it is analysed that the gross profit and net profit margin of company will be
50% and 49% respectively. This indicate that the company’s ability to generate high return from
its sales revenue via minimizing variable and fixed cost is high. The overall performance of
Organo new organic food products is good (Sondhi, 2017).
4. Cash Budget

Comment: Cash budget helps the company to analyse the cash management performance of
company. After analysing the monthly cash budget of Organo company, it is analysed that the
ability of company to manage the cash inflow and outflow within the company is best. It is
because the total cash inflow of company is higher than the cash outflow resulting positive
closing cash balance at the end of each month. This indicate that overall performance of
company is good (Ycedo, 2020).
5. Break even analysisBreak even calculation of Organo stores new organic food products are as follows:

Interpretation: Break even point is the sales point of the company’s products which state the
number of units at which company will neither earn profit nor it will incur any loss. The break
even point is a no loss no profit point of the company which helps Organo stores to decide
whether the organic food product is profitable for the company or not. Based on the above
calculation, it has been analysed that break even sales unit of Cereal product is 672 units,

vegetables is 1024 units and fruits is 377 units. So, in order to earn profit, the company should
sell more than the break even sales unit of organic food products (Salvador Laudenia, 2019).
6. KPI
The various financial and non-financial key performance indictors with the help of which
Organo company will analyse its success are as follows:
 The aim of Organo company is to achieve customer retention rate by 20% by the end of
the first year of introducing new organic food products. If the company able to achieve
the rate of customer retention by 20% than it might be declare that the launching of new
organic food products is successful.
 To increase the sales revenue of Organo company by 25% within the one year is a
financial goal of company which is measure with the indicator of change in sales revenue
rate (Jiamburapalert, 2018).
 To engage in social media marketing is a non-financial goal of company which is
measure through social media engagement rate of company.
7. Conclusion and recommendations
From the above report it has been concluded that the company has to come up with good
marketing plan and strategies in order to implement the new product in this competitive
marketplace. With the sound marketing strategy and planning, the Organo Store is able to expect
a good performance from their offered goods and services i.e., organic food items.
Further, to mitigate the risk of business, the following recommendations is provided to company:
 To start own online store to enhance the customer base and sales of its organic food
products.
 The social media marketing is also need to be adopted by company to mitigate the risk of
market uncertainties and changing customer demand.
 Further, it is also recommended to the company that they should provide training to
management to keep themselves motivated and engage in expansion (Aguirre Plasencia,
2019).

REFERENCES
Books and journals
Aguirre Plasencia, G., 2019. The Green Marketing Mix and its influence on organic (green) food
consumption: A study from the food retailer perspective.
Desquilbet, M., Maigné, E. and Monier-Dilhan, S., 2018. Organic food retailing and the
conventionalisation debate. Ecological economics, 150. pp.194-203.
Jiamburapalert, E., 2018. The marketing plan for a logistics service probider (Nippon Express) in
Thailand.
Krishna, R. and Balasubramanian, P., 2018. The significance of factors influencing consumer
behaviour towards organic food products in Kochi. International Journal of Pure and
Applied Mathematics, 119(12). pp.2641-2665.
Martinho, V.J.P.D., 2020. Food marketing as a special ingredient in consumer choices: the main
insights from existing literature.
Foods, 9(11). p.1651.
Salvador Laudenia, J., 2019. Marketing plan for Inmatex fabrics factory.
Sondhi, N., 2017. Consumption of organic food products: An emerging market
perspective. International Journal of Management Practice, 10(1). pp.30-48.
Ycedo, J., 2020.
Development of a Marketing Plan for a Concert & Events Promotion
Company (Doctoral dissertation, California State University, Northridge).
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