Marketing plan

SECTION 4: MARKETING STRATEGY

4.1. DEFINITION OF COMPETITION

Enzo’s at Home operate in the ready-made meals market. The diversity within this market makes it extremely competitive. McCain Foods dominate the Australian ready-made meals market with a market share of 16.37 percent. In addition to McCain Foods, there are three other direct competitors; Cucina Cibo, San Remo, and Latina Fresh. Whilst McCain Foods offer a range of cuisines, Cucina Cibo, San Remo and Latina Fresh specialize in Italian cuisine.
Each of the competitors is well-established brands in Australia, utilizing the same distribution channels as Enzo’s at Home. One important point of difference between Enzo’s at Home and two of the competitors, namely McCain Foods and San Remo is that they operate in the frozen, rather than fresh category. As mentioned in Section 1.2 of this report, the frozen ready-made meals category is only expected to grow in value by 17.38 over the next 5 years. This statistic reflects changing consumer values, in that individuals are becoming more health conscious, opting for fresh and preservative-free meals.
It is, therefore, imperative that Enzo’s at Home implement the below-mentioned recommendations, increasing brand awareness in order to better position themselves against these competitors in the ever growing ready-made meals market.

4.2. MARKET DEMAND

Efforts to penetrate the existing market of pre-made Italian meals will raise awareness and generate secondary demand. Since Enzo’s at home is a local SA company that values or takes pride in being a family owned business with competitive pricing, revenue can be generated as well as awareness. These qualities can set Enzo’s at home apart from competitor brands. This can also be accomplished or achieved by increasing Enzo’s marking budget to raise awareness of their competitively advantaged product that has desirable qualities such as taste at a low cost.

4.3. DESIRED IMAGE

One of the vital concerns Enzo’s ristorante has had trouble with Enzo’s at home is its low brand awareness as wells a low brand recognition. Therefore, we can strongly assume that an if Enzo decides to invest into their marketing or branding budget it can heavily aid in this family owned business future success, generation future possible cash inflow.
Enzo’s at home must show the consumers their product stands out from the rest in both a taste and quality sense. Especially because the price for Enzo’s at home is can be seen higher than the average price of pre-made Italian meals. However, Enzo’s at home as a large variety of Italian meals which can only be a positive factor in this organization’s success.
Furthermore, Enzo’s at home packaging must have many inviting qualities to new customers or consumers. Microwave safe plastic which is reliable sturdy to hold contents inside properly. Nutritional Information in clear block letters with a health star rating to ensure food quality is top notch. Nevertheless, Enzo’s brand name to be visibly printed on the package itself.
Finally, Enzo’s name itself is an easy name to recall for pre-made home cooked meals. The moment the awareness of Enzo’s at home picks up as well as Enzo’s Ristorante, both brands will benefit from one another from the same name “Enzo”. Furthermore, if customers at the restaurant have had a good dining experience and enjoyed the food they will be more likely to purchase Enzo’s at home despite the slight increase in price compared to other pre-made meals.

However, if the consumer has not been to the restaurant, a slogan as mentioned in the below section “5” describing or advertising its amazing quality should be printed on the package. Highlighting its unique or distinctive quality.

4.4. PROMOTIONAL STRATEGY

Strategies considered for Enzo’s at Home included a push and pull strategy. The push strategy involves Enzo’s using a wholesaler, and there product being pushed by that wholesaler to the consumers. The pull strategy involves Enzo’s at Home directly interacting with potential customers in the hope that they then approach one of the various outlets that stock their products.

A push strategy was rejected as it gives Enzo’s at Home a lack of control over communication between Enzo’s at home and their customers. Instead, a pull strategy will be used the use of a pull strategy helps Enzo’s at Home stimulate consumer demand for their by using promotional strategies that will be outlined in the communication theme. The use of a pull strategy is also in keeping with Enzo’s current strategy of not using wholesalers to distribute their product.

