Marketing analysis.docx
III. Marketing Strategy
A-target market1-Problem solved [1] :
A growing population :The Moroccan populations annual growth
rate is currently 1.04% and continues to grow.The biggest challenge
for agriculture specialists is to satisfy the needs and wants of
the local market by providing safe,fresh and healthy products for
moroccan consumers while maintaining a clean and healthy
environment . We believe that Hydroponics is the best intensive
plant production method that will be placed to meet this challenge
due to the large scale of production that this system provides.
Water scarcity[2]: Agricultural land covers 67 percent of the
total land area, of which 4.6 percent, is irrigated. Despite these
low figures, agriculture is by far the biggest user of water with
84 percent of water withdrawal. Water resources in Morocco are
limited ,and the sources that do exist impose significant financial
extraction costs that the farmers are unable to afford.By using a
closed system that recycles more than 90% of the water used, the
hydroponics industry has a recognized track record for low water
use compared to other agricultural sector. So Moroccos future
solution to water scarcity is hydroponics.
[1] Source :
http://worldpopulationreview.com/countries/morocco-population/[2]
Source : UN Food and Agricultural Organization
2-Benefits we are offering to customers :
Moroccan agriculture relies heavily on the rain , due mainly to
the predominance of subsistence and rudimentary farming. Despite
the seasonal fluctuations, hydroponics is a year-round, space
effective and soil-less means which allows for a much more sterile
and controlled growing environment that limits insects, diseases
and weather issues. Hydroponically grown fruits, vegetables and
herbs typically offer a much higher amount of vitamins and minerals
than do soil grown produce, therefore offering advanced
nutrition.
-customers motivation to buy :"We save water, we safe life "
Morocco is particularly affected by water scarcity. Population
growth along with limited water resources are causing water
shortage in the near future. Moroccan customers are concerned about
the environment and worried about water scarcity. By providing the
same quality of produce using a system that conserves up to 90 % of
water used rather than in the conventional agriculture, the biggest
consumer of water. \By using hydroponics system, not only we are
saving water ,but also we are saving life.
" high quality ,low price "Each customer is looking for fresh,
nutritious, tasty, and healthy produce with an appropriate price.
This is excately what our business offers. We are delivering higher
quality of produce at lower prices than our direct competitors.
Hydroponics allows us to produce larger quantities in less time at
minimum cost. Using economies of scale, our produce will be at a
competitive price. size of the market : The labor-intensive
agricultural sector is largely underdeveloped and inefficient due
to the high cost of energy, loan, and land which lead to a lack of
investments. However, agriculture plays a vital role in the
Moroccan economy. It contributes about 20 percent to GDP, 30
percent to export earnings, and absorbs approximately 40 percent of
the total active population and 80 percent of the rural
workforce.Of a total of 8.7 million hectares, Only 1 million of
cultivated land is irrigated. About 90 percent of the land, mostly
comprised of small land holdings, is dependent on rainwater. A
small fraction of the cultivated land, about 1 million hectares is
comprised of modern export-oriented farms that produce 80 percent
of Morocco's citrus and wine production, 33 percent of its
vegetables output, and 15 percent of its cereals production. These
irrigated farms, concentrated in the Gharb plain around Fez and
Meknes, the Doukkala plain around Casablanca, and the Beni Mellal
and Berkane areas, produce tomatoes, potatoes, and beet and cane
sugar, as well as oil and olive oil for export.
Is the market growing or shrinking?
Since the independence in 1956, the Morrocan agriculture has
received government attention. The government is dedicating
significant efforts to invest in the agriculture sector. The green
plan and the 2020 strategy for rural developement are two main
initiatives from the government to encourage investements in this
sector. By providing diffrent kinds of facilities, many investments
in different regions of morocco makes from the agricultural
industry a fast growing sector. Our business came up with a new
technology that will make the moroccan desert a paradise and every
span of the morrocan land will be fruitfull.
D. Advertising and promotion
1. Media used, cost and frequency of usage.
We have chosen the most adequate media in order to attract our
target market easily and effectively. Thus, we have chosen to use
radio, brochures, and online ads in order to be present in all
event or forums.Radios With 18% of the publicity expenses and a
progression of 15.8% per report/ratio 2010, the radio is today a
support very requested by the Moroccan advertisers. we have chosen
to advertise in the radio because its is inexpensive, very reactive
and particularly effective media to make advertisement. We selected
two famous radios in Morocco Medi1 and MFM.
Medi1radioWe decided to transmit our ad on Medi1 station because
its the most listened radio stations in Morocco. our ad will be
transmitted just before at 6:58am and 5:59 pm, and it will last 30
seconds.
cost :The radio has a range of prices depending on where the ad
will be made during the day. The cost of advertising on medi1radio
is 3530 MAD.per 30 seconds spot . We will be passing our ad two
times per day the first quarter which will cost us 21,180MAD
(2*3530*3) MAD MFM As we are adopting an agressive advetising we
have chosen a second radio MFM radio to deliver our message to our
target market the Ad will be during the Riht Douar program where
the team of the program moves each week, during one hour in the
countryside each time in a different area to explore the culture,
manners and customs of the rural population. cost: Our 30 sec spot
will be broadcast during the Riht Douar program that starts at
11h00 am each saturday. The Ad will cost us 4800 MAD per spot .
