Food Production company wishes to introduce a cereal product known as Flax cereal in June 2011. The cereal is beneficial for health; and customers have been looking for such a product that meets their needs. It is a whole grain cereal, warm breakfast, and it is anytime snack fit for children age 3 to 12. Most mothers have been looking for a cereal that will help their children grow health. The new Flax cereal will help lower cholesterol level in children who use it. This is because it has two (2) grams of soluble fibers from firs and oaths (Monroe, 2003, 45). It makes the heart health because it makes the blood flow in the required pace. It supports the arteries because it contains 3% vitamin B.
Being committed and dedicated to health eating should be a responsibility of every mother. This was the reason as to why the company decided to come up with a new product. This was arrived at after a market analysis to find out what customers lacked. This new product is delicious, and it is blended with flax seeds, sliced almonds, crunchy multigrain clusters, and fir seeds. The product is rich in proteins (9 grams) and fiber (8 grams). The flax cereal has thrice the proteins, carbohydrates, and fiber than other cereals. This will help the children feel fuller and energetic for long. It is designed to meet the customer needs. The product’s target market is the children of age between three (3) and twelve (12). This is because the children at these ages have lacked cereals for a long time; and cereals are appropriate for their health (Monroe, 2003, 46).
The cereals available in the market for children is of poor quality, lack the essential nutrients, and it has high levels of cholesterol. Flax cereal provides 450 milligrams of omega-4 fatty acids, which helps in digestion and avoids gas in the stomach. The Flax cereal is 20 grams of whole grain and no other cereal product has ingredients as the new product. This product will be unique ones it will be released to the market in June 2011. For the new cereal product to penetrate the market, the company is developing a marketing strategy that will work (Monroe, 2003, 48).
The company is planning to open several stores in all the regions where many people live. In addition, Food Production Company intends to open a selling store in all hospitals so that parents an be buying them after the prescription from the nutritionists in the hospitals, dispensaries, and health centers. The high-quality product will be advertised through the radio stations, TV, business magazines, and in the company’s website. The company will identify suppliers who are dedicated to ensuring the products reach the customers and potential customers in opportune time. To ensure the product is well known before June 2011, the sales and marketing department has employed professional marketers to explain to the people of the new product about to be introduced in the market (Monroe, 2003, 49).
The sales persons are the ones who conducted market analysis and came up with what the customers wanted. All the promotional and advertising media were used in order to ensure all people get the message. This is a strategy because other people do not have TVs and cannot afford the monthly magazines, but can get radios and vice versa. The product will be packed in weights that people can afford. It will be packed in smaller units, medium, and large to cater for all people in the market. This marketing strategy, which is meant, outperforms its competitors in the market. Other cereals from other companies are packaged in units from two kilograms and other people cannot afford to buy; hence, it will advantageous to the Food production company because it wants to satisfy all customers with different income status and level (Monroe, 2003, 53).
The product will be sold at a price lower than its competitors and a quantity discount provided for those who will be buy in large quantities. The advertisement through the radio and TV media will be broadcasted immediately before news time when most people are about to listen to the news. This will in March 2011 from Monday to Friday on 9am, 1pm, 4pm and 7pm. It will be published in the business and financial management magazines starting in February until December. This will be before the product is introduced in the market. The pictures of the product the way it will be packed when the product will have been introduced in the market will accompany the TV adverts. It should explain all the benefits of the product to the children. In the magazine, it should draw the picture sample of Flax cereal (Monroe, 2003, 55).
The objectives of advertising are, first is to ensuree the target market audience get to know the Flax cereal before it is introduced in the market. Secondly, to increase the customer base by 12% in the market in order attracts more customers, and this will ensure the firm gain competitive advantage. This will ensure the company’s products dominate the market where there is stiff competition. The following is the budget for the Food Production Company for the next one year (Monroe, 2003, 57).
Cost of raw materials 30000
Cost of advertising (1 year) 10000
Wages and salaries 5000
Estimated profits 35000
The sales are expected to increase annually because the customers and potential customers are willing to purchase the company’s new product (Monroe, 2003, 58).