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Assignment 1: Company Introduction,
 Market Segmentation, and Product
            Positioning




               10/26/2012
             William Creamer
             Mario Shannon
                MKT500
A. Write about your company.
Write a detailed company background. Address the following items at a minimum for full credit:
                            Create a strategic mission statement.


       Jump Start Health will be a mobile service unit and will not have a one central location.

Upon request or approval, Jump Start Health will serve as a vendor to such places as businesses,

church events, food drives, campus approved events, etc. Customers can find or follow us on our

commercial website: www.Jumpstarthealth.com or on Twitter and Facebook. Jump Start Health

is here to identify and develop useful products and/or services that are capable of providing for

consumer needs, sustaining economic stability, and consistently maintaining value in excess of

opportunity costs. Jump Start Health will meet the highest standards of excellence with superb

service and product offerings in a friendly, sparkling, and soothing atmosphere. The mission

statement centers us and serves as an ever-present reminder for all of us on why our institution

exists. This statement represents our interwoven tripartite mission of excellence in patient care,

research and education. Our mission is fundamental to our overall plan because it serves as the

guide post by which strategic decisions will be made. (Iacobucci, D. (2012).

Our vision sets a target for our organization and represents our 5 year long-term goal. The five-

year strategies contained in our strategic plan begin to address the gaps between where we are

today and what we aspire to become. The strategies will move us closer to achieving our vision

and are attached to metrics that we will review regularly to ensure that we are on course.




           Determine and decide upon at least one (1) foreign market for the product and

                        service. Provide your rationale for this market.
One foreign market is Korea that we can venture to we respect the cultural distinctions and

national interests of all countries in which we are trying to operate. We strive to achieve positive

recognition for our company within the community. Merck attaches particular importance to

its responsibility for safety. We have an obligation to respect the environment.


B. Write about your marketing plan.

    Discuss the potential audiences for a marketing plan and the needs of those potential
                                          audiences.

        We, the management and employees, are striving for entrepreneurial success we know it

starts with people. Our goal is to operate a worldwide business that produces meaningful

benefits for consumers, our market partners and our community. Through efficient research and

development, production and marketing of health food industry, we want to extend opportunities

to our customers. To achieve this, we focus our endeavors on business areas where we can

achieve a competitive advantage through the excellent quality of our products, systems and

services. Our objective is to establish permanent business relationships and not merely short term

success. On the basis of these principles, we operate as an independent and profit oriented

enterprise. We expect a high level of performance from each other, and reward this accordingly.

We wish to secure an acceptable return on capital for our investors. We will deal honestly and

constructively with one another. We regard open communication, both internal and external, as a

fundamental prerequisite for reaching an understanding of our common goals and for giving

meaning to what we do. We shall not be constrained by borders between business areas or

countries. All employees, male or female, have equal opportunities to develop their careers.

All of us make a personal contribution to the company‘s entrepreneurial success through our

mutual initiative, creativity and sense of responsibility. (Iacobucci, D. (2012).
Identify the marketing segment for the product and provide a rationale for this segment.

       In order to correctly identify where Jump Start Health will be most successful in the New

Hidden Valley, an analysis of its target market must be conducted. The demographic profile of

potential consumers as well as the psychographic trends and behavioral characteristics have been

delved into so that the type of consumer can be better identified. There are some basic factors

that must be understood for the target audience. These include the ability for the consumer to

have easy access to the product, the ability of the product to be distinguished because consumers

are not inundated with similar products, and the willingness of the consumer to pay the price for

the product to create a reasonable profit margin for Jump Start Health. These factors are among

the many that will distinguish Jump Start Health market from other companies as well as

determining where the site should be located and who marketing efforts should be aimed. The

psychographic trends help to understand the consumers better and to find out their attitudes,

beliefs and emotions towards Jump Start Health. Target consumers are health- conscious. They

are concerned with the condition of their bodies, through exercising regularly, eating right, and

advancing their knowledge by furthering their education. They are young, intelligent, single and

trendy. They live fast lives and rely on Health food restaurants to provide meals on the go, but

refuse to sacrifice their health for the convenience. They share common interests in music,

outdoor activities, exercises such as Pilates and yoga, and the current fashion trends. The

behavioral characteristics help me identify the factors that target consumers value the most.

