D&S Sweets Marketing Strategy Plan
D&S Sweets Marketing Strategy Plan
FILE: 1749832
INSTRUCTOR:
CLAUDIA LINARES
2020
TABLE OF CONTENTS
1. INTRODUCTION
2. GENERAL OBJECTIVES
2.1 SPECIFIC OBJETIVES
5. MARKET
5.1 The target market
5.2 Desired margins
6. THE DEMAND
6.1COMPETITION EXCHANGE RATE
7. EXCHANGE RATE
We generally find that large companies in the world invest a lot of money in the
advertising, design and display of their products or services; these in turn use
highly relevant media and reach their target audience such as television, radio,
physical advertising media such as magazines, newspapers etc.…The main
objective is always to reach the minds of consumers and sow in them the ideal
idea of the product or service, however this is not an easy task, it requires analysis,
effort and dedication.
Advertising, such as Marketing My, although they are an important means to
strengthen the brand and generate sales growth, should be used in the best way
because otherwise it may generate the wrong perception of the target customer
and also that it would be generating economic losses to the company.
POP material is used in almost all companies to promote the purchase of their
products in the establishments where they are exhibited and sold, but it also joins
qualified personnel as a more accurate means of reaching customers, such as the
promoters that we find in chain department stores who are responsible for offering
tastings and visually showing us the benefits of the product.
Taking into account the previous information in this work, we will find, what, and in
what way is SWEET D&S using the elements of Marketing mix in the sales
promotion process of its products, analyze how they can be improved or changed
and thus determine what the appropriate to directly reach the target customer and
generate an efficient result in the display and promotion of the product.
2. GENERAL PURPOSE
Find and recognize which are the problems that may be presenting in the company
D&S sweets, at the moment the products offered by the company are exhibited,
achieving the attraction of our current and potential customers, motivating them to
In the candy sector, recent years has been driven by a dynamic of supply and
innovation, with a variety of companies, which allow the buyer a wide variety of
products depending on the taste and quality of the product.
D&S sweets, wants to present its new line of blueberries covered with chocolate in
the market, during the last period we have presented a lower number of sales, this
has become our main problem, one of the main causes may be the low publicity in
our products.
Focusing on this we have decided as a company a specific and detailed approach
in the promotion and distribution of SWEETS D&S. This is reflected in sales, and
thus achieve an exhibition of our products in places like. Fairs and others, since
this allows us to make ourselves known, call new clients and improve our position
in the market, in order to be the best candy store and satisfy all the needs of our
client and future clients.
3.2 APPROACH TO THE STUDY PROBLEM
“Aranda Choc”, for sale and distribution in the municipality of Soacha and the city
of Bogotá as the first strategic destinations.
BUDGET OF SALES
MISSION
We are a company that processes sugar derivatives of the highest quality in favor
of national development, with the highest quality indices complying with good
manufacturing practices in search of satisfying the palates of our customers.
VISION
To be positioned by 2020 in the national market, being a great company in
attention, service and product, occupying the first places in the lists of our clients.
Loyalty to our customers with the best service and quality products for their
economic benefits. Having technologies and development for the elaboration of our
products.
PRICE MENU
MANI BALL OF
FRENCH ALMONDS OF COLORS OR
COMPANY UNICOLOR
COLORS OR UNICOLOR
PRESENTATION. PRESENTATION
PRICE IN PESOS D&S SWEETS S.A.S. PRICE IN PESOS
The objectives are the ends towards which an activity is directed, they represent
not only the purpose of planning, but also the end towards which the organization
is heading. The objectives of the company constitute the basic plan of the same,
among them we find the following:
Innovate sales techniques to encourage the consumption of our products.
Create value-added products to meet the needs of the market.
Position the SWEET D&S brand across current markets to meet customer
needs.
Open new points of sale in the country.
Make sales promotions using products at low cost.
Create a sales promotion to increase them and build customer loyalty.
Train personnel in the elaboration of products.
In this sense, it is still a bit imprecise to ensure any data because it is a small
company with little competitive track record, its position is uncertain. Well, in the
market you can find several even larger companies that have not yet defined their
position because they do not mark large sales to reflect any position.
There is also no known entity that refers to this type of data with respect to small
companies.
