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Product Launch Plan: Kathy Fine Foods & Stores

Introduction/Background Information

The increasing demand for fasting moving food stuffs especially in busy and commercial environment with the main capital states of the United States and Great Britain has prompted investors and marketing analysists to consider investing in this lucrative food industry. It is in this respect that after having conducted extensive market search that Kathy Fine Foods & Stores is founded. The vision of Kathy Fine Foods & Stores is to remain consumer preferred hotel and dominate snacks and soft drink market of the United States and Great Britain. This business is driven by the desire to provide variety of snacks and fast moving foods of quality at affordable rates. Other core values include customer loyalty and professionalism (Groucutt, Forsyth, & Leadley, 2004). 

Product Description

Kathy Fine Foods & Stores is a network of fast moving foods and grocery stores with sole ownership and which will operate in the leading cities and states of the United States and Great Britain. The operations of the headquarters of Kathy Fine Foods & Stores will conducted in the United States as the domestic market while the Great Britain will serve as an international market. Kathy Fine Foods & Stores is established particularly to provide fast moving foods and snacks to the formal labor force in these two countries. Besides, Kathy Fine Foods& Stores plans to run its own grocery supply stores. The main products that Kathy Fine Foods & Stores intends to deal with include snacks, beverages, soft drinks, and gourmet groceries. The stores and cafeteria will be located in areas with higher working population, hence, easily accessible to the target customers. On the other hand, gourmet grocery stores will be made accessible to inexperienced and experienced cooks alike at their conveniences. The stores will also offer specialty gourmet food stuffs to the working staff. Other product lines of Kathy Fine Foods & Stores include quality wines. This will give the stores and food chains a unique feature that gives it a competitive advantage.

Product Positioning

This is the process of creating a unique, recognized, and consistent customer perception in the products. To build a reputable customer confidence in the Kathy Fine Foods & Stores, the company needs to create a positive and lasting image among the potential consumers. Through such move, Kathy Fine Foods & Stores will enjoy higher sales even during low season because of customer loyalty and confidence. This being a mind-game aimed at building product image in the potential consumers, Kathy Fine Foods & Stores will advance reasonable and sound competitive strategy covering from fair pricing, product promotion, packaging, and branding (Mu%u0308hlbacher, et al., 2006). Besides, company’s identification strategic location in the central business districts of the populated cities makes it accessible to a good number of customers working in the formal sectors.

Target Groups (Customer Target)

Kathy Fine Foods & Stores mainly target the working force, especially those in the formal employment sectors and those running private business that usually have little time to spend during the lunch hours. These groups prefer fast moving food and snacks as a time-saving strategy. Besides, as observed by marketing experts, most of these groups of customers mainly work in offices or busy commercial institutions. These are relatively income earners with a relatively higher marginal propensity to consume out of their disposal incomes.

Marketing Strategy and Needs

In launching products, both, locally and internationally, the firm will take into account the potential of growth and development. In the domestic market, Kathy Fine Foods & Stores will focus on filling the market gap which remains unexploited. The establishment of the company will focus on meeting the diverse market needs of each of the selected regions. In international market (Great Britain), Kathy Fine Foods & Stores will consider a number of marketing variables and challenges. These will include a comprehensive analysis of marketing factors such as income, trading policies, and regulations of the Great Britain, political factors, and the diverse needs of the consumers (Cooper, 2011). Other variables under close examination will entail competition and changes in the consumer preferences with respect to food industry.

Market Potentials and Growth

Being a perfectly competitive industry, food and beverage market of the United States and Great Britain still exhibits a great potential and growth. This follows the fact that food is a basic necessity to mankind. Similarly, employees and the working population which are mainly composed of younger generation have growing interest and preference for snacks and other fast moving junky food such as chips, crisps, soft drinks, among others. Potential growthof the food and beverage industry is also explained by population growth coupled with increased labor force, which further increases the consumption pattern among the working class. In addition, this industry still has a bright future in these two countries given the fact that these countries have higher income per capita which results into higher disposal income and a relative proposal of the marginal propensity to consume (Cooper, 2011). Favorable political and economic conditions in the U.S and Great Breitain, and potential customer growth present probable growth and development for Kathy Fine Foods & Stores.