4.5. COMMUNICATION THEME

A constant theme that Enzo’s at Home should try and reinforce their image as a brand of high quality.
In support of this, survey data revealed that quality was also seen as important when making a purchase decision with 57.7% of respondents seeing it as very important when making their decision on whether or not they should buy a product.

4.6. KEY FOCUS

The marketing strategy outlined in this report has been specifically prepared for the purpose of increasing brand awareness in Adelaide, South Australia. A key focus of this strategy is to improve the brand association and recognition with Enzo’s Ristorante. This will allow Enzo’s at Home to maximize their marketing potential, subsequently allowing them to implement a low-cost marketing strategy. However, as noted in Section 1.1, Enzo’s at Home also seek to increase brand awareness interstate and subsequently reduce wastage. It is outside the scope of this plan to consider these issues in detail, however, reduced wastage will ultimately be a direct result of increased brand awareness.

SECTION 5: ELEMENTS OF MARKETING MIX

5.1. PRODUCT

5.1.1. PRODUCT FEATURES

Quality

Enzo’s at Home products must keep up similar quality to that of Enzo’s Ristorante. Consumers are paying a slightly higher price for Enzo’s at Home products than ready made meals. Therefore Enzo’s at Home meals must prove themselves to be the superior product. If this does not remain the case than sales will most likely diminish as consumers will vie for the cheaper options available.

Range

Various products and pastas will be available to keep consumers coming back to try another Enzo’s at Home meal. In addition to this some people have very specific desires when it comes to Italian food, they may only like spaghetti bolognese or lasagne for example. So it is important to not exclude this section of the target market and provide a wide range of products to satisfy as many consumers as possible. Enzo’s at Home should also continue to allocate shelf space for Enzo’s at Home gluten free range. As the requirement for gluten, free options is nearly becoming essential for products to offer.

Sizes

Various serving sizes of Enzo’s at Home products will need to be made available in order to cater to the needs of different size families. Servings from 1-2, 4-6 and 6-10 are recommended.

Maximum Permissible Production Cost

For a profitable restaurant, food costs should be at around 28-35% of gross income. Therefore by using the approximate cost of various Enzo’s at Home products the maximum permissible production cost can be estimated through the use of this percentage (Retail Price x 0.35).

Small (Serves 1-2) - $3.50 per unit

Medium (Serves 4-6) - $7.00 per unit

Large (Serves 6-10) - $11.2 per unit

5.1.2. BRAND NAME

Enzo’s at Home is a suitable and easy to remember brand name for these products. Once the awareness of Enzo’s at Home as an Enzo’s Ristorante creation is increased, the benefits of this brand name will be more obvious. It clearly describes that it is Enzo’s food which can be eaten at home. The most important feature of the name being the connection to Enzo’s as consumers will then be more willing to spend the money to buy Enzo’s because it will be recognized as a restaurant quality product.
This name is effective on those who do know of Enzo’s Ristorante, however for those potential customers who have not, they may respond better to an accompanying slogan which highlights the quality of the food. The slogan “Restaurant Quality Food in Home Quality Comfort” could be used to make consumers who are unaware of Enzo’s more confident about purchasing Enzo’s at Home products.

5.1.3. PACK

Structural Criteria

• 
  Contents of packaging must remain visible to the customer, this gives Enzo’s at Home an edge over other ready made meals in the industry
  
• 
  Microwave/Oven Safe
  
• 
  Plastic seal on top must be removable and pierceable to ensure safe/clean at home cooking
  
• 
  Base of Packaging and top seal must be strong enough to support contents up to 2.5kg for large size meals
  
• 
  All nutritional information, logos, cooking procedure, etc. must be printed onto a sticker and then placed on inner packaging to provide a barrier from ink ingredients
  
• 
  The outer sticker must be no more than 25% of the surface area on the front of the packet. Keeping the fresh food visible is the main priority.
  

