Discuss about the Sweet Offering for Our Private Label Customers.
This report is being presented to create a marketing plan for Capilano Honey in the market of Thailand. A marketing plan is a complete design that explains marketing advertising efforts of a company for the upcoming time period. It elaborates the business activities engaged in attaining a particular aim of marketing in a set time period (Luther, 2011). The marketing plan of Capilano honey will give a brief of numerous activities of the business in the Thailand market and will assist in attaining desired goals. Some of the important activities of business that will be explained are Value Analysis, Market segmentation, Positioning of Capilano in Thailand, Product, Price, Branding, and Communication.
The management of Capilano Honey are putting their efforts and hard work from last 60 years in order to reach from the lowest recognized brand to one of the top honey suppliers, they have enjoyed a product innovation position, best practices procedures, and offering honey with the best quality. The company is capable enough to manufacture honey products of approx. 45,000 tonnes each year, and offering honey to around 30 countries in the world. The company has achieved all this just due to the management and supplier’s team efforts and hard work which comprises around 500 families of Australia of Beekeeping (Capilano Honey, 2018). Besides having such amazing team, the company needs to deal with strong competitors in the Thailand market like KCG Corporation Co. Ltd, Big Bee, and Fora Bee.
In terms of Value Proposition Company ensures that it delivers honey of best quality to its customers while considering their fitness and health (Capilano, 2018). The company is concerned about attracting customers towards it.
The company has made efforts in order be unique as compared to other companies in the Australian market and will do the same in the Thailand market by offering products at low cost. In order to get a position in the Thailand market company will offer high quality of honey at less cost.
The prices of Capilano honey are low which will support it in getting the position in the market. The company might provide honey at ? 377.62 to 555.42 according to the type of honey as Capilano Honey offer a different range of honey such as Capilano Australian Forest Honey, Capilano Australian Mountain Honey, and Capilano Natural Australian Honey. Considering the competitor’s prices, they offer products at a high rate because they claim that their honey is of good quality.
In ancient period people use to consume honey just because of its delicious taste. In place of sugar, people use to consume honey as the sweeter ingredient because at that time people didn’t know about sugar. Today, honey is said to be the treasure of goodness, and fitness, it has various benefits so as Capilano Honey. It is a blend of concentrated carbohydrate encompassing a mix of simple and composite sugars. The Capilano involve three main sugars like Glucose, Fructose, and Sucrose. The honey is comprised of 28-36% of glucose, 36-50% of fructose, and 0.8-15% of sucrose depending on the floral source (Capilano Honey, 2018).
Glucose – It supplies most of the effective energy to the cells of human body, as well as brain
Fructose – It is the type of sugar which is commonly found in fruits.
Sucrose – It is a normal white sugar which is extracted from sugar cane (Ancira, 2018)
Market Segmentation is said to be a procedure of dividing a market of potential customers into various divisions or groups centered on different features. The segments are made of customers who respond to the marketing strategies and share similar traits such as needs, locations, and similar interests. It is divided into two parts that are a Macro segmentation and Micro-segmentation (Wedel & Kamakura, 2012).
Macro segmentation – In this, the market is divided on the basis of variables with wider range like organizational and industry variables. It can also comprise variables like location, which is considered as a most important variable to study the communication necessities and the culture (Havaldar, 2010).
Micro-Segmentation – It is a practice used to divide the customers of a company into small groups related to a specific business (Optimove, 2018). It is an advanced method of segmentation which makes groups of small numbers of clients into very detailed segments, depending on different factors, such as demographical, geographical, behavior, and lifestyle.
Demographic segmentation – In this type of segmentation market is divided depending on family size, ethnicity, race, gender, age, religion, and income (Bhasin, 2018). A tool is used which is helpful in dividing the market i.e. Segmentation Tree.
Segmentation tree is a tool in which marketer convert a scrape into the database. It can be called as a difference of a decision tree, which shows the market is segmented into small divisions. It looks like a family tree, which begins with the product name. This product is then segmented into various branches made of potential markets (My Bizz Marketer, 2017). Capilano Honey can make use of this tree to segment its market. The target market of honey will involve teens, adults, and old people in the Thailand market. Teens and adults will be the primary segment of Capilano.
Geographic Segmentation- Geographic segmentation is a common strategy which is used at the time when a business unit offers its products in a specific area. Geographic/ZIP Code Research is a tool which is used by various business organizations. In order to get the demographic information, this tool is used, especially by those who are in the search of normal household and business in some areas.
