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Bond – Truvia Strategic Marketing Plan
Truvia® Marketing Plan
Leah Bond
MGMT 530 – Strategic Marketing
May 6, 2012
Deb Stockman
Southwestern College Professional Studies
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Bond – Truvia Strategic Marketing Plan
Abstract
A strategic marketing plan is necessary for any company – large or small – in order to
remain competitive and profitable for the future. A strategic marketing plan lays the foundation
for the entire business as it stands today, and in the near future. It allows business owners and
leaders a way to examine the company’s strengths, weaknesses, opportunities and threats; as well
as several other factors. Truvia®® is an all-natural, zero-calorie sweetener made from the stevia
plant leaf. It was developed in partnership by Cargill and The Coca-Cola Company in 2008.
Truvia®® was the first all-natural sugar substitute on the market and must ensure that its
products remain competitive and ahead of the curve to gain and maintain market share.
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Bond – Truvia Strategic Marketing Plan
Executive Summary
Truvia® was the first ever all-natural, calorie-free sugar substitute to hit the market in
2008. Since then it has strategically marketed its products up to the number two overall sugar
substitute brand on the market, next to Splenda. The major goal of this strategic marketing plan
is to push Truvia® up to the number one brand position within the next two years. This means
that Truvia® will need to increase its market share from 13 percent (in 2011), to above 40
percent. In doing so, Truvia® will drive down the market share of its top competitor, Splenda,
from 60 percent (in 2011), to around 30 percent. Truvia® is also marketing its products to brand
name soda and tea companies for use in their low calorie and zero calorie drinks. Each of these
goals will require much stronger brand awareness among consumers. The more consumers learn
about Truvia® unique and healthy qualities, the demand for its products will keep rising higher
and consumers will begin to create a demand for it in more of the sodas and teas they currently
enjoy. Some challenges Truvia® faces in meeting its goals are the possibilities of its competitors
designing similar products, rising production costs, and any natural threat that could affect the
stevia crops. This strategic marketing plan describes in more detail Truvia® goals and
objectives; its internal, customer and external environments; and its strengths, weaknesses,
opportunities and threats. It also lays out a tactical marketing activities diagram for the company
to follow to help it overcome these obstacles and reach its goals.
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Bond – Truvia Strategic Marketing Plan
Situation Analysis
The Internal Environment:
Marketing Goals and Objectives
Truvia® marketing goals are to be the number one sugar substitute on the market, and to
partner with as many other food and drink manufacturers as possible to have them use Truvia®
in their products. Truvia® objectives are to continue judging consumers’ wants and needs to help
in new product research, and also to grow the marketing plan to gain market share and corporate
partners.
The first goal and objective set is being achieved by marketing Truvia® qualities that set
it apart from other sugar substitutes, offering products at competitive prices and offering
consumers coupons. The second goal and objective set is being achieved by Truvia® marketing
its qualities to other food and drink corporations and creating partnerships with those companies.
Truvia® is already being used in diet teas and sodas such as Sprite and Nestea.
The mission statement chosen for Truvia® in this marketing plan is: To be the world
leader in the advancement of stevia crop production – assisting producers across the globe in
continuing to become more efficient – while also creating healthier food products that match
consumer desires and needs. Truvia® marketing goals and objectives are consistent with this
mission statement, because they are oriented around research and creating healthier products that
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Bond – Truvia Strategic Marketing Plan
consumers need and desire. They’re consistent with recent trends in the external environment,
because many tea and soda makers are creating new variations of their popular products that
contain fewer calories without the using potentially harmful chemical sweeteners. The goals and
objectives are also consistent with recent trends in the customer environment, because customers
are also looking for lower calorie foods and drinks that have a lot of flavor without chemical
sweeteners.
Current Marketing Strategy and Performance
Truvia® marketing strategy is to target health and weight-conscience adults, diabetics,
restaurants and food service businesses, and other food and drink manufacturers. This strategy is
encompasses the 4 P’s: Product, Placement, Price, and Promotion. The products come in a
variety of packaging options, such as boxes of single-serving packets, plastic jars and plastic
bags with pour spouts. Truvia® is also being used to make diet drinks, such as Sprite and Nestea.
