Smith S Home Food

Solution for case metalworkers al-Qaeda Foods. Question One Smiths Country Ham has been operating for 25 years in North Carolina in the wholesale viands division, tar baffleing restaurants and fast food chains. In order to increase turnover and therefore revenue, Smiths decides to unwrap a new product pull back Smiths Home Food. A product line containing 11 packages sold to households and including all kinds of foods meat, vegetables, fruits etc. lasting for a period of 4 months. The outlays of these packages range from $655 to $1532 ($ thou on average).These packages require a freezer and thus Smith provided the sale of freezers for customers that didnt own every. Also, it is highly important to mention that Smith gave all its customers the possibility of financing all of its goods packages and freezers. Through this new division, Smith is not only moveing food and freezers it is actually providing its customers with high convenience Buyers no longer get hold of to run to the merchandise to get any kind of foods, as Smith includes everything in the packages.Also, since they will be buying in large quantities they will be benefiting from lower prices, and will escape any surface in market prices during this 4 months duration. Question Two As for problems for this outline, I think Smiths should reconsider its sources for advertize in order to acquire higher profile customers that ar much entitled for its financing options. It should alike extend its product liquify to include other packages with different duration (more and less(prenominal) than 4 months). Question Three P=$1000 COGS= 48%= $480 Delivery Charge= $30 thrill embody= $125AVC= CPGS + Delivery + Commission= 480+30+125= $635 UCM= 1000-635= $365 Break even Revenue= Total Cost Revenue= 1000 x Q Total Cost= TFC + TVC= (57,000/3) + AVC x Q (we divide 57,000 by 3 to get fixed cost for 4 months) 1000xQ= 19,000 + 635 x Q 365Q=19000 Q= 19000/365 Q=52 To break even, Smiths must sell 52 package s each 4 month. Executive Summary Smiths Country Hams, a 25-year-old family disdain that focuses on wholesale meat products such a ham, bocon, and other pork products, sell to restaurants and fast-food operations in eastern North Carolina.Smiths family business has a portion that provides home-delivered meats, vegetables, and fruits should be in considerable contain and providing new sales for its business. Smiths Home Foods is going to be the way of the dogs. The current merchandising environment would allude to this connection has the potential to be market nicher and local geographic market drawing card with a high dole out of the market and high growth. Meanwhile, his business is getting an excessive minimal share and less than minimal growth. The company is supposed to bring a new vision for its merchandising mix.Company should fade much performance in dynamic marketing communication strategy and an effective advertising budget to protect further loss of revenue. Purchasi ng food through a home food service saves consumers money. Because consumers buy in large quantities, they receive lower prices, and they escape any price increase that buy the farm during the four month period covered by their food package. Making fewer trips to the store also helps customers avoid expensive impulse purchases. Current Marketing SituationSmith Home foods has employed a product concept approach to business that would suggest that company believes consumers will favor products that offer the nigh quality, performance and that the company ought to engage its energy to making continuous improvements in the product. Smith Home Foods uses both important marketing techniques. a) Mass marketing techniques-mass producing, mass distributing, and mass promoting about the same product in about the same way to all consumers. b) Personal techniques by the Smiths family business army the purpose of making sales and building customer relationship.The company locations makes it the geographic market leader in the business with virtually no competition. The psychographics segmentation of target market would suggest that customers want this product a busy in their careers or social activities and interested in all flakes of age saving opportunities. Strengths, Weaknesses Threats and Opportunity Analyses The company is the corporations question mark performer and has the potential of go a star performer given the limited competition in the market.The company has the advantage of the conjure up corporations 25-year-old positive study as a local family owned business cognise for the quality of their products. The strategy of the companys in the market involving a poor marketing mix strategy, a poor integrated marketing communication strategic plan and service strategy with no experience. There is no evidence of feedback mechanism to turn back customer satisfaction or to encourage company loyalty through sustained company-customer relationships.Company h as no local competition and the company has an opportunity to establish itself as the market leader nicher for the product that is offering. Threats to company are also numerous. Business can damage the reputation of the parent corp. The company has too much financial liability for contrasts that are not honored by customers. Objectives and Issues The company does not have a sure mission and is move in the wrong type of marketing philosophy. The company need develop a mission. The company does not have a queen evidence teaching ashes. This is virtually taking shots n the dark and hoping to hits something. The company has to create developing a research plan as soon as possible. In the light of target market, The Company has a poor knowledge. The company is supposed to engage in effective market targeting by selecting market segments and to insure a competitive advantage. Sales management is not well developed. The company should develop a system for recruiting, selecting, traini ng, supervising and evaluating the sales team. Questions and Answers 1- Outline Smiths Home Foods marketing strategy. What is Smiths Home Food really selling?The companys cash cow product is pork that are produced and sold wholesale to restaurants and fast food operations throughout eastern North Carolina. The company has a small sales force that is engaged in apparently one time, face to face selling of product and services written agreements but limited activity regarding customer relationship building. The company engaged in product bundle pricing by including products form external sources to make their service more appealing and convenient the potential new market segment. The additional products include other brand-name food products as well as freezers in which to store the frozen goods. What problems, if any, do you see with each element of the strategy? Firs of all, The Company have not a power sure mission or any information that would suggest there was a formal setting of goals and objectives by the company. Second, there is no indication that any marketing research was conducted to either identify the need or the target segment of population. 3- According to plot and the amount of package number, to buy 11 Food, 13 pounds per week, 4-5 minimum freezer size , 4-5 Family size is the price of 958.These amounts are more convenient that the others for the company foods packages. 4- Based your analysis, what steps would you recommend that Christy take improve her marketing strategy and Smiths performance? First, Christy is supposed to re-evaluate the needs, wants and demands of those members with buying power in the companys geographic area of service delivery. This contribute the company with more a factual evaluation of whether or not the product she is making has a true growth potential. The company should modify and develop and advertising strategy to using the right