sample marketing plan green eggs v2

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Strategic Marketing Plan: Green Eggs - October 2005 of 29

Strategic Marketing Plan:

October 2005

Prepared by: 1 Person ID: 1222937 email: [email protected]

M Person ID: 5262100 email: [email protected]

A Person ID: 5261929 email: [email protected]



Table of Contents

CONTENTS PAGE

Executive Summary 2

1.0 Introduction 4

2.0 Business Definition & Scope 5

2.1 Corporate Overview 52.2 Nature of the Market 5

2.3 Products 62.4 Nature of the Competition 62.5 Customers 7

2.5.1 Business to Business Customers (B2B) 72.5.2 Business to Customer (B2C) 8

2.6 Scope of the Strategic Marketing Plan 8

3.0 Macro Environment Analysis 9

3.1 Political Factors 93.2 Economic Factors 103.3 Socio-Cultural Factors 10

3.4 Technological Factors 103.5 Natural Environment Factors 113.6 Summary of Macro Environment Analysis 11

4.0 Industry Analysis 12

4.1 Market Industry Review 124.2 Competitive Review 13

4.2.1 Threats of New Entrants/Exits 134.2.2 Bargaining Power of Buyers 134.2.3 Pressure from Substitutes 134.2.4 Category Capacity 13

4.2.5 Current Category Rivalry 134.2.6 Distribution Channels 14

4.3 Customers 144.4 Business to Business (B2B) Customer Buying Behaviour 154.5 Business to Customer (B2C) Buying Behaviour 154.6 Summary – Industry Analysis 164.7 Sales 164.8 Seasonality 184.9 Profits 18



5.0 TOWS Analysis 19

6.0 Marketing-Related

Critical Success Factors 20 6.1 Critical Success Factors 206.2 Problems & Opportunities Statement 20

7.0 Marketing Objectives 21

7.1 Mission Statement 217.2 Corporate Financial Objectives 217.3 Marketing Objectives 21

8.0 Marketing Mix Strategies 22 8.1 Target Market Selection & Segments 228.2 Product Strategy 228.3 Pricing Strategy 23

8.3.1 B2C Pricing Strategy 23

8.3.2 B2B Pricing Strategy 24

8.4 Distribution Strategy 248.5 Integrated Marketing Communication (IMC) Strategy 24

9.0 Budget 25 9.1 Marketing Budget 259.2 Gross Profit Margins 259.3 Monthly Budget Break Down 269.4 Marketing & Advertising Schedule– 2006 26

10.0 Implementation 27

10.1 Implementation Plan 2710.2 GANTT Chart – Marketing Activities, 2006 Calendar Year 27

11.0 Evaluation & Control 28

Bibliography & Reference List 29



Strategic Marketing Plan: Green Eggs - October 2005 Page 2 of 29

Executive Summary

(i) Context

“Green Eggs” is a niche free-range egg-producing business conceived by Shelley and AlanGreen of Pine Ridge farm. They have been producing free range eggs for five years; however the GreenEggs brand has only been established for three years. The Greens purchased Pine Ridge, located at thefoothills of the Grampians in Ararat, Victoria, in 1984. The Greens now wish to achieve their marketinggoals of growing the business and adding value to their free range eggs. Their vision also entailsmanaging an environmentally and economically sustainable farming enterprise on their property.

(ii) Marketing Problem

The purpose of this Strategic Marketing Plan is to assess both the internal organisationalcapabilities, as well as external environmental factors that are likely to impact on the Greens free rangeegg business currently, and in the future. Green Eggs’ marketing problem is essentially the ability to sell

value-added eggs profitably. They also want to be able to provide a product offering that is unique,differentiated, and superior in the market, thus providing a competitive advantage for their business.Their problem at present is that their brand is relatively unknown in the market, and they don’t have awide-spread distribution network in place to grow their business.

(iii) General Industry Information

The broader Australian egg industry (comprising caged eggs, barn-laid eggs, and free range) is ata mature stage, with moderate profits, and virtually no growth has been experienced in the market inrecent times. The Free range egg industry, however, is at a growth stage, and representative of 20% ofthe total industry. The authors have identified trends such as the increase in consumer popularity forOmega 3, vegetarian, and organic eggs. Free range eggs are proving to be increasingly popular withenvironmentally conscious and health-concerned consumers, and those who enjoy premium quality eggs.Price-sensitivity is not as prevalent within this industry compared to the caged-egg industry.

Consequently the purchase decision appears to be less price related and more life-style related.

(iv) Free Range Egg Industry

This niche industry is becoming more concentrated with several large free-range egg producersoccupying this segment. A substantial number of market players are located in regional Victoria, NewSouth Wales and Queensland (Eastern seaboard states). Green Eggs are one of the largest in theirindustry, and their main competitors identified are Pace Farms and Country Range Farming. Two maincustomer categories have been identified: Business to Business (B2B) customers, and Business toCustomer or end users (B2C). B2B consists of food manufacturers and wholesalers and distributors.B2C comprises direct farm-gate sales, farmer’s markets, and sales to local restaurants and cafés.

(v) Strategic Marketing Objectives

Measurable, realistic Marketing Objectives have been developed to provide Green Eggs with adirection forward. Some of these objectives include: “Sustain and improve existing gross profit marginsthrough the generation of new business in profitable markets”, “Add value through differentiation ofexisting product range and future products introduced,” “Increase sales by 25% for the 12 months 2005-2006 from $856,207 to $1,070,259 through employment of a sales manager.” These objectives havebeen tied in with Green Eggs corporate level financial objectives.




(vi) Marketing Strategies

Based on the objectives defined, Marketing strategies have been devised for the two broadergroups (B2B and B2C), with emphasis placed on the development of new markets, through establishing anetwork of distributors Australia-wide. Part of this strategy entails employing a sales manager to focus oncreating, managing and controlling this network of distributors. Again with careful consideration of thecorporate level objectives, the authors have ascertained a 25% sales increase will also increase profitmargins for Green Eggs. It is important for Green Eggs to have an identity in their local community, sosales through the farmer’s markets and farm gate direct sales will be important for their profile. This

below-the-line marketing increases brand identity with the end consumer, and is also quite a profitablesegment for Green Eggs. However, a balance needs to be achieved through maintaining high profitlevels, and also ensuring distributors within the territory are not disadvantaged. The Marketing Budgetallocated is 2% of sales turnover, or $17,124 per annum. The promotional mix comprises theimprovement of their website, participation in two trade shows, as well as direct marketing campaigns.

(vii) Implementation, Evaluation & Control

Responsibilities have been assigned to specific members of the Green Eggs business. Thesetasks need to be completed within the specified timelines to ensure a smooth, timely implementationprocess. Regular evaluation and monitoring of the components of the marketing plan will be important, toensure effectiveness and efficiencies are gained within the business and the plan integrates into their

business structure. Proceeding implementation, regular reviews will be an integral part of the evaluation,primarily to ensure the plan is still relevant and continues to “fit” into their business.




1.0 Introduction

“Green Eggs” is a niche free-range egg-producing business conceived by Shelley and AlanGreen of Pine Ridge farm. Free Range eggs have been produced on the farm for the last five years, andthe Green Eggs trading name has been established for 3 years. The Greens purchased Pine Ridge,

located at the foothills of the Grampians in Ararat, Victoria, in 1984. The company initially focused onsheep farming on the property. Considerable time and resources were poured into improving the rundown, dilapidated condition of the farm, and after working to a Whole Farm Plan, the Greens managed toaddress some of the main problems with the farm and improve it considerably.

Following significant evaluation, planning and capital improvement, the grazing and woolproduction of the business continued to increase whilst the quality of the land, plant and equipment wasgradually improved to a high standard. The decision was made that further diversification was required tomake the farm large enough for the owners to work full time on the property, which until now had notbeen possible. It was identified at this stage that an opportunity existed to enter the market for free-rangeegg production.

Being very “time-poor” and of farming and midwifery backgrounds, the Greens require a strategic

plan to help them achieve their marketing goals of growing the business and adding value to their freerange eggs. Their vision also entails managing an environmentally and economically sustainable farmingenterprise on their property.

