Kathleen McDonald, Kari Nass, Emma Reynders, Ashleigh Walker and Justine White

IBM Food Traceability

Marketing Plan

Agenda

Market Opportunity Analysis Business Overview Technology Assessment Market Analysis Competitor Analysis SWOT Analysis Critical Success Risk Factors MOA Conclusion

Marketing Strategy Strategy Platform Product Plan Sales and Distribution Plan Promotion Plan Pricing Plan

Implementation Financials Controlling the Marketing Plan Organizational Requirements

I. II.

III.

Business Overview History - IBM, International Business Machine Corporation is one of the

largest, most profitable computer companies in the world. IBM dates back to 1896 when it was founded by Herman Hullerith, it began as a tabulating machine company and has since grown to make a Supercomputer and more recently the food traceability system.

Primary Customer Base Manufacturers Grocers Distributors Retailers End Users

Market Leader – Due to international relations made, IBM has become a leader within food traceability systems.

Differentiation – IBM stands out within this particular market because of its well known name and the trust its name carries with consumers.

Technology Assessment

Market Analysis

Market Segments

Segment Contrast Mix

Adoption By Technology

Segment Profile Curve

Segment Profile Curve

Segment Attractiveness

Market Analysis Summary

Competitive Analysis

Competitor Profiles Company Establishe

dNo.

EmployeesMarket Position

IBM

1910 399,409 •Market leader in traceability software and services

2005 30 •Second to IBM in food traceability depth and reach

ProducePak

2000 25 •Primarily agricultural software low overall market position

1990 25 •Largest international provider of Microsoft based food software solutions

1987 50 •Largest U.S. provider of Microsoft based food software solutions

Factors Driving Competition Competitive factors:

On-demand information sharing with consumer

Food chain transparencyBrand imageReduce risk and liabilityInventory management – prevention of

food wasteEase of implementation and useMeet labeling/traceability requirementsSuperior service and support

Competitive Factors Map

0

1

2

3

4

5

6

7

8

9

10

Competive Factor Analysis

IBM

Harvest Mark

ProducePak

citFOOD

e-food

Competitive Factors

Rel

ativ

e V

alu

e

Competitive Position

Strong

     

Brand Image

     

Weak      

Weak Strong

Brand Awareness

BCG Matrix Positioning and Brand Image

• IBM has the best brand image overall

• Harvest Mark is a very close second for traceability

Competitive Analysis Conclusion IBM is a leader in the food traceability arena

through partnerships with numerous countries to establish a food traceability network

Factors affecting the competition going forward: Stricter guidelines for food traceability will

stimulate need for software and RFID tags/labels Greater consumer awareness and preference for

traceable food products

Competitor to present the biggest challenge will be HarvestMark

Net Assessment

POSITIVES NEGATIVES

INTERNAL

StrengthsSave companies money

Increase efficiency in supply chain/logistics

Increase food safety

WeaknessesTechnology limitations

High cost

EXTERNAL

OpportunitiesGovernment regulations

Increase business bottom line profit

ThreatsSoftware is imitable

Difficult to differentiate

SWOT Analysis

Many avenues to market to… Manufacturers Grocers Distributors Retailers End users (consumers)

R&D will allow tracking to become faster, less expensive, more accurate and ubiquitous

RFID tracking: Improve labor costs (i.e. no more overtime for

inventory) Make reordering, restocking and checkout

instantaneous with unique feature to scan multiple items at once

Future Prospects

High cost of implementing and maintaining the hardware and software Installation alone can cost around $250,000 plus

additional costs for training, support and maintenance

Limitations of technology RFID tags become disrupted in high levels of

moisture Little differentiation in software and hardware

Many competitors Need to find customer value in order to differentiate

Software is highly imitable Patents and copyrights can only protect software

in fairly specific terms which leaves open the possibility of designing around a patent or copyrighted work.

Risk Factors

Continued movement toward the public wanting knowledge on where there food comes from Health conscious people and persons who have been

affected by food-borne illness are demanding more information on products

Government regulations that force grocers to trace products Heavily publicized food recalls have pressured the

government to take more action. Government has implemented food safety working groups

to work with the FDA and outline new regulations Business showing bottom line profits increasing as

traceability allows for companies to improve efficiencies Food traceability can be considered an investment RFID will allow business to cut back on labor and forecasting

will be a thing of the past. Tracking software and RFID will reorder quantities once the safety stock has reached it’s low based on data entered by management

Success Factor

IBM’s well known name allows the company to enter the food traceability market with distinction IBM has historically built a brand around quality that

allows their consumers to recognize it’s trustworthiness

Making the decision to implement IBM’s food traceability will increase the business’s bottom line profit

A business implementing IBM’s food traceability will demonstrate to the public forward thinking, dependability, honesty, and integrity

A marketing opportunity exists for companies that implement IBM’s food traceability to exhibit they can stay ahead of government regulations and “set the standard” for other businesses to follow.

Conclusion