Running head: TEAM ACHIEVERS MARKETING PLAN 1 Marketing Plan Dole Veggie Cups Greens on the Go July 24, 2011
TEAM ACHIEVERS MARKETING PLAN 2 Table of ContentsIntroduction A. Executive Summary......................................................................................................3 B. Purpose and Market Opportunities...............................................................................4 C. Project Scope.................................................................................................................5 D. Specific Marketing Objectives......................................................................................5Environmental Analysis A. Dole External Marketing Environment.........................................................................6 B. Dole Competitive Environment....................................................................................8 C. SWOTT Analysis.........................................................................................................11 D. Market Trends..............................................................................................................12 E. Market Research..........................................................................................................14Fundamental Marketing Strategies A. Fundamental Greens on the Go Marketing Strategies.................................................18 B. Marketing Strategies by Market...................................................................................20 C. Branding Strategy........................................................................................................23 D. Greens on the Go Product Life Cycle Assessment......................................................24Tactical Marketing Mix A. Product Details.............................................................................................................27 B. Pricing Strategy………………………………………………………………………29 C. Placement……………………………………………………………………………29 D. Promotion Plan………………………………………………………………..……..30 E. Social Sustainability: People…………………………………………………………32 F. Process……………………………………………………………………………….34Marketing Metrics and Financials A. Controls ……………………………………………………………………………...35 B. Estimated Sales Forecast..............................................................................................35 C. Break-even Analysis...................................................................................................36 D. Market Share and Penetration......................................................................................36 E. Marketing Budget……………………………………………………………………37 F. Return on Marketing Investment.................................................................................37 G. Brand Equity…………………………........................................................................38
TEAM ACHIEVERS MARKETING PLAN 3 Executive Summary IntroductionThe purpose of this report is to provide information regarding the introduction of a line of on-the-go vegetable cups,Greens on the Go, into Dole‘s domestic product lineup. Greens on the Goare prepackaged, ready to eat and preportioned vegetables in an easy to open, biodegradableplastic pouch placed within compostable exterior packaging. Capitalizing on the on-the-go anduse-and-toss (viz., convenience) mentalities of most Americans, the goal of Greens on the Goisto provide healthy options for busy consumers of all ages. ObjectiveThe primary focus of this project is to replace the excess of empty calories in the typicalAmerican daily diet, which is largely the result of the national overconsumption of sugarysnacks, by providing the convenient, healthy alternative of Greens on the Go. Key FactsDole Food Company (Dole or ‗the company‘) is engaged in the production and marketing offruits and vegetables. Dole already markets a line of packaged and frozen foods. The companyoperates in the US, Europe, and Asia. It is headquartered in Westlake Village, California, andcurrently employs 39,100 people.The company recorded revenues of$6.8billion during the financial year that ended in 2010(FY2010); a decrease of 11% compared to FY2009.The operating profit of the company was$351.7 million in FY2010, an increase of 28.1% over FY2009. The net profit was $84.1 millionin FY2010, an overall decrease of 30.5% compared to FY2009.i Mission StatementShaped on a foundational value of Corporate Social Responsibility, the Dole Food Companyrecognizes the link between economic growth and the well-being of society via the promotion ofproducts that benefit both health and the environment.ii Corporate Social ResponsibilityAs the worlds largest producer and marketer of high quality fresh fruits and vegetables and witha continuously growing line of packaged and frozen foods, the Dole brand has a reputationsynonymous with high quality standards and satisfaction. Dole has earned this reputation overthe last 154 years thanks to its unwavering commitment to fulfill its customers needs andconsumers expectations in the critical areas of quality assurance, food safety, traceability,environmental responsibility, and social accountability.
TEAM ACHIEVERS MARKETING PLAN 4 Marketing ApproachThis project entails placing Greens on the Go inlocal supermarkets alongside our already popularon-the-go fruit cups. Additionally, this product will also be marketed as a component of healthymeals or stand-alone snacks promoted to corporations as a part of school lunches, airplane meals,ready-to-eat meals, and as included in hospital meal trays. SummationThe project will culminate in the successful launch of Greens on the Go, a means of furtheringDole‘s commitment to fulfilling customers needs and expectations in the critical areas of qualityassurance, food safety, traceability, environmental responsibility, and social accountability.Finally,Greens on the Go reinforces Dole‘s commitment to incorporating healthy eating habitsinto the American diet. Purpose and Market OpportunitiesIt is well documented that the average child should only take in the equivalent of 100 caloriesfrom sugar each day; however the reality is that the average intake is closer to 500 calories perday. Lacking convenient and healthy alternatives, the average American parent is pressured torely on prepackaged sugar-laden snacks.iiiThe Dole Food Company believes no one should miss out on good nutrition simply because theydonot have time to prepare a healthier snack. Our company already provides on-the-go fruit cupsand plans to expand this line into Greens on the Go, vegetable cups for customers-on-the-go. Werecognize that canned vegetables are available off the shelf, but these are neither visuallyappealing norpackaged environmentally responsibly and lack the convenience of easytransportability. Greens on the Go are packaged,pre-cut vegetables in an easy to open container. The vegetablesare held in a biodegradable plastic cupcontained within compostable exterior packaging. Thispack is easily transportable for school lunch, afternoon snack, a weekend hike, or even served atdinner time. The product can be served at room temperature, chilled, or heated.Greens on the Go is a viable option for every member of the family. Many young children entera stage in which they become ―picky eaters.‖ Rather than offering quick and easy foods likecrackers and cookies, the Dole Food Company would like to see parents offer a cup of Greens onthe Go. The product bridges the vegetable gap seen in so many households and will assist parentsin achieving the ―5-a-day‖ fruits and vegetables mission as set forth by the U.S. FederalGovernment.The product is good for Moms and Dads, too, as it offers an easy method forincluding healthyeating habits into their daily lives. In addition to providing essential vitamins and fiber, this
TEAM ACHIEVERS MARKETING PLAN 5product will also assist people who experience digestive distress, difficulties chewing orswallowing, and/or have poor immune systems.The Greens on the Go product line will offer multiple vegetable options and be available at localsupermarkets residing alongside our on-the-go fruit cups. As the product value will be average-good (i.e., low price, medium quality) and the targeted audience will be wide, this product willalso be featured in highly visible yet commonly accessible places (e.g., school lunches, airplanemeals, and hospital meal trays).iv ProjectScopeThe Achievers Marketing Team (‗Achievers‘) proposes this new platform for on-the-govegetable product launches for Dole Fresh Vegetables, a division of Dole Food Company, Inc.We propose a family line of products, built over time, starting with the bio-packed, Greens onthe Go vegetable cups, which will initially be marketed to toddlers and school-aged children andthen later expanded to target other consumer segments.It is no longer possible to dominate large markets by developing and mass producing one productat a time; good product development means developing a family line, or platform, of products.Dole‘s strong brand name and brand community gives the company a significant competitiveadvantage in launching a new product platform. Dole is already currently well positioned withadult consumers from having offered a variety of canned and packaged, quick and easy lines offresh fruit and vegetable products.Achievers believes that by offering this new platform of products targeted toward children, Dolewill continue to reinvent the way Americans include fresh, prepackaged vegetables as afoundation for their meals. By making vegetables more attractive and engaging for kids to eat,and easier for parents to serve, we believe consumers will readily expand their palates and trythese new on-the-go vegetable products.v SpecificMarketing Objectives Successfully launch a convenient, healthful vegetables snack that incorporatessustainable principles Create recyclable and compostable packaging and utilize sustainable ink Market Greens on the Go with fun and entertaining Vita-Men charactersas a promotional tool Make Dole Veggie Cups the preferred brand of healthy snacks for all ages and genders Strengthen existing customer relationships by offering Veggie Cups as a new healthy product choice Inform target audience(s) about sustainable features and health benefits of the product Offer product at a similar pricing structure as that of the existing fruit cups product Advertise in children‘s and women‘s magazines
