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

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Tactical Plans
Product
Today, the customers in the market are increasing their awareness regarding the products and
services. Besides this, the government in every country is involved in increasing the
restrictions against the use of plastic products, which is the key reason for the environmental
damage and pollution. The government of New Zealand has established different policies to
restrict the use of plastic bags, plastic straws, etc., which reflects that the demand of Avocado
straws is expected to increase.
Price
Biodegradable Paille will assessable to the customers at a reasonable cost that will definitely
help the company in attracting them. The business will make use of penetration price strategy
High
Quality
Low
Quality
High
Price
Low
Price
Biodegradab
le Paille
World
Centric
Aardvark
Straws

MARKETING PLAN 13
to attract the customers by offering products at low prices. Many new companies to draw the
attention of the customers away from the rivals use this technique (Maguire, 2019).
Place
Place refers to the point of sale selected by the business to vend its services or products.
Selecting the place for the distribution or the distribution channel of the products in the
market is very essential as it supports in catching the eyes of the customer, which makes it
easy for them to purchase the product. Biodegradable Paille will select the direct channel of
distribution for the product supply to different bars, hotels, restaurants, cafes, etc. Under the
direct distribution channel, the company supplies its product directly to its end user without
the support of intermediaries (Dent, 2011).. The business structure of the Biodegradable
Paille does not involve any type of distributor for the delivery of its products to its customers.
Promotion
Promotion is comprised of activities used by the business to market the product or services.
These strategies are very useful to get the attention of the customers and explain the benefits
as well as characteristics of the product offered. Biodegradable Paille will make use of
personal selling to sell the products to the customers with the help of sales representative and
sales personnel. The company will select this strategy because it allows the sales
representative to explain the benefits of the products through personal interaction. Besides
this, the company will also use sales promotion strategy to increase the demand for the
product by offering free samples, coupons, etc.
Conclusion
The above report is intended towards presenting the detailed marketing plan for the new
business idea of biodegradable straws with the name ‘Biodegradable Paille’. The paper has

MARKETING PLAN 14
analyzed that the marketing plan is very essential of every business to establish successfully
in the market and get the attention of the customers. It is comprised of different aspects of the
marketing plan such as PEST Analysis, SWOT Analysis, and an overview of the company,
competitors, and collaborators. Besides this, it has analyzed the segmentation, targeting, and
positioning strategy of the business from which it has been identified that company will
majorly target cafes where the major offering is beverages that are consumed with the help of
a straw. The paper has analyzed that Biodegradable Paille will be positioned as a high quality
product which will be offered at low prices. Moreover, the report has discussed different
tactical plans of the Biodegradable Paille that is product strategy, price strategy, place
strategy, and promotion strategy. The analysis reflects that the products in the market are
changing and converting into the environmental friendly due to increasing awareness of the
customers. Therefore, it could be said that the demand for Avocado straws will increase in
the coming future.

MARKETING PLAN 15
References
Aardvark Straw. (2019). Why Choose Aardvark Straws? Retrieved from
https://www.aardvarkstraws.com/
Adamkasi. (2016). PESTLE Analysis of New Zealand. Retrieved from
https://freepestelanalysis.com/pestel-pestle-analysis-of-new-zealand/
Bhasin, H. (2018). Positioning Strategy. Retrieved from
https://www.marketing91.com/positioning-strategies/
Boothby, W.H. (2012). The Law of Targeting 1st ed. U.K: OUP Oxford.
Christopher, M. (2013). Logistics and Supply Chain Management ePub eBook 4th ed. U.K:
Pearson.
Dent, J. (2011). Distribution Channels: Understanding and Managing Channels to Market
2nd ed. U.K: Kogan Page Publishers.
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market Segmentation Analysis: Understanding It,
Doing It, and Making It Useful 1st ed. Germany: Springer.
Easton, S., Hales, M.D., & Schuh, C. (2014). Supplier Relationship Management: How to
Maximize Vendor Value and Opportunity 1st ed. U.S: Apress.
Fern Fort University. (2019). Spark New Zealand Limited PESTEL & Environment Analysis.
Retrieved from http://fernfortuniversity.com/term-papers/pestel/nyse4/6346-spark-
new-zealand-limited.php
Ferrell, O.C., & Hartline, M. (2012). Marketing Strategy 6th ed. U.S: Cengage Learning.

