Final Paper
Student Name
Institution Affiliation
Final Paper
Executive summary
Mission
KokoKrispies is a breakfast that specializes in the production of rice Krispies. The shareholders, with the help of professionals in business management, have created and implemented an effective business strategy guided by the company mission: “To bring change to the marshmallow rice crispy treats by offering unique products regional distribution and expedited delivery”. To achieve the mission, the company has an effective training and development program to equip employees with the necessary skills and abilities to handle their respective duties diligently and efficiently.
Company and management
KokoKrispies is headquartered in Lenox and incorporated in the province of north Colombia. The company is a partnership of three family members and two friends, making it a total of five investors that pooled their resources together to establish and thrive in the snack industry. The organization has a hierarchical structure making instructions and power flow from top to bottom. The five shareholders hold five different top managerial positions since they are professionals in other areas. Currently, the organization has five various departments served by a total of 58 employees. A good management is demonstrated by the firm showcasing a potential success currently and in future.
Product
The company was established in 2015 in order to meet the increasing demand for healthy breakfast cereal. The company applied product diversity by coming up with rice Krispies of different flavors to meet consumer tastes and preferences. Some of these flavors include; vanilla, almond, chocolate, cocoa, vegan peppermint, brown butter, peanut butter, and locations peppermint bark. The company has invested in its products and brand that has made it unique from the competitors where the customer needs are considered meeting tastes and preferences.
Competitive advantages
My three main competitors are Kellogg’s Brands, Walmart, and Kroger shops. But I think KokoKrispies will succeed because, according to my study, the flavored goods are distinctive and provide superb rice kokokrispies that are good for human consumption. KokoKrispies are aware that people are becoming more aware of their health and fitness. The products prevent several diseases as presented in the plan.
Financial projection
In 2018, the market for rice kokokripies was valued at USD 12.63 billion, and by 2025, it is expected to grow at a CAGR of 5.5% (Perdon et al., 2020). $30,000 is approximated benefits expenditure on full-time/ salaried employees. Approximate benefits expenditure on part-time employees is $36. It is estimated that the cost of the benefits will increase by 5% per year. In case of an increase in wages, it is planned to increase by 3.5%. 15% of employees’ salary is planned to be set aside for payroll taxes. The revenue is promising showcasing a possible and significant growth in future.
Starting up finance requirements.
The company is expected to start when its opening bank balance is $100,000. A tax rate of 25% is expected on the net income. If an interest-bearing account is used, 1% of interest will be accrued.
Business description
KokoKrispies is a breakfast establishment that focuses on the creation of rice Krispies as its primary offering. In order to fulfil the ever-increasing demand for nutritious breakfast cereal, the firm was launched the following year, in 2015. Since the company’s inception, the primary focus of KokoKrispies has been on the production of Rice Krispies of the highest possible quality, Halal, which indicates that they are approved for consumption by Muslims. In addition, the company has implemented product diversification by producing rice Krispies with various flavorings to cater to its target market’s varied tastes and preferences. Among these flavors are vanilla, almond, chocolate, cocoa, vegan peppermint, brown butter, peanut butter, and locations peppermint bark. Other flavors include brown butter, vegan peppermint, and chocolate. The business is run as a partnership by three members of the same family, in addition to two friends, for a total of five investors who joined forces and combined their resources in order to launch and succeed in the snack food market. The organization’s long-term objective is to establish itself in as many additional markets as possible, with the intention of luring a large number of customers and thereby increasing both sales and earnings.
Market analysis and strategy
Demographic description.
Ages 17 to 65 can consume Kokokrispies rice products, a common household cereal. Families may easily afford this product. This tea is available to our clients who make between $20,000 and $40,000 annually. Most of our clients have graduated from high school and have some college experience. They usually have a 9–5 schedule.
Geographic distribution
Rice Krispie treats will be distributed in both urban and rural regions. In addition to having physical locations in Lenox Mall, Stone Crest Mall, and Greenbriar Mall, KokoKrispies will also be sold online. Both venues are user-friendly for families and close to the public. For consumers of rice Krispies, Rice Krispies will eventually overtake Kellogg’s.
