TARGET MARKET DISTRIBUTORS
Distributors represent the primary market targeted by Guy-Tri Foods. Distributors play a vital role in delivering the company's products to consumers. Guy-Tri Foods should target distributors who have a comprehensive distribution network that it will be able to make its Island Taste-Pepper Medley widely available within the hot sauce market. Since Guy-Tri Foods products have an advantageous shelf life, it is more appropriate to include distributors in its supply chain.
Guy-Tri Foods should seek dedicated and reliable distributors who are conversant with their areas of distribution. A good distributor understands his/her market base and the clients' needs, and this is the kind of distributor that Guy-Tri Foods should be aiming at. The type of distributor that is flexible enough to fulfill the demands of the company concerning location, working hours and payment details. Distributors are an important target market for Guy-Tri Foods because they allow it to ensure that its products are positioned in locations convenient to final consumers. (Kotler and Gary 14)
Guy-Tri Foods has a large market base as its products are appreciated for their high quality. The purchase behavior of the market is not bad although a lot needs to be done to pump those numbers up. Demographically, Guy Tri-Foods ensures each region is adequately and efficiently supplied with its products without much hustle. The psychographics of the target market are people who have average to high spending habits. These are individuals who purchase Guy-Tri Foods as a luxury and are not struggling financially.
DIRECT AND INDIRECT COMPETITORS
Hot sauce manufacturers within the market are the direct competitors of Guy-Tri Foods. These manufacturers compete directly with Guy-Tri Foods because they produce and deliver similar products. They also target similar markets and consumer segments. The competitiveness of Guy-Tri Foods in the market is defined by its ability to overcome the rivalry emanating from its direct competitors. Guy-Tri Foods must understand its direct competitors because customers consider product features, service levels, locations and price points in making decisions related to purchasing of products from companies that are competing directly in the same market (Ellis 51). To overcome the rivalry of its direct competitors, Guy-Tri Foods should ensure that it provides product features that are better than the competition concerning quality. Distributors may opt for Guy-Tri Foods' direct competitors if the features of its brand are less attractive. The company must also provide high service levels to its target market to overcome the rivalry of direct competitors. Unique marketing mix options will enable Guy-Tri Foods to compete favorably against direct competitors. Furthermore, Guy-Tri Foods needs to understand how its direct competitors design and apply competitive and brand positioning strategies so that it can implement market mix options that are more innovative and appealing to the target market (Ellis 37).
Guy-Tri Foods indirect competitors are companies offering substitute products. They include manufacturers of ketchup, lemon grass, and lard. The level at which Guy-Tri Foods satisfies the needs of its customers will determine its effectiveness in competing against indirect competitors. Therefore, the company should design and implement appropriate strategies for achieving a high level of consumer satisfaction to prevent its customers from opting for substitute products from its indirect competitors. Customer value propositions, including quality and convenience, will enable Guy-Tri Foods to overcome competition from indirect competitors (Kotler and Gary 21).
BRAND POSITIONING STATEMENT
We live in a rather competitive world and to succeed in business, you either have to step up or step out. It is a man eat man society and the weak in the food chain are preyed on and consumed. To avoid this, one has to up their game to remain relevant in the market. In that case, positioning is everything. You could have all the other factors correct such as labor, proximity to raw materials, ready market; you name it, but if your positioning is not right, you are bound to fail. Positioning is the ability to occupy a distinct, particular and advantageous position in the mind of the consumer. It is a combination of several factors such as pricing, distribution, and advertising.
For distributors and customers, Island Taste-Pepper Medley is the highest quality product among all hot sauce brands in the market because it is produced using a combination of superior ingredients designed to satisfy consumers and give them value for their money.
Part 2: SWOT Analysis
Table 1: SWOT Analysis
High-quality Island Taste-Pepper Medley
Variety of tastes, including hot and mild
Excellent customer service
Adherence to food safety guidelines
Low-cost pricing ($4.99) Low market share
The company has no distributors
No market branches
Higher profit margins
Development of a distribution network
Developing new products/variety Price competition from new entrants
Increase in cost of labor and production
Changes in regulatory framework targeting the food industry
Table 2: Opportunity Matrix
Guy-Tri Foods takes advantage of consciousness of consumers on healthy eating to provide healthier options for its customers
Offering takeout or take-home and delivery services to customers
Building a secure distribution system.
Table 3: Threat Matrix
Hot sauce manufacturers within the market may produce superior/high-quality products
Economic recession may impact negatively on the purchasing power of customers
Increase in production and operation costs
Compliance with changing operational regulations
Part 3: Brand Communication Strategy
To ensure that the right information is communicated to the desired target market in the right way.
