NCB A& E

Marketing plan
Patties Food Ltd. Netherlands

Submitted to : Mr.Aamir Sadiq Submitted by: Faysal Ahmad Khan Reg.#: 2091032 Class: MBA – Regular Evening Course Title: Basic Marketing Semester: First

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Table of contents
Table of contents Executive summary
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2 3

The Netherlands – an introduction

Assessment of organization (SWOT analysis) Marketing objectives
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5-6

Objectives / Goals Strategy statement

Market analysis
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6-7

Market research Market potential Competitive and environmental factors

Marketing strategies
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Assumptions Target markets Products, & prices Distribution Promotion

Marketing implementations, evaluation and control Conclusion 13

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Executive summary
Patties Food Ltd. is host to many different and well known brands such as Patties, Snowy River, Herbert Adams, Four’n Twenty, Nanna’s and Creative Gourmet. In 2007, Patties Food Ltd. made a profit of 12.7 million dollars which means a growth of 29% in relation to 2006. It has an overall market share of 51% and is ready to take over the international market. The company has already expanded into the United States of America and is seeking expansion in Europe. It has designated The Netherlands as a place to start and it will introduce the Patties brand at first. By launching in the Netherlands, Patties Food Ltd. hopes to bring pastry snacks to Europe and establish a European base.

The Netherlands – an introduction
The Dutch are neither the clog-wearing windmill-dwellers of popular folklore, nor the drug-dealing pornographers which they have been made out to be in recent times. Few Dutch people would recognize themselves in such stereotypes. They are certainly a unique people and this begins with the fact that they have quite literally had to create their own country in the face of overwhelming natural adversity. To do this they have had to be both ingenious and courageous, two traits that are as common today as they have ever been. The Netherlands has a very strong economy. Placed 16 on the 2005 GDP list by the international monetary fund, the Netherlands have an excellent and strong economy. In 2007, all inhabitants consumed 105.8 of food. Dutch are traders by nature and tradition, as such; the import and export laws are flexible. It has only the size of 0.0054% of Australia but on the GDP list The Netherlands are just below Australia. The Netherlands have 16 million inhabitants and is a country with great importance in the European Union and market. It has a stable parliamentary democracy and a constitutional monarchy. The perfect environment for a European launch.

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Assessment of organization
Strengths

Patties Food is a stable but growing company for years and continues to do so. This resulted in a 10% increase in net sales revenue and a net profit after tax growth of 29%. In 2007, the company acquired Creative Gourmet and Chefs Pride which was one of the direct results in an increase of market share by 2% to 51%. Patties is a good quality product line offered by Patties Food Pty Ltd. This is unique in The Netherlands where most party snack packages are cheap and hard to find. Patties Food has 7 product lines to target a significant group of customers. This allows the company to be flexible and stable as a whole and therefore attractive to investors. Patties Food’s product lines are suitable for every kind of customer. There is a premium brand (Herbert Adams), a brand for the every day customer (Four’n Twenty), a brand for the value end of the segment (Snowy River), a brand for parties and entertaining occasions (Patties) and a brand for hotels, restaurants and caterers (Chefs Pride).

Weaknesses

Patties’ products do not have ‘light’ variations with exception of a 12 pack party pies. Patties is not known as being healthy and known as products with a lot of fat. This could be improved by adapting products to create light products. Patties is unknown to the Dutch market and there are competitors around offering the same kind of products – party snacks. This will make it hard for Patties to acquire initial market share. The fluctuation in currency and oil price is of direct harm to our company as we need to export products to the Netherlands.

Opportunities

Patties Food has great potential outside Australia. This has already resulted in a launch in the USA but Europe and Asia have not been covered at all. Patties Food currently does not sell directly to in-store customers. If they need a large amount of food for a one time opportunity, their only option is to order it via a retailer. We could open the possibility to order large amounts directly via the sales department. 4

Threats

Competition in the Netherlands might take over the idea of offering pastry party packs. This could result in the loss of market share and brand awareness as it has been scientifically proved that people do not remember a lot of brands if the brands offer the same kind of product. The Dutch inhabitants may have distaste to our products. This risk is minimal due to the strong influence of other cultures into the Dutch and the Dutch culture eating a lot of meat.

Marketing objectives
Our long term objectives are to be successfully present in the European market and establish a base in Europe. The first goals specifically aimed at the Netherlands are stated below.