Psychographic Description
The audience that is expected to read this is very accountable. The vast majority of customers favor activities outside since these pursuits give them the opportunity to engage with other people while working out or simply basking in the sunshine. The patrons of Kokokrispies frequently report having a good time. The folks usually deal with a variety of health issues or have had terrifying brushes with death due to their conditions. Customers are typically just average people who are trying to lead healthier lives; they are not very forward-thinking trendsetters.
Purchasing pattern description
The target market will use the products to help manage a variety of illnesses, including sleep apnea, diabetes, high blood pressure, and others. The product will be offered for sale to customers multiple times every month. Kokokrispies can be used three times per day from one packet. Both locally located mall kiosks and online retailers sell the rice. The company wants as many clients as possible to be able to use its product.
Buying sensitivities description
Due to the fact that these consumers lead healthy lifestyles, they are concerned about the product’s level of quality. Our customers want reassurance that the product will effectively serve the purpose for which it was designed. The customers are particularly concerned about the price because some live in families consisting of only one or two people and are therefore required to adhere to a financial plan strictly. The company wishes for all of its customers to be aware that not only can they get rice Krispies of the best quality at affordable rates, but also that the packaging can be recycled in its entirety. The goal is to convey to customers that Kokokrispies is concerned not just about their wellbeing but also about the natural world in which they live.
Marketing and sales plan
Marketing vehicles.
Social media platforms such as Twitter, Facebook and Instagram to reach people of ages 25-34 as per the statists research amounting to $1,250 per month, free rice samples from 10 am-8 pm Monday to Saturday amounting to $108.97, we development of $1,500 one-time fee per year and monthly web maintenance cost of $90 per month. These are the marketing tools to attract the attention of the intended customers.
Competitive analysis
In 2018, the market for rice kokokrispies was valued at USD 12.63 billion, and by 2025, it is expected to grow at a CAGR of 5.5% (Perdon et al., 2020). As one of the top cereal providers, Kellogg’s Brands, Walmart, and Kroger shops are my three main competitors. But I think Kokokrispies will succeed because, according to my study, the flavored goods are distinctive and provide superb rice kokokrispies that are good for human consumption. Kokokrispies are aware that people are becoming more aware of their health and fitness. Due to the fact that our products help customers boost their immune systems, develop stronger bones and teeth, reduce the risk of cardiovascular diseases, cancer, and kidney stones, and manage blood cholesterol levels while being enjoyed based on personal flavor preferences, they will stand out from other teas. It won’t be difficult for Kokokrispies to become the next well-known brand everyone can enjoy.
Management and organization structure
The organization has a hierarchical structure making instructions and power flow from top to bottom. The five shareholders hold five different top managerial positions since they are professionals in different areas. Currently, the organization has five different departments served by a total of 58 employees. It is the organization’s long-term goal to establish in many other locations, attracting many consumers and maximizing sales and profits.
SWOT matrix
Strengths.
The company is made up of focused individuals, according to Klitgaard (2018), deals with products in high demand according to Perdon, Poutanen, & Schonauer (2020), has hired skilled labor, has reliable distribution channels and packs products in different sizes to meet consumer’s requirements as per Yonezawa, & Richards, (2016)
Weaknesses
The company has limited marketing, unstable financial status, lack of brand and unique design of packages and limited access of consumers through the given technology.
Opportunities
There is a continuous increase in demand for healthy serious, technological improvement in the production of goods and services, the products are made of locally available resources, and banks provide lends to boost the financial sector.
Threats
Consumers tend to doubt the health levels of the products, the market is competitive, strict government regulations and unhealthy competition since the raw materials are locally available.
Target Market
Working worldwide in the nation, Kokokrispies distributes rice Krispie’s items. One of the fastest-production of quality Rice Krispies that are Halal in the nation is Denpec. This has given the business a fantastic opportunity to harness its customer base’s brand loyalty to introduce rice that comes with different flavors including vanilla, almond, chocolate, cocoa, vegan peppermint, brown butter, peanut butter and peppermint bark to meet various customer’s tastes and preferences. The marketing and sales strategy focuses on an analysis of the market developments brought on by the demand of good breakfast cereal snacks that are known for quality and different nutrients (Zhu & Gao, 2019).
Demographic Description
Ages 17 to 65 can consume Kokokrispies rice products, a common household cereal. Families may easily afford this product. This tea is available to our clients who make between $20,000 and $40,000 annually. Most of our clients have graduated from high school and have some college experience. They usually have a 9–5 schedule.
