MARKETING PLAN

SWOT MATRIX/ ANALYSIS

Daniela Kolouchová

Marketing plan

• Important company document (1 year) vs. Long Term Plan (3-5 years)

• Summary of marketing activities and financial resources

• It must be approved:

by marketing management

by company management (local, regional, global)

• Is binding for other departments (production, logistic, purchasing…)

Marketing plan – 6 key activites

1.

Situationanalysis

2.

Marketing objectives

3.

Marketing strategy

4.

Marketing MIX

5.

Finantial planand Marketing

budget

6.

Action plan

1. Situation analysis

WHAT WE KNOW?

• The systematic collection of relevant data

• Studies and analysis of past and present data

• Identify and estimate trends, market conditions and potential

(competition, media, customer, consumer; micro and micro env.)

• Use primary and secondary data,

both internal and external

• SWOT, PEST, Porter five forces analysis, BCG matrix

1. Situation analysis

• Market analysis

• Competition (market share, prices, media investments, novelties…)

• Consumers (current, potential, ex-users)

• MKT Strategy (Segmentation, Targeting, Positioning)

• MKT MIX

• Product – quality, brand (awareness, loyalty, sales results (turnover,

profit, margin, seasonality…))

• Price – positioning vs. reality…

• Place - distribution

• Promotion – communication (effectiveness of expenditures, „brand

power“)

1. Situation analysis – competition

Public and non-public competitive documents (Competitive intelligence)

• Annual reports, newspaper articles, exhibitions / fairs, publicly

available research, associations …

• Price lists, communication mix, awareness, loyalty …

• Sales representatives, consumer research (competitive strengths

and weaknesses), retail audits …

• Present, Past – Trends

Aim:

• To understand the competitive strategy

• To minimize losses in the future

1. Situation analysis – Consumer

Public and non-public documents focused on consumer characteristics

(Customer value management)

• Publicly available research (sociological, psychological,

anthropological studies), public administration, associations, publicly

available statistics ...

• Consumer research (shopping and usage behaviour, media

behaviour …)

• Present, Past – Trends

Goals:

• Deep knowlidge and understanding of consumer „insights“ (thinking)

• Proper segmentation, targeting and positioning and MKT Mix

• Minimize the cost to acquire and maintain valuable consumers

• The structured planning method (marketing, business)

• The basic tool to summarize internal analysis (strengths and

weaknesses of the company) and external analysis (opportunities

and threats)

• Method created by Albert Humphrey from the Stanford Research

Institute (1960)

• The current situation + trends

• A simple tool with precise formulation of internal and external factors

(from micro and macro environment – PEST, Porter´s 5, etc.)

1. Situation analysis – SWOT

1. Situation analysis - SWOT

STRENGTHS

High brand valueHigh product quality

Quality distribution networkSufficient marketing budget

High level of technologyHigh profitability of the product

company, etc..

WEAKNESSES

Low brand awarenessLow produc tquality

Insufficient distribution level

A small marketing budgetLow level of technology

Low profitability of the product companies, etc..

OPPORTUNITIES

Demographic trendsChanges in the purchase power

Lifestyle changesFashion influenceWeak competitors

Legal changes - environment, polution limits, etc..

THREATS

Demographic trendsChanges in the purchase power

Lifestyle changesFashion influenceWeak competitors

Legal changes - environment, polution limits, etc..

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Helpfulto achieving objectives

Harmfulto achieving objectives

Vs.

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titors!

• Strengths and weaknesses ALWAYS compared to our competitors!

• Data, research results – No wishes, dreams or doubts (check!)

• No formulation of marketing strategy or marketing tactic (=MKT MIX)!• Keep position Nr. 1;

• Launch Audi A8;

• Get distribution in Russia

• Well balanced

• Strengths and Weaknesses (more Strengths)

• Opportunities and Threats (more Opportunities)

• Max 4-5 statements of each quadrant

1. Situation analysis – SWOT

Situation analysis leads to Marketing objectives

Situation analysis (Micro, Macro Environment – SWOT, PEST, Porter´s Five Forces, BCG Matrix etc.)