The purpose of this Strategic Marketing Plan is to assess both the internal organisationalcapabilities, as well as external environmental factors that are likely to impact on Greens free range eggbusiness currently, and in the future. Based on these capabilities, the authors will then determine thedegree of importance each identified factor bears, and present a functional, strategic assessment of theorganisation in the context of the wider market and ascertain how Green Eggs can continue to growprofitably and add value to their product offerings in the marketplace.

Limitations of the marketing plan include geographic restrictions, as the farm is located in regionalVictoria, so the authors will be required to assess the farm based on direct feedback from the client, aswell as secondary data sources.




2.0 Business Definition & Scope

2.1 Corporate Overview

The Green Eggs niche product offering was a decision by the Greens to diversify their business,

profitably, whilst contributing a substantial revenue stream toward sustaining their property. Free rangeeggs have been produced on the farm for the last five years. These eggs adhere to stringent regulatorystandards, such as the Poultry Code of Practice on Animal Welfare, and the Poultry Industry Code ofPractice on Egg production. They have also undertaken a National Egg Quality Assurance (QA) programwhich covers all aspects of animal welfare and egg production. Shelley and Alan Green are dedicated tohumane and environmentally friendly methods of egg production, and focus on maintaining their Hazard

Analysis Critical Control Point (HACCP) Plan. They now wish to develop a marketing-orientation for theirGreen Eggs business, and establish a way to value-add their eggs. Green Eggs’ catch-cry is: ”Green Eggsare graded and delivered to you within 48 hours of being laid – you can’t get fresher than that!”

2.2 Nature of the Market

The Free Range egg market is a niche market segment, which seems to be growing at a steady

rate. However, the broader egg-producing market is reportedly at a mature stage (IBIS World, 2005, p.7).IBIS World’s poultry report released in 2005 indicates the egg industry as a whole accounted for $326.0million in revenue during 2003-2004. Industry comprised around 455 establishments that employed acombined workforce numbering approximately 3,000 persons (IBIS World, 2005, p.5). A possibleexplanation for the slowing of growth in the egg industry is suggested by IBIS as follows:

1. Evidence of new product innovation.

2. Low or declining growth in value added.3. Ongoing refinement in production technology.

The author places importance on point two above; herein is where the opportunity lies for free-rangemarket nichers. The primarily goal of niche marketers should be to hold market share for its market niche(Reed (2003, p. 104). For Green Eggs, this entails becoming the leader in their free range market segment,

and consequently first preference by wholesalers as well as end-users in this market. Demand for this typeof egg is typically driven by consumers (end-users). With an increased emphasis on Quality Assurance, anddiscussions of new labeling laws for organic and free range eggs, there is an opportunity for free range eggproducers to profitably “service” this niche segment and deliver high-quality free-range eggs to consumers.Exhibits 1 & 2 below indicate the market split between free range and other types of eggs produced, as wellas consumption per capita.

Product/Services Share

Eggs produced by battery chickens 70.00%

Eggs produced by free range chickens20.00%

Eggs produced by barn (deep litter) chickens10.00%

TOTAL 100%

Exhibit 1: Egg Products in the Market

(Source: IBIS World Report, p.6 2005).




Reported Consumption of Eggs & Egg Products

0

50

100

150

200

250

1 9 9 5

- 9 6

1 9 9 6

- 9 7

1 9 9 7

- 9 8

1 9 9 8

- 9 9

1 9 9 9

- 2 0 0

0

2 0 0 0

- 0 1

2 0 0 1

- 0 2

2 0 0 2

- 0 3

2 0 0 3

- 0 4

Year

U n i t s C o n s u

m e d

UNITS

UNITS /CAPITA

2.3 Products

Green Eggs product range comprises:

1. Small, under-sized eggs (less than 50g)2. Normal sized eggs (60g -80g)3. Large, over-sized eggs (80g+)

Their products can be classified as business products: A product used to manufacture other goods orservices, to facilitate an organisation’s operations or to resell to other consumers., and consumerproducts: Product bought to satisfy an individual’s personal wants (Reed, 2003, p.160).

2.4 Nature of the Competition

The authors note this niche market segment is becoming more concentrated with several largefree-range egg producers occupying this segment. A substantial number of market players are located inregional Victoria, New South Wales and Queensland (Eastern seaboard states). Green Eggs are one of thelargest in their industry, next to Pace Farms who are the largest and Country Range Farming. CountryRange Farming are a proactive Free Range egg company, and frequently appear in industry-related newsarticles and stories; renowned for their excellence in maintaining “happy hens”. It would appear CountryRange Farming (highlighted in purple below) would be Green Eggs’ main competition. Pace Farms are amulti-national company, producing barn-laid, caged eggs and free-range eggs. They would also be strongcompetitors to Green Eggs. Moore Brown Eggs and Country Style Egg producers are much smallerproducers, but still are direct competitors to Green Eggs. Many of the farms listed below are also accreditedby the Free Range Farmer’s Association, and consequently their packaging carries this endorsement label.

Some are also certified organic. There are numerous players in the broader caged-egg market, and for thepurpose of this marketing plan just the six major players who occupy the majority of this segment have beenpresented below in Exhibit 4. As market leaders in the broader egg industry, it is important to note thesecompanies also.

Exhibit 2: Reported Consumption of EggProducts in Australia

(Source: Adapted from IBIS World Report, p.6 2005).




Exhibit 4: Caged-Egg Competitors

(Source: IBIS World, 2005).

2.5 Customers

During her visit to Swinburne University, Shelley Green identified her customer base as fallinginto two distinct groups. These are:

Business to Business (B2B) Business to Customer (B2C).

2.5.1 Business to Business Customers (B2B)

The wholesalers within their B2B segment, to whom Green Eggs sell their eggs unbranded,sell their eggs in the market under a name owned by the wholesaler rather than the GreenEggs name. This also includes any eggs sold to food manufacturers to be made into othertypes of food stuff i.e. packet cake or muffin mix.

Ardmona FreeRan e Poultr

Hens in Clover

Free Ranger F R

E s

Marslyn F R Eggs Windy Hill F R

E s

NATIONAL FREE-RANGE EGG COMPETITORS:

Donnybrook F RE s

Free As A Bird F RE s

Colisa Farm F RE s

Golden Yolk F RE s

Rutherford Bros FR E s

Bartter Enterprises

AUSTRALIAN MAJOR MARKET PLAYERS:CAGED EGG COMPETITORS

Cordina Chicken Farms

Inghams Enterprises

Parkwood Eggs Pty Ltd

Nova Foods Limited Pace Farm Pty Ltd

Moore Brown Eggs Country RangeFarmin

Alumuna CertifiedOr anic Free

Exhibit 3: National Free Range EggCompetitors

(Source: Free Range Farmer’s Association,2005).

Ardmona FreeRan e Poultr

Dream of Eden

Country Style EggProducers

Modra’s Eggs

Free Range EggPro ect

Pace Farm




2.5.2 Business to Customer (B2C)

The B2C segment consists of three main customer types. These are: Direct Sales - Eggs purchased directly at the farm gate Direct sales to consumers at Farmer’s Markets (usually once a month) Direct sales to Local restaurants and Café’s are also part of the business to customer

group.

This segment represents approximately 12% of the sales and around 33% of the profit. As theproduct being sold in this market segment is branded with the Green Eggs name, it is an excellent brandbuilding exercise. However, volume sales and concentrated market-penetration will be achieved throughtheir B2B customers. Section 8.1 discusses the target market in detail.

2.6 Scope of the Strategic Marketing Plan

The Strategic Marketing Plan will predominantly focus on the next twelve month’s activities;however the plan will also address the marketing activities in the context of corporate level objectives, forthe subsequent three years.




3.0 Macro Environment Analysis

There are five major macro (external) environment forces that will impact on an organisation orstrategic business unit (SBU). These are: Political/Legal, Economic, Socio-Cultural, Technological andthe Natural Environment (Reed, 2003, pp. 57-68). These factors can be ranked according to the levels ofsignificance each factor bears on the business, as well as a rating of probability of occurrence.

Rating Scale of Significance

Exhibit 6: 5-Point Rating Scale: Level of Significance

(Source: Adapted from Reed, 2003, p 56).

Rating Scale of Probability of Occurrence

Exhibit 7: 5-Point Rating Scale: Probability of Occurrence

(Source: Adapted from Reed, 2003, p 56).

