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Hobby Seeds Division

Growth Plan for the Spanish Market
List of Contents
1. History
2. Objectives
3. Methodology
4. Project Plan
5. Macro Analysis Summary
6. Micro Analysis Summary
7. Spanish Market Research
8. Fit坦 Value Curve
9. Conclusion
10.Next Steps
11.Recommendations
12.Annex
                                   2
History
Hobby Seed Division Marketing Mix
      Product
           EuroGarden & Semillas Fit坦
      Price
           Semillas Fit坦  1,50/sachet + VAT
           EuroGarden  1,00/sachet + VAT
      Promotion
           Exhibition
           Point-of-Sale
           Education
      Place
           Modern Channel
           Traditional Channel


This is a brief overview of the Hobby Seeds Divisions current Marketing Mix  the
key being the strategy diversification between Eurogarden and Semillas Fit坦
Objectives

 Engineer Growth Plan for the Spanish Market
           Increase Brand awareness
           Increase market share
           Increase revenue
 Create Recommendations for Semillas Fit坦s
  Marketing Mix
             Compare prices with competitors
             Suggest new products
             Compare CSR and Online Marketing Tactics
             Find innovative new channels
Recommend actions for Semillas Fit坦 to consolidate market leadership in Spanish
market.                                                                           4
Project Plan


  Phase 1
                    Phase 2
 Research 4 major
 countries macro
                    Research Spanish
                                       Phase 3
 and micro
 situation          market and
                                     Analyze
                                                         Phase 4
                    competitors
                                     successful
                                     strategies taken by Create
                                     competition         recommendations
                                                         based on findings




By analyzing the four top Home & Garden markets, we created recommendations
based on the successes and weaknesses of the major global competitors         5
Methodology
Macro Analysis:                              Current Situation &        Marketing
                       Prioritization:       Trend in Countries:        Proposal for
 Consumer
                       Inhibitors            Macro trends             Fito:
  lifestyle
                       Drivers               Major                     Brand
 Indicators
                                                Competition              Promotion
                                                                         Channel
                                              Creativity Analysis:         and Price
                       Prioritization:
Micro Analysis:        Top                    Analyze online
 Market share           companies               policy
 Top                  Marketing              Compare Product
  competitors            Mix                     Selection

                                             Current Situation In
Fito Business Understanding:                 Spain
 Analyze Fit坦s current Marketing Mix        Observe Spanish
                                               consumer behavior

   We divided the Methodology into 2 parts, The Macro & Micro. Then we develop the
   marketing proposal based on our insights.                                         6
Macro Analysis

Hobby Garden
(USD Millions)
Seeds Market
Drivers:                           7                 12                 8               10
         Trend in Healthy
          Eating
         School Gardens
Inhibitors:
         Global
          Recession
         Available
          Growing Space
Growth

  Social trends are driving growth, while macro economic pressure is threatening it.
         Source: Nursery & Garden Stores in the US. IBISWorld Iexport Industry Summary 44422. November 2012
                               Gardening in Japan. Euromonitor International. May 2012
                            Gardening in France. Euromonitor International. October 2012.
Micro Analysis
                    Burpee                Takii                 Suttons               Vilmorin/ Oxadis

Product Variety

    Matching        478 Vegetable seeds    99 Vegetable Seeds   427 Vegetable seeds        unknown
    with Fito           296 flower          70 Flower Seeds      463 Flower seeds

    Different        5 Seed Categories        2 categories      11 Seed Categories         unknown
    Products/                                  4 Families           8 Families
    Families
    New varieties      29 vegetable            12 Flower           14 Vegetable            unknown
                        19 flower           23 Home garden          10 Flower

    Price Levels       .70-1.5 euros           Not found         賊 2.5 euros Varies        unknown
                    Depends on Location                              upon seed

Sales Channel       Walmart and garden         Not found        Garden Centers and         unknown
                         centers                                      online
Marketing