Regarding the placement of Truvia®; it is sold online at www.Truvia®.com and in most grocery
stores across the United States and in other countries. It’s being introduced into convenient
stores, restaurants and other places that single-serving packets of sugar and sugar substitutes are
found. The price of Truvia® products are very competitive with other sugar substitutes and are
within cents of other name brand products. Truvia® costs $3.34 per 40 count box ($0.08/packet)
and $5.78 per 80 count box ($0.07/packet). Truvia® competitor, Splenda, sells its product for
about $0.05/packet. Truvia® is currently in a new or initial, marketing phase and is in a heavy
promotional phase advertising the uniqueness of its products in magazines, newspapers, on
television and online (www.Truvia®.com, May 1, 2012).
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Bond – Truvia Strategic Marketing Plan
As of May 2011, Truvia® took hold of the number 2 spot for sugar substitutes on the
market, knocking out Sweet-N-Low according to AC Nielsen. Truvia® had 12.8 percent of sales,
behind the number 1 brand, Splenda, which has about 60 percent of the market share
(www.foodproductdesign.com, Virgo Publishing LLC, May 1, 2012). Truvia® sales grew almost
80 percent in 2010, though, and if it can continue to grow at this rate it will surely be head-tohead with Splenda in the near future.
Current and Anticipated Organizational Resources
The current state of Truvia® resources is growing as its market share and sales grow. It is
earning more revenue and gaining more capital, hiring more employees and creating new
partnerships with other companies and suppliers. With an increase in sales, market share and
revenue, Truvia® will invest more into its research and development department and marketing
budget. It is expected that these levels of resources will continue to grow in the short-term future,
because Truvia® is new to the market. Truvia® will be able to leverage additional resources by
working hard to develop its partnerships; and by treating employees better than the average
corporation does by providing outstanding benefits, salaries and opportunities for them.
Current and Anticipated Cultural and Structural Issues
Truvia® currently has a supportive corporate culture, because it is a new and rising
company. Everyone is excited about its possibilities for the future and is embracing new changes.
From a structural standpoint, the company places a high importance on its marketing strategy
and is constantly considering what the future for Truvia® will look like. As a result, Truvia® is
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very customer-oriented and understands how important it is to keep people happy and loyal.
The Customer Environment:
Current and Potential Customers
Truvia® customer demographics include adults 18 years and older, mainly females, and
also other food and drink companies. The psychographics of these customers are those who are
health/weight conscience, diabetics, organic/natural food consumers, and corporations that want
to improve the quality and taste of their products. Truvia® customers can live in a multitude of
locations around the world and Truvia® is currently offered in the U.S.A., Italy, France, Spain,
Mexico and the United Kingdom. The actual purchasers of Truvia® at the grocery store will be
mostly adult women, but the actual users could include anyone that lives in the home of the
purchaser, including children and men.
What Do Customers Do With Truvia® Products and Where Do They Purchase Them?
Truvia® products are the first to finally meet consumers’ desire for a calorie-free
sweetener that won’t potentially cause cancer, or other unhealthy side effects. Truvia® offers
consumers an all-natural, completely safe and healthy choice in the sugar substitute category.
Truvia® is used to sweeten drinks such as coffee or tea, and Truvia® Baking Blend with sugar is
used for baking foods. Truvia® is sold in the baking aisle of stores in boxes of single-serving
packets containing both 40 and 80 counts; in plastic “spoonable” jars; and its newest product,
Truvia® Baking Blend with sugar, is sold in plastic bags with a closable pouring spout. All
Truvia® packages are recyclable. Consumers can purchase Truvia® products online at
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www.Truvia®.com, or at any grocery stores (www.Truvia®.com, May 1, 2012).
Why Do Consumers Purchase Truvia®? Why Not?
