Five-Year Marketing Plan

Karma’s Korn
 Executive Summary
Snack foods will always be a part of the American way of life. No matter what time of
day, people crave a snack that can brighten their mood. In grocery stores today, there are
hundreds among hundreds of snack options to choose from, each trying to fulfill the needs of the
consumer. While this can make decision-making more difficult, many consumers will still stick
with their favorite option. In the Midwest and all over America, kettle corn is a staple comfort
food. Most kettle corn options sold in stores today have a big setback; they include many
unhealthy ingredients that do not keep the consumer in mind. The ingredient list on the
nutritional label can go on and on, making the supposed, simple kettle corn snack into a bowl of
sugar, salt, and oils.
Karma’s Korn kettle corn changes the way consumers will see and eat their favorite
snack. The kernels for the kettle corn are all home-grown on the farm of Karma’s family-run
business, ensuring non-contaminated and quality products. The family pops, seasons, and bags
the kettle corn right from their home, without the big-name brands’ use of major factories and
processing machines. Karma’s Korn kettle corn uses minimal ingredients to create a delicious
snack that is also much healthier for the consumer. The kettle corn comes in a wide variety of
flavors suited to each person’s need. In fact, Karma’s Korn takes special orders, creating flavors
and special kettle corn for any occasion. Karma’s Korn kettle corn is a snack consumers can
trust, as it is directly farm-to-table, helping local farmers and consumers’ overall wellbeing.
To bring make this product successful, we at Karma’s Korn will be introducing the kettle
corn at key locations. Through local fundraisers, farmers’ markets, and gas stations, the kettle
corn will be brought to the eye of the public, creating major brand awareness. This will introduce
new consumers to the brand all while increasing the support of local farmers and their produce.
As awareness grows, Karma’s Korn will penetrate new markets found in other locations in the
Midwest. As the affordability and locality of the product become commonplace, consumers will
look to Karma’s Korn for their snack satisfaction rather than the big-name brands found in
grocery chains.

Company Description

In White, South Dakota, Karma’s Korn is the only kettle corn business in the area. With
the aim at providing a quality kettle corn product at a reasonable price, Karma’s Korn exceeds
expectations. All the kernels for the product are grown on the Berndt family farm, supporting
local agriculture often overlooked. Moreover, the product is produced start-to-finish on the farm,
meeting the increasing consumer need for non-processed kettle corn. There are about 18 different
flavors available, in addition to the already accessible special-order flavors produced on demand.
 As a local product, Karma’s Korn caters events, participates in fundraisers, and partakes in
private sales. The kettle corn is also sold at regional farmers’ markets and town days. This local
product supports local causes and events, never letting the company mission stray from its rural
roots.
Karma’s Korn plans to start in the local White, South Dakota area with sales, and grow into a
wider regional zone overtime. The kettle corn will first be sold at markets and events, and then
later to local gas-stations and local retailers. Consumers’ awareness will grow through these sales
and marketing strategies, helping the kettle corn be released to bigger market segmentations after
each year.

Strategic Focus Plan

Mission Statement:
Karma’s Korn is a family-run business that seeks to provide fresh, home-grown kettle corn that
supports other local businesses and farmers in the South Dakota community.
Goals:
For the coming five years Karma’s Korn seeks to achieve the following goals:
-Nonfinancial Goals
1. Grow the Karma’s Korn Facebook page to a following of 1,500 in 2 years.
2. Partner with 3 local gas stations to sell Karma’s Korn products in their convenience
stores by September 1, 2020.
3. Partner with 5 other local farmers to grow product for Karma’s Korn kettle corn in
the next three planting seasons (about May 2023).
-Financial Goals
1. Increase Karma’s Korn website sales by 75% in 2 years.
2. Schedule 12 fairs/shows at which to sell Karma’s Korn for the year 2021.
3. Make $400 at every farmers’ market (local and regional) that Karma’s Korn attends
in 2021.
4. Make $20,000 at the Sturgis motorcycle rally in throughout the next 5 years.

