Marketing Plan- Spaans Cookie Company

Introduction

This paper provides a marketing plan for Spaans Cookie Company. It provides the history of the company and also an elaborate evaluation of the company. The paper has also provided a SWOT analysis of the company and looked at the areas where the company needs to improve on as far as marketing and advertising are concerned.

The paper has also provided pricing strategies that ought to be implemented by the company so as to gain a competitive edge against it competitors. The firm’s competitors are also analyzed in this paper. The paper has also evaluated the consumers of the company. Various recommendations are also provided at the end of the paper. A conclusion then follows.

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Company Overview

Spaans Cookie Company was formed by Peter Spaans in the year1896. The founder was originally a baker coming from Holland. In the year 1912, Peter accompanied by his wife moved to America. They resided in Kansas and he greatly desired to run a bakery in United States. During the year 1922, he opened the first bakery.

It was located at Muir in Michigan. A loaf of bread was sold at seven cents. In the year 1935, Spaans Dutch Bakery was opened by William who was Peter’s oldest son. The Bakery sold potato chips, donuts as well as assorted pastries. The business thrived since the public was restricted from using sugar. However, by the year 1946, the ban that was imposed on sugar was lifted. This made their business to begin slowing considerably since defense cafeterias were closed.

In the year 1958, William together with his family relocated to Galt in California. William constructed a large bakery business. In 1969, Sharon and Jim took over the bakery. Spaans Cookie Co. which the two are now in charge of expanded in the recent past, producing 64,000 cookies every hour. Besides, they also bake more than 28 types of cookies which they distribute in California as well as in several other states (Spaans Cookie Co., 2011).

SWOT analysis

Several organizations in the present society face both local as well as global competition. It should be noted that when the past is successful, it is not a guarantee that the future will also be successful (Keays, 2009). SWOT analysis is of great importance to the company as it will make it to gain competitive edge over its competitors.

The strengths of Spaan have been brought about by the firm’s foundation. The company’s baking history commenced in 1896 (Spaans Cookies, 2011). Due to the fact that the company has been operating for quite a long period of time, it has greatly perfected its cookies’ ingredients. The development of such an attractive product is a great strength of the company. It is very significant to the marketing plans of the company.

Spaans has a weakness of failing to market their products through the use of social media networks. Websites such as Facebook, for example may be of great help to the company to make it reach to the surrounding community. Such social media websites can be a free marketing tool for the company. This weakness can easily be turned into a strength.

Spaans has several opportunities. Currently, it only has three cookie chains within the area of Sacramento. Through investments, it has a great opportunity of starting several other chains of stores. The company should look at the changes which have taken place within the society such as the advent of Social Medias and should therefore take them as Advertising Avenue.

Pricing Strategy

Although Spaans has developed quite a number of marketing strategies, there is need for it to know that pricing strategy usually determines the positioning of products within the market. It should also be noted that pricing also influences marketing elements like the quality of the product, channel decisions, as well as advertising (Kotler & Keller, 2009).

A number of pricing mechanisms may be applied by Spaans so as to price pumpkin spice cookie. Major pricing strategies, however, are competitor and customer-based pricing. Penetration pricing, loss leader and price skimming are some of the customer based approaches of pricing.

With penetration pricing technique, the company may introduce new cookies and charge very low prices in comparison to the cookies which are in the market. This will bring new customers. Lower pricing will make more customers to buy the products. Penetration pricing ought to be applied when launching new products.

The company should also apply price skimming which involves setting very high prices for products that are currently not in the market. This should be applied to the new pumpkin spice cookies. Through price skimming strategy, Spaans is capable of obtaining huge profits before the introduction of similar product into the market by the competitors.

Competitors can copy the products and thereby enter into the market.They may also improve the product (Cannon, McCarthy, & Perrault, 2009, p. 262). The growth of the market, sales as well as profitability of Spaans Cookie Company may therefore decline.

Loss leadership strategy can also be used by Spaans Cookie Company. This is a sales promotion technique and involves setting prices below cost price so as to attract more customers. Loss leadership encourages customers to purchase more products of the company.

Competitor based pricing can also be adopted by the company. This entails setting prices to be in line with those charged by the competitors. Spaans ought to develop unique mechanisms of attracting more customers like providing improved customer service so as to increase sales.

Consumer Evaluation

Female mothers aged between 25 and 45 are the major shoppers within the section of the cookies of Safeway and Bel Air as compared to other customers. The company should however, reach more target groups.

Positioning

The company should position itself above the competitors in the market. This will make it to gain competitive advantages over its numerous competitors within the market. Spaans has several competitors and unless it positions itself far above them, it cannot gain competitive advantage over them. The company should adopt the pricing mechanism such as Penetration pricing, loss leader as well as price skimming.

Competitor Evaluation

Spaans has several competitors baking and selling cookies like the Great American Cookie Company specializing in gourmet cookies. The company has 290 stores within the United States, hence offers big competition to Spaans.

Other competing companies include Full Bloom Baking Company and Interstate Bakeries Corporation distributing breads, as well as cakes throughout the United States. Since these firms have developed their own strategies for marketing, Spaans should continue inventing several strategies to make it stay ahead of competition (Spaans Cookie Company, 2011).

Advertising Recommendations

There are quite a number of strategies that should be put into place by the company so as to advance in its marketing ambitions. A single strategy that ought to be applied by Spaans is defining the competitive landscape for its new product, pumpkin spice cookie. This will be of great help to the company since it will be able to know its real competitors and the kinds of products they sell.

After the analysis of the competitors by Spaans, it will know the tricks that they use. Competing companies can be studied by visiting them, reading more about them through their website and also doing additional research on the reviews of the customers.

The company should also offer good services as well as exceptional products. Indeed these are very significant factors that will make the firm to get buyers as well as customers to buy more of their products. Spaans Cookie Company is famous for producing delicious goods. It should strive to maintain its good reputation.

There are several other strategies that should be applied by the company in its marketing endeavors. It should use the media in its marketing and advertising endeavors. It should also use network TV and magazines so as to market the products.

Conclusion

A number of strategies need to be implemented by Spaans Cookie Company so as to gain competitive edges over its numerous competitors. The company should adopt the pricing mechanism such as Penetration pricing, loss leader as well as price skimming. All these will play very big roles in ensuring that the company gains competitive edges over its competitors.

The major competitors of the company are Great American Cookie Company, Full Bloom Baking Company as well as Interstate Bakeries Corporation. It should ensure that it implements the strategies which are laid out in this paper for it to gain competitive edge over them.

Similarly, the company should also offer good services as well as exceptional products. Indeed these are very significant factors that will make the firm to get buyers as well as customers to buy more of the products. Reputation will play a very big role in ensuring that it not only retains its existing customers but also attracts new ones. The advertising recommendations laid out in this paper should also be implemented by the company for its success.

References

Keays, M., (2009). SWOTT Analysis. Business Link LLC. dba Nevada Business

Magazine and Nevada Business Journal. Retrieved from http://www.nbj.com/issue/0206/30/787 On October 9, 2011.

Kotler, P. & Keller, K. L. (2009). Marketing Management (13th ed.). Upper Saddle River, NJ: Prentice-Hall.

Perreault, W. D., Cannon, J. P., & McCarthy, E. J., Jr. (2009). Basic marketing: A marketing strategy planning approach (17th ed.). New York, NY: McGraw Hill.

Spaans Cookie Company. (2011). Spaans History. Retrieved from http://www.spaanscookies.com/historyspaans1.html On October 9, 2011.

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