Marketing Plan For Sweet Tree Bee Pollen Extracts In USA

Company Overview

The report is intended towards formulating a marketing plan for a company dealing in bee pollen extracts and planning to globalize their business in the international markets. With this purpose, I as an international marketing consultant was asked to prepare the marketing plan for the company to effectively introduce their bee pollen products in the international markets. The company we have chosen is a Sweet tree which is the most trustworthy company when it comes to bee pollen products. The company leads in New Zealand and now planning to expand its business in the markets of USA. Sweet tree’s owners and operators are Martin and Stephanie Lynch. Sweet tree is the producers of bee products right from husbandry to harvesting, process, pack, and point of sale. Their objective is to maintain the originality and natural properties of the product. The company wants its customer to have a great experience and they care about the quality of product and therefore are dedicated towards delivering the best quality products. (Sweetree Honey, n.d.) The company has planned to expand its business in the markets of USA with the launch of bee pollen products in the initial times as it is their best output and praised by everyone. Honey bees collect bee pollen and when they move from one flower to another, flakes of pollen are placed into pollen baskets on its back legs. These flakes are combined with the help of nectar and turn into a granule of bee pollen. So the report consists of a marketing plan for the company to effectively introduce its product in the USA.

Once the situation analysis is being done successfully followed by the determination of marketing objectives, all the attention has been turned towards targeting the market. The Sweet tree bee pollen is of great use and proves to be beneficial for people, who are athletes in order to increase their stamina, people who are ill and experience weakness and daily health problems. Sweet tree bee pollen has greatest potential and can reach a number of market but all things cannot be made available to everyone. In line with this, there is a need to target the market which can turn out to be the most beneficial, sustainable, profitable market segment having higher possibilities of growth and market expansion. Target markets includes group of customers on whom the company mainly focuses on. Sweet tree focuses on that market which is productive and successful. The target market for Sweet tree in USA will be neither too wide nor too narrow but a medium one covering the most important segments of the market which will be the most profitable for the company as well as the product. Sweet tree bee pollen will be focusing on the athletes, teenagers, health conscious people and aged customers. The bee pollen product range of Sweet tree will be focusing on the athletes which will help them in improving their strength, endurance, speed, energy and recovery period. It will put main focus on the teenagers of the age from 10-18 years old as this is the time where they can best increase their stamina, energy, immunity and skin (Pearsoncanada, 2017). In addition to this, Sweet tree will also focus on the health conscious segment of people who are concerned for their health and can best use bee pollen seeds in increasing their immunity. Moreover, the company will focus on the group of old age people from 70-80 years of age, as at this stage of life they can use bee pollen seeds for better metabolism, keeping their body fit, help them in sound sleep and reduced stress. The market will be open for both male and females regardless of any gender and caste inequalities (Saimon, 2017; Pathak, 2017; Bobeic, 2011).

