Strategy to be pursued by Green Corn Company

Strategy to be pursued by Green Acres Seed Company

Executive Summary

Green Acres Seed Company requires an effective marketing and advertising program to enable it to achieve their expected profits. Advertising is an effective way for a business to strongly build its brand (ACCA, 2008). It helps a company to create a strongly felt presence and informs the consumers on exactly what to expect from the product that they are to buy. The advertising is focused on building awareness for the seeds that Green Corn Seed Company already produces. The marketing of the products can be instilled with the company having promotions which also serve as a good way to warm up the customers towards the reception of the company and the products which it produces. Free samples of the products could also be offered as a means of advertising. These are bound to increase the sales.

Rationale

Green Acres Seed Company is recognized widely for the production and sale of seeds. In 2010, there was a large drop in the sales and profits that were made as compared to what was noted in the previous year, 2009. In 2010, Green Acres Seed Company had sales of $43.2 million accompanied with profits that were $339,000 lower that the profits in 2009. It was however noted that there was an increase in administrative costs, sales costs and unit costs of sales. Investigations outlined that the products that are more purchased are the small packaged seeds and were purchased by farmers to use in small farms. Also the genetically modified seeds were being sold at a lower market price as compared to the prices that the market competitors were selling their genetically modified products. These factors are suitably addressed with a good marketing and advertising programme in order to reduce the cost of sales that are currently being noted and increase the profits.

The firm currently has the sales of its GM varieties at a lower price as compared to its competitors. This is an advantageous point for the company as more customers are bound to go for what is cheap as long as it also has value (Abahe, 2014). Green Acres Seed Company has educated and experienced personnel who are the sales agents that do the personal selling of the products. This gives an outlook that these people are knowledgeable and build the reputation of the company. However, the company captures only a small market percentage in the market area. In addition, the effort the company is taking up is to boost sales with individual small-scale farmers as made evident by the sales result. The company also does not employ good advertising. The major constraints that affect this strategy to boost sales if the capital and the organization’s policy. The company has made efforts to have road signs, media publishing and brochures.

The sustainable advantage of this is that the consumers get to know about the brand due to the presence that the marketing and advertising will create. Also, with organic products coming up as a healthier option, it is prompt to have the organization enlighten the consumers on the current products not being dangerous compared to the organic products and therefore retaining the previous market.

References

ACCA (2008). Marketting Methods: Advertising Strategy. Retrieved from HYPERLINK “http://www.accaglobal.eu/pubs/uk/members/support/public_practice/resource_centre/marketing/directors_briefing/marketing_methods/advertising_strategy.pdf” http://www.accaglobal.eu/pubs/uk/members/support/public_practice/resource_centre/marketing/directors_briefing/marketing_methods/advertising_strategy.pdf

Abahe, (2014). Marketing, Strategy and Competitive Analysis. Retrieved from HYPERLINK “http://www.abahe.co.uk/business-administration/Marketing-Strategy-and-Competitive-Analysis.pdf” http://www.abahe.co.uk/business-administration/Marketing-Strategy-and-Competitive-Analysis.pdf

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