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Marketing Plan12-10-2009Dustin RothJoe SekulaTyler KowalczykJillian PaskeyMary MorrisonCorey ChalumeauTable of ContentsPage 1Executive SummaryCompany DescriptionPage 3Mission and GoalsCore ValuesPage 4Situational AnalysisPage 5Competitive LandscapeTarget MarketsPage 7Profile of Wawa Customers (Geographics and Demographics)Page 8Market NeedsMarket TrendsPage 10Market ForecastPage 11Market MixPage 16FinancialsExecutive SummaryWawa specializes in providing gasoline, diesel, and a genuine selection of fresh foods. Wawa offers a large fresh food selection, including Wawa brands like Built-to-Order? Hoagies which come in four sizes: the Junior, Shorti, Classic, and Two-Footer. We are also proud to offer our award-winning Freshly Brewed Coffee (over 195 million cups sold each year), the Sizzli? hot breakfast sandwich, quality dairy products and Wawa brand juices and teas. All Wawa stores feature a wide selection of ready-to-go salads, and fresh fruits . We would like to bring this to the greater Hazleton area where the competitive landscape is wide open for this type of business. By locating a Wawa convenience store right off of the Hazleton exit of Interstate 81, we could successfully reach a large portion of our target market. Company Description On April 16, 1964, Wawa Food Markets opened their first store in Folsom, Pennsylvania under the guidance of Grahame Wood, who had a vision of simplifying the lives of customers. This location is still open, and many Wood family members are still active within the company as of July 2009. Although Wawa is a family-run business, the employees of Wawa also hold a relatively large percentage of stock. Most Wawas are open 24 hours per day, 7 days per week. The chain's name comes from the site of the company's first milk plant and corporate headquarters in Wawa, Pennsylvania. The name of the town is in turn derived from the Ojibwe word for the Canada Goose (taken from "The Song of Hiawatha"). An image of a goose in flight serves as the Wawa corporate logo. Wawa is a business leader in convenience marts with more than 540 locations across Delaware, Maryland, New Jersey, Pennsylvania, and Virginia. Currently, approximately 5.7 billion dollars in sales per year is recorded. The importance of quality foods at low prices has been on a steady incline among society for the last few years. Since the economy has not been doing well for the past few years, low prices of goods is a must. Wawa continues to offer a great selection of fresh foods at great prices, so there is no worry about watching how much you spend in our store. Also, Wawa is actively involved in the communities around them through a variety of company-wide activities. Among the founding principles of Wawa, one clearly stands out: our ongoing commitment to the communities where we do business. Our company and our associates continuously seek out opportunities to make us the best neighbor we can be. This is evidenced by corporate and regional efforts, and through our associates who make our "good neighbor" philosophy alive and well in all of our business communities. Like everyone else, our support is limited, but we do offer a variety of programs to our neighbors and communities.WaWa’s Mission and GoalsMission: “To Simplify Our Customers'?Daily Lives”Continue offering a high quality convenience items, and gasoline and diesel fuels.To provide more convenience locations that offer 24/7 service.Continue to provide millions of dollars towards charity programs.Core ValuesWawa will continue to focus on its core competencies in order to maintain a competitive advantage among convenience store chains. 1. Wawa values its customers. We provide delightful convenience items at a good price. We also have name brand items along with our own brand of items offered at a competitive price in all store locations.2. Wawa continues to embrace change within its company. We follow economic change and price our goods according so we can still hold a competitive advantage in our industry. We also follow fluctuating gas prices and continue to offer gasoline and diesel at low prices.3. Wawa believes in doing things right. We like to provide products that are affordable to the public while still offering high quality products. Wawa also believes in doing the right things, which is why we reward charities within the community with funding.4. Wawa also has a strong passion for excellence and winning, which is why we strive to be an industry leader in the convenience store business. Situational AnalysisStrengths:Wawa offers good quality of products.Our website allows you to look at a full menu of our store.Wawa has a very large food selection for our customers.Wawa is very health conscientious of the food that they put on their menu.We have our private label for select items in our store.Weaknesses: Wawa is in a highly competitive market with all the other convenient stores.In our stores we do not sell lottery tickets or scratch offs.Some items can be expensive compared to other stores.Opportunities:We have a good quality food selection to pick from. We sell high quality gasoline for our customers. We also sell our own brand products at our locations.Threats:Competitors like Sheetz and Turkey Hill. Economic conditions may cause fewer people to travel.Trying to be unique when selling the same product as our petitive Landscape The Wawa we provide creates great competition for the surround businesses.? Certain businesses that would have a