Some factors that are viewed as important include the price, quality, and convenience in the

location. These are important because the consumer is looking for quality food with health

benefits, but is at the same time still concerned with location and price. Consumers will make

purchase decisions based on convenience but will want to make sure the food that they are

getting on the go is not going to slow them down later. Purchases will most likely become habits
that are grown from their routine, and will be made anywhere from two to three times a week.

(Iacobucci, D. (2012).


            Discuss the target market and provide a rationale for this target market.

        The demographic profile of Jump Start Health will help to determine characteristics of

who its potential consumers are. The consumers of Jump Start Health are predominantly female.

The age is ranged from 16 to 30. The ethnicity is mostly White/ Caucasian. The income level

ranges from middle class to upper class. The geographic location is in urban areas. The marital

status is mostly single. The education level ranges from high school degree to Bachelor’s degree.

After doing research for the target area it was found that the total population of the NHV, mainly

the Hintonburg, Timburg, and Bradford area, is around 72,806. Of the population around 34,873

are females which is 48% of the population, 63,167 are White/Caucasian which is 87% of the

population, and 42,220 are between the ages of 15-34 which is 58% of the population. These

statistics show that Jump Start Health has a large enough target market to be successful in this

target area if Jump Start Health is able to draw enough of a percentage of this market as its

customer base. There is high growth potential of the target market because the image of Jump

Start Health and the products they offer are popular within a younger demographic because it is

new and trendy. Once the edge lightens and the products become more main-stream, the market

will widen and will grow to include more consumers. The current target market is narrow and

focused on a certain segment of the population, but will later grow to include people with

different demographics, as well as those with different psychographic attitudes, beliefs and

emotions and varied behavioral characteristics. The objectives for this business plan are specific

goals which are achievable by Jump Startin the first three years of operation. Achieve more than
$288,000 in sales during the first three year of operations. Provide an alternative health choice

product to consumers at a 60% lower cost than competitors. Iacobucci, D. (2012).


           Perform a SWOT analysis (strengths, weakness, opportunities, and threats) for the

                                             company.


Jump Start Health strength’s is that in the New Hidden Valley there are not many other

companies that offer the similar products and specialize in health smoothies. This fact sets this

apart from other businesses in the area. Jump Start Health has a reputation for offering healthy

food, which is very different in compared to some of its competitors in the casual restaurant

segment. This franchise has also won awards based on its performance as a food truck retailer.

One of the weaknesses are that it takes more time to prepare and deliver food than traditional

food truck retailers and some people are not willing to take the time to buy the food if they have

to wait. Convenience is very important to customers and if they have to get out of their vehicle

and go inside to order and pick up food, this may deter their decision to pick Jump Start Health

over competitors. Another weakness is that its price is a bit more expensive than its competitors

in the fast food business. Opportunities of Jump Start Health are that it has the potential to grab

a huge market because of the fact that it is so unique and really there is nothing like it in the New

Hidden Valley. This opens up an opportunity for them to draw customers from a larger

demographic area. The fact that Jump Start Health strives to provide healthy sandwiches and

smoothies with the highest quality gives the franchise a great opportunity to capture the health

conscious consumers before another competitor can come in. The New Hidden Valley is still a

developing area but as it grows so does our potential to increase our customer base and bring in

more business. Every company must look at the external factors involved that may hinder the

further prosperity of their company. Some possible obstacles that Jump Start Health may
encounter would be the competition already in place that the consumers are used to. Another

major threat is that there is no brand name recognition of this business by consumers in the New

Hidden Valley. This is a serious problem because if consumers are not aware of the reputation

and do not recognize the franchise name then they may not feel comfortable trying something

new. It is obvious that Jump Start Health menu does not just cover the basic smoothie’s that are

healthy no added preservative but also offers many different delicious items that you can eat.


      Create the market position for your product and service. Explain your rationale.