   Product Variety and Marketing activities plays important roles in consumer market to
   increase brand awareness.                                                                         8
Spanish Competitors
Product Variety               Batlle                  Rocalba                 Productos Flower

     Matching with Fito    222 Vegetable seeds   327 vegetable seeds     73 vegetable seeds
                           160 flower seeds      173 flower seeds        36 Flower
                           13 grass              26 grass                4 grass
     Different Products/   6 seed categories     3 seed categories       7 Seed categories
     Families              2 families            4 families

     Price Levels          1.5-1.8              2                      2

Sales Channels             Las Ramblas           Las Ramblas             Las Ramblas
                           Bordas (Hospitalet)

Marketing

Capillarity in Country




    Productos Flower has the most comprehensive marketing strategy of all the Spanish
    companies  they are Semillas Fit坦s most direct competition in the Spanish market.
Spanish Market Research
 Company: FIT                                           Company: BATLLE
 Where: El Corte Ingl辿s                                  Where: Jardineria Bordas (Hospitalet)
 Price: 2,00                                            Price: 1,50 




El Corte Ingl辿s is selling only Fit坦 seeds (for 2,00) and Jardineria Bordas
(Hospitalet) is selling only Batlle seeds (for 1,50).
                                                                                           10
                                 Source: Stores visits
Spanish Market Research
     Company: FIT                                         Company: BATLLE
     Where: El Corte Ingl辿s                                Where: Jardineria Bordas (Hospitalet)
     Price: 9,40  (30m2)                                  Price: 9,95  (40 m2)




El Corte Ingl辿s is sellling Turf grass from Fit坦 for 9,40 (30m2) and Jardineria
Bordas is selling it for 9,95 (40m2)
                                                                                             11
                                   Source: Stores visits
Value Curve
          Reduce               Raise               Create
   120
                                                                          Semilla Fito
   100
High



     80                                                                   Burpee

     60                                                                   Suttons

     40
                                                                          Vilamorin
     20
                                                                          Takii
 Low 0


     Price      Channels Product             Social          CSR
                           Lines             Media
 Semillas Fitos competitive strength lies in its high quality product, however,
 Semillas Fito could redirect efforts to become more consumer oriented.
Conclusions

 We recommend that Semillas Fito invest in Brand
          Rebrand Product Lines (ex.: Mediterranean Kitchen, Kids Line, Christmas Line)
          CSR Policy
               Employee welfare
               School/Public gardens
               Community Activities
          Update Point-of-Sale
 To maintain competitive advantage, focus on Promotion
          Loyalty Programs and Gift Certificates
          Update your marketing merchandise to remain global
          Buzz Gardening to develop Gardening Market
 Beware of competition in Price and Channels
          Online presence
                 Online Sales
                 Social Media (Facebook, Twitter, YouTube)
                 Store Locator
                 SEO
          Price
          Promotional Prices & Discounts

 Suggestion for the future recommendation, Marketing Strategies and Competitive
 advantages, and Pricing and Distribution                                                  13
Next Steps
   Sell online
   Product Diversification
   Develop CSR Activities
   Community Outreach




From all the marketing analysis that we obtain from competitor, we suggest Semillas
Fit坦 to conduct several strategies to be able to compete in global market             14
Recommendations
    Sell online                                                                                        Suttons

     Put catalog online
     Make products easily searchable
     Create Shopping Cart & Checkout
     Offer personalized recommendations
     Social Media Marketing using a
      contracted intern




 4% of Home & Garden Sales in Spain are online,
  but 60% of consumers conduct online research                                                         Burpee
  before purchasing
 Online search for home & garden grew 49% year
  over year from 2011 to 2012
The top priority for Semillas Fito should be to establish a new online sales channel in
order to meet customers where they are and stay up-to-date with new trends.
    Sources: http://www.consumerbarometer.com/#?app=home&viewMode=0,   http://www.google.com/trends/
Recommendations

