MBA FPX 5012 Assessment 3 Digital Marketing Plan

Student Name

Capella University

MBA-FPX5012 Marketing Management

Prof. Name

Date

Digital Marketing Plan

MSH Brands pet food was established in 1991 with the objective of creating nutrient-dense and fresh dog food. The company developed all its products using fresh ingredients and nutrients, collaborating with veterinarians. The initial products included beef and vegetables such as pumpkin, carrots, and peas. With the support of fundraising efforts, MSH Brands secured sufficient funds to continue production and expand their product line with a broader variety of proteins, vegetables, and vitamins. As a relatively new player in the larger pet food industry, the company needs to assess its current position and development. MSH Brands plans to market its products to the public using the SOSTAC model.

SOSTAC

To market a company and its products effectively, especially in digital marketing, it is crucial to adopt strategies that differ from conventional methods. In the 1990s, economist PR Smith introduced the SOSTAC model, designed to help companies create and execute a digital marketing plan to grow their business. SOSTAC stands for Situation, Objectives, Strategy, Tactics, Actions, and Control. This model provides companies with a step-by-step process for creating a marketing plan, ensuring that each relevant factor is considered (Stephenson, 2023). Each step is explained in detail, showing overlap between the stages.

Situational Analysis

The first step in the SOSTAC model involves conducting a situational analysis to determine the company’s current position. A useful way to start this section is by creating a SWOT analysis (Figure 1), which provides insights into the question: where are we now? A SWOT analysis examines the internal strengths and weaknesses of the company. The strengths of MSH Brands include customer trust, emotional advertising that resonates with viewers, and the use of all-natural ingredients, which is uncommon in the pet food industry.

The weaknesses include the higher prices of their pet food compared to competitors and the fact that the company only sells online. The company has several opportunities, such as the growing focus on health, which extends to pets, the increasing number of pet owners, and new regulations from agencies requiring companies to stop using non-natural ingredients in their products. However, threats include high competition, rising distribution costs, and a significant workforce shortage. After completing a SWOT analysis, the company should review their customers, competitors, and current market trends to understand how these factors might help or hinder the business.

Figure 1: SWOT Analysis

Customers

Many pet owners today are more focused on their personal health and active lifestyles and are extending that focus to their pets. Currently, MSH Brands’ customers are primarily millennials who prioritize the health and quality of life of their pets. These customers are typically aged between 22 and 35 years. Targeting this demographic is strategic, as they are highly attentive to their health and lifestyle choices. This generation considers what their pets consume and live around as crucial as their own well-being. Our ideal customer is health-conscious, leads an active lifestyle with their pets, and is willing to pay premium rates for higher-quality products. They generally shop at stores like Costco, Trader Joe’s, and Whole Foods.

Additionally, many of these customers prefer the convenience of online shopping. Millennials, in particular, are likely to spend more online if offered free shipping, leading to higher sales. Offering both online ordering and in-store pickup options benefits all generations. Providing the option to pick up pet supplies at local pet stores, grocery stores, or veterinary offices not only boosts revenue but also increases brand awareness.

Intermediaries

The pet food industry has grown increasingly competitive and advanced in recent years. The intermediaries for MSH Brands include local pet stores like PetSmart, Petco, and Chuck & Don’s, large grocery stores such as Walmart and Target, and online retailers including Amazon, the MSH website, and Chewy.com. To address the high competition, the company must explore innovative marketing strategies. MSH Brands will engage customers early by providing product samples before the official product release. Additionally, the company will need to establish and maintain ongoing relationships with these retailers and closely monitor progress. Discount codes will be offered to customers who subscribe to the company’s website and newsletters.

Competencies

In evaluating market segments, MSH Brands must consider the overall attractiveness of the segment, along with the company’s objectives and resources (Kotler & Keller, 2016). The primary competitive advantage for MSH Brands lies in the fact that all products are certified organic, nutrient-dense, and made with fresh ingredients. This carefully crafted blend of fresh products and nutrients positions the company strongly within the pet food market.

Objectives

The second step in the SOSTAC model involves setting goals for the company. MSH Brands employs the SMART framework to establish these goals. SMART stands for Specific, Measurable, Attainable, Relevant, and Time-bound (Cowley, 2016). Figure 2 illustrates each aspect of SMART. Companies often have multiple goals, so it is crucial to focus on a few at a time to allow for in-depth exploration, rather than spreading resources too thinly. All investors should participate in goal-setting and ensure alignment in guiding the company’s future direction.

The first question to address in the SMART framework is: What are the specific objectives the company wants to achieve?

