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• Is to take full advantage of its brand potential while…
• Building a base from which other revenue sources can be mined…
• Both in and out of the retail grocery business.
e. These markets and products are detailed in four areas below:
• Current markets.
– Will be grown by expanding brand and flavor distribution at the retail
level.
– Will grow same-store sales by:
* Increasing consumer awareness and repeat purchases, thereby…
* Leading to the more efficient broker/warehouse distribution
channel.
• New markets.
– By the end of Year 5, the chili, salsa, burrito, and enchilada business
will.
– This will represent 70 percent of U.S. food store sales.
• Food service.
– Will include chili products and smothering sauces.
– Sales are expected to reach:
* $693,000 by the end of Year 3.
* $1.5 million by the end of Year 5.
• New products.
– Howlin’ Coyote’s brand presence:
* Will be expanded at the retail level through …
• Target Markets
a. This section identifies the specific niches or target markets toward which the
company’s products are directed.
b. When appropriate and when space permits, this section often includes a
market-product grid. See Chapter 9.
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c. The primary target market for Howlin’ Coyote products is households:
• With one to three people.
• Where often both adults work.
• With individual income typically above $50,000 per year.
d. These households contain more experienced, adventurous consumers of
Southwestern/Mexican food and want premium quality products.
• Points of Difference
a. An organization cannot grow by offering only “me–too products.”
b. The greatest single factor in a new product’s failure is the lack of significant
“points of difference” that set it apart from competitors’ substitutes.
c. This section makes these points of difference explicit. See Chapter 10.
d. The “points of difference”— characteristics that make Howlin’ Coyote chilies
unique relative to competitors—fall into three important areas:
• Unique taste and convenience.
– No known competitor offers a high-quality, “authentic” frozen chili in
• Taste trends.
– The American palate is increasingly intrigued by hot spices.
– In response to this trend, Howlin’ Coyote brands offer more “kick”
than most other prepared chilies.
• Premium packaging.
• Positioning
a. A positioning strategy helps communicate the unique points of difference of a
company’s products to prospective customers in a simple, clear way.
b. This section describes this positioning. See Chapter 9.
c. In the past, chili products have been either convenient or tasty, but not both.
d. Howlin’ Coyote pairs these two desirable characteristics to…
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6. Marketing Program
• Everything that has gone before in the marketing plan sets the stage for the
marketing mix actions—the four Ps—covered in the marketing program. See
Chapters 10 through 21.
• The four marketing mix elements of the Howlin’ Coyote chili marketing program
are detailed below.
• Product Strategy
a. This section describes in detail three key elements of the company’s product
strategy:
• The product line.
b. After first summarizing the product line, the approach to product quality and
packaging is covered.
c. Product Line. Howlin’ Coyote chili:
• Retails for $3.99 for an 11-ounce serving.
• Is available in five flavors:
– Green Chile Chili. – Chicken Chunk Chili.
– Red Chile Chili. – Mean Bean Chili.
– Beef and Black Bean Chili.
d. Unique Product Quality.
• The flavoring systems of the Howlin’ Coyote chilies are proprietary.
• The products’ tastiness is due to extra care lavished upon the ingredients
during production.
• The ingredients used are of unusually high quality.
• To preserve cell structure and moistness, meats are…
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• Chilies are fire-roasted for fresher taste.
• Tomatoes and vegetables are of select quality.
• No preservatives or artificial flavors are used.
e. Packaging. Howlin’ Coyote:
• Bucks conventional wisdom in its packaging.
• Price Strategy
a. This section makes the company’s price point very clear, along with its price
position relative to potential substitutes:
b. When appropriate and when space permits, this section might contain a break-
even analysis.
c. See Chapters 13 and 14.
d. Howlin’ Coyote Chili’s price:
• Is $3.99 for an 11-ounce package.
e. Howlin’ Coyote Chili’s price is justified because of:
• The significant taste advantages it has over canned chilies.
• The convenience advantages over dried chilies.
• Promotion Strategy
a. Three key promotional activities are emphasized:
• In-store demonstrations.
– Enable consumers to try Howlin’ Coyote products and discover their
unique qualities.
• Recipes.
– Are offered to consumers to stimulate use.
– Are given at all in-store demonstrations.
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– Are on the back of packages.
• Cents-off coupons. Are distributed in four ways to generate trial and
repeat-purchase of Howlin’ Coyote products:
– In Sunday newspaper inserts. These inserts:
* Are widely read.
* Help generate awareness.
– In-pack coupons. To encourage repeat purchases by new buyers:
– Direct-mail chili coupons. Those households that fit the Howlin’
Coyote demographics described previously will be mailed coupons.
b. For space reasons, the company’s online strategies are not shown in the plan.
c. See Chapters 17, 18, and 19.
