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EXECUTIVE SUMMARY
Preserved food industry has gained its own recognition among consumers and attracting large
number of buyers towards it, due to its advantage of easy availability and ready to use benefits.
Abis mango compote is the business venture manufacturing mango compote of fresh green
mangoes for Australian population. The case study explains about the preserved food industry,
target market section and also the situation analysis of market. Here, the marketing plan will be
explained for Abis mango compote. The marketing plan consists the distribution strategy as well
as promotional strategy. The report also consists the controlling of marketing plan too.

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Particulars

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TABLE OF CONTENT
Pg.

Executive Summary
1. Introduction...4 5
1.1 Preserved Foods
1.2 Preserved Food Industry
2. AIM & Objective of Project Report.5 6
2.1 Aim of Project Report
2.2 Objective of Project Report
3. Review of Literature..6 8
3.1 Current Trend of Australian Processed Food Industry
4. Situation Analysis..8 9
4.1 Strengths
4.2 Weakness
4.3 Opportunity
4.4 Threats
5. Analysis of Target Market..9 10
5.1 Identification of Customers
5.2 Demographic Variables of Target Market
5.3 Behavioral Process of Target Market

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6. Marketing Plan..10 13
6.1 Marketing Strategy
6.2 Promotional Strategy
6.3 Futuristic Marketing Action Plan
7. Implementation & Control of Marketing Plan.13 - 15
7.1 Implementation Process
7.2 Controlling Process
8. Conclusions...15
References

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1. INTRODUCTION
Agricultural products are considered homogenous products in maximum circumstances and these
products have to pass different layer of distribution methodology before the actual products
reaches to the end user. This distribution layer may take weeks, months and even years in order
to reach the products to customers and currently a new trend of selling methodology has been
adopted, which involves selling the products through cabinets of malls, food markets and
restaurants. This long duration of product distribution process forced manufacturer to introduce
certain methodology, in order to preserve the food products for long duration and also the
customer can enjoy the product taste as per their convenience.
1.1 Preserved Foods
Preserved food refers to canning the food products with integration of certain preservatives, salt,
chemicals, in order to preserve the perishable food for the longer duration and can also be
prevent the growth of bacteria, fungi and yeasts along with other micro - organism to deteriorate
the food products. Preservation of food also involves retarding the oxidation of fat in food
products which can cause rancidity. Now a days, below mentioned preservative techniques are
being used:

Pasteurization

Vacuum Packing

Artificial food additives

Irradiation

Pulsed Electric Field Electroporation

Modified Atmosphere

Non - thermal Plasma

Bio preservation

Hurdle Technology

High pressure food preservative

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1.2 Preserved Food Industry

Eagle (2013), According to survey done by United States of America in year 2012, now a days,
preserved food industry is still inclining at fast pace despite the global recession and only canned
food product, which is still an attraction among customers is canned fish, that is also because of
increase in fish consumption among people. Preserved food products have taken place of kitchen
essentials in majority of households and also considered as easy available and value for money
product.
As per Eagle (2013), the global preserved food market is considered to be of $ 77 billion at the
start of year 2013 and also have potential to reach $ 80 billion by the end of year 2014. In fact,
the positive forecast of industry shows that, the preservative food industry may attain the level of
approx. $ 100 billion and this growth rate is about 3.5% since 2010 to 2020.
Now a days, consumers taste have been changed and they merely value the quality product and
its taste. Though, consumers wants that, the canned food must quality of freshness, include the
ingredients of superior quality, convenience of taste and availability and also eco friendly. But,
these preserved and can food neglects the option of health and nutritional food but, now a days,
people are moreover demanding such food products, which can help them in maintaining healthy
life style with effective health benefits and offer good nutritional benefits.
2. AIM & OBJECTIVE OF REPORT
The case study suggests that, Abi is planning to start her own business of preserved mango
compote made of green mangoes inclusive of curry leaves, mustard seeds, turmeric and sugar
etc. The organization will be Australia based and Abi wants that, she must test the market in
certain part of Australia. Abi employed two more people with her, in order to support in
manufacturing process and marketing process. The idea of Abi is to sell the preserved mango

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compote jars of about 500 grams and the initial capital introduced by her is 10000 Australian
dollars.
2.1 Aim of the Project Report
The main process to be taken care in this case study is product launch and marketing of product
manufactured by Abis Mango compote. The main aim of this project work is to define the
expressive Marketing plan for Abis Mango compote product, which have reach to the maximum
number of people.
2.2 Objective of the Project Report
There are certain other sub objectives of project report, which involves as below:

Effective and convincing situation analysis of Abis Mango compote

Analysis of Target market for Mango compote food products.

