Muggy Contributors: Ally Bertrand, Creighton Elinski, & Mary Ford 1 Table Of Contents Mission, Goals & Objectives……………………………………………….. 3-4 Situation Assessment - Climate Political & Legal……………………………………… 4 Economic……………………………………………… 4 Social & Cultural……………………………………. 5 Technological ……………………………………….. 5 Competition…………………………………………… 5-6 Needs Assessment………………………………… 7 Marketing Audit……………………………………………………………… 8-10 SWOT Analysis……………………………………………………………….. 10-11 Market Segmentation……………………………………………………. 12-13 Target Markets………………………………………………………………. 13 Positioning ……………………………………………………………………. 13 2 Mission: Market an environmentally sustainable and biodegradable coffee mug. Goals: Give customers the best value, at the best price Act Ethically Go Green 100% Sustainable Objectives: Management Objectives Always promote from within Training happens constantly Employment Objective Hire great people Treat employees well Give employees good jobs Business Objectives: Know on what level you compete Give consumers what they need and want Stay focused on exceeding environmental standards Create revenue 3 Growth Objectives Run the business for long-term sustainability Expand markets Develop internet sales Marketing Objectives Increase word of mouth leads by 14% to achieve 33% of sales leads from Word-of-mouth by Dec. 31st, 2013. Advertise Muggy via internet, TV and radio in order to increase awareness Create local deals and exclusive coupons for anyone who hasn’t heard of the Muggy Become involved in the community by going to local street markets and vendors. Create brand awareness by 22% by July through social media: Create a Facebook page with a new deal each month. Ethics Objectives Treat customers properly Treat employees properly BPA Free Create a product that does not harm the environment Climate: Political and Legal Liability with customers Liability with employers Non-discrimination policy Regional operations Economic Energy costs Healthcare costs 4 Tax policies Labor costs Social Ethical treatment employees Some are against cooperation Spreading awareness of ecological sustainability Technological Energy conservation of stores and factories Eliminate carbon content of manufacturing operations Use renewable energy Competition: Direct Competition Nalgene Thermos REI What do to they offer: Competitive beverage containers Direct Competition Stores Target Market REI 125 stores in 31 states Outdoors individuals looking to fAnyind a variety of Nalgene Sold online and in many retail College students looking for stores adventures. Thermos Sold at 50+ retail chains Business professionals Copco Sold in many home and goods Anyone looking to purchase an retail stores, as well as online affordable coffee mug 5 Indirect Competition: Disposable drink containers -Solo Cups -Berry Plastics Corporation -Dixie Ceramic and glass mugs -Splendid’s Coffee Mugs -Enjoying Tea Need’s Assessment Situation Assessment Marketing Audit Program/Facility Description SWOT Analysis Marketing Objectives Market Research o Segmentation o Target Marketing o Positioning 6 Marketing Audit: History: Muggy is a brand new company, created to support the needs of sustainable individuals. We began our company because we wanted there to another option; we designed our coffee mug to serve the needs of our environment. These days everyone is jumping on the “go green” initiative, so we are going to take advantage of this rising trend in the market. Philosophy: Mission: Market an environmentally sustainable and biodegradable coffee mug Vision: To give customers the best value, at the best price. Values: Our values are organic. We exist to serve sustainable people. We listen to what our customers have to suggest. Product: Biodegradable coffee mugs of different shapes, sizes, and colors. Services: Free factory tours Complimentary mug inspections/maintenance Guaranteed money back if not satisfied with the Muggy Facilities: Muggy Corporations is located in the heart of Salt Lake City, Utah. Anyone may purchase a Muggy through our accessible website. Our goal is to promote our products throughout various sporting goods stores. Also by promoting Muggy throughout college campus’ we will take advantage of that market as well. Campuses all over the country are going green, and Nalgenes and water bottles alike sell out at the bookstore all the time. And another advantage is a lot of college students and teachers drink coffee! 