Objectives/Goals
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Market share: Our aims are set at achieving a 10% market share in the first 2 years. Brand awareness: We want to get and increase brand awareness in the first 18 months.

Strategy statement
Market share: 1. We want to contract major supermarkets and promote the products in the supermarket. This forces the market to make a decision on different brands on the spot. 2. We want to offset our products to whole sale as bigger parties require bigger amounts and the market wants to buy in big amounts.

Brand awareness:

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1. We want to advertise in supermarkets’ in-house magazines and magazines aimed at students. 2. We want to start with a low introduction price to make sure people consider buying our products and therefore know about our existence. 3. We want to bring our products to the customer in supermarkets. This allows the customers to try our product before buying it and feel positive about our product.

Market analysis
Market research

The average expenses in Dutch families on frozen foods and snacks are €878 per year in 2004 while it was €745 in 2000. This is an increase of 17 percent. If this continues to 2008, the market potential totals €74.4M. In 2004, all households spent an average amount of 4668 euros per year on food. This means 19% of all food is frozen, snacks or eaten at parties. This means there is a big opportunity for us to this market.

Market potential
A number of 401013 related parties, functions, weddings, club meetings etc. have been held in the Netherlands in 2002. Multiplied by the percent growth of the population between 2002 and 2007, we can expect a number of 407305 parties being held in 2007. This is good market to start in as well as expand in.

Competitive and environmental factors
In the Netherlands, there aren’t many pastry snack packs available in supermarkets but there is a lot of competition on toasts with spiced butter, peanuts and small blocks of cheese as this is very commonly found at informal parties and perhaps part of culture to provide this as a basis. However, people do tend to do something extra and this can vary a lot. This can be fruit, olives, fish, sausage or something else. This is where promotional strategies can focus on – a different kind of extra party food.

Unilever B.V. – big company in food service

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Unilever B.V. is a Dutch company by origin and one of the biggest Dutch food suppliers. With 16 different brands on food, this company is a big competitor in the Dutch market. It has microwave-products to target a fast meal or snack. However, none of their food brands has ready-to-go pastry products. Patties Moreover, Unilever B.V. has excellent knowledge about the Dutch culture and customer behaviors and has over 75 years of experience in the Netherlands. They target the low-budget market as well as mid-ranged and high-quality demands.

Dutch are interested in novelties, quality and time and labour saving

The Dutch are very keen to try out new and unique products according to Austrade. This makes it interesting for us to join in. We are new, our party products are of high quality and ready within minutes.

Customs

The Dutch are very open in trading and import and export is large. However, bringing in food products will require more than a form; it needs an inspection by European Union (EU) standards. The Australian Quarantine and Inspection Service (AQIS) will carry out this inspection on behalf of the EU. Aside this, Dutch customs are allowed to carry out any additional inspection and will do so randomly amongst all incoming freight.

Marketing strategies
Assumptions

The Dutch informal parties tend to start with small bites such as blocks of cheese, peanuts and biscuits followed by salads and bread with meat or other main courses. The Dutch formal functions and dinners etc. are started by a drink and a small bite, often with a speech of someone followed by an extensive range of premium foods.

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Target markets
Patties Food Ltd. differentiates from other companies because it is targeting professional customers together with end customers.

Professional customers – hotels, restaurants, hospitals, caterers and small food retailers

We are looking for businesses in catering and wholesale to sell them big amounts of products for a competitive price. The customer is providing food and/or beverages to the bigger or high-classed parties, festivals and meetings.

End customers – individuals organizing parties

We will be targeting the ‘everyday party organizer’ mainly trough supermarkets. This customer is organizing a small meeting with a couple of friends like a birthday but can also provide bigger parties such as a street fest or general club meeting. The organizing party can be anyone, from unskilled manual workers to surgeons, from the age of 15 to 60. The average income for workers is €1800 per month, excluding bonuses etc.

Products & prices
In this new market, we will start out with a variety of products to impress the target markets but not every product as the costs will become too high to import everything. Every product will be adapted to Dutch and EU regulations such as providing contact details and detailed nutrition information on every package.

Premium beef pie – 210 grams

Description: Mouthwatering premium chunks of beef tenderly cooked and blended with Patties specially seasoned gravy and encased in our famous delicious golden pastry. Target: This luxury product is specifically aimed at professional customers.

