1. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 1
Marketing Plan
Group 2
Danielle Dawkins
Cheron Farley
Tashana Sprattling
Hong Guan
Yang Yang Yu
Jennhyfer Laforest
3. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 3
Executive Summary
This marketing plan in its entirety is a complication of semester long assignments
and research in which a marketing plan was developed for a consortium of Delaware
farms. Tilapia is the common name for nearly a hundred species of fish. Tilapia is a
popular fish with a mild flavor. In order to market this product a cohesive marketing plan,
promotion plan, and feasibility test were conducted in order to reach to our conclusion.
The tilapia being marketed in our plan is superior to its competitors in that our tilapia is
always imported fresh, pricing points, and the raising of our fish.
The focal point for this marketing plan is the promotion and selling of fresh fish
tilapia. Tilapia in a nutshell is an African freshwater cichlid fish that is widely popular in
areas of seafood and fish concerts. Tilapia fish are probably the oldest farm raised fish in
the world. Tilapia is popular because it is a mild flavored, white-fleshed fish that is
available throughout the year at a competitive price. Tilapia is a hardy herbivorous fish
that feeds on algae or small aquatic plant cells, and is primarily raised in freshwater
systems using cages, ponds, raceways or open water. Tilapia as a product has numerous
benefits to offer to consumers. Tilapia is a disease resistant fish with low cost. Tilapia is
an ideal choice for any segment of the market solely on price aspects. In this marketing
plan the focal target market is families with annual incomes of 50,000 or lower with
children located in the mid-Atlantic. Our targets have at least a high school degree.
In beginning the marketing plan the feasibility of tilapia in the market was first
looked at. Cross tabulations and break even analysis were financial methods used in order
to prove the validity and worthwhileness of tilapia for the target market. Distribution will
spread between various cities. The tilapia will be distributed to local fish markets in
4. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 4
North Carolina, Virginia, Maryland, Delaware, New Jersey, and New York. Overtime the
demand for tilapia will increase because of its quality, source of fish, and the freshness.
For the promotional advertising we choose to promote this business via the
following mediums of communication: newspaper, website, magazine, and salesperson.
The cost of each, in its respective order, is: $26,088.63 + $25,050 + $90,000 + $44,000.
This gives a total of $185,138.63 for our overall promotional budget. We would also like
to advertise through social media, as this way would be completely free. These five
choices are best for our promotional plan simply because we will advertise and promote
in more than enough ways, while still remaining under the total budget of $1 million for
the entire business investment.
5. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 5
STRATEGIC FOCUS
MISSION/VISION
Mission: Our mission is to show our customers how important it is to eat healthier
by providing a facility that reproduces, harvests, and sells its own fresh tilapia. We will
serve customers along the Mid-Atlantic region of the United States offering premium-
grown and premium-sold fresh fish.
Vision: The vision of Tilapia Consortium of Delaware Farms is to expand western
throughout the central, mid-western, and western zones of the United States. We will then
decide to “go global” based on our sales/profit performance in the United States. Our
business will expand overseas housing many franchises in numerous countries of the
world, serving as the lead company specializing in Tilapia.
GOALS
NON FINANCIAL GOAL
FINANCIAL GOALS
6. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 6
SWOT ANALYSIS
Strengths:
The company’s strengths would be a large population target, selling fresh fish vs.
frozen, and economies of scale. The target market the company is aiming for has a high
demand for fresh fish. The Mid-Atlantic is derived of Caucasians, African Americans,
Mexicans, as well as Asians who would contribute to buying fresh fish. Selling fresh
versus frozen fish will help attract more customers because of the healthy nutrients it
provides. Fresh is better than frozen because a customer will know where the fish is
coming from and how it was raised and fed versus having the frozen fish that was
imported in. Regarding economies of scale, the more fish the business can produce, the
lower the fixed costs will be making a profitable company.
Weaknesses:
The company requires high initial investment because the business will have its
own facility. According to the information we found online, the estimate initial
investment for a 6-tank tilapia facility is $301,575. The transportation cost(s) for fresh
shipments of tilapia to other regions of the U.S. would also be high. Because the
company will be selling fresh tilapia, the quality of the fish has to be guaranteed entailing
that the tank(s) require(s) specific qualities of air, water, and temperature. The company
is a new company in the fish market. No one is aware of the brand-thus this start-up
company has a weak brand right now. This company has a weak supply chain. It is facing
problems in its distribution process. Transportation companies are needed to help with
transporting the fresh tilapia. The company needs to build long-term relationships with
7. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 7
seafood markets, supermarkets, and restaurants in the Middle Atlantic region to amend
this issue.
Opportunities:
This company faces low competition. There are not a significant amount of fish
markets that produce/breed and/or sell only tilapia, nor are there a significant amount of
fish markets performing the above-listed with fresh, non-frozen tilapia. To further ensure
quality-sold tilapia, the company needs to contract with a local fish market to hire a
skilled fresh fish preparer. As a plan to reverse the continuation of a weak brand, the
company should host programs promoting tilapia awareness and knowledge. Because
tilapia is a disease-resistant fish, it will not pose a threat to human life. The company
needs to incorporate and instill this knowledge into a qualitative, attractive brand.