Product Diversification
   Selling gifts, flowers, and other peripherals
   Rebranding product lines to be more consumer
    oriented (Mediterranean Kitchen, Kids
    Garden)




   Suttons has Fun to Grow- Seeds for Kids! to
    encourage life long gardening and educate in line
    with Stage 1 of National Curriculum
   Burpee & Suttons have Seasonal Gift Offerings to
    capture the holiday spikes in sales

By rebranding product lines & focusing on consumer demands, the Hobby Seed
Division can become more consumer-oriented                                   16
Recommendations
 Develop CSR Activities
    Educate students
    Create an Employee Wellness Program
    Provide the how to plant videos




   Build the good brand image to the public
   Gives employees a clear understanding of
    what is their responsibility and welfare.
   Gives the users directly information and
    show it visually

A strong CSR Policy benefits companies in branding and retaining happy customers
and employees                                                                      17
Recommendations
Community Outreach
   Sponsor Patio Competition in Southern Spain
   Partner with a Social Outreach Class to develop
    gardening programs in residence and prisons
   Buy a packet of seeds, donate a packet of seeds to a
    developing country




   C坦rdobas Batalla de Las Flores is government
    sponsored competition attracting citywide
    participation and tourism
   Schools participate in student outreach programs &
    need projects
   Allowing your customers to do good by consuming
    your product is huge CSR trend (TOMS, Warby
    Parker)

Community Outreach builds brand, contributes to social responsibility, and generates
goodwill                                                                               18
Thank you!




             19
Country Summary
Competitors




Environment




    Overall, the Opportunities & Strengths outweigh the Threats & Weaknesses of the U.S.
    market, because although you must have a strong consumer brand to be a player,
    consumer trends are favorable to a growing gardening market.
                                                                                           20
   Gardening in the United States. Passport. Euromonitor International. July 2012.
   Gardeners Supply Customer Service. Direct Email. 12.11.2012.
Country Summary
Competitors




Environment




    The use of technology allow the UK company own special strategies when competing
    with other competitors, but the limited of gardening space and low consumer
    confidence can bottleneck these companies growth.
                                                                                                              21
                 Source: Gardening in the United Kingdom. Passport. Euromonitor International. July 2012.
Country Summary
Competitors




Environment




    The traditional retail marketing make the France company close to their
    consumers, but the lack of official website and online store are the most seriously
    problem when they are competing in the global market.
                                                                                                      22
                             Gardening in France. Passport. Euromonitor International. July 2012.
Country Summary
Competitors




Environment




    Because of the focus on CSR and the shifting of targeting market, the JAPAN
    company exist unique strategies. But the increased taxes is a huge barrier to new
    entrants.
                                                                                                     23
                             Gardening in Japan. Passport. Euromonitor International. July 2012.
Main Competitors
                             Online marketing is provided by the way of e-Commerce
Similarities                 Across country network to provide directly information
                              to their customer
                             Increased competition situation
                             Expiration of key product patent
                             CSR activities


                          
Differences               
                              The investment on marketing as well as brand image
                              Global partnership is different from company to
                              company
                             The abilities of manage CPR(crisis public relation )
                             The specialist of products and solutions that different
                              companies provide



 American companies invest heavily in patenting, marketing and advertising, and e-
 Commerce, but they have varying degrees of global partnership & CSR                    24
Main Competitors

Similarities                 Take advantage of social media especially on the use of
                              website and e-Commerce abilities
                             Online store as well as traditional Retailer store
                             Increased competition situation
                             CSR activities

                             The investment on market research and market activities
Differences                  Global partnership
                             Independent & Subsidiary




The U.K. companies are quite advanced in the online marketing, sales, and social
media, but they invest less on product development                                      25
Main Competitors
                             Gift Certificates & Loyalty card
Similarities                 The investment on marketing and creative marketing
                              solutions are needed
                             Increased competition situation
                             CSR activities


                          
Differences               
                              No Official Website & No Online Store
                              The investment on market research and market activities
                             Global partnership
                             The abilities of manage CPR(Crisis Public Relation )




