Marketing Plan for Doorstep Organics: Strategies and Implementation

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AI Summary
This marketing plan report focuses on Doorstep Organics, an Australian organic food delivery service. It begins with an executive summary, detailing the company's objective to provide quality organic products with same-day delivery to the middle and high-income class. The report includes an environmental analysis covering internal and external factors, followed by a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The marketing strategy section outlines marketing objectives, target market, and marketing mix elements such as product, pricing, distribution, and promotion strategies. The implementation, evaluation, and control aspects of the marketing plan are also discussed, leading to a conclusion that emphasizes the importance of promotional strategies and product range expansion. The plan aims to leverage opportunities within the Australian market, analyzing various aspects to ensure Doorstep Organics' success in a competitive environment. The report also includes an overview of the Australian market and company background, customer environment, and competitive advantages.
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RUNNING HEAD: MARKETING MANAGEMENT
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Marketing Plan
For Doorstep Organics
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Executive Summary
The report focuses on the marketing plan of Doorstep organics that offers organic food delivery
in Australia. The company focus is on making people aware about the benefits of consuming
organic products. As in the upcoming years the demand for organic product will be more that
will be a beneficial scenario for the company.
Doorstep Organics objective will be to provide quality of organic products to the middle and
high income class people with the same day delivery option. In time the brand will represent the
quality of life. The report includes the environmental analysis of the company that consists of
internal and external factors. SWOT analysis helps in identifying the strengths of the company
and weaknesses so that company can use it to the greater extent with the opportunities in the
market.
Furthermore report consist of marketing mix for the company in which all the strategies for the
long run is discussed including pricing strategy, promotion strategy, product strategy and
distribution strategy for doorstep organics and at the last marketing plan implementation and
evaluation is done. The report provides the understanding of concept of marketing management
and its implication in the present scenario so that all the aspects become clear in practical
perspective. At last it is concluded that company needs to focus on their promotional strategies in
starting and invest in advertising and social media marketing. Whereas the product range is
limited but after knowing the customer needs that also will be increased and many other organic
product will be included. The main motive or mission of doorstep organic will be fulfilled as
there are lots of opportunities in the Australian market that is analyzed through external
environment analysis. So for success of doorstep organics in this competitive market a marketing
plan has drawn keeping in mind all the important aspects.
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Table of Contents
1. Introduction.............................................................................................................................................3
2. Company and Industry Background.........................................................................................................4
3. Environment Analysis: Internal, External and Customer.........................................................................4
4. SWOT Analysis.........................................................................................................................................6
5. Marketing Strategy..................................................................................................................................7
5.1 Marketing Objectives.........................................................................................................................7
5.2 Target Market....................................................................................................................................8
5.3 Marketing Mix...................................................................................................................................9
5.3.1 Product Strategy.........................................................................................................................9
5.3.2 Pricing Strategy.........................................................................................................................10
5.3.3 Distribution Strategy.................................................................................................................10
5.3.4 Promotion Strategy...................................................................................................................11
5.3.5 People, Place and Physical evidence.........................................................................................12
6. Marketing plan implementation, Evaluation and control......................................................................12
7. Conclusion.............................................................................................................................................13
8. References.............................................................................................................................................15
9. Appendices...........................................................................................................................................17
Appendix 1.............................................................................................................................................17
Appendix 2.............................................................................................................................................18
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1. Introduction
Marketing plan is the planning for the upcoming years so that a company can take necessary
steps in a systematic manner. A marketing plan includes the overall goal or objective of the
business, analysis of the market situation, key strengths and weaknesses of the business in
current scenario, key performance indicators and a broad view on the marketing mix of the
company (Baines, et al., 2013). Marketing plan is also considered as a process that will be
helpful for a business to decide best alternative for effective use of resources. In this report the
marketing plan for a small business is drawn that is Doorstep organic.
Doorstep organic was started in 2013 in Australia with the objective of delivering organic fruits
and vegetables to the customers. The company delivers organic items to the customers and has
its own application and website to take the orders. The main idea behind this small company is to
aware people about eating healthy and living a healthy enjoyable life the company done this by
offering a wide range of organic fruits and vegetables with online convenience and front door
delivery (Organics, 2019).