3.1 Political Factors

There are a number of legislative regulations and process that will have a direct impact on GreenEggs’ business. There is a huge amount of movement in the area of Food Safety laws, with the mediaregularly reporting food poisonings, salmonella outbreaks, and exposing establishments who don’t

comply with Food Safety laws.

Food Safety Traceability Standards:

Victorian Food Safety laws are particularly tough on food service businesses, with theGovernment currently training new inspectors to visit food outlets – including retail as well as productionfacilities. A recent outbreak of food poisonings, resulting in deaths, has gained momentum in the mediaand those operating in this sector must ensure their compliance to rigid HACCP (Hazard Analysis CriticalControl Point) Food Safety standards. New South Wales Food Safety laws are also quite tough, butVictoria leads the way and laws passed in this state are being observed, with interest, by the other states.South Australia will be enforcing new Food Safety laws toward the end of 2006, where all premisesclassified as Class 1 will have to comply to HACCP laws like Victoria. (Class 1 refers to Hospital Foodpremises, Aged Care premises & Child Care establishments). Restaurants will also be classified underClass 1 in some states.

Implications:

Eggs that are not transported and stored at correct temperatures, can shorten the shelf-life of thegoods, and consequently contaminated products may be consumed by the end-user. Suppliers ofperishable goods, such as eggs, must be HACCP accredited and achieve 100% compliance during foodsafety inspections. Non-compliance and a serious food poisoning or salmonella outbreak could see legalaction taken against the company.

Level of Significance: 5 Probability of Occurrence: 3

1 = Not very 2 = Reasonably 3 = Significant 4 = Quite to highly 5 = Extremely Significant Significant Significant Significant

1 = Not likely to 2 = Possibility 3 = Likely to 4 = Highly likely 5 = Extremely likely Occur of Occurrence Occur to Occur to Occur




3.2 Economic Factors

Overall Egg Industry Decline:

A year of growth is predicted for 2006, with experts holding that egg production will continue togrow over the next year. A substantial reduction in feed prices will also assist poultry farmers. However,in the incidence of drought and poor weather conditions, industry will slow and the overall industry growthwill decline.

Implications:

If the industry overall does in fact decline, free range egg farmers will also experience thiseconomical downfall. Particularly with free range hens exposed to weather conditions and moresusceptible to disease, these factors could prove to be an enormous hindrance to the Green Eggsbusiness.


3.3 Socio-Cultural Factors

Socio-cultural factors such as changing social values and lifestyles of consumers may affect thedemand for the Green Eggs product.

Changes in Consumer Preferences

IBIS World reports that changing lifestyles may have an impact on consumer preferences foreggs (whether free range or caged). As eggs were once a traditional part of Australian breakfast, thesedays people have busier lifestyles and have less time to prepare a cooked breakfast (IBIS World, 2005,p.6). However, on the flipside, people are eating out more often, and this can often encompass eating“brunch”, a combination of breakfast and lunch that often includes bacon and eggs. So the absence ofcooked breakfasts at home can be possibly “balanced out” by the increase in people frequentingrestaurants.

Implications:

The author doesn’t rate this factor as being serious, and significance level has been rated as1 = not very significant. Also there has been an increase in business travel, and most hotels commonlyserve cooked breakfasts encompassing eggs, plus people are tending to buy more convenience-orientedfoods, such as pastas and noodles, all of which contain eggs.


3.4 Technological Factors

In today’s turbulent external environment, technological developments and innovations candrastically improve an organisation’s operations, and bring enormous benefits to business in terms of

creating new efficiencies and streamlined processes.

Advancements in Production Equipment

Green Eggs have a leading edge over other free range market nichers, with their implementationof the new Australian-designed “Eco-Shelter”, as well as the “Free Range Harvester” – another Australian

–designed product. A government grant of $93,000 was received for this technology. Being the first inthe industry to adopt these new technologies, Green Eggs are in an enviable position in the market.However, with any new technology, the product soon moves from being unique to becoming an industrystandard, and new technology can quickly becomes obsolete. There is also an opportunity to bar-code




the product, for food traceability purposes. This is being used in the beef industry, and it would be anopportunity to be first to embrace this technology in the egg industry.

Implications:

The threat to the business will be if other free range egg producers also adopt the newtechnology and hence introduce the same efficiencies within their businesses as Green Eggs. Then theirpoint of difference will become an industry standard, and not unique to their business. Their challengewill to continue their improved levels of production, and sustain a competitive advantage (i.e. focus ontaking away competitors’ market share).


3.5 Natural Environment Factors

All primary producers are governed significantly by the environment. Factors such as extreme climatechanges can have detrimental implications.

Extreme climate changes:

These changes range from drought and famine to floods and hurricanes. Areas affected vary in eachoccasion, and as such the implications for these primary producers vary.

Implications:

The repercussions of these can result in feed shortages, reduced chicken production and thus supply ofchickens to Green Eggs. Consequently this will result in fewer eggs produced. The probability ofoccurrence is relatively high as climate fluctuations are becoming increasingly common, the impact ofwhich can be diluted depending on the severity, location and range.


3.6 Summary of Macro Environment Analysis

Implication: Level of Significance Probability of Occurrence

Political:Food Traceability Standards

5 3

Economic:Overall Egg Industry Decline

4 3

Socio-Cultural: Changes inConsumer Preferences

1 2

Technological: Advancements inProduction Equipment

5 4

Natural Environment Factors:

Extreme Climate Changes

2 4




Exhibit 8: Egg Industry ProductLife Cycle (PLC)

(Source: Adapted from Reed,2005, p.90).

4.0 Industry Analysis

4.1 Market Industry Review

Looking at the Egg Industry Product Life Cycle (PLC) model below, the broader caged eggindustry has reached a mature stage of the PLC, whereas the organic and free-range egg industries areyoung in comparative terms and can be classified as being in a growth phase. The authors note free-range eggs together with other niche egg segments, like vegetarian or omega 3 eggs are becomingincreasingly popular with consumers. There is an opportunity for Green Eggs to extend the life of theiregg product offering in future, with the introduction of certified organic eggs, hence the label in the life-cycle extension phase.

Introduction Growth Maturity Decline or extension

FREE RANGEEGGS

ORGANIC EGGS

Life-cycle extensCERTIFIED

ORGANIC EGGSCAGED EGGS




4.2 Competitive Review

Porter’s Five Forces Modeldepicts the forces that drive industrycompetition in a dynamic businessenvironment. The factors containedin this model have been outlinedbelow.

4.2.1 Threats of NewEntrants/Exits

The 70% of the market notcurrently adhering to ‘organic’ eggproduction could use their sizeableresources to make a significantimpression on this category.Without even a legal definition ofwhat actually constitutes “free range”, there is an enormous threat for existing “genuine” free range eggproducers to profitably maintain their market share, with little or no regulation restricting the entrance ofnew players into the market.

4.2.2 Bargaining Power of Buyers

Producers operating within the Primary Industries sector are very much reliant on cost-effectivesupplies of raw materials. The livelihood of their business depends greatly on the costs of these materials(i.e. feed prices, packaging), in order to sell their product at a price that covers these costs and providesthe necessary profit margins to survive long-term. Their ability to remain price-competitive in the marketis governed by the prices they can obtain from their suppliers.

4.2.3 Pressure from Substitutes

Since de-regulation of the Australian egg industry in 1994, there has been hot debate of thecontentious issue of egg labeling. As noted above in 4.2.1, at present there isn’t actually a “legal”definition of what actually constitutes “free range”. Consequently, industry experts suggest the number ofcaged eggs being passed off as free range eggs could constitute as much as half of the eggs sold withinthe Australian marketplace (Thomas, H., 2005, p.7).

4.2.4 Category Capacity

According to IBIS World, (2005, p.6) the five year period preceding June 2004 saw the marketremain fairly stagnant. However the free range egg industry is experiencing growth, and consequentlythere are many companies operating in this industry. With people enjoying eating out socially more andmore, and consumers becoming health and lifestyle conscious, the category is likely to continue growingfor some time.

4.2.5 Current Category Rivalry

The major caged egg competitors have been listed in section two. However, Green Eggs don’tcompete directly with these players. Their primary competition stems from rival free range and organicegg producers. These major players have also been highlighted in Section two, Exhibit 3.

