2. List of Contents
1. History
2. Objectives
3. Methodology
4. Project Plan
5. Macro Analysis Summary
6. Micro Analysis Summary
7. Spanish Market Research
8. Fitó Value Curve
9. Conclusion
10.Next Steps
11.Recommendations
12.Annex
2
3. History
Hobby Seed Division Marketing Mix
– Product
• EuroGarden & Semillas Fitó
– Price
• Semillas Fitó – 1,50€/sachet + VAT
• EuroGarden – 1,00€/sachet + VAT
– Promotion
• Exhibition
• Point-of-Sale
• Education
– Place
• Modern Channel
• Traditional Channel
This is a brief overview of the Hobby Seeds Division’s current Marketing Mix – the
key being the strategy diversification between Eurogarden and Semillas Fitó
4. Objectives
• Engineer Growth Plan for the Spanish Market
• Increase Brand awareness
• Increase market share
• Increase revenue
• Create Recommendations for Semillas Fitó’s
Marketing Mix
• Compare prices with competitors
• Suggest new products
• Compare CSR and Online Marketing Tactics
• Find innovative new channels
Recommend actions for Semillas Fitó to consolidate market leadership in Spanish
market. 4
5. Project Plan
Phase 1
Phase 2
Research 4 major
countries macro
Research Spanish
Phase 3
and micro
situation market and
Analyze
Phase 4
competitors
successful
strategies taken by Create
competition recommendations
based on findings
By analyzing the four top Home & Garden markets, we created recommendations
based on the successes and weaknesses of the major global competitors 5
6. Methodology
Macro Analysis: Current Situation & Marketing
Prioritization: Trend in Countries: Proposal for
• Consumer
• Inhibitors • Macro trends Fito:
lifestyle
• Drivers • Major • Brand
• Indicators
Competition • Promotion
• Channel
Creativity Analysis: and Price
Prioritization:
Micro Analysis: • Top • Analyze online
• Market share companies policy
• Top • Marketing • Compare Product
competitors Mix Selection
Current Situation In
Fito Business Understanding: Spain
• Analyze Fitó’s current Marketing Mix • Observe Spanish
consumer behavior
We divided the Methodology into 2 parts, The Macro & Micro. Then we develop the
marketing proposal based on our insights. 6
7. Macro Analysis
Hobby Garden
(USD Millions)
Seeds Market
Drivers: 7 12 8 10
• Trend in Healthy
Eating
• School Gardens
Inhibitors:
• Global
Recession
• Available
Growing Space
Growth
Social trends are driving growth, while macro economic pressure is threatening it.
Source: Nursery & Garden Stores in the US. IBISWorld Iexport Industry Summary 44422. November 2012
“Gardening in Japan”. Euromonitor International. May 2012
“Gardening in France”. Euromonitor International. October 2012.
8. Micro Analysis
Burpee Takii Suttons Vilmorin/ Oxadis
Product Variety
Matching 478 Vegetable seeds 99 Vegetable Seeds 427 Vegetable seeds unknown
with Fito 296 flower 70 Flower Seeds 463 Flower seeds
Different 5 Seed Categories 2 categories 11 Seed Categories unknown
Products/ 4 Families 8 Families
Families
New varieties 29 vegetable 12 Flower 14 Vegetable unknown
19 flower 23 Home garden 10 Flower
Price Levels .70-1.5 euros Not found ± 2.5 euros Varies unknown
Depends on Location upon seed
Sales Channel Walmart and garden Not found Garden Centers and unknown
centers online
Marketing
Product Variety and Marketing activities plays important roles in consumer market to
increase brand awareness. 8
9. Spanish Competitors
Product Variety Batlle Rocalba Productos Flower
Matching with Fito 222 Vegetable seeds 327 vegetable seeds 73 vegetable seeds
160 flower seeds 173 flower seeds 36 Flower
13 grass 26 grass 4 grass
Different Products/ 6 seed categories 3 seed categories 7 Seed categories
Families 2 families 4 families
Price Levels 1.5-1.8€ 2€ 2€
Sales Channels Las Ramblas Las Ramblas Las Ramblas
Bordas (Hospitalet)
Marketing
Capillarity in Country
Productos Flower has the most comprehensive marketing strategy of all the Spanish
companies – they are Semillas Fitó’s most direct competition in the Spanish market.