Vilmorin is currently re-vamping its Oxadis brand to increase their consumer
oriented marketing and web promotion                                                    26
Main Competitors

Similarities                 Take advantage of social media especially on the use of
                              website and e-Commerce abilities
                             Emphasis on the credibility of its product by showing
                              both the companys longevity and the seeds renowned
                             The values of sustainability, longevity, innovation, and
                              social wellbeing in its PR strategy

                             Global partnership when facing the expanding issues
Differences                  SKATA Specialized in online shopping for home
                              gardeners
                             Across country network to provide directly information to
                              their customer




The Japanese companies emphasize CSR and their responsibility to their
communities and employees                                                                27

More Related Content

Semillas fito; growth in the spanish market

  • 1. Hobby Seeds Division Growth Plan for the Spanish Market
  • 2. List of Contents 1. History 2. Objectives 3. Methodology 4. Project Plan 5. Macro Analysis Summary 6. Micro Analysis Summary 7. Spanish Market Research 8. Fit坦 Value Curve 9. Conclusion 10.Next Steps 11.Recommendations 12.Annex 2
  • 3. History Hobby Seed Division Marketing Mix Product EuroGarden & Semillas Fit坦 Price Semillas Fit坦 1,50/sachet + VAT EuroGarden 1,00/sachet + VAT Promotion Exhibition Point-of-Sale Education Place Modern Channel Traditional Channel This is a brief overview of the Hobby Seeds Divisions current Marketing Mix the key being the strategy diversification between Eurogarden and Semillas Fit坦
  • 4. Objectives Engineer Growth Plan for the Spanish Market Increase Brand awareness Increase market share Increase revenue Create Recommendations for Semillas Fit坦s Marketing Mix Compare prices with competitors Suggest new products Compare CSR and Online Marketing Tactics Find innovative new channels Recommend actions for Semillas Fit坦 to consolidate market leadership in Spanish market. 4
  • 5. Project Plan Phase 1 Phase 2 Research 4 major countries macro Research Spanish Phase 3 and micro situation market and Analyze Phase 4 competitors successful strategies taken by Create competition recommendations based on findings By analyzing the four top Home & Garden markets, we created recommendations based on the successes and weaknesses of the major global competitors 5
  • 6. Methodology Macro Analysis: Current Situation & Marketing Prioritization: Trend in Countries: Proposal for Consumer Inhibitors Macro trends Fito: lifestyle Drivers Major Brand Indicators Competition Promotion Channel Creativity Analysis: and Price Prioritization: Micro Analysis: Top Analyze online Market share companies policy Top Marketing Compare Product competitors Mix Selection Current Situation In Fito Business Understanding: Spain Analyze Fit坦s current Marketing Mix Observe Spanish consumer behavior We divided the Methodology into 2 parts, The Macro & Micro. Then we develop the marketing proposal based on our insights. 6
  • 7. Macro Analysis Hobby Garden (USD Millions) Seeds Market Drivers: 7 12 8 10 Trend in Healthy Eating School Gardens Inhibitors: Global Recession Available Growing Space Growth Social trends are driving growth, while macro economic pressure is threatening it. Source: Nursery & Garden Stores in the US. IBISWorld Iexport Industry Summary 44422. November 2012 Gardening in Japan. Euromonitor International. May 2012 Gardening in France. Euromonitor International. October 2012.
  • 8. Micro Analysis Burpee Takii Suttons Vilmorin/ Oxadis Product Variety Matching 478 Vegetable seeds 99 Vegetable Seeds 427 Vegetable seeds unknown with Fito 296 flower 70 Flower Seeds 463 Flower seeds Different 5 Seed Categories 2 categories 11 Seed Categories unknown Products/ 4 Families 8 Families Families New varieties 29 vegetable 12 Flower 14 Vegetable unknown 19 flower 23 Home garden 10 Flower Price Levels .70-1.5 euros Not found 賊 2.5 euros Varies unknown Depends on Location upon seed Sales Channel Walmart and garden Not found Garden Centers and unknown centers online Marketing Product Variety and Marketing activities plays important roles in consumer market to increase brand awareness. 8