Brochures
Brochures will be used every three months to allow our target
market to know more about us in details.
Cost:
The brochure costs 3 MAD each. We will need around 1000
brochures for all the advertising campaign.
3*1000 = 3000 MAD.
Online ads
Internet Media are underexploited today in Morocco with only
1.7% of the publicity expenses in 2011, which opens good
opportunities with the most daring advertisers.In addition to our
website, we will create our page on facebook to reach the maximum
number of internet users and make people familiar with our brand
name and aware of hydroponics culture as well.
Cost: We will create our facebook page and website for free.
Newspapers
We have chosen AuFait newspaper because 90% of potential readers
in urban areas in Morocco read it .We will first advertise in
"bleed page" the first day, then we will advertise in 1/4 page
every three months.
Cost:For the bleed page, it will cost us 36000 MAD and 14000 MAD
for the 1/4 page.
Special events : Salon international de lagriculture de Meknes :
Participating in a special event is a great way to generate
publicity for our company .This is the main reason why we decided
to be part of the Salon international dagriculture de Meknes on
April,2015 . Showcase of agriculture, SIAM is a rendez vous for
farmers and industry experts from around the world. It has a great
degree of interest among the Moroccan public. Thus, during the 2013
edition, some 1,060 exhibitors from over 51 countries made the trip
to SIAM, attracting over 720,000 visitors.
2.Cause Marketing: Our companys first concern is to help the
community and non-profit organizations. We will distribute baskets
for associations that help poor families living in measly
conditions., and give them social support.
We have chosen Association Trik Lkhir, a non-profit organization
that support elderly , disabled people and orphans. By aligning
withTrik l khir and supplying them with hydroponic fruit and
vegetables for free, our companys position as a good corporate
citizen in our area will have a positive impact on our image.
The table below summarizes the inputs necessary for each of the
media types ..
TypeMeanTitleWhyCostHowHow often
ListenerRadioMedi 1
MFM Inexpensive, reactive and effective.10.120DH
4800 MAD3530DH+6590 DH=10.120DH
Twice a day
once a week
ReaderNewspaperAufait90% of readers read it92,000DH36,000DH/
bleed page14,000DH/ 1/4 page.Once a year bleed pageEvery three
months 1/4 page
ReaderBrochureDetails of our services3,0000DH3DH/ brochureAs
they finish
ViewerOnlinewebsite
FacebookMajority of people have Facebook account.
E. Test market results1. Survey 2 questions mafhemtch comment
faire la derniere et li fiha classez selon je sai pa ok ok 2.
Results:
F. Location: on aura pa une land f rabat ,?our land is located
in douar lmanabha ,12 km from sidi bou3tman , small village in
Marrakesh regions
on doit presenter tout les aspects dial had lard hadi
Demographic analysis of location versus target customer profile We
believe that our location is close to all our target market, (
marakesh)Traffic countOur company is located in a strategic place
..Transportation: LESS TRANPSORTATION IN MARAK AND RABAT 9riba l
kesh biensur kesh jat f stategic location
Layout:H. Competitors Analysis Potential Competitors
Who might they be?Since we will be adopting a new, unique and
successful business in Morocco, and since well be the pioneers of
the market, we will have several potential competitors that would
be interested in entering the market, as the moroccan companies
that will imitate our business, and follow our strategy.Also, the
free trade agreement with many countries will favor import of
hydroponically grown produce from those countries that will be
solde at a competitive price as well. What impact they will have on
the business? The impact they may have is on our market since as
new competitors they will have no existing customers and if they
intend to survive they will need to quickly gain market share. To
do so they will probably adopt an aggressive growth strategy, and
as they start to poach our customers we will need to respond to
protect our business which tends to reduce margins across the
market.
Our strength lays in being good in selling our produce and
having a high market share. Our business will build strong and
lasting relationship with its customers that will make them loyal
to us. Our name will be always related to quality freshness and
taste. Knowhow will be our key success since we have already dealed
with different situations that helped us to know the market much
better and understand how to communicate with our customers in the
agriculture sector and determine their needs and wants . La maison
verte will monopolize and dominate the sector and these copycats
and followers wont have any room left.maria6-Sales and distribution
Strategy :Marrakech-Tensift-Al-Haouz: Produce's strategy focuses
first on meeting the demand of local distributors, retailers,
supermarkets , and restaurants with whom we have started to
establish relationships with. These clients are critical to our
ability to acquire additional accounts in most regions of without
having to spend significant amounts on sales efforts. Agadir ,souss
massa deraa region : Secondly we will focus on increasing the
volume of our sales to regional retailers and distributors in south
area .Guelmim-Es-Semara :When we have reached the maximum sales to
existing local channels we can shift the majority of our focus to
securing additional regional accounts to supply the need of
agriculture produce in this area Layoune-Boujdour-Sakia El Hamra :
a very limited agricultural resources in this region makes it a
good target market to supply the region with produce .