TEAM ACHIEVERS MARKETING PLAN 6 Distribute product samples at school functions (e.g. soccer games, football games, and field days) Distribute product samples at high traffic places/events (e.g. street fairs, charity races, parks) Maintain a positive, steady sales growth each quarterIn light of the current food market climate and the globesity pandemic, it would, hopefully, seemapparent how most advantageous it would be for the Dole Food Company to move forward withthe research and developmentof the Greens on the Go product line. Dole External Marketing Environment Economic ForcesDole Food Company, Inc. recognizes the potential impact of the following economic forces: Excess supplies often cause severe price competition in our industry Competition between food retailers Growing and weather conditions impact supply, quality and market prices of products Fresh produce is highly perishable Public perceptions regarding the quality, safety or health risks associated with particular food products could reduce demand and prices for products Increases in commodity or raw product costs, such as fuel, paper, plastics and resins, could adversely affect operating results Political ForcesDole Food Company, Inc. recognizes the potential impact of the following political forces: Food additives, chemicals, and product safety Public demand for natural, chemical free or genetically altered products The obesity epidemic and fast food mentality The unintentional effects of pesticides on foods and consumers Transparency in food labeling Environmental impact of production and products Legal and Regulatory ForcesEnvironmental laws and regulations that impact all agricultural operations, including Dole FoodCompany, Inc.: The Food Quality Protection Act of 1996 The Clean Air Act
TEAM ACHIEVERS MARKETING PLAN 7 The Clean Water Act The Resource Conservation and Recovery Act The Federal Insecticide, Fungicide and Rodenticide Act The Comprehensive Environmental Response, Compensation and Liability ActPast legal cases involving Dole Food Company, Inc. are largely associated with the agriculturalchemical DBCP (1, 2-dibromo-3-chloropropane). As a result, Dole halted all purchases ofDBCP for use in its domestic and foreign operations when the U.S. Environmental ProtectionAgency (EPA) cancelled the registration of DBCP for use in the United States in 1979.viIn 2007, Dole Foods, Inc. issued a nationwide Dole salad recall in the United States after bags ofDole‘s Hearts Delight salad mix were found contaminated with E. coli bacteria, which couldcause severe illnessvii. Dole now utilizes tracking technology tools that make it possible topinpoint the location of problems and prevent them from entering the food supply.In 2008, the European Commission (EC) fined banana companies for violations of the Europeancompetition antitrust laws and imposed a fine of €45.6 million on Dole Food Company, Inc.viiiDole Food Company, Inc. responds to legal challenges as opportunities to advance ourcommitment to promote corporate ideals centered on the following key principles: Provide a workplace that treats employees with openness, candor and respect Incorporate responsible practices that respect the environment, use new technologies and abide by international environmental standards Facilitate economic, health, social and educational advancement in local communities Support independent certification of our operations worldwide, as a way to demonstrate that our programs and policies comply with internationally-recognized quality, environmental and labor standardsixDomestic statutory standards that impact all agricultural operations including Dole FoodCompany, Inc. are enforced by: The U.S. Food and Drug Administration- responsible for food safety, labeling, manufacturing The U.S. Department of Agriculture (USDA)-facilitates domestic and international marketing of U.S. agricultural products and ensures the health and care of animals and plants The U.S. EPA- Protecting human health, safeguarding the natural environmentEffect on Dole Food Company, Inc. capital expenditures, earnings and competitive position: Costs of compliance with domestic statutory standards are not expected to have a material effect on capital expenditures, earnings or competitive position.
TEAM ACHIEVERS MARKETING PLAN 8 Costs of compliance with environmental laws and regulations will not be material due to the ongoing evolution and increasingly strict enforcement of environmental laws and enforcement policies. Technological ForcesTechnological advances influence marketing behaviors. For example Dole Food Company Inc.decided to incorporate TRUETRAC into its business practices. TRUETRAC technology tracksfood from field to table, which is made possible through tiny high-tech labels, software programsand hand-held hardware gear. Tracking technology tools make it possible to pinpoint the locationof problems, such as a leaky fertilizer bin, an unexpected pathogen in the water, or unwashedhands on a factory floor, that allows Dole to quickly halt the spread of contaminated food intothe domestic food supply. Recognizing that a product recall can bring any company to its knees,the Dole Food Company Inc. strives to protect both brand image and public safety by utilizingtechnology such as TRUETRACx. Socio-cultural ForcesDole Food Company has attracted customers from the macro culture level due to increasedconcern for global environmental health, as well as from the micro culture level where allconsumers are increasingly aware of the connection between their food choices and theirpersonal health. To this end we source, harvest, cool, distribute and market more than 20different types of fresh-cut vegetables, including iceberg lettuce, red and green leaf lettuce,romaine lettuce, butter lettuce, celery, cauliflower, broccoli, carrots, brussels sprouts, greenonions, asparagus, snow peas and artichokes. Products are grown by independent farmers undermulti-year contracts with harvesting primarily provided by Dole. Many of our fresh-packedvegetables are packaged in the field reducing handling and increasing product quality.xi Dole Competitive Environment Competitor Strengths―Kids should consume between one and two cups of vegetables perday, depending upon their age and gender,‖ reports Dr. Mary L. Gavin,the medical editor of KidsHealth. ―Getting your child to eat thosevegetables can seem nearly impossible, but you can make it easier foryou and more palatable for your child with some easy vegetablesnacks.‖xiiIn assessing the current market for prepackaged, convenient, healthfulvegetable snacks for kids, brands with packaged baby carrots are theonly competition. Currently a $1 billion dollar business in the U.S.Bolthouse Farms and Grimmway Farms are the worlds two largest
TEAM ACHIEVERS MARKETING PLAN 9growers, processors and shippers of baby-cut carrots.xiii Dolecurrently offers the Mini Cut Carrot package.Grimmway Farms has been recognized for boosting the sales ofthe baby carrots by positioning it as a healthful snack andpackaging it in ways that make it easy to put in kids sack lunches This proposed look forand serve on airplanes. Today, baby carrots account for about baby carrots packaged70% of carrot sales at Grimmway. Its baby carrot products include in Doritos-like bags andsnack-size packs, carrot stixx, crinkle cut coins, and carrot sold in vendingdippers.xivGrimmway Carrot Dippers™ are packaged, peeled baby machines is part of acarrots with low-fat ranch dressing in a cup. They are sold in new marketingsingle 2.25 oz. packs and three packs.xv Grimmway also offers the campaign that takes aim at the junk foodwidely marketed organic brand of baby carrots called Bunny Luv. business.BunyLuv organic baby carrots are sold in 1 lb., 2 lb., and 4/3 oz.four-packs. Bunny Luv organic carrot chips are sold in 10 oz. and1 lb. cellophane bags. Bolthouse Farms is the premium producer of the Earthbound Farm® carrots, the largest organic baby carrot brand. The organic carrots are 100% organic certified by C.C.O.F., an accredited USDA National Organic Program third party certifier.xviBolthouse also recently announced that the American Heart Association has certified its baby carrots, so the packages may display the heart-check mark on each Grimmway label. The heart-check mark indicates products that meet the Carrot nutritional standards the American Heart Association sets for foods Dippers™ and beverages.xvii The heart-check label is an attractive purchase point to consumers who know its significance. However, Bolthouse Farmsdoes not produce other vegetables besides carrots, so the threat of the company entering themarket with other packaged, snack-size vegetables is negligible. Competitor WeaknessesThe USDA, ChooseMyPlate.gov, dietary fact sheet suggests that kids combine vegetableservings in a meal or snack. Currently there are no prepackaged fresh, mixed vegetable snacksfor kids. Dole‘s Greens-on-the-go will be the first brand name, prepackaged, fresh mixed-vegetable offering. Future ThreatsAccording to USA Today, Bolthouse Farms and a group of 50 other producers will unveil asophisticated media campaign designed to market carrots to kids by branding them as junk food.The $25 million campaign is taking on the $18 billion salty snack food industry by trying to beat
TEAM ACHIEVERS MARKETING PLAN 10it at its own kid-flashy marketing game. This campaign will include repackaging carrots forschool vending machines in bags that resemble Doritos.xviii Dole Greensonthego may lose out onbrand recognition, and market share, for packaged snack vegetables if these producers fillschools with their products.Grimmway Farms produces a variety of other organic vegetables besides carrots, labeled Cal-Organic. It‘s possible that the company could enter the market with a competing packaged,snack-size vegetable offering.Freeze-dried vegetables may also present future competition forfresh, snack-packaged vegetables. Freeze-dried snacks are gainingin popularity because they are easily portable and flavorful.Freeze-dried peas and corn are often available in the natural foodssections of grocery stores. Proposals for future offerings includefreeze-dried peppers, tomatoes, and carrots. The attraction offreeze-dried veggies to parents as a snack for kids is that oneounce equals a full serving of vegetables, so if one has a child who Freeze-Driedis a picky eater or a small appetite, its an effective way to add Vegetables & Fruits xixvegetables to his/her diet. Currently, however, there are no large-scale, brand name vegetable producers marketing freeze-dried vegetables to grocery chains. Competitor Summary The current market for prepackaged, convenient, healthful vegetable snacks for kids consists solely of baby carrots, currently a $1 billion dollar business in the U.S. BolthouseFarms and Grimmway Farms are the worlds two largest growers, processors and shippers of baby-cut carrots.xx Dole currently offers the Mini Cut Carrot package. Grimmway Carrot Dippers™ are packaged, peeled baby carrots with low-fat ranch dressing in a cup, which are marketed specifically as snacks or lunch servings for kids. Later this year, 50 baby carrot producers are expected to release a $25 million marketing campaign designed to rival junk food by marketing baby carrots as snack food to kids through the media, and also placing them in vending machines in schools. The USDA recommends that children eat a variety of vegetables in their daily diets. Currently there aren‘t any fresh mixed-veggie, packaged snack food offerings. At this time, Dole‘s Greens-on-the-go would be the only brand name, fresh mixed- vegetable snack food product in the market.However, future mixed-veggie snack competition could come from Grimmway Farms or from freeze-dried, mixed-vegetable snack offerings.