• Place (Distribution)Strategy
a. Described in this section are:
• The present method of distribution.
b. Howlin’ Coyote is distributed in its present markets through a food distributor.
• The distributor:
– Buys the product.
– Warehouses the product.
– Resells and delivers the product to grocery retailers on a store-by-store
basis.
c. As sales grow, we will shift to a more efficient system using a broker who
sells the products to retail chains and grocery wholesalers.
AppA-20
7. Financial Data and Projections
• All the marketing mix decisions covered in the marketing program have both
revenue and expense effects.
• These are summarized in this section of the marketing plan.
• [Figure 2] The marketing plan provides past sales revenues for along with five-
year financial projections.
• Past Sales Revenues
a. Historically, Howlin’ Coyote has had a steady increase in sales revenues since
its introduction in 2009.
• Five-Year Projections
a. The Five-Year Projections section starts with the judgment forecast of cases
sold and the resulting net sales.
b. Gross profit and then operating profit—critical for the company’s survival—
are projected.
c. An actual plan often contains many pages of computer-generated spreadsheet
projections, usually shown in an appendix to the plan.
f. Because the plan:
• Proposes to enter 17 new metropolitan markets in the coming five years
(for a total of 20), it…
• Is not possible to simply extrapolate the trend in Figure 2.
g. Instead, management’s judgment must be used.
h. Methods of making sales forecasts—including the “lost horse” technique used
here—are discussed in Chapter 8.
8. Organization
• [Figure 3] The organization chart and staffing plan for Paradise Kitchens appears
here.
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• It reflects the barebones organizational structure of successful small businesses.
• Often a more elaborate marketing plan will show the new positions expected to be
added as the firm grows.
• Paradise Kitchens:
a. Operates with full-time employees in only essential positions.
9. Implementation Plan
• The Implementation Plan shows how the company will turn its plan into results.
• Charts are often used to set deadlines and assign responsibilities for the many
tactical marketing decisions needed to enter a new market.
• [Figure 4] Introducing Howlin’ Coyote chilies to 17 new metropolitan markets:
a. Is a complex task.
b. Requires that creative promotional activities gain consumer awareness and
initial trial.
• Paradise Kitchens:
a. Will be in 20 metropolitan markets by 2022, including the three existing ones.
b. Is in 53 percent of the top 38 U.S. metropolitan markets.
• The anticipated rollout schedule to enter these metropolitan markets appears in
Figure 4.
• The diverse regional tastes in chili:
• As the rollout to new metropolitan areas continues, Paradise Kitchens…
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10. Evaluation Plan
• The essence of evaluation is:
a. Comparing actual sales with the targeted values set in the plan.
b. Taking appropriate actions.
• Note that the section:
a. briefly describes a contingency plan for alternative actions…
Appendix A. Biographical Sketches of Key Personnel
Appendix B. Detailed Financial Projections
• Various appendices may appear at the end of the plan, depending on the plan’s
purpose and audience.
• For example, résumés of key personnel or detailed financial spreadsheets often
appear in appendices.
• For space reasons these are not shown here.
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Connect Application Exercises
Interactive 1: Situation Analysis
Activity Summary: In this click and drag activity, students perform an environmental scan for
Paradise Kitchens Inc. Students are provided with the company history for Paradise Kitchens as
well as its plans for product line extension through its Earth Coyote Organics frozen food line.
Students are provided with the five macroenvironmental factors as drop areas (social, economic,
technological, competitive, regulatory) and five macroenvironmental trends that might affect
Paradise Kitchens’ product line extension decision (USDA organic, Walmart organics, drought
resistant crops, price premium, mother Earth). As students mouse over the trend, they receive a
hint to assist the student in classifying the trend.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on a
situation analysis for their own Marketing Plan or as preparation for students drafting a
Interactive 2: Consumer Analysis
Activity Summary: In this click and drag activity, students perform consumer analysis for
Paradise Kitchens Inc., focusing on psychological, sociocultural, and situational influences.