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Goodnet. (2018). 5 Bio-Degradable Plastic Companies for a Greener Future. Retrieved from
https://www.goodnet.org/articles/5-biodegradable-plastic-companies-for-greener-
future
Krueger, R.A., & Casey, M.A. (2014). Focus Groups: A Practical Guide for Applied
Research 5th ed. U.K: SAGE Publications.
Maguire, A. (2019). 6 Different Pricing Strategies: Which Is Right for Your Business?
Retrieved from https://quickbooks.intuit.com/r/pricing-strategy/6-different-pricing-
strategies-which-is-right-for-your-business/
McDonald, M., & Wilson, H. (2011) Marketing Plans: How to Prepare Them, How to Use
Them 7th ed. U.K: John Wiley & Sons.
Ministry of Environment. (1997). Waste generation and disposal in New Zealand. Retrieved
from http://www.mfe.govt.nz/publications/environmental-reporting/waste-generation-
and-disposal-new-zealand
Perera, R. (2017). The PESTLE Analysis 1st ed. U.S: Nerdynaut.
Sarsby, A. (2016). SWOT Analysis 1st ed. U.S: Lulu.com.
Skowron, A., & Suraj, Z. (2012). Rough Sets and Intelligent Systems - Professor Zdzisław
Pawlak in Memoriam 1st ed. Germany: Springer Science & Business Media.
Wetherill, T.D. (2019). Waste Management In New Zealand. Retrieved from
http://www.seas.columbia.edu/earth/wtert/sofos/nawtec/anacon98/anacon98-25.pdf
Williams, T. (2010). Positioning for Professionals: How Professional Knowledge Firms Can
Differentiate Their Way to Success 1st ed. U.K: John Wiley & Sons.

MARKETING PLAN 17
Appendix
Appendix A
Situation Analysis Findings
Customer
Biodegradable Paille will majorly target its market based on length, application, and end user
of the product. The primary market for the business will be cafes, which will be offered 20
cm length straw for drinking different types of beverages.
Company
Biodegradable Paille will establish its business in the New Zealand Market, which will
support it accessing different waste management strategies to save the environment. The
government of New Zealand has adopted Environment 2010 strategy to highlight a multitude
of issues of the environment; majorly it will support the country in waste management.
Context
The political environment of New Zealand is stable which is focused on supporting a
business that is involved in waste management procedures. Besides this, the government of
New Zealand has adopted the Environment 2010 strategy to reduce waste.
Collaborators
Biodegradable Paille will involve in the supplier relationship management 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.

MARKETING PLAN 18
Competitors
The key competitors of Biodegradable Paille will be Aardvark Straws and World Centric who
are involved in the manufacturing of different biodegradable products such as straw, bags,
cutlery, and dishware.
Focus Group
A focus group is a method of market research used by the researcher to bring together 6-10
people in a room to get their feedback about the service, concept, idea, or marketing
campaign (Krueger & Casey, 2014). The focus group for this paper will be comprised of 10
people, which will provide their feedback regarding the new business idea of Biodegradable
straw make up of Avocado.
Industry and Trend Analysis
Yearly, households and industries of New Zealand industries dispose around 3 million tonnes
of construction and destruction debris to landfills and cleanfills. This reflects that around one
tonne of construction and destruction debris is disposed of by per person. The country has
adopted different types of waste management policies in the past decade. The Government
has accepted a policy of Waste Management that inspires a "waste generator pays" method
and utilization of a Waste Management Hierarchy (Ministry of Environment, 1997).
Appendix B
CLV- Customer Lifetime Value
In the marketing perspective, customer lifecycle value is a forecast of the net profit accredited
to the future relationship with a consumer. The customer lifetime value could be determined
as the financial value of the consumer relationship, depending on the present value of the
expected upcoming cash flows from the relationship with the customer. Customer lifetime
value is one of the essential notions, which is used to inspire companies to move their

MARKETING PLAN 19
emphasis to the long-term health of the relationship with the customer from quarterly profits
(Skowron & Suraj, 2012). The customer lifetime value for the Biodegradable Paille is
presented below with the help of a graph:
Source [(Skowron & Suraj, 2012)]
Appendix C
Pilot Test on 4p Recommendations
Questionnaire
Q1. Do you make use of Biodegradable Products?
Yes
No
Q2. Do you find high prices of the product?
Yes
No
Q3. Are Biodegradable Products are easily accessible?

MARKETING PLAN 20
Yes
No
Q4. Do you find the advertisement for the Biodegradable Paille ethical or not
Yes
No
Q5. Suggest other flavors for the Biodegradable Straw
Revised Questionnaire
Q2. Do you find high prices of the product?
Revised
Q2 Is the product is affordable or not
Yes
No
Q4. Do you find the advertisement for the Biodegradable Paille ethical or not
Revised
Q4. Do you find the advertisement for the Biodegradable Paille effective or not
Yes
No
Final Questions
Q1. Do you make use of Biodegradable Products?

MARKETING PLAN 21
Q2 Is the product is affordable or not
Q3. Are Biodegradable Products are easily accessible?
Q4. Do you find the advertisement for the Biodegradable Paille effective or not
Q5. Suggest other flavors for the Biodegradable Straw
Results of the Questionnaire
Q1.
Q2.

MARKETING PLAN 22
Q3.

MARKETING PLAN 23
Q4.

MARKETING PLAN 24
Q5.