Ethical Trading Group Marketing Plan

Case Study Marketing Plan

Introduction

This Marketing Plan has been prepared to ensure marketing activities are coordinated with company strategic directions to achieve company mission, vision and values.
The Marketing Plan comprises:

• A Situation Analysis to identify market characteristics and key strengths and weaknesses of the business relating to meeting consumer demand.
• A Marketing Strategy to identify marketing objectives, leverage strengths, target key segments effectively and position Ethical Trading Group to achieve the company mission and vision.
• A detailed Budget of marketing expenditure for the year (totalling $388,000 for FY2014/15, representing a 17% increase on the previous year).
• A section on control of marketing activity, which includes milestones for achievement of marketing objectives and contingency planning.

This third year of operations will be crucial to the achievement of the company’s vision. Ethical Trading Group will build on the success of the previous two years, continue to
establish its brand and set the foundation for future expansion.

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2.0 Situational Analysis

To achieve success, Ethical Trading Group will need to identify key market characteristics, trends and the situation of the business in order to satisfy market needs, leverage strengths
and minimise risk.
2.1 Market Summary
Ethical Trading Group possesses reliable information about the market and through five full years of operations, has extensive knowledge of the common attributes of our customers.
Information has been sourced through:

• Australian Chamber of Commerce Reports
• market research purchased from creative agency (Action Marketing)
• market research undertaken by Ethical Trading Group and Action Marketing on targeted consumer groups such as:
  o information collected at point of sale
  o interviews
  o surveys.

Ethical Trading Group will use this information to better understand the market, its specific and evolving needs and how market needs can be met.

2.1.1 Market Analysis
The profile for an Ethical Trading Group customer consists of the following geographic, demographic and behavior factors:
Overview Metropolitan:

• Large percentage of individual store owners and franchisees (80% of daytime trade).
• Area population growing at 8% per year.

Geographic:

• Our immediate geographic target is the area within 500 metres of the metropolitan centres.
• The total area population is estimated at 2,388,000.

Demographics:

• Male and female
• Ages 34 – 58 which makes up 83% of the daytime market.
• Full-time employment
• Income over $50,000

Behaviour factors:

• Retail traders who purchase on trend
• Tend to source boutique and one of a kind items
• Highly socially and environmentally aware
• Value fair trade principles
• Value ethical and sustainable practices

2.1.2 Market Needs
We offer a range of products that are characterised by customisable and quality unsurpassed by any competitors. The basic market need (of our socially aware and environmentally astute clientele) is for high quality niche products, including eatable and non-eatable produce, with creative and socially responsible fair trade principles. Ethical Trading Group uses local, home-made Prickly Pear Seed Oil, organic produce and diary for consumables. We source one of a kind unique goods for trade such as recycled homewares, lavender bags, and handmade toys. Consumers also demand expert and efficient service and socially and environmentally sound business practices. According to market research, Ethical Trading Group seeks to provide the following benefits to represent value to their customers:
Selection: A choice of popular produce, dairy and non-consumable options.
Accessibility: Targeted street level premises, wheelchair accessible. The patron can gain easy access to the retail outlet with minimal wait.
Customer service: Our customers will be impressed with the speed of product and service delivery.
Competitive and appropriate pricing: All products/services will be competitively priced relative to comparable high quality organic and niche product lines. Ethical and environmentally responsible business practices: All Ethical Trading Group’s products are sourced through fair trade certified suppliers where possible. Fair trade logo used extensively to create awareness of Ethical Trading Group practices. Food products and ingredients are organic and locally sourced as far as possible and labelled to create awareness among customers. Packaging is kept to a  minimum. Advertising is done using recyclable material. Triple bottom line reporting is publicised and available to customers.

2.1.3 Market Trends
The market trends for wholesale and retail traders is headed toward the need to cater for a more sophisticated and environmentally and socially-aware customer. Customers are becoming increasingly sophisticated in a number of different ways:

Niche Needs: The preference for high quality niche and one of a kind items is increasing as customers have a wide variety of choice with regard to fair trade products. Urban consumers are more aware of personal likes and dislikes and are increasingly developing a refined taste for quality ingredients. Moreover, consumers are more likely to voice opinions on handmade crafts and food quality and influence behaviour of peers.
Health awareness: Consumers actively seek healthy alternatives to enhance health and appearance and to complement active lifestyles. In addition, consumers are more aware of food intolerances. The consumer is increasingly presented with choice with regard to ingredients:

• Lactose-free
• Gluten-free
• Vegetarian.

Speed: As break times for leisure browsing or shopping is reducing customers are becoming more time-pressured, they are learning to appreciate speed of service.
Ethical practices: Customers will actively seek out and patronise companies with credible ethical business practices. Access to information on products, services, practices and policies: Information is readily available to potential customers through internet sources such as websites.

2.1.4 Market Growth
Consumer research indicates a trend towards a more sophisticated niche product patrons. In fact, over recent years, Australia has developed a reputation for fair trade fanaticism and ‘organic snobbery’. This trend, together with the raw growth of population within the geographic area of the Ethical Trading Group retail outlets toward both a growing market for Ethical Trading Group and increasing potential for the company to attract this market with its unique and compelling value proposition. Sales figures indicate considered purchaser traffic is trending upwards as time poor consumers make decisions prior to sourcing suppliers.

2.1.5 PEST Analysis

Political environment
Relevant legislation may include:

• health and safety
• food safety
• banking implications following GFC
• industrial relation (IR) laws
• possible packaging and labelling laws
• increasingly stringent environmental laws
• Traineeships and funding.

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The last three types of legislation may be particularly important for Ethical Trading Group’s business and marketing activities. As noted, ethical business practices such as fair trade and rainforest alliance are beginning to be increasingly on people’s political radar. More stringent packaging laws may allow Ethical Trading Group to highlight its ethical and responsible approach to business. In a similar way, environmental legislation may allow Ethical Trading Group to promote its low-impact approach to advertising while also disadvantaging the competition, which may need to alter their practices to comply. Finally, Ethical Trading Group anticipates that the Australian Government’s focus in future legislative direction will be about growing the economy and skills growth, meaning Ethical Trading Group will be able to promote its approach to training and providing customers with expert service.