Marketing Plan for Mushroom Product Production and Sales

Desklib provides past papers and solved assignments for students. This project details a comprehensive marketing plan for mushroom products.

MARKETING PLAN FOR PRODUCTION,
MANUFACTURING AND SELLING OF
MUSHROOM’S PRODUCTS
Student Name:
Date:
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Table of Contents
Introduction.................................................................................................................................................2
1. Background of the business and rationale why the business will succeed..........................................2
2. Overview of the macro environment and potential strengths and weaknesses of your business (use
appropriate framework such as SWOT analysis).........................................................................................2
A. Strengths.........................................................................................................................................2
B. Weaknesses.....................................................................................................................................3
C. Opportunities......................................................................................................................................3
D. Threats.............................................................................................................................................3
3. Marketing objectives for your business (must follow the SMART criteria)..........................................3
A. Creation of employment opportunities...........................................................................................3
Specific:...............................................................................................................................................3
Measurable:.........................................................................................................................................4
Attainable:...........................................................................................................................................4
Relevant:..............................................................................................................................................4
Timely:.................................................................................................................................................4
B. The business is aimed at improving the health and fight malnutrition............................................4
Specific:...............................................................................................................................................4
Measurable:.........................................................................................................................................4
Attainable:...........................................................................................................................................4
Relevant:..............................................................................................................................................4
Timely..................................................................................................................................................5
4. Marketing segmentation, Targeting and positioning ( Creation of customer profile, targeting
strategy rationale and perceptual map with competitive positioning)........................................................5
5. Create a marketing mix and explain how it will help you achieve the set marketing objectives (the
marketing mix needs to be a visual creation opposed to a lengthy description).........................................7
6. Provide an implementation plan for the promotional launch of the new product/service. You might
want to consider including a promotional budget.......................................................................................8
References...................................................................................................................................................9
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Introduction
Mushroom is one of the edible fungi. It is known for its nutritious, delicious and medicinal
value. Mushroom production has not been many people. What people do not know is that
mushroom production cost is low and this should encourage many small and middle scale
farmers. In most parts of the world, mushroom production is done at private level. No
government has come up with large scale schemes to produce mushrooms. Mushrooms yield
very fast which makes it a potential venture to help reduce poverty level in the developing
countries.
1. Background of the business and rationale why the business will
succeed
A business focusing on mushroom by-products stands high chances of succeeding because
with small pieces of land, one can grow mushrooms. The capital investment in the production
and manufacturing is relatively low compared to other businesses. This is coupled by the fact
that mushrooms can be prepared from clean agricultural waste.
Some of mushrooms products include Hoosier Hill Farm Porcini Mushroom Powder, Trader
Joes Marinated Mushrooms, Havista Dried Porcini Mushrooms and Roland Straw
Mushrooms amongst others. Mushroom’s nutritional value is very high compared to other
foods. Mushrooms are fairly taken to be a right substitute for meat.
2. Overview of the macro environment and potential strengths and
weaknesses of your business (use appropriate framework such as
SWOT analysis)
One of the significant aspect of mushroom cultivation is to help reduce pollutant in the
environment. The bioconversion of lignocellulosic biomass to food and useful products has
had a significant impact on national and regional pollution levels and will continue to
increase (Chitra, K. 2018 ). A SWOT analysis on the production, manufacturing and selling of
mushroom products is as follows:
A. Strengths
Mushroom production and manufacturing does not require heavy capital investment. It just
requires small pieces of land and basic farming skills. Additionally, mushroom production
can generate large profits within a short time. Mushroom yield very fast. The raw materials
needed in its production are readily available and at low costs. Finally, mushroom related
business is a new idea in the market which makes it stand high chance of standing.
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B. Weaknesses
Selling of mushroom by-products is challenging because there is no established market for
them. Most government and technical institutions are offering no support to the farmers and
the general public who lack awareness on the benefits that come with using mushroom by-
products. The perishability of mushroom also poses another challenge. A mushroom will get
spoil in a period of 3-4 days. Most farmers end up counting losses because the lack storage
and delivery facilities. Finally, mushroom production is new in the market which makes it
lack diversification in production process. Majority of farmers lack the expertise to handle
the production and manufacturing process.