TEAM ACHIEVERS MARKETING PLAN 11 SWOTT AnalysisStrengths: Weaknesses: 160 year history 11% revenue decrease 2009 FY Recognizable brand / high consumer 6% decrease in fresh vegetable brand awareness revenues in 2009 Industry leader in nutrition education 8% decrease in packaged foods and research revenues in 2009 Industry leader in packaged fruit Substantial indebtedness: $1.6 billion products, packaged salads, and fresh Discontinued citrus and pistachio vegetables operations in California Developed long term supply Market for health-conscious consumers agreements with growers and is growing faster than rate of distributors production Sizeable base of tangible assets; Former use of the pesticide DBCP 122,000 acres of farms and other land resulting in a series of lawsuits holdings Use of herbicides and other potentially State-of-the-art efficient production, hazardous substances anticipated to processing, transportation and lead to environmental damage and distribution infrastructure result in increased costsOpportunities: Threats: Diversification into more health- Competition from up and coming conscious product lines ―green‖ food companies Further development and growth of Changes in environmental policy and nutrition education efforts regulations (as applicable to food Continue to leverage strong brand and industry) market leadership position Changes in political relations with Focus on value-added products companies that could affect access to Focus on improving operating crops efficiency and cash flow Adverse weather conditions, natural Pursue disciplined growth disasters, crop disease, pests and other Encourage corporate social natural conditions responsibility Currency exchange fluctuations for export Increases in commodity or raw product costs; fuel, paper, and plastics Subject to the risk of product contamination and product liability claims Unionized workforce subject to labor disruptionsTrends: Americans consumed an additional 37 pounds of fresh fruit and vegetables per capita in 2008 than consumed a decade earlier Consumers are opting for more fresh products and more innovative packaging
TEAM ACHIEVERS MARKETING PLAN 12 SWOTT ContinuedAs an easily recognizable brand, the Dole Food Company, Inc. has had a long and successfulhistory. The company is an industry leader in packaged fruit products, packaged salads, and freshvegetables. Dole is supported by sizeable tangible assets, like farm ownership and a state-of-the-art efficient production, processing, transportation, and distribution infrastructure.However, rapid expansion into new markets, such as nuts and flowers, combined with globaleconomic downturn, has affected the company‘s profitability. Historical reliance on pesticidesand herbicides has resulted in a series of lawsuits both in the United States and the EuropeanUnion. Unable to determine the rapid growth of the health-conscious consumer market, thecompany is unable to produce enough to meet current demands. These factors all resulted in arevenue decrease of 11% in 2009.Despite the challenges faced, the company has an opportunity to become an industry leader inoffering health- and environmentally-conscious products. The company can use its brandedimage and value-added products to introduce new goods into the environmentally-consciousconsumer market.xxi At the same time, the company should begin practicing corporateresponsibility towards the environment while balancing diversification with disciplined growth. Market Trends Market SummaryDole Food Company, Inc. has been in the market since it was founded in 1851 and is amarketshare leader. The global fresh fruit and vegetable market is worth approximately $675billion and about $100 billion in the United States. Consumers have become more healthconscious and are consuming more fruits and vegetables. First Lady Michelle Obama has createda campaign to reduce childhood obesity, in an effort to promote better eating habits ofAmericans. Food retailers are changing their focus to fresh produce from dry goods. Dole has anadvantage with this trend to expand with new products and merchandise for fresh produce andpackaged foods. Dole and its integrated produce competitors are well situated to meet largeretailer needs.xxii Market NeedsDole aims to provide its market with the highest quality fresh fruit and fresh vegetables and agrowing line of packaged foods. It also strives to promote healthy nutrition to children, as wellas, adults.Nutrition: Fruits and vegetables are high in vitamins and minerals, contain fiber and have littleto no fat.xxiii Fruits and vegetables can lower blood pressure; reduce the risk of heart disease,stroke and potentially some cancers. There is a lower risk of eye and digestive problems and cankeep appetite in check.xxiv
TEAM ACHIEVERS MARKETING PLAN 13Quality: Utilizes Good Manufacturing Practices (GMP), Good Distribution Practices (GDP),Hazard Analysis and the Critical Control Points (HACCP), quality management and traceabilitysystems, and contributes to ensuring food safety.Sustainability: Monitors pest and chemical usage and utilizes ―softer‖ chemicals which causeless harm to the environment than traditional chemicals. Test leaf samples for the nutritionalneeds of the trees. Market TrendsWith the rise of obesity and other health concerns in children and adults in the United States,more people are becoming aware of the types of foods that they eat and are opting for healthiereating habits. Bernstein Research has found that the U.S. media is paying special attention to theissue of obesity compared to years past.xxv A prominent trend in packaged food industries is theproduction of healthier versions of packaged foods. More food manufacturers are beginning tofocus on the innovation of healthier products.Researchers have found that companies with the greatest exposure to vegetable products willbenefit most from the shift to healthy foods in U.S. consumption patterns. With Dole being theworld‘s largest producer of high-quality fresh fruits and vegetables, it is in a prime position toenter the market with packaged vegetable products. Market GrowthIn recent years there has been a spike of healthy packaged foods that are either organic; fortifiedwith vitamins or minerals; have reduced sugar, fat, salt, or carbohydrate content; have fiber; soy-based or gluten/lactose-free. Of the $1.3 trillion global packaged foods market, the healthieroptions make up approximately 16%, or $245 billion. There has been a steady annual increase ofhealthy packaged products from 7% from 2002 to 2006. Whereas regular packaged foods onlysaw a 3.1% annual increase.
TEAM ACHIEVERS MARKETING PLAN 14In the United States, healthier packaged food products made up only 25% of the market or $76billion compared to the total market worth of $231 billion. The annual growth rate in the U.S.was 6.2% or $16 billion, compared to regular packaged foods at about $11 billion. According tothe graph below, the outlook is promising and with sustained growth, the value could reach about$21 billion over the next four years.xxvi Market ResearchAs Dole Food Company, Inc. already has a well-established customer base, this new product lineproposal seeks to maintain appeal within Dole‘s current markets while opening up to new clientbases. Target markets will initially include double-income families with children and then willlater expand to include other on-the-go, convenience-seeking demographics. DemographicsThe majority of the marketing will be gender-neutral and geared towards children ages 14 andbelow and their parents/caretakers. For the parents/caretakers, age and gender should not play aserious role in this marketing campaign as advertising will be directed more towards the primaryfamily caretaker in general in order not to alienate based on gender or age.Income, however, will be much more of a limiting factor. Generally, as total family incomerises, the number of parents working outside of the home also rises, and more recently, more andmore families of mid- and upper-level incomes have resorted to both parents working outside ofthe home. For dual-income families such as these, time available for domestic activities (i.e.,cooking and lunch-packing) tends to be in short supply, and as middle income (defined as amedian income of $64,465) and upper, or professional, income (defined as a median income of$147,742) are much more likely to have both parents working outside of the home, the Greens-on-the-Go will be more heavily targeted towards these families.xxvii Furthermore, because of thissegmentation in marketing, the product could be made from either conventional or organic foods,and there would be a little more flexibility in pricing and thus the allowable base cost of theproduct.
