2015 NAMA Student Marketing Competition
Executive Summary
Presented by the University of Guelph CAMA Student Chapter
Matt Cardiff, Scott Coghlin, Celeste Cook, Drew DeBruyn, Mark Groen, Paige Handsor,
Courtney O’Neill, Alanna Pot, Marenda Schipper & Amanda Stewart
Audience Profile:
The University of Guelph CAMA Student Chapter,
Gryphon Consulting Group (GCG), is pleased to present
this detailed marketing plan to the Board of Directors
of the American Berry Corporation (ABC),
a horticulture company specializing in fresh berry
fruit production practices, as they launch their
new product, StrawBabies™.
Introduction
Market Analysis
Industry Trends:
Fast-paced, hectic, constantly on the move – that is our
society. Yet we still need to eat to keep going…
 Strawberries are a staple in almost every home. Ninetyfour percent of American households regularly consume
strawberries4.
Healthy.
 Convenience foods are a high priority to consumers.
Approximately 90 percent of Americans purchase timesaving
foods and agree that reduced time and less preparation effort
are primary reasons for purchasing convenience foods5.
Currently, 71 percent of American consumers base their
food purchasing decisions on health reasons, and 83
percent are trying to eat more fruits than in previous
years1. Packed full of vitamins and antioxidants, berries
are recognized as “super foods” with consumption
projected to increase.
 Health is a driver of consumer demand. USDA research
shows that there has been an increase in consumer focus on
nutrition in selecting foods. Additionally, working-age adults
consumed an average of 118 fewer calories a day in the 20092010 period than four years earlier.6
Handful.
 Berry growers are looking to increase returns on investment.
Input costs for fresh berry producers in the U.S. have been
increasing; as a result, the California Strawberry Commission
has seen a 25 percent loss of growers since 20127.
Consumers see fresh fruit as nutrient rich making it an
easy choice over processed alternatives. Consumers
like raspberries for their bite-sized convenience, but
prefer the taste of strawberries2.
Target Market Profile
Hurry.
The target market for StrawBabies™ is strawberry growers and
consumers in the state of California. California ranks as the top
strawberry production region in the world and is the largest
strawberry-consuming state in the U.S.8.
Growers:
With increasingly busy lives, 90 percent of American
consumers place a higher priority on convenience
foods3. While they like the convenience, they also want
it to be a healthy choice, unlike so-called ‘junk food’.
ABC’s experienced strawberry growers will be located primarily
in the Coastal Valley of Central California, which accounts for
more than 80 percent of total strawberry production in the
state7. In response to increasing input costs, our farmers are
looking to diversify with premium products.
Consumers:
Consumers are looking for value-added products and berry
growers are searching for ways to meet those demands. Yet,
revenue for growers is declining with increasing input costs,
such as crop protection, labor and land resources.
Seventy-Five percent of American
women identify themselves as
the primary shoppers in their
households9. For this reason,
ABC will target middle to upper
class females in California, ideally
with growing families. Generally,
these women value health and
convenience, and understand
the challenges of providing
nutritious and full-flavored foods
for their children. ABC’s target
demographic is willing to pay
a premium price for a product
that will meet their food needs.
It is with all of this in mind that Gryphon Consulting Group
(GCG) presents this marketing plan to American Berry
Corporation (ABC) for StrawBabies™, the ultimate value-added
berry for both consumers and growers. StrawBabies™ is a new
strawberry variety that is bite-sized and bursting with flavor.
Best of all, when picked, these berries effortlessly de-cap while
still maintaining superior freshness. StrawBabies™ is the first
product of its kind, created after years of breeding and research
at the University of Guelph. It is the extensive research that puts
StrawBabies™ years ahead of potential competitors. Developed
by innovative produce specialists, this everbearing miniature
berry will earn growers generous premiums. StrawBabies™ is a
convenient and tasty berry that fits in with the busy lifestyles of
today’s families looking for A Healthy Handful in a Hurry.
