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Kathleen McDonald, Kari Nass, Emma Reynders, Ashleigh Walker and Justine White
IBM Food Traceability
Marketing Plan
Agenda
Market Opportunity Analysis Business Overview Technology Assessment Market Analysis Competitor Analysis SWOT Analysis Critical Success Risk Factors MOA Conclusion
Marketing Strategy Strategy Platform Product Plan Sales and Distribution Plan Promotion Plan Pricing Plan
Implementation Financials Controlling the Marketing Plan Organizational Requirements
I. II.
III.
Business Overview History - IBM, International Business Machine Corporation is one of the
largest, most profitable computer companies in the world. IBM dates back to 1896 when it was founded by Herman Hullerith, it began as a tabulating machine company and has since grown to make a Supercomputer and more recently the food traceability system.
Primary Customer Base Manufacturers Grocers Distributors Retailers End Users
Market Leader – Due to international relations made, IBM has become a leader within food traceability systems.
Differentiation – IBM stands out within this particular market because of its well known name and the trust its name carries with consumers.
Technology Assessment
Market Analysis
Market Segments
Segment Contrast Mix
Adoption By Technology
Segment Profile Curve
Segment Profile Curve
Segment Attractiveness
Market Analysis Summary
Competitive Analysis
Competitor Profiles Company Establishe
dNo.
EmployeesMarket Position
IBM
1910 399,409 •Market leader in traceability software and services
2005 30 •Second to IBM in food traceability depth and reach
ProducePak
2000 25 •Primarily agricultural software low overall market position
1990 25 •Largest international provider of Microsoft based food software solutions
1987 50 •Largest U.S. provider of Microsoft based food software solutions
Factors Driving Competition Competitive factors:
On-demand information sharing with consumer
Food chain transparencyBrand imageReduce risk and liabilityInventory management – prevention of
food wasteEase of implementation and useMeet labeling/traceability requirementsSuperior service and support
Competitive Factors Map
0
1
2
3
4
5
6
7
8
9
10
Competive Factor Analysis
IBM
Harvest Mark
ProducePak
citFOOD
e-food
Competitive Factors
Rel
ativ
e V
alu
e
Competitive Position
Strong
Brand Image
Weak
Weak Strong
Brand Awareness
BCG Matrix Positioning and Brand Image
• IBM has the best brand image overall
• Harvest Mark is a very close second for traceability
Competitive Analysis Conclusion IBM is a leader in the food traceability arena
through partnerships with numerous countries to establish a food traceability network
Factors affecting the competition going forward: Stricter guidelines for food traceability will
stimulate need for software and RFID tags/labels Greater consumer awareness and preference for
traceable food products
Competitor to present the biggest challenge will be HarvestMark
Net Assessment
POSITIVES NEGATIVES
INTERNAL
StrengthsSave companies money
Increase efficiency in supply chain/logistics
Increase food safety
WeaknessesTechnology limitations
High cost
EXTERNAL
OpportunitiesGovernment regulations
Increase business bottom line profit
ThreatsSoftware is imitable
Difficult to differentiate
SWOT Analysis
Many avenues to market to… Manufacturers Grocers Distributors Retailers End users (consumers)
R&D will allow tracking to become faster, less expensive, more accurate and ubiquitous
RFID tracking: Improve labor costs (i.e. no more overtime for
inventory) Make reordering, restocking and checkout
instantaneous with unique feature to scan multiple items at once
Future Prospects
High cost of implementing and maintaining the hardware and software Installation alone can cost around $250,000 plus
additional costs for training, support and maintenance
Limitations of technology RFID tags become disrupted in high levels of
moisture Little differentiation in software and hardware
Many competitors Need to find customer value in order to differentiate
Software is highly imitable Patents and copyrights can only protect software
in fairly specific terms which leaves open the possibility of designing around a patent or copyrighted work.
Risk Factors
Continued movement toward the public wanting knowledge on where there food comes from Health conscious people and persons who have been
affected by food-borne illness are demanding more information on products
Government regulations that force grocers to trace products Heavily publicized food recalls have pressured the
government to take more action. Government has implemented food safety working groups
to work with the FDA and outline new regulations Business showing bottom line profits increasing as
traceability allows for companies to improve efficiencies Food traceability can be considered an investment RFID will allow business to cut back on labor and forecasting
will be a thing of the past. Tracking software and RFID will reorder quantities once the safety stock has reached it’s low based on data entered by management
Success Factor
IBM’s well known name allows the company to enter the food traceability market with distinction IBM has historically built a brand around quality that
allows their consumers to recognize it’s trustworthiness
Making the decision to implement IBM’s food traceability will increase the business’s bottom line profit
A business implementing IBM’s food traceability will demonstrate to the public forward thinking, dependability, honesty, and integrity
A marketing opportunity exists for companies that implement IBM’s food traceability to exhibit they can stay ahead of government regulations and “set the standard” for other businesses to follow.
Conclusion