DemographicsThe targeted customers are the residents of Island Taste-Pepper Medley. The entire population qualifies to be a target audience for the products offered by Guy-Tri Foods are efficient and viable for different age groups. The marketing communication strategies, messages, and images will be designed specifically for grocery stores, supermarkets and consumers of hot sauce. The company's marketing strategy is intended to increase the number of grocery stores and supermarkets stocking and selling Island Taste-Pepper Medley. The goal of targeting consumers in marking communication will be to increase the number of buyers and consumers of the Island Taste-Pepper Medley. Besides, the marketing communication processes will focus on increasing the volume of Island Taste-Pepper Medley sales within grocery stores and supermarkets and the frequency of sales transactions. To achieve this, Guy-Tri Foods will increase it's advertising to grocery stores, supermarkets, and consumers of hot sauces.
The target audience will be specialized to people with preferences for hot sauce. Such individuals who prefer to take their foods with hot sauce and would not mind parting with a few dollars for the same. Guy-Tri Foods will target grocery stores and supermarkets within urban centers. This is aimed at taking advantage of demographically populated markets in advancing the companys objectives of increasing Island Taste-Pepper Medley sales. Guy-Tri Foods will target consumers of hot sauce in line with their purchase behaviors, lifestyles, values, psychographics and demographics. For instance, the company will target consumers who prefer to do shopping in grocery stores and supermarkets. Guy-Tri Foods will also target customers who have more preference for hot sauce than substitutes, such as ketchup and lemon grass, which depends on their lifestyle and psychographic attributes. The main consumer market for Island Taste-Pepper Medley is the urban population. Guy-Tri Foods will target a wide range of consumers across different socioeconomic groups and including families, organizational employees and students.
The end benefit will be to come up with the affordable high-quality hot sauce. In many cases, companies that offer low prices usually end up compromising on the quality of the product. Guy-Tri Foods aims to give consumers a run for their money by offering the best there is in the market.
Island Taste-Pepper Medley is made from peppers that are 100% home grown with just a meager amount of vinegar and salt. The brand is often based on one pepper varietal per batch, including Carolina Reaper. The company has been making high-quality hot sauces since January 2012, including ghost peppers and aged red peppers batches, depending on the changing preferences of customers. The attractive bottle design and branding makes Island Taste-Pepper Medley the preferred brand of choice by most hot sauce enthusiasts. The product is easily available for buyers who prefer to order online.
CURRENT BRAND POSITIONING
Currently, we are viewed by the consumers as one of the good hot sauce producing company. Consumers prefer to consult us on their hot sauce needs but would not mind to visit our competitors and try something new for comparison purposes. This reduces our sales and profits because we end up losing some customers to our competitors.
DESIRED BRAND POSITIONING
To occupy a distinct, special and advantageous position in the mind of the consumer through a combination of several factors such as pricing, distribution and advertising. Fast food industry is very competitive and to be able to win new customers as well as retain the old ones, your prices should not be too high as it will drive them away and into your competitors. Pricing in the context of positioning involves researching about your competitors prices and adjusting yours respectively. The goal is not to offer the lowest price in the market but rather to remain relevant in your pricing without compromising on the quality. Secondly, distribution plays a role in positioning.
Competitive pricing of Island Taste-Pepper Medley allows Guy-Tri Foods to provide its consumers with value for money. The $4.99 price tag for Island Taste-Pepper Medley makes it cost effective when compared with similar and substitute products of lower quality. Guy-Tri Foods meets the expectations of its customers in the selection, blending and manufacture of its hot sauce brand, and at the same time provide them with reasonable pricing. The pricing of Island Taste-Pepper Medley is based on the understanding of the needs of its distributors and retailers for profitable business partnership. Guy-Tri Foods also ensures that the price of its hot sauce is reasonable in order to prevent passing of additional costs to final consumers.
The pepper varieties used in the manufacture of Island Taste-Pepper Medley are perfectly hot as they are grown on rich soils. The potent concoction of ingredients, which characterize Island Taste-Pepper Medley, makes it the perfect choice for the lovers of hot sauce. The long shelf life of Island Taste-Pepper Medley also makes an attractive choice for distributors and retailers because it provides them with a sense of security in holding an extensive inventory. The right balance of ingredients in the production process also makes the Island Taste-Pepper Medley suited for the changing preferences of hot sauce lovers.
Ellis, Nick. Business-to-business Marketing: Relationships, Networks and Strategies. Oxford: Oxford University Press, 2010. Print.
Kotler, Philip, and Gary Armstrong. Principles of marketing. Pearson Education, 2010. Print
If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:
- Argumentative Essay Example on the Impact of Illegal Immigration in the USA
- Scholarship Letter Example
- The Importance of Leadership in Effective Business Management
- Atticus Finch Character Analysis in To Kill a Mockingbird - Essay Sample
- William Shakespeare's Venus and Adonis: Red and White
- Essay Example on Bullying, Its Forms, and Impacts
- Answers to Questions on Optical Problems and Correcting Lenses
- Replication of Bargh et al.'s Experiment
- Long Live the Web
- Admission Letter to The Watson School of Biological Sciences
- The Hound of the Baskervilles by Sir Arthur Conan Doyle
- Are Cyber-attacks a Threat to Today's Society? Essay Example