GCG’s research indicates
that StrawBabies™ has the
ability to fill unique demand
opportunities on both the
consumer and grower side
of the strawberry market
in California.
International Food Information Council Foundation, 2014
The Produce News, 2012
Journal of Food Distribution Research 38(3), 2007
4
America’s Food, Harvey Blatt, 2011
5
University of Illinois Extension, n.d
6
The Wall Street Journal, 2014
7
California Strawberry Farmers, 2012
8
HortScience, 2013
9
MarketingDaily, 2012
1
2
3
1
Michell
e Brow
n
A g e: 3 8
Locatio
n: Wats
onville, C
Occupa
A
tion: Te
acher, p
A nnual
art-time
h o u se h
blogger
old inco
me: $12
W hat sh
5,000
e loves:
G
oing to
h e r hus
local ev
band an
ents wit
d two ch
food ite
h
ildren, tr
ms, feeli
ying new
n
g
g o o d ab
feeds he
o u t wha
r family.
t sh e
Competitors exist in the market, but none with the combination
of benefits StrawBabies™ provides. The closest direct competitor
to StrawBabies™ is the traditional varieties of strawberries,
however, these do not have the added convenience of being bitesized as well as the enhanced taste. Raspberries, blueberries and
blackberries have a similar convenience factor to StrawBabies™
but cannot compete with the fact that consumers prefer the
taste of strawberries to any other berry10.
 S trawBabies™ are a handpicked, non-GMO, qualityinspected product.
On the grower side, direct competitors are strawberry production
companies that have established contracts with growers.
There are currently 10 large shippers and growers in California,
such as Driscoll Strawberry Associates, Naturipe Farms, and
Well-Pict Inc. There are also eight major growers of bareroot
strawberry plants in California. Although these companies
are distributing a bareroot, they do not have the research and
development to provide the StrawBabies™ variety nor can their
growers make the same margins as ABC’s premium.
 S trawBabies™ are grown by farmers who have
a stable, lawful and effective labor strategy in
place to operate production.
 S trawBabies™ are grown in conditions that are
environmentally sensitive, including efficient irrigation
systems to conserve water, eco-friendly pest
management and soil conservation practices.
 S trawBabies™ are packaged in 100 percent
recycled plastic.
 ABC operates with integrity, honesty and respect
toward our growers, to eliminate unnecessary costs and
enhance distribution to achieve the best possible price.
Key Planning Assumptions
Business Proposition
 Approved by all regulatory agencies
Strategy Statement: In order to achieve sales objectives,
StrawBabies™ will be marketed as the ultimate berry for its
superior taste, increased convenience and ultimately, profits for
the grower.
 All StrawBabies™ range in size from ½-to one-inch diameter
when harvested
 Consumer demand for fresh berries will continue to grow
Product Description
 S trawBabies™ will be managed the same as traditional
dayneutral strawberries, yielding the same pounds per acre
StrawBabies™ are dayneutral, everbearing and bite-sized. The
smaller berry boasts a more concentrated flavor and when
picked, they effortlessly de-cap while still maintaining superior
freshness. This variety can be grown using existing equipment
and the same management practices as traditional strawberry
varieties.