Company SWOT Analysis

It is paramount for Kathy Fine Foods& Stores to conduct a comprehensive analysis its internal and external environment. This involves analyzing the strengths, weaknesses, opportunities, and threats which might affect its operations in both domestic and international market. The SWOT analysis for both countries (U.S and Great Britain) with respect to food and soft drink market is similar.  


v  Stronger brand equity on major brands and products

v  Strong financial ability and soundness in resource allocation

v  Product management and development skills

v  Creativity and innovativeness


v  Growing income among the working class

v  Ever rising demand for snacks and fast moving food stuffs

v  Marketing freedom and free entry

(Mu%u0308hlbacher, et al., 2006)


v  Over dependence on U.S market for sustainability and revenues

v  Rising costs of operations and administration overheads

v  Lack of control over resources



v  Economic inflation and the rise in the cost of essential raw materials

v  Formation of cartels

v  Unfair and unhealthy competitions

v  Private label growth potential


Since Kathy Fine Foods operates in soft drinks and food industry, the company will face stiff and unfair competition from multination co-operations such as PepsiCo American Food, Coca-Cola, and Kellogg Company (a fast moving cereals and food stores located in Michigan). However, Kathy Fine Foods & Stores will have to compete with well-established food manufacturing companies like Kraft Food Inc. (the leading cereals and food manufacturer in North America and also the world’s second largest food manufacturer), and GIS (Groucutt, Forsyth, & Leadley, 2004). Together with other small retailers in the food and snacks industry, Kathy Fine Foods & Stores will have to rival with these market dominating firms which command the largest share of the market. Given their insufficient growth of production, it would be very challenging for Kathy Fine Foods & Stores to reach profitability.

Marketing Strategy and Objectives

The main objective of Kathy Fine Foods & Stores is to establish herself as the customer preferred destination over time. To help achieve its objectives and missions, Kathy Fine Foods & Stores have advanced unique consumer-winning marketing strategies. This firm,therefore, plans to reach out a large proportion of its potential customers through advertising, corporate social responsibility, price differentials, branding, product diversification, packaging, fair pricing, and office distribution.

Pricing Policy

Given income inequalities, Kathy Fine Foods & Stores plans to apply first, second, and third price discrimination policy. Under this approach, Kathy Fine Foods & Stores will charge their customers based on income, quantity, and geographical factors. Besides, economic variables (including inflationary or deflationary factors) will be considered in the prices charged for food stuffs and other products. Discounts and offers will be other pricing strategies used by Kathy Fine Foods & Stores in order to penetrate this highly competitive industry (Groucutt, Forsyth, & Leadley, 2004).

Marketing Communication and Distribution Strategy

Marketing communication is one of the most essential tools for reaching out to customers and building product image among the consumers. This calls for effective brand marketing. In this respect, Kathy Fine Foods & Stores will advance advertising, product promotion, personal selling, and sales promotion. Through these techniques, Kathy Fine Foods & Stores will be able to designate the strength of their products, and establish consumer loyalty.

On distribution strategy, since the company plans to go international, it will be appropriate for Kathy Fine Foods & Stores to consider penetrating international markets through appointed distribution agents. This would reap great benefits owing to the fact that appointed agents operating in their domestic market have deeper insight, and understanding of their locality and market. This implies through the fact that such distribution agents have stronger relationship with the local customers (Doole, & Lowe, 2008; Doole, & Lowe, 2005). However, involving agents in the distribution channel as a linkage between the consumers and Kathy Fine Foods & Stores raises the cost. In the domestic market ( the U.S) Kathy Fine Foods & Stores will prefer consumer-producer direct distribution to enhance personal communication and reduce the charges associated with middlemen distribution. 

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