Graphic Criteria

• 
  Incorporate Enzo’s Ristorante logo to improve consumers ability to connect Enzo’s Ristorante with Enzo’s at Home
  
• 
  Use colourway of Enzo’s Ristorante logo to again improve the consumers recall of Enzo’s at Home being associated with Enzo’s Ristorante
  
• 
  Include slogan ‘Restaurant Quality Food in Home Quality Comfort’ on front of packet under Enzo’s at Home logo
  

Production Costs
Year 1 :
Annual Revenue $575,000

Total Costs (approx.) 35%

$201,000

Production Costs (approx.) ⅓ or 33%

$66,330
Year 2:
Annual Revenue (from Section 3.1) $600,000

Total Costs (approx.) 35%

$210,000

Production Costs (approx.) ⅓ or 33%

$69,300
Year 3:
Annual Revenue (from Section 3.1) $700,000

Total Costs (approx.) 35%

$245,000

Production Costs (approx.) ⅓ or 33%

$80,850

5.2. DISTRIBUTION

5.2.1. DISTRIBUTION POLICY

Curranty Enzo’s has a selective distribution policy, meaning they only distribute to select groups.
5.2.2. DISTRIBUTION
Currently, Enzo’s at Home products are sold through a number of different retailers including supermarkets, fruiters, and delicatessens. Furthermore, Enzo’s at Home engage in disintermediation, selling their products directly to consumers through

Enzo’s at Home outlets as stated in section 1.4.

However, we recommend expanding their distribution strategy to include brands such as Coles, Woolworths, Aldi and small convenience store. As stated in section 1.3. analysis of marketing environment Coles, Woolworths and Aldi currently hold a third of the market share in Australia, by including these brands in their distribution strategy Enzo’s at Home will have access to a greater number of consumer than they currently have and will also increase brand awareness.

5.3. PRICING

5.3.1. PRICE POLICY

The pricing of Enzo’s at Home throughout the plan will be crucial in developing a good relationship with consumers. Pricing too low may suggest a lack of quality and therefore consumers will have a different connotation associated with Enzo’s at Home than intended from this marketing plan. On the other hand pricing too high, whilst returning a good profit figure per unit. will likely result in a decrease in sales as consumers will vie for a cheaper option and therefore net profit overall will see a large decrease.
Year One:
Whilst Enzo’s at Home is still increasing its awareness about its connection to Enzo’s Ristorante it is suggested that retail prices be lowered by about 10% . This will keep Enzo’s at Home in the pricier category but should now be cheaper than some other high-end competitors like Cibo. This will ensure that the perception of Enzo’s at Home being a high-quality product will not diminish but will aid in increasing the number of sales per year, thus getting Enzo’s into more homes and increasing the number of new and repeat customers.
Year Two:
Now that a greater number of customers have been reached and loyal customers have been formed by the pricing strategy in year one the retail price per unit can return to what it was before the implementation of this marketing plan. Ideally, customers will continue to buy the product and sales per year will not diminish.
Year Three:
This year provides Enzo’s at Home with the opportunity to raise prices a further 10% making it 10% more expensive than it is currently. However now the Enzo’s at Home is well established as connected to Enzo’s Ristorante and is recognized as the superior product over competitors. So again ideally sales won't diminish too much and Enzo’s at Home will now be more profitable than prior to the implementation of this marketing plan. Thus this will give Enzo’s at Home the freedom to engage in more advertising for the business if so desired.

5.4. PROMOTION

5.4.1. PROMOTION POLICY

Since Enzo’s at Home have a market budget of zero, they need to rely more on promoting Enzo’s at Home through Enzo’s Ristorante. The purpose of this section is to ensure, through promotional activity, that consumers build an association between Enzo’s Ristorante and Enzo’s at Home. Promoting through Enzo’s Ristorante will allow the company to expand their consumer base, reaching more customers who may be interested in buying the sub-brand products. In order to reach consumers who may not purchase from Enzo’s Ristorante, promotional campaigns with retailers will be beneficial. Successful implementation of promotional strategies will increase brand awareness and subsequently reduce product wastage.