Students are provided with the company history for Paradise Kitchens as well as its plans for
product line extension through its Earth Coyote Organics frozen food line. Students are provided
with the consumer purchase decision process influences (psychological, sociocultural,
situational) as drop areas as well as six draggable influences (Coyote love, healthy living, home
for summer, thinkers, Sierra Club, and price-quality). As students mouse over the influence, they
are given a hint to help properly classify the influence by type.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Customer Analysis portion of a situation analysis of their own Marketing Plan or as
Appendix A – Building an Effective Marketing Plan
AppA-24
Interactive 3: Information Sources and Priority
Activity Summary: In this mini-case, students analyze the data needs for Paradise Kitchens’
introduction of Earth Coyote Organics. After reviewing the history of Paradise Kitchens and the
role of marketing research in the marketing plan, students answer seven questions covering
primary and secondary data, sources of information, data types, and data prioritization.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
collecting data for the Situation Analysis section of their own Marketing Plan or as preparation
Interactive 4: Market-Product Grid
Activity Summary: In this mini-case, students analyze market-product grid for Paradise
Kitchens’ introduction of Earth Coyote Organics. After reviewing the history of Paradise
Kitchens and a market-product grid which includes the Hispanic and non-Hispanic markets and
breakfast, lunch, and dinner products, students identify primary and secondary target markets by
answering five questions utilizing Paradise Kitchens’ market-product grid as a reference.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Market-Product Focus section of their own Marketing Plan or as preparation for students
Interactive 5: Fine Tuning the Product Strategy
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Activity Summary: In this click and drag activity, students reviewing the history of Paradise
Kitchens, focusing on the product marketing tactic. Students evaluate three new product ideas
(Earth Coyote Organics, Howlin’ Coyote family-sized frozen dinners, Moon Boy frozen single-
serving pho), identifying the target market (health conscious Hispanics, Larger families, City
singles) and key point of difference (Earth friendly, 48 ounce trays, Gourmet to go) for each
product. As students mouse over the draggable target market and key point of difference, they
receive a hint to assist the student with classification.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Market-Product Focus section of their own Marketing Plan or as preparation for students
Interactive 6: Stage of the PLC
Activity Summary: In this mini-case, students analyze the product life cycle for organic foods.
After reviewing the history of Paradise Kitchens, students read about the consumer demand,
growth, and profitability of the organic foods market. Students then answer four questions
related to the lifecycle stage of organic foods to help identify the appropriateness of an
awareness or differentiation marketing strategy.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Market-Product Focus and Marketing Program sections of their own Marketing Plan or as
Appendix A – Building an Effective Marketing Plan
AppA-26
Interactive 7: Working Towards a Final Price
Activity Summary: In this mini-case, students analyze the pricing decision for the Earth Coyote
Organics frozen dinner line. After reviewing the history of Paradise Kitchens, students are
introduced to three pricing options for the frozen dinners, associated demand, and expenses.
Students then answer five questions which ask the students to calculate break-even amounts and
firm profits in addition to applying pricing strategies.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium, 3 Hard
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Price Strategy section of their own Marketing Plan or as preparation for students drafting a
Interactive 8: Selecting Channels and Intermediaries
Activity Summary: In this mini-case, students analyze the place decision for the Earth Coyote
Organics frozen dinner line. After reviewing the history of Paradise Kitchens, students review
the distribution density concept. Students then answer five questions on distribution density
covering costs, product types, and market coverage.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Place Strategy section of their own Marketing Plan or as preparation for students drafting a
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AppA-27
Interactive 9: Developing an IMC Program
Activity Summary: In this click and drag activity, students analyze an IMC decision for the
Earth Coyote Organics frozen dinner line. After reviewing the history of Paradise Kitchens,
students are asked to consider the promotional element to support Paradise Kitchens’ launch of
the Earth Coyote Organics line. The drop areas are the stages of the promotion decision process
(planning, implementation, evaluation) and the dragable items are IMC actions (Living in the
Southwest, Objective and task, Coyote choice, Dallas Morning News, How did it go?, Changing
course). The draggable items provide students with a hint as they mouse over the item.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Promotion Strategy and Financial Data sections of their own Marketing Plan or as
Interactive 10: Choosing a Retailer
Activity Summary: In this mini-case, students analyze the place decision, specifically retailer
selection, for the Earth Coyote Organics frozen dinner line. After reviewing the history of
Paradise Kitchens, students are provided with an overview of two grocery chains: Safeway and
While Foods. Using a perceptual map as reference, students then answer five questions related to
the stores’ positioning, differential advantage, and customer profile.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Place Strategy section of their own Marketing Plan or as preparation for students drafting a
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AppA-28
Interactive 11: Prioritizing Media
Activity Summary: In this mini-case, students analyze the promotion decision, specifically
adverting media selection, for the Earth Coyote Organics frozen dinner line. After reviewing the
history of Paradise Kitchens, students are provided with an overview of five advertising media:
national television advertising, cable television advertising, national newspaper, local coupon
magazine, and major market newspaper. Using an advertising table for reference, students then
answer five questions related to the media type’s metrics, budget, and wasted coverage. This
activity requires students to calculate CPM.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Elements of the Marketing Plan
Learning Objective: Appendix A
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could use this activity as preparation for students working on
the Promotion Strategy and Financial Data sections of their own Marketing Plan or as