Exhibit 9: Porter’s FiveForces Model

(Source: Reed, 2003, p.62).




4.2.6 Distribution Channels

Green Eggs currently distribute direct to the customer, or through a distributor or foodmanufacturer. The distribution channels to market have been outlined below:

Green Eggs must review their existing distribution intensity, and potential to increase this intensity

as they have only lightly penetrated the market. Utilising their latest government grant for $93,000 fortheir eco-shelter, their capacity to house their poultry effectively, and automatically collect eggs with thenew egg-collecting system, the Greens should certainly be in a position to provide large volumes ofproduct to the market. An opportunity exists for Green Eggs to become more commercially-oriented withinthe free range egg industry, by setting up a network of distributors across Australia at key locations.

This could prove to be a huge strategic step forward, and lead the business into a new growthstage. The authors suggest Green Eggs employ a Sales Manager to roll out this plan, and manage,evaluate and control these distributors. They may even consider exclusive distribution within keyterritories, and work closely with the distributor in each state to build their business. This has beendiscussed in more detail within the Distribution Strategy section.

4.3 Customers

Green Eggs’ customer base has been classified under the two broad headings of B2B and B2Cgroups. Within the B2C analysis, buyer behaviour of the end consumer has been analysed, which willprovide an insight into the reasoning behind the customer’s purchase decision. To become more market-oriented, it is important for Green Eggs to have sufficient knowledge of their end-user customerbehaviours and attitudes, as well as an understanding of the motives behind their customer’s purchasedecisions (Reed, 2003, p.65).

A simple chart below has been supplied that essentially addresses the 5 W’s of customers, namely: Who,Where, What, When and Why within the context of the purchase decision.

4.4 Business to Business (B2B) Customer Buying Behaviour

Green Eggs Customer

Green Eggs Distributor Customer

FoodManufacturer

Customer

B2C

B2B




CRITERIA DISTRIBUTOR FOOD MANUFACTURER

Who is involved in thebuying? Proprietor, Purchasing Officer

Quality Assurance Manager,Business Development Manager,Purchasing Officer. Individually orcollectively involved in the purchasedecision.

Where do they buy? Place orders for egg products directlywith Shelley and Alan Green at GreenEggs. They don’t purchase throughintermediaries.

Place orders for egg products directlywith Shelley and Alan Green atGreen Eggs. They don’t purchasethrough intermediaries.

What do they buy? Bulk eggs unbranded. Either packed indozens (more for the distributor) or 15dozen outers

Undersized eggs

Why do they buy? Want a quality branded free range eggproduct to take to market.

Want to make the eggs into otherfood products

When do they buy? Purchases are frequent as thesecustomers are regularly turning stock.Purchases approximately 3 times week

Regular purchases also – at leastthree times per week.

4.5 Business to Customer (B2C) Buying Behaviour

CRITERIA: FARM GATE SALES &FARMER’S MARKETS

LOCAL BUSINESSES – CAFÉS &RESTAURANTS

Who is involved in thebuying?

The person who does the shoppingor the person who intends to offerthe eggs for consumption to familyand friends.

Local business purchasing is usuallyconducted by the manager or owner of theoutlet, or the Head Chef in the case of acafé or restaurant.

Where do they buy? The consumer will purchase theproduct either from the farmersmarket stalls, directly from the farmgate or via the local produce store,café, supermarket or delicatessen.

The local business will purchase fromGreen Eggs direct.

What do they buy? Purchase eggs branded with the

Green Eggs label. Usually in smaller quantities. All the members of this channel

buy in dozens or half dozens.

Occasionally some local business cafes etc

will bulk-buy in 15 dozen cartons.

Why do they buy? The decision to purchase for thischannel is usually attributed to afeeling or belief

Purchase Decision based oncriteria such as health ratedissues.

Consumers make the decisionbased on concerns for thetreatment of the birds producingthe eggs, and also what they are

fed. Personal preference based onlifestyle and cultural upbringing is akey influencing factor in thedecision process.

Image of their restaurant and café – like toencourage lifestyle-conscious patrons, alsopremium image

Like to support the community support forlocal producers of products

When do they buy? The end consumer will purchase atleast once a week.

Weekly

4.6 Summary – Industry Analysis




Market Industry Review Organic Eggs – trend Omega 3 Eggs –trend

Vegetarian Eggs –trend

Overall industry –reached maturestage. FreeRange Eggs –Growth stage

Main Competitors Country Range

Farming

Pace Farms Country Style Egg

Producers

Moore Brown

EggsCustomers Farmer’s Markets Wholesalers Local Businesses

(Cafés &Restaurants

Manufacturers

Distribution Channels Direct to Customer To Customer viaDistributor

To customer viaFood Manufacturer

4.7 Sales

Budgeted sales are estimated to occur with a reasonable amount of consistency over the courseof the 2005-2006 year, based on current financial year sales. Anticipated peak sales occur in August with44,816 dozen, October 43,153 dozen and December 42,896 dozen. June is projected to have the lowestsales with 19,326 dozen sold. For the purposes of this marketing plan, we are making the assumption

that sales of free range eggs for the egg farming industry are reflective of the sales of the Green Eggsproduct. The following graphs below depicts the egg sales produced by the three sheds, then currentegg sales (dollar sales) as well as projected egg sales. Please also refer to Appendix 1.

Egg Sales x Shed

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

J ul y

A u g u s t

S e p t em b er

O c t o b er

N ov em b er

D e c em b er

J an u ar y

F e b r u ar y

M ar ch

A pr i l

M a y

J un e

Month

$ S

a l e s

( D o z )

Shed 1

Shed 2

Shed 3

Exhibit 10: Unit Egg Sales x Shed

Source: Adapted from financial data provided by S. Green




Current Egg $ Sales x Month

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

J ul y

A u g u s t

S e p t em b er

O c t o b er

N ov em b er

D e c em b er

J an u ar y

F e b r u ar y

M ar ch

A pr i l

M a y

J un e

Month

$ S a l e s

4.8 Seasonality

Exhibit 11: Current Monthly Egg Sales


Projected Egg Sales x Month (Year 2)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

J ul yA u g u s t

S e p t em b er

O c t o b er

N ov em b er

D e c em b er

J an u ar y

F e b r u ar y

M ar ch

A pr i l

M a y

J un e

Month

$ S a l e s

Exhibit 12: Projected Monthly Egg Sales





Egg sales do not seem to be a particularly seasonal market. Sales occur consistently during eachof the four seasons. Peaks appear in sales charts throughout the year and the two lowest months forsales are January and June, which are 5 months apart. It therefore appears that no correlation existsbetween seasonality and product sales. January is often a quite month for sales across many industries,as it is an annual holiday period. June can also be quiet with firms preoccupied with end of financial yearactivities.

4.9 Profits

Profits in the egg farming industry are moderate. Sales of eggs direct to market for businessessimilar to Green Eggs can be very profitable although they do incur added costs like staffing andpackaging; most eggs sold direct from the farm gate are packaged in dozens therefore lifting packagingcosts. Without the ‘middle’ man all of the profit from these sales go back directly to the farm. Whilst salesvia a wholesaler are much more significant in size, they also provide economies of scale in terms ofdistribution, where packaging costs can be amortized, to a degree, by the higher volumes of stockproduced utilising the same resources and overhead costs. As wholesalers generally take stock in 15dozen outers and provide more efficient turnover of stock. The authors have calculated Green Eggs’current profit margins (which appear to be at an acceptable level for their industry) based on their fixedand variable costs, as well as sales income. There is an opportunity to increase their Gross Profit

through increasing sales by establishing new markets and creating a mix of business through differentchannels. (Please refer to Appendices 2 , 3 & 4).




5.0 TOWS Analysis: Threats & Opportunities, Weaknesses& Strengths

STRENGTHS WEAKNESSES

OPPORTUNITIESTHREATS

Eggs delivered to customer within 48 Hours Adhere to Poultry Industry Code on Animal Welfare Adhere to Poultry Industry Code on Egg Production Undertaken a National Egg Quality Assurance

program Eco Shelter - Australian product, Green Eggs the first

to adopt this new technology and received $93K

government grant. Free Range Harvester - Australian product, Green

Eggs the first to adopt this new technology. Hasincreased production levels. Was given governmentgrant of $93,000 for this technology.