  • 9. Spanish Competitors Product Variety Batlle Rocalba Productos Flower Matching with Fito 222 Vegetable seeds 327 vegetable seeds 73 vegetable seeds 160 flower seeds 173 flower seeds 36 Flower 13 grass 26 grass 4 grass Different Products/ 6 seed categories 3 seed categories 7 Seed categories Families 2 families 4 families Price Levels 1.5-1.8 2 2 Sales Channels Las Ramblas Las Ramblas Las Ramblas Bordas (Hospitalet) Marketing Capillarity in Country Productos Flower has the most comprehensive marketing strategy of all the Spanish companies they are Semillas Fit坦s most direct competition in the Spanish market.
  • 10. Spanish Market Research Company: FIT Company: BATLLE Where: El Corte Ingl辿s Where: Jardineria Bordas (Hospitalet) Price: 2,00 Price: 1,50 El Corte Ingl辿s is selling only Fit坦 seeds (for 2,00) and Jardineria Bordas (Hospitalet) is selling only Batlle seeds (for 1,50). 10 Source: Stores visits
  • 11. Spanish Market Research Company: FIT Company: BATLLE Where: El Corte Ingl辿s Where: Jardineria Bordas (Hospitalet) Price: 9,40 (30m2) Price: 9,95 (40 m2) El Corte Ingl辿s is sellling Turf grass from Fit坦 for 9,40 (30m2) and Jardineria Bordas is selling it for 9,95 (40m2) 11 Source: Stores visits
  • 12. Value Curve Reduce Raise Create 120 Semilla Fito 100 High 80 Burpee 60 Suttons 40 Vilamorin 20 Takii Low 0 Price Channels Product Social CSR Lines Media Semillas Fitos competitive strength lies in its high quality product, however, Semillas Fito could redirect efforts to become more consumer oriented.
  • 13. Conclusions We recommend that Semillas Fito invest in Brand Rebrand Product Lines (ex.: Mediterranean Kitchen, Kids Line, Christmas Line) CSR Policy Employee welfare School/Public gardens Community Activities Update Point-of-Sale To maintain competitive advantage, focus on Promotion Loyalty Programs and Gift Certificates Update your marketing merchandise to remain global Buzz Gardening to develop Gardening Market Beware of competition in Price and Channels Online presence Online Sales Social Media (Facebook, Twitter, YouTube) Store Locator SEO Price Promotional Prices & Discounts Suggestion for the future recommendation, Marketing Strategies and Competitive advantages, and Pricing and Distribution 13
  • 14. Next Steps Sell online Product Diversification Develop CSR Activities Community Outreach From all the marketing analysis that we obtain from competitor, we suggest Semillas Fit坦 to conduct several strategies to be able to compete in global market 14
  • 15. Recommendations Sell online Suttons Put catalog online Make products easily searchable Create Shopping Cart & Checkout Offer personalized recommendations Social Media Marketing using a contracted intern 4% of Home & Garden Sales in Spain are online, but 60% of consumers conduct online research Burpee before purchasing Online search for home & garden grew 49% year over year from 2011 to 2012 The top priority for Semillas Fito should be to establish a new online sales channel in order to meet customers where they are and stay up-to-date with new trends. Sources: http://www.consumerbarometer.com/#?app=home&viewMode=0, http://www.google.com/trends/
  • 16. Recommendations Product Diversification Selling gifts, flowers, and other peripherals Rebranding product lines to be more consumer oriented (Mediterranean Kitchen, Kids Garden) Suttons has Fun to Grow- Seeds for Kids! to encourage life long gardening and educate in line with Stage 1 of National Curriculum Burpee & Suttons have Seasonal Gift Offerings to capture the holiday spikes in sales By rebranding product lines & focusing on consumer demands, the Hobby Seed Division can become more consumer-oriented 16
  • 17. Recommendations Develop CSR Activities Educate students Create an Employee Wellness Program Provide the how to plant videos Build the good brand image to the public Gives employees a clear understanding of what is their responsibility and welfare. Gives the users directly information and show it visually A strong CSR Policy benefits companies in branding and retaining happy customers and employees 17