5.4.2. CONSUMER COMMUNICATIONS

5.4.2.1 Consumer Promotion

Working with retailers, Enzo’s at Home can implement promotional campaigns to increase awareness and successfully gain a competitive advantage.
Recommendations:

• 
  Tastings in Supermarkets.
  
  • 
    This will engage the customer and allow the employees to promote the product range whilst the customer is in store.
    
• 
  Retailer Discounts
  
  • 
    This will be implemented by the retailers themselves as it will depend on the amount of stock the particular retailer has purchased from Enzo’s at Home.
    
  • 
    The discount amounts can be minimal as the very nature of having a discount sign will draw customer attention to the product.
    
• 
  Tastings at University Campuses
  
  • 
    As identified in the survey conducted by G.A.L.A.N.O.S and outlined in Section 1.5, students are the largest consumer of ready made meals. Promoting directly to this segment, emphasizing the gourmet quality of Enzo's at Home product range, will prove beneficial.
    

5.4.2.2 Point-Of-Sale Material

At point-of-sale in both the Enzo’s at Home outlets and the Enzo’s Ristorante, a number of promotional strategies could be implemented.
Recommendations:
Enzo’s at Home Outlets:

• 
  Loyalty cards in which the customer is awarded a 10% discount voucher to be spent on Enzo’s at Home products in supermarkets.
  
• 
  Advise customers that the products can be purchased at a number of local supermarkets, delicatessens, and fruiters.
  

Enzo’s Ristorante:

• 
  Run a short-term campaign where customers are given discount cards attached to receipts at Enzo’s Ristorante.
  
  • 
    Minimal marketing costs required as vouchers can be printed on receipts.
    
• 
  If a customer spends over $120 when dining at Enzo’s Ristorante, they are given a free voucher to be spent on Enzo’s at Home products.
  
• 
  Advise customers that products of the same gourmet quality can be purchased from a number of local retailers.
  
  • 
    This can be implemented in the following ways:
    
    • 
      When customers compliment the food and service.
      
      • 
        Advise the customer that they are able to enjoy these authentic meals from the comfort of their home.
        
    • 
      When they are paying for their meals.
      
      • 
        Ask the customer whether they have heard of Enzo’s at Home.
        
• 
  Display promotional signs which inform customers that Enzo’s Ristorante quality products can be purchased from local retailers.
  

Costs:

• 
  Producing vouchers and promotional signs: $100-$200
  
• 
  Reduced profit margins during discount campaigns.
  

The costs associated with these point-of-sale recommendations are minimal as Enzo’s at Home can leverage from Enzo’s Ristorante. Effective implementation will build recognition and association between the two brands. Such promotional activity will enable Enzo’s at Home to acquire the customer loyalty from both existing and new customers.

5.4.3. SELLING

Retailers

Enzo’s at Home products are mainly sold through intermediaries and as such, majority of the employees with be involved with manufacturing rather than selling. Instead, a marketing team or manager would be required to communicate with various retailers in order to sell the product range.

Enzo’s at Home Outlets

Employees working in the Enzo’s at Home outlets will need to utilize their customer service skills in order to sell products.

5.4.4. PUBLIC RELATIONS

Through public relations, Enzo’s at Home are provided with a number of opportunities for creating brand awareness and association with Enzo’s Ristorante. Even though there must be a valid reason for creating a story about Enzo’s, we would be limited in what kind of things can be said about Enzo’s. If the story is not of interest towards radio, newspapers, then it will be difficult.
In the past, Enzo’s have been part of reviews, in which the Advertiser has done. From food to wine list, Enzo’s has been viewed very carefully. With this type of public relations, The Advertiser has put in their own recommendations, when families want to choose a restaurant to dine. Through figure 1.6, the article/review shows how Enzo’s location, food, and beverages are highly recommended. With this type of help, bringing awareness to the restaurant would cost little and the issue with the marketing budget would be an issue.