Production figures have reportedly exceeded those ofcaged birds, which would allow for greater pricecompetitiveness

Lacking market presence Lacking network of wholesaler customers around

Australia Customer base limited to Farmers Markets and one

major wholesaler. (Shouldn’t have all your eggs in onebasket!!)

Need to become listed with more industry associations

to build the marketing communications Lack of differentiation in the marketplace – packagingfor free range eggs needs to be quite different fromcaged eggs

Become certified organic Set up a distribution network of wholesale customers

across Australia at key locations, thus channeling highvolumes of eggs through centralized customer base

Participate in more industry events to build andstrengthen the brand image of Green Eggs – i.e. apull-through marketing approach, that is, instill ademand for the product in the end-users who willcreate a demand the product from further up the chain.

Sub-category of large eggs and small eggs can beniche-marketed to specific customers

Differentiate packaging for standard eggs, as well as

unique packaging for the large and under-sized eggsto appeal to these niche segments Utilize technology temperature recording devices to

prove the eggs are stored, carried and delivered topremium standards (as opposed to relying ontraditional HACCP hand-written documents which canbe disputed).

Provide training and support to their distributor network – an opportunity exists to “out-service” theircompetitors.

Bar-code product for food traceability purposes.Currently being conducted in the beef and fishindustries; opportunity to be the first in the market toadopt this new technology.

Free-Range Farmers who are also certified organic Disease, weather conditions Competition from traditional cage-egg producers Growth in barn-laid egg producing market segment Demand exceeding supply – cash flow may become

a hindrance, as well as keeping up with productionlevels.

Administrative procedures – as the business grows,systems and procedures must be firmly in place, orGreen Eggs will be playing continual “catch up.”

Working in the business, and no time to work on thebusiness.

Food poisoning – Strict Victorian Food Safetystandards don’t allow any opportunity fornegligence. Green Eggs must ensure accountabilityfrom other parties in the chain. i.e. transportcompanies, wholesalers, freight-forwarders etc.Food poisoning and outbreaks from the restaurantwill always fall back on the weakest link (i.e.whoever doesn’t have technology or systems inplace to prove their part in the process wasmaintained in accordance to the standards will loseout).

Drought Significant drop in prices from caged-eggs, would

drive free-range prices down also Overseas Exporters of organic and free range eggs

Exhibit 13: TOWS Analysis Table

(Source: Adapted from Reed, 2003, p.25




6.0 Marketing-Related Critical Success Factors

6.1 Critical Success Factors

6.2 Problems & Opportunities Statement

X = Green Eggs have the capability to achieve the CSF

* = Green Eggs will require assistance to achieve the CSF

CSF: RATIONALE:

1. Differentiate Product Offering Green Eggs’ brand has to be marketed as a uniqueoffering, and not become a “me too” type product.

SWOT analysis identified ways to achieve this maybe to create unique packaging.

Management of Green Eggs may want to investigatethis more deeply

Conduct a consumer feedback study locally - theirfarmer’s markets would be an ideal situation.

2. Increase production capacity Through utilising their state of the art technologyand ensure it’s running close to full capacity. Themore units produced, the more units that can besold.

3. Market share to be Increased Target new Market Segments to grow the business

4. Profitability Maintain profitability levels through containingoverheads (fixed costs) proportionate to salesgrowth.

5. Brand awareness Very low levels exist within the industry. With thenew sales manager to assist, and through thedevelopment of a targeted marketing strategy.

6. Economies of Scale Opportunities to contain or reduce production coststhrough maximizing their technology.

7. Quality Assurance Maintain their HACCP plan, ensure storage anddelivery of goods by partners in their supply chaincontinues to adhere to their QA program.

CSF CapabilityYes/No

Green Eggs’ Organisational Capabilities

1. Differentiate Product OfferingX S.Green has identified their large and undersized eggs could

have potential within niche market segments.2. Increase production capacity

X Land resources are available. S. Green stated they have theland resources to “build additional sheds”

3. Market share to be Increased*

The author suggests the assistance of an experienced SalesManager will be required to move the business to the nextstage.

4. Profitability*

Currently profitable business – have the capacity to maintainand increase with assistance.

5. Brand awareness*

New sales manager will focus on driving distributors, and alsobe involved with marketing support activities.

6. Economies of ScaleX Will be achieved through overall growth.

7. Quality AssuranceX

Currently have sound QA and HACCP system in place.




7.0 Marketing Objectives

7.1 Mission Statement

The authors suggest the following mission statement for Green Eggs succinctly defines their core business

and underpins their corporate values:

“Dedicated, knowledgeable people committed to providing quality free-range eggs to the Australian market

within 48 hours of production, whilst adhering to the highest possible standards in the industry. We are

proud of our premium quality, free range eggs!!”

7.2 Corporate Financial Objectives

Objective: Current Year 1 Year 2 Year 3

Revenue Objectives $856,207 $1,070,259 $1,337,823 $1,672,279

Gross profit margin $ $227,557 $247,810 $360,622 $501,636

Gross profit margin % 26.6% 23.2% 27.0% 30.0%

7.3 Marketing Objectives

1. Sustain and improve existing gross profit margins through the generation of new business inprofitable markets, whilst utilising existing resources and keeping overhead costs to a minimum.

2. Increase brand awareness in free range egg market through allocating 2% of annual sale resourcesinto advertising and promotions. Develop the marketing mix to effectively promote the Green Eggs

brand.

3. Add Value Through Differentiation of existing product range and future products introduced, createdistinct packaging, and enhance overall Green Eggs brand image. Unique Larger carton system couldbe implemented for the large egg range.

4. Increase sales by 25% for the 12 months 2005-2006 from $856,207 to $1,070,259 throughemployment of sales manager.

5. Establish the position of Sales Manager in the next financial year and fill the position with a dynamiccandidate who is capable of generating new sales, managing distribution channels and forwardplanning.

6. Change Consumer Egg Consumption Behaviour in regard to methods of consumption. Establisheggs as a preferred snack food, not just a commodity product. Add point of sale recipe cards into eggcartons.

Exhibit 14: Green Eggs Financial Objectives Table Source: Adapted from financial data provided by

S. Green




8.0 Marketing Mix Strategies

8.1 Target Market Selection & Segments

Green Eggs’ market segments have been classified into two major groups: B2B and B2C. Thegeneral B2C category can be broken down into four separate segments, and each market has beensegmented according to lifestyle, demographic and socioeconomic characteristics. These customershave also been segmented based on benefits, such as health conscious (or lifestyle conscious), andquality seeking (Reed, 2003, p.128).

î Lifestyle Conscious o Enjoy eating healthily o Want to eat fresh, naturally produced foods o Enjoy eggs as part of a Sunday “all day” relaxed breakfast.

î Working Professionals o “Yuppies” who enjoy eating out and breakfast is a social occasion.o Will pay premium for high quality, free range eggs.o Eggs benedict and hollandaise eggs are popular meals with this

group.o Appears to be trendy to enjoy all day breakfasts with this group

too. o Frequent patrons of boutique and café style outlets who serve free

range eggs î Environmentally Concerned

Nature Lovers

o Concerned about the natural preservation of the environment o Importance placed on best practice and sustainable

environments.o Quite often purchase free range eggs at markets as well as their

local supermarket. î Concerned for Animal Welfare o Concerned for the welfare of the birds

o Dedicated to the humane treatment of all animals o Careful about what products they purchase depending on the

rearing and treatment of the animals.o Buy eggs from farm gate or markets

There is also an opportunity to service the Medical/Pharmaceutical Research market segment, asthis segment uses eggs to carry out laboratory testing and culture-growing. This could be an excellentoutlet for Green Eggs undersized eggs.

The B2B target market, including the wholesalers and distributors, are seeking a value for moneyproduct that is fresh, high quality, and will be delivered to them with as much shelf-life of the productpreserved as possible as they are on-selling the product. Segmentation of this market will largely bebased on geographic location, as the distributor network will on-sell the Green Eggs’ product and willrequire service and support in each location. Food manufacturers are generally concerned with thepremium quality of the eggs, as these eggs go into other food stuff items and must adhere to their highstandards. Complete QA validation and evidence of HACCP compliance throughout the supply chain isimperative.