• Increase the company’s presence in the pet industry through social media. Utilizing platforms like Facebook and Instagram will help reach viewers through pet-focused accounts. Followers can receive discount codes via these accounts.
• Become the leader in promoting healthy, happy pets by using all-natural and fresh ingredients.
• Reduce costs by implementing simpler, more customizable marketing strategies.

The second question is: What do we want to measure, and what metrics will we use?

• Enhance customer understanding of the benefits of all-natural and fresh ingredients for their pets. Metrics include follows, reposts, and views.
• Increase website traffic, which typically correlates with higher sales.

MBA FPX 5012 Assessment 3 Digital Marketing Plan

The third question is: What can be attained?

• A 75% increase in revenue.
• Improved customer understanding.
• Increased interest in future products.

The fourth question is: How is digital marketing relevant?

• Awareness and availability of our mission will be broadly communicated.
• Digital marketing fosters closer connections with customers, promoting long-term loyalty.

The final question is: What is the timeline for achieving these goals?

• Launch the new product, Clean Meals, by the second quarter of 2024.
• Achieve revenue growth by the end of 2023.
• Boost customer awareness by the fourth quarter of 2023.

These answers form the foundation for setting company goals. While many goals may not be transformative, they will contribute to the company’s overall growth. All investors should participate in goal-setting and ensure alignment in guiding the company’s future direction.

Figure 2: SMART Framework

Strategy

The third step in the SOSTAC model is strategy, which outlines how the company will achieve the desired outcomes from the plan. This section maps out short-term, medium-term, and long-term strategies.

Short-term goals are those achievable within one year. MSH Brands will focus on launching new products, such as Clean Meals, to attract both new and existing customers. Increased customer engagement will lead to higher revenue. To support the rise in sales, the company will need to hire additional employees to manage the increased production and customer demand.

• Launch at least one new product, such as Clean Meals.
• Increase sales and revenue by 75%.
• Expand the workforce by hiring 2 marketing professionals, 3 research and development specialists, 3 warehouse workers, 2 customer service representatives, and 5 sales personnel.

Medium-term goals span one to four years. During this period, the company will continue developing new products to maintain customer interest. Another strategy is to regularly update the flavors and ingredients in pet food, demonstrating a commitment to offering diverse options for pets. Additionally, the company will significantly boost its digital marketing efforts.

MBA FPX 5012 Assessment 3 Digital Marketing Plan

• Introduce a new product.
• Increase sales and revenue by 25%.
• Diversify flavor profiles and ingredients.
• Expand digital marketing efforts, particularly in commercials and digital ads.
• Improve the ordering process.

Long-term goals extend beyond four years. The company will aim to make its products available in every pet store, grocery store, and veterinary office. Greater product visibility will drive customer growth and impact revenue. Consistent annual revenue growth of 10% is anticipated. Producing at least five new products each year will not only bolster revenue but also keep both existing and new customers engaged.

• Make products available in every pet store, grocery store, and veterinary office.
• Achieve consistent revenue growth of at least 10% annually.
• Launch at least five new products each year.

Tactics

The fourth step in the SOSTAC model involves defining the tactics for executing the digital marketing plan. This step outlines how the plan will be implemented.

MSH Brands will offer discount codes on social media platforms, allowing customers who see the ads to click on them and be redirected to the company website, with the coupon automatically applied to their cart. The company plans to boost sales by 25% by allocating a larger portion of its budget (25%) to advertising, including purchasing ad space on websites, creating television commercials, and producing video ads for platforms like YouTube. Additionally, MSH Brands will distribute samples at pet stores and veterinary offices to increase awareness and visibility, particularly as the company expands into retail locations.

Actions

The fifth step in the SOSTAC model is defining the actions or details necessary to execute the strategy. The main actions for MSH Brands include expanding the workforce, launching new products, enhancing digital marketing strategies, and increasing product visibility.

Control

The final step in the SOSTAC model is control, which involves continuously monitoring the progress of the plan and making adjustments as needed. The company will review metrics such as sales figures, customer engagement data, and market trends to ensure the strategy is on track and achieving the desired outcomes.

By following the SOSTAC model, MSH Brands can create a comprehensive digital marketing plan that aligns with the company’s goals and resources. This plan will help the company effectively market its products, increase brand awareness, and achieve sustainable growth in the highly competitive pet food industry.

References

Cowley, J. (2016). Smart objectives: Good goals vs bad goals. Harvard Business Review.

Kotler, P., & Keller, K. (2016). Marketing management (15th ed.). Pearson Education.

MBA FPX 5012 Assessment 3 Digital Marketing Plan

Stephenson, A. (2023). Digital marketing strategies for small businesses: The SOSTAC model. Small Business Trends.