Preliminary Marketing Plan
Essay by Lakiesha • April 5, 2015 • Case Study • 3,704 Words (15 Pages) • 1,215 Views
J&J Snack Foods in Brazil
Preliminary Marketing Plan
By: LaKiesha Brown
Preliminary Marketing Plan
Table of Contents:
Executive Summary------------------------------------------------- 1
Marketing Plan-------------------------------------------------------2
Financial Statement--------------------------------------------------10
Resources---------------------------------------------------------------11
Appendix----------------------------------------------------------------13
Page 1
Executive summary
After all the reviewing and planning and decision-making, J&J Snack Foods in Brazil is really starting to come together as a successful business venture. It will take a lot of money to build the 2 retail stores and kiosk/stands in Brazil's largest city Sao Paulo, but J&J Snacks will be very successful because they are placed in a common area where there is not only Brazilians but so many tourist and all classes of wealth from the low class to the upper class.
We plan to sell thousands of snacks in our first year, resulting in at least $75,000 in sales revenues. By year 5, we expect to take revenues up to $335,000. Yes our plan is very aggressive and we have very high hopes for success, but our ambition is rationalized by the fact that Brazil gets to host two of the world's premier events, the World Cup and the Olympics and the annual Carnival event. Also the fact that our snacks are so good and convenient sales during the regular year gives us so much confidence.
Our biggest dilemma was determining a reliable and efficient way to ship our product from United States to Brazil for as little cost as possible. We didn't want to pay a lot for shipping because we would have been required to reflect that in the retail prices of our product. We decided that shipping by air is best the way because its quicker however we will continue to look into other ways we can save such as shipping by Ocean in the near future. Our product will go straight from the dock at the Port of Santos to our stores stands in the mall of JK Iguatemi and vendors Walmart and Sams Club in Brazil where it will be available for purchase. Customers can pay by cash or credit, but we will not offer payment plans.
Our expenses may be high initially, but when Carnival, World Cup and the Olympics come around we will see very large profit margins off of our special edition "national team" items, which have a very high markup because they will become a collector's item. We are confident that our products will sell out on the shelves, at the stands and at all events. Everyone will know and love the J&J Snack Foods that is already successful in the United States in Brazil as well. The taste, the convenience, the fun and so much more will have our Snacks on top in Brazil. Let's go abroad on our new Journey!!!!!!
Page 2
Marketing Summary
I. The marketing plan
Our plan as J&J Snack Food is to continue to create delicious products however we want to expand in the Brazilian market. Our new direction for Brazilian Market is to take some of our similar products while mixing in a few different ones to open their eyes to all of our delicious products.
A. Marketing objectives
1. Target market( s) ( specific description of the market)
Our primary market will be all families within the low and middle income bracket since most of the population. Our secondary market will be of tourist and Brazilians who plan on attending special events such as Carnival, World Cup, or the Olympics.
1. Sales forecast years 1- 5
Year 2016 2017 2018 2019 2020
Sales 150,000 172,000 206,400 258,000 335,400
Expenses (Marketing, Shipping, Cost of goods) 75,000 86,250 103,500 129,375 168,187.50
2. Profit forecast years 1- 5
Page 3
Year 2016 2017 2018 2019 2020
Profit 75,000 85,750 102,900 128,625 167,212.50
3. Market penetration and coverage -We plan to increase our sales at least 5% annually (ex: year 1 15%, year 2 20%, year 3 25% and so on......). With that being said we think our expenses will typically stay the same year to year however around during events we do plan to pay a little extra for advertisement and packaging. The breakdown above is what we typically plan to see over the next five years. It's not a huge profit as our products are in the United States but we plan to start off small and build from there. We have to keep in mind that this is a totally new product in Brazil and I'm sure it will take some time to see the sales we want.
B. SWOT Analysis
1. Strengths
* Affordable delicious snacks
* Versatility in healthy and sweet
* Great for almost any age
* Convenient
2. Weaknesses
* The products are new to the market and Brazilians are used to name brands
* Brazilians love traditional foods
3. Opportunities
* Promotion at special events such as Carnival, Olympics and World Cup
* To build a stronger relationship between the U.S and Brazil by offering another product that they will absolutely enjoy
Page 4
* To offer a larger variety of snack/convenient foods and drinks since Brazilians typically make homemade foods
* Even
...
...