 The berries de-cap easily and have a similar shelf life (five to
seven days) as traditional dayneutral strawberries
STRENGTHS
• I ncreased convenience
to consumers
• C
oncentrated taste and
increased flavor
• G
enerous premium for
growers
• N
on-GMO, hand-picked
and quality inspected
Business Objectives
 Capture 10 percent of Whole Foods Market fresh berry sales
and 0.19 percent of the total strawberry grower market by the
end of Year Three
WEAKNESSES
 Build 90 percent brand recognition in the target market by the
end of Year Three
• Smaller berry size will
increase labor hours
• Priced slightly higher
than typical strawberries
• Seasonal nature of
strawberries
• Perishable inventory
 Achieve 95 percent customer satisfaction while striving for
100 percent each year
California Growers*
Year
OPPORTUNITIES
• P
otential to expand
beyond California Whole
Foods Market® stores
• F
irst berry of its kind on
the market
• W
ide range of potential
customers
THREATS
• S trawberry growers
in California are
experiencing increased
input costs
• Saturated market in
California
• Drought conditions in
California
Lbs Needed to
Supply Whole
Foods Market
Acres
Needed
Bareroots
Sold
Total StrawBabies™
Grower Market
Share
1
1,600,000
22
490,000
0.06%
2
3,200,000
44
970,000
0.12%
3
5,300,000
74
1,600,000
0.19%
*Does not include spoilage
Whole Foods Market*
Year
StrawBabies™
lbs Supplied
Whole Foods Market
Stores Carrying
StrawBabies™
Total StrawBabies™
Consumer
Market Share
3%
1
1,600,000
23
2
3,200,000
47
6%
3
5,300,000
78
10%
*Whole Foods Market has 15% Market Share in California grocery industry
10 Agricultural Marketing Resource Center, 2013
2
Company Ethics
Competitive Analysis
Action Plan
Corporate Social Responsibility:
Product Positioning: StrawBabies™ are a consumer’s “healthy
handful in a hurry.” On that foundation, StrawBabies™ will be
positioned to upper to middle class females with a focus on
“Foodies” and busy moms to be the drivers of initial sales.
On the grower side, they will be aimed at innovative growers
looking to increase their profits and diversify their crops.
StrawBabies™ is approved
to carry the Whole Trade
Guarantee Seal, which
highlights a commitment to
the environment, ethical sourcing and quality products.
In addition, StrawBabies™ will be contributing 10 cents
per package, sold in three months of the year to Whole
Kids Foundation, which promotes healthy eating.
Price: StrawBabies™ bareroot system will get growers started
at a low price of $0.12 per bareroot. ABC will offer a 7 percent
premium earning growers $4,000 more per acre than traditional
strawberries.
Sold to Grower
$0.12/bareroot
ABC gives grower
7% premium for
berries, then sold
to Whole Foods
for $2.50/lb
StrawBabies™ and Mommy-Blogger Days: As part of ABC’s
pitch to growers and consumers, they will host showcases to
display their berries and brand as a whole. Attendees will be
treated to lunch prepared by culinary partners, and enjoy a tour
of the StrawBabies™ fields and facility.
Sold to Consumers
at $6.99/lb
StrawBabies™ Representatives: Agronomists will be provided
by ABC to offer support and advice to StrawBabies™ growers.
Additionally, ABC’s team of Grower Marketing Representatives
will call on
existing and prospective clients to increase market
share as well as being present at grower specific events.
A team of Consumer Marketing Representatives will be
present at all StrawBabies™ events and will be responsible for
reaching consumers. Both Grower and Consumer Marketing
Representatives will work closely with Whole Foods Market
to ensure they are properly informed and supported. An
Operations team will also be employed out of ABC’s distribution
center and in the greenhouse during production of bareroots.
Compared to
Strawberries at $5.99/lb
Raspberries at $10.99/lb
Placement: ABC will center itself in
Year 2
Projected
the Central Coast region, which is
47 Whole
Foods
the largest strawberry growing area
Locations
in California. It is here where ABC
Year 1 23
will have a storage and distribution
center. StrawBabies™ will be available
Year 3
exclusively through Whole Foods Market
78
78 locations in California. Whole Foods
Market is known as a high-end grocery chain,
offering only top quality products to their “Foodie”
consumers and middle to upper class grocery shoppers. ABC
will supply 23 Whole Foods Market locations with StrawBabies™
in Year One, expanding to 47 in Year Two and 78 in Year Three.
Growers Targeted
Consumers Targeted
Grower Marketing Reps
Consumer Marketing Reps
Agronomists
Mommy Blogger Days
Strawbabies™ Days
The Pilot Project: Ten pilot growers in the targeted area will test
StrawBabies™ for one year prior to its launch. These test plots
will be used for educational purposes and to attract potential
growers, media and influencers such as Mommy bloggers and
“Foodies”. The educational tours dubbed “Mommy Blogger
Days” and “StrawBabies™ Days” will create strong consumer
and producer relationships as well as offer product sampling.