       One main way that Jump Start Health hopes to attract customers is to use the advantage

of being a free standing building with visibility from the road. The team also looked at putting an

ad out in the Hintonburg News-Messenger which has a circulation of 4,273 and will cost Jump

Start Health $500 for 23 newsletters. Jump Start Health will send out these newsletters three

weeks prior to the grand opening. After the company has allowed its target market to

acknowledge the franchise, Jump Start Health will then have a newsletter placed three times

throughout the month, attached with coupons and specials during that time frame. Being close to

a mall, managers can send an employee around to pass out flyers there at a wage of $7.00 an

hour and $199 for 5,000 color flyers from Hyde-Flyers Inc. Through this the franchise will

further its advertising within the mall area for those possibly From out of town or not familiar

with the site location. Another strategy is to have a frequent customer card where you can earn

free smoothies and sandwiches after purchasing a certain amount. The total cost for these

customer cards is based upon the price of the card and is pending on how many customers sign

up and use their frequent customer cards. Jump Start Health will also offer a daily smoothie

special, in which they will take half off that particular smoothie that is designated to that

particular day. With these promotions Jump Start Health will attempt to sway customers to the
location through either frequent visits or specific days in which they can enjoy their discounted

smoothies. To ensure that the customers are happy the company will have comment cards out as

well as a phone number on the receipt that they can call if they are not 100% satisfied. I want my

customers to come back, therefore if there are specific changes that have been noticed through

the customers, it needs to know about them and at best change them to the best of the company’s

ability. As part of the marketing strategy it will make sure to advertise that it is a healthy, good,

high quality alternative to fast food and will strive to make every customer feel like they are its

most valuable customer, as opposed to the competition which primarily provides unhealthy food

with little customer service. Jump Start Health largely promotes a variety of healthy products for

the customers to select from. Along with health being a factor in the company’s presentation the

product will be presented in a quick and prestigious fashion. The company will propose tests for

its employees to produce a well established product at the fastest time. This will help with the

promptness of the product as well as the quality. This test will be held every three months in

order to maintain the efficiency of the employees. Iacobucci, D. (2012).
Reference
   http://biz.yahoo.com/ic/104/104025.html
   http://www.smoothiekingfranchise.com/strong-advantages.php
    Iacobucci, D. (2012). MM2 (2nd ed.). Mason, OH: South-Western Cengage Learning.