There are various companies in the market who provide these type of information for free. Information that is provided by these tools is income and median age information and people living in that ZIP code.
Behaviour Segmentation – This type of segmentation divide a population based on their behavior, reaction, and product use. Here, the company can make use of cluster analysis tool.
It is a tool utilized to divide substances into pre-definite groups, in which each group will be comparatively similar depending on selected attributes. Thus, it allows marketers to have a look at the information they have gathered and made use of it in identified sections.
Lifestyle Segmentation – This type of segmentation assist in understanding the needs of the customers effectively, on the basis of which marketers can take proper decisions of placing the product in right segment. Customer lifecycle segmentation tool can be selected to make small divisions from the data collected as per the customer’s dislikes, needs, and choices.
|
Market Segmentation |
Primary Segment |
Secondary Segment |
|
Demographic |
Teens – 13-19 Adults – 20-40 |
Old – 45-60 |
In the Australian market, the brand value of Capilano honey is very high because it is one of the top producers of honey. Around 96% of the population is familiar with this brand and it is the most trusted brand. Capilano Honey is well-known in the market due to its different flavors, advanced delivery mechanism, reliability, and quality.
Pricing Strategy – Pricing strategy can be used by Capilano Honey in the market of Thailand to get a stable position. The company can attract customers by comparing their prices with its competitors in the market (Bhasin, 2017).
Quality Strategy – Various companies make use of quality strategy in which they give more importance to the quality of their products in order to differentiate themselves from the rivalries (Smartling, 2018).
This positioning map is showing the Capilano Honey’s position which will be in the Thailand Market.
The strategies that are used for the positioning in the Thailand market are Price Strategy and Quality Strategy. These strategies are very effective and useful in achieving the organizational goals i.e. of providing a high quality of honey at a very low price. The Price strategy is effective in appealing customers because the existing companies in the Thailand market such as Big Bee and Fora bee are offering their honey at a high price because of which every consumer is not able to afford it. Along with this quality, the strategy has also been suggested because the company is majorly focused towards the quality of honey and making itself different from its competitors.
Teens, adults and old people who are concerned about their taste and health can buy Capilano Honey. This is because it is a treasure of health and made of nectar which is gathered from the flower and is collected by honey bees.
The Capilano Honey is very different from other companies in the Thailand market as it will be focused towards the quality of honey and offering it at low cost. Along with this company has planned to provide honey made up of organic ingredients.
The Fora Bee is very famous in Thailand and provides a variety of natural bee products such as royal jelly, bee pollen, cosmetic items, propolis, and honey vinegar (Fora Bee, 2015). Besides this, Big Bee is also very famous and offers a variety of products in the market. On the other hand, Capilano only focuses on the quality and price of the product with less product range i.se diversification.
Price is the amount of compensation offered by one business or person to another person in return for a service. The Strategy that Capilano honey will use in Thailand market is pricing for Market Penetration. This strategy is used for appealing the customers by providing service or products at a low rate. Many companies use this strategy to grab the customers of the competitor. This strategy may result in a loss in the initial stage but will provide profit in the future. The price at which Capilano Honey will be sold in Thailand is ? 377.62 to 555.42. On the other hand, the prices of Big Bee and Fora Bee are estimated to be ? 566.43. (Thai Honey, 2013)
|
Capilano Honey Prices |
Big Bee and Fora Bee |
|
? 377.62 to 555.42 |
? 566.43 |
Advertisement – A type of audio or visual marketing communication that use openly sponsored, and non-personal message in order to vend a service or product in the market is known as Advertisement (Einstein, 2017). This promotion technique can be used by Capilano Honey for promoting its healthy and high-quality honey.
In order to promote in Thailand Capilano Honey will make use of television, newspaper. The company can promote its honey with the help of famous athlete or film celebrity in the advertisement to attract the customers. Besides this company can advertise its product on national television channels that are mostly watched by teens, adults, and old people.
Risk of Overstatement and Caricature
Most of the influence of the Scarecrow advertisement comes from the productive way that it depicts the food industry. Whereas this policy can efficiently distinguish the brand, there’s also a key risk that it can backfire (Villing & Co, 2018).
“Capilano honey is a treasure as once you have it you need more”
In order to make a strong brand in the market company have to follow the four steps i.e. to conduct detail brand audit, preparing a value proposition statement, creating the appearance of the product, and advertisement or promotion (Louis, 2018).