Geographic Description
Rice Krispie treats will be distributed in both urban and rural regions. At addition to having physical locations in Lenox Mall, Stone Crest Mall, and Greenbriar Mall, Kokokrispies will also be sold online. Both venues are user-friendly for families and close to the public. For consumers of rice Krispie’s, Rice Krispies will eventually overtake Kellogg’s.
Lifestyle Distribution
Shops like Whole Foods Market, Sprouts Farmers Market, Nature’s Own Herb Shop, and others are frequent destinations for the consumers. Customers often lead healthier lifestyles. Clients may take a nature walk or spend some time exercising at the gym during their free time. The clientele frequently drives hybrid vehicles and dress in athletic attire.
Psychographic Description
The intended audience is extremely accountable. The majority of clients prefer outdoor activities because they provide them the chance to interact with others while exercising or simply taking in the sunshine. Customers of Kokokrispies often have a good time. The individuals frequently struggle with various health problems or have had close calls with death. The customers are basically regular folks striving to live a healthy lifestyle; they are not really trend setters.
Purchasing Pattern Description
The products will be used by the target market to help manage a variety of illnesses, including sleep apnea, diabetes, high blood pressure, and others. The product will be offered for sale to customers multiple times every month. Kokokrispies can be used three times per day from one packet. Both locally located mall kiosks and online retailers sell the rice. The company wants as many clients as possible to be able to use its product.
Buying Sensitivities Description
Customers are worried about the product’s quality since they lead healthy lifestyles. Our buyers desire reassurance that the product will carry out its stated purpose. Due to the fact that some of the consumers live in single-family households and must stick to a budget, the customers are particularly worried about the cost. The business wants its clients to be aware that it is here to provide rice Krispie’s of the highest caliber at competitive prices, and that the packaging is completely recyclable. The purpose is to let clients know that Kokokrispies cares not just about their health but also about the environment.
Market Competition
In 2018, the market for rice kokokrispies was valued at USD 12.63 billion, and by 2025, it is expected to grow at a CAGR of 5.5% (Perdon et.al, 2020). As one of the top providers of cereal, Kellogg’s Brands, Walmart, and Kroger shops are my three main competitors. But I think Kokokrispies will succeed because, according to my study, the flavored goods are distinctive and provide a superb rice kokokrispies that is good for human consumption. Kokokrispies are aware that people are becoming more cognizant of their health and fitness in general. Due to the fact that our products help customers boost their immune systems, develop stronger bones and teeth, reduce the risk of cardiovascular diseases, cancer, and kidney stones, and manage blood cholesterol levels while being enjoyed based on personal flavor preferences, they will stand out from other teas. It won’t be difficult for Kokokrispies to become the next well-known brand that everyone can enjoy.
Value Proposition
A breakfast with a focus on rice Krispie’s is called KokoKrispies. Since its founding, KokoKrispies has concentrated on producing Rice Krispies of the highest quality that are Halal, making them particularly well-liked by Muslims. Additionally, the business has used product diversity by creating rice Krispies in a variety of flavors to cater to the varied tastes and preferences of its customers. Vanilla, almond, chocolate, cocoa, vegan peppermint, brown butter, peanut butter, and peppermint bark are just a few of these tastes. Good breakfast cereal snacks like rice Krispie’s are well-known for their high standards and range of nutrients. Using Kokokrispies will guarantee long-term excellent health for families and individuals. The brand Kokokrispies thinks that eating savory, high-quality, nutritious, and well-packaged food is important.
“To bring change to the marshmallow rice crispy treats by offering unique products regional
distribution and expedited delivery” are the organization’s slogan. The message is conveyed through marketing vehicle that the rice Krispie’s is a household product. The entire family can enjoy year-round and families can consume the products and enjoy it with the option of several flavors. Kokokrispies is a brand that thrives on health and quality. The rise is 100% organic.
