Chapter 12 · PDF fileLove story - Andy Williams with.mp4 © 2014 by McGraw-Hill...

Chapter 12

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

指導老師：林建信教授

學生：003 張次郎

004 張瑞釗

106.3.21 008 黃秀勤

Love story - Andy Williams with.mp4








Source: John Mullins, The New Business Road Test: What Entrepreneurs and Executives Should Do Before Writing a Business Plan (London: FT/Prentice

Hall, 2010).

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• Flahavan & Sons is an old, well-established company in Ireland.

• Flahavan’s is Ireland’s oldest family-owned food company

• Flahavan’s is the leading brand of porridge in Ireland, with more than 50 percent of the total market.

• The plan is short, focused, and action oriented.



2013 Marketing Plan Flahavan’s

This plan is purely an example. The data, people and strategies discussed in this plan are all illustrative.

Kyle Malley, Patricia O’Connor, and Seamus Hanlon October 15, 2012

Dublin, Ireland



Agenda

1. Executive Summary

2. State of the Business

3. Goals/Objectives

4. Strategic Initiatives

5. Tactics

6. Financial Implications

7. Risks and Contingencies

8. Milestones

9. Summary


This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 4-5

• Flahavan’s has delivered strong results, with 2012 profits up +8%, due to robust category growth and a modest price increase

• Flahavan’s has two goals for 2013: increase profit by +9% and maintain share of the porridge category at 62.1%

• The 2013 marketing plan is focused on three big initiatives

– Continue to drive category growth by promoting health benefits – Launch quick oats portable cups to address growing need for convenience and build margins – Evaluate new snacking line and expansion into U.S. market

• The primary risk facing the business is that product costs may increase more than expected. If this occurs we will increase list prices to maintain

argins



Agenda



3. Goals/Objectives


5. Tactics



8. Milestones

9. Summary



• Vision: We will be the leader in Oat-Based Products

• Positioning:

To busy, active women in Ireland, Flahavan’s is the brand of breakfast

food that is most nutritious because Flahavan’s is natural and high in

fiber and has a low glycaemic index

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• The Flahavan’s business is performing well across all measures

– 2012 sales volume will be up by +4% with revenues up +6%

– Profits will finish the year up +8%

– Volume share will be up +0.8 points to 62.1%

• Strong results are due to category growth, a price increase, and reduced

competitive activity

– The porridge category is forecast to grow by +3% this year due to an

increased focus on nutrition among consumers

– Our +2.5% list price increase contributed to revenue and profit growth and

allowed us to increase advertising by +11%

– O’Briens, our key competitor, followed our price increase and reduced

marketing spending in an apparent bid to boost short-term profits



• The porridge category has grown by an average of +4% in volume over the last five years. This growth has been the primary profit driver for our business

• However, there is evidence that category growth is beginning to slow

Irish Porridge Category Volume Change • Maintaining category growth is critical for continued profit growth in the

business

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2009 +6% 2010 +6% 2011 +4% 2012 Forecast +3% 2012 1Half +4% 2012 2Half Forecast +1%



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3. Goals/Objectives


5. Tactics



8. Milestones

9. Summary

Agenda



• 2013 Objectives

1. Increase profits by +9% 2. Maintain market share at 62.1%

Flahavan’s Results

Profit Change Share 2010 +2% 60.8% 2011 +4% 61.3% 2012 Forecast +8% 62.1% 2013 Objective +9% 62.1%

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3. Goals/Objectives


5. Tactics



8. Milestones

9. Summary

Agenda



Strategic Initiatives

1. Continue to drive category growth by promoting health benefits

2. Launch quick oats portable cups to address growing need

for convenience and build margins

3. Evaluate new snacking line and expansion into U.S. market

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• There is an opportunity to further grow the category

– Only 48% of households currently serve porridge

– Porridge makes up only 41% of breakfasts in households that serve porridge

• Health is the main opportunity for driving additional category growth

– Health concerns are increasing

– There is limited awareness of the health benefits of porridg

% of Irish Women 2007 2008 2009 2010 Concerned about Health 42% 48% 47% 52% Aware of Health Benefit of Porridge 31% 38% 39% 41%