Threats:
There is inconsistency in the availability of fish supply. Being that tilapia is not a
popular fish, this means customers have a plethora of alternatives to choose from. The
average price of tilapia is not very high. So, people can afford it. However, the average
price of fresh tilapia is higher than the average price of frozen tilapia. So, if the economy
is experiencing a recession, price-sensitive customers will easily switch from buying fresh
tilapia to buying frozen tilapia. Technology that is not updated, efficient or effective will
pose a major threat for this company. Water quality is one of the most overlooked aspects
of pond management regarding fish production. Clay turbidity in ponds is one of the most
common quality issues addressed. However, several other variables like water temperature,
phytoplankton, photosynthesis and pH, carbon dioxide, alkalinity and hardness also
8. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 8
influence water quality. A transportation technological method is mandated to deliver fish
to each market. If the technology isn’t executed in the most efficient and effective way, the
fish sent to other markets will succumb to death as a result of being exposed to oxygen. It
is a private company, so there won’t be lots of regulations. However, there are state
regulations on the types of tilapia they can raise.
Target Market
The target market for this business should be families (with children) that gross
$50,000 or below a year, residing in the Mid-Atlantic region of the United States.
Families that make this amount of money are considered to be the working/working poor
social class. Being that tilapia is an inexpensive and healthy food source, these families
would contribute to the most profit of the business. Families that bring home more than
$50,000 would not even consider tilapia because of its “cheap” price. These families will
more than likely buy from higher-end fish markets that sell their tilapia for a higher price,
mistaking only this factor for better quality fish. As for the children being involved with
the buying power of the tilapia within a family making $50,000 or below, parents will be
aware that tilapia is a healthier source of fish being that it is disease-resistant and use this
knowledge as a reason to buy more tilapia for the sake of the kids’ health. This, in turn,
will drive the profits high because the kids are being involved.
9. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 9
MARKET ANALYSIS
Marketing and Productive Strategy
Our main goals for our business are increasing awareness among consumers,
providing information about the benefits of consuming fresh tilapia, reducing resistance
to buying the our product. Also, distinguishing our fish as a premier type of tilapia with
the best taste, at the best price in our region. We also will focus on increasing our sales.
Our strategy for achieving this goal increasing sales among women between the ages of
25-50. We choose to specify on that target market because most woman of those ages
have children and women they are more cautious about what they eat and what they feed
to their kids. Profitability is one of our major objectives, making sure that revenue stays
ahead of our cost of production. The key to achieving that is focusing on both our
production and operation while making a profit. The core of any business is the
employee. They are the face our company and they help the company retain our customer
and generate repeat revenue, and keeping our clients happy. With all these objectives we
hope to bring forward the marketing to help in the success of our company.
10. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 10
Target Market
Our target market is families with 50,000 annual incomes or lower with children.
According to the data from U.S. Census Bureau, the median household income in the
U.S. was $51,939 in 2013. People with higher income will choose more expensive fish
instead of tilapia, or they will go to restaurants instead of cooking by them. Our targets
have at least high school degree, because people with a high school degree or lower
consumed significantly less of any fish (Jahns, Raatz, Johnson, Kranz, Silverstein, &
Picklo, 2014). Tilapia is known as a healthy food. Tilapia contains all the essential amino
acids human body requires from the diet to help build proteins. The most important factor
is that tilapia is a rich source of omega-3 fatty acids, which are important for growth and
development in children and brain function (Coleman, n.d.). Families with kids have
higher demand for food that promotes health and well-being. They will consume fresh
tilapia for the health of their children.
11. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 11
Positioning Statement
For a household making $50,000 or less that wants to find an inexpensive fish that
is fresh and raised on a farm, then purchasing tilapia is best. This fish, when fresh,
provides you with a healthier choice in your life style. A household making $50,000 or
less would prefer to purchase tilapia and on a regular basis than a household making
$50,000 or more. This is because tilapia is very inexpensive as opposed to the price(s) of
other kinds of fish. Because of the inexpensiveness of this fish, a family making over
$50,000 would prefer to buy an expensive kind of fish simply because the price of tilapia
would seem too cheap for them to buy. Because they make more money than a family
making $50,000 or less, they can afford to buy not only a pricier fish but a much tastier
fish as well.
Unlike imported and/or frozen fish, the fresh tilapia grown here will provide a
sense of familiarity. Because this company will mate the fish to increase production and
harvest them, consumers and customers will know how the tilapia is raised. This includes
what it is fed and any contamination it may have that may lead to food poisoning if not
harvested properly. If the fish were brought in from local waters and/or ocean
contamination would be of very high concern.
The factors that are influencing the consumer to purchase this fish are: that it is
affordable, healthier and that it is fresher compared to the frozen tilapia. We should
segment the market by looking at who purchases this type of fish based off income. We
need to collect statistics on the income that generates the most sales in purchasing tilapia.