Competency and Sustainable Competitive Advantage:

Karma’s Korn is the only locally grown popcorn that is strictly “farm-to-table.” It utilizes
and supports local farmers in the White, SD area. It provides the community with kettle corn that
is not processed or imported, rather it is fresh from the field.
 This core competency of Karma’s Korn that leads to its sustainable competitive
advantage over competitors is all about the local, family-first values it carries. Other kettle corn
competitors use imported corn and are not beneficial to your local community, as they are chains
that do not support local farmers or fresh ingredients.

Situational Analysis

Strengths

• Brand Image
How to build on it: We will continue to keep up personal customer relations that create
our family brand image that appeals to local consumers.
• Production Costs
How to build on it: We will continue to produce our own popcorn so the production costs
stay significantly lower, helping us reach our financial goals.
• Marketing Skills
How to build on it: We will keep our marketing resources within the company (family
employees) to create our own personal and unique marketing strategies.

Weaknesses

• Slower production
How to correct it: We must start popping popcorn daily and invest in new popping
equipment to speed up production.
• High shipping costs
How to correct it: We need to partner with a small-business company that works with
other small-businesses with their orders, marketing, and shipping costs.
• Lack of product awareness
How to correct it: We must market our attributes and consumer relationships to grow our
clientele.

Opportunities

• Fundraisers
How to exploit it: We should participate in more fundraisers with our rare 50/50
fundraising rate, helping our awareness and local causes.
• Attendance of farmers’ markets and fairs
How to exploit it: We should communicate with local, city, and state officials to sell
Karma’s Korn at available farmers’ markets and state fairs to reach their high attendance
populations.
 • Healthy snack trend
How to exploit it: We should highlight to consumers that our popcorn is locally produced
and is a healthier popcorn option than other competitors’ products.

Threats

• Large processors
How to avoid it: We must continue to stay local (even with potential future growth) to
combat large processors fast turnaround rates.
• Retaining old habits
How to avoid it: Make sure that our prices stay significantly lower, we have larger
product sizes, and use local ingredients to draw in potential customers that are loyal to
our competitors.
• Weather
How to avoid it: Due to unknown weather patterns that could affect our crops, we should
save up extra kernels and ingredients to provide our products during potential, bad
seasons.

Market Product Focus

Target Markets:
Karma’s Korn identifies with all age cohorts, as kettle corn is a favorite snack for all ages
and generations. These consumers (or parents of the consumers in the scenarios of young
children) earn a middle-to-low income and thus can afford our lower-priced product. Catering to
consumers who are in the region, Karma’s Korn seeks to reach demographics of people in the
Midwest, specifically the South Dakota/North Dakota/Minnesota/Iowa/Nebraska area. With our
emphasis on home-grown popcorn and few ingredients, we focus our target market on those who
are health-conscious regarding the snacks they consume, creating the need for a quality snack.
More specifically, we want to include and target local consumers who desire to support small
businesses in their region.

Points of Difference:
There are three particular points of difference that make Karma’s Korn kettle corn shine
bright amid our market of big-name competitors. These three points are:
- Allergy-friendly. Karma’s Korn kettle corn uses few ingredients, unlike our
competitors, reducing the chances for allergic customers. For example, we pop our
 corn in corn oil rather than peanut, allowing for more customers to consume our
product. We are also, gluten-free, dairy-free, vegan friendly, and more.

- Home-grown and home popped. In a market that utilizes major factories and
processing giants to produce kettle corn products, Karma’s Korn utilizes field-to-table
techniques. Our kettle corn is produced and packaged all in South Dakota; more
specifically, is it made within a 2-mile radius of where the corn is grown.

- Flavorful. Karma’s Korn kettle corn is a wide variety of flavors from which to
choose. On average, there are 18 flavors sold at a time, with seasonal flavors added
throughout the year. We take customers' requests on flavors, creating special order
products to fulfill consumers’ specific needs.