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• Convenience is a significant issue in the category

– The #1 reason people do not eat porridge in the morning is nvenience, convenience or lack of time

– Convenience will likely become more important for our consumers going forward due to increases in dual-income households

• Quick oats portable cups addresses convenience need

– Portable cups product is simple to prepare: just add hot water

– Concept received strong concept and product test scores

– 61% of consumers agreed the product was more convenient

• Margins on quick oats cups are higher than our traditional progress oatlets 1kg pack

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• Our business is currently reliant on one category. Slowing category growth or increased competition will impact overall growth rates

• Snacking is a compelling growth opportunity

– Huge and growing market – A logical extension for our business – A good fit for our health positioning

• The U.S. market warrants consideration

– An enormous opportunity: over $1 billion in revenue – A growing market – Lots of potential: similar-sized companies have been able to launch successful niche products

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3. Goals/Objectives


5. Tactics



8. Milestones

9. Summary



• Advertising has proven to be effective at growing the category

– The category grows significantly faster when we advertise

• PR is a major opportunity to expand awareness of health benefits

– 2012 efforts have generated 42 major news stories about health

benefits of the category

Category Growth 9%

8% 7% 6% 5% 4% 3% 2% 1% 0%

Non-Advertised period advertised period

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• Create a snack innovation team

– Hire an innovation manager

– Complete snacking market structure study

– Identify promising concepts and put into test

• Begin exploration of the U.S. market

– Identify outside consulting firm to develop a recommendation

– Validate firm’s analysis and create launch team if appropriate

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Goals/Objectives Strategic Initiatives Tactics Primary Objective

Increase profit by +9%

Secondary Objective

Maintain share at 62.1%

Drive category growth by promoting health benefits

Launch quick oats portable cups

Explore growth opportunities

Expand advertising program • Increase PR program to secure media attention

Launch three-item line in Q2 • Support with advertising • Drive trial with sampling, coupons

Create snack innovation team • Hire consulting firm to develop recommendation





3. Goals/Objectives


5. Tactics



8. Milestones

9. Summary



• Increasing the category will require sharp increase in media and PR spending

• New cup line will require advertising and promotional support

• Product costs are expected to be up slightly

2012 2013 Change Category Growth +3% +5% +2 pts Up due to category build initiative Flahavan’s Share 62.1% 62.1% -- Flat share Flahavan’s Volume (MM kgs) 50.0 52.5 +5% Growing due to category expansion Flahavan’s Revenue 30.0 32.1 +7% Up due to higher price cup products Flahavan’s Advertising 3.5 4.3 +22% Up to support programs Flahavan’s Promotions 1.2 1.5 +29% Up due to new produc ts and PR Flahavan’s Profit 5.4 5.9 +9%





3. Goals/Objectives


5. Tactics



8. Milestones

9. Summary



Risks 1. Sharp rise in product costs -Plan anticipates a 2.5% increase -Commodity costs have been volatile 2. Increased promotional activity from competitors 3. Category building efforts are unsuccessful

Contingencies Lead a list price increase if required to achieve plan Spend back part 50% of the price increase to further support category Shift advertising creative from category building to differentiation Develop new creative to ensure strong communication





3. Goals/Objectives


5. Tactics



8. Milestones

9. Summary



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Milestone Complete category building creative Receive advertising test scores Gain distribution for portable cups line at all key retailers Achieve 40% unaided awareness for portable cups line Complete snacking structure study Receive report on U.S. opportunity

Date March 31 April 15 May 15 July 15 June 1 July 15



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• Flahavan’s has delivered strong results, with 2012 profits up +8%, due to robust category growth and a modest price increase

• Flahavan’s has two goals for 2013: increase profit by +9% and maintain share of the porridge category at 62.1%

• The 2013 marketing plan is focused on three big initiatives

– Continue to drive category growth by promoting health benefits

– Launch quick oats portable cups to address growing need for convenience and build margins

– Evaluate new snacking line and expansion into U.S. market

• The primary risk facing the business is that product costs may increase more than expected. If this occurs we will increase list prices to maintain margins

How to write English well - with a review of NCSIST website

28

Culture is the habit of being pleased with the best and knowing why.

Thank You

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