Target Market

Bee pollen is a very nutritious food product having a balance of proteins, vitamins, carbohydrates, minerals, fats, amino acids, and useful enzymes. Sweet tree will be launching its bee pollen product line in USA as it is the most successful product of the company providing various health benefits and is ruling in New Zealand for delivering the best quality and authentic bee pollen in the market and to the consumers. It is much used as an antidote or a rejuvenating tonic. Sweet tree bee pollen possesses high quality with high nutritional value. The product is a must have for any house having adults and children. The product is unique as it is a combination of all the natural ingredients providing complementary effects. Bee pollen helps to reenergize the body, helps in increasing the energy level in body, stimulates organs and glands, helps in strengthening immune system, enhance vitality, and stimulate longevity. (Sweetree Honey, 2017) (Sweetree Honey, 2017) (Sweetree Honey, 2017) (Products from New Zealand, 2017) (Nature’s Market, 2017). Sweet tree has not provided any variety in its bee pollen product as it is a natural product which is being naturally produced and alterations with its taste will result in losing the originality of the product. In the new markets of USA, the company will be dealing in its bee pollen product line and changes its decisions of delivering in glass bottles to plastic bottles. This is because it is easy to use as compared to glass bottles and will be convenient for the customers in long run. It is a type of sweet honey product and will be available in different sizes such as 50gm, 100gm, and 250gm in order to meet the fluctuating needs of the customers. Its core benefit is that it is healthy and completely natural reflecting the originality of the nature as it is intended to be. The company thought about the product at three different levels viz. core, actual and augmented product. Core product is what actually the consumer is buying and getting benefitted from, Sweet tree customers will be buying natural and top quality bee pollen extracts. Actual product is the part and feature of the product which delivers the product and the consumer will buy the bee pollen extracts of Sweet tree as they are high in quality, completely natural and deliver the best results. Augmented products are the extra benefits given to the consumer with product but the augmented level of sweet tree is limited as bee pollen is a type of a consumable good but replacements are done and the company will provide helpline services and toll free numbers to register any complaints, queries and support. The brand name for the product will be such that it will be best fit for the USA’s local culture and beliefs. The packaging will be done by keeping in mind the perish ability factor of the product and will meet the sensitiveness of geographical diversity. The package will include every detail regarding the price, date of manufacture, expiry, quantity, helpline numbers and many more in the languages best known and understood in the country or in the local languages to provide customer ease  (Cant, Wiid, & Kallier, 2015).

Product Features

It is the most important stage in the marketing plan when it is time to select the value of the product. The price that will be selected at this stage will be long lasting throughout the product lifecycle and also it will judge the quality of the product. Prices and quality of the product are closely related to each other as price defines the quality of the product according to the customer perspective. The prices selected have an influential effect on the quantity of the product sold, its strategic position, and profits earned. The cost is incurred and finalized on the basis of the cost of manufacturing, raw materials cost, operating costs, labor costs, marketing and distribution costs and the final cost is the amalgamation of these different cost incurred by the company. Price is the most influential factor in the supply and demand figures of the company and hence decision has to be taken by keeping in mind all the visible factors. There are a number of factors which influence pricing decisions such as economic condition of the country, demand, taste, and preferences of the customer, competitors, government regulations, and manufacturing costs. (University of Minnesota, 2017). After analyzing these factors from the point of view of the USA, the company has determined their pricing strategy to be followed while launching the brand and product in the new country. As the company is dealing in bee pollen extracts which is a natural product and satisfying the needs of originality at its best, compromises can’t be done with the price of the product as it should justify its quality and usefulness. After analyzing all the key points, a collective decision of adopting the premium pricing strategy has been taken. This type of pricing strategy allows the company to set the costs higher than its competitors and is the most effective in the initial stages of the product life cycle. It is ideal for the business dealing at smaller scale with unique products. Sweet tree is one of those who deal in unique bee pollen extracts and planning to launch the product in the markets of USA. According to customer, higher price is equals to higher quality and this will help the company to position the product in the new market. The marketing efforts, quality of the products, their packaging and stores, all should justify the premium price of the product and support it (Maguire, 2017).

Pricing Strategy

In order to address the brand switching habit of the customer, it is necessary as well as important to carry out promotional activities which are innovative and are capable enough to involve the end user and grab the attention of the customer towards the brand existence and moreover induce them to buy the product. Promotional strategies are a mix of personal and non-personal promotional techniques. These strategies are committed towards achieving the marketing objectives of the company. The main objective of the company behind devising a variety of promotional activities is to enforce the brand existence in the new market and accept the newly introduced product. In the modern competitive environment, it is highly preferable that right products should be at right place and in right time. The key factor in accelerating sales of the company is effective communication and it is important to communicate with the target customer for growing sales and for the success of product as well as the business. Promotions help in persuading the customer in trying a new product or make repeat purchases for the old one. There are a number of promotional activities available for the business and out of which the company should choose one or a combination of many to effectively promote the product in the market. Advertising, sales promotion, personal selling, and publicity are some of the promotional activities suitable for the consumable items. The company should choose one of the most convenient, effective and profitable activity for the business. The decisions regarding promotions are taken on the basis of nature of product and market, financial position of the company, customer reach, product life cycle stage, and promotional message.  After scrutinizing these factors, it is decided to opt for advertising and sales promotion (Business Jargons, 2017).