TEAM ACHIEVERS MARKETING PLAN 15 Geographic CharacteristicsTarget markets will be within American continental borders at the onset of product launch, butspecific locations within the United States will not be so limited. Product storage and advertisingwill be adjusted relative to marketing locations. For example, storing the product in an aridclimate will be much different than storing the same product in a high altitude location. Thesedifferences will be most easily offset by adjusting the local structures of the various Dole storagefacilities.One final geographic consideration concerns the difference in urban and rural populations andtheir use of child care. Urban populations are much more likely to hire child care providers,which would again suggest the limited time available for meal preparation and the on-the-golifestyle. These assumptions would encourage more urban marketing as direct targeting of morerural populations might be considered an unwarranted use of company resources.xxviii
TEAM ACHIEVERS MARKETING PLAN 16 Psychographic ProfileDifferent aspects of the marketing campaign will reach out to both Experiencers and Believers,and to a lesser degree the Achievers. More physically active Experiencers will be targeted with―healthy‖ messaging and advertising thathighlights the convenience of maintaininga healthy life-style while busy withGreens-on-the-go. (Advertisements mightinclude backpackers reaching for a cup ofGreens-on-the-go.) Believers will beattracted by messages of Greens-on-the-goaiding families in meeting their dailynutritional goals and promoting ―healthy‖ideals. Achievers will also in some smallpart be attracted to the idea of meetingtheir daily nutritional goals.Ironically, interest in Greens-on-the-gowill be most motivated by a desire toprovide healthy, sustainable options toone‘s offspring yet will be oversimplified,much less educated messaging in order toattract the children‘s interest. Also, aspreviously mentioned, the mid- toprofessional-level income brackets will betargeted for this product. Purchase BehaviorsAs may be seen in the chart to the right, the higher income quintiles spend more real dollars onfood purchases, but these purchases account for a much smaller portion of overall familypurchases.xxixThis lesser percentage allows for more flexibility in spending habits. As the next chart willshow, even with the recent increase in public health awareness, the American diet, and thuspurchasing patterns, leaves much room for improvement when it comes to fruit and vegetableconsumption.xxx Even more encouraging for our marketing efforts, Dole‘s on-the-go veggie cupswould be a unique product offering as there are few competitors that even offer the variety ofvegetables as that of Greens -on-the-go.
TEAM ACHIEVERS MARKETING PLAN 17 Mean intake of Fruits/Vegetables (% total food intake) by age of four clusters between two and 18 y old of 228 participants of the DONALD Study ( constant; medium, high, low)Source: Alexy, U., Sichert-Hellert, W., Kersting, M., &Schultze-Pawlitschko, V. Pattern of long-term fat intake and BMI during childhood and adolescence—results of the DONALD Study. (2004, August 17). Potential Market Growth & Customer Needs AssessmentAs has been previously demonstrated, Americans are extremely lacking in their vegetableconsumption, and the easiest way to resolve such an issue is to address the problem via educationwhile consumers are still young. Savvy consumers, and especially caring parents, will recognizethis (or be made aware of it after our marketing efforts) and will increase both their and theirchildren‘s vegetable consumption with our convenient cups.xxxi The increase of media coverageof our nation‘s nutritional deficit and the recent release of the modernized ―My Plate‖ will onlyserve to complement our campaign and marketing efforts.After a thorough SWOTT, Dole should realize the potential for the expansion of an alreadysizable market. An increase in nutritional awareness among consumers will inevitably create thedemand for healthier options, and Dole would be remiss to ignore these market signals. The bestmarketing and production path would be to acknowledge the coming changes and preempt, orpreferably lead, the oncoming barrage of fruit and vegetable offerings with choice, sustainableoptions for the American public.
TEAM ACHIEVERS MARKETING PLAN 18 Fundamental Greens on the Go Marketing Strategies Primary Target MarketGreens on the Go will be marketed as a convenient way for people to get their recommendeddaily servings of vegetables. With the recent childhood globesity epidemic, the main marketingfocus will be on the products‘ benefits for children, but since children do not hold actualpurchasing power, the parent‘s or caretaker‘s expectations must be met for the product to sell. Aspreviously stated, the ideal purchaser will be an urban, double-income family in the middle toupper income level. Demographics of a Greens on the Go Purchaser – PrimaryAge: Parents The population of 20 to 44 year olds makes up 36.9% of the market.Age: Children Children ages 14 and under make up 21.4% of the total market, and of all children enrolled in school, 43.9% are in elementary school (grades 1-8).Marital Status Married couples with children under the age of 18 make up 23.5% of total households.Income: Households with middle income range of $25,000 to $99,000 make upMiddle 59% of the market.Income: Upper Households with an upper income range of $100,000 or more make up 12.3% of the market.Job Status Families with children under 6 years of age where both parents are in the labor force make up 58.6% of the market.Occupation Management, professional, and related occupations make up 33.6% of the market share.Children Households with individuals under the age of 18 make up 36% of the household market.xxxii Primary Customer Profile StatementsJane is a 33-year-old female married to Tom, a 34-year-old male; they have two kids inelementary school, work full-time as management professionals making $75K, and spend theirweekends attending their children‘s school and sporting events and going to concerts. Jane drives
TEAM ACHIEVERS MARKETING PLAN 19a hybrid SUV, watches the Food Network, is an advocate for healthy school lunches, enjoysshopping for clothes, and attends weekly yoga classes. Tom drives a hybrid sedan, participates ina local running club, always buys the latest tech gadgets, and travels for his job. Jane and Tomare Experiencers, have high resources, and are motivated by self-expression. They are high-energy people who enjoy physical exercise and social activities. They enjoy spending money onclothing, concerts, sports events, and fast food. Secondary Target MarketTime crunched, health conscience consumers such as working professionals and college studentsmake up the secondary target market. These consumers are busy individuals who are concernedwith their well being but do not always have the time to prepare a healthy snack or meal. Thesecondary market is similar to that of the primary market except that they do not have children.Working Professional College StudentOf the population 16 years and over, Those enrolled in school - college or33.6% work in a management, graduate students - make up 22.8% of theprofessional, or related occupation, market.Are more likely to be involved in College students in 2003 were more likelycharitable work, & to be employed than those in the 1970s and the 1980s.xxxiiiTravel more often and further than As these students‘ educations are furthered,mainstream classes, in part due to higher they are increasingly more likely to beincome.xxxiv directly involved in their communities and service projects. Secondary Customer Profile StatementsJohn is a 44-year-old working professional making $85K and spends his time traveling to newcountries and participating in charitable work. He has high resources and stays busy with variousactivities. John is an Achiever as he is motivated by accomplishments and gains satisfaction fromhis job.Mary is a 21-year-old female, college student at Point Loma Nazarene University studyingPublic Health. She works part-time as a substance abuse intern making $25K. She spends herweekends volunteering as a nutrition counselor and attending church. She saves most of hermoney and spends the rest on basic needs. Mary is a Believer since she has low resources andfocuses on her nutrition, community and ideals.
TEAM ACHIEVERS MARKETING PLAN 20 Future Target MarketsPotential future target markets include: people with sensitive nutrition and restricted dietaryneeds;corporate meal settings such as those of school cafeterias; and airlines with in-flight meals.Obesity The overall prevalence of adults with obesity was 26.7% in 2007.xxxvSchool Revenue from US School lunch charges totaled $6.9 million from 2008-Districts 2009.xxxviAirlines International airline food industry revenues jumped 43% to $13.5 billion [USD] in 2009.xxxvii Marketing Strategies by MarketThough the multiple target markets of this campaign might have some overlap, there are reallytwo different marketing strategies at play: 1) diversification and 2) product development.Diversification of Dole‘s products (i.e., the introduction of the kid-targeted, Greens on the Go)will be geared toward the primary target market – viz., children and their caretakers, and a focuson product development will be the messaging of the secondary marketing strategy for alreadyhealth conscience yet time-crunched adults on the go. Future target markets will also have moreof a product development approach. Reaching the Primary Target MarketsAs the more animated, kid-friendly Greens on the Go operation will be launched first, it will alsobear the burden of the initiation of Dole‘s new marketing techniques in conjunction with newfacility openings and/or the restructuring of current facilities to accommodate both the shift incompany marketing tactics (e.g., the introduction of the recurring Vita-Men characters) and themore sustainable and thus unique packaging of this innovative new product. Before worryingabout destroying the company‘s rich commercial history, let it be known that Dole‘s traditionalfresh and desirable produce options approach will remain intact, but the underlyingcommunication will win over shoppers with freshly motivated appeal.It is well known that the purchases of parents are strongly guided by the passions of theirchildren, but Scott Ward et. al. of the Association for Consumer Research found that children ofnutritionally savvy parents are less likely to even ask for less healthy options because they doubttheir request will have much effect on the ultimate purchase.xxxviii Not only will Greens on theGo entice parents with healthier convenience options, but the subliminal messaging absorbed bytheir children will perpetuate future purchasing, which has the potential to sustain profits foryears to come.