Testimonials and data from the tests will help market the product
and point to necessary improvements. StrawBabies™ grown in
the pilot year will be used as Whole Foods Market and community
samples to feature this exciting, “Coming Soon” product.
Year 1
Year 2
Year 3
5
200,000
2
2
1
3
2
10
400,000
4
3
2
4
3
17
670,000
5
5
2
5
3
Promotion:
Grower Promotion: Our StrawBabies™ growers are important
members of our family. In addition to our representatives,
we will seek out new growers through print advertising in the
American Fruit Grower and Fruit Growers News. We will also
purchase association memberships and actively participate
in reputable national and state associations such as the
California Strawberry Commission. The StrawBabies™ booth
will be present at industry trade shows featuring brochures,
promotional giveaways and video testimonials. Notable shows
will be the World Ag Expo and in year one, StrawBabies™ will
aim to be on the World Ag Expo’s Top Ten New Products list.
Packaging: ABC will outsource the packaging material of
StrawBabies™ to Sambrailo Packaging. These green packages
are breathable and 100 percent
recycled plastic. ABC will
utilize their one-pound
containers that growers
currently work with.
StrawBabies™ will be
labelled as non-GMO and
display the Whole Trade
guarantee seal.
Festivals and Consumer Trade Shows: Each year the
StrawBabies™ promotional team will attend regional wine and
food festivals such as the California State Fair, Flavors of Los
Angeles and Savour the Central Coast. ABC will also have a
strong presence at the California Strawberry Festival each year
in Oxnard, California.
3
Website: The website for StrawBabies™ will provide resources
such as educational videos, customer testimonials, grower
profiles, question boards, and links to industry news.
StrawBabies™ social media avenues will be displayed as well as
StrawBabies™ recipes, meal ideas and coupons to promote new
and repeat purchases.
Year 1
Year 2
Year 3
$111,885
$223,770
Sales
Roots Sales
$55,942
Grocery Store Sales
$3,980,091
$7,960,183 $13,266,971
Total Sales
$4,036,034 $8,072,068 $13,490,741
COGS
Social Media: Using Facebook, Twitter, YouTube, Pinterest
and Instagram; ABC will utilize the hashtags #StrawBabies
and #HealthyHandfulHurry as quick links for the latest
StrawBabies™ news feeds, and online advertising. Additionally,
Google Ad Words will be used to attract customers to
StrawBabies™ social media platforms.
Root Development
and Packaging
Grower Premium
$22,377
$44,754
$89,508
$1,538,327
$3,076,654
$5,127,756
Spoilage
$46,150
$92,300
$153,833
Whole Kids
Foundation
$39,801
$79,602
$132,670
$2,389,379 $4,778,759
$7,986,975
Gross Margin
Operating Expenses
Facilities Rental &
Property Expenses
Blogging: ABC will target “Mommy Bloggers,” specifically the
Top 25 Social Mom Bloggers in California, as well as food and chef
bloggers. Coupons and samples will be sent to these bloggers to
increase brand awareness among StrawBabies™ target market.
In-Store Promotions: Working exclusively with Whole Foods
Market, ABC will provide in-store promotional materials such as
posters, flyers, coupons, sampling and demonstrations.
StrawBabies™ Stroller: ABC will lease a red Fiat and use it as
a mobile “StrawBabies™ Stroller” to create a visible presence
at venues such as
public beaches and
local festivities to
create a community
link. This avenue will
also give bloggers
something to “buzz
about” as they see
the little red ”Stroller”
rolling through their
neighborhood.
