Preliminary Marketing Plan
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J&J Snack Foods in Brazil
Preliminary Marketing Plan
By: LaKiesha Brown
Preliminary Marketing Plan
Table of Contents:
Page 1
Executive summary
After all the reviewing and planning and decision-making, J&J Snack Foods in Brazil is really starting to come together as a successful business venture. It will take a lot of money to build the 2 retail stores and kiosk/stands in Brazils largest city Sao Paulo, but J&J Snacks will be very successful because they are placed in a common area where there is not only Brazilians but so many tourist and all classes of wealth from the low class to the upper class.
We plan to sell thousands of snacks in our first year, resulting in at least $75,000 in sales revenues. By year 5, we expect to take revenues up to $335,000. Yes our plan is very aggressive and we have very high hopes for success, but our ambition is rationalized by the fact that Brazil gets to host two of the worlds premier events, the World Cup and the Olympics and the annual Carnival event. Also the fact that our snacks are so good and convenient sales during the regular year gives us so much confidence.
Our biggest dilemma was determining a reliable and efficient way to ship our product from United States to Brazil for as little cost as possible. We didnt want to pay a lot for shipping because we would have been required to reflect that in the retail prices of our product. We decided that shipping by air is best the way because its quicker however we will continue to look into other ways we can save such as shipping by Ocean in the near future. Our product will go straight from the dock at the Port of Santos to our stores stands in the mall of JK Iguatemi and vendors Walmart and Sams Club in Brazil where it will be available for purchase. Customers can pay by cash or credit, but we will not offer payment plans.
Our expenses may be high initially, but when Carnival, World Cup and the Olympics come around we will see very large profit margins off of our special edition “national team” items, which have a very high markup because they will become a collectors item. We are confident that our products will sell out on the shelves, at the stands and at all events. Everyone will know and love the J&J Snack Foods that is already successful in the United States in Brazil as well. The taste, the convenience, the fun and so much more will have our Snacks on top in Brazil. Lets go abroad on our new Journey!!!!!!
Page 2
Marketing Summary
The marketing plan
Our plan as J&J Snack Food is to continue to create delicious products however we want to expand in the Brazilian market. Our new direction for Brazilian Market is to take some of our similar products while mixing in a few different ones to open their eyes to all of our delicious products.
A. Marketing objectives
1. Target market( s) ( specific description of the market)
Our primary market will be all families within the low and middle income bracket since most of the population. Our secondary market will be of tourist and Brazilians who plan on attending special events such as Carnival, World Cup, or the Olympics.
Sales forecast years 1- 5
Sales
150,000
172,000
206,400
258,000
335,400
Expenses (Marketing, Shipping, Cost of goods)
75,000
86,250
103,500
129,375
168,187.50
Profit forecast years 1- 5
Page 3
Profit
75,000
85,750
102,900
128,625
167,212.50
Market penetration and coverage -We plan to increase our sales at least 5% annually (ex: year 1 15%, year 2 20%, year 3 25% and so on). With that being said we think our expenses will typically stay the same year to year however around during events we do plan to pay a little extra for advertisement and packaging. The breakdown above is what we typically plan to see over the next five years. Its not a huge profit as our products are in the United States but we plan to start off small and build from there. We have to keep in mind that this is a totally new product in Brazil and Im sure it will take some time to see the sales we want.
B. SWOT Analysis
Strengths
Affordable delicious snacks
Versatility in healthy and sweet
Great for almost any age
Convenient
Weaknesses
The products are new to the market and Brazilians are used to name brands
Brazilians love traditional foods
Opportunities
Promotion at special events such as Carnival, Olympics and World Cup
To build a stronger relationship between the U.S and Brazil by offering another product that they will absolutely enjoy
Page 4
To offer a larger variety of snack/convenient foods and drinks since Brazilians typically make homemade foods