C. Opportunities
There are so many opportunities that come with production, manufacturing and selling of
mushroom by-products. First, it provides an opportunity to establish greater markets. Some
countries are yet to produce mushrooms and these are potential markets. It is provides an
opportunity generate employment and income. The entire process of the business will see
many people get to provide different services. This will in turn be an income generating
venture. The already established producers have the opportunity to raise their production to
meet international market needs.
D. Threats
There are also threats towards doing business with mushroom products. Although there is no
big established markets, there exist competition of the products amongst the producers.
During the production, mushrooms are also prone to damage by pests which may lead to
producers incurring great losses. With mushrooms still to have an established market, there
exist a possibility of supply exceeding demand if the markets are not developed. Some
government policies are also adversely affecting mushroom related businesses. High taxation
is making it hard for farmers to sustain their costs incurred.
3. Marketing objectives for your business (must follow the SMART
criteria)
The main objective of the business will categorized into; Economic, Nutritional and
medicinal value. Under the SMART criteria the objectives are as follows:
A. Creation of employment opportunities
Mushroom production, manufacturing and selling will employ different people with different
expertise. The employment opportunities range from farm manager, farm laborers, wholesale
sellers and retail sellers.
Specific: At individual level, the owner of the mushroom product business will have employed
themselves. Whether the business will be done on part times, it a source of income to the owner.
Farm laborers supporting in farm operations will gain from the business. In the manufacturing
process more people with different skills will also be engaged. This is also a profitable venture to
housewives. The business require little knowledge and small capital investment. Housewives can
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allocate part of time in production of mushrooms other than staying indoors doing nothing to
earn their livelihoods.
Measurable: Creation of employment can be measured by comparing the percentage of
unemployed before the start of the business and after. In a rural set where most small scale
farmers are not fully engaged due to their limited pieces of land, their total engagement in the
production, manufacturing and selling of the products is a good measure.
Attainable: The entire process of starting mushroom business is not complicated and require
less skills and labor. Small scale farmers can use their limited sizes of land, their little capital and
less skills to start the business ( Dalmia, K. 2018).. Anybody from any place can start the business.
The production chain will also give the urban dwellers an opportunity to be part of the business
as the can be suppliers or retail sellers.
Relevant: With increased levels of unemployment globally, creation of jobs through mushroom
production is very relevant. Many governments are coming up with mechanisms to reduce the
levels of unemployment and mushroom farming is seen as a relevant idea to think of.
Timely: According to CIA World Fact Book, the rate of unemployment is 7.9% (2017 est.) With
this rate, avenues to create more jobs is need. Mushroom production is such a timely venture as it
can help reduce the unemployment rate.
B. The business is aimed at improving the health and fight malnutrition
The nutritional value and the medicinal impact of mushroom products cannot be underestimated.
Mushrooms are low in calories and fat and high in fibre. Intake of mushroom products also
helps in digestion because it contains dietary fibres and is recommended for overweight people
in the quest to lose some weight.
Specific: Mushroom production has come at a time when majority of countries are faced with a
challenge of malnutrition amongst its citizens. Mushroom products will help fight cases of
excesses, deficiencies and imbalances intake of nutrients. The overweight will benefit as intake
of mushroom products help reduce weight because it has low fat content. Mushroom products
are also rich in proteins making them a good substitute for meat (Rashid, M., Akhter, 2017). The
poor who cannot afford meat can comfortably take mushroom products which are relatively
cheap and of high quality.
Measurable: Intake of mushroom products in women is greatly helping in possibility of them
suffering from breast cancer. This a good measure of how the business is improving health
status. The reduced level of people suffering from malnutrition related diseases is also a good
measure.
Attainable: this is an attainable objective because mushroom production is relatively cheap.
The products are of high quality at a lower price. The supply of the products is high because
many can afford to process. When the general public is aware on the importance of intake of the
products the intake will be high.
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Relevant: With researchers working round the clock trying to look for cancer cure, Mushroom
products is a relevant idea to think of. The products have a stunning power to help prevent and
fight breast cancer in women and other types of cancer (Researchers from the University of
Western Australia, Perth). According to the research, women who consumed at least a third of an
ounce of fresh mushroom per day, were 64% less likely to develop breast cancer (Stamets, P.
2017). .
Timely: this is a timely venture as billions of people in the world are faced by either under
nutrition, micro nutrient related malnutrition or overweight.
The mushroom product business will also generate income to different categories of people.