8.2 Product Strategy

When a company is considering product strategies, they need to consider factors such asmodifications that may be required to existing products, or what new products may need to be added totheir portfolio (Reed, 2003, p.136).Throughout this marketing plan so far, the authors have discussed thelack of market presence and brand awareness of the Green Eggs brand. Within the TOWS analysisconducted, an opportunity exists to differentiate packaging for their standard eggs, as well as specialpackaging for their large and under-sized eggs to appeal to these niche segments.




The authors suggest two simple, straight-forward strategies that tie in with the strategic marketingobjectives (highlighted in yellow in the below matrix):

1. Market Penetration strategy: the aim is to increase market share for the Green Eggs existingproducts.

2. Market Development strategy: Develop new markets (with existing products). Expand throughdistributor network in each state.

8.3 Pricing Strategy

Pricing needs to be reviewed at least quarterly, as competitor activity and market trends are

external variables that will impact upon their business. Decisions on whether to increase prices should bebased on information obtained through a comprehensive market review.

This review should:

Analyse the market trends Assess competitors Review economic data Assess outside influences Review internal profits and capabilities Assess cost increases likely to be incurred throughout the supply chain

8.3.1 B2C Pricing Strategy

Current average price per dozen is $3.40. (Green Eggs brand). The authors suggest a 10 centincrease to assist bottom line profit margin. Also, consumers of free range eggs value the taste andfreshness of the product highly and as such are willing to pay a premium for the high quality. Green Eggshave positioned their prices lower than their competitors, and research conducted by the authors revealedretail (supermarket) pricing for dozen packs of free range eggs selling for as much as $6.83 (Pace Farmorganic EcoEggs 12pk – Coles Box Hill. Appendix 6 ). Standard being Coles free range eggs at $4.69, soin fact by lifting the prices, this may assist in creating a high-quality, premium perception in the mind ofthe consumer.

E X I S T I N G

Market Penetration New ProductDevelopment

N E W Market Development Diversification

EXISTING NEW

Exhibit 15: Ansoff Product-Market Matrix

(Source: Adapted from Reed, 2003, p.103)

PRODUCTS

M A

R K E T S




8.3.2 B2B Pricing Strategy

Sell to wholesalers for $2.00 per dozen (10c increase), sell to manufacturing industry for 60c/ kg(20c increase). To achieve the corporate financial objectives of 25% sales growth and increase in profit,the authors suggest an incentive scheme for their wholesale customers. This has been delineated in thetable below.

Incentive Scheme

Volume (doz) Price ($ per doz)

0-150,000 $2.10

150,001 - 250,000 $1.95

2500,001 - 350,000 $1.80

350,001+ by negotiation

8.4 Distribution Strategy

The distribution strategy comprises the use of distributors, who will on-sell the product to themarket, which will quickly assist Green Eggs product to infiltrate the market. A more selective distributionstrategy will be employed, where Green Eggs will work with key (perhaps exclusive) distributors inlocations around Australia. Necessary customer service support will also need to be considered whensetting up the national distributor network. The new sales manager would ultimately handle this, as wellas focus on relationship development and support for the new distributors. As an integral part of thedistribution strategy is the necessity to maximise their state-of the art resources, and increase productionwith their range harvester and eco-shelter. Bar-coding food traceability technology was identified in the

TOWS analysis – this is the way of the future for primary industry producers, where large multinationalsupermarkets and food manufacturers want to trace the food from the “farm to the fork.”

8.5 Integrated Marketing Communication (IMC) Strategy

It is important for Green Eggs to have an identity in their local community. Sales via the farmermarkets and farm gate direct are not only very profitable, but build the Green Eggs brand and generatemuch-needed awareness. However, these sales should be developed with a very low key approach asthe sales through this segment do not want to conflict with local business sales or retailers who stock thebrand and have purchased from the distributor. This is more sales for tourists and passing trade, althoughthey also help keep the Green Eggs company image strong within the local community, which isimportant in their industry. The IMC strategy will target the end user audiences (identified in 8.1), as wellas participation in trade shows to support the intermediaries (B2B customers). These activities will

ultimately be implemented to stimulate purchasing across all target audiences.




9.0 Budget

9.1 Marketing Budget

The Marketing Budget for a larger organisation is usually allocated to marketing based on 3-4%

of sales turnover. The authors have taken a more conservative approach to establishing a marketingbudget for Green Eggs, due to the fact that little no marketing or advertising expenditure has taken placein the past (around $600 per annum). In order for these strategies to be successful, it will be important tohave a combination of complimentary activities occurring simultaneously, to derive as much benefit aspossible.

For example, with the Melbourne 2006 Fine Food trade show event as a suggested marketing activity,customers will search the internet before and after the event to find out more about the exhibitors.Therefore the improvements to Green Eggs website will need to commence long before this deadline.

Green Eggs current sales for financial year 04/05: $856,207

Year 1 Objective: $1,070,259Year 2 Objective: $1,337,823Year 3 Objective: $1,672,279

9.2 Gross Profit Margins

Gross profit margin for current year: $227,557

Year 1 Objective: $247,810Year 2 Objective: $360,622Year 3 Objective: $501,636

Green Eggs Gross Profit $

$501,636

$360,622

$227,557$247,810

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Current Year 1 Year 2 Year 3

Year

$ P r o f i t

Gross Profit

* Refer to Appendix 5 for more information.

Exhibit 16: Green Eggs’ Gross Profit

Source: Calculated from the financial data providedby S. Green




9.3 Monthly Budget Break Down

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL

75,073 94,265 74,093 90,790 70,937 90,253 54,629 66,456 70,690 69,514 58,516 40,991 856,207

Mktg Budget

1,501 1,885 1,482 1,816 1,419 1,805 1,093 1,329 1,414 1,390 1,170 820 17,124

Marketing Budget = 2% of sales, or $17,124 per annum (current year).

9.4 Marketing & Advertising Schedule– 2006

Tool Description When Cost of Production $ TotalCosts

Website

Development

Tidy up and enhance existing site,

correct functionalities and errors, addextra information (e.g. media releasesand articles, images of the property),improve search engine listings

Commenc

e Jan-06Ongoing

4,000 $4000

Direct MailCampaign

Mail out to wholesalers and restaurantsacross Australia

Jan, April,Jul, Oct

$400 per batch of 200 $2000

Trade Show:Melbourne FineFood

The major hospitality and catering showin the Southern Hemisphere. Featuresmultinationals as well as localproducers. An excellent way to attractnew customers and distributors

Sep-06 Stand $4500 $8,000includin

gdisplay,

samples

Trade Show:Regional Foodand Produce

Shows

An excellent way to attract customersand distributors

Feb-06 Stand $2500 $3,500including display,

samples TOTAL

$17,100




10 .0 Implementation

10.1 Implementation Plan

What Description When Details

WebsiteDevelopment

Tidy up and enhance existingsite, correct functionalities anderrors, add extra information(e.g. media releases and articles,images of the property), improvesearch engine listings

Commence Jan-06 Ongoing S.G to find a web designer orweb consultant

Direct MailCampaign

Mail out to wholesalers andrestaurants across Australia

Jan, April, Jul, Oct S.G/Sales Manager

Trade Show:Melbourne FineFood

The major hospitality andcatering show in the SouthernHemisphere. Featuresmultinationals as well as localproducers. An excellent way toattract new customers anddistributors

Sep-06 S.G./A.G/Sales Manager

Trade Show:Regional Food andProduce Shows

An excellent way to attractcustomers and distributors

Feb-06 S.G./A.G/Sales Manager

10.2 GANTT Chart – Marketing Activities, 2006 Calendar Year

Jan 2006 Dec 2006

TASK JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECWebsite Development

Direct Mail Campaign

Trade Show: Melbourne Fine Food

Trade Show: Regional Food & Produce

= Shelley/Alan Greenand Green Eggs’Employees

= External Consultant




10.0 Evaluation & Control

The authors have supplied a marketing control system to assist Green Eggs with the Evaluationand Control of their Strategic Marketing Plan, following implementation of the actual plan:

Benchmarking – identificationof an appropriate standard

Measurement of Performance

Evaluation of Performance

Corrective Action

Comparative: Current marketshare Current and potential sales levels. Quality levels

Measure market share – ascertain whyincreases, or decreases, occur

Profit Margins Sales Growth – current versus potential Achievement of customer satisfaction Production capacity proportionate to sales

turnover. i.e. supply meeting demand. Wastage

minimal/avoided. Manage growth of overall business

Performance will be measured according toefficiencies and effectiveness gained within theorganisation.