10. Spanish Market Research
Company: FITÓ Company: BATLLE
Where: El Corte Inglés Where: Jardineria Bordas (Hospitalet)
Price: 2,00 € Price: 1,50 €
El Corte Inglés is selling only Fitó seeds (for 2,00€) and Jardineria Bordas
(Hospitalet) is selling only Batlle seeds (for 1,50€).
10
Source: Stores visits
11. Spanish Market Research
Company: FITÓ Company: BATLLE
Where: El Corte Inglés Where: Jardineria Bordas (Hospitalet)
Price: 9,40 € (30m2) Price: 9,95 € (40 m2)
El Corte Inglés is sellling Turf grass from Fitó for 9,40€ (30m2) and Jardineria
Bordas is selling it for 9,95€ (40m2)
11
Source: Stores visits
12. Value Curve
Reduce Raise Create
120
Semilla Fito
100
High
80 Burpee
60 Suttons
40
Vilamorin
20
Takii
Low 0
Price Channels Product Social CSR
Lines Media
Semillas Fito’s competitive strength lies in its high quality product, however,
Semillas Fito could redirect efforts to become more consumer oriented.
13. Conclusions
• We recommend that Semillas Fito invest in Brand
• Rebrand Product Lines (ex.: Mediterranean Kitchen, Kids Line, Christmas Line)
• CSR Policy
– Employee welfare
– School/Public gardens
– Community Activities
• Update Point-of-Sale
• To maintain competitive advantage, focus on Promotion
• Loyalty Programs and Gift Certificates
• Update your marketing merchandise to remain global
• Buzz Gardening to develop Gardening Market
• Beware of competition in Price and Channels
• Online presence
– Online Sales
– Social Media (Facebook, Twitter, YouTube)
– Store Locator
– SEO
• Price
• Promotional Prices & Discounts
Suggestion for the future recommendation, Marketing Strategies and Competitive
advantages, and Pricing and Distribution 13
14. Next Steps
• Sell online
• Product Diversification
• Develop CSR Activities
• Community Outreach
From all the marketing analysis that we obtain from competitor, we suggest Semillas
Fitó to conduct several strategies to be able to compete in global market 14
15. Recommendations
Sell online Suttons
• Put catalog online
• Make products easily searchable
• Create Shopping Cart & Checkout
• Offer personalized recommendations
• Social Media Marketing using a
contracted intern
• 4% of Home & Garden Sales in Spain are online,
but 60% of consumers conduct online research Burpee
before purchasing
• Online search for home & garden grew 49% year
over year from 2011 to 2012
The top priority for Semillas Fito should be to establish a new online sales channel in
order to meet customers where they are and stay up-to-date with new trends.
Sources: http://www.consumerbarometer.com/#?app=home&viewMode=0, http://www.google.com/trends/
16. Recommendations
Product Diversification
• Selling gifts, flowers, and other peripherals
• Rebranding product lines to be more consumer
oriented (Mediterranean Kitchen, Kid’s
Garden)
• Suttons has “Fun to Grow- Seeds for Kids!” to
encourage life long gardening and educate in line
with Stage 1 of National Curriculum
• Burpee & Suttons have Seasonal Gift Offerings to
capture the holiday spikes in sales
By rebranding product lines & focusing on consumer demands, the Hobby Seed
Division can become more consumer-oriented 16
17. Recommendations
Develop CSR Activities
• Educate students
• Create an Employee Wellness Program
• Provide the “how to plant” videos
• Build the good brand image to the public
• Gives employees a clear understanding of
what is their responsibility and welfare.
