Final Marketing Plan

Simply Real Foods Company

Final Marketing Plan The Simply Real Foods Company is branching into selling potato chips. This company is dedicated to producing foods that have high quality, simple, real ingredients that taste great. Effective marketing of these potato chips is key. The product tactical plan and the placement tactical plan are very important, as well. The chips must look and taste just right to get the target group to purchase them. The pricing and promotion of these chips will determine just how much Simply Real Foods will sell of the chips.
Product Tactical Plan * A crunchy, salty potato chip full of flavor * Made with only potatoes, sunflower/ cannoli oil, and salt * Simply Real Food Company, To-Go Perfect Potato Chips * Great tasting, healthy, on-the-go snack that keeps up with you * Clean and healthy, something that not only tastes good but that is good for you * The packaging will be bright greens and yellows, natural greens and yellows, with white and brown accents and wording * On the front: Simply Real Foods logo, To-Go Perfect Potato Chips, 1oz or 6.5oz or 7.5oz, in a bright yellow bag, with green handle and green seal * Starting with original potato chip, then add unsalted, different flavored potato chips, BBQ, salt and vinegar, spicy jalapeño, garlic, and/ or herb, then introduce sweet potato chips, beet chips, and vegetable chips * The highest quality ingredients bought at the best prices
Product Tactical Plan Rational
The chips should be crunchy and salty because that is what anyone wants when they eat potato chips. By using only potatoes, sunflower/ cannoli oil, and salt there are not preservatives or other unhealthy ingredients, keeping the chips a healthy snack option. Keeping the bag simple keeps the bag in line with SRF theme. That their foods are simple and completely real. Then when people think of the products that goes hand and hand with the company itself. The bright colors will draw attention, and the design of the bag will intrigue people to buy the chips, and once they taste how great the chips are they will continue to buy them. Different sizes are great for taking the chips with you or the family for lunch or a snack. Starting with original potato chips and perfecting that recipe and gaining customers is key before expanding. Making a potato chip that tastes great is key and by selling it at a great price and designing the bag perfectly for transport, this will be the most successful product of Simply Real Food Company. These chips are not unique or vastly different than other chips on the market but what will stand out is the lower price and the quality of each bag of chips and that every part of the chip is local. The price will be lower, the taste will be better, and everything used in production will be local.
Place Tactical Plan Channel partners will be selected based on the people who shop there or that will be in those locations. Grocery stores, such as Whole Foods and Sprouts, are ideal, because they are smaller and focus on local products and foods that are healthy and that use quality ingredients. Plus, they already are partners with these retailers. Smaller locations can include ski lodges or places that cater mostly to active outdoors people, such as REI and Vail Resorts. Smart Door to door sales or home delivery is not efficient. The customer base will be key in choosing selling locations. Higher income areas that have family that are financially stable and where the area is active. Simply Real Foods can directly ship bags to retail locations. Basically the way it works: Simply Real Foods ships to central warehouses for each retail chain like Whole Foods, then the retailer is responsible for delivering to each individual store This product should not be warehoused for long, therefore, only a small facility will be required to store bags. This warehouse should be next to the manufacturing area. This will be greener for the environment. This will ensure freshness of the chips. Simply Real Foods should choose a distribution method that would use busses or trucks to deliver the product directly to the sales areas. Delivery once a week or once a month will be best in less emissions and use less fuel. Manufacturing in or around the area of distribution is less harmful for the environment. Consumers will choose a local product if the quality and price are similar to competing products, because it will taste better and supports the local economy, and it will be better for the environment.
Rational for Place Tactical Plan The facilities used to distribute are already in existence. Access to customer base will be used to select channel partners. Active people of all ages shop at Whole Foods and Sprouts, and other similar stores. Families shop at health food stores, as well. Families and people who are active are constantly in ski resorts, outdoor supply stores, and small towns that offer many different outdoor activities and family activities. Since the busses and trucks are already owned, shipping using those busses and trucks is ideal. The warehouse already owned by Simply Real Foods Company will be used, to save money and be more efficient. Simply Real Foods Company needs to be conscious of distance, gasoline use, emissions from vehicles, and efficiency of the factory when choosing a channel of distribution. Consumers will choose local brands because products are fresher, less fuel is used, the production is less harmful to the environment, and the community is strengthen by buying local.