Key Issues and Key success factors

(you want and you can change them)

Marketing objectives

Case study for Italian market – CRISPI Brand

Case study for Italian market

TASK: Prepare SWOT analysis of your brand CRISPI as a base for your Marketing plan 2020.

Your company AGROITALY operates 15 years on food market producing juices, pasta, pasta sauces. You have started with chips business 5 years ago and

have launched CRISPI brand.

Information and data relevant for internal SWOT quadrants (strengths and weaknesses)

1) The main selling point of your actual products (CRISPI classic potato chips – salted, onion taste, fromage taste, ham taste) so far: HORECA channel

(HOtels, REstaurants and CAfes).

2) Your chips brand CRISPI was listed (=registered for sales with booked and dedicated shelf place) and started sales in January in the distribution network

Carrefour. This is your first listing success with the mass-market channel.

3) Your two premium prototypes of BIO chips (rosemary and cherry tomato taste) have achieved great acclaim in comparative (with competition) blind

test among consumers in terms of taste and product quality.

4) However consumers did not like poor design of flavour and had problem to recognise your brand (CRISPI) on the packaging.

5) Your company has never aired any advertising on TV or other mass media except internet (websites, banners, social media).

6) Your turnover in 2019 (realized only in HORECA) achieved 25 mio EUR with 12% profitability.

7) Your CRISPI brand achieved the highest brand awareness (80%) during 2019 market test among bar and pub visitors. Brand awareness of your brand

among mass market buyers/consumers achieved 15%.

8) TOP management generated a marketing budget of EUR 25 mio Euro for 2020 mass market entrance planned in January 2020.

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Information and data relevant for external SWOT quadrants (opportunities and threats)

9) The total Italian chips market turnover was 750 million EUR for 2019.

10) Italian Chips market increased last year by 0,5% (2019/2018). Development in previous years: 2016/2015 (+2%), 2017/2016 (+0,5%), 2018/2017 (-3%).

11) 94% of the total Chips market turnover is realized in supermarkets and hypermarkets. The rest is sold in small shops, cafes, restaurants and hotels,

petrol stations etc.

12) Main players of Chips market are: Nr. 1 – Kellogg´s, Nr. 2 Danone, Nr. 3 United Biscuits, Nr. 4 Bahlsen. The BIG 4 players represent 75% of total

chips business.

13) The BIG 4 players are sold in five biggest distribution channels.

14) The brand awareness of all of BIG 4 players fluctuates 65-70% on average among mass market buyers/consumers.

15) Five big distribution channels on the food market represent 92% of total value market.

16) Carrefour is the biggest chain on the food market (27% of total value market).

17) Players operating on this market spend 12% of their turnover on marketing activities (including promotions at Point of Sales; POS=retail shops), 70% of

their marketing budget is invested into TV advertising

18) The fastest growing chips market segment: chips product “BIO”. It is very popular: 5-7% growth year on year, in 2019 represented 20% ot total value

chips market.

19) Kellogg´s and Danone spent 45% of their marketing budget for communication at the Point of sale (POS).

20) There are new trends among consumers: the popularity of chips’ sauces and BIO chips.

Questions:

How much money all companies are ready to invest on total marketing activities in 2020?

How much money all companies are ready to invest on TV in 2020?

How much money all companies are ready to invest on total marketing

activities in 2020?

750 mio x 0,12 = 90 mio Euro

750 x 0,12 x 0,94 = 84,6 mio Euro

How much money all companies are ready to invest on TV in 2020?

