This chapter explore about Marketing and Sales strategy of Bio Bean. In the following chapter explains in depth of Marketing and Sales Strategy such as who is the target market, segmentation and positioning, product strategies. Chapter covers, distribution of Bio Bean products and how to promote and advertising of Bio Bean products. Bio Bean is one the developing company that is planning to enter Swedish market. Swedish market can give huge opportunities for innovative and new companies like Bio Bean. Moreover, distribution strategies, and advertising strategies are explained below.
Market Segmentation Strategy
Market segmentation strategy helps any business around the globe through directing deep and structural approach. Market segmentation is involving broad target market such as consumers, businesses, and countries. Therefore, market segmentation is really essential. In terms of Bio Bean is still developing company and current market segmentation strategy involves geographic market segmentation due to entering to Swedish market. Obviously Bio Bean has currently two products and segmentation strategy involves businesses. Swedish market is very unique through innovative market as well as Swedish people are very passionate for technology and innovation. Therefore, Swedish market will bring huge opportunities and Sweden is one of highest coffee consuming country in the globe.
Targeting strategy will help businesses to give strategic approach. Targeting strategy is about selection of potential customers or businesses in order to sell or promote service/product. Target market for Bio Bean will be small, medium and large businesses across the Swedish market. Obviously, Swedish market is very competitive due to technology hub and continuous innovation in the country. Target market of Bio Bean will involve promoting two products to those who involves with coffee. One of the advantage is there are many coffee shops around the Sweden. Nowadays, almost any company in the world looking for a renewable energy with cost effective solutions.
Product /Service Strategy
Product is marketing term that anything to offer market may satisfy want or need. Product or service is a bloodline to any business. Currently, Bio Bean offers two products to its clients and there are biomass pallets and briquettes. Two products are very unique and offer competitive prices. Products are 100 % natural and manufactured in the UK displacing imported biomass. Swedish market is open and huge demand for renewable energy business. Bio Bean's products developed for the purpose of commercial use.
Well positioned strategy gives well result, therefore positioning company and its product or services are very important aspect. Bio Beans market positioning strategy is about how to help clients in order to be more efficient. Bio Bean helps clients through offering two products and products can generate renewable energy. Energy is very essential for any country in the world. Swedish businesses are turning into renewable energy businesses means companies are trying to reduce their cost through using renewable energy. Bio Bean products can help to renew energy and increase the efficiency. Swedish market is second largest coffee consuming country in the world. Therefore, positioning strategy correctly is really essential.
In terms of pricing strategy is one of the key elements of the success factor. Nowadays, every single company has to be very strategic in order to set the right price. Competition is very high in every sector of the business therefore; pricing has to be very careful. There are two types of pricing strategy price penetration and price skimming. Price penetration means reaching everyone with setting affordable price and product can be new. Price skimming means price of the product is high and product is already in the market. In terms of Bio Bean will be using price penetration strategy in order to reach every single client. Price penetration strategy will be beneficial for Bio Bean due to it is a brand new product. Price penetration strategy will certainly be good option through offering affordable price to the clients.
Distribution strategy will include using through different types of distributing channels. Distribution has always been effective way in order to increase the profit. Through distribution channels, products can reach to everyone as a result it will increase the availability of the product in the market. Bio Bean will be using Swedish channels in order to distribute the product to the clients. Distribution Channel can be local dealers, as well as wholesale retailers, and other third party. Through distribution strategy Bio Bean will be able to market the product very quickly. Especially, in new market distributors will be playing a key role. Local distributors are very competitive in Swedish market and there is good opportunity for Bio Bean in order to operate successfully in Swedish market.
Promotion and Advertising Strategy
Promotion and Advertising Strategy includes online and offline tools. Over the decades promotional strategy has been very efficient and effective to any company in the world. Nowadays, many companies are using promotional strategy in order to promote their product or service. Promoting the product and service will bring positive results. In terms of Advertising is a key strategy for any company. Due to competitive environment companies required to come with better and innovative approach of advertising strategy. Bio Beans promotion and advertising strategy will be innovative and new approach to send the message across to clients. Online tool will include, Facebook, Twitter, LinkedIn, Bio Bean Swedish web page in order to advert and promotions. Additionally, Bio Bean will be using offline strategy too which includes Corporate Exhibitions, Ecological Labels, and Partnerships.
Sales forecast is very effective strategy in order to reach the certain target and cover the whole cost. Coming up with effective sales forecasts will always be a bonus for every single company. Sales forecasts are extremely essential. In terms of Bio Beans sales forecasts will depends on the sales strategy. According to Income Statement of Bio Bean year one sales figures are showing GBP 408000, year two showing GBP 748000, year three GBP 952000 year four GBP 1332800 year five GBP 1428000. According to figures are indicates that Bio Bean in year one Bio Bean will reach to breakeven point which is great result.
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