TEAM ACHIEVERS MARKETING PLAN 21 Reaching the Secondary & Tertiary Target MarketsAfter the successful positioning of this new product line has gained some momentum, thesecondary target markets will be presented with Greens on the Go in slightly different and thusmore adult-appropriate packaging. This ―new product‖ will highlight the possibility of eco-friendly, health-on-the-go via an easy to grab and carry biodegradable cup but with graphics ofathletes and participants of adventurous outdoor activities (e.g., hiking, grappling, etc.) and―healthy living‖ factoids displayed. Students and young professionals with weekend warrioraspirations will most likely first partake based on the attraction to the less difficult nutritionalappeal but will be committed to this purchasing pattern after enjoying the wholesome anduntainted produce offered. Greens on the Go Differentiation StrategyThe green market is not only here to stay, it is going mainstream. Today‘s consumers expectaccessible, sustainable, healthy, and attractive food choices in the main aisles of major grocerystore chains as much as they do in natural foods markets. Sustainable food products that have alighter impact on the planet and benefit society are attractive to most every generation today –from Baby Boomers to elementary school children.The current packaged, fresh vegetable products are marketed primarily to adults concerned aboutconvenience. Greens on the Go snack vegetables, however, will be offered and packaged in away particularly attractive to both children and their parents. The variety of vegetables offered inthe Greens on the Go line will differentiate the product further from the leading brands of snack-packaged baby carrot products. Moreover, incorporating sustainability principles throughout theproduct‘s life cycle, from farm to packaging to marketing, will significantly increase Dole‘smarket share among the fast-growing numbers of green consumers looking for healthy snackalternatives.The unique features of Greens on the Go include the following: Vegetables with superior nutritious value packaged with the convenience of a snack food for active kids and families Dole SuperKids™ Packaging: Vita-Men characters and fun games for kids Availability in all national grocery store chains Sustainability features built on four pillars: water management, carbon footprint, soil conservation, and packagingxxxix Offering employees competitive wages, ample benefits, and a safe work environment while honoring employees‘ rights
TEAM ACHIEVERS MARKETING PLAN 22 Enhancing and empowering communities to advance and prosper Protecting natural resources and actively seeking ways to reduce our environmental impact Positioning StrategyThe Greens on the Go positioning strategy will be reflected in all our marketingcommunications, from web site design to product packaging and advertising, and will beintegrated into every aspect of our marketing plan.To build a focused, meaningful, and differentiated idea in the minds of our target customers,Greens on the Gowill be positioned accordingly: Our product offers the following benefits: Superior nutritious quality vegetables, conveniently packaged as a snack food; To the following customers: Active kids and busy, active families on the go; Our product is better than the competitors in the following manner: Produced, packaged, and marketed sustainably with packaging covered with Vita-Men games and fun facts attractive to kids. Competitive StrategyThe Dole brand name is associated with quality and nutrition with every fruit and vegetable thecompany grows and sells. Founded in Hawaii in 1851, the Company built its reputation on JamesDrummond Doles "Statement of Principles: quality, and quality, and quality."xl However,today‘s green consumers care not only about food quality, but also about the health of theenvironment in which it‘s grown, climate change, and fair labor practices.The Greens on the Go product will cater to today‘s active kids and families concerned abouthealthy food and sustainability. In this regard, Dole‘s competitive marketing strategy for thisproduct will be based on a broad differentiation strategy highlighting: The only leading produce supplier in our industry to offer a sustainable product in grocery chain outlets The only fresh vegetable product packaged attractively for kids and still providing nutritional information to parents The only fresh vegetables packaged in convenient, to-go packaging.Dole‘s Greens on the Go sustainable vegetables will significantly enhance our corporatereputation, thereby increasing the loyalty of customers. The Greens on the Go product line will
TEAM ACHIEVERS MARKETING PLAN 23increase sales, revenue growth, and marketshare among the fast-growing numbers of greenconsumers as well as save money through sustainable efficiencies. Overall, the Greens on the Goproduct line will significantly increase Dole‘s competitive advantage in the industry. Branding Strategy Historical Branding The present Dole brand was established in the 1950s. Prior to this, the company‘s branding consisted of the Dole name in red letters. With its rich heritage, though, the Dole logo is an easily recognizable brand. Brand ReinforcementAs the company begins exploring a product line of vegetables as well as instituting sustainablebusiness practices, it is fitting that the company adjust its logo to reflect this new direction. Thenew logo [image below] is a single color to reduce the amount of ink required to produce thelogo on packaging and documents.xli Furthermore, the logo will be printed using low-volatileorganic compound (VOC) sustainable ink like that of the Gans Ink and Supply Company.xlii Product ContainersThe primary element that will distinguish the Greens on the Goproduct on store shelves will be the cutting-edge container and itsother sustainable packaging. The size of the container is similar tothat of a drinking glass, making the product easy to transport anduse. This container is comprised of a biodegradable plastic madefrom corn. Again, the Dole logo will be printed on the containerusing a sustainable ink. Product PackagingOn average, Americans dispose of 300 pounds of packaging per person per year.xliii Thereduction of packaging waste is an important aspect of sustainable business practices. TheGreens on the Go veggie cups‘ containers will be packaged much like Dole‘s current fruit cupproducts [image shown below]. This type of cup holder packaging utilizes the minimum amountof material possible and is easily disassembled for recycling. The Greens on the Go packageswill be made from 100% recycled cardboard and newspaper fibers. This packaging will be fullyrecyclable and compostable. The printed material on the packaging will be reduced to the greenDole logo shown above, Greens on the Go, basic product and nutrition information, Vita-Mengames and graphics, and a CPC code, which will all be printed in a sustainable ink.
TEAM ACHIEVERS MARKETING PLAN 24 Vita-MenTo appeal to the primary target market, the Greens on the Go veggie cups will be represented byvegetable mascots called the Vita-Men. These characters will appear on television and internetmarketing campaigns. Additionally, the Vita-Men will appear as plush promotional items,stickers, and other kid-centric promotional material directed at the primary market. xliv Nutrition InformationThe USDA recently changed the antiquated food pyramid to the MyPlate program, whichemphasizes moderation and portions. The Achievers Marketing team recommends Dole work with the USDA to create an easier to understand guide for product nutrition facts. The proposal includes a simple color-coding system to work in conjunction with the MyPlate information. The Greens on the Go veggie cups will feature a color-coded indicator comparable to the table below that will correspond with a table on the packaging to show which vitamins and/or minerals are provided in addition to the physical benefits provided.Color Vegetables Benefit Vitamins / Minerals Broccoli Muscle Growth Potassium Snap Peas Brain Development Iron Celery Bone Density Calcium Carrots Vision A Bell Pepper Metabolism Copper, C Greens on the Go Product Life Cycle Assessment Introduction StageIn the introduction stage, Dole seeks to build product awareness and develop a market for Greenson the Go. The origins of Dole can be traced back to 1851 Hawaii, yet it wasn‘t until the 1985purchase of Dole by David H. Murdock that a more well-defined corporate brand image began to
TEAM ACHIEVERS MARKETING PLAN 25emerge.xlv Murdock‘s vision for Dole to become a broadly diversified food company with astrong brand name was built on the foundation of growing its value-added products andcapitalizing on competitive strengths.xlvi Dole‘s strategy has been the driving force behind itsstrong historical operating performance and continues to propel the company forward towardfuture growth opportunities.Focusing on value-added products, Dole has successfully shifted its product mix toward value-added food categories and away from commodity fruits and vegetables and into the ready-to-eatsector of salad lines, bagged cut and peeled carrots, and fruit bowls. The value-added segment ofDole‘s product line generates higher profit margins and creates a larger market into which thecompany can expand – viz., the perfect platform to launch the Greens on the Go product line.The impact on the marketing mix in the introduction stage is as follows: Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained; Pricing may be low penetration pricing to build market shares rapidly or high skim pricing to recover development costs; Distribution will be selective until consumers show acceptance of the product; Promotion is aimed at innovators and early adopters; and Marketing communications seek to build product awareness and to educate potential consumers about the product line.xlviiThe target introductory market for Greens on the Go is comprised of children and their parentswith the ultimate goal of offering quality healthy food choices that fulfill customers needs andexpectations in the critical areas of quality assurance, food safety, traceability, environmentalresponsibility, and social accountability while simultaneously incorporating healthy eating habitsinto the American diet. Growth StageIn the growth stage, Dole seeks to build brand preference and increase market shares. Thesuccessful completion of the introductory stage propels Greens on the Go onward into the growthstage of the product life cycle by building on existing competitive strengths such as brand namerecognition as well as making significant investments in production, processing, andtransportation and distribution infrastructure. Growth is made possible through the consistentdelivery of the highest quality and freshest products at all stages of the product life cycle, but it isthe growth stage specifically where additional vegetable choices will be added to the Greens onthe Go product line in the effort to maintain customer interest, increase demand, and reach abroader customer base. Dole also seeks to play a leading role in nutrition education through
