IBM Food Traceability Marketing Plan Kathleen McDonald, Kari Nass, Emma Reynders, Ashleigh Walker and Justine White

Agenda I. II. 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 III. Implementation Financials Controlling the Marketing Plan Organizational Requirements

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 Established No. Employees Market 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 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 transparency Brand image Reduce risk and liability Inventory management – prevention of food waste Ease of implementation and use Meet labeling/traceability requirements Superior service and support

Competitive Factors Map

Competitive Position BCG Matrix Positioning and Brand Image Strong   Brand Image Weak Brand Awareness 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

SWOT Analysis POSITIVES NEGATIVES INTERNAL Strengths Save companies money Increase efficiency in supply chain/logistics Increase food safety Weaknesses Technology limitations High cost EXTERNAL Opportunities Government regulations Increase business bottom line profit Threats Software is imitable Difficult to differentiate

Future Prospects 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

Risk Factors 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.

Success Factor 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

Conclusion 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.