MBA FPX 5012 Assessment 1 Marketing Plan

Student Name

Capella University

MBA-FPX5012 Marketing Management

Prof. Name:

Date

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 and leveraging emerging marketing channels will provide a competitive edge.

The SWOT and PEST analyses suggest that while MSH Brands’ product portfolio positions it for growth, the company operates in an evolving and competitive environment. Adapting to changes, such as stricter regulations and shifting consumer behaviors, will be crucial for sustained profitability.

Marketing Strategy

MSH Brands’ marketing strategy focuses on two primary approaches: differentiation and niche targeting. Differentiation involves creating distinct attributes to set MSH Pro Large apart from competitors. By investing in R&D, MSH Brands aims to continually innovate, ensuring its products remain unique. Additionally, the company targets underserved segments within the dog food market, such as large breeds that prefer larger kibbles, leveraging this niche to build market share.

The company will implement a flexible marketing campaign, adjusting to market dynamics. For instance, product differentiation may shift from real to perceived attributes if cost considerations dictate. This adaptability allows MSH Brands to effectively capture various market segments.

Marketing Tactics

Promotional Strategy: MSH Brands will utilize online media, including social media and websites, to promote its products and engage with customers. Complementary channels such as mass media and distribution agents will also be used to reach diverse demographics.

Pricing Strategy: The company will adopt value-based pricing, reflecting the perceived worth of MSH Pro Large to customers. This approach is essential in a competitive market where price sensitivity influences sales.

Distribution Strategy: MSH Brands will emphasize e-commerce and online distribution, supported by third-party agents and distribution stores to enhance its geographical reach.

Advertising Strategy: The company will blend traditional advertising methods, such as direct and mass media marketing, with digital platforms like social media. This strategy maximizes brand exposure and effectively reaches target audiences.

The marketing mix will remain flexible, allowing MSH Brands to adjust its tactics based on market trends and campaign effectiveness, ensuring optimal performance in varied conditions.

Effectiveness

The effectiveness of the marketing plan will be assessed using three primary metrics: sales revenue growth, expansion of sales and distribution agents, and market share increase. The goal is to achieve a 10% increase in sales revenue from MSH Pro Large by period 4, driven by enhanced brand awareness and customer loyalty. The company also aims to expand its sales and distribution network by 10% by period 2, enhancing service delivery and competitiveness. Additionally, MSH Brands targets a 5% increase in market share by period 5, aligning with industry growth projections and the company’s long-term market leadership ambitions.

Summary

MSH Brands’ introduction of MSH Pro Large addresses a specific market need for large dog breeds. The marketing plan outlines strategies including value-based pricing, differentiation, niche targeting, and a focus on e-commerce to enhance the company’s competitive position. By leveraging an adaptable marketing mix and robust distribution strategies, MSH Brands aims to achieve its objectives of increased sales, market share growth, and enhanced profitability.

References

BLS. (2022). Consumer Price Index Summary. U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/cpi.nr0.htm.

Brandessence Limited. (2017). At 4.1% CAGR, Pet Food Market size is Expected to reach USD 118.77 Bn in 2027, Says Brandessence Market Research. PR Newswire. https://www.prnewswire.com/news-releases/at-4-1-cagr-pet-food-market-size-is-expected-to-reach-usd-118-77-bn-in-2027–says-brandessence-market-research-301426687.html.

Gander, J. (2017). Strategic analysis: A creative and cultural industries perspective (1st ed.). Taylor & Francis.

Hooley, G., Nicoulaud, B., Rudd, J., & Lee, N. (2020). Marketing strategy and competitive positioning (7th ed.). Pearson.

Li, K., Foutz, N., Cai, Y., Liang, Y., & Gao, S. (2021). Impacts of COVID-19 lockdowns and stimulus payments on low-income population’s spending in the United States. PLOS ONE, 16(9), 1-8. https://doi.org/10.1371/journal.pone.0256407.