TEAM ACHIEVERS MARKETING PLAN 26Greens on the Go product packaging by promoting the health benefits of incorporatingvegetables into one‘s daily diet.The key points of the growth stage on the marketing mix are as follows: Product quality is maintained and additional features and support services may be added; Pricing is maintained as Dole enjoys increasing demand with little competition; Distribution channels are added as demand increases and customers accept the product; and Promotion is aimed at a broader audience.xlviii Maturity StageIn the maturity stage, Dole‘s primary objective is to defend the Greens on the Go market sharewhile maximizing profit as sales diminish and competition increases.xlix Defending the marketshare is accomplished by focusing on operating efficiency, profit improvement initiatives,maximizing cash flow, analyzing the current customer base and profitable relationships, and byleveraging purchasing power to reduce costs of raw materials while maintaining Dole‘scommitment to marketing sustainable products that will enable healthier, more vital lives.The key strategies employed by Dole in the maturity stage of the marketing mix include: Product features may be enhanced to differentiate the product from that of competitors; Pricing may be lower because of the new competition; Distribution becomes more intensive and incentives may be offered to encourage preference over competing products; and Promotion emphasizes product differentiation.l Decline StageIn the decline stage where sales typically decline, Dole has several options for the Greens on theGo product line. As competition increases to the point where production differentiation is nolonger apparent to the consumer, Dole may employ the following strategies: Maintain Greens on the Go product line by adding new features and finding new uses; Re-market Greens on the Go specifically toward a loyal niche segment; and/or Discontinue Greens on the Go or sell the product line to another company.li
TEAM ACHIEVERS MARKETING PLAN 27The current vision for Greens on the Go is an ongoing evolution of the product line to the pointwhere it is adaptable to current trends and market segments. This flexibility would allow Dole tointroduce Greens on the Go into many different segments as competition would dictate, addingnew features or tailoring current offerings to specific segments. Future marketing strategieswould include commercial sales to hospitals, schools, businesses, and possibly even as vendingmachine options. The sky‘s the limit with this trendy new Greens on the Go product line. Tactical Marketing Mix Product DetailsIn the end-state, Greens on the Go – fresh cut vegetables in biodegradable cups wrapped incardboard packaging – will target and group the cups based on five (5) benefit categories aspreviously enumerated.These categories will then correspond to the five (5) Vita-Men that will be a primal focus of thepromotional campaign. As the product line expands, more Vita-Men (and health benefits) can beadded.The Greens on the Go product launch will offer prepackaged, ready to eat vegetables in easy toopen, biodegradable containers [shown below] within compostable exterior packaging.Capitalizing on the on-the-go mentalities of most Americans, the primary goal of Greens on theGo is to provide healthy options for busy consumers of all ages. Product PackagingThe target introductory market for Greens on the Go is comprised of children and their parentswith the ultimate goal of offering quality healthy food choices that fulfill customers needs andexpectations in the critical areas of quality assurance, food safety, traceability, environmental
TEAM ACHIEVERS MARKETING PLAN 28responsibility, and social accountability while simultaneously incorporating healthy eating habitsinto the American diet.Marketing growth for this product is made possible through the consistent delivery of the highestquality and freshest products at all stages of the product life cycle, but it is the growth stagespecifically where additional vegetable choices will be added to the Greens on the Go productline in the effort to maintain customer interest, increase demand, and reach a broader customerbase. Dole also seeks to play a leading role in nutrition education through Greens on the Goproduct by promoting the health benefits of incorporating vegetables into one‘s daily diet.Although Dole‘s current quality assurance guarantee will be highlighted throughout the productlife cycle, it will be most strongly emphasized during this phase.Next, in the maturity stage of the product life cycle, Dole‘s primary objective is to defend theGreens on the Go market share while maximizing profit as sales diminish and competitionincreases.lii The key strategies employed by Dole in this phase of the marketing mix includeenhanced product features to differentiate the product from that of competitors, lowered pricingto balance for new competition, increased distribution efforts, and incentives and promotions(e.g., Vita-Men plush toys for children and coupons/giveaways for parents) offered to emphasizedifferentiation and encourage market share/preference.liii This will also be an opportune time toreally focus on marketing to the secondary and tertiary markets. Dole may be able to pair upwith dieting companies and/or hospitals for added market shares.Finally, in the decline stage where sales start to fade, Dole has several options for the Greens onthe Go product line. As competition increases to the point where production differentiation is nolonger apparent to the consumer, Dole may employ the following strategies: Maintain Greens on the Go product line by adding new features and finding new uses; Re-market Greens on the Go specifically toward a loyal niche segment; and/or Discontinue Greens on the Go or sell the product line to another company.livIn sum, the entire value package throughout the product life cycle is a combination of nutritious,healthy living benefits coupled with and neatly wrapped in fun, no-guilt sustainable packagingthat appeals across the target markets. Pricing StrategyGreens on the Go is a unique product as no other company has one like it at this time. The threatof competition of comparable products is expected to be high after Greens on the Go is released.Since many of Dole‘s competitors already produce fruits and vegetables, there are low barriers toentry for creating similar products. The ideal pricing strategy to use in this situation ispenetration pricing.
TEAM ACHIEVERS MARKETING PLAN 29Greens on the go will be priced low in order to secure wide market acceptance and will allowDole to increase the price later as demand increases. This strategy will likely discouragecompetition because of its low initial profits. The benefits of using penetration pricing allowDole Food Company to achieve the following: Fast diffusion and adoption which can take competition by surprise, Creates goodwill among early adopters segment, Creates cost control and cost reduction pressures from the start allowing for efficiency, Discourages entry of competitors by creating a barrier to entry, Creates high stock turnover throughout the distribution channel, & Can be based on marginal cost pricing allowing for economic efficiency.The disadvantages of using penetration pricing can include the following: Establishes long term price expectations, Creates image preconceptions for the brand and company, and Makes it difficult to raise prices.As may be readily seen, the advantages of penetration pricing far outweigh the disadvantages.The price increase can also serve as a reminder of sustainability for consumers. Througheducational campaigns, Dole can show consumers that the added cost is to continue its efforts ofconservation and sustainable business practices. PlacementThe Achievers Marketing Team plan calls for Greens on the Go to be selectively distributed togrocery retailers and displayed in their produce sections in the fresh cut refrigerated shelving atthe start of summer. Dole will work with its current farming, packaging, distribution, andchannel intermediary (retailer) networks to deliver Greens on the Go products to our targetconsumers.Current data is showing that sales of cut, pre-packaged fruits and vegetables are on the rise.lvTherefore, Greens on the Go will be displayed with the current value-added offerings in thegrocery produce departments. Greens on the Go will be displayed with the fresh cut fruits andvegetables in the cooler to maintain the proper temperatures, reduce shrink, and to position themin high-traffic, high-visibility areas in order to help ensure quality and stimulate sales.To differentiate our product from our competitors, Dole will work with retailers to merchandisethe product in a way that reaches kids and their parents in the produce section with the
TEAM ACHIEVERS MARKETING PLAN 30―Vegetables are good for you and fun to eat, too!‖ message. Life-size Vita-Men floor stands anddisplay toppers will attract kids to the Greens on the Go products; their parents will follow. Atthe product displays, cross-merchandising across several categories will reiterate to parents thehealthy snack and lunch box concept of our product as well as boost sales for retailers. TheGreens on the Go product will be paired with other single-serve lunch box items at the display,such as cheeses, yogurt dips, ranch dressings, and peanut butter.Dole will also suggest that retailers display Greens on the Go in their value-added produce aislesto appeal to our secondary target market – viz., active, health-conscious consumers who wantconvenience.these secondary market successes will also encourage the word-of-mouthadvertising that will draw the less healthy seeking to better their routines and habits (e.g.,January resolutioners, dieters, and reforming athletes) and others with sensitive nutrition andrestricted dietary needs like people with diabetes or other gastrointestinal complications. A pushmarketing strategy could include the use of Greens on the Go secondary displays next to thevalue-added refrigerated guacamole, hummus, dips, and salsas. Promotion PlanAt the conclusion of the Achievers Marketing Team plan, the Dole R&D team will begin tobrainstorm on how to produce the product and implement the plan. This process will begin inOctober 2011 with a targeted product release date at the end of May 2012. This schedule allowsthe product to be on store shelves at the start of summer.lvi The product will be marketed duringthis time to the primary market as an alternative snack option during the summer months whilechildren are at home. As a phase in the marketing life cycle, the three month summer windowwill allow time for market introduction. By the end of summer, the product will enter the secondmarketing life cycle phase of growth, which will be experienced as customers who are alreadyfamiliar with the product use it as their children go back to school. In anticipation of increasedproduct demand, a second production run will be shipping to stores by mid-August 2012.SeeAppendix A for implementation schedule.