CITY % OF PARTICIPATION
Bogotá 40%
Bucaramanga 14%
Soacha 6%
Sogamoso 4%
Santa Marta 12%
Barranquilla 20%
Cartagena de Indias 2%
Pereira 2%
4.6 PRODUCT MIXING STRATEGY
SWEET D&S manufactures sugar and chocolate covered sweets, transforms raw
materials into final products for mass consumption, among its products are:
During 2018, companies that sell chocolates and sweets in Colombia recorded
sales of 1.07 trillion pesos and for 2019, they are expected to bill 1.25 trillion
pesos, with an increase of 16 percent.
The market of duces in Colombia is registering better income thanks to its
versatility, variety and creativity of this industry, however, in 2018, for these
companies, the national sales of 294.3 billion were reflected.
Slowdown in the domestic market with a decrease of 4 percent, despite efforts with
new products and promotional and marketing activities.
SWEET D&S must work on plans and strategies to penetrate the market and
achieve brand recognition, which is not an easy task given that the mass candy
market considers that imports and contraband affect the local market.
6. THE DEMAND
The demand for sweets in Colombia is high according to the latest reports, it is said
that Colombia leads consumption as it has been at the head of the nations that
consume sweets in the region, preceded by Peru, Venezuela and Ecuador, which
continue to be important buyers of these products.
D&S Sweet uses its distribution to wholesale clients since it becomes a direct route
to the retail client, they generate greater exposure to the market and a greater
market share, and they also sell to other small sellers.
6.1 COMPETITION
Among the competition that D&S Sweet has are leading market companies such
as Italo with its product French Almond in different presentations, triumph with its
product French Almond and as smaller companies we can find nut buffet, Dulfacol
Ltda. And Produl producer.
Sweet S.A.S, each of these manufactures and distributes French type almonds
and in the same way they distribute and sell their products mainly to wholesale
customers.
7. EXCHANGE RATE
It is important to note that inflation in Colombia in this and next year remained
stable, according to the results of this consultation, consumer prices would
increase 3.47 percent this year, compared to 3.48 percent that the market
projected in the December sample, while for the end of 2020 the estimate
remained at 3.20 percent.
The foregoing allows us to see that, the exchange rates not only in the country's
inflation, but also in the changes in the price of the dollar, impact the budget that
must be carried out for the following years since they are reflected in the costs of
inputs and fixed expenses of the company.
In the following article published by the money website, they cite the following:
"In fact, in Andi's latest opinion poll, the exchange rate is the main obstacle to
productive activity and the main factor that is 'holding back investment' by
industrialists. However, the research did not find a significant relationship with
exchange rate volatility or misalignment. In this context, investment seems to be
more related to the size of the firms or their location: those located in Bogotá tend
to invest more than those in other regions of the country.
The research found that the productivity growth of Colombian companies does not
change due to the effect of the exchange rate, what can increase it is the presence
of foreign capital, the economic sector in which the firm operates and its size: the
largest have higher growth. "
For our company SWEETS D&S to be able to set our international prices for our
sweets and products that we handle, we take into account the following factors
such as the economic conditions of the country, competitive situations, laws and
regulations. Prices vary depending on the country, so we require different prices.
And an additional would be the marketing questions that our company requires in
that country, the fixing of prices is based on the costs, for the price of transfers, the
taxes determined for the import and others.
Objectives of international pricing: the objectives of our prices in the foreign market
are intended to: guide the company, the stage of the internationalization process,
look at the stages of the life cycle of the products to be exported, financial goals,
follow the government rules to do it, look at the current competition, and be aware
of the expectations that our potential consumers have.
In determining international prices, the following approaches are taken into
account.
o Market score
o Assessment
o Market maintenance
o Penetration prices
As a company, we carried out a survey to find out the prices that are being handled
internationally, so they gave us the export prices of the countries with the largest
market share.
In order to export our products to New York City to retail stores, the shipment will
be made through FCA, our buyers must make a turn directly, anticipating before
shipping 50% of the total cost of the products, this Money will be received through
a foreign currency bank account. Within 5 days after receiving the product, the
buyer must send us the other 50% of the money missing from the invoice.
This is an analysis that consists of a compilation of the data handled within the
company, the interpretation of these data allows us to compare the results
achieved and thus measure the progress of SWEETS D&S, in the same way it
informs us about profitability, strength or weakness financial, this facilitates
decision making.