  • 18. Recommendations Community Outreach Sponsor Patio Competition in Southern Spain Partner with a Social Outreach Class to develop gardening programs in residence and prisons Buy a packet of seeds, donate a packet of seeds to a developing country C坦rdobas Batalla de Las Flores is government sponsored competition attracting citywide participation and tourism Schools participate in student outreach programs & need projects Allowing your customers to do good by consuming your product is huge CSR trend (TOMS, Warby Parker) Community Outreach builds brand, contributes to social responsibility, and generates goodwill 18
  • 20. Country Summary Competitors Environment Overall, the Opportunities & Strengths outweigh the Threats & Weaknesses of the U.S. market, because although you must have a strong consumer brand to be a player, consumer trends are favorable to a growing gardening market. 20 Gardening in the United States. Passport. Euromonitor International. July 2012. Gardeners Supply Customer Service. Direct Email. 12.11.2012.
  • 21. Country Summary Competitors Environment The use of technology allow the UK company own special strategies when competing with other competitors, but the limited of gardening space and low consumer confidence can bottleneck these companies growth. 21 Source: Gardening in the United Kingdom. Passport. Euromonitor International. July 2012.
  • 22. Country Summary Competitors Environment The traditional retail marketing make the France company close to their consumers, but the lack of official website and online store are the most seriously problem when they are competing in the global market. 22 Gardening in France. Passport. Euromonitor International. July 2012.
  • 23. Country Summary Competitors Environment Because of the focus on CSR and the shifting of targeting market, the JAPAN company exist unique strategies. But the increased taxes is a huge barrier to new entrants. 23 Gardening in Japan. Passport. Euromonitor International. July 2012.
  • 24. Main Competitors Online marketing is provided by the way of e-Commerce Similarities Across country network to provide directly information to their customer Increased competition situation Expiration of key product patent CSR activities Differences The investment on marketing as well as brand image Global partnership is different from company to company The abilities of manage CPR(crisis public relation ) The specialist of products and solutions that different companies provide American companies invest heavily in patenting, marketing and advertising, and e- Commerce, but they have varying degrees of global partnership & CSR 24
  • 25. Main Competitors Similarities Take advantage of social media especially on the use of website and e-Commerce abilities Online store as well as traditional Retailer store Increased competition situation CSR activities The investment on market research and market activities Differences Global partnership Independent & Subsidiary The U.K. companies are quite advanced in the online marketing, sales, and social media, but they invest less on product development 25
  • 26. Main Competitors Gift Certificates & Loyalty card Similarities The investment on marketing and creative marketing solutions are needed Increased competition situation CSR activities Differences No Official Website & No Online Store The investment on market research and market activities Global partnership The abilities of manage CPR(Crisis Public Relation ) Vilmorin is currently re-vamping its Oxadis brand to increase their consumer oriented marketing and web promotion 26
  • 27. Main Competitors Similarities Take advantage of social media especially on the use of website and e-Commerce abilities Emphasis on the credibility of its product by showing both the companys longevity and the seeds renowned The values of sustainability, longevity, innovation, and social wellbeing in its PR strategy Global partnership when facing the expanding issues Differences SKATA Specialized in online shopping for home gardeners Across country network to provide directly information to their customer The Japanese companies emphasize CSR and their responsibility to their communities and employees 27

Editor's Notes

  1. Wisnu
  2. Add gantt
  3. Wisnu
  4. 18% of people purchasing online in Spain4% Garden Equipment, DIY, and tools are purchased online