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

2. 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

3. 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.

4. Technology Assessment

10. Market Analysis

11. Market Segments

14. Segment Contrast Mix

15. Adoption By Technology

16. Segment Profile Curve

17. Segment Profile Curve

18. Segment Attractiveness

19. Market Analysis Summary

20. Competitive Analysis

21. 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

22. 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

23. Competitive Factors Map

24. 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

25. 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

26. Net Assessment

27. 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

28. 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

29. 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.

30. 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

31. 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.