Formulation of marketing strategy for Abis Mango compote.

3. REVIEW OF LITERATURE
Preserved fruit and vegetable industry is distressed because of uncontrolled import penetration of
products and the problem is added by increasing operational costs by local producers since 200910. In fact, the revenue of sales turnover of preserved food industry has been recorded about
0.4% per annum in Australia. In fact, the food processing industry is further shifting their
operation to other places because of high labor cost and unavoidable overhead costings in year
2014 - 15. In fact, the supply of raw material is also hampered because of adverse weather
condition. Such issues creates existence issue for local players and their existence is further
challenged by overseas giant processed food players. (Seal, 2015)
In fact, the industry report states that, processed fruit and vegetable industry shows minimal
market share concentration even after combining the large, medium and small processed food
producers. Approximately 22% of the processed food producers generates the revenue of $ 2
million per annum and 33% of the processed food manufactures generates revenue between $ 2,
00,000 to $ 2 million per annum. As per Horan (2014), the variation in revenue generation is
because of producing a particular type of product line and catering the niche market segment.

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Rest of the players are giant and having multinational backgrounds consisting high revenue
generation.

3.1 Current Trend of Australian Processed Food Industry

It has been experienced that during the year 2004 05, Australia was seen as major processed
food producer and the time was positive enough to attain the position of Bowl of Food for
Asiatic countries. Dossor (2013) states that, the reason for such change was because, Australia
gradually started exporting various food products and even during the year 2004 05, Australias
beef product export was at peak level and during that period, the nation also exported double of
Wheat quantity, which use to be exported in previous years. These reason showed enough facts
to consider Australia is one of the major processed food producer and exporter.
But, after the period of 2009, the processed food sector started facing difficulties because, the
Australian government opened the doors of imported food products, which gradually started
wiping out the domestic processed food market. Such situation, put the question mark on
Australia being the Bowl of Food for Asiatic nations because, Australia itself showed its in
capability to fight with external processed food giants. But in recent phase after 2013, Australian
processed food industry was revived up to certain level and started competing with food giants in
order to survive in domestic market. In fact, the revival gave the positive sign that, the producers
are capable enough to compete at international level too. (Dossor, 2013)
As per Dossor (2013), the figures shown during the year since 2003 04 to 2009 10 by
Australian Bureau of Statistics that, domestic processed food market grew by approximately
33% and the importing of processed food industry grew by 62%. Australia is known for
exporting beef, sugar, wine and dairy products to other part of world and account for about 72%
of the overall processed food exports.
Net Processed Food Exports

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*Source DAFF Food Statistics (2003-04 to 2011-12)

Australia has increased the imports of processed foods from Italy, in fact during the year 2007,
the value of imported processed Italian tomatoes worth $ 33 million and $ 51 million in year
2012. Before 2000, most of the processed food manufacturers were solely dependent upon
domestic fresh fruit and vegetable market for raw material. Dossor (2013) states that, the
availability of raw material remained small, so as the volume of processed food industry and the
producers could not gain the advantage of economy of scale. The producers in other nations
maintain large production unit in order to achieve high economies of scale and also be able to get
reduced average cost of production. Such large players could easily operate in market, where
same product of domestic market could not compete with these players.
4. SITUATION ANALYSIS OF ABIS MANGO COMPOTE
Situation analysis refers to understand the internal and external environment of business and
analyze the futuristic prospects of industry. Mostly, the situation analysis will be done with help
of Porters 5 forces model, SWOT Analysis or 5Cs process. Here, the SWOT analysis will be
used to analyze the situation of Abis Mango Compote.

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4.1 Strengths

The organization started with minimum possible capital and there is low chance of loss

The ingredients used are of limited variety and organization will have full control on
supply and usage of raw material.

The organization can be started with minimum possible human resource.

The product manufactured is already of preserved nature, so, most probably, the high
quality cold storage will not be required for warehousing.

The organization will use small space as manufacturing plant and office space.

The glass jars offered as containers for food compote can be taken a back and can be reused for packing purpose.

The product line will be registered with food product authority.