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Assignment 1 wk3

  • 1. Assignment 1: Company Introduction, Market Segmentation, and Product Positioning 10/26/2012 William Creamer Mario Shannon MKT500
  • 2. A. Write about your company. Write a detailed company background. Address the following items at a minimum for full credit: Create a strategic mission statement. Jump Start Health will be a mobile service unit and will not have a one central location. Upon request or approval, Jump Start Health will serve as a vendor to such places as businesses, church events, food drives, campus approved events, etc. Customers can find or follow us on our commercial website: www.Jumpstarthealth.com or on Twitter and Facebook. Jump Start Health is here to identify and develop useful products and/or services that are capable of providing for consumer needs, sustaining economic stability, and consistently maintaining value in excess of opportunity costs. Jump Start Health will meet the highest standards of excellence with superb service and product offerings in a friendly, sparkling, and soothing atmosphere. The mission statement centers us and serves as an ever-present reminder for all of us on why our institution exists. This statement represents our interwoven tripartite mission of excellence in patient care, research and education. Our mission is fundamental to our overall plan because it serves as the guide post by which strategic decisions will be made. (Iacobucci, D. (2012). Our vision sets a target for our organization and represents our 5 year long-term goal. The five- year strategies contained in our strategic plan begin to address the gaps between where we are today and what we aspire to become. The strategies will move us closer to achieving our vision and are attached to metrics that we will review regularly to ensure that we are on course. Determine and decide upon at least one (1) foreign market for the product and service. Provide your rationale for this market.
  • 3. One foreign market is Korea that we can venture to we respect the cultural distinctions and national interests of all countries in which we are trying to operate. We strive to achieve positive recognition for our company within the community. Merck attaches particular importance to its responsibility for safety. We have an obligation to respect the environment. B. Write about your marketing plan. Discuss the potential audiences for a marketing plan and the needs of those potential audiences. We, the management and employees, are striving for entrepreneurial success we know it starts with people. Our goal is to operate a worldwide business that produces meaningful benefits for consumers, our market partners and our community. Through efficient research and development, production and marketing of health food industry, we want to extend opportunities to our customers. To achieve this, we focus our endeavors on business areas where we can achieve a competitive advantage through the excellent quality of our products, systems and services. Our objective is to establish permanent business relationships and not merely short term success. On the basis of these principles, we operate as an independent and profit oriented enterprise. We expect a high level of performance from each other, and reward this accordingly. We wish to secure an acceptable return on capital for our investors. We will deal honestly and constructively with one another. We regard open communication, both internal and external, as a fundamental prerequisite for reaching an understanding of our common goals and for giving meaning to what we do. We shall not be constrained by borders between business areas or countries. All employees, male or female, have equal opportunities to develop their careers. All of us make a personal contribution to the company‘s entrepreneurial success through our mutual initiative, creativity and sense of responsibility. (Iacobucci, D. (2012).
  • 4. Identify the marketing segment for the product and provide a rationale for this segment. In order to correctly identify where Jump Start Health will be most successful in the New Hidden Valley, an analysis of its target market must be conducted. The demographic profile of potential consumers as well as the psychographic trends and behavioral characteristics have been delved into so that the type of consumer can be better identified. There are some basic factors that must be understood for the target audience. These include the ability for the consumer to have easy access to the product, the ability of the product to be distinguished because consumers are not inundated with similar products, and the willingness of the consumer to pay the price for the product to create a reasonable profit margin for Jump Start Health. These factors are among the many that will distinguish Jump Start Health market from other companies as well as determining where the site should be located and who marketing efforts should be aimed. The psychographic trends help to understand the consumers better and to find out their attitudes, beliefs and emotions towards Jump Start Health. Target consumers are health- conscious. They are concerned with the condition of their bodies, through exercising regularly, eating right, and advancing their knowledge by furthering their education. They are young, intelligent, single and trendy. They live fast lives and rely on Health food restaurants to provide meals on the go, but refuse to sacrifice their health for the convenience. They share common interests in music, outdoor activities, exercises such as Pilates and yoga, and the current fashion trends. The behavioral characteristics help me identify the factors that target consumers value the most. Some factors that are viewed as important include the price, quality, and convenience in the location. These are important because the consumer is looking for quality food with health benefits, but is at the same time still concerned with location and price. Consumers will make purchase decisions based on convenience but will want to make sure the food that they are getting on the go is not going to slow them down later. Purchases will most likely become habits