Positioning:
The kettle corn industry is dominated by big companies that produce few flavors with a
high number of ingredients. Karma’s Korn is different from the rest because we always start
from home. We cater to all ages and people with our low-priced, healthy kettle corn option. By
using minimal ingredients, we reduce allergens and the processing hassle that adds unnecessary
treatments. Growing and packaging the corn from home ensures a quality and safe product that is
not manipulated by machines or preservatives. Karma’s Korn gives its consumers a product they
truly asked for, with a variety of flavors made from home, kettle corn has never been tastier.

Marketing Program

Product Strategy:
Product Consistency and Variety. The Karma’s Korn product comes in 18 different
flavors and counting as well as the option to buy un-popped, homegrown kernels for personal
use. Consumers can also request special-order flavors, and Karma’s Korn will work to supply
those requests as soon as possible. The product’s flavors and varieties are ever-expanding to
meet consumers’ needs and wants, along with special seasons and holidays.
Homegrown Quality Product. All of Karma’s Korn’s products are locally grown and
flavored. This leads to consumers knowing exactly where their food comes from, decreasing
some potential risks and uncertainties. By producing homegrown products, consumers will know
that their purchases are aiding and supporting local farmers and businesses. Karma’s Korn social
media will also feature videos of the corn being popped, making the brand more transparent.
Packaging. Karma’s Korn uses a simple packaging for its kettle corn product that
includes the brand name, nutrition facts, and ingredient list. The kettle corn is packaged
immediately after it is popped all in the same place, providing a guarantee of freshness.
Consumers can see the kettle corn through the transparent packaging, allowing them to see
clearly the product they will purchase.

Price Strategy:
Karma’s Korn price remains low because of the homegrown aspect of the kettle corn, this
decreases the cost going into each bag sold. There are three different bag sizes including small,
medium, and large that sell for $5, $8, and $12 respectively. Karma’s Korn also offers special
options for catering that has a reasonable, negotiable price and bag sizes. These low prices allow
a variety of consumers with varying levels of income to purchase this universal product.

Promotion Strategy:
Karma’s Korn key promotion strategies include social media, local retail placement, local
markets/fairs, and word of mouth about a homegrown, excellent kettle corn product.
Social Media. Karma’s Korn will utilize the social media platforms of Facebook and
Instagram to spread awareness about the product. On the social media pages, Karma’s Korn will
share location, prices, different flavors, and a phone number to call to reach consumers
everywhere. With post boosts and more, new and loyal customers will see Karma’s Korn kettle
corn at their fingertips through their favorite social media sites.
Local Retail Placement. When consumers stop in the gas station for a quick snack, the
restroom, or to fill up their gas tanks, they will see Karma’s Korn products on the shelves. This
retail placement will be very convenient for consumers looking for a bite to eat for the road or
before getting home. The local ingredients found in local gas station retailers will entice
customers to buy the kettle corn product.
Local Market/Fairs. In the regional Midwest area by White, SD, there are many farmers’
markets and fairs consumers will find Karma’s Korn’s quality product selling. People from all
over the area will have a chance to buy local corn product in a variety of flavors to match their
every need. Consumers will find the markets and fairs an easy trip to buy multiple bags of kettle
corn you cannot find in the big box stores.
Word of Mouth. The final strategy is all about consumer satisfaction. Karma’s Korn kettle
corn will be so convenient, local, and tasty that customers will be excited to share the brand with
others. Karma’s Korn will be able to be reached by potential consumers through family and
friends who have tried the kettle corn product. They will know how the local, homegrown
product is easy to find at a low price, increasing their awareness and interest in the kettle corn.
Place (Distribution) Strategy:
Besides being sold online through the mail, delivery options, and pickup locations,
Karma’s Korn is sold at local farmers’ markets, fairs, gas stations, and through fundraisers. This
offers many different options for consumers, not only through direct purchases but also through
local retailers. These local, in-person options for purchase will allow the consumer to see the
product they want to purchase and decide between various flavors at their fingertips. All the
sales, whether in-person or online, will support local agriculture and businesses, giving the
consumers a great incentive to shop local (markets, fairs, retailer, etc.).

