Marketing Plan: Launching Biodegradable Paille in New Zealand Market

This document presents a marketing plan for Biodegradable Paille, a new business idea focused on biodegradable straws in New Zealand. The plan includes a situation analysis covering customer profiles, company strengths and weaknesses, and the competitive landscape. It also involves segmentation strategies based on length, end-user, and application, along with targeting and positioning strategies emphasizing environmental contributions. The tactical plan outlines product specifics, pricing strategies (penetration pricing), distribution channels, and promotional activities using various advertising mediums. The analysis incorporates SWOT and PEST analyses to assess market viability and potential challenges, aiming to establish Biodegradable Paille as a leading environmentally sustainable brand in the New Zealand market. The document also includes appendices with findings from situation analysis, customer lifetime value calculations, and pilot test results.

Running head: MARKETING PLAN
Marketing Plan
January 30
2019

MARKETING PLAN 1
Executive Summary
The intent of this paper is to increase the information regarding use of marketing plan for the
success of the business. The marketing plan is comprised of numerous aspects that can be
used by the business to attract customers and analyse the market. This paper is presenting a
new business idea of Biodegradable Straws with the name Biodegradable Paille. The
marketing plan of the Biodegradable Paille is comprised of situation analysis, competitors’
analysis, customer, etc. The paper has recommended business to segment its market based on
length, end user, and application. For the positioning, the business needs to highlight its
contributions towards the environment by encouraging people to reduce the use of plastic
straws. In the end, the paper has presented the tactical plan in which business needs to use
penetration price strategy and promote its business with the help of different advertisement
tools (television, radio, hoardings).

MARKETING PLAN 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of Business (Biodegradable Paille).......................................................................3
Situation Analysis..................................................................................................................4
Customer............................................................................................................................4
Company............................................................................................................................4
Context...............................................................................................................................6
Collaborators......................................................................................................................7
Competitors........................................................................................................................7
Marketing Analysis and Strategies.........................................................................................8
Segmentation......................................................................................................................8
Targeting............................................................................................................................9
Positioning........................................................................................................................10
Tactical Plans.......................................................................................................................11
Product.............................................................................................................................11
Price..................................................................................................................................11
Place.................................................................................................................................12
Promotion.........................................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14
Appendix..................................................................................................................................16
Appendix A..........................................................................................................................16
Situation Analysis Findings.............................................................................................16
Focus Group.....................................................................................................................17
Industry and Trend Analysis............................................................................................17
Appendix B..........................................................................................................................17
CLV- Customer Lifetime Value.......................................................................................17
Appendix C..........................................................................................................................18
Pilot Test on 4p Recommendations..................................................................................18
Results of the Questionnaire............................................................................................19

MARKETING PLAN 3

MARKETING PLAN 4
Introduction
The activities and success of the business are based on several interrelated factors whether
they are internal or external that is evaluated by the practitioners and academies. However,
the subject’s complex nature requires separating the issue into precise aspects of the analysis
(Ferrell & Hartline, 2012). The marketing function performs an important part in creating and
keeping contacts between the business and its markets. However, the range of marketing
activities is wide and the role of numerous kinds of marketing activities majorly based on the
company’s strategy and its characteristics (McDonald & Wilson, 2011). In this report, the
importance of a marketing plan in introducing a new business in the market has been
discussed with the aim to become a successful and top leading brand. The report will be
based on the biodegradable straw business that will be established in the New Zealand market
with the motive to save the environment by eliminating the plastic straws from the market. It
will briefly highlight the different parts of the marketing plan such as situation analysis,
marketing strategies, and tactical plans. Besides this, the report will conduct a survey in order
to recognize the demand of biodegradable straws in the market and their benefits for the
customers.
Overview of Business (Biodegradable Paille)
Biodegradable Paille will be introduced in the New Zealand market in order to reduce the use
of plastic straws, which is affecting the health of the users. The aim of the business is to
increase the awareness among customers regarding negative aspects of the plastic straws and
the benefits of the biodegradable straws. The owners of the business have decided to operate
the business in New Zealand because it is known for managing the waste effectively. At the
nationwide level, the Government of New Zealand has approved its Environment 2010
Strategy in the year 1995 in order to highlight a multitude of issues of the environment. The