Capilano honey will make use of its current brand portfolio as it will assist the company in attracting the consumers due to its famous and effective brand image in Australia. The company can use its current brand portfolio by advertising its previous performance.
Capilano Honey desires to have an effective brand personality in the mind of customers that can help in reflecting high quality of honey at a very less and affordable price.
The above-stated marketing plan will assist the company in gaining a desired position in the Thailand market and give strong competition to other existing players. It is expected that by 2020 company will be able to gain whole Thailand market with the 30% increase in the revenue.
Besides this, the company is covering whole Asian market in next five years with the help of its new and advanced innovations and management team. The company will do changes in its packaging and system of delivery.
Conclusion
In the conclusion, it can be said that the marketing plan is essential for every business in order to gain an effective position and desired goals. The above stated marketing plan will be very effective for the Capilano Honey in the Thailand market due to its strategy of low cost. Along with this, the segmentation, positioning, and pricing strategy will support it in attracting customers towards it and giving strong competition to the existing players in the market.
References
Ancira, K. (2018) What Is the Difference Between Sucrose, Glucose & Fructose?[online]. Available from https://healthyeating.sfgate.com/difference-between-sucrose-glucose-fructose-8704.html[Accessed 29 April 2018]
Barkman Honey (2018) A Sweet Offering For Our Private Label Customers [online]. Available from https://www.barkmanhoney.com/products/private-label/ [Accessed 29 April 2018]
Bhasin, H. (2017) Positioning Strategy [online]. Available from https://www.marketing91.com/positioning-strategies/ [Accessed 29 April 2018]
Bhasin, H. (2018) Demographic Segmentation – Segmenting by Demography [online]. Available from https://www.marketing91.com/demographic-segmentation/ [Accessed 29 April 2018]
Capilano Honey (2018) All about honey [online]. Available from https://www.capilanohoney.com/au-en/health-wellness/naturally-good [Accessed 29 April 2018]
Capilano Honey (2018) Our Heritage [online]. Available from https://www.capilanohoney.com/au-en/hive-to-home/our-heritage [Accessed 29 April 2018]
Capilano (2018) Capilano Story [online]. Available from https://www.capilanousa.com/capilano-story/ [Accessed 29 April 2018]
Capilano (2018) Quality Assurance [online]. Available from https://www.capilanousa.com/capilano-story/quality-assurance/ [Accessed 29 April 2018]
Einstein, M. (2017) Advertising: What Everyone Needs to Know. 3rd edn. U.K: Oxford University Press.
Fora Bee (2015) Our Story [online]. Available from https://www.forabee.com/en/aboust-us.php [Accessed 29 April 2018]
Havaldar (2010) Business Marketing: Text & Cases. 3rd edn. U.S: Tata McGraw-Hill Education.
Kangaroo Court of Australia (2016) Australia’s Capilano Honey Admit Selling Toxic And Poisonous Honey To Consumers [online]. Available from https://kangaroocourtofaustralia.com/2016/09/17/australias-capilano-honey-admit-selling-toxic-and-poisonous-honey-to-consumers/ [Accessed 29 April 2018]
Louis, M.S. (2018) 5 Steps to Building a Strong Brand Identity When the Game Is Constantly Changing [online]. Available from https://www.inc.com/molly-reynolds/5-steps-to-building-a-strong-brand-identity-when-the-game-is-constantly-changing.html [Accessed 29 April 2018]
Luther, W. (2011) The Marketing Plan: How to Prepare and Implement It. 5th edn. U.S: AMACOM.
My Bizz Marketer (2017) Market Segmentation – Tool and Techniques [online]. Available from https://www.mybizmarketer.co.ke/market-segmentation-tool-and-techniques/ [Accessed 29 April 2018]
Optimove (2018) Customer Micro-Segmentation [online]. Available from https://www.optimove.com/learning-center/customer-micro-segmentation [Accessed 29 April 2018]
Smartling (2018) Market Positioning Strategy Guide [online]. Available from https://www.smartling.com/market-positioning-strategy/ [Accessed 29 April 2018]
Thai Honey (2013) Big Bee products [online]. Available from https://www.thaihoney.web.id/ [Accessed 29 April 2018]
Villing & Co (2018) Risk In Advertising: When Does It Pay To Take Creative Risks? [online]. Available from https://villing.com/articles/risk-in-advertising/ [Accessed 29 April 2018]
Wedel, M., & Kamakura, W.A. (2012) Market Segmentation: Conceptual and Methodological Foundations. 2nd edn. Germany: Springer Science & Business Media.
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