1.1 Scope of Study
The scope of this marketing plan is limited to analysis of Australian market in which Doorstep
organics conduct its operations. The marketing plan of the company focuses on the organic
market of the Australia by analyzing the environment, covering internal and external
environment in which company operates, understanding the goals and objectives of Doorstep
organic followed by its SWOT analysis. Furthermore a detailed marketing mix strategy of
Doorstep organic is discussed and lastly marketing plan implementation and evaluation is done
in order to know the effectiveness of the marketing plan so that a proper control on the resources
and marketing activities is to be ensured.
1.2 Limitations
The main limitation of this report is the time availability and problem in collecting data about
market situations in which Doorstep organics operates. Limited access to information about the
company, the length requirements are few anther barriers in formulation of marketing plan.
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Limited knowledge of author about the organic market and e- commerce industry is another
limitation in the study.
2. Company and Industry Background
Doorstep Organics is Australian online organic food delivery service. The company delivers
quality organic products to the customers of Sydney, Canberra and New Castle at door step by
taking orders on their website and has their own application. The idea behind this startup is the
value of eating healthy in an individual life in order to have long and enjoyable living (Organics,
2019).
The company operates in e-commerce sector in Australia and the growth of e-commerce segment
in the country is tremendous. The segment revenue amounted to US$21,224m in 2019 and user
penetration during the year is 80.8% whereas expected to be 89.20% by 2023 (Statista, 2019). In
upcoming years demand for organic fruits and vegetables is expected to be more due to
increasing awareness about consuming organic fruits and vegetables benefits to the people.
There is estimation that Australian organic fruits and vegetables market will grow at the rate of
18% in next five years. Growing market will provide many opportunities for Doorstep organics
in the future.
2.1 Doorstep Organics Mission and Vision
Organization mission of any company is the reason behind running a business that mission needs
to be concise and clear to organizational members. Doorstep organics mission is to provide a
healthy and enjoyable life to the people of Australia with their organic fruits and vegetables
delivery in convenient way at the doorstep (Organics, 2019).
3. Environment Analysis: Internal, External and Customer
Environment analysis of doorstep organics is done which provide the external assessment of the
market that is its political and environmental factors in the organic product industry. For an
organic industry in Australia it is found that it is a growing industry in the current situation and
the legal factors are in the favor of organic market that will prove to be an opportunity for the
companies. On other side internal assessment provides the information about company
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environment, Doorstep organics has a competitive advantage of its reasonable price and on time
delivery to customers that prove to be the greater strength for the company as well as its
resources are sufficient to compete in the market. Its distribution channel is also an effective
thing with the company. All these analysis helps in understanding the environment in which
company has to work and the challenges and opportunities that will be faced by the company in
near future.
The environment analysis also includes customer environment assessment that means identifying
and knowing the target market customers behavior and their characteristics all that will be
helpful in developing of the marketing plan as per the customer demand and needs.
3.1 External Environment
In this the company external forces are analyzed that includes political factors, economic factors,
social factors, technological factors and legal factors. All these affect the smooth functioning of
any business in the country (Sammut & Galea, 2015). Government is changing laws in food
industry mainly in agriculture sector that as they want to aware the people about consuming
organic and healthy food. Any changes in political and economic factor are uncontrollable for
doorstep organics so they have to manage or plan the policies according to the current and
changing external market forces. The influence of external environment is well understood by
looking into the Appendix 1.
3.2 Internal Environment
Internal environment analysis includes the assessment of marketing objectives of the Doorstep
organics, resources available with the organization, analyzing the customers, positioning of
products in the market. Doorstep organic has competitive advantage of its reasonable price and
convenient delivery to door step of customers. In comparison to its competitor in the Australia
market the company has fast delivery options, wide range of fruits and vegetables offering and
delivers their goods in thousands of home each day in Sydney as shown in appendix 2. Key
resources required by the company are hardworking and efficient staff for delivering the
products to the customers. Doorsteps organic gets organic fruits and vegetables from their own
farms to ensure the quality of the products that also cut down their cost. Due to using of online
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platform company is cutting down the cost of middleman and distributors that increases the
benefits or profit margin of the company (Lopez & Azorin, 2016).