MARKETING PLAN 5
strategy comprises the action agenda and objectives that will concentrate on 11 priority issues
containing contaminated sites, hazardous substances, and managing waste in order to
decrease the risk of the human health and environment (Wetherill, 2019).
Situation Analysis
Customer
Biodegradable Paille will be focused on targeting hotels, restaurants, bars, and cafes. The
customers of biodegradable straw will purchase the straws in bulk considering the nature of
their business. In order to increase the loyalty of the customers towards the product company
will introduce different promotional programs that will raise awareness regarding using
biodegradable straws. Besides this, the company will take the support of the programs of
customer relationship management that will be focused on the company's contribution to the
environment. The prices of the biodegradable straws will be low in comparison to the plastic
straws; the company will make use of biodegradable raw material in the manufacturing of the
product. To promote the products, the company will make use of mass marketing strategies
and for the distribution it will use a direct distribution channel. As it is known that today
every business is trying to adopt environment-friendly practices to contribute towards the
society benefits, therefore the business idea of biodegradable straw will be successful in the
coming future.
Company
Biodegradable Paille is the name planned for the straw business that will be introduced in the
country known for waste management that is New Zealand. The business wants to become a
trendsetter in the market in distributing biodegradable straws in the market and an
environmentally sustainable business, which will make use of avocado pits in the
manufacturing procedure.

MARKETING PLAN 6
Due to increasing awareness regarding products among customers and restrictions by the
government against the use of plastic straws, the demand for Avocado straws is predicted to
increase. Although, the accessibility of other options like bamboo straws, glass straws, paper
straws in the market is expected to affect the development of the Biodegradable Paille
business.
SWOT Analysis
A SWOT analysis is a tool utilized by the business to identify its competitive position in the
market by recognizing its strength, weaknesses, possible opportunities, and threats for the
business. A SWOT analysis is an initial valuation model that evaluates the performance of
the business and its possible threats and opportunities (Sarsby, 2016).
Strength
A trendsetter in introducing biodegradable
straw in the market
High contribution in the sustainable
environment practices
Advanced technology
Avocado Pits in the production of
Biodegradable straw
Weaknesses
Lack of experienced staff
High operating cost in the initial year
Opportunities
Opportunity to expand business in other
countries
To cover the market of plastic straw
Threats
Competition from existing players involved
in the production of plastic straw
The increasing economic crisis around the
world

MARKETING PLAN 7
Context
PEST Analysis
PEST Analysis is a tool used to access the market for a specific product or service at the
given time period. The full form of PEST is Political, Economic, Social, and Technological
factors. These factors are analysed by businesses in order to take better decisions for the
business (Perera, 2017).
Political Factor
New Zealand has a stable political environment and offers a great opportunity of success
because of their strict regulations and rules. The changes take place in the political setup of
the country after every three years and the newly established government make rules and
regulations (Adamkasi, 2016). The Biodegradable Paille needs to be aware of all the rules set
up by the government and follows the same. Considering the business idea of environmental
friendly straws the government will provide support to the company in terms of subsidies.
Economic Factor
The economic situation of New Zealand is stable with excellent per capita income in
comparison to other nations of the world (Fern Fort University, 2019). The rates of the
products accessible in the county are economical and everyone can afford to pay for that.
This reflects that Biodegradable Paille will be able to sell its products in the New Zealand
market because people out there have a stable economic position.
Social Factor
The social system of New Zealand is excellent and has to rely on businesses with different
nations. There is a reliable demand in the system and can influence the country's economic
situation (Adamkasi, 2016).