Companies dealing in consumable items depend heavily on advertising. The company will rely heavily on advertising the product in the different regions of the country for wider reach and to establish the promotional message for the company. Company’s most of the investments will be done in the advertising strategy with the help of which Sweet tree will be promoting its product all over the country. In order to effectively communicate the promotional message, the company will go for celebrity endorsements, hiring celebrities to effectively communicate the message in a way it is intended to. Celebrity endorsement will lead to perfect communication of message as well as the celebrity followers can turn out to be the additions in the number of customers. On the other hand, the company will opt for sales promotion in its early stages such as providing various offers, coupons, cash backs, and special prices for twos. This will help in attracting the customer’s attention towards the product and induce them to buy the product with the help of these attractive offers (Shimp, 2003; Kotler, 2017; Pondicherry University, 2017).

Promotional Activities

Products should be distributed orderly so that brand loyalty and repeat purchasing can be maintained. If the preferred product or brand of the customer is not available, they can easily get substituted by the customers. Therefore, effective distribution is necessary to place the products at right place and in right time within the reachable boundaries for the customers. This element of marketing mix refers to the distribution of products with the help of which the products are able to get to the market. Product distribution starts from producer and ends on customer. There are two types of distribution channel-direct and indirect channels of distribution. Direct channels of distribution are the ones where there is no middleman and the product is sold directly to the consumer. On the other hand, indirect channels of distribution are those which involve various intermediaries and the product has been delivered after following these channels. Similarly, there are four types of distribution strategy such as intensive, selective, direct and extensive distribution. As the objective of the company is to make the product available to everyone and at every place, the company will opt for intensive distribution strategy where distribution is done intensively and product has been delivered to every part of the market wherever the customer goes. Intensive distribution strategy will help the company in making the product available at every possible location. Moreover, the choice for distribution channel depends on certain factors such as the type of product, lead times, costs, financial position of the company, and how far the customer is (Samiksha, 2017). After analyzing these factors, the company came on to a decision of opting for indirect channel of distribution involving intermediaries for distributing the products at the intended places. The product will flow from the manufacturer to wholesaler to retailer and then to the ultimate consumer. The cost of distribution channel will be included in the price so that the price is justified and company will not incur any losses. Indirect channel is chosen as it is fast, cost effective, and efficient enough to deliver the products on time. This method is complying with the strategic objective of the company and fits perfectly with the intensive distribution strategy (Angele, Szczepanski, & Reissinger, 2017).

It is the stage at which plans are turned into actions and are implemented involving all the activities to let the marketing plan work. Successful implementation is ensured by business blending its people, company culture, organizational structure into a program supporting the marketing plan. The company needs to implement some changes in order to ensure effective implementation. The production should be on time, meeting the proportion as demanded by the wholesalers. Production should be efficient enough such as not to hold stocks and inventory prices. Pricing should be done so that it justifies the quality of the product and vice versa. Promotions should be impacting and have an everlasting effect on the minds of the customer. In order to get the greatest amount of exposure for the product, advertising and sales promotion should be enticing, attractive, and flexible so that it hits the customer’s mind according to their needs. Distribution should be efficient enough so that right product is available at the right place and at right time as in the situation of unavailability, products gets substituted easily.

Implemented plan needs to be controlled in order to check the variances between the planned and actual. It will help the company to meet the variances if any and take necessary steps for meeting the marketing objectives. In order to monitor the plan, there are two ways that the company should use-

• Sales analysis- In this tool, the total business sales of the company will be broken down on the basis of market segments so that the company can identify the strengths and weaknesses of different areas of sale. This will help the company in realizing on which market segment the grip is more efficient.
• Market profitability analysis- The analysis takes a look at the marketing cost side, sales territories, sales people, products profitability, and market segments. Marketing profitability can be monitored using three ratios such as market research to sales, sales representatives to sales and advertising to sales. The analysis results will help the company in determining the latest trends like emerging needs for new products. An idea of when the change is necessary which can be only possible after comparing the analysis result with the actual result (Schrage, 2017). 

