Rich’s Products is a family-owned organization which was established in the year 1935. The organization had started its operations in the dairy based industry and had shown substantial levels of growth after ten years. Robert E. Rich who is the CEO of Rich’s Products had invented the frozen and non-dairy whipped topping. The expansion based operations which have been conducted by the organization had been able to play a key role in the growth of revenues and profitability. The organization had been able to grow with the help of effective development of products and acquisitions. Rich’s Products had thereby started making an effective strategic realignment in the year 2011 (Belasco 2014).
The report will be based on the analysis of the ways by which Rich’s Products has been able to conduct its business related activities in the industry. The internal environment of the organization will be analysed in the report in detail. Another major part of the analysis is based on the segmentation, targeting and positioning which has been performed by Rich’s Products.
The marketing based activities which are performed by different organizations are analysed with the help of proper implementation of the 5 Cs framework. The 5 Cs framework is mainly based on five different parts of the operations of modern organizations which include, customers, company, collaborators, context and competitors. These five parts of the organization are able to provide a detailed picture of the ways by which an organization is able to operate in the industry. The customers are able to form the most important part of promotional and marketing related activities that are performed by organizations (Beske, Land and Seuring 2014).
The quantity of the purchases which are made, different retail based channels, frequency of the purchases and various market segments are the factors which are able to affect the customer base of organizations. The organization and its internal environment is considered to be a major factor which is able to affect the effective marketing based activities. Levels of competition which exist in the industry have a major impact on the ways by which organizations develop the promotional activities (Cruceru and Moise 2017). The revenues and profitability are influenced by the competition levels within the industry. The collaborators are considered to be important parts of the effective operations of modern organizations. The suppliers can be considered to be the most important collaborators of the organizations. The context based factor in this case is related to the environment in which the organizations operate (Dibb 2017).
The internal and external environment based factors are able to affect the ways by which an organization is able to manage the consumers in an effective manner. Rich’s Products is able to operate in a profitable manner within the industry with the help of proper promotional and marketing based activities.
Strengths – Rich’s Products has been able to understand the market in an effective manner which has proved to be a major strength in its successful operations. The management has taken steps in order to understand the direct as well as the indirect customers and fulfil their needs as well. The push and pull based strategic opportunities have been implemented by the organization in order to manage the operations and maintain the profitability levels as well. The market based trends are analysed and identified by Rich’s Products with the aim of developing the market base (Jolink and Niesten 2015).
Weaknesses – The major weakness based on operations of Rich’s Products is related to the lack of variety of food products which can be offered to the customers. The organization needs to provide a wide variety of healthy products in order to compete effectively with the competitors (Kuratko, Hornsby and Covin 2014).
Opportunities – The trends that exist in the industry are able to provide huge opportunities of growth to the organization. Rich’s Products can maintain the profitable operations by fulfilling the demands and needs of the customers who are a part of the healthy products preferring industry. The healthy products have started being in demand from the past few years and have been able to affect the market in a huge manner. The organization thereby needs to develop the operations in order to take advantage of the huge number of opportunities which are provided by the consumers and recent trends as well (Lee and Yun 2015).
Threats – The organizations in the industry which had also started offering similar health based products which are able to fulfil customer needs in an effective manner. The organic products based organizations have been started providing high levels of threats to Rich’s Products and the levels of revenues which are gained in the industry as well (Paillé et al. 2014).
The internal environment of the organization has thereby been able to play a key role in the ways by which Rich’s Products has been able to operate in the industry.
The sales of organic and natural food based products have started making records from the last few years. The growth of organic food based market is further expected to grow in the next few years. The major reason behind the growth is related to the increasing awareness of benefits which are offered by organic and healthy food based items. The organic foods have also become much more accessible than before due to the increasing number of organizations in the industry. The market of organic foods has grown by 11% in the United States from the year 2014 to 2015. The category of organic and natural food has been able to surpass the entire food based category in the United States (Sarooghi, Libaers and Burkemper 2015).
The demands of consumers have started rising faster as compared to any other food category. The organizations in organic industry are facing demand and supply based issues and the infrastructure has also not been built effectively in order to fulfil the needs of consumers who are a part of the industry. The requirement for suppliers in the organic food industry is also high which is mainly based on the ways by which consumers have started demanding high quality based products. The changes which have been made in the organic food industry with the help of its growth. The production of organic food is considered to be an important part of the operations of the industry (Schaltegger and Wagner 2017).
More than 10% of the total amount of vegetables and fruits which are sold in the United States are organic. The drinks and snacks based products have started gaining a huge amount of growth in the United States. The cultural shift which has been experienced in the United States has been a major reason behind the effective growth of organic food based products. The different organizations which are a part of the hospitality industry have also increased the usage of organic food products. This is mainly based on the growth of consumer based demands which exists in the industry (Teng and Wang 2015).