Consumers purchase Truvia® because they want a calorie-free sweetener that is allnatural and tastes good. Truvia® is really close in price to other name brand sugar substitutes,
however generic brands of sweeteners are cheaper. Therefore, if price is driving a consumer’s
purchase, then they might chose not to buy Truvia®. But, if they are the type of consumer who
likes to purchase name brand products, the only reason that they would shy away from Truvia®
is if they have a strong loyalty to another brand and are not inclined to change. Truvia® can
convince more consumers to start purchasing Truvia® products by continuing to advertise that
it’s an all-natural sweetener, and that it is healthier and tastes better than other brands.
The External Environment:
Competition
In 2011, Truvia® earned the number two position in the sugar substitute market, making
its biggest competitor the number one brand, Splenda. In 2011, Splenda held 60 percent of the
market share and Truvia® held nearly 13 percent of it (www.foodproductdesign.com, Virgo
Publishing LLC, May 1, 2012). Other competitors include Sweet-N-Low, Equate and various
generic brands. Truvia® has the opportunity to earn the number one position above Splenda
someday by creating stronger brand awareness among consumers. Truvia® is a new brand and
product and many people still do not know it exists, or do not know very much about it. Truvia®
also needs to continue researching and developing new variations of its all-natural sweetener. It
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also needs to remain cost competitive as there are some generic brands starting to sell sweeteners
made from stevia plants.
Economic Growth and Stability
The overall economy in the United States has been in a recession for several years, but is
just beginning to improve. This holds true for most other countries where Truvia® is sold as
well. Obviously this has to hurt the sales of many products, sugar substitutes included. But sugar
substitutes in general are reasonably priced and for some consumers, such as diabetics, are a
necessity for health reasons because they can’t have a lot of sugar. Judging by the fact that
Truvia® and Splenda are the top two market share holders for sugar substitutes, this also shows
that the state of the economy hasn’t been poor enough to drive them into purchasing generic
brands either. Truvia® probably has seen increases in their operating costs, though, that would
require them to re-evaluate some of its processes and expenditures.
Socio Cultural Trends
Over the past few decades, instances of obesity, diabetes, heart disease and cancers
among Americans have risen dramatically. Because of this, more people are looking for healthier
options in their diets and sugar substitutes continue to become more popular. There is also a
stigma among girls, women and most recently, men, that in order to be attractive one must be
thin. This stigma is also driving more people to gravitate towards lower calorie foods and drinks.
Another cultural trend that continues to become more prevalent is a consumer demand for
“organic” and “natural” foods. These social and culture trends are all working to drive up the
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market for sugar substitutes and the consumer demand for organic and natural foods will help
make Truvia® an even stronger competitor. Because Truvia® is made from the stevia plant,
which is grown in other countries – particularly South America –, Truvia® is making social
responsibility a priority. Truvia® wants to help its producers and suppliers to become more
efficient and profitable. This not only ensures a better lifestyle for the people who produce and
supply stevia plants to Truvia®, but it also ensures that Truvia® is getting the best products
possible.
SWOT Analysis:
Strengths
1) Unique, all-natural, and one-of-a-kind product.
2) Large parent corporation (Cargill)
3) Sustainability Program is impacting stevia producers, their communities and the
environment.
4) Highly effective and attuned advertisements and commercials.
Truvia® strengths enable the company to meet customer’s needs by offering them
exactly what they have been searching for – an all-natural, healthy, and calorie-free sweetener –
at a reasonable price. Its strengths are also what set it apart from competitors, because it is the
only all-natural sugar substitute available.
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Bond – Truvia Strategic Marketing Plan
Weaknesses
1) Truvia® is 47 percent behind its top competitor, Splenda, in market share.
2) Has only made a few partnerships with drink manufacturers to use Truvia® in their
products.
3) Struggling to get Truvia® placed in restaurants, convenient stores and food service
businesses.
These weaknesses are holding Truvia® back in terms of brand awareness, and ultimately
are what is causing such a wide gap in the market share between Truvia® and Splenda. With
time and strategic marketing, brand awareness should improve.
Opportunities
1) Currently the #2 brand of sugar substitute on the market.