The Sweet tree being a prominent producer of food products in New Zealand enjoys many benefits over its competitors in the market. Below we will discuss its strengths, weaknesses, opportunities and threats (MindTools, 2017). Below is the detailed SWOT analysis of the company:

Major strengths of Sweet Tree are:

• Strong Brand Equity- Sweet trees has strong brand equity in the home market which will help it to establish itself in the international market as well. The company follows an umbrella branding strategy. The logo of the sweet tree is in a shape of an old tree which conveys that the brand reflects wellness across different age and age groups. The company is the umbrella brand for various kinds of health care products and herbal beauty products. The company is new and has a potential of creating a strong image in the market because the company follows new and innovative strategies of market penetration (Investopedia, 2017).
• Strong Media and Advertisement Management – The Company uses prominent and established celebrities for its advertisement purposes in order to increase the popularity of the brand. Promotion of the company is done on television and is done centrally.
• Research and Development Strength- The Company has its own far and supplies for the manufacturing of herbal products. Sweet Tree has a successful and innovative team of chemists which through research and technical skills regularly work on the development and betterment of product. Apart from this, the company has its own supply of medicinal herbs and honey. This natural reserve is not only confined to New Zealand only but the company is also trying to open these reserves in the US which will improve its production process in the new market(Chron, 2017).
• Manufacturing Facilities- The Company has a well-developed base of engineering which helps the company to produce a vast range of pharmaceutical machinery and equipment. The company has its roots in New Zealand and has a strong and technologically advanced engineering base which the company is thinking to open in a big market like the US. The Sweet Tree being a new company is on the development spree and is trying to acquire many small manufacturers in order to expand its market.
• Strong Financial Position- The Company has though not been incorporated yet but has a strong financial position. The company has 100 listed shares most of which are held by the company itself. This thus ensures strong EBITA (Earnings before interest and taxes and amortization) margin. The company is low on expenses and high on profits.(Marketing91, 2016)

Weaknesses

• Sub critical R&D investments in the home country which limits the innovation within product
• Lack of innovation of the R&D culture in the honey producing industry can be problematic for the company as the company is new; the product line of the company is small.
• Inadequacy of training and skills among the workers in the emerging markets.
• Poor networking constraints in the chain of innovation can threaten the survival of the country in the international markets.
• Another weakness of the company is that the company is unable to compete with strong brands such as P&G, Hindustan Unilever etc. The company has no business bonds with big manufacturers which may be a problem for the company while expanding the market.(MBAskool, 2017)

Threats

• Inflation- Rising cost of raw materials tends to add the prices for the customer. This is a cause of concern because the company can’t always sell the product with added costs to the customer. Being a new company this phenomenon may have adverse effects on its financial status. (Investopedia, 2017)
• Operating market of the US is highly competitive which gives the company a thin margin on the profits. This is also because of the presence of big market players which enjoy the economies of scale. It is also seen that many globally sound players have been aggressively exploring new markets especially the US. In the past three years, more than 20 companies which deal in the same industry have entered the market.
• Inability to cope up with the rapid development of the technology and processes at the global level.
• Also, the company has to cope with the rapid changes in the standards of quality and manufacturing.
• The company also lacks facilitative IPR policies.
• Reduction done by the company in tariff levels can prove to be a threat for the company and it may also threat its survival in the new market.
• Rise in demands of ayurvedic products by the competitors i.e. Himalaya, P&G, Hindustan Unilever, etc. (WikiWealth, 2017)

