Food Mate Company's Marketing Mix for selling Japanese waffle taiyaki

Primary Target Market 

Food Mate Company is a fast food firm that operates using food trucks. In the USA, one in every four Americans consumes fast food and this has seen them spending billions of dollars in terms of purchases. Nonetheless, 45% of young adults between 20-39 years old consume fast food as compared to 24% of adults aged 60 years and above (Molina, 2018). In this case, the Fast Mate Company will mainly target younger adults aged 20-39 both males and females. Furthermore, the business will mainly target the Japanese consumers. However, the business will also target all American citizens’ fir they are known to prefer purchasing products that offer new life experiences

Market Research Methods 

Social media has brought about considerable changes not only to the online community, but how companies can conduct market research. Social media is one of the best platforms for a new business to use when carrying out surveys for the sites offer a platform with lasting visits. This will provide the company with an ability to attract the attention of various social media users and thus conduct the surveys. In order to attract the attention of social media users, a business should use ads. In the case of Facebook and Twitter, it offers a self-service model that a business can use in displaying ads. The business will use the ads in inviting people found in the sites and thus can collect various consumers’ needs and wants which they will later use in producing products and services that fulfill them.

Focus groups are a market research methodology whereby a business conducts an interview with a small group of people who represent the entire target market. The main method through which a business can know its consumers’ needs is by directly talking to the intended consumers. Focus groups will offer a platform that enables an honest and open dialogue with the intended consumers. The business will have the ability to have a deeper awareness of how the consumers respond to its services and products and any solutions they can provide to ensure their needs are all fulfilled.

Keyword research is also another technique that can allow a business to conduct a market research on its consumers’ needs and wants. Through this technique, the business must have an awareness of what the customers are searching via online platforms. Once a business is able to determine what the consumers are searching for in relation to its services and products, the business can channel the results into creating a product and service that aligns itself with the needs. Google offers a keyword search tool referred to as Google AdWords and this can help the business in conducting the research.

Marketing Mix 

Product 

The product sold by Food Mate Company will be Japanese waffle taiyaki . The business will specialize in the preparation of the product until its selling phase. The term taiyaki refers to baked sea bream in Japanese. Fresh ingredients will be used in preparing different fillings on the products each day. Sweetened azuki beans and red bean paste will be used in preparing the traditional filling. The first shape would take the shape of a prawn while the second one will take the form of a cone. The open end of the cone will be filled with ice cream

Pricing Strategy 

The fast-food business is amongst the most competitive industries in the USA. The industry is dominated by huge market players such as Starbucks, Burger King and McDonald's who occupy more than 50% of all fast food consumers. The fast-food giants make it very hard for other new entrants for they have been in business for many years, thus leading to the creation of customer loyalty. A substantial number of consumers have very low substitution abilities and thus for Food Mate Company to survive in this highly competitive business environment, it will have to employ a penetration pricing strategy. Through this strategy, the business will first set its prices at a much lower rate as compared to its competitors and once it fully grasps the target market, it can raise for it will have created customer loyalty (Schindler, 2012).

Promotional Strategy 

Food Mate Company will use an integrated promotional strategy. This will see it employ a below the marketing approach whose main aim is to reach the targeted consumers, in this case, individuals aged 20-39 y ears old from the Japanese ethnic background and also other American citizens. This marketing strategy is the best for it will also allow the business in getting feedback from its target consumers and use the responses in coming up with better products (Wilmshurst & Mackay, 2010). Some of the strategies that will be used in this case will include erecting billboard ad pixel screens along the major USA highways, inside restaurants, shopping malls, and supermarkets. Additionally, the firm will also conduct various advertisements on the local television and radio stations. Print media will also be used in advertising the business.

Placement Strategy 

The business will use an intensive distribution strategy. The aim of this strategy is to ensure that the potential consumers can get access to the product everywhere they go. The product will be available in notable tourism locations, stadiums, and sports centers, university campuses, and construction sites. Additionally, the business will also place its products on other sites to ensure that its products can reach an unlimited number of customers such as shopping malls, hypermarkets, supermarkets, and renowned parks.

Advertisement Budget 

In order to develop a realistic advertisement budget, one must first come up with an effective and efficient marketing plan. This is by first determining the business needs, the message being conveyed, target market and what is expected to form the advertisement. The next step is determining how much one is willing to spend in order to convey the intended message. According to Horton (2011), for a business that is less than five years old, it should spend between 12-20% of its projected revenues in advertisement and in the case of Food mate Company, its annual gross revenue is $720,000. Advertisement costs should be split between business promotion and brand development costs. The other step is that the business should determine the means through which it will use in spending the advertisement dollars such as events, public relation, traditional advertisement , email campaigns and newsletters, SEO etc. Food Mate Company will utilize a 20% advertisement budget from its projected revenues of 720,000. The main reason for this is that the fast food industry is highly competitive and has a lower substitution rate, therefore, the business will have to sue a more aggressive strategy that requires a lot of financial resources.

Food Mate Company advertisement budget and the plan are as indicated below;

References

Horton, N. (2011, October 18). Sample marketing budget for small business. Horton . Retrieved from https://www.hortongroup.com/blog/sample-marketing-budget-small-businesses-itemizing-your-marketing-expenditures

Molina, B. (2018, October 3). More than 1 in 3 adults eat fast food on a given day, DC survey finds. USA Today . Retrieved from https://eu.usatoday.com/story/news/nation-now/2018/10/03/american-eat-fast-food-daily-cdc-survey/1507702002/

Schindler, R. M. (2012). Pricing strategies. A marketing approach . Los Angeles: SAGE.

Wilmshurst, J., & Mackay, A. (2010). Fundamentals of advertising. Routledge.