7 Organizational Chart: CEO Product Manager Creighton Elinski Ally Bertrand Creative Director Mary Ford Various Stakeholders: Investors Suppliers Employees Environmental groups Strategic Objectives/Master Plans: Market our product in various sporting goods stores, (i.e. REI, Dicks, Big 5, Kirkland) Market our product throughout college campus bookstores Increase awareness among our target markets Be 100% sustainable Financial Status: Expenses: -Product costs will be an estimated $20,000 per year -Labor costs are an estimated $200,000 per year -Marketing costs will range from $500-$1,000 per month Financial Goals: Create revenue - Approximately 500,000 in first year 8 Historical Marketing Efforts: We plan to market through our Website, T.V. commercials, magazine ads, flyers, and word of mouth. Image: The image that Muggy expects to gain will be a trustworthy company with quality service. We believe to have the best product at the best price. We will do everything to satisfy our customer’s needs. SWOT ANALYSIS: Strengths: The strengths for Muggy Eco Mugs are that there are not many competing companies. Also everyone seems to want to “go green” and our mugs are biodegradable and environmentally friendly. We chose to market our mugs in various sporting good stores because most people that shop there tend to be environmentally conscious/ aware. These people enjoy the outdoors and respect the beauty of nature and want to keep it that way. Our company is rare, which to us is a strength. Weaknesses: A weakness of our company is that production is going to be on the more expensive end of the spectrum. Also since it is a rare and new product the market is going to be smaller. We are going to have to target the environmentally friendly and conscious population, which is not in every city. Opportunities: We have great opportunities to expand our market across the United States. By marketing our product in stores such as Dicks Sporting Goods & REI our product can be distributed across the country right off the bat since those stores already have various locations available. Also since our product is new we have an opportunity to introduce a new product to the public. 9 Threats: When doing research it was evident that there are a few companies that make an environmentally friendly and biodegradable to go coffee mug. These companies market that they are environmentally safe and conscious. But the mugs are expensive. We are going to have to compete with those companies. Dicks Sporting Goods does not currently sell anything similar to our product. Whereas REI sells various coffee mugs, some of which are recycled but none are biodegradable. Market Segmentation: Geographic Segmentation: -Mountain areas have more need for portable thermal mugs -Cities have large populations that increase the demand -Any areas with a large population of coffee drinkers; Seattle, Philadelphia, Phoenix Psychographic Segmentation: -Locations where coffee drinking is part of the lifestyle create a huge market -People value coffee produced in an eco friendly way, these people would be more likely to purchase an eco friendly mug -All social classes drink coffee. There is a coffee product for everyone. Marketing to each class with a different price mug will spread Muggy to the masse Positive Market Segmentation: -Muggy’s positive market will target the middle price range while being the most ecological friendly company from the beginning of production to the end product. 10 Price High Thermos Brand Muggy Less Eco Friendly More Eco Friendly Nalgene Rei Price Low Behavioral Segmentation: -Areas of the United States have more knowledge of the need to become eco friendly; the demand in these areas will be higher. -Muggy will likely have a better response in areas that care more for the environment Occasions: -Christmas and holidays will increase sales -College midterms and finals will raise demand Target Marketing: -The first market we are going to target are colleges in populated cities. Coffee is a necessity to many college students and professors, making it a realist and obtainable market. A reusable mug will save the individual money while saving the environment. With the high amounts of 11 commuting, reusable mugs are easily lost and misplaced, which is where the biodegradable marketing element comes into play. - REI and Dicks Sporting Goods and similar stores are also going to be part of our target market. These stores sell sporting goods ranging from basketballs to climbing gear. We figure this people enjoy being outdoors and want to preserve nature. So for those who drink coffee the idea of an environmentally friendly and biodegradable mug might appeal to them. Positioning: -Muggy will create an image of being the most ecological friendly corporation. The brand name Muggy will be synonymous with sustainable products. Through our production processes there will be no waste with the end product as fully biodegradable goods. Our brand image will be developed through 50% of profits going to wilderness recovery programs. 12