downfall due to our business would be Turkey Hill located on Route 93, Sheetz on Route 309, and Sunoco, also on Route 93. We feel that many gas stations in or around the city of Hazleton would also have decreased sales due to our location. Most customers will be able to relate to Wawa more than a Sunoco or Turkey Hill. Our location is in perfect placement for travelers and Penn State Students. Its location right off of interstate 81 will make it easy access for most travelers getting on and off of the interstate. People will choose our business over Turkey Hill or Sheetz because of our high quality goods and low prices. The area around us enjoys fresh fruits, such as apples, or vegetables like celery and carrots, versus a prepackaged version of these items. They also enjoy all of our different flavors of coffee. This helps us beat the competitors and brings our business to the highest level.Target MarketsMarket Summary:Travelers – This is our largest group because our store is located right off of interstate 81 and its convenient because its and easy on easy off exit. Travelers make up 45% of our income. The median age for these travelers is 55 years old, and most are retired. The average income is $70,000 per year.Student- Students are our second largest market. We are located within walking distance of Penn State University of Hazleton. They make up 35% of our income. The median age is 20 years old. Their average income is $12,000 per year. This is a great location because we will provide utilities such as gas, food, and toiletries.Working Class- This is the third largest group because we are located next to the Humboldt Industrial Park. The median age of this group is 35 years old. They make up 15% of our income. Their average income is $50,000 per year. We are convenient because we are also within walking distance. We supply them with lunch with our to-go order menus.Shoppers – This is our smallest area of income because shopping is usually done on weekends and consists of only two days. We are located near the Laurel Mall. They make up 5% of our income. These shoppers consist of people coming in from rural areas or people just coming in from the city. The median age is 40 years old. The average income is $40,000 per year.Profile of Wawa Customers1. Geographics:Our geographic market area is the Greater Hazleton Area, Pa. including:Travelers passing through on I-81.The Humboldt Industrial Park.Penn State Hazleton.2. Demographics:Male and female. Travelers, Students, and Working Class.3. Behavioral Factors:Travel near Hazleton, Pa.Frequently choose convenience items over fast food.Value quality food and service at a decent price.Market NeedsSelection: A wide variety of convenience items and gasoline and diesel fuels.Accessibility: We will be open 24 hours a day, 7 days a week, 365 days a petitive pricing: Our gasoline and diesel fuel prices are ranked among the lowest in the area, without sacrificing quality. Also, our convenience items are competitively priced to match other convenience stores in the area. We also carry cigarettes at the lowest prices allowed by the state.Market TrendsIn today’s world, many things are different than in previous times. People are forced to work longer hours, and spend more time on the run. It is hard for the average person to complete all their tasks in one day. Because of this, many people find it hard to prepare lunches and snacks. We are here to provide customers with such convenience items. With prices in all areas of the market increasing rapidly, it will be important to try to maintain reasonable prices. In the current economy it will be difficult for people to travel as much as they would like to. People will make sacrifices and driving and needing to fill up their gas tank and purchasing convenience items will be some of them. We will have to make special efforts to attract customers to our business. The market trend for convenience-type businesses is steadily increasing.Food quality: The preference for high-quality products is increasing as people do not enjoy greasy and fatty foods. Customers are looking for quality products in a reasonable price range. Our own name-brand and other food items will be made with quality in mind.Selection: People are more interested in eating a variety of foods. We will be able to offer them many choices of specialty items with our made-to-order items. We will run promotions and specials to encourage them to try our new products as well.Market ForecastReasons our market will grow:Convenience: We are able to provide our customers with the convenience they need. With busy work schedules we are able to provide gas, diesel, and delicious food to people who are looking for it. We reach out to more of these customers and continue to grow our business.Services: We sell gas and diesel. We see repeat business in categories, fuel and food, since more people are on the road now more than ever. Since today’s society is fast paced the convenience items are a great option.Marketing MixProducts:Hot Breakfast:Breakfast is the most important meal of the day, and Wawa has a lot of choices for you to make it the most satisfying meal.Sizzli Varieties: Sausage, egg and cheese on a muffin, bagel, or biscuit.Bacon, egg and cheese on a bagel Turkey, sausage, egg white and cheese on a bagel Other items:Hash browns Toasted bagels, muffins or biscuits Breakfast bowls Pancakes Wawa Donuts Soups :Wawa offers you plenty of flavors of delicious soups. They make a hearty meal when used as a side with one