This analysis is based on determining the fixed costs, variable costs and therefore
the total costs. These will be reflected in the income statement as costs of sales.
Water 37.000
Light 25.000
phone 30.000
ADMINISTRATIVE EXPENSES
Manager salary 600.000
Counter saleswomen 1 500.000 500.000
Depreciations 245.000
Others (equipment 70.000
maintenance)
TOTAL FIXED COSTS 1.507.000
VARIABLE COSTS
DESCRIPTION QUANTITY UNIT VALUE TOTAL VALUE
Sugar 36.000
Salt 20.000
Essences 40.000
Margarine 50.000
Chocolate 70.000
Almonds 350.000
Eggs 60.000
Milk 30.000
DIRECT LABOR
Workforce 1 500.000 500.000
OTHER DIRECT COSTS
Water 35.000
Light 25.000
Others 60.000
TOTAL VARIABLE COSTS 1.276.000
For our project, assets have been classified in two ways, depreciable fixed assets,
and depreciable fixed assets, and premises arrangements.
There will be investments both at the beginning and in the future, however, the
investment required in the year that we started with SWEETS D&S was $
8,820,000 for the negligible, $ 1,500,000 and pre-operating.
Which means that a total of $ 12,000,000 was left for working capital and cash in
the beginning.
CONCEPT VALUE
The place from which the funds were provided to cover the initial investment that
was previously raised are two:
Bank loan (70%): the most important investment was covered by bank loans, it was
made in the popular bank, a commercial loan with a rate of 15% for a term of 24
months. So monthly payments worth $ 600,000 were made
Investors (30%): for the opening of SWEETS D&S they had the fund of an investor,
who made a contribution of 30%, that is, $ 6,696,000.
SWEETS D&S for the marketing strategies we will make a compilation, analyzing
and making a detailed evaluation of the basic data both internally and externally of
our candy store, we will have the aspects of market analysis, the Dofa analysis, the
analysis of the Matrices and external and internal factors such as the environment
that surrounds us, the advertising image of our company and our direct
competencies, our employees and others such as:
Product: Our company seeks to satisfy the needs of our clients, through the brand,
packaging, design, and flavor of our products, since they must feel satisfied when
making the purchase, with this we will design a better market plan.
Price: when using the strategy of a price that has already been established, it has
great importance in our products, this helps us to enter the market in a competitive
way
Distribution: we have different forms of distribution, either through intermediaries,
or our stores directly.
Advertising: looking for a way to make a better acquisition of customers, through
good advertising, impacting and attracting the attention of our consumers,
campaigning through social networks and expanding our market.
Sales techniques: we will train our sellers, so that the attention to our clients is
excellent, we will make tasting days of our new products and star products, we will
make promotions for our wholesale clients.
Market study: we will carry out studies of the web and its market to get the most
out of this way of promoting our products, being in contact with our potential
customers through social networks and other web platforms.
Point of sale: our SWEET D&S stores are striking points that encourage our
visitors to be our loyal customers, through the flavors of our products and where
they feel comfortable in our physical store and in a pleasant environment with
attention first class.
The marketing mix is one of the classic elements of marketing, it is a term created
by McCarthy in 1960, which is used to encompass its four basic components:
product, price, distribution and communication. These four variables are also
known as the 4Ps due to their Anglo-Saxon meaning (Product, Price, place and
promotion). The 4Ps of marketing (the company's marketing mix) can be
considered as the traditional variables that an organization has to achieve its
business objectives. For this, it is absolutely necessary that the four variables of
the marketing mix are combined with total coherence and work together to
complement each other.
VARIABLES OR INDICATORS
Product:
In the SWEET D&S company there is the French Almond of colors or unicolor,
Balamaní of colors or unicolor, these products are the company's variable since
they include the goods obtained, through the services offered by the company. It is
the means by which the needs of consumers are met. Therefore, the product
should focus on solving those needs and not on its characteristics as it was done
long ago.
Within the product we find aspects as important to work as the image, the brand,
the packaging or the after-sales services. The CMO must also make decisions
about the product portfolio, its product differentiation strategy, the life cycle, or
even the launch of new products.