At Wal-Mart, one brand of fresh tilapia fillets run for around $6/lb. For this weighted
price, three fillets are included. Another brand sells 2lb bags of frozen tilapia for $7.
12. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 12
Feasibility (Financial Analysis)
SPECIFIC COST COST (IN DOLLARS)
Promotion (yearly) $185,138.63
Refrigerated truck (one-time cost) $24,300
Distribution (yearly) $10,400 ($200 weekly, once a week
* 52 weeks in a year)
Employees (yearly) $514,000
Facility (one-time cost) $48,000
Machinery (one-time cost) $180,000
TOTAL $961,838.63/$1M
As previously discussed, our total promotion costs are $185,138.63. The cost of
three refrigerated trucks total is $24,300 ($8,100 x 3). We agreed on three delivery trucks
because we would be able to evenly distribute the states into three main sections based on
location. One truck would deliver only to the top half of North Carolina, another
delivering only to West Virginia and Virginia, and the last truck delivering to
Pennsylvania, Delaware, some of New York, Connecticut, and New Jersey. This
distribution would be beneficial because if this business was to only have on truck, we
would have to factor in more mileage which, in turn, would mean more gas money and
longer traveling distance for the truck drivers. The kind of truck is a 2006 Isuzu NPR 16’
Reefer Van Refrigerated Truck that will be purchased off eBay. This would bring a total
13. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 13
distribution (gas) cost to $10,400. There will be fourteen total employees: two fish
butchers making $30,000 salaries, two technical trainees for operation of the machinery
making $52,000 salaries, five workers that would monitor the fish tanks and collected
data of the machinery making $30,000 salaries, the three truck drivers making $50,000
salaries, and two overall cameramen observing the cameras in the entire facility making
$25,000 salaries. We are hoping to find a facility of 12,000 square feet where we can
lease for a total of $48,000 somewhere in Delaware. The machinery needed will cost
$180,000. This gives a grand total of $961,838.63 for start-up costs of the business in its
entirety.
We feel that these costs are beyond feasible since this is a new business that has
yet to actually be established yet. Further technologies (advancement), newer vehicles,
and increased salaries will emerge in the later years as the business success proves itself.
15. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 15
Distribution
The companies’ channel of distribution is we are the producers of the fish then it
will be distributed among different stores in varies cities. We feel that this method will be
the most profitable because it gives our customers a variety of places to get our product.
The target market that we are achieving to reach is the Mid-Atlanta region, with that
being said we will distribute our fish to local fish markets in North Carolina, Virginia,
Maryland, Delaware, New Jersey and New York. With the mass-producing of fish, we
will deliver the fresh fish weekly to our fish markets in the various cities by a refrigerated
truck.
Over time the demand for the fresh tilapia will increase because of its quality,
source of the fish and its freshness. The demand will be at an all-time high, which we will
be well equipped for the demand. Since the fresh tilapia will be stationed in each state we
are targeting the profit will be greater than having it stationed in one main location.
17. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 17
Price
TYPES OF FISH
STORE FreshTilapia FrozenTilapia Swaii
Walmart 2 lbs $6.98;
3 lbs $7.92
1lb $4.98 $2 lbs $6.98
Wholey’s 2lbs $24.00 N/A N/A
The Fresh
Lobster
Company
1lb $17.50 N/A N/A
Our selling price for 1lb of fresh Tilapia is $6.50, where the percent
markup on costis: (1+Markup) x (UC): (1+.50) x ($4.334)=$6.50. The
percent markup on selling price is: UC/(1-Markup): $4.334/(1-.50)= $8.668.
18. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 18
Cross Tabulations
Tilapia/Income Eat Tilapia Don’t eat Tilapia
$0---$30,000 7 1
$30,000---$50,000 8 3
$50,000---$70,000 0 2
$70,000---$100,000 4 0
Total 19 6
Tilapia/Children Eat Tilapia Don’t eat Tilapia
Have child 9 2
No child 10 4
Total 19 6
Tilapia /Race Eat Tilapia Don’t eat Tilapia
Caucasian/European 3 0
Asian 5 0
African American 5 4
Hispanic or Latino 3 1
Native American or
American Indian
0 0
Other 4 0
Total 20 5
19. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 19
FINANCIAL DATA AND PROJECTIONS
Past Sales Revenue
Because this business has not been established yet, there are no past
sales revenues; therefore, the past sales revenue is $0.
Projected Sales Revenue
WeeklyProjectedSales/Revenue Forecasting
Estimated Fillet Tilapia Sold: 300 lbs
Average Sales per order $6.50 $1,950
Estimated Whole Tilapia Sold: 90 lbs
Average Sales per order $6.50 $585
TotalProjectedSales $2,535
Net Sales $2,535
21. Running head: TILIPIA CONSORTIUM OF DELAWARE FARMS 21
BIBLIOGRAPHY
References
(2002). Aquaculture in North Carolina: Tilapia. North Carolina Department of
Agriculture and Consumer Services.
Transportation of Fish and Fish Products. (2015). Retrieved from Food and Agriculture
Organization of the United States: http://www.fao.org/fishery/topic/12327/en
