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The Marketing Plan
This case is designed to provide an example of a marketing plan built up, step by step, in
the fashion used in the discussion of specific aspects of marketing and company planning
The object is to show how marketing decisions are translated into revenues and costs to
create a budget to optimize the profitability of the operation; how the plan is then used for
control purposes, and how decisions on new investment can then be integrated into the
final document.
The company, in this example, is Crazy Foods a manufacturer of fresh luminescent
yoghurt. It has decided to follow a cautious strategy of market penetration for the next year
concentrating on the use of increased media expenditure; a policy based on the
competitive advantage of having the only such product in the market sector.
Crazy Foods - marketing structure
Segment
Research on fun yoghurt indicates (Table 14A) that the market profile is - as the company
had initially identified - the ABC1/C2 younger age group.
Table17A. Crazy Foods Market Research. Percentages replying 'yes' to the question Do
you eat fun yoghurt frequently?
Socio-economic group
AB
C1/C2
D/E
15
18
9
Age
7-11
12-18
19-25
26-45
46-65
75
25
6
4
2
Segment is quite clearly A/B/C1/C2 aged 7-11. The size of this segment is approximately 5
million - it is identifiable, stable, substantial, measurable. Psychographic segmentation
(page 21) factors are relevant in that group as it will be parents who purchase the
product, rather than the child consumer.
Product benefit
Research among fun yoghourt consumers reveals that the following issues are important -
ranked in order of importance: 1) colour, 2) texture, 3) taste, 4) wide availability, 5)
freshness, 6) product is entertaining to eat. Attitudinal benefits are not considered
particularly important. Price is relevant only to the purchasers of the product - and is not of
importance. Crazy Foods has developed a unique bacterial process which when exposed
to light produces luminescence - the products glow red, orange, yellow, green and violet.
Texture and taste are similar to other yoghurts. Research on Crazy Foods reveals the
following competitive information. Question: What do you think of Crazy Foods compared
with other yoghurts on a ranking of 1 (much worse) to 5 (much better) than competition:?
Colour (5), Texture (3), Taste (3), Freshness (5), Wide availability (4), Product is
entertaining to eat (5) price (3).
The company meets the required consumer product benefit which is clearly colour, texture,
taste, availability, and entertainment value. Crazy Foods also meets the legal requirements
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