Financial Data and Projections

Five — Year Projection

Presented below is Karma’s Korn’s five-year projection plan. The projection, represented
as a table and graph, shows a five-year financial data demographic, starting from the current year
to date (2020). The data that is presented includes the units sold, net sales, gross profit, and
operating profit (loss). Each unit represents 10 bags of Karma’s Korn kettle corn. As shown in
the table and graph, the increase in numbers will be the outcome of Karma’s Korn sales,
production, and profit by the preceding year.

Karma’s Korn Financial Projections

Current
Financial Units Year Year 1 Year 2 Year 3 Year 4 Year 5
Elements 2020 2021 2022 2023 2024 2025
Units Sold 5000 500 1000 1500 2000 2500 3000
Net Sales $5,000 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000
Gross Profit $5,000 $2,100 $4,650 $7,200 $9,725 $12,275 $14,825
Operating
Profit (loss) $5,000 $1,300 $4,100 $6,700 $9,125 $11,500 $14,000
 Karma's Korn Financial Projections
16000

14000

12000

10000
Dollars ($)

8000

6000

4000

2000

0
1 2 3 4 5
Year

Net Sales Gross Profit Operating Profit (loss)

Organization

The structure and organization of Karma’s Korn employees is displayed below. The chart shows
the highest-ranking positions at the top, with lower levels branching off each of the top positions.
The chart shows the progression and growth of the structure of Karma’s Korn through the next
five years.

Board of
Directors

CEO

Chief
Chief Financing Chief Sales Chief Marketing
Operations
Officer Officer Officer
Officer

Regional Regional
Regional
Operations Sales Personnel Marketing
Accountants
Managers Managers

Quality Customer Marketing

Assurance Service Teams

Famers/
Manufacturers
Color Index: Red: Years 1 & 2 Green: Years 2 & 3
Gold: Years 3 & 4 Blue: Years 4 & 5

Beginning as a family-run business, a small number of personnel will be employed

(making up the Board of Directors and CEO position). Within the five years, as
producers/farmers partner with Karma’s Korn and awareness is created, more personnel will be
added, beginning with the Chief Officers under the CEO. All the positions will be full-time to
start. In the latter years of this plan, with growth in business and sales, personnel will expand,
and with that job positions that may be added as part-time.

Implementation Plan

Bringing Karma’s Korn kettle corn to local, small-town gas stations is the first step in
introducing the brand to a variety of retailers. It is projected that after 5 years, Karma’s Korn
kettle corn will be sold in gas stations and grocery stores in the midwestern states of South
Dakota, Iowa, Nebraska, and Minnesota. The expected rollout projection is shown below.

Rollout Schedule for Entering Local Grocery Retailer Markets:

Year New Added Markets Cumulative Markets Cumulative Percentage of

Grocery Retailers (4 States)
2021 25 25 1%

2022 25 50 2.5%

2023 25 75 5%

2024 25 100 8%

2025 25 125 11%

At the start of the five years, Karma’s Korn kettle corn will be sold in local gas stations around
White, SD. It is expected that the growth in sales in these retailers will allow the growth into
local grocery stores, with our first major city being Sioux Falls, SD. As people see Karma’s Korn
in their local stores, more retailers will adopt the local product, spreading it to surrounding areas.
It is important that the smaller towns (the first locations) begin a positive word-of-mouth trend
that helps Karma’s Korn add new markets.

Evaluation and Control

There is a predicted number of sales for each retailer Karma’s Korn will be sold in. Each sale
made in the first set years will be calculated and compared to the target number. Based on the
comparisons, we will adjust marketing and product placement accordingly. The retailer roll-out
speed will be adjusted as necessary regarding how well sales do in each region. If sales are
higher than expected, then the roll-out speed will be increased and the five-year projections for
this implementation plan will be updated.