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Costs The costs for production and shipping are estimated at €0,88 a piece. The price for professional customers will vary between €1,83 and €3,44, depending on the ordered amount. The price for the end customer will be €3,50.

Chicken & Vegetable pie – 200 grams Description: The finest selection of fresh garden vegetables combined with succulent chicken pieces. Target: This product will be aimed at both mid-range professional customers and end customer. Costs The costs for production and shipping are estimated at €0,70 a piece. The price for professional customers will vary between €1,80 and €2,50, depending on the ordered amount. The price for the end customer will be €2,70.

Party pies – 6 x 12 pack Description: Our delicious beef party pies are made from 100% beef with flavoursome gravy and encased in our famous flaky pastry. The perfect party food. Target: This product will be aimed at both mid-range professional customers and end customer. Costs The costs for production and shipping are estimated at €4,20 per pack. The price for professional customers will vary between €5,50 and €8,50, depending on the ordered amount. The price for the end customer will be €9,95.

Entertainment pack – 6 x 12 pack Description: The Entertainment pack is a perfect combination for the caterer’s function. Consisting of the already well-known traditional Party

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Pies, Party Pasties and bite sized Cocktail Sausage Rolls; we have included two more tasty products. The 'Bacon Cocktail Sausage Roll', is made with our blend of special seasoning and grated vegetable filling. We then enhanced the filling with tasty bacon pieces and sprinkle with sesame seeds creating a delicious taste sensation. The final product we add to finish off this caterer’s dream pack is the Curry Chicken and Vegetable Party Pie. We use the finest selection of vegetables combined with succulent chicken pieces, enhanced with tantalizing curry and lightly sprinkled with toasted breadcrumbs. Target: This luxury product is specifically aimed at professional customers Costs: The costs for production and shipping are estimated at €4,80 per pack. The price for professional customers will vary between €7,00 and €11,00, depending on the ordered amount.

Distribution
Professional customers: the professional customers will be supplied trough a warehouse in the Netherlands only. Because they order in large amounts, we do not require a distributor End customers: we will decide on a distributor to sell to retailers in the Netherlands but keep involved in the process of selling to major supermarkets.

Promotion
Image The image we will try to create using all promotional activities focuses on 3 points:
• •

Healthy party food – low fat Easy to prepare so you have time to meet with your guests 10

It’s frozen so you can keep it in your fridge for a later time

Strategies towards professional customers:

Activity

Time frame

Costs

¼ page color advertisement in “Misset Catering”, a Every month €981 magazine for professionals in catering for 1 year ¼ page color advertisement in “Misset Horeca”, a magazine for professionals in hospitality €1187 Every month for 1 year

Strategies towards end customers:

Activity

Time frame

Costs

Advertising campaign on In the month September, €300.000 including “SBS6”, a Dutch TV station during series between 20:30 the making of and 22:30 for 30 seconds commercial every day Free tasting of our product in In the month September, 40 supermarkets with a stall major supermarkets will be €75000 on staff, visited at least once in a logistics and €25000 week on products 1/8 page color advertisement 8 editions in 8 weeks in the campaign in one of the major month October €5104 television guides, “Veronica Magazine”

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Marketing implementation, evaluation and control
Activities Responsibility Timeframe/Deadline 2008

Contact with Royal Ahold Vice Managing Director December group to propose a business of Patties Food Ltd. And relation concerning Royal Ahold supermarket ‘Albert Heijn’ representative Contact with Laurus Group to propose a business relation December concerning supermarkets Vice Managing Director ‘Edah’, ‘Konmar’ and ‘Super of Patties Food Ltd. And de boer’ Laurus Group representative Conduct a meeting with SBS group about advertising on “SBS6” (TV) and in “Veronica June magazine” (magazine) Director of marketing and SBS group Launch of the Dutch division representative First evaluation – check of progress Second evaluation – check of Managing Director Patties Food Ltd. progress Third evaluation awareness goal Final evaluation share goal – – director Brand Vice marketing Market Vice director marketing or representative Vice director marketing or representative Vice director marketing or of 1 September

2008

2009

2009

Beginning of January 2010 (3 months after of launch) July 2010 (11 months after launch)

of local March 2011 (18 months after launch) of September 2011 (2 years local after launch) of local 12

representative

Conclusion
The Netherlands is a good place to start in. With the help of the Dutch, we can start taking part in the European market.

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