The two specific consumer segments which can be chosen by Rich’s Products in order to offer the different food based products include, the mid-level consumer segment and core consumer segment. The two segments will be able to form an important part of the customer base which can be developed by the organization in the United States.
Buyer Persona 1 –
Buyer Persona 2 –
The segmentation, targeting and positioning is considered to be an important process which is helpful for the proper analysis of different customer segments. This is considered to be a strategic approach which is used for the modern marketing based process. The STP based model is thereby used for the purpose of developing effective levels of marketing based communications within the industry. The relevant messages which are provided with the help of STP model are effective for the marketing related activities. The messages which are provided with the help of segmentation, targeting and positioning based process are mainly based on the promotional activities that are performed by the organizations (Schultz 2018).
Segmentation is based on the ways by which the market is divided in to different parts and different groups of consumers. The consumers are thereby divided into groups based on their likes and dislikes and the ways by which they are able to use the different products. The market segments are based on different factors which include, the age of consumers, the income based levels, the areas to which they belong and many more. The targeting process is related to the products which are developed by the organization in order to offer to the consumers. The products are based on different types of demands (Tanner and Raymond 2015). Positioning on the other hand is related to the position which is developed by the organization in the industry with the help of its products and services.
The two major consumer segments which have been identified for Rich’s Products are the mid-level organic consumers and the core consumers. The mid-level consumers can be targeted by the organization as they are able to form an important part of the organizational operations. These consumers have started changing their attitudes and their habits for the purpose of purchasing the organic products. The segmentation of consumers which will be done by Rich’s Products will be mainly based on the ways by which the organization is able to operate in the industry (Venter, Wright and Dibb 2015).
On the other hand, the core consumers are smaller in number. However, these consumers are also able to form a major part of the entire market which has been developed by the organization. Rich’s Product thereby needs to develop the strategy in such a manner which will be helpful for the organization to offer the products to consumers. The organization needs to analyse the demands and likes of different consumers who belong to these groups and further provide them with the effective products and services. The development of effective levels of revenues will thereby be easier for the organization if it aims at serving the effective group of consumers (Wheelen et al. 2017).
The major consumer group which targeted by Rich’s Product in order to increase the levels of revenues is the mid-level consumer group. The consumers who are a part of the mid-level group will be able to increase the levels of revenues of the organization in an effective manner. The market of the United States is based on the consumers who mainly belong to the mid-level group. The consumers will be able to increase the levels of profitability which is gained by the organization in the organic industry. The organization will also need to take into consideration the different ethical concerns which are faced in the industry (Wilden and Gudergan 2015).
The sourcing of raw materials which are used for the development of food based products is the most important part of the entire process of production. The organization will thereby need to implement high levels of sustainability within the operations. The dietary habits of consumers are based on different types of organic food based products that are offered to them. The healthy eating based habits of the consumers are related to the sourcing of raw materials on a local basis (Schlegelmilch 2016).
The consumers are quite clear about different activities related to healthy eating and organic food products which are offered to them in the industry. Rich’s Products can take advantage of the opportunities which are offered to them based on the ways by which they can offer different types of organic food products to the consumers. The positioning of Rich’s Products in the industry based on organic foods in the United States will be based on the ways by which it is able to operate and maintain its competitive advantage as well (Schaltegger and Wagner 2017).
Figure 1 – Positioning map
Source – Created by author
Recommendations-
For following up to the ethnography that is conducted to strengthen the understanding of the healthy eating lifestyle in the geographic market, the recommended marketing research methods would be of primary and quantitative research method that shall make use of survey questionnaires for seeking responses and view point of the participants. Primary research would give the control over the question types that the researcher would be asking as well as for the information that he would gather.
The results that are gathered primary research method are extremely valuable as they are done through direct observations, surveys and interviews. Moreover, the quantitative research would help in gathering the numerical data. It would include the figures of the customer preferences, the surveys on their return frequency, the sales figures of the products, the financial trends and the sales numbers of the industry. This approach could be used for identifying the market size as well as how much it is worthy of the business. It would also help in understanding the customer demographics for the Rich’s products.
Research Problem- Rich’s Products has long been focused on the needs of the retailers and suppliers for its business operations. In this case, it has neglected the needs and requirements of its customers towards leading a healthy eating lifestyle. Therefore, this research proposal would be focused on identifying the needs of the customers.
Research Objective- The main objective of the research proposal are to:
Research methodology
Expected outcome- The expected outcomes of the research is determining the actual needs of the customers instead of the retailers and the whole sellers.
Conclusion
The report can be concluded by stating that the organization is able to offer different types of products which are able to fulfil the needs of consumers who prefer organic food products. The buyer groups which are a part of the industry are able to affect the product base of different organizations.
References
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Dibb, S., 2017. Changing Times for Social Marketing Segmentation. In Segmentation in Social Marketing (pp. 41-59). Springer, Singapore.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
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