A Comprehensive Marketing Plan for Sweet Potato Flour by Nestle

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This report outlines a marketing plan for Organic Solutions, a Nestle brand launching sweet potato flour, capitalizing on the growing demand for healthy food options in Australia. The plan includes an industry analysis highlighting the nutritional benefits of sweet potato flour and its potential as a wheat flour substitute. It identifies a target market of health-conscious consumers, individuals with specific health concerns, and those interested in organic food. Segmentation is based on geographic, demographic, behavioral, and psychographic factors. The marketing mix focuses on product benefits, affordable pricing, strategic placement in retail outlets and supermarkets, and promotional activities including social media campaigns and collaborations with healthcare professionals. The plan aims to establish brand awareness and capture a significant market share within the next decade, emphasizing Nestle's commitment to promoting healthier lifestyles.
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Running head: MARKETING PLAN FOR SWEET POTATO FLOUR
Marketing Plan for Sweet Potato Flour: Organic Solutions
Name of the university
Name of the student
Author note
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1MARKETING PLAN FOR SWEET POTATO FLOUR
Executive summery
The purpose behind writing this paper is to present a marketing plan for an emerging brand of
Nestle, Organic Solutions. It is going to sell sweet potato flour, which has immense health
benefits. Mainly considering its nutrition value, the company has identified its potential
opportunity for growth as far as unhealthy lifestyle choices of Australians are concerned. In
order to frame a feasible marketing plan this paper has performed an industry analysis
followed by a description of the upcoming product. The issues of target market has been
discussed and to solve those how the product is going to help that has been elaborated as
well. Segmentation has been done considering 4ps marketing and along with that, strategic
promotional activities have been suggested to attain a competitive edge in the market.
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2MARKETING PLAN FOR SWEET POTATO FLOUR
Table of Contents
Introduction....................................................................................................................3
Product details and industry analysis.............................................................................3
Target market and segmentation....................................................................................4
Consumers’ decision making process............................................................................6
Market positioning.........................................................................................................7
Marketing mix................................................................................................................8
Product.......................................................................................................................8
Price............................................................................................................................8
Place...........................................................................................................................8
Promotion...................................................................................................................9
Strategic promotional activities......................................................................................9
Recommendations........................................................................................................10
Conclusion....................................................................................................................10
References....................................................................................................................11
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3MARKETING PLAN FOR SWEET POTATO FLOUR
Introduction
This report aims to provide an effective marketing plan for Organic Solutions, sweet
potato flour; which is going to be launched in the market by eminent food company Nestle
from Australia (www.nestle.com, 2018). Sweet potato flour is used as one of the main
ingredients for preparing numerous food items like cookies, wafers, noodles and bread. In
this report, after performing a detail market analysis and describing product details, the
market position will be decided as compared to its competitors. Followed by a marketing
mix, promotional activities will be framed. As it has been observed that consumers tend to
prefer food items made from sweet potato flour to deal with several health issues, Nestle has
decided to launch that particular product by using the market fact as a growth opportunity. In
order to explore the potential the company needs a specific marketing strategy, which will be
elaborated in this paper.
Product details and industry analysis
As obesity related health issues have become global, consumers tend to spend on
foods with nutrition value to keep themselves away from health hazards. As per the study of
Kidane et al. (2013), sweet potato is one of the majorly grown crops across the world and
consumption of products made from this has increased as it is enriched in fibre, vitamin C, A,
E and iron as well. It has been considered as good source of protein, carbs and being a part of
regular diet, it has capability to reduce the issues of cholesterol and obesity. It has been
understood that recognising the dynamic consumer preferences the brand Organic Solutions,
sweet potato flour, which is made from the dry roots of sweet potato, is going to be launched
as a healthier substitute for wheat flour while making baked food items (Trejo-González,
Loyo-González and Munguía-Mazariegos 2014).
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4MARKETING PLAN FOR SWEET POTATO FLOUR
The major reasons behind the decision of launching sweet potato flour is the market
demand from both the health conscious consumers and food manufactures. Sweet potato flour
is used as raw material in food manufacturer companies who offer variety of snacks and
meals made from this flour. On the other hand, another growth factor is consumers’
awareness about healthy food alternatives. As a result, the demand of this product is
increasing gradually in the international market and accordingly manufacturer companies are
focusing more into developing culinary dishes using sweet potato flour instead of wheat flour
(Singh, Riar and Saxena 2013). Nestle has pointed out the growth opportunity wisely by
choosing to launch this product considering its longer shelf life and capability of replacing
expensive wheat flour across the baked food industry.
Target market and segmentation
As discussed while performing the industry analysis that a transformation has been
noticed in the consumer behaviour regarding the type of food they are preferring these days.
Opting for healthy foods does not always mean eating boiled vegetables. Choosing healthy
raw ingredients can make even cookies and cakes nutritious (Onabanjo 2014). Recognising
the market trend, Nestle has targeted people who wants a healthy lifestyle and people who are
already suffering yet do not want to miss out delicacies, which are made out of flour. People,
who are strictly into bodybuilding or sports industry, can opt for healthy alternatives as
promised by Nestle (Whelan and Wright 2013). Several variables of segmentation are as
follows.