• Gives the users directly information and
show it visually
A strong CSR Policy benefits companies in branding and retaining happy customers
and employees 17
18. Recommendations
Community Outreach
• Sponsor Patio Competition in Southern Spain
• Partner with a Social Outreach Class to develop
gardening programs in residence and prisons
• Buy a packet of seeds, donate a packet of seeds to a
developing country
• Córdoba’s Batalla de Las Flores is government
sponsored competition attracting citywide
participation and tourism
• Schools participate in student outreach programs &
need projects
• Allowing your customers to “do good” by consuming
your product is huge CSR trend (TOMS, Warby
Parker)
Community Outreach builds brand, contributes to social responsibility, and generates
goodwill 18
20. Country Summary
Competitors
Environment
Overall, the Opportunities & Strengths outweigh the Threats & Weaknesses of the U.S.
market, because although you must have a strong consumer brand to be a player,
consumer trends are favorable to a growing gardening market.
20
“Gardening in the United States”. Passport. Euromonitor International. July 2012.
Gardener’s Supply Customer Service. Direct Email. 12.11.2012.
21. Country Summary
Competitors
Environment
The use of technology allow the UK company own special strategies when competing
with other competitors, but the limited of gardening space and low consumer
confidence can bottleneck these companies growth.
21
Source: “Gardening in the United Kingdom”. Passport. Euromonitor International. July 2012.
22. Country Summary
Competitors
Environment
The traditional retail marketing make the France company close to their
consumers, but the lack of official website and online store are the most seriously
problem when they are competing in the global market.
22
“Gardening in France”. Passport. Euromonitor International. July 2012.
23. Country Summary
Competitors
Environment
Because of the focus on CSR and the shifting of targeting market, the JAPAN
company exist unique strategies. But the increased taxes is a huge barrier to new
entrants.
23
“Gardening in Japan”. Passport. Euromonitor International. July 2012.
24. Main Competitors
• Online marketing is provided by the way of e-Commerce
Similarities • Across country network to provide directly information
to their customer
• Increased competition situation
• Expiration of key product patent
• CSR activities
•
Differences •
The investment on marketing as well as brand image
Global partnership is different from company to
company
• The abilities of manage CPR(crisis public relation )
• The specialist of products and solutions that different
companies provide
American companies invest heavily in patenting, marketing and advertising, and e-
Commerce, but they have varying degrees of global partnership & CSR 24
25. Main Competitors
Similarities • Take advantage of social media especially on the use of
website and e-Commerce abilities
• Online store as well as traditional Retailer store
• Increased competition situation
• CSR activities
• The investment on market research and market activities
Differences • Global partnership
• Independent & Subsidiary
The U.K. companies are quite advanced in the online marketing, sales, and social
media, but they invest less on product development 25
26. Main Competitors
• Gift Certificates & Loyalty card
Similarities • The investment on marketing and creative marketing
solutions are needed
• Increased competition situation
• CSR activities
•
Differences •
No Official Website & No Online Store
The investment on market research and market activities
• Global partnership
• The abilities of manage CPR(Crisis Public Relation )
Vilmorin is currently re-vamping its Oxadis brand to increase their consumer
oriented marketing and web promotion 26
27. Main Competitors
Similarities • Take advantage of social media especially on the use of
website and e-Commerce abilities
• Emphasis on the credibility of its product by showing
both the company’s longevity and the seeds’ renowned
• The values of sustainability, longevity, innovation, and
social wellbeing in its PR strategy
• Global partnership when facing the expanding issues
Differences • SKATA Specialized in online shopping for home
gardeners
• Across country network to provide directly information to
their customer
The Japanese companies emphasize CSR and their responsibility to their
communities and employees 27
Editor's Notes
Wisnu
Add gantt
Wisnu
18% of people purchasing online in Spain4% Garden Equipment, DIY, and tools are purchased online