CompetitorsStrenghtsWeaknessesStrategy to bypass them
Group Arbor EXPOERIENCEseasonable fruit and veggiesproduce
vegetables and fruitts all yeabr round in large quantities
Wenza & Tiwiza
Les Domaines Agricoles
Farmers
Hypermarkets
Supermarkets
.Existing competitorsThere are many competitors that play an
important role in the agricultural industry in
Morocco.WholesalersGroup ArborArbor group is a company specialized
in the production of the pome fruits and stone fruits in Morocco
with sixty years of experience.Wenza & TiwizaAre two major
companies in the south of Morocco specialized in the production and
export of exotic fruits.Les Domaines AgricolesIts a major player
specialized in agricultural production and food industry.Les
Domaines Agricoles(known until 2003 as les Domaines Royaux)is the
largest Agribusiness in Morocco.It belongs to SIGER,the holding
company of its Majesty the King Mohammed VI. Acording to reports
the company conrols 12.000 hectars of irrigated lands in Morocco.
FarmersProduce traditional soil-based vegetables and
fruits.RetailersHypermarkets: Such as Aswak Asallam,Marjane and
Atacadao which are a large Moroccan specialized retailers
brands.Supermarkets: such as Acima,Carrefour and Bim which are a
large Moroccan specialized retailers brands.Markets: Such as le
march de Gros and le march centrale where other-tradictional
imported fruits and vegetables are sold.OthersAllo legumes: A
company specialized in the delivery of fruits and
veggies.www.souk-fruits-legumes: The online webiste of Nice fruits
Company sales. I. Most of the CropKing growers are small enough to
pick tomatoes directly into the box. This minimizes handling, which
helps command a premium price, says Brentlinger. The first tomatoes
available last spring wholesaled for $1.30 a pound. High returns
more than offset production costs, he adds.CropKing is not
promoting soilless vegetable production as a "get rich quick"
scheme, however. The company targets its products and services at
people who are willing to work hard and learn new production
techniques in return for enough income to allow them to remain in
farming. "A 1/4 to 1/2-acre facility is ideal for this kind of
controlled environment farm," Brentlinger suggests. The company is
testing other soilless media and keeps its growers updated on
production techniques through a newsletter, regular workshops, and
an annual conference. Interested growers will be able to hear some
well-known speakers on soilless culture at the annual conference1.
Special Events: (fait)a website and advertise on the Internet,
although these future marketing avenues are not included in this
plan.Competitors :Group ArborIt is a major player is the fruit
production industry and it is the leader in the distribution of
fresh fruits in Morocco.WENZAIts the major producer and supplier
specialized in the production of exotic fruits. The company find
the optimum conditions to produce the whole year exotic fruits in
the south of morocco.Les Domaines AgricolesIts a major player
specialized in agriculture production and food industry. Les
Domaines Agricoles (Known until 2003 as Les Domaines Royaux) is the
largest Agribusiness firm in Morocco. It belongs to SIGER, the
holding company of king Mohammed VI According to reports the
company controls 12,000 hectares of irrigated lands in
Morocco.FarmersProduce traditional-based vegetables and fruits.Allo
legumes: A company specialized in the the delivery of fruits and
veggies.www.souk-fruits-legumes: The online website of Nice fruits
Company sales.hydroponics good for farmers and for
customers:http://blog.alextiller.com/BlogRetrieve.aspx?BlogID=2729&PostId=54470II.
Competitor analysis:A. Existent competitors:Our business has no
direct competitors as there is no other business using the
hydroponics system in growing crops in Morocco. However we have
indirect competitors that are in the same sector selling fruits and
vegetables that have been grown traditionally.These companies are
Group Arbor, WENZA, Allo legumes: and of course all other small
shops that sell vegetables and fruits. Their strength lays in being
good in selling these produces and having a high market share. On
the other hand, their weakness lays in having high prices, and not
fresh ( kay khessrou bezerba)The matrix bellow sums up the strength
and weaknesses of these competitors:Current
competitorsStrengthsWeaknessesHow to overcome their strengths
Group Arborv high market sharev v there are several fruits that
are not available all over the yearv high pricev our fruits are
grown in a controlled environment so that we can grow any kind of
fruits all over the yearv low price ( economy of scales)
Wenzav . ??v ??v .??
Allo legume Les meilleurs produits frachement cueillis. Lgumes
cultivs sur nos terrains ou les terrains de nos partenaires Bons
Produits aux meilleurs Prix*Not delivered on time*Produce are
damaged ( kay khessro bezerba)*expensive
SmallshopsLkhedra jdida*Ka tekhser bezerba ou mrida !!*Dirty
produce*Not tasty*expensive
[1] http://www.new-ag.info/en/country/profile.php?a=869
AN