Geographic Demographic Psychographic Behavioural
Although the
company originated
in Switzerland, it has
expanded territory
According to Brownie
and Coutts (2013), older
people who are suffering
from cholesterol, obesity
Health awareness
has increased
worldwide.
Irrespective of age
Considering the
health benefits,
longer shelf life
and lower price
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5MARKETING PLAN FOR SWEET POTATO FLOUR
across the globe. For
this particular
product, initially,
Nestle is going to
target unban people
of Australia who are
likely to have more
junk foods and need
foods which offer
health benefits along
with taste. The
company will further
proceed with this
project in some other
geographic territory
if they receive good
response from
Australian market.
and other health hazards
can opt for sweet potato
flour from Nestle.
Children can start a good
habit of consuming
healthy foods to avoid
future risks.
Women tend to lose
bone density from the
age of 30. Choosing a
healthy diet by
consuming Sweet potato
flour is going to helpful.
All the age group can
make of a part of their
regular diet, as it is high
in fibre, energy and
nutrients.
groups, people are
interested to enrol
themselves at health
clubs.
Trying new and
tasty food items
with health benefits
is central interest of
chosen market.
consumers are
preferring to
include sweet
potato flour into
their baked
recipes.
Phycology of
leading a healthy
lifestyle is the
main driver
behind the change
in consumer
behaviour.
In order to support the information about the recent shift that has been identified in
consumer behaviour, several studies on food industry can be taken into account. According to
data shared by (Rong-Da Liang 2014), realising the environmental and health sustainability
issues consumers are heading towards adopting organic food ingredients and items made out
of that.
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6MARKETING PLAN FOR SWEET POTATO FLOUR
According to Velten et al. (2014), while identifying the potential of target market to
buy healthy substitute of wheat flour, it has been measured that unhealthy lifestyle choices
contribute a larger proportion as far as Australia’s health burden is concerned. Over 60% of
adults and around 20% of children have been reported to be overweight by doctors’ clinics
across the nation. Therefore, opportunity for growth has been found considering the mass
interest.
The market segmentation can be defined as profitable not only based on the current
issues but also considering a sustainable social concern (Malysheva et al. 2016). The
profitability will remain regarding the product as it has the potential to promote health as
various studies have confirmed the health burden around Australia and across the world.
Consumers can easily access the product, as Nestle is a well-established business
organisation, trusted enough for food items. The company have extensive distributer channel
across the nation, which will satisfy the demand of the market.
It is differentiable from the existing segment as it deals with several health benefits,
which may not be possible for other wheat sellers to offer (Peng et al. 2013).
As per the study of Yadav et al. (2014), a marketing mix helps to understand the
segmentation better, yet to say briefly, the need of leading a healthy a sustainable life is
appealing enough to launch affordable yet beneficial sweet potato flour within the food
industry.
Consumers’ decision making process
Consumers’ purchasing behaviour is essential to understand while performing market
research before launching some new product as it determines profitability and sales. There
are few steps, which are followed before purchasing food items and accordingly a company
plan for something new to satisfy the demand.
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7MARKETING PLAN FOR SWEET POTATO FLOUR
Consumers’ interest or their issues with existing food items are needed to recognise in
the first place to find out the opportunity of emerging brand. In this case, obesity,
cholesterol and lack of vitamins and minerals in daily diet can be recognised as major
issues, which are driving the consumers towards choosing a healthy alternative that is
capable of making tasty culinary dishes too.
Information must be widely available about the product to make the brand and its
utility recognisable for the target market. Effective marketing strategy is required to
make the product popular among them, which will directly influence its sale.
The sweet potato flour by Organic Solutions is a perfect healthy alternative for wheat
flour and customers tend to trust the brand Nestle regarding food products.
The product has longer shelf life, versatile use to make culinary dishes and affordable
to purchase.
Nestle must care about the quality of the delivered product as customer satisfaction
decides their purchasing decision until next time (Sonnenberg et al. 2013).
Market positioning
Therefore, it has been understood from the above discussion, in order to compete with
the existing food companies and their healthy offerings, the market position of organic
solutions can be decided on the basis of applying effective promotional strategies and
efficient operational strategies to control distribution channels. Organic Solutions can be
segmented into human and animal feed and further can be used for making several baked
food products. Both the direct and indirect sales will be organised keeping the mission of
making Australia healthier. Stakeholders of indirect sales are supermarket and both the
physical and virtual retail stores across the nation. The priority of Nestle would be generating
brand awareness and capture a minimum proportion of market share within next one decade.
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8MARKETING PLAN FOR SWEET POTATO FLOUR
Marketing mix
Nestle requires a strategic approach while setting the marketing objective for the
emerging brand. There are four important components named as 4p’s of marketing, are
needed to be revised before framing promotional strategies.
Product
Sweet potato roots are dried after peeling then a milling session makes them ready as
flour. It is used as an alternative of regular wheat flour and it has capability to add natural
sweetness, flavour and colour as well while producing baked delicacies or packed food
products. It is highly enriched with several nutrients, which makes it consumers’ choice over
other existing flour brands (Senanayake et al. 2013).
