Marketing contributes to the success of a business in various aspects. It is through it that the public is made aware of the product, which in turn leads to the boosting of the sales. The reputation of a business is also greatly built through marketing. The organization plan helps one to know whether is pursuing a futile venture or not. This is as a result of researching the conditions of the existing market before venturing into it (Stone, 2001). A good organization plan describes the purpose of the business thus being in a position to convince others that the business is to be successful and profitable. An organization plan facilitates coming up with business goals and strategies (Lawley, 2007).
Discuss the marketing research process for the product/service of the new venture
Defining marketing problems in the market process is very crucial. One of the major problems facing the new venture is that its products are relatively new. Very few consumers may be aware that there are nutritious snacks specifically manufacturers to meet commuters’ needs (Wright, & Crimp, 2000). In most cases, the lack of enough capital proves to be a major problem in marketing. This is because marketing spends a significant portion of the fund which may pose a challenge to a new venture. In this case, for the business to succeed in this area, the optimal use of the capital that is available is very important.
The second step in the marketing process is to set objectives of what is needed to be achieved at the end of every research project. This is crucial as it helps not to research on less or more than expected. Marketing research expenditure is determined through the preparation of the budget before starting the process. Finally, in this step, a timetable on how the events should follow each other during the research should be made to avoid wastage of time (Pakroo, 2010).
After this, what follows next is a selection of marketing research methods and techniques most appropriate in market research. There many marketing research techniques for instant use of brochures, newsletters, advertising, use of newsletters, networking among others. In this case, the venture will make use of brochures that will be distributed in the bus waiting bays to sensitize commuters about the new products in the market. After identification of which method will be employed, consideration of the design research instruments to be used is also necessary (Wrenn, Stevens, & Loudon, 2007).
This follows identifying suitable research instruments to gather information concerning the product in the market or assess the expected market of the new venture. Having gathered the information one can now organize and analyze the data. From this marketing, research findings are drawn on the opportunities in the market to make a decision either to go for the business.
Discuss the target market for the product/service
The target market for the business venture includes commuters in general. However, the young generation presents the most potent part of the market because of their high level of mobility. They also form the largest portion of the general population. Therefore, market segmentation is of great importance because once businesses gain entry into the market large volume of sales is expected to come from this group. In this category, children form a significant portion. Young children during traveling do not miss to have something to eat on their way.
Parents are fond of buying some light snacks for their children when starveling. Similarly, teenagers also have fun having snacks on their journey especially if they are on a long journey. Adults from the least portion of the market target. Though they also buy snacks during travel time, it is not with great frequency as for teenagers and young children. Nevertheless, they present an important group in the market segmentation because if they like business’s products they are likely to advocate for them to their children.
Discuss the marketing mix components: product strategy (position, branding), pricing strategy, distribution (marketing channel) concept, and promotional (marketing communication) strategy
The marketing mix is elements of the sale in a particular product. These include four P’s namely product, pricing, place (distribution), and promotion. Since there are no healthy and nutritious snacks that are specifically designed for commuters, there needs to make business products easily identifiable and appealing to the consumers at first sight which involves branding. This includes assigning a suitable product name, sign, design, and symbol in which the snacks will be identified.
To come up with a pricing strategy, factors such as products, competitors’ prices, cost of production, and profit margin expected besides other elements of the market mix will be included. Regarding competitors’ prices, prices of already available snacks will be taken into consideration. This would need at least to offer products at very competitive prices to win consumers and make them try business products. Nevertheless, the cost of production will be considered to avoid running at a loss.
The venture product distribution will include wholesalers and retailers. The enterprise will also make use of its own sales representatives to sell products directly to consumers. This will enhance product sensitization. However, the anticipated distribution problem is that at first wholesalers and retailers may not be willing to stock business products for the first time until they realize their demands from consumers. So, it will need a lot of patience and extensive promotion of the products to make the public aware of the business products.
Promotion strategy will employ a sales representative approach, among others. This will involve providing free samples for the trial of the business products. There will also be gifts and offering of credit to wholesalers to motivate them to sell business products. Publicity will also be considered because this will help reach a great number of potential consumers within a short time.
Discuss the legal structure of the organization and the rationale for this form
Some considerations are to be used when choosing the legal structure of the organization. The first thing to put into consideration is the business structure. These are the ease of creation and the maintenance, treatment of assets, liabilities, and income, legal protection from risk, and finally the treatment of taxes (Pakroo, 2010). Since the business has to do with food then legal health requirements have to be met before starting the business (Wright, & Crimp, 2000). Public health officer has to verify that all health standards are met. This includes sanitation conditions where the business will be operating and the health status of the employees especially those who will be involved in food production.
Discuss the organization structure for the organization and the rationale for this structure
The organizational structure of any business depends on the product to be developed. This highly depends on the functional and the project organization. In this venture, a senior functional manager is required for the responsibility of allocating resources (Lawler, 2007). The person who will take this responsibility needs to have high academic and professional skills in the managerial ground in the food industry. He has to have some work and business experience.
A business product manager will also be needed who will have the responsibility to coordinates product creation with liaison to other representatives. He is also responsible for planning, recruitment of workers, paying of workers is needed. The snacks have to be distributed in all major cities and towns, so several distributors are needed, and it is the role of the business manager to coordinates them all (Stone, 2001). The assistant manager is therefore needed to help the product manager in carrying out his responsibilities.
Besides this, there will be a receptionist to handle any business inquires. Businesses will need to hire a lawyer to help in legal matters. Certified public accountants will be employed to ensure that business runs smoothly in terms of finance. In the production unit, workers with qualifications in food production will be employed. Ground personnel with being hired to ensure that the premises are kept clean.
Lawley, B. (2007). Expert product management: advanced techniques, tips & strategies for product management & product marketing. London: Happy About.
Pakroo, P. (2010). The Small Business Start-Up Kit for California. California: Nolo.
Stone, P. (2001). Make marketing work for you: boost your profits with proven marketing techniques. London: How To Books Ltd.
Wrenn, B., Stevens, R.E., & Loudon, D.L. (2007). Marketing research: text and cases.. London: Routledge.
Wright, L.T., & Crimp, M. (2000). The marketing research process. New York: Financial Times Prentice Hall.