Return on Investment (ROI) must be achieved,relative to marketing expenditure.

Changes in the external environment, such as

Adaptive Control System: Continuous monitoring of the external

environment versus internal capabilities. i.e.review pricing, review staffing , production,administration, distribution channels. Essentiallyall areas outlined in the marketing plan.

Exhibit 17: Flow Chart – The Process of Evaluation & Control

(Source: Adapted from Reed, 2003 p.268).




Bibliography & Reference List:

Books:

1. Reed, P., 2003, Strategic Marketing Planning, Thomson, Victoria, Australia.

2. Gilligan, 2003, Strategic Marketing Planning, Butterworth-Heinemann, Oxford, United Kingdom.

Online References:

3. IBIS World, 2005, Poultry Farming (Eggs) in Australia) Report No. A0142Website reference: http://www.ibisworld.com.au Date Accessed: August 2005

4. Komis, N., 2002, Egg Labeling Requirements , Australian Egg Corporation Limited, North Sydney,Victoria, Australia.Website reference: http://www.aecl.org Date Accessed: August 2005

5. The Age, 2005, The Egg Files, taken from Australian Egg Corporation Limited, North Sydney,Victoria, Australia.Website reference:http://www.theage.com.au/news/Epicure/The-eggfiles/2005/05/16/1116095890873.html Date Accessed: August 2005

6. Free Range Farmers Association Incorporated, 2003, Egg Production, Labertouche, Victoria, Australia.Website reference: http://www.freerangefarmers.com.au Date Accessed: August 2005

7. Victorian Farmers Federation, 2005, Production Systems, Melbourne, Victoria, Australia.Website reference: http://www.vff.org.au Date Accessed: September 2005

Radio:

8. Thomas, H., 2005, The Free Range Fiddle, ABC Radio National transcript.(Website reference: http://www.abc.net.au/rn/talks/bbing/stories/s1397934 )Date Accessed: September 2005



APPENDIX 1 Green Eggs Sales

Unit Sales x Location- Current

Location JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

Shed 1 4,649.00 7,217.00 5,846.00 7,260.00 5,603.00 5,832.00 7,155.00 5,360.00 5,119.00 4,925.00 5,770.00 4,463.00

Shed 2 13,664.00 16,359.00 12,334.00 14,693.00 11,123.00 15,616.00 0.00 12,054.00 14,889.00 15,232.00 18,781.00 14,679.00

Shed 3 17,320.00 21,240.00 16,984.00 21,200.00 16,928.00 21,448.00 18,696.00 14,096.00 13,528.00 12,816.00 3,160.00 184.00

Sub total 35,633.00 44,816.00 35,164.00 43,153.00 33,654.00 42,896.00 25,851.00 31,510.00 33,536.00 32,973.00 27,711.00 19,326.00

Projected Unit Increase (Year 1) Projected Unit Increase (Year 2)

CurrentUnit Sales

Increase25%

New TTLinclIncrease

YR 2 UnitSales

Increase25%

YR 2 TTLinclIncrease

Shed 1 69,199.00 13,839.80 83,038.80 Shed 1 83,038.80 16,607.76 99,646.56

Shed 2 159,424.00 31,884.80 191,308.80 Shed 2 191,308.80 38,261.76 229,570.56

Shed 3 177,600.00 35,520.00 213,120.00 Shed 3 213,120.00 42,624.00 255,744.00

TOTAL SALES 406,223.00 81,244.60 487,467.60 TOTAL SA 487,467.60 97,493.52 584,961.12

Projected Sales Increase (Year 3)

YR 3 Unit S Increase 25inclIncrease

Shed 1 99,646.56 19,929.31 119,575.87

Shed 2 229,570.56 45,914.11 275,484.67

Shed 3 255,744.00 51,148.80 306,892.80

TOTAL SALES 584,961.12 116,992.22 701,953.34

Dollar Sales x Month - Current

CURRENT25%Increase -

25%Increase - Yr

25%Increase -

July 75,073 93,841 117,302 146,627August 94,265 117,831 147,289 184,111

September 74,093 92,616 115,770 144,713

October 90,790 113,488 141,859 177,324

November 70,937 88,671 110,839 138,549

December 90,253 112,816 141,020 176,275

January 54,629 68,286 85,358 106,697

February 66,456 83,070 103,838 129,797

March 70,690 88,363 110,453 138,066

April 69,514 86,893 108,616 135,770

May 58,516 73,145 91,431 114,289

June 40,991 51,239 64,048 80,061

TOTAL 856,207 1,070,259 1,337,823 1,672,279



APPENDIX 2 Green Eggs Financials = new scenario YR 1

Year 1

July August September October November December January February March April May June TOTAL

NCOME

Opening Stock 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 210,000

Shed 1 Dozens 4,649 7,217 5,846 7,260 5,603 5,832 7,155 5,360 5,119 4,925 5,770 4,463 69,199

Shed 2 Dozens 13,664 16,359 12,334 14,693 11,123 15,616 0 12,054 14,889 15,232 18,781 14,679 159,424

Shed 3 Dozens 17,320 21,240 16,984 21,200 16,928 21,448 18,696 14,096 13,528 12,816 3,160 184 177,600

Total Dozens 35,633 44,816 35,164 43,153 33,654 42,896 25,851 31,510 33,536 32,973 27,711 19,326 406,223

W/sale sales 34,733 43,916 34,264 42,253 32,754 41,996 24,951 30,610 32,636 32,073 26,811 18,426 395,423

$$$$$$$$ 72,592

Private Sales 900 900 900 900 900 900 900 900 900 900 900 900 10,800$$$$$$$ 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 34,020

Meringues 600 600 600 600 600 600 600 600 600 600 600 600 7,200Current Total Income 75,073 94,265 74,093 90,790 70,937 90,253 54,629 66,456 70,690 69,514 58,516 40,991 856,207Total Income with 25% Incr 93,841 117,831 92,616 113,488 88,671 112,816 68,286 83,070 88,363 86,893 73,145 51,239 1,070,259

COST OF SALES

Birds Cost 9,750 9,751 9,752 9,753 9,754 9,755 9,756 9,757 9,758 9,759 9,760 9,761 117,066

Feed 22,344 22,344 22,344 22,344 22,344 13,406 22,344 22,344 22,344 22,344 12,130 22,344 248,976

Packaging 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000

Wages 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 99,168

Freight 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

TOTAL VARIABLE COSTS 42,858 42,859 42,860 42,861 42,862 33,925 42,864 42,865 42,866 42,867 32,654 42,869 495,210

NEW VARIABLE COSTS - WITH 25% Incr 53,573 53,574 53,575 53,576 53,578 42,406 53,580 53,581 53,583 53,584 40,818 53,586 619,013

Accountant 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400

Advertising 50 50 50 50 50 50 50 50 50 50 50 50 600

Bank Charges 20 20 20 20 20 20 20 20 20 20 20 20 240

Contract Work

Captial Works

General Expenses 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Motor Vehicle MB 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Office Supplies 150 150 150 150 150 150 150 150 150 150 150 150 1,800

Phone 300 300 300 300 300 300 300 300 300 300 300 300 3,600

Power 300 300 300 300 300 300 300 300 300 300 300 300 3,600

Rent to P.R.P 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

R&M 300 300 300 300 300 300 300 300 300 300 300 300 3,600

Training and Education 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Travel & Ent 400 400 400 400 400 400 400 400 400 400 400 400 4,800

nterest 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000



CURRENT TOTAL FIXED COSTS 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 133,440 New costs - (Sales Person) $50K +super+car 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 69,996

New Fixed Costs TOTAL - WITH 25% Increase in cos 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 203,436

CURRENT TOTAL : FIXED & VARIABLE COSTS 628,650

NEW TOTAL: FIXED & VARIABLE COSTS 70,526 70,527 70,528 70,529 70,531 59,359 70,533 70,534 70,536 70,537 57,771 70,539 822,449