4.2 Weakness

The founder of organization is fresh management graduate, so, she may not have actual
idea of marketing process runs in external industry.

Its been considered that, her employee may be her friends from her university days and
they may also be fresher in terms of business.

Due to lack of marketing and manufacturing knowledge, there would be high possibility
of chances of wastage of products.

The organization is not large enough, to fulfill the requirement of large orders received
from giant food product distributors.

The organization is using seasonal fruit as its main raw material, which may not be
available in market during off season during the production process.

4.3 Opportunities

As per the world wide survey conducted by United States processed food industry in
2012, despite the global recession, the processed food industry is increasing with
minimum 3.5% per year and will attain the unmatched height in near future.

More and more households are getting dependent upon the processed food products, due
to their busy routine.

The coming generation is career oriented generation, looking for easy and quick food

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products, so, there is high chances of future growth in preserved food product industry.
4.4 Threat

For processed food, certain artificial additives are used for longer preservation of food
products, which are somewhere banned due to chemical effects.

Preserved food do not offer health benefits, and even cause obesity and other health
related issues.

People are more attracted towards healthy lifestyle and nutritious food, which is major
threat for packaged food industry.

5. ANALYSIS OF TARGET MARKET

Target market refers to the actual customers group, which may show their keen interest in buying
food products offered by Abis Mango compote. The target market analysis will be done of the
basis of four areas, which are as below:
5.1 Identification of Customers

The canned food products are majorly the basic requirement of household and large
number of customers will be catered by this mango compote product.

The other customer segment will be, professional and career oriented people, who may be
having shortage of time for their self - cooking process.

The product will also be of interest for small kids, who are attracted towards different
tastes.

The pregnant ladies will be good market for Abis Mango compote.

5.2 Demographic Variable of Target Market

The target customer includes Males, Females, Kids and also old age people from different area.
City based customers will be more attracted towards this product category, because of their
hectic life style. In fact, pregnant ladies will use this product for their taste change.

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5.3 Behavioral process of Target Market

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The product will be mainly adopted by the people, who will not be much sensitive towards
health issues and healthy life style. The canned food products never offers nutritious value to
customers for long run.
6. MARKETING PLAN
6.1 Marketing Strategy
Marketing channels used for Abis Mango compote is designed as below:

Abis mango compote will have its own manufacturing plant, which will also be
considered as central distribution point at the initial phase. Its been assumed that, the
manufacturing plant is located at Queensland, Australia.

Initially, the product will not be nationalized but, will be started with certain customers
base of certain towns and districts located in nearby areas of Queensland.

The target area will be, Brisbane, Gold coast, Sunshine Coast, Townsville, Cairns,
Toowoomba, Rockhampton, Mackay, Bundaberg, Hervey Bay and Gladstone.

The company will engage, wholesalers, retailers and small retailers of nearby areas and
will appoint 44 direct sales agents, who can sale direct products to customers.

The direct sales agents will cover all the 11 mentioned locations from four different
directions and will sell products door to door.

The company will engage the minimum 1 wholesalers from each 11 areas, who will be
responsible to distribute the products the retailers engaged with them.

The company will also identify the big players in retail industry such as few well known
departmental store and food market, will engage them too for mango compote
distribution.

In case, any small retailer directly contacts the manufacturing plant of mango compote
then, it will also be considered.

The wholesaler can also distribute products to retailers and small retailers and same way,
the small retailer can also take product from retailer and wholesalers.

From all the four distribution channel, the product will ultimately reach to the end user.

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ABIS MANUFACTURING
PLANT

Wholesalers

Retailers

Small Retailers

6.2 Promotional Strategy

Direct Sales
Force

Customers

Promotional strategy refers to steps of promotional strategy to be followed, with of building

recognition among customers. The promotional strategy drafted for Abis Mango compote is here
below:

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Newpapers
Magazines

TV Commercials
Radio
commercials

Print
Media

Electronic
Media

Online
Promotion
s

Other
Promotion
al
Activities

Online mailers
Online banners
and pop ups

Food counters
Discount coupons
etc

Print Media

The organization must use newspaper advertisement to reach the masses.

The organization must search out food magazines and must have certain advertisement
clippings in that.

Electronic Media

The organization must engage an advertisement agency, for small advertisement with
jingle.

The jingle used for television advertisement will also be used for radio advertisement.

The organization will send online mailers to wholesalers and retailers about the product
launch and offers.

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Online Marketing

In fact, the organization will create its own website for further customized services.