3.3 Customers Environment
The customer environment analysis highlights the issue related to the Doorsteps organic
customers. It includes the target market of the company, needs of the customers and how these
ever changing needs are fulfill by the Doorstep organic products.
Doorsteps organic targets the health oriented people, socially responsible citizen, environment
friendly and the people with high lifestyle who are health conscious too (Mason, 2016). The
market segment cover by the company is habitual buyer of organic food and others are periphery
consumers who buy on irregular basis. Mainly old age people, health conscious people are
targeted.
4. SWOT Analysis
This analysis help in knowing the strengths and weaknesses in the company through internal
assessment and the opportunities and threats present in the external environment for the Doorstep
organic and examination of company competitive advantage is known (Craig & Campbell,
2015). Strengths of the Doorstep organics are its availability of raw material from their owed
farms and the efficiency in the management. In regards with strengths there are some weaknesses
in the company is lack of innovation and initiative to promote or expand the business as per
industry expansion. Threats for the Doorstep organics are its competitor in the Australian market
that is Oooby Sydney and Box fresh (Farmar, et al., 2017). Increasing awareness by the
government in consuming organic food items give an opportunity to the company to expand in
this segment. There is stiff competition in the organic food production but changing agricultural
laws and practices developing the sector which will prove to be profitable for the food industry.
Doorstep organic can take the advantage of that increasing awareness and plan to attract more
customers towards organic products to gain the sales (Manson, 2015).
Competitive Advantages: Quality and delivery are the two competitive advantage in which
Doorstep organic excels. As there unique selling proportion is delivering of fresh fruits and
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vegetables on time or in one day that builds the positive image of brand in customers mind. The
long term competitive advantage is to be attained by working on delivering the same and make
some changes with time in the technology and provide training to staff. Focusing on these
elements provide a clear advantage to Doorstep organic over its competitors. The company can
further expand its business through tie ups with supermarket chain in offering the organic food to
the people in the country.
5. Marketing Strategy
The marketing strategy of Doorstep organic and its elements are analyzed below. The strategy
includes targeting, segmenting and positioning strategy of the company followed by marketing
mix strategy that is pricing, distribution, and product and promotion strategy (Hill, 2013).
Marketing plan is the goals of the doorstep organics on other side marketing strategy is how to
achieve that goals or planning for attaining the desired outcome. The doorstep organics main
goal is to provide healthy living to people of Australia and make them aware about the benefits
of organic food through providing that in the market at reasonable price and make them available
it at their doorstep. For fulfilling that objective the marketing strategy is formulated and
implemented as per the plan. Below is the marketing strategy or plan to achieve the marketing
goals of the company.
5.1 Marketing Objectives
On the basis of above analysis of the company and its external environment in which they
operates following objectives or goals are created:
1. Boosting up the sales of the organic food from one thousand customers per day to fifteen
hundred customers.
2. Target the high style and high profile professionals in the area like doctors, advocates,
and teachers.
3. Tie ups with more supermarkets to increase the market for organic products and to aware
the people about benefits of taking organic food.
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5.2 Target Market
Target market is the customers that will be targeted by the company according to their product
offering so that potential customer can be influenced to but the product. Selecting the right target
market is essential step in preparing marketing plan as all the strategies will be planned on
analyzing the behavior and demand of the target market (Proctor, 2016).
Target market is the high class people and people who are concerned about their health. Because
organic products carry higher prices than chemical produced goods, and old age group can be the
focus as they are more concern about the health related issues (Hemmerling, et al., 2015).
Australian organic market is developing and saw a growth of 88% from 2012, the customers
shifted to organic products due to many health issues and for saving the environment from non-
organic production. In the Australian organic market report 2018 it is known that two third of
Australian shoppers switch to consume organic food because of personal health issues.
Millennial category are the most aware and health conscious people. On the basis of market
analysis of Australia, I can say that following are the target market of the Doorstep Organics and
this is divided according to their behavioral and demographic characteristics.