of our made-to-order hoagies.Chicken Noodle Cream of broccoliMaryland crabClam chowder Tomato soupFlatbreads:Try one of our new flatbreads, it’s a delicious combination of fresh meats and cheeses, and is toasted until it’s melted completely.Salsa chicken Pepperoni pizzaTurkey quesadilla Hoagies and Sandwiches:Come in and experience our made-to-order hoagies and sandwiches just the way you like it. Our touch screen ordering process makes it simple for you to create you ultimate meal.Hoagies Sandwiches Ciabatta meltsChicken sandwiches Coffee:We brew our coffee fresh using our own blend of coffee beans, for a great cup of coffee.Original Decaf Colombian Organic Peruvian Dark roast Beverages and Diary: We have a large variety of drinks to choose from, we have great drinks to go along with your sandwiches or hoagies, and we also have dairy products for your need also.Coca-cola products Pepsi products Iced tea Energy drinks CappuccinosJuicesMilk Ice cream Distribution:Wawa distributes its products through a store front. It sells convenience products, gasoline and food. Also, Wawa lets its customers shop online. They can buy gift cards for a holiday gift or for a birthday gift. You can also buy t-shirts, jackets, sweatshirts and scarves. Also, you can purchase Wawa’s coffee online in a twelve ounce bag or you can buy a variety pack of four of different flavors. Promotional Strategy:Wawa, as the whole company, has their own advertising campaign. They develop and show commercials on television. When people see the commercials, and they know that there is a Wawa in the same town or in a town in which they travel to, they will be more willing to come to the Wawa. Also since Wawa is very well known for its name, and it is located on a main road in the town of West Hazleton, people just driving by will stop in. We also have ads in the local news paper, the Standard Speaker. This increases the awareness of Wawa to the local people and the surrounding area people. Since the Standard Speaker reaches people from the Drums area down to the Tamaqua area, our range of getting the awareness out by using the newspaper will help out a lot to get out to the target market. We are located right off of Interstate 81; travelers coming off the interstate will stop. Since we are located right the travels will see a gas station with a name they know, they will not continue to travel down the road to see if they can find anything else. Plus we will have a sign placed on the highway that says that there is a Wawa at this exit. For example, when driving on an interstate it will tell you what gas stations, hotels, or restaurants that are located at this exit. We will place our name on the sign. We also send different flyers to the homes of our target market. This helps with getting the word out that we are now located in the Hazleton area. Also with theses flyers we have put in a coupon such as 10 percent off of any sandwich. This will help get the target market interested in coming to the Wawa. Since there are two hotels located in walking distance of the location of our Wawa, we have a partnership with the hotels. The hotels suggest to their customers to come to our Wawa to get a quick snack or fill up the gas tank. We also suggest to our customers that the two hotels that are located nearby are great places to spend a night or many nights in the Greater Hazleton area.Pricing:Wawa offers very reasonable prices on all of our products we offer. We do not want to scare off our customer base by having too high of prices. All of our fresh made foods range from $2.99 to 6.99, depending on the type of food you get. Also we have to go along with the specials that the Wawa Company will set. We also have to compete with our most local competition, Turkey Hill and Sheetz. All of our other pricing we do about a 45 percent mark-up on all of products that we bring in. Our gas prices are as low as we can put them with all of the taxes added on, and with very little profit per gallon of fuel.FinancialsOur sales forecast and marketing expense forecasts are shown in the following tables. We believe the way we market the business will increase our profit, and because people know our name we will also increase sales in the future.Sale ForecastAs a Wawa, we sell gas, cigarettes, foods, drinks, and other convenience items. These items include: papers, small notebooks, over-the-counter medicine, and lottery. The sales forecast shows how much each department will sell per year. Table: Sales ForecastSalesYear 1Year 2Year 3Gas$1,585,000.00$1,800,000.00$2,105,000.00Food$90,000.00$110,000.00$130,000.00Drinks$69,000.00$89,000.00$109,000.00Other$25,200.00$30,000.00$50,000.00Total Sales$1,769,200.00$2,029,000.00$2,394,000.00Sales MonthlySales by YearMarketing Expense BudgetOur goal is to spend about 2 percent of the forecasted sales revenue for marketing expenses. The following table shows a general overview of the expenses.Marketing Expense Budget?Year 1Year 2Year 3Ads 17,690.00 20,290.00 23,940.00 Catalog (meaning Coupons) 5,307.00 6,087.00 7,182.00 Mailing 3,538.00 4,058.00 4,788.00 Promotion 8,845.00 10,145.00 11,970.00 Total Marketing Expenses 35,380.00 40,580.00 47,880.00 Percent of Sales 2%2%2%Monthly Expense BudgetAnnual Expense BudgetBreakeven Analysis SummaryVariable Cost$2.25 per unitFixed Cost$35,400.00Expected Sales1,750,000 unitsPrice$7.00 per unitTotal Revenue$12,250,000.00Total Variable Costs$3,937,500.00Profit$8,277,100.00 ................
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