Other Promotional Strategy

The company will participate in food fairs and present its product in specialized
environment to actual customers.

Initially, the company can implement certain attractive offers in terms of discount
coupons etc.

The company can also launch small jars of mango compote for initial acceptance in the
market.

6.3 Futuristic Marketing Action Plan

In future, the company will engage, a full - fledged advertisement agency for its
continuous advertisement requirement.

The company will also engage public relation agencies, in order to handle, public relation
activities of company.

The company will also get a logo drafted for its product line, specially defining the
product quality and benefits.

Most probably, in case the marketing budget allows then a famous personality will be
engaged as brand ambassador of the company.

The company will also come up with more product line for customers as per their taste
and demand.

7. IMPLEMENTATION AND CONTROL OF MARKETING PLAN

Marketing plans are easy to draft and describe but requires maximum portion of capital
introduced and also time. The implementation and control procedure of marketing plan has been
described below:

The company has identified the target distribution network in previous section but, the
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7.1 Implementation process

company will start by contacting wholesalers at first instance and after that, departmental
stores and food markets.

After this step, the company will contact retailers directly.

The third step will be to engage the direct sales agents for the company, who can go door
to door and sell products to direct customer and collect feedback too.

The company has identified four promotional strategy for mango compote products.

At first instance, the company must start with online promotional process, which is one of
the simplest promotional process and also very cost effective.

Later on, the company will introduce discount coupons and also participation in food
festivals etc.

The third stage of promotional strategy will cover print and electronic media.

7.2 Controlling process

Controlling process refers to keep eye on marketing process and monitoring each and every step,
so that, any slag and mis communication can be avoided. The controlling process will be made
in Abis compote as per below mentioned method:

The human resource team will have the meeting on every first week of each month,
where, the further marketing targets will be discussed and new implementations required
to be suggested.

The company will use the marketing surveys, to understand the customers perception
and also to identify the customers requirement.

The company will review the contribution of public relation agency and advertisement
agency in business development process.

The company will use internal audit process, to access the problems and slag of company
and also to boost the other areas.

In case, Abi wants to shut the operation then she can easily sell the share to external
parties and can walk out.

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8. CONCLUSIONS

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The case suggests that, a fresh management graduate has vast plan of starting her own mango
compote business and the complete case caters the Situation analysis of market, Target market
analysis, and complete marketing plan along with implementation and control process. The
marketing plan must be simple and cost effective during initial period of business and later on
can be complex and high capital involved. But, the distribution plan and promotional plan
drafted in this assignment caters the requirement of simple plan as well as complex plan,
because, the implementation procedure will cater the requirement of each plan at correct place.
The distribution strategy consists the involvement of four different groups which includes,
wholesaler, retailer, small retailers and finally direct selling agents. The promotional strategy of
Abis compote consists Print media, Electronic media online media and also other medium to
promote the products.
9. REFERENCES
1. Eagle J, (2013), Canned Food Industry in Decline as accessed 26 May 2015,
http://www.foodproductiondaily.com/Packaging/Canned-foods-industry-in-decline
2. Dossor R, (2013), The Future of the Australian Processed Food Sector, Parliament of
Australia.
3.

Gabre-Madhi, E. 2001. Market Institutions,Transaction Costs, and Social Capital in the

Ethiopian Grain Market. Research Report 24, International Food Policy Research
Institute

4. Shindelar, C. 2007. Independent Natural Food Retailers Association Who We Are.

Available at: www.naturalfoodretailers.net, accessed May 2015
5. Ziesemer, T. 2003. Information and Communication Technology as Technical Change in
Matching and Production. Journal of Economics 79:263-287
6. Tropp, D., E. Ragland, and J. Barham. 2008. Supply Chain Basics: The Dynamics of
Change in the U.S. Food Marketing Environment. USDA Agricultural Marketing
Service, Agricultural Handbook 728-3
7. Burros, M. 2006. In Oregon, Thinking Local. The New York Times January 2004.
8. Horan, D. 2014. Bill-backers Call for Local Growing, More Organics. Chicago Tribune
May 14

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9. Seal, R. 2015. Summit Focuses on Region Foods Future. The Daily Progress. April 15
Page

10. Illinois General Assembly. 2007. Illinois Food, Farms, and Jobs Act. Public Act 095-

0145. llinois Legislative Information System. Springfield, Illinois. August 14