Profit & Loss Current PROFIT: $227,557 Gross Margin: 26.6%

Increase sales by 25% (variable costs PROFIT: $247,810 Gross Margin: 23.2%

guestimate to increase by approx 25% also)




Year 2


INCOME

Opening Stock 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 21

Shed 1 Dozens 4,649 7,217 5,846 7,260 5,603 5,832 7,155 5,360 5,119 4,925 5,770 4,463 6

Shed 2 Dozens 13,664 16,359 12,334 14,693 11,123 15,616 0 12,054 14,889 15,232 18,781 14,679 15

Shed 3 Dozens 17,320 21,240 16,984 21,200 16,928 21,448 18,696 14,096 13,528 12,816 3,160 184 17

Total Dozens 35,633 44,816 35,164 43,153 33,654 42,896 25,851 31,510 33,536 32,973 27,711 19,326 40

W/sale sales 34,733 43,916 34,264 42,253 32,754 41,996 24,951 30,610 32,636 32,073 26,811 18,426 39

$$$$$$$$ 72,592

Private Sales 900 900 900 900 900 900 900 900 900 900 900 900 1

$$$$$$$ 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 3

Meringues 600 600 600 600 600 600 600 600 600 600 600 600

Current Total Income 75,073 94,265 74,093 90,790 70,937 90,253 54,629 66,456 70,690 69,514 58,516 40,991 85Total Income with 25% Incr 93,841 117,831 92,616 113,488 88,671 112,816 68,286 83,070 88,363 86,893 73,145 51,239 1,07Total Income YR 2with 25% Incr 117,302 147,289 115,770 141,859 110,839 141,020 85,358 103,838 110,453 108,616 91,431 64,048 1,33

COST OF SALES

Birds Cost 9,750 9,751 9,752 9,753 9,754 9,755 9,756 9,757 9,758 9,759 9,760 9,761 11

Feed 22,344 22,344 22,344 22,344 22,344 13,406 22,344 22,344 22,344 22,344 12,130 22,344 24

Packaging 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1

Wages 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 9

Freight 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1

TOTAL VARIABLE COSTS 42,858 42,859 42,860 42,861 42,862 33,925 42,864 42,865 42,866 42,867 32,654 42,869 49

NEW VARIABLE COSTS - WITH 25% Incr 53,573 53,574 53,575 53,576 53,578 42,406 53,580 53,581 53,583 53,584 40,818 53,586 61

NEW VARIABLE COSTS - YR 2 WITH 25% Incr 66,966 66,967 66,969 66,970 66,972 53,008 66,975 66,977 66,978 66,980 51,022 66,983 77

Accountant 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1

Advertising 50 50 50 50 50 50 50 50 50 50 50 50

Bank Charges 20 20 20 20 20 20 20 20 20 20 20 20

Contract Work

Captial Works

General Expenses 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2

Motor Vehicle MB 200 200 200 200 200 200 200 200 200 200 200 200

Office Supplies 150 150 150 150 150 150 150 150 150 150 150 150

Phone 300 300 300 300 300 300 300 300 300 300 300 300

Power 300 300 300 300 300 300 300 300 300 300 300 300

Rent to P.R.P 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3

R&M 300 300 300 300 300 300 300 300 300 300 300 300

Training and Education 200 200 200 200 200 200 200 200 200 200 200 200

Travel & Ent 400 400 400 400 400 400 400 400 400 400 400 400



Interest 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3

CURRENT TOTAL FIXED COSTS 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 13New costs - (Sales Person) $50K +super+car 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 6

New Fixed Costs TOTAL - WITH 25% Increase in cos 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 20

CURRENT TOTAL : FIXED & VARIABLE COSTS 62NEW TOTAL: FIXED & VARIABLE COSTS 83,919 83,920 83,922 83,923 83,925 69,961 83,928 83,930 83,931 83,933 67,975 83,936 97

Profit & Loss

YR 2 PROFIT: $360,622 Gross Margin: 27.0%



APPENDIX 5 Green Eggs Gross Profit

Year Gross Profit $Current $227,557

Year 1 $247,810

Year 2 $360,622

Year 3 $501,636

Year Gross Profit %Current 26.6%

Year 1 23.2%

Year 2 27.0%

Year 3 30.0%

Green Eggs Gross Profit $

$501,636

$360,622

$227,557$247,810

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000


Year

$ P r o f i t

Gross Profit

Green Eggs Gross Profit %

30.0%27.0%26.6% 23.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%35.0%


Year

$ P r o f i t

Gross Profit %




Year 3


INCOME

Opening Stock 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 21

Shed 1 Dozens 4,649 7,217 5,846 7,260 5,603 5,832 7,155 5,360 5,119 4,925 5,770 4,463 6

Shed 2 Dozens 13,664 16,359 12,334 14,693 11,123 15,616 0 12,054 14,889 15,232 18,781 14,679 15

Shed 3 Dozens 17,320 21,240 16,984 21,200 16,928 21,448 18,696 14,096 13,528 12,816 3,160 184 17

Total Dozens 35,633 44,816 35,164 43,153 33,654 42,896 25,851 31,510 33,536 32,973 27,711 19,326 40

W/sale sales 34,733 43,916 34,264 42,253 32,754 41,996 24,951 30,610 32,636 32,073 26,811 18,426 39

$$$$$$$$ 72,592

Private Sales 900 900 900 900 900 900 900 900 900 900 900 900 1

$$$$$$$ 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 3

Meringues 600 600 600 600 600 600 600 600 600 600 600 600

Current Total Income 75,073 94,265 74,093 90,790 70,937 90,253 54,629 66,456 70,690 69,514 58,516 40,991 85Total Income with 25% Incr 324,978 117,831 92,616 113,488 88,671 112,816 68,286 83,070 88,363 86,893 73,145 51,239 1,07Total Income YR 2 with 25% Incr 406,223 147,289 115,770 141,859 110,839 141,020 85,358 103,838 110,453 108,616 91,431 64,048 1,33Total Income YR 3 with 25% Incr 507,779 184,111 144,713 177,324 138,549 176,275 106,697 129,797 138,066 135,770 114,289 80,061 1,67

COST OF SALES

Birds Cost 9,750 9,751 9,752 9,753 9,754 9,755 9,756 9,757 9,758 9,759 9,760 9,761 11

Feed 22,344 22,344 22,344 22,344 22,344 13,406 22,344 22,344 22,344 22,344 12,130 22,344 24

Packaging 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1

Wages 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 8,264 9

Freight 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1

TOTAL VARIABLE COSTS 42,858 42,859 42,860 42,861 42,862 33,925 42,864 42,865 42,866 42,867 32,654 42,869 49

NEW VARIABLE COSTS - WITH 25% Incr 53,573 53,574 53,575 53,576 53,578 42,406 53,580 53,581 53,583 53,584 40,818 53,586 61



Accountant 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1

Advertising 50 50 50 50 50 50 50 50 50 50 50 50

Bank Charges 20 20 20 20 20 20 20 20 20 20 20 20

Contract Work

Captial Works

General Expenses 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2

Motor Vehicle MB 200 200 200 200 200 200 200 200 200 200 200 200

Office Supplies 150 150 150 150 150 150 150 150 150 150 150 150

Phone 300 300 300 300 300 300 300 300 300 300 300 300

Power 300 300 300 300 300 300 300 300 300 300 300 300

Rent to P.R.P 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3

R&M 300 300 300 300 300 300 300 300 300 300 300 300



Training and Education 200 200 200 200 200 200 200 200 200 200 200 200

Travel & Ent 400 400 400 400 400 400 400 400 400 400 400 400

Interest 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3

CURRENT TOTAL FIXED COSTS 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 11,120 13New costs - (Sales Person) $50K +super+car 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 6

New Fixed Costs TOTAL - WITH 25% Increase in cos 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 16,953 20

CURRENT TOTAL : FIXED & VARIABLE COSTS 62NEW TOTAL: FIXED & V ARIABLE COSTS 100,660 100,662 100,664 100,666 100,668 83,213 100,672 100,674 100,676 100,678 80,730 100,682 1,17

Profit & Loss

YR 3 PROFIT: $501,636 Gross Margin: 30.0%



Appendix 6



Appendix 6 – page 2

sample marketing plan green eggs v2

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