Marketing Vehicles
Marketing Vehicles Frequency Cost/Month
Social Media: Facebook, Twitter, and Instagram Thrice daily for each social media platform. I’ll utilize Twitter, Facebook, and Instagram to connect with customers between the ages of:
Ages 25 to 34 on Instagram (Statista Research Department, 2021)
Women 18–24 (Statista Research Department, 2021) and males 25–34 use Facebook (Statista Research Department, 2021)
Ages 18–29 and 30-49 on Twitter (Statista Research Department, 2021)
so that as many individuals as possible, especially those in our target market, can learn about our organization. $1,250 per month (WebFX, 1995-2021)
Free rice Krispie’s samples (by word of mouth) Free samples from 10am-8pm Open Monday – Saturday. $108.97/month
Website Development/QR Code One-time fee per year $1,500 per year This will be a one-time fee to create the website.
Monthly Website: Cost/maintenance and hosting One time per month $90 per month (Web FX, 2021)
The decision to employ the particular market vehicles was made because the strategies would work the best to attract the attention of the intended audience. Kokokrispies will employ social media, free food samples, website creation, and monthly websites as marketing tools. For instance, Kokokrispies will need to use social media since it enables us to contact our target audience. The use of social media will assist promote rice Krispie’s and engage current and potential clients for our business (Abrams, 2019).
Customers being given the chance to try the rice Krispie’s treat is the second marketing strategy to be employed. A variety of tastes are offered to customers as samples. Every consumer who expresses interest in the delicious rice Krispie’s snack will receive one free sample from the company. Given that the product is a snack, word-of-mouth marketing will be the most effective method of reaching customers, and after people share the food with their family and friends, word-of-mouth marketing will be created.
Website creation is the third marketing tool to be employed. Customers may use this comprehensive website to look up information on our snacks. The availability of this marketing tool would enable clients to shop whenever it suits them. We’ll have banners with pictures of actual customers and customer testimonials so that customers can see what other customers are saying about the goods we’re offering. The strategy offers ease and a website where clients can go to find all the information they need before buying the rice Krispie’s (Abrams, 2019).
KokoKrispies is a breakfast that specializes in the production of rice Krispie’s. The company was established in 2015 in order to meet increasing demand for a healthy breakfast cereal. KokoKrispies since its establishment has been focused on manufacturing quality Rice Krispies that are Halal which means they are also highly acceptable to the people of Muslim faith. Additionally, the company has applied product diversity by coming up with rice Krispies of different flavors in order to meet different consumer tastes and preferences. Some of these flavors include; vanilla, almond, chocolate, cocoa, vegan peppermint, brown butter, peanut butter, and peppermint bark.
The company is a partnership of three family members and two friends making it a total of five investors that pooled their resources together to establish and thrive in the snack industry. The organization has a hierarchy kind of organizational structure making instructions and power to flow from top to bottom. The five shareholders hold five different top managerial positions since they are professionals in different areas. Currently, the organization has five different departments served by a total of 58 employees. It is the long-term goal of the organization to establish in many other locations thereby attracting a high number of consumers leading to maximized sales and profits.
The shareholders with the help of professionals in business management have created and implemented an effective business strategy that is guided by the company mission which state “To bring change to the marshmallow rice crispy treats by offering unique products regional distribution and expedited delivery”. To achieve the mission, the company has an effective training and development program to equip employees with necessary skills and abilities to handle their respective duties diligently and efficiently.
SWOT Matrix
Strengths
The company is made up of a group of focused individuals that are like-minded something that has helped in maintaining focus on the business. According to Klitgaard (2018) having like-minded individuals in an investment is critical as it boosts morale and desire to invest in the business without giving up despite immense challenges faced in the market.
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The product that the company specializes in has a high demand in the market. According to Perdon, Poutanen, & Schonauer, (2020) rice Krispie’s are used by people across all ages, gender, race, culture, and background. It is from this ability to suit all people that has made it possible for the product to have high demand leading to high sales and remarkable profits.
The company has strived in hiring skilled labor that plays an important role in having quality, unique and affordable rice Krispie’s. This is a major strength for the company because the hired skilled labor has boosted levels of creativity and innovation to high levels placing the company in a good level competitively. Also, the skilled labor has made it possible for the company to meet market demand due to reduced levels of errors.
The company has a reliable distribution channel used to distribute end products from the company’s warehouse to wholesalers and retailers. Through the quality distribution channel, it has been possible for the business to make sure that goods are available in a timely and efficient manner.
