Marketing is case 6 Biofoam: just peanuts?

Thomas Tallberg E4 Kristian Sllstr m E4 !hristian "estermark E4

Biofoam: #ot $ust %eanuts&

'( )utline Biofoam*s current marketing strateg+( "hich elements of the marketing mi, are most important for Biofoam to focus on? %ro-uct: .ualit+ /The Biofoam sorghum peanuts -o as goo- a job as the best foam peanuts 0eatures /The+ hol- no electrostatic charge /En1ironmentall+ frien-l+ an- eas+ to -ispose %romotion: 2-1ertising /!hoosing the right retailers an- pro1i-ing the potential customers 3ith pamphlet e,plaining the a-1antages of the Biofoam peanut( /Targeting hea1+ users of St+rofoam peanuts4 e(g( sign t3o major accounts 5 the 0uller Brush !ompan+ an- computer reseller Micro2ge( /6mme-iate4 reliable4 just/in/time -eli1er+ combine- 3ith on/site ser1ice an- a fi1e/ +ear price guarantee 3ith no interme-iaries in1ol1e-( /#e1er run out of packaging an- a1oi- the e,pense of stockpiling materials %rice 7ist %rice /Tr+ing to keep the same price or cheaper than the pol+sterene peanuts b+ re-ucing the -eli1er+ cost to a minimum %lace 7ocations /"illing to install machines on the customer8s premises to pro-uce peanuts in/ house( Transport

/6mme-iate4 reliable4 $ust/in/time -eli1er+

"e think that the most important element is to focus on the pro-uct because if the potential consumer can*t notice the a-1antages 3ith using the Biofoam compare- to the other a1ailable foams4 the pro-uct 3ill not succee- on the market( )ne other ke+ element is also the placement( The+ nee- to con1ince the potential customers of the possible profit an- a-1antages4 3hich the+ 3ill recei1e from allo3ing Biofoam to be pro-uce- at their premises( 6f this 3oul-n*t be possible the pro-uct price 3oul- increase significantl+( 9( "hat is the nature of -eman- in the loose/fill packaging in-ustr+? "hat factors shape that -eman-? The packaging must be light3eight4 ine,pensi1e an- resilient( The+ ha1e to conform to an+ shape4 protect superbl+4 resist shifting in transit4 an- lea1e no -ust+ resi-ue on the goo-s the+ protect( 2 reason 3h+ the loose/fill pro-ucts must be light3eight is that the+ -on8t increase the package 3eight( The+ also ha1e to be cheap so that the+ -on8t affect the actual pro-ucts price( 2nother aspect is that the peanuts must be resilient so that the+ can form into an+ necessar+ shape(

:( 6f +ou 3ere a bu+er of packing materials4 3oul- +ou agree to Biofoam*s offer to machines insi-e +our plant? 6f not4 ho3 coul- Biofoam o1ercome +our objections? "e belie1e that it -epen-s greatl+ on 3hat kin- of pro-uct;ser1ice 3e pro-uce( There are also factors like a1ailable space an- 3hat kin- of smell4 noise an- heat the machiner+ pro-uces( 2ll these 1ariables ha1e to be 3eighe- against the profitabilit+ 3e get out of changing foam( 7ike all obstacles there are 3a+s of eliminating them( Biofoam coul- for instance contribute 3ith the possible installation or operation costs( 6f the heat4 noise or smell 3oul- be a note3orth+ factor the+ coul- perhaps re-uce them someho3( 4( "hat en1ironmental an- organi<ational factors are likel+ to affect the loose/fill packaging in-ustr+? =o3 3ill these factors affect Biofoam? 0rom the en1ironmental 1ie3 the -eman- on a frien-lier manufacturing 3a+ is rapi-l+ increasing( The consumers are getting more a3are of the surroun-ing nature an- are -eman-ing more en1ironmentall+ frien-l+ pro-ucts4 3hich can be easil+ -ispose- or rec+cle-( 0rom an organi<ational 1ie3 point the pressure of re-ucing cost is al3a+s a hot issue( B+ concentrating the subcontractors closer to +our premises the compan+

3oul- not onl+ benefit financiall+ but also secure the a1ailabilit+ of packaging materials( This 3oul- affect Biofoam positi1el+ because their pro-uct has the abilit+ of satisf+ing both of these -eman-s( >( 6s 2lfke right? 6s this a goo- -eal? "oul- +ou ha1e bought into the firm? "h+ or 3h+ not? "e think that he 3as right an- bol- tr+ing to con1ince the consumers in '??> that the+ nee- to start thinking of the en1ironment( 6n those -a+s the majorit+ of companies -i-n*t care much about en1ironmental issues( 2pproaching the market 3ith a pro-uct like this 3here +ou offer the same @ualities as the e,isting one an- a--ing the feature of eas+ -isposabilit+ 3as an e,cellent i-ea( 6n '??> 3e 3oul- probabl+ not ha1e in1este- in this firm( !onsi-ering ho3 1ital these issues are kno3/a/-a+s it 3oul- surel+ ha1e been a lucrati1e -eal(