2) Truvia® can be/is being used in the making of other brand name drinks.
3) All Truvia® manufacturing facilities are part of SEDEX (Supplier Ethical Data
Exchange).
4) Increasing consumer demand for calorie-free, natural sweeteners.
All of these opportunities work to meet customer needs because they offer customers the
high quality, healthy product that they’ve dreamed about for years. And it will be available to
them in many different formats, including in other name brand drinks they currently enjoy.
Consumers will be able to finally feel good about indulging in their favorite snacks without
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having to pay a fortune for them. Each of these opportunities can prove to be beneficial to
Truvia® as a company for both the short term and the long term futures.
Threats
1) Any environmental factor that could affect stevia crops, such as disease, drought and
floods.
2) High increases in input costs, such as fertilizer, delivery & transportation, taxes, etc.
3) Competitors developing similar products.
These threats are related to customer’s needs because they threaten the supply chain and
the price of the product. The last threat would be beneficial to customers, but could hurt Truvia®
financially, because it would have to lower its prices to stay competitive in the market. There
isn’t a true timeline for these threats since it is possible for any of them to occur at any time.
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Bond – Truvia Strategic Marketing Plan
SWOT Matrix
Strengths
1)
Unique, all-natural, and one-of-a-kind
product.
2)
Large parent corporation (Cargill)
3)
Sustainability Program is impacting
stevia producers, their communities and
the environment.
4)
Highly effective and attuned
advertisements and commercials.
Opportunities
1) Currently the #2 brand of sugar
substitute on the market.
2) Truvia® can be/is being used in the
making of other brand name drinks.
3) All Truvia® manufacturing
facilities are part of SEDEX
(Supplier Ethical Data Exchange).
4) Increasing consumer demand for
calorie-free, natural sweeteners.
Weaknesses
1) Truvia® is 47 percent behind its top
competitor, Splenda, in market
share.
2) Has only made a few partnerships
with drink manufacturers to use
Truvia® in their products.
3) Struggling to get Truvia® placed in
restaurants, convenient stores and
food service businesses.
Threats
1) Any environmental factor that
could affect stevia crops, such as
disease, drought and floods.
2) High increases in input costs, such
as fertilizer, delivery &
transportation, taxes, etc.
3) Competitors developing similar
products.
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Bond – Truvia Strategic Marketing Plan
Tactical Marketing Activities
Specific Tactical Activities
Person/Dept
Responsible
Required Budget
Completion Date
Product Activities
Research and
Development,
and Marketing
departments
$200,000
December 31, 2012
Finance and
Marketing
departments
$100,000
Every financial
quarter
Operations and
Supply Chain
Departments
$50,000
Every financial
quarter
Marketing and
Finance
departments
$50,000
Every financial
quarter
1. Develop new product to
introduce, such as vitamin
infused sweetener.
2. Develop new diet drink
with Coca-Cola.
Pricing Activities
1. Decide if Truvia®
should lower or raise its
prices to keep the company
strong.
2. Decide the best price to
offer Truvia® to partners
(drink companies) for.
Distribution/Supply Chain
Activities
1. Review lowest cost
distribution methods;
keeping timeliness in mind.
2. Search for new stevia
suppliers
Promotion Activities
1. Research competitors’
activities.
2. Decide on best coupon
deals that won’t hurt
Truvia® financially.
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Bond – Truvia Strategic Marketing Plan
Marketing Audits
Truvia® marketing activities will be monitored by the Marketing Director, the Board of
Directors and Chief Executive Officer of the company. The finance department will monitor the
overall marketing budget. The marketing audit will track which activities have been
accomplished and whether they were on time or not. It will also reveal what activities are
benefiting the company and if an activity is not benefiting the company any longer, the
marketing team will review it, and then either tweak it or replace it with another activity.
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Bond – Truvia Strategic Marketing Plan
Resources:
www.Truvia.com. Truvia®, LLC. May 1, 2012.
www.foodproductdesign.com. Virgo Publishing LLC. May 1, 2012.