MBA FPX 5012 Assessment 1 Marketing Plan MBA-FPX5012 Marketing Management
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Executive Summary
This marketing plan examines key elements involved in promoting MSH Brands’ new product, the MSH Pro Large. Designed for large dogs that prefer chewing on larger kibbles, MSH Pro Large targets a specific market niche. The marketing plan is organized into five sections: situation analysis, marketing strategy, marketing tactics, effectiveness, and summary. The situation analysis includes SWOT and PEST analyses. MSH Brands’ strengths lie in its brand equity and focus on e-commerce, which positions the company to benefit from the growing dog food and e-commerce markets. The marketing strategy outlines the company’s competitive positioning, emphasizing product differentiation and targeting niche segments within the dog food market. Marketing tactics include a detailed marketing mix, while the effectiveness section outlines key metrics to measure success, including a 10% increase in sales revenue by period 4, a 10% growth in sales and distribution agents by period 2, and a 5% market share increase by period 5. Finally, the summary consolidates the key insights from the analysis.
Business Context
MSH Brands is launching MSH Pro Large, a new dog food product specifically for large dogs that enjoy feeding on larger kibble. The product meets a growing demand as ownership of large dog breeds increases. MSH Pro Large features a larger kibble size to make eating enjoyable for large dogs, with added fiber and reduced fat for better nutritional balance. The company aims to capture significant market share in this segment, enhancing its market presence, revenue, and profitability. The primary business objectives include expanding its market share, increasing revenue, and improving profitability. According to Brandessence Limited (2017), the dog food market exceeded $55 billion in 2020 and is projected to grow by 5% annually to reach over $73 billion by 2027. Despite competition from four major companies in the pet food market, MSH Brands aims to secure a competitive advantage by focusing on this niche market.
Although the market presents positive growth prospects, MSH Brands faces several challenges. The company is relatively new and competes in a market with five established firms, which puts it at a disadvantage regarding market share and brand equity. Furthermore, catering to a niche market requires substantial investment in market research and product innovation, which could strain resources. Despite these hurdles, MSH Brands anticipates significant growth through a well-structured marketing plan.
Situation Analysis
MSH Brands operates within a dynamic internal and external environment. The following SWOT analysis highlights key factors influencing the company’s performance:
Strengths: MSH Brands has established a reputable brand in the pet food sector, focusing on excellent customer service and product quality. This solid reputation will facilitate the adoption of the MSH Pro Large product.
Weaknesses: The company’s limited geographical presence poses a challenge in penetrating new markets beyond its primary region. However, MSH Brands compensates by investing in a strong online presence and distribution system.
Opportunities: The rapidly growing dog food market offers long-term growth potential. Additionally, the expanding e-commerce sector provides MSH Brands with a competitive edge.
Threats: The pet food industry is highly competitive, with four other major players, posing a significant threat to MSH Brands’ short-term growth. Rising production costs, including increased labor expenses, have also impacted profitability, influencing pricing strategies.
A PEST analysis further evaluates external factors affecting MSH Brands:
Political Factors: Political stability and regulatory changes in the pet food industry, such as those by the Food and Drug Administration (FDA), directly influence MSH Brands. New regulations like the Food and Safety Modernization Act affect production costs and investment decisions.
Economic Factors: High inflation rates and increased competition constrain profit margins and growth. However, the growing e-commerce sector offers substantial benefits in terms of cost-effectiveness and sales.
Social Factors: Consumer spending patterns, particularly post-COVID-19, have shifted, with increased expenditure on essential items, including pet food, benefiting the industry.
Technological Factors: Technological advancements influence product development and marketing strategies. Emphasizing innovation a