Opportunities

• The market of the US is likely to set new heights in the coming years. According to the stats, the rise in the population and the rise in household income the aggregate expending limit of household is likely to increase by almost four times. Moving up of the consumers in the value-chain is a new and visible trend in recent years and the US being the largest consumer of the world just adds to the opportunities for Sweet Tree limited.
• The rise in the disposable income of the country is another good opportunity for the company. The per-capita of the country has nearly doubled in the span of five years which has boosted the growth of FMCG companies in the market. The market saw a growth of around 16% of 11 FMCG companies. The surge in the expending of consumers along with low penetration levels and the change in tastes and preferences of the customers is likely to ensure the high rate of success of Sweet Tree.
• The shift of the consumers towards leading a healthy lifestyle has increased the demand for healthy products. The company’s product Bee Pollen is a natural product which is likely to attract consumers. This is a tremendous opportunity for the company to amalgamate its knowledge of herbal and technical sciences for the purpose of product development and production.
• The rise in the costs of R&D has increased the tendency towards networking and outsourcing which offers the company to improve its quality standards.
• Liberal Government Policy is also an advantage for the company as the Government of the US allows Foreign Direct Investment in its economy. This liberalism has changed the industry of FMCG which the company can use to increase its momentum (Dhamija, 2017; Scribd, 2017). 

• The company is new in the market of opportunities so its management and strategies are flexible and can be molded according to the situation.
• The trends and the demographics of this industry are highly flexible and offer a good opportunity for the growth.
• The company enjoys the benefit of good R&D quality but lacks innovation which can be the primary cause for its inefficient use.
• Strong opportunities for the company exist in rural markets. (Dhamija, 2017) 

• Political Factors- The growth of the industry is triggered by many factors. A political scenario includes excise duties, licensing duties and reduced dominance of an unorganized sector. The government of the US also lays emphasis on the rural economies which facilitate the demand of products, also the interference of the government helps the company to grow and achieve success in the new market. The Sweet Tree is likely to get much support from the government owing to its high quality of products and its herbal nature. The exports on the other hand will also help the company to achieve its goals as the trading policy of this market is much simplified which can help the company to grow an extensive network on other economies.
• Social Factors- The social factors of an industry largely depend on the demographics educational levels, social behavior etc. of the consumer of the country. The company has the objective to target each and every demography by its product. Demographics is studying the population and then dividing it into different segments which help to attract a large group of customers. The company aims to attract each and every type of families, religion, race or sex. The company’s marketing strategy is not limited to any one group of people. It is also true that the customers consider a large number of factors while purchasing any kind of good, the Sweet Tree by studying this factor has developed all high quality products to help customers to select and choose goods easily. This helps the customer to make a quick decision. Another factor which interferes with the buying process is the education level of the consumer. The Sweet Tree uses all the good quality material in producing its product so that the consumer may get satisfaction while deciding upon a product. The US has established many laws in order to safeguard the rights of the consumers. The consumer has the power to file the case against the company if heshe feels cheated.
• Environmental Factors – needs of the consumers. The company targets every type of customer and tries to provide a natural and herbal solution to their needs. The main objective of the company is to provide eco-friendly products. The environmental factors largely depend on the weather and climate conditions of the region. The company aims to release its product Bee Pollen which is natural honey. Honey being warm in nature and because of the cold climate of the US, the product is likely to be successful. However, natural disasters have an adverse impact on the sales of the products. So it can be concluded that the environmental factors have a large and direct impact on the growth of the company.
• Legal Factors- The decision related to the marketing largely depends on the development of environmental and legal factors. These elements directly affect the development of the company. The legal environment of the company comprises of pressure groups, legislation, and government agencies. These constraints influence the behavior of an individual and they may limit the organizational progress. It is essential for these factors to be wide and to be applied appropriately so that new business opportunities are created. The company is also required to be legal and fulfill all the legislations. A legitimate business has a potential to grow more rapidly. Sweet Tree as a company has the potential to provide exceptional opportunities to all the citizens to earn. All rights in the industry are equal for all the employees.
• Economic Factors- Investors of the industry are attracted by better investment reforms which as a result improve the standard of living of various groups of people. Large investments help the company to develop its products which increase the brand value. By using branded products, the customer improves his standard of living and acts as an inspiration. Betterment of reforms and other economic factors which work in favor of the company also increases the demand for products under 30 demographics. Using the internet for the purpose of marketing will help change the business dynamics which will help to improve selling efficiency of the business. Sweet Tree an establishing company focuses on the needs of the customer and develops the products accordingly which in turn will fulfill the needs of the people. The important factor which helps the company to grow is the loyalty of customers. There are many people in the home country of the company who uses its product on a daily basis. (PESTLE Analysis , 2016)