TEAM ACHIEVERS MARKETING PLAN 31 Specific Marketing Strategies Tool Objective Timeframe Message Audience National Grocers Market February 2012 Promotion / Retailers Association Conference Introduction Education National Conference on Market February 2012 Promotion / Tertiary Education Introduction Education Television ad Market May 2012 – Promotion (parents of) Introduction (ongoing) Primary and Secondary Facebook ad Market May 2012 – Promotion (parents of) Introduction August 2012 Primary dole.com Vita-Men Market May 2012 – Education Primary online games Introduction (ongoing) Sustainability on the Market July 2012 Promotion Retailers Shelves Webinarlvii Introduction Health Magazine ad Market May 2012 – Promotion Secondary Introduction August 2012 Working Mother Market August 2012 – Promotion / (parents of) Magazine ad Growth October 2012 Education Primary Facebook ad Market August 2012 – Education Primary Growth October 2012 Food Marketing Institute Market September Promotion / Tertiary Sustainability Summit Growth 2012 Education Association of Outdoor Market November Promotion / Retailers, Recreation and Growth 2012 Education Primary, Education Conferencelviii Secondary, & Tertiary
TEAM ACHIEVERS MARKETING PLAN 32 Social Sustainability: PeopleDole Food Company, Inc. believes that inorder to perpetuate sustainability, it is ofthe utmost importance to treat its people,resources, environment, and community asits most precious assets. As the public faceof Dole and the source of our success,Dole is committed to treating itsemployees from the fields to its executiveoffices with openness, candor, and respect.Fostering a culture built on a foundationof employee development, teamwork, and a Source: Dole Food Company, Inc., 2011.shared vision to create products and servicesthat society values while efficiently using resources.Dole monitors corporate performance inthese key areas through external certifications including: ISO 14001: The preferred standard for measuring and evaluating environmental management systems, ISO 14001 monitors environment-related responsibilities, such as waste management or practices aimed at avoiding adverse changes to air, water or land. Global Good Agricultural Practices (GAP): A private sector body that sets voluntary standards for the certification of production processes of agricultural products. The purpose of Global GAP to reassure consumers that Dole farms use production techniques aimed at minimizing detrimental environmental impacts of farming operations, reducing the use of chemical inputs and ensuring a responsible approach to worker health and safety, as well as animal welfare. Global GAP: Serves as a practical manual for GAPthroughout the world. Promoting an equal partnership of agricultural producers and retailers who wish to establish efficient certification standards and procedures. Social Indicators: Dole‘s Human Resources department compile information about social- and labor-related topics, as well as the social impact of Dole‘s community programs.lix Complies with applicable labor codes; Requires ongoing reviews of working conditions to maintain strict compliance; Works in collaboration with the representatives elected by its workers; Practices a non-discriminatory policy per the principles developed in the International Labor Organization‘s Conventions;
TEAM ACHIEVERS MARKETING PLAN 33 Is an Equal Opportunity Employer; Ensures that working conditions in the Company‘s facilities are designed to protect the health and well-being of all employees; Provides all employees with training in good practices, environmental programs and safety techniques, as well as systematic instructions on the safe application of crop protection products; Employees receive at least the legally required compensation and benefits, though it is more common to find that the Company-provided benefits exceed those stated by law;lx Eco-consciousness: PlanetIn its Code of Conduct Policy (‗Code‘) established in the 1990s, Dole adopted a strictenvironmental policy applicable to its worldwide operations, and in accordance with this Code,Dole established the practice that all employees and key suppliers must sign and comply with theCode. Building upon this company practice and in an effort to foster awareness, Dole‘s newCorporate Responsibility and Sustainability website was launched on July 6, 2011. As areflection of the company‘s ongoing commitment to protect its greatest assets represented bypeople, farms, and the environment, Dole has established four pillars of sustainability, whichinclude: 1. Water management: Dole has implemented industry leading programs that teach water recycling methods and processes that reduce overall usage; 2. Carbon footprint: Dole maps and analyzes its activities in order to locate the sources of carbon emissions and develop alternative practices; 3. Soil conservation: Dole is dedicated to providing consumers with the highest quality Mobile Field Packaging Units in Yuma Source: Dole Food Company, Inc., 2011. produce, which is only made possible with healthy soil; & 4. Dole already follows a "Reuse or Recycle" policy to conserve material, reduce waste, and maximize efficiency throughout the supply chain.lxiDole‘s commitment to doing business in ways that are more sustainable is promoted through theongoing monitoring of its environmental programs. Monitoring is accomplished through formaland informal audits, pre-harvest residue analyses, and residue monitoring of shipment beforedelivery to the customers, which is important for risk anaylsis as well as food safety. Dole also
TEAM ACHIEVERS MARKETING PLAN 34 provides its independent growers with direction, technical guidance, and training in safety and environmental protection. The incorporation of integrity and a steadfast commitment to quality in all spectrums of the business sets Dole apart as an industry leader in the production of fresh fruits and vegetables, a responsibility and honor in the promotion of exceptional business practices. Furthermore, setting such precedence and defining industry priorities is instrumental in expanding Corporate Responsibility and Sustainability (CR&S) values throughout the industry.lxii Process Dole will work with current farming, packaging, distribution, and channel intermediaries (retailer) networks to deliver Greens on the Go products to our target consumers. Dole will communicate and employ its sustainability principles at each stage of the value chain. The distribution channel for our product will include: Supermarkes Integrated Produce & & Other Farms Shippers Wholesalers General Grocery Consumers / Retailers Wholesalers Outlets Fresh vegetables, as well as fresh cut salads and other value-added products marketed by Dole, are grown under joint growing arrangements with independent growers in California, Arizona, and northern and central Mexico. Dole leases approximately 13,900 acres of farmland in California in connection with its vegetable operations.lxiii The majority of this acreage is farmed under joint growing arrangements with independent growers while Dole farms the remainder. The vegetables are then generally field packed and transported to Doles central cooling and distribution facilities.lxiv The company also owns cooling, packing and shipping facilities in Marina, Gonzales, and Huron, California. Dole already owns and operates state-of-the-art, packaged salad and vegetable plants in Yuma, Arizona; Soledad, California; Springfield,Marina Cooling & Distribution Facility Ohio; and Bessemer City, North Carolina, which canSource: Dole Food Company, Inc., 2011. be utilized in the production of Greens on the Go.lxv
TEAM ACHIEVERS MARKETING PLAN 35 Marketing Metrics and Financials ControlsAs Dole currently has standardized monitoring processes and procedures in place, which arealready accepted and compliant within the industry, we will capitalize on the tools available andonly slightly modify the monitoring reports presently required to accommodate the new Greenson the Go facilities and incorporate the new standard operating procedures.lxvi Estimated Sales Forecast2010 Dole total revenue was $6.9 billion, $1.1 billion or 16% of sales earned in the packagedfood category. The average for each of the seven product lines within the packaged foodcategory was $157,714,286 per product annually. Based on past sales history, the target salesprojection for year one for the Greens on the Go product launch is $150,000,000. Growth rateprojections to correlate with product life-cycle stages of growth, maturity & decline areestimated at 20% in 2013, 25% in 2014, 20% in 2015 and 15% in 2016.The strategy to accomplish these goals includes: Supply the finest, high quality healthy and nutritious products Lead the industry in nutrition research and education Leverage brand strength Expand value-added product offerings Build on strong presence in developed economies and expand in high-growth markets Improve operating efficiencies and cash flowlxvii
TEAM ACHIEVERS MARKETING PLAN 36 Break-Even AnalysisThe Greens on the Go break even point, where revenue equals costs, is anticipated to occur at theconclusion of summer 2012. At this point, the product line will be entering the second marketinglife cycle stage of growth. Also occurring during this time, a second production run of theproducts will be shipping to stores. By this phase, the cost of production will be reduced as start-up costs were absorbed into the first marketing life cycle stage of product introduction.lxviii Expected Profit Margin Analysis Market Share and PenetrationIn order to refine Dole‘s marketing strategies for Greens on the Go, Achievers Marketing Teamwill conduct annual market share and penetration analyses. Such analyses will provide essentialsummative data on market sales, trends, competitor environment, aswell as, consumer preferences and product satisfaction. 2007 U.S. Food, Produce, & Fresh-Cut Produce SalesAchievers will use the following metrics (Est. in $ Billions)to generate market share data from boththe Greens on the Go primary targetmarket (children and their caretakers)and the product‘s secondary targetmarket (health-conscious, time-crunched, adults on the go): Revenue Market Share Unit Market Share Relative Market Share Brand Development Index Market Penetration Brand Penetration Penetration Share Source: Estimated by Dr. Roberta Cook, UC Davis, based on numerous public sources, incl. USDA, DOC, Cornell University and PMA.
