Question

The Basket of Goodies (BOG) is a premier gift basket manufacturer and retailer. BOG is concentrating on making gourmet gift baskets out of a wide range of high quality ingredients. In addition to having several flagship baskets, BOG will also offer the option of a custom basket, allowing the customer to choose the ingredients themselves. BOG will be selling to individuals as well as corporations. Initially the bulk of BOG's business will be generated from individuals, but as time passes, a growing percentage of sales will come from corporations . While there are many different competitors in the market now, they are larger in size and much less flexible. BOG will be able to meet customer demands through superior products, customer attention, and customer product offerings. BOG will be raising awareness of their products through the use of a brochure and a Website. Once a customer is interested in placing an order, they can come by the office, call in the order, or order via our secure Website. In addition to the customer being able to pick up the basket from BOG's office, BOG can ship it to them via UPS. Once up and running with some momentum, BOG will be steadily producing profits. It is projected that by December BOG will be profitable. By the end of year three, it is projected that BOG will be generating over $5,000 in income.Basket of Goodies is entering its first year of operation. BOG recognizes the importance of crafting and following a comprehensive marketing plan. BOG offers the market a high quality, gourmet gift basket at a reasonable price. In addition to having four stock baskets, BOG will allow customers to customize their own basket from a list of possible ingredients.BOG possess good information about the market and knows a great deal about the common characteristics of the prized customers. BOG will leverage this information to better understand who is served, their needs, and how BOG can best communicate with them. BOG recognizes that this is an evolving process that requires multiple intervals of attention throughout the year.Bassket of Goodies is providing its customers with very attractive gourmet food baskets. These baskets come in several standard themes as well as the option of creating a custom basket. BOG seeks to fulfill the following benefits that are important to customers: • Selection- BOG offers many different stock baskets as well as the opportunity for the customer to choose the perfect ingredients for their basket. • Price- BOG operates on a low overhead model, allowing them to generate fair margins and competitive prices. • Customer Service- BOG recognizes that superior customer service is needed in order to gain market share and be competitive.

Question: The “strategy” of their marketing plan, including the strategic mission of the firm and the mission statement What are the target markets and how do they plan to exploit them? What segmentation strategy did they use? Discuss those. Be specific here.

Answer 1

*Target markets:

Initially the target market is Individual people. Later on their target market will be Corporates as they start growing. It is so because there already exists competation, hence BOG wants to establish itself first by targeting individual customers initially.

*Plan of BOG to exploit target market:

1. Giving superior product at lower cost

2. By making available the option to customise basket with choice of customer's choosed ingredients.

3. BOG will attract customers via brochure and website to let people know about their service.

4. High quality customer service.

5. Giving both pick up and shipping options to get the product.

* Segmentation stratigy used by BOG are:

1.Demographic Segmentation Approach- this segment relates to age ,gender, occupation , income etc. Herein BOG is looking forward to give products of high quality at reasonable price, thus looking at the cost factor so as to include people of low income groups as well.

2. Behavioural segmentation approach- it includes buying readiness and pattern of customers, user status of customers etc. As mentioned in the case study that BOG possess good information about market and knows great deal about characteristics of prized customers and BOG will use this information to serve better, thus it is indicating about how to leaverage the information obtained thereby looking at the behaviour of customers to focus better on how to give them mkre satisfaction.