The products are packed in different sizes hence making it possible for consumers to go for the size that meets their needs in terms of quantity. According to Yonezawa, & Richards, (2016) have products of all sizes makes it possible for a business to target all consumers since prices are determined by size of the package. Weaknesses
Marketing is one of the best ways a business can use to create brand awareness thereby attracting consumers. Sadly, the company has failed when it comes to marketing since limited marketing has been applied. The marketing used also targets a small range of consumers especially children and teenagers something that sends a message that the product is for this group of people. From this weakness, the company is missing out great opportunities since the products suits all people in the society.
Since the company was established in 2015, it has not managed to build is economic status. Currently the company suffers from unstable financial status and this is behind limited marketing and hinders many great projects that can boost company growth and advancement.
It is saddening because the company has an unstable strategic positioning strategy. The company has not been able to come up with unique packages, designs, and brand that stand out in the market. It is hence easy for consumers to notice brands from competitors with that of KokoKrispies.
Despite technology introducing easy and effective communication strategies, KokoKrispies have failed when it comes to engaging consumers. the failure has hindered the company from understanding breakfast cereal product trends in the market leading to ineffective decisions.
Opportunities
It is a good thing that the market has been recording an increase in demand for healthy cereals. The fact that the product is healthy and easy to use has attracted the attention of many (Perdon, Poutanen, & Schonauer, 2020). This is an opportunity the business can explore and target consumers in diverse areas.
Technology has been improving making production of goods and services easy and effective. The company hence has the chance of capitalizing on technology to reduce labor cost, reduce waste, and increase efficiency in order to have competitive prices in the market while meeting other consumer needs.
Rice Krispie’s are made from locally available raw materials and from the business opportunity the products appear to have many people are willing to farm ingredients used in the production of end products (Perdon, Poutanen, & Schonauer, 2020). This is a great opportunity that the organization can use to make quality end products that are diverse, unique, and highly nutritious.
The banking industries have over the years improved in terms of lending its consumers finances to boost their businesses. The shareholders can take advantage of the opportunity and borrow reliable amount of money that would help meet needs that have not been met for instance effective marketing and technology to boost overall company performance. Threats
Many people have a challenge believing in the health levels of the products since in the past there have been similar unhealthy products. This is a major threat because consumers are easily lured by companies with different breakfast cereals affecting overall sales of the product.
The company has invested in a highly competitive market particular with multinational companies like Kellogg’s. The fact that competing brands offering similar products hence makes it hard for the business to maneuver in the market something that affects sales and rate of achieving short and long-term goals.
The government has strict rules and regulations for investors investing in the industry and this means that levels of regulations are unbearable. According to Berndt, (2019) this poses a threat in the sense that breakfast cereals operating licenses stands the threat of being suspended or revoked at any time.
The industry from the fact that raw materials are locally available is strongly threatened by new entrants and presence of substitute products a situation that makes unhealthy competition possible.
References
Abrams, R. (2019). Successful business plan secrets & strategies. Palo Alto, CA: Planning Shop
Klitgaard, R. (2018). Evaluation of, for, and through Partnerships. In Evaluation & Development (pp. 43-58). Routledge.
Berndt, A. (2019). BREAKFAST GONE BAD… the case of Kellogg’s rice Krispies®. Emerald Emerging Markets Case Studies.
Perdon, A. A., Poutanen, K. S., & Schonauer, S. L. (2020). Breakfast cereals and how they are made—Introduction. In Breakfast Cereals and How They Are Made (pp. 1-4). AACC International Press.
Statista Research Department. (2021, June 28). Facebook: distribution of global audiences 2021, by age and gender. Retrieved from Statista:
https://www.statista.com/statistics/376128/facebook-global-user-age-distribution/Yonezawa, K., & Richards, T. J. (2016). Competitive package size decisions. Journal of Retailing, 92(4), 445-469.
Web FX. (2021). 2021 Website Maintenance Pricing How Much Should You Pay? Retrieved from Web FX: https://www.webfx.com/how-much-should-website-cost -in2021.html
WebFX. (1995-2021). How Much Does Social Media Advertising Cost in 2021? Retrieved from Web FX: https://www.webfx.com/how-much-does-social-mediaadvertising-cost.html#facebook
Yonezawa, K., & Richards, T. J. (2016). Competitive package size decisions. Journal of Retailing, 92(4), 445-469.
