This document provides an overview of Hobby Seeds Division's growth plan for the Spanish market. It includes a history of the division's marketing mix, objectives to increase brand awareness and market share, and a project plan to research the Spanish market and competitors. A methodology section outlines macro and micro analysis of four key home and garden markets to develop recommendations for Semillas Fit坦. The document concludes with suggested actions for Semillas Fit坦 to consolidate leadership in Spain, including investing in brand, promotion, and addressing competition in price and channels.
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
Wisnu
Add gantt
Wisnu
18% of people purchasing online in Spain4% Garden Equipment, DIY, and tools are purchased online