The company has helped thousands of families to work and earn and also by selling their products which in turn has helped them to increase their standard of living. The product offers by the company i.e. Ben Pollen is nutritional and is perfect for the purpose of self-grooming. With the organizational growth, the national income of the country also increases. Though the cost of the product is expected to rise if there is an inflationary trend in the economy; if the economy is on a downward inflation slope, the price of the product will be low which will then increase the productivity of the business and will work in the favor of growth of the organization. 

• Technological Factors- The advancement and innovation in the technology tend to improve the processes and the production of the company. By the means of technology, the company can easily reach the product line by using e-commerce for the purpose of online shopping. Sweet Tree is aiming to develop its operations on a global level because this may help the company to explore new markets by reaching various geographical areas. Another thing that will be changed by the change in technology is the advancement of labor. With technological advancements, the new and skilled labor will be hired for the business. The computer department of the company will also be able to conduct more advanced research which will help the company to compete in the international market. (Professional Aademy, 2017)

So if you’re a regular user of the products of Sweet Tree, you can reach for the best quality of products. This PESTEL analysis of the company and this industry concludes that the company will establish itself in the international market and is expected to grow in the coming years. (PESTEL, 2017) (Prezi, 2017) (StudyModeResearch, 2017) (S&P, 2017) 

The market in  which the products of the company will be sold is highly competitive in nature. The product when launched will compete with many large and small companies which include some big players and prominent names. In many of the markets in which the product will be sold, the company is expected to face competition from  other branded products as well as retailers private-label brands. The company is hoping to shape itself well in this segment of the industry in  the market which the company will be operating. The company is looking forward to hold the leadership in the market and hold a significant marketing position. The Company is expected to use various marketing techniques to survive in the market which includes advertising and promotion which will help to build awareness of the brand in the market along with an extensive network of the sales force. This method is expected to be the most efficient method of marketing for this type of product. Another  important factor  on which the performance of the product and the competition  of the market will depend is the product quality, performance and value and packaging. (CSIMarket, 2017) (Managementparadise.com, 2013) In order to step into the competition and ensure the long survival of the company in the US market, it will have to consider following factors before making a internationalization decision: (strategyand.pwc.com, 2017) (OECD, 2013)

• Deep shopper understanding
• Digital and mobile marketing
• Multichannel retailing
• Innovation

These are the factors of the food industry in the US that the company will have to consider before entering into this market.

In the table described below, it is clear that a small company like Sweet Tree will compete with some big players in  the market which have already established its roots years ago. (Moneycontrol, 2017) (Morningstar, 2017) 

Provided below is the competitor matrix through which the reader will develop an understanding about the pricing strategy of the firm and how the company can develop in the market. The table will also tell us about the position of the company in the market in comparison to strong and big players.

Factors	Sweet Tree	Dabur	P&G	Himalaya
Quality Superiority	5	5	4	3
Onboard Control	4	4	5	4
Installation	2	4	5	3
Training of Operators	4	4	3	5
Customizable Products	5	4	3	3
Unique Features	3	5	5	5
Rapid Delivery	5	3	3	4

• In this table, it is clearly visible that the company is new and has all the control over the superiority of its products. The product line of the company is new thus it is technologically and qualitatively advanced.
• As the management of the company is new, so the employees are well equipped with the control techniques and standards which give the company greater onboard control than its competitors.
• The company is expected to face barriers in installation because of low net worth. This is the problem generally faced by new entrants of the market.
• Company spends regularly on the training of operators so as to improve the business and its product line. The company has an opportunity to capture the market by working flexibly.
• As the product line is new, the products are customizable. The competitors have old and rigid structures ad standards, so they lack the flexibility and customization in products.
• Unique features of the company are relatively low because the company is still in developing mode.
• The company lays emphasis on customer satisfaction to earn profits. Rapid delivery is one of the constraints of customer satisfaction on which the company has prime focus. 

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