Price Tactical Plan Simply Real Foods Company will manufacture potato chips in bags sizes 1ounce, 5 ounce, and 13 ounce. When the retailers sell the potato chips the 1-ounce bag should cost between $0.95 to $1.05 when it is sold. The 5-ounce bag should cost between $2.87 to $2.97. The 13-ounce bag should cost between $4.67 to $4.77. The goal for Simply Real Foods should be to produce the chips at the lowest possible price by being the most efficient in manufacturing. Prices should be compared to Kettle chips and to Terra chip prices. Both companies have good chips and market their chips in the same markets that Simply Real Food wants to sell their chips on. These prices tell the consumer that Simply Real Foods Company stands by their products and an ethical commitment to keeping prices low. That Simply Real Foods Company is devoted to maintaining the company and the company’s motto to “feed your family the way you feed your family” without having high prices. Simply Real Foods Company will need to find a potato supplier, a supplier for cannoli oil and sunflower oil, and a sea salt supplier. Simply Real Foods should try to find local, in state, suppliers, that can supply large quantities at the lowest cost possible. By using all local suppliers and keeping manufacturing efficient Simply Real Foods will be able to keep prices low. Anyone who wants their family to have a health yet tasty snack should be able to afford Simply Real Foods potato chips.
Rational for Price Tactical Plan Simply Real Foods Company is basing their prices below Terra prices for potato chips and below the cost for Kettle Chips. From a store, Kettle chips cost $0.99 for a 1-ounce bag, $2.99 for a 5-ounce bag, and $4.79 for a 13-ounce bag. Kettle Chips cost less money than Terra chips. Simply Real Foods Company should base their prices less than Kettle’s prices. Each distributer will mark up the product by 40-50% and Simply Real Foods will need to increase the price by 55% to make a profit. Having the lowest prices is the best way to attract customers and keep customers. Once they try the chips, they will be customers for life. By having the lowest prices the customers will know that Simply Real Foods Company is dedicated to them and the products they make. Suppliers should be local to keep prices of the ingredients low, keep shipping costs down, and reduce the pollution to the atmosphere.
Promotion Plan Simply Real Foods Company will promote their potato chips at events and street marketing that cater to the market group, sales promotions, and advertising. Events such as marathons, bicycle events, mountain activities, any outdoors centered large activity, or local food or drink festival would be a wonderful place to promote Simply Real Foods potato chips, by handing out free samples and coupons. This is a great way to start promoting Simply Real Foods potato chips, but this only reaches small groups. Sales promotions, co-ops, and coupons will be given to retailers, such as, Whole Foods, Sprouts, and REI, or placed in the mail. Coupons are great because they make products more appealing to price sensitive consumers and are an effective way to introduce products to the market. The draw back is that consumers get used to paying less and may no longer pay the full price, coupons are used by loyal consumers who may purchase anyway, and declining redemption rates and high costs of couponing. Advertisements will be placed in newspapers, the web, and billboards. The Simply Real Foods website should have interactive games and funny movies explaining why eating healthy food that does not have fillers or processed foods in it is better for the consumer. The promotion that Simply Real Foods will rely on the most is going to be word of mouth. Because a biker telling another bike or a mother telling another mother is the strongest promotion anything can have.
Promotion Section Rational Events and street marketing are key. The selected target audience will be there and other groups will be there as well. Sales promotions, co-ops, and coupons are a great way to get people to buy Simply Real Foods potato chips. People look through the val-pack they get in the mail; coupons in newspapers, coupons can also be put directly on the bags for sale. Advertisements need to instantly grab the attention of the consumer, be simple, it needs to entertain the consumer, and needs a creative jingle. Simply Real Foods Company will make a tasty, crisp, potato chip. Simply Real Foods focuses on simply, healthy, real food. They will maintain their dedication to simple real foods by maintaining the motto that they “feed your family the way you feed your family.” Eventually, they can branch into different flavors of potato chips and vegetable chips, but start with just simple potato chips. Grocery stores like Whole Foods and Sprouts will sell the potato chips. Smaller retailers will be sporting stores, like REI, and outdoor centered areas, like Vail Mountain. Prices will be kept low by using local products and shipping directly to the seller with vehicles that Simply Real Foods already owns. The strongest form of promotion will be through word of mouth. Other promotion methods will occur at events and through street marketing, through sales promotions and coupons, and advertising.

Reference
Simply Real Foods Company. Accessed September 13, 2013. http://simplyrealfoods.weebly.com/about-us.html
The PDF for Promotions, Week 4, of class was used. Accessed September 18,2013.
To find out the prices of Kettle chips and Terra chips I went to Sprouts market and Whole Foods.