TEAM ACHIEVERS MARKETING PLAN 37Dole currently possesses good information about the fresh-cut vegetable market in the U.S. andthe preferences of our product‘s potential customers. This information will be used to generatestrategies that will allow us to better understand our potential customers, their specific needs, andthe most effective ways to communicate with them.lxix See Appendix B for more informationregarding market share. Marketing BudgetFollowing the precedent set by the launch of the fruit cups product line, Dole has set aside $10million of the companys overall marketing budget for the launch of the Veggie Cups productline. Divided over the course of a 12 month window, Dole has just over $800,000 to spend eachmonth. Half of this budget is allocated towards television commercials. The next largestallocation goes towards maintaining ongoing social networking campaigns and a websitededicated to the product, which includes Vita-Men online games. The remainder of the budgetallocation is divided equally for webinar hosting, weekly radio ads, magazine ads, andconference participation. See Appendix C for marketing allotment. lxx Marketing Tool Frequency BudgetConferences 4 per year $52,083.33Magazine Monthly for 3 months $52,083.33Social Networking Weekly $104,166.67Radio Weekly $52,083.33Television Daily for 4 months $416,666.67Webinars 8 per year $52,083.33Website Ongoing $104,166.67 Monthly Total $833,333.33 Annual Total $10,000,000.00 Return on Marketing InvestmentThe potential risks and uncertainties that could cause the company‘s actual results to differmaterially from those expressed or implied herein include weather-related phenomena; marketresponses to industry volume pressures; product and raw materials supplies and pricing;electrical power supply and pricing; changes in interest and currency exchange rates; economiccrises; quotas, tariffs and other governmental actions; and international conflict.lxxi
TEAM ACHIEVERS MARKETING PLAN 38 Brand EquityBecause we aspire to retain and promulgate the reputable Dole brand equity that has been earnedover the last half century, we will establish feedback mechanisms to monitor the opinions of thevarious consumers – both current customers and those who have not yet bought into Greens onthe Go. This will help us to protect the goodwill and name recognition of the Dole brand thattranslates into greater sales while simultaneously allowing the Team to hone our marketingtactics and mechanisms.lxxiiBy utilizing openly visible online feedback forums on the main Dole website and posting theresults of voluntary customer satisfaction surveys – both electronic & paper mailings, we will beable to monitor the general attitude towards the brand via the product reviews. Having negativefeedback clearly displayed will also facilitate dialogues that will be used to improve the productlines. Polls and contests can be done when introducing new veggies and/or Vita-Men throughthis same media. Furthermore, this type of active engagement of the general consumerpopulation is highly desirable as it will: Increase company transparency and thus consumer and business (i.e., stock market) confidences, Improve both the speed and rate of feedback, Establish and reinforce the Dole brand community, and Allow the consumers a sales-reinforcing sense of shareholder empowerment as their recognized (and actualized) involvement will translate into product and brand loyalty via Dole-favorable purchasing patterns.lxxiiiAs the evidence clearly attests, the new Greens on the Go product line proposed will be aprofitable and timely new venture for the American population. Dole would do well to invest inthis convenient and healthy on-the-go alternative to traditional snacks. Time-crunched familiesand eco-consciousness are on the rise, and America is beginning to invest in combatting theglobesity epidemic. Dole only stands to benefit from providing this growing market share withthe perfect product options in eco-friendly packaging that they crave – viz., Dole‘s Greens on theGo.
TEAM ACHIEVERS MARKETING PLAN 39 AppendicesAppendix ADole Greens on the Go Veggie Cups Production Schedulelxxiv&lxxv
TEAM ACHIEVERS MARKETING PLAN 40Appendix B Item Share % % Annual ChangeU.S. Fresh-Cut Vegetable Side Dish 70.8 3.0Category Market Shares, by Key Meal Prep Vegetables 20.8 9.5Item, (% of Total Fresh-Cut Snacking Vegetables 8.4 (6.8)Vegetables & Sales), and Growth Total 100.0 3.3Rates, 2007/2008 Source: IRI, 52 Weeks ending August 24, 2008U.S. Fresh-Cut Vegetable Category Market Shares, by Key Firm, (% of Total $ Sales),2008 2008Private Label 22.7Mann‘s 7.7Apio 5.0Dole 3.9Grimmway 3.4Ready Pac 2.3All Other 55.0Source: IRI, 52 Weeks ending August 24, 2008.Consumers Reporting Diet “Could Be A Lot Healthier,” by Household Type and Income,At Home vs. Away From Home, 2008Food At Home Away From HomeHousehold TypeChildren 13 % 33 %No Children 11 % 26 %Income Level$35 - $49.9K 12 % 31 %Over $100K 6% 21 %Source: U.S. Grocery Shopper Trends 2008, FMI, 2008.
TEAM ACHIEVERS MARKETING PLAN 41Appendix C Greens on the Go Marketing Allotment Webinars Conferences Radio 6% 6% Website Social 6% 13% Networking 13% Magazine 6% Television 50%
TEAM ACHIEVERS MARKETING PLAN 42 Referencesi Company information. (2011). About Dole. Retrieved from http://www.dole.com/AboutDole/tabid/1255/Default.aspx#ii Dole. (2008). Mission statement. Principles. Retrieved from http://www.dolecsr.com/Principles/MissionStatement/tabid/406/Default.aspxiii Savedge, J. (2010, June 28). How much sugar do your kids eat? Womens Day. Retrieved from http://www.womansday.com/Articles/Health-Fitness/Nutrition/How-Much-Sugar- Do-Your-Kids-eat.htmliv Chi, S. (2009, October 8). Dole challenges Americans with largest prepackaged salad launch ever. Perishable news. Retrieved from http://www.perishablenews.com/print.php?id=0003047v United States Department of Health and Human Services, Centers for Disease Control and Prevention [CDC]. (n.d.). Eat a variety of fruits & vegetables every day. Fruits & veggies matter. Retrieved from http://www.fruitsandveggiesmatter.gov/vi USDA Marketing and Regulatory Programs. (n.d.). Retrieved from http://www.usda.gov/wps/portal/usda/usdahome?contentidonly=true&contentid= missionarea_MRP.xmlvii Saiontz, E. (2007, September 17). Dole salad recall due to E. coli contamination. Retrieved from http://www.youhavealawyer.com/blog/2007/09/17/dole-salad- recall/viii Dole Principles. (2008). Retrieved from http://www.dolecsr.com/Principles/tabid/401/Default.aspxix Ibid.x TRUETRAC. (2010). Retrieved from http://truetrac.com/amid-mounting-safety concerns- technology-helps-track-food-farm-tablexi Dole Food Company, Inc. (2009). Retrieved from http://phx.corporate- ir.net/External.File?item=UGFyZW50SUQ9Mzk2ODl8Q2hpbGRJRD0tMXxUeXBlP TM=&t=1xii Stillwell, S. (2010, August 6). Vegetable snacks for kids. Livestrong.com. Retrieved from http://www.livestrong.com/article/196174-vegetable-snacks-for-kids/xiii Weise, E. (2004, August, 11). Digging the baby carrot. Retrieved from http://www.usatoday.com/life/lifestyle/2004-08-11-baby-carrot_x.htmxiv Grimmway Farms. (n.d.). Our carrots. Retrieved from