BUNGE LIMITED MARKETING PLAN
The company mission statement states that the company is a commodity-based processing as well as a logistics company and its aim is to connect all farmers with feeds and food with retail customers. The statement further states that the company strives to improve food production by providing safe, competitive high quality products. From its unrelenting pursuit of quality, combined with its extensive background vegetable oils that are processed into edible oils and absolute passion will lead the company into desired profitability Bunge limited serves local and global manufacturers, food processors and retailer and succeeds in developing a profitable business by application of its five competitive advantages that is, consistent quality, reliable distribution network, reliable suppliers and good product portfolio. Right now demand for edible oil that the company produces from vegetable oils has unmet demand and Bunge limited has realized that opportunity its ready to seize it.
Introduction The main purpose of writing this report is to develop a marketing plan for a company involved with agribusiness. Market summary Bunge limited is conversant with its market and knows the attributes of its loyal customer ’s. They understand who they serve and their specific needs and their processing capacity is well balanced with a location of 33% to South America, 15% to Asia, 27% to North America and 25% to Europe. The type of market channels that Bunge limited supply are food processors, retailers as well as food service companies. Customers of grains, oilseeds as well as oilseed meal happen to be animal feed manufacturers, wheat as well corn millers, livestock breeders, and their own milling and edible oil segments. For edible oils, the company sells its products to baking companies, restaurants, grocery chains, and others.
Bargaining power of suppliers Powerful suppliers will use their ability to charge Bunge limited high prices on raw materials and the impact of supplier bargaining ability is reduced profitability. Bunge limited source the raw materials of its milling and edible oils from its agribusiness segment avoiding the extortion by suppliers. Also, its dedicated suppliers of agribusiness products and sugar and ethanol division highly rely on the company’s farm inputs like fertilizer (WILLIAMS, C. Buyer bargaining power Buyer’s demands are unending thus putting Bunge limited future profitability under immense pressure. Buyer bargaining power emerges where the customer base is small and Bunge limited has continuously ventured different additional markets such as South and North America, Europe, and Asia –Pacific to increase the customer base.
This objective is scheduled to be achieved within a period of one year through efficient management of its different segment. The total segments current EBIT for the year ending 31 December 2017 is $436 million. Agribusiness needs to increase its EBIT by 2% from the current $256 million to $261. 12 million, edible oils needs to increase its EBIT by 21. 1%from the current $126 million to $152. Bunge limited segmentation, targeting, and positioning Bunge Limited has several segments namely, Agribusiness segment, edible oil division, milling segment, sugar as well as bioenergy segment in addition to fertilizer segment. Agribusiness Division Bunge limited division of agribusiness segment involves itself with buying, transporting, processing storage as well as selling agricultural commodities. The commodities handled by this segment oilseeds like soybeans, sunflower seeds, canola, and rapeseed.
These oilseeds are processed to make vegetable oils as well as protein foods to be consumed by human and others as animal feed. This division also handles grains like wheat, corn, and rice. Competition is driven by several factors such as price, brand recognition, raw material procurement, product quality, distribution capability and innovation on new products. Milling segment. Bunge, limited milling division is involved with production and sale of various wheat flour as well as bakery mixes in Mexico as well as Brazil, products from milled rice in United States and Brazil and corn products derived from corn dry milling process. Customers of this segment are food processing companies, baking companies, brewing companies who use corn products, food service companies and some part of our milled rice to export markets.
Competitors of this segment in North America corn products include Cargill, LLC, SEMO Milling, and Didion milling company. The segment also buys and resell potassium chloride from third parties. Fertilizer is consumed by Bunge limited plantations, its suppliers and others. The main competitors are Yala international, Nidera and Louis Dreyfus. Positioning Bunge Limited is the leading vegetable oil producer globally, dry corn in North America, wheat in both south and North America. With its segmentation that is interdependent ensures a steady supply of raw materials from agribusiness to milling and edible oils segment. In Brazil, too sugarcane farmer need to be motivated through the issuance of subsidized farm inputs. Bunge limited marketing strategy will seek continued customer awareness of its products, increase the customer base as well as work toward maintaining customer loyalty.
Communication that Bunge need to maintain is that they are the best in grains and grain products, vegetable oil, edible oils, sugar and ethanol, fertilizer as well as animal feeds. This message will be put across through various methods such as advertisements, online marketing, direct marketing, and web networking with an aim of achieving the following projections. Projected production in Tons metric Segment Volume in 2017 Projected volume in 2018 Agribusiness 142,855 145,712 Edible Oil Products 7,731 9,364 Milling Products 4,460 4,480 Sugar and Bioenergy 9,389 9890 Fertilizer 1,329 1,356 Projected Finances and costs 2018 (In millions US dollar) Agribusiness division Edible Oil Products segment Milling Products division Sugar and Bioenergy Division Fertilizer Segment Sales 31,746 8,045 1,576 4,067 407 Cost of sales (30,809) (7,519) (1,366) (3,955) (381) Gross profit (loss): 932 499 209 99 25 Selling and administrative expenses (810) (362) (139) (115) (19) Foreign currency gain (loss): 85 3 (3) 11 (1) EBIT attributable (non-controlling interests) (9) (8) (2) Other income (expense): 62 (6) (4) (3) Gain from sale of assets 9 Equity impairment (13) (4) Projected EBIT 261 153 64 1 4 To achieve the above projections Bunge limited will use the following tactics to address their customer needs.
Marketing Expense Anticipated 2018 (In Millions U. S dollar) Agribusiness segment Edible Oil Products segment Milling Products division Sugar and Bioenergy division Fertilizer segment Advertising 78. 22 Others 17 3. 16 Overall Sales & Marketing Expenses 95. 16 Percent of Sales 0. An additive such as omega 3 has been on demand and has to be incorporated as ingredients to serve the customers who require them. Bunge limited has to maintain its quality standards in batter and breading that is made from mixture of grains with liquids, keep conducting tests for stress, foreign materials or moisture in corn. Bunge limited expeller press oil is non GMO and extracted from soy beans as well as sunflower seeds. Their product should well differentiated with aspects like a variety of flavors and taste, unsaturated fat, gluten free, non GMO and such (BENJAMIN, D.
, & VIRKLER, L. Promotion Bunge limited will use different marketing tactics to increase customer awareness of their products. This activities will be ones to develop s threshold of the desired sales units and help the company to remain profitable in the short as well as long run. Bunge limited will use direct marketing using direct customer emails, text marketing, use of handouts and leaflet marketing. Online marketing will be very beneficial considering the fact that Bunge limited competitor has used social media to their advantage to outshine Bunge limited on products publicity. Current Face book and Twitter status of Bunge limited compared to its competitors is as follow. , & VIRKLER, L. Targeted advertising is also possible with facebook together with offering deals such as discounts and loyalty rewards through facebook.
Place Bunge limited products are sold in bulk to manufacturers and food processors, restaurants as well as retail stores sold locally or exported. Bunge originates and processes its product in different geographical locations such as South America, North America, Asia, Europe and North Africa serving a total of 46 countries. For this reason, Bunge limited products are available to all users as and when they need them. More destinations in Africa and Asia will be achievable with this kind of networking so that Bunge limited can increase its market share (VAN ALFEN, N. Physical evidence. Bunge limited has corn and wheat miller in North America, a fertilizer plant in Argentina, Sugar mills in Brazil and many oilseeds processing plants. The image that the company’s product needs to portrays to customers is that of an innovative company due to product variety branding.
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