$375,482
$390,232
$410,982
Fleet Equipment
and Mileage
$61,225
$46,350
$49,150
Salaries (GM,
Admin, Product
Representatives)
$305,500
$366,665
$520,665
Trucking Expenses
$50,000
$55,000
$55,000
Monitoring
and Measuring
(3% of All Sales)
$121,081
$242,162
$404,722
Total Operating
Expenses
$913,288
$1,100,409
$1,440,519
$5,000
$5,000
$5,000
Marketing Expenses
World Ag Expo
Membership
Grower Magazines
$43,040
$50,180
$62,500
Campaign
Development
$600,000
$500,000
$500,000
Salaries (Marketing
Representatives)
$234,000
$299,520
$484,006
Grower and
Consumer
Promotional
Merchandise
$220,000
$260,000
$275,000
Promotional Days
$100,000
$140,000
$160,000
Trade Shows and
Festivals
$210,000
$210,000
$210,000
Website, Social
Media and Online
Advertising
$300,000
$250,000
$250,000
In year one, ABC will invest significantly in marketing
StrawBabies™ to establish a loyal and satisfied customer base.
One of the major marketing expenses will be in public relations.
This will be a key component in closing the gap between
StrawBabies™ representatives, growers and consumers.
Coupons
$350,000
$515,000
$858,000
Samples
$50,000
$78,000
$110,000
$250,000
$300,000
$350,000
Total Marketing
Expenses
$2,362,040 $2,607,700 $3,264,506
Marketing expenses will increase annually to maintain and
expand the grower and consumer base as ABC broadens its
reach throughout the target market. Despite a projected loss in
Year One, Gryphon Consulting Group projects that the effective
marketing tactics presented will ensure StrawBabies™ is a
profitable endeavour by the end of Year Two.
Total Expenses
$3,275,328
Culinary Partnership: ABC will partner with California
Culinary Institutions such as The Culinary Institute of America
and California Culinary Academy to assist in developing
StrawBabies™ recipes, which will be broadcast across various
social media outlets. Such partnerships will also raise the
profile of StrawBabies™ in the active California food scene.
Financial Evaluation
Public Relations
Net Profit/Losses
(Before Taxes)
Profit Margin
Marketing Expense
% Sales
4
$3,708,109 $4,705,025
-$885,949 $1,070,650 $3,281,950
-22%
13%
24%
59%
32%
24%
Monitoring and Measuring
To guarantee the success of StrawBabies™, GCG will evaluate the progress of achieving product and revenue goals. This will be
accomplished through bareroot and StrawBabies™ grocery sales, brand awareness, market penetration and profitability information.
Measurement
Objectives
Methods
Contingency Plan
StrawBabies™ sales to
Whole Foods Market of
$13.5 million and bare root
sales of $200,000
• Monitor Sales Data
• Maintain strong
relationships with Whole
Foods Market and
StrawBabies™ growers
✔ E xpand to new
Brand Awareness
Ensure 90 percent brand
recognition in target market
• Continuous social media
presence
• Host StrawBabies™ Days
• Utilize Google analytics as
well as conduct customer
surveys
✔ E xpand advertising
Market
Penetration
Objectives
Achieve 10% berry market
share in Whole Foods Market
• Allocate sufficient funds
for marketing expenses
✔ Increase our market share
Profit Objectives
Obtain a profit margin of 25%
Sales/Revenues
Objectives
Contingency Plan Legend:
geographical regions
✘ E xpand public relations
and offer more in store
specials
reach, seek new culinary
partners and additional
events to attend
✘ Increase goodwill,
increase StrawBabies™
outreach as well as
forming new partnerships
goals
✘ S eek partnerships with
different grocery outlets
✔ if feedback is positive
✘ if
• Monitor quarterly financial
statements
✔ R einvest profits to
marketing initiatives
and towards financing
expansion plans
✘ R e-evaluate grower
premiums and reduce
input costs
feedback is negative
Conclusion
Gryphon Consulting Group is proud to present American Berry Corporation with this marketing plan for StrawBabies™; the first in their
field, offering superior convenience, quality and taste. These strong marketing tactics will gain the most return on investment
for StrawBabies™ growers and have consumers coming back for more.
Grab StrawBabies™ for a healthy handful in a hurry!
5