Target Market for Doorstep Organic
Behavioral
Segmentation
Habitual buyer
Health consicious
Quality focused
customers
Demographic
Segmenation
Age between 18-
60 and above.
Most of them will
be female
Middle and high
income group
Psychographic
Segmenation
High lifestyle
customers
Professionals
Organic food takers
on regular basis
Geographic
Segmentation
Sydney population
South wale cities
Newcastle,
Wollongong,
Albury , Canberra
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5.3 Marketing Mix
Marketing Mix is defines as the mix of different elements in an order so that changes can be
made in internal environment according to the external factors. In other word it is a combination
of factors that to be controlled by the business to influence the customers to buy the product
(Baker, 2014). Kotler and Keller (2012, p.170) defined product as ‘anything that can be offered
to a market to satisfy a want or need including physical goods, services, experiences, people,
places, properties, organization, information and idea’. Price denominate as ‘Price is the sum of
the values consumers exchange for the benefits of having or using a product or service‘(Kotler et
al., 2013 p.354). Marketing channel are ‘set of interdependent organization involved in the
process of making a product service available for use of consumption’( Kotler & Keller 2012,
p.224).
5.3.1 Product Strategy
The Doorstep organic deals in organic products that is not cultivated with the use of chemical.
The main motive of offering the organic product is to keep the people healthy. It will include
more than competitor basic product offering and consist of all the necessary ingredients that are
healthy for body (Ozguven, 2018). The product line includes organic fruits and vegetables,
cheese, meat and fish, all that things are offered with purest quality and delivered to doorstep on
same day.
Product Analysis:
Name of Goods People Need Sales Opportunity
Vegetables 100% High
Fruits 70% Medium
Meats 98% High
Fish 90% High
Cheese & Honey 50% Medium
Source: (Pepe, 2019)
Doorstep organic is an unknown brand name in Australia. All the products include the company
name and possess a broad range of organic food chain. Their core product is organic fruits and
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vegetables as people demand more of these products, augmented product for the company is its
delivery services and online platform that is also a necessary aspect to be considered. The
company positioned itself as the quality product company that delivers product at the doorstep.
The products offered by the company are comes under perishable items that can be stored in
refrigerator but not for the long time.
5.3.2 Pricing Strategy
The pricing strategy for the target market is that they have to place reasonable prices for the
organic food as somehow the price of organic items are higher than the regular one but the target
market is high class professional and health conscious people that can ready to pay more price
for the fresh quality items (Rodiger & Hamm, 2015).
Organic Produce: $30 (Every 2 weeks)
Cheese: $4- $18
For the premium customers various offers should be provided to retain the loyal customers of the
company for long time. A shopping card is to be given to the customers whose monthly expenses
on purchase of organic items will be more than $100. The pricing strategy of the company is
preferred to be higher at the starting as more focus is on delivering the qualitative goods to the
customer. The profit margin is markup 50% of product price. The price for raw material will be
lesser to Doorstep organics and they have their own farms to cultivate fruits and vegetables
remaining organic product will be getting from the suppliers according to the demand of
customers.
5.3.3 Distribution Strategy
Doorstep Organic is following one channel for distribution. As the company do not have
physical presence or store. As the company operates in ecommerce platform there distribution
channel eliminate the middleman and distributors or retailers. The company has their own farms
so they get products from suppliers, packed it and store it in a warehouse than deliver it as per
the order or demand of the customers (Leckie & Lobo, 2017). All the orders are taken through
their website and application online and then accordingly delivered to the customers by the
company.
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Doorstep Organic Distribution Channel
Source: (Meier & Stormer, 2011, p. 106)
5.3.4 Promotion Strategy
The marketing of organic product is difficult as buyer takes time to understand the quality of the
products and believes less on the seller (Paul, 2017). So the efficient promotion is done through
word of mouth. It is necessary to aware the people about benefits of organic food, for the
development of organic sector in the country. Promotion strategy is build keeping in mind the
Doorstep organic target market, and for that pull strategy can be implemented that will help in
generating the demand of organic products in the target market. In pull strategy mainly
consumers pulls towards the product by making them aware about the product. This strategy
includes methods like word of mouth, social networking promotion, and media coverage through
Produ ction
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