4. Marketing segmentation, Targeting and positioning ( Creation of
customer profile, targeting strategy rationale and perceptual map
with competitive positioning)
Mushroom production, manufacturing and selling products business will have different market
segments based on the geographical location, demographics and psychographics. Under the
geographical location, the market segments will include; people within the rural set up; semi-
urban dwellers.
Under demographics the segments will include; low and middle class people; small scale
farmers; the overweight and women and the malnutritioned.
Under the psychographics the market segment will be the poor whose living standards is very
low
The marketing targets include the small scale farmers, women, the overweight, the poor and the
malnutritioned.
The market positioning will be done as follows;
 High quality low price products- the business will supply products of high quality
but affordable at low prices
 Low quality low price products- there is also need to have low quality products at
low prices so that consumers can have their taste and preference catered for.
 High quality high price products- the products will mainly be afforded by the high
class people. For the market to be well established, the business needs to take into
consideration the taste for everyone.
 Low quality high price products
MUSHROOM MARKET SEGMENTATION
Geographical location- rural and semi-urban dwellers
-a population of less than 25,000 people
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Demographics- low and middle class people
- small scale farmers
- the overweight
- women and the malnutritioned
Psychographics- the poor whose living standards is very low
MUSHROOM MARKET TARGETING
-The small scale farmers
-women, the overweight,
- The poor and
- The malnutritioned.
High quality products
Product 1 product 1
Product 2 product 2
Product 3
Low price High price
Product 1 product 1
Product 2
Low quality products
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5. Create a marketing mix and explain how it will help you achieve
the set marketing objectives (the marketing mix needs to be a
visual creation opposed to a lengthy description)
Emphasis on Examples help in achieving
objective
Price -provide product at both
retail and wholesale prices
-Give discounts to
supermarkets
- It will create employment
to suppliers and both retail
and whole sale sellers.
- it will generate income to
all those involved in the
production chain
Promotion -free gifts
-special offers
-it will help establish more
market for your product.
- it is a source of income
because one has to buy to
get the offer.
product -High quality at lower
prices products
-well designed products
-High quality products will
help improve health and
fight malnutrition
- A well designed product
will be more marketable,
will attract many customers
thereby will generate
income fast
Place -small hotels
-general and coffee shops
-social media
- It will create more
employment opportunities
to those running the places
- it is will generate more
income
-having the products in
hotels will have a positive
impact on the health of the
people.
-it will help establish bigger
market.
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6. Provide an implementation plan for the promotional launch of the
new product/service. You might want to consider including a
promotional budget
There is need to conduct a promotional launch on the mushroom products. The public lacks
awareness on the products and thus a promotional launch will not only raise awareness but it
also a way to establish a market for the product. The launch should start being implemented
while the product is on the final phases of manufacturing. The implementation plan is a
follows:
a. Determine the promotional budget-the promotional budget will determine the activities
that will carried out on the actual day.
b. Determine who will participants in the launch team- as the owner of the business, you
need to have a list of people who will accompany you during the launch. For example,
you need an agricultural officer to briefly explain how the production process of
mushrooms. The audience during the launch may also want to know the health benefits
related to the products, therefore you need a health expert to help you explain.
c. Develop a social media strategy- The launch should also be done via the social media
platforms. This will attract the attention of many people. The product will not only be
launched locally but also globally.
d. Seek support and ideas from the masters- for the launch to be successful, ideas and
support from people who have previously launched a product will help a lot.
e. Stock up promotional items- the promotional launch should be accompanied by
promotional items that may include the new products or caps, or t-shirts. This will attract
a big audience.
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References
Chitra, K., Venkatesh, R., Dhanalakshmi, K., Sharavanan, P., Sasikumar, C. and Vijayakumari,
K. (2018). Production and Economic Analysis of Oyster Mushroom (Pleurotus
florida). International Journal of Current Microbiology and Applied Sciences, 7(09),
pp.379-383.
Dalmia, K. (2018). Impact Assessment of Vocational Mushroom Cultivation Training
Programme on Knowledge Gain of Rural Women. International Journal of Pure & Applied
Bioscience, 6(3), pp.265-270.
Rashid, M., Akhter, K., Chowdhury, M. and Aminuzzaman., F. (2017). BIODIVERSITY,
HABITAT AND MORPHOLOGY OF MUSHROOM OF DIFFERENT FOREST
REGIONS OF BANGLADESH. International Journal of Advanced Research, 5(9), pp.945-
957.
Stamets, P. (2017). Mycelium running. Berkeley: Ten Speed Press.
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