Price
Being a well-established company; Nestle has adequate number of distribution
channels to satisfy the market demand and keep the price affordable for every age and
economic group. Longer shelf life does the justice over price and it has made the product
noticeable among expensive yet no so healthy food products.
Place
The company has chosen Australia initially to launch the product, keeping the health
burden of the nation in mind. As described in Martin et al. (2013), Consumers are looking for
fitness clubs, taking initiative to obtain healthy lifestyles across the nation. Considering this
sudden dynamism among consumers, Nestlé’s has immense potential for Sweet potato flour
under the brand name of Organic Solutions in the Australian market. Retail stores both
physical and virtual, super markets and direct stores of Nestle have been decided as initial
place from where consumers can avail the product.
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9MARKETING PLAN FOR SWEET POTATO FLOUR
Promotion
Nestle has already market recognition which will help them to earn the trust of the
customers. Advertisement in print and digital media is traditional and worth spending for.
However, considering the trend and changing business atmosphere organising social media
campaigns will be smart as it saves huge monetary resources. Strategic approach and
activities will shape the brand image well.
Strategic promotional activities
Nestle can collaborate with eminent doctors’ clinic or ask for their recommendation in
order to support the healthy factors strongly related to their brand of sweet potato
flour. Those recommendations can be used on packaging or in advertisements to
convey its nutrition value (Raheem, Vishnu and Ahmed 2014).
According to Rutsaert et al. (2013), Creating pages over social networking channels
and uploading promotional posts can be helpful to present the product in front of the
audiences. Social media works as a tool to measure customer satisfaction and market
acceptance as feedbacks are received directly through those channels.
Initially as an opening offer, Nestle can provide small handbook of recipes that can be
cooked using the flour.
In order to attract the interest of sports and fitness enthusiasts, the company can opt
for celebrity endorsement. Selecting a popular sportsperson would be a wise decision
to promote the brand.
A business with sustainable social purpose is likely to sustain in the market too.
Therefore, from the very first day of launching, company can announce its mission to
make a healthier Australia in near future, which will be appealing enough in front of
the target market.
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10MARKETING PLAN FOR SWEET POTATO FLOUR
Recommendations
Compliance of marketing strategies is a strong recommendation. Considering the
market competition with the other flour brand and wheat flour brands, it can be recommended
that strategies must be integrated with Australian’s health issues and social sustainability to
increase its potential for sales. Sports persons and patients of diabetes can be prescribed foods
made from sweet potato flour. Unique selling point of the product would be its capability of
mitigating the ongoing health issues among Australian population.
Conclusion
A detail evaluation of the market continually suggests that health burdens of Australia
is the central issue, which can be solved moderately by launching the product. Potential
growth opportunity is extremely high if the principles of marketing are followed properly.
However, it can be argued that most of the people do not take interest in healthy food
alternatives as they prefers taste over their health. In this case, strategic ways must be adopted
to increase the product awareness to fight against social health hazards. Monitoring the
market with a centralized social media handle and digital channels will add professional edge
in operational activities. Moreover, effective pricing strategy, longer shelf life, good quality
and trustworthy image of Nestle will help to attain a competitive advantage against existing
expensive wheat flour and sweet potato flour brand.
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11MARKETING PLAN FOR SWEET POTATO FLOUR
References
Brownie, S. and Coutts, R., 2013. Older Australians’ perceptions and practices in relation to a
healthy diet for old age: A qualitative study. The journal of nutrition, health & aging, 17(2),
pp.125-129.
Kidane, G., Abegaz, K., Mulugeta, A. and Singh, P., 2013. Nutritional analysis of vitamin A
enriched bread from orange flesh sweet potato and locally available wheat flours at Samre
Woreda, Northern Ethiopia. Current Research in Nutrition and Food Science Journal, 1(1),
pp.49-57.
Malysheva, T.V., Shinkevich, A.I., Kharisova, G.M., Nuretdinova, Y.V., Khasyanov, O.R.,
Nuretdinov, I.G., Zaitseva, N.A. and Kudryavtseva, S.S., 2016. The sustainable development
of competitive enterprises through the implementation of innovative development
strategy. International Journal of Economics and Financial Issues, 6(1), pp.185-191.
Martin, R., Prichard, I., Hutchinson, A.D. and Wilson, C., 2013. The role of body awareness
and mindfulness in the relationship between exercise and eating behavior. Journal of Sport
and Exercise Psychology, 35(6), pp.655-660.
Onabanjo, O.O., 2014. Nutritional, functional and sensory properties of biscuit produced
from wheat-sweet potato composite. Journal of Food Technology Research, 1(2), pp.111-
121.
Peng, Z., Li, J., Guan, Y. and Zhao, G., 2013. Effect of carriers on physicochemical
properties, antioxidant activities and biological components of spray-dried purple sweet
potato flours. LWT-Food Science and Technology, 51(1), pp.348-355.
Raheem, A.R., Vishnu, P. and Ahmed, A.M., 2014. Impact of product packaging on
consumer’s buying behavior. European journal of scientific research, 122(2), pp.125-134.
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