Price:
Price is the variable of the marketing mix through which the income of a company
enters. Before setting the prices of our products we must study certain aspects
such as the consumer, market, costs, competition, etc. Ultimately, it is the
consumer who will decide whether we have correctly set the price, since it will
compare the received value of the purchased product, against the price paid by
him.
Correctly establishing our pricing strategy is not an easy task and, as previously
mentioned, all variables, including price, must work together and in full coherence.
The price variable helps us to position our product, which is why if we market a
quality product, setting a slightly higher price will help us reinforce its image.
Distribution:
Advertising:
OF SALES.
Sales forecast:
A sales forecast is the estimate or forecast of sales of a product (good or service)
during a certain future period. Market demand for a product is the total volume that
can be purchased by a certain group of consumers, in a specific geographic area,
for a certain period, in a defined marketing environment and under a specific
marketing program.
In this way, the forecasting system is configured as a "learning system". The
intention is to determine the errors contained in forecasts based on the
environmental changes that generated them, in order to improve their accuracy in
the future.
SWEET D&S uses its distribution to wholesale clients since it becomes a direct
route to the retail client, they generate greater exposure to the market and a
greater market share, and they also sell to other small sellers.
QUANTITATIVE METHODS
n = 384
the type of sample is simple random, resulting in a sample size of 384 people, who
were surveyed based on the tastes and preferences for blueberry and chocolate in
the population of Soacha and Bogotá, which is where the product is marketed.
Qualitative methods
Forecasts generated from information that does not contain a well-defined
analytical structure. This type of forecast is quite useful when there is no historical
information (for example, a new product).
Risk analysis.
EXAMPLES
8. FINAL REPORT
After conducting an investigation with our clients in the town of Soacha
Cundinamarca and its surroundings, different variables were revealed that help to
build more precisely a proposal to improve the handling of categories, promotion,
packaging and merchandising in each one from the shops in these towns. For
neighborhood shopkeepers, understanding each of the concepts is not important, if
the consumer enters their store and buys.
Many of the neighborhood shopkeepers claim to have the adequate space for the
exhibition of their products, although the reality is different and the exhibition theme
to make an issue of overcategorizing their exhibitors, where the quantity and types
of products exceed the required and this for the little space that these stores have.
The aim was to carry out an organization of categories in an appropriate way that
guarantees a full distribution of the store according to the space it can count on.
By improving the order of our products, we can guarantee a better success in our
sales and we help our clients in improving the display of our products, even more
when they mention: “it is always necessary to display things that people need and
for want space could not be shown. "As in most businesses we all seek to increase
the number of customers and more when it comes to a local business, where we
depend on the frequency and number of customers who make a purchase on their
income.
The neighborhood shopkeepers and not only they, also all our potential customers,
are aware that by improving the display and image of the store and our products,
they will be able to get many more customers, not just having prices and a sales
system Flexible is enough to get more clients, a good image and a good exhibition
attracts and can be something additional to generate a greater clientele.
With this purpose, the marketing management in the SWEET D&S SAS company
has been developed through prior planning and market research, selecting the
strategy to obtain a new product, conceive the presentation of the product,
determine the price policy, evaluate, decide on distribution channels and design
the promotional plan in order to be viable and beneficial for the company.
CONCLUSIONS
SWEET D&S has elements such as location, space and distribution that are
of vital importance with the ideal direction towards the segment to which
SWEET D&S is directed, since if there is a wrong address, the products
displayed within the store cannot call the Customer interest, and these
elements leave out a constant change within the establishment, which
manages to establish a means of communication between the point of sale
and its customers.
The sales budget constitutes a fundamental part of the company, because
on this basis the processes are elaborated and the financial decisions
essential for the good management of the company are determined. In this
report, important aspects of the planning of the price strategy for SWEET
D&S products were learned, we also found external factors that influence
confectionery companies when setting their prices and affect their sales,
such as imports and smuggling.
We found that within the marketing processes in a company, each of the
areas that comprise it must be taken into account, since the information and
contribution of each one in the strategic marketing plan is indispensable, in
this plan, Aspects such as the analysis of the internal and external situation
of the company determine and allow to identify opportunities, strengths,
weaknesses and threats that, when they are clear, define what the
objectives, scope, purpose and role that each area will play in the execution
of the strategic marketing plan.
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