  • 5. that are grown from their routine, and will be made anywhere from two to three times a week. (Iacobucci, D. (2012). Discuss the target market and provide a rationale for this target market. The demographic profile of Jump Start Health will help to determine characteristics of who its potential consumers are. The consumers of Jump Start Health are predominantly female. The age is ranged from 16 to 30. The ethnicity is mostly White/ Caucasian. The income level ranges from middle class to upper class. The geographic location is in urban areas. The marital status is mostly single. The education level ranges from high school degree to Bachelor’s degree. After doing research for the target area it was found that the total population of the NHV, mainly the Hintonburg, Timburg, and Bradford area, is around 72,806. Of the population around 34,873 are females which is 48% of the population, 63,167 are White/Caucasian which is 87% of the population, and 42,220 are between the ages of 15-34 which is 58% of the population. These statistics show that Jump Start Health has a large enough target market to be successful in this target area if Jump Start Health is able to draw enough of a percentage of this market as its customer base. There is high growth potential of the target market because the image of Jump Start Health and the products they offer are popular within a younger demographic because it is new and trendy. Once the edge lightens and the products become more main-stream, the market will widen and will grow to include more consumers. The current target market is narrow and focused on a certain segment of the population, but will later grow to include people with different demographics, as well as those with different psychographic attitudes, beliefs and emotions and varied behavioral characteristics. The objectives for this business plan are specific goals which are achievable by Jump Startin the first three years of operation. Achieve more than
  • 6. $288,000 in sales during the first three year of operations. Provide an alternative health choice product to consumers at a 60% lower cost than competitors. Iacobucci, D. (2012). Perform a SWOT analysis (strengths, weakness, opportunities, and threats) for the company. Jump Start Health strength’s is that in the New Hidden Valley there are not many other companies that offer the similar products and specialize in health smoothies. This fact sets this apart from other businesses in the area. Jump Start Health has a reputation for offering healthy food, which is very different in compared to some of its competitors in the casual restaurant segment. This franchise has also won awards based on its performance as a food truck retailer. One of the weaknesses are that it takes more time to prepare and deliver food than traditional food truck retailers and some people are not willing to take the time to buy the food if they have to wait. Convenience is very important to customers and if they have to get out of their vehicle and go inside to order and pick up food, this may deter their decision to pick Jump Start Health over competitors. Another weakness is that its price is a bit more expensive than its competitors in the fast food business. Opportunities of Jump Start Health are that it has the potential to grab a huge market because of the fact that it is so unique and really there is nothing like it in the New Hidden Valley. This opens up an opportunity for them to draw customers from a larger demographic area. The fact that Jump Start Health strives to provide healthy sandwiches and smoothies with the highest quality gives the franchise a great opportunity to capture the health conscious consumers before another competitor can come in. The New Hidden Valley is still a developing area but as it grows so does our potential to increase our customer base and bring in more business. Every company must look at the external factors involved that may hinder the further prosperity of their company. Some possible obstacles that Jump Start Health may
  • 7. encounter would be the competition already in place that the consumers are used to. Another major threat is that there is no brand name recognition of this business by consumers in the New Hidden Valley. This is a serious problem because if consumers are not aware of the reputation and do not recognize the franchise name then they may not feel comfortable trying something new. It is obvious that Jump Start Health menu does not just cover the basic smoothie’s that are healthy no added preservative but also offers many different delicious items that you can eat. Create the market position for your product and service. Explain your rationale. One main way that Jump Start Health hopes to attract customers is to use the advantage of being a free standing building with visibility from the road. The team also looked at putting an ad out in the Hintonburg News-Messenger which has a circulation of 4,273 and will cost Jump Start Health $500 for 23 newsletters. Jump Start Health will send out these newsletters three weeks prior to the grand opening. After the company has allowed its target market to acknowledge the franchise, Jump Start Health will then have a newsletter placed three times throughout the month, attached with coupons and specials during that time frame. Being close to a mall, managers can send an employee around to pass out flyers there at a wage of $7.00 an hour and $199 for 5,000 color flyers from Hyde-Flyers Inc. Through this the franchise will further its advertising within the mall area for those possibly From out of town or not familiar with the site location. Another strategy is to have a frequent customer card where you can earn free smoothies and sandwiches after purchasing a certain amount. The total cost for these customer cards is based upon the price of the card and is pending on how many customers sign up and use their frequent customer cards. Jump Start Health will also offer a daily smoothie special, in which they will take half off that particular smoothie that is designated to that particular day. With these promotions Jump Start Health will attempt to sway customers to the
  • 8. location through either frequent visits or specific days in which they can enjoy their discounted smoothies. To ensure that the customers are happy the company will have comment cards out as well as a phone number on the receipt that they can call if they are not 100% satisfied. I want my customers to come back, therefore if there are specific changes that have been noticed through the customers, it needs to know about them and at best change them to the best of the company’s ability. As part of the marketing strategy it will make sure to advertise that it is a healthy, good, high quality alternative to fast food and will strive to make every customer feel like they are its most valuable customer, as opposed to the competition which primarily provides unhealthy food with little customer service. Jump Start Health largely promotes a variety of healthy products for the customers to select from. Along with health being a factor in the company’s presentation the product will be presented in a quick and prestigious fashion. The company will propose tests for its employees to produce a well established product at the fastest time. This will help with the promptness of the product as well as the quality. This test will be held every three months in order to maintain the efficiency of the employees. Iacobucci, D. (2012).
  • 9. Reference  http://biz.yahoo.com/ic/104/104025.html  http://www.smoothiekingfranchise.com/strong-advantages.php  Iacobucci, D. (2012). MM2 (2nd ed.). Mason, OH: South-Western Cengage Learning.