MARKETING PLAN 8
Technological Factor
The country has advanced technology due to the presence of multinational businesses, which
are supporting in developing the nation. The biodegradable Paille will be considered as an
advanced business that will be admired by numerous business organizations in terms of
environmentally friendly techniques, product, and advanced technology.
Collaborators
Supply Chain
A supply chain is said to be a system of a business, people, resources, activities, and
information comprised in moving service or product from supplier to end customer.
Activities of Supply chain are comprised of the transformation of raw material, components,
and natural resources, into a finished product that can be delivered to the customer
(Christopher, 2013). The Biodegradable Paille will be manufactured by using avocado pits in
order to avoid plastic material for the manufacturing of the product. The business will make
contacts with the supplier of avocado pits and other material that will be used in the
production procedure. This material will be converted into manufacturing the biodegradable
straw for different customers.
The biodegradable Paille will adopt the supplier relationship management in its system in
order to access the contribution of the suppliers and their influence of the business success,
defining strategies to improve the performance of the supplier and developing the relationship
of buyer-supplier and defining the activities to involve with every supplier (Easton, Hales &
Schuh, 2014).
Competitors
The concept of biodegradable straw is not new in the global market there is a numerous
number of companies who are involved in the manufacturing of these types of products.

MARKETING PLAN 9
Some of the rivals that could raise high competition for Biodegradable Paille in the New
Zealand market are PLA Biodegradable Straw, FDA Custom Logo Biodegradable Paper
Drinking Straw, Aardvark Straws, World Centric, Papelyco, and Be Green Packaging.
Aardvark Straws is one of the key competitors for Biodegradable Paille in the New Zealand
market as it is focused towards challenging the restaurants and bars to switch from their
plastic straws to paper straws. The strength of Aardvark Straws is its line of produced to
replace the plastic straws with similar lengths and diameters (Aardvark Straw, 2019).
Another key competitor of Biodegradable Paille is World Centric involved in the production
of cutlery and packaging comprises a wide range of biodegradable cutlery, dishware, and
bags for the corporate and household use. The strength of World Centric is its certified
compostable disposables made up of perennial plant fibers that help store carbon
underground. Besides this, the company donates its profit's 25% in the charity (Goodnet,
2018).
The expected reaction of the competitors of Biodegradable Paille is:
 An increasing number of offerings
 Reducing the cost of products
 Increasing intensity of the promotional strategies
Marketing Analysis and Strategies
Segmentation
Segmentation is the strategy adopted by the businesses to divide its market into different parts
that are accessible, profitable, actionable, and definable and possess the potential of growth.
In similar words, the company will find it impossible to target the whole market, due to cost,
effort, and time restrictions (Dolnicar, Grün & Leisch, 2018). It is very important to have

MARKETING PLAN 10
segmented that could be defined with a mass of people targeted and recognized with
reasonable time, cost, and effort. The segment that will be targeted by the Biodegradable
Paille in the New Zealand market is presented below:
On the basis of Length
20 cm
15 cm
Up to 9 cm
On the basis of end user
Bars
Cafes
Restaurants
Hotels
On the basis of application
Juices and Drinks
Beverages
Targeting
The target market is the market selected by the company to vend its products and it comprises
a set of consumers for whom it aims its marketing efforts. Recognizing the target market is a
vital step in the creating of a marketing plan. A target market could be separated from the
market as a whole in terms of geography, demographics, psychographics, and buying power
(Boothby, 2012).

MARKETING PLAN 11
Biodegradable Paille will make use of multi-targeting strategies under which it will focus the
market based on length, end user, and application of the product.
The company will majorly target based on straws length that is 20 cm. Besides this, based on
the application of the biodegradable straws company will aim towards different types of
beverages to earn the revenue. Moreover, based on end customer company will majorly target
cafes because they are the major users of straw due to their business nature.
Positioning
Positioning is the place captured by the product in the market in relation to another similar
type of products sold in the same market (Williams, 2010). Biodegradable Paille wants to be
established as a sustainable business that is focused on managing the waste and saving the
environment.
Positioning statement – Biodegradable Paille will be a substitute for the plastic straws that
will provide a shield for the environmental safety.
Customer benefits or product characteristics as the positioning strategy
The company will make use of Customer benefits or product characteristics as the positioning
strategy under which a business focuses on the products characteristics or customer benefits
(Bhasin, 2018). The company will promote the characteristics of its products and its benefits
to the customers in order to attract customers and develop a brand image in the market.
Perceptual Map of Biodegradable Paille