90 x 0,7 = 63 mio Euro

84,6 x 0,7 = 59,2 mio Euro

Questions from Case study CRISPI:

1) The main selling point of your actual products (CRISPI classic potato chips – salted, onion taste, fromage taste, ham taste) so far: HORECA channel (HOtels, REstaurants and CAfes). 2) Your chips brand CRISPI was listed (=registered for sales with booked and dedicated shelf place) and started sales in January in the distribution network Carrefour. This is your first listing success with the mass-market channel.3) Your two premium prototypes of BIO chips (rosemary and cherry tomato taste) have achieved great acclaim in comparative (with competition) blind test among consumers in terms of taste and product quality. 4) However consumers did not like poor design of flavour and had problem to recognise your brand (CRISPI) on the packaging.5) Your company has never aired any advertising on TV or other mass media except internet (websites, banners, social media).6) Your turnover in 2019 (realized only in HORECA) achieved 25 mio EUR with 12% profitability. 7) Your CRISPI brand achieved the highest brand awareness (80%) during 2019 market test among bar and pub visitors. Brand awareness of your brand among mass market buyers/consumers achieved 15%.

8) TOP management generated a marketing budget of EUR 25 mio Euro for 2020 mass market

entrance planned in January 2020.

SWOT matrix/ analysis – CRISPI BRAND

STRENGTHS

1. Succesfull prototype Bio-Pringletests:

- taste

- quality

2. Competitive marketing budget (25 M vs. 90 M total market)

WEAKNESSES

1. Listing only in Carrefour!!!

2. Prototype Bio Pringle test flops:

- packaging - poor design of flavour

- packaging – brand recognition

3. No TV experience

4. Low Brand awareness

OPPORTUNITIES THREATS

9) The total Italian chips market turnover was 750 million EUR for 2019. 10) Italian Chips market increased last year by 0,5% (2019/2018). Development in previous years: 2016/2015 (+2%), 2017/2016 (+0,5%), 2018/2017 (-3%).11) 94% of the total Chips market turnover is realized in supermarkets and hypermarkets.The rest is sold in small shops, cafes, restaurants and hotels, petrol stations etc. 12) Main players of Chips market are: Nr. 1 – Kellogg´s, Nr. 2 Danone, Nr. 3 United Biscuits, Nr. 4 Bahlsen. The BIG 4 players represent 75% of total chips business. 13) The BIG 4 players are sold in five biggest distribution channels. 14) The brand awareness of all of BIG 4 players fluctuates 65-70% on average among mass market buyers/consumers. 15) Five big distribution channels on the food market represent 92% of total value market.16) Carrefour is the biggest chain on the food market (27% of total value market). 17) Players operating on this market spend 12% of their turnover on marketing activities(including promotions at Point of Sales; POS=retail shops), 70% of their marketing budget is invested into TV advertising18) The fastest growing chips market segment: chips product “BIO”. It is very popular: 5-7% growth year on year, in 2019 represented 20% ot total value chips market.19) Kellogg´s and Danone spent 45% of their marketing budget for communication at the Point of sale (POS).

20) There are new trends among consumers: the popularity of chips’ sauces and BIO chips.

SWOT matrix/ analysis – CRISPI BRAND

STRENGTHS

1. Succesfull prototype Bio-Pringletests:

- taste

- quality

2. Competitive marketing budget (25 M vs. 90 M total market)

WEAKNESSES

1. Listing only in Carrefour!!!

2. Prototype Bio Pringle test flops:

- packaging - poor design of flavour

- packaging – brand recognition

3. No TV experience

4. Low Brand awareness

OPPORTUNITIES

1. Growing popularity of Bio Chips(YoY by 5-7%)

2. Growing popularity of Dips

THREATS

1. Stagnating chips market

2. Strong and stable competitionBIG4 ( 75%)

3. Kellog´s and Danone invest 45% atPOS.

4. BIG 4 invest 70% behind TV ads.

Situation analysis leads to Marketing objectives

Situation analysis (Micro, Macro Environment – SWOT, PEST, Porter´s Five Forces, BCG Matrix etc.)

Key Issues and Key success factors

(you want and you can change them)

Marketing objectives

Key issues evident from SWOT:

1. Succesfull prototype Bio-Pringle (+Growing popularity of Bio Chips)

2. Competitive marketing budget (+ low brand awareness)

3. Listing only in Carrefour!!!

4. Prototype Bio Pringle test flops

5. Kellog´s and Danone invest 45% at POS

6. BIG 4 invest 70% behind TV ads

• To be continued next Wednesday…