Situational analysis: Marketing mix
The rooftop honey product is divided in two. First, there is the hive and then the honey. At the start, the company has to approach local business owners to sponsor a hive in order to grow the bee keeping initiative. The hive will be the start and getting people to sign off on the project that requires them to understand the benefits of honey and the environmental preservation aspects of the project. Honey on the other hand will be easy to move because the whole community understands the benefits of natural honey. Packaged in all glass jars including test tube sized samples, the rooftop honey will be sold in different consumer outlets within Australia. The product will be packaged in clear glass jars ranging from sample test tubes of 20g and 50g already in use up to 1kg jars. With the current company supporters including local business in the city, they will be a wide distribution network which can be useful in the product disposal process. The hotels, shops and supermarkets already sponsoring hives will be consulted in the product design packaged to meet their standards. For online and telephone orders, shipping is done freely for any purchase that exceeds $80 to encourage bulky purchases.
The determination of price will rely on the existing market price and the profitability margin of the product. This being an environmental initiative, the profit motive can always be overlooked in determining prices (Hoffmann, 2008). In the end, the applicable product prices should be slightly above the cost of production which is expected to lower once the constant supply of honey had been established. The standard packaging in the market is 500g and retails between $10 and $ 20. The rooftop honey product will be slightly lower than the market price because the public input in the production ensures a production lower cost and bulky production. During harvesting, the supporting business will get a fraction of the honey freely while the remainder is packaged and sold.
The product is located in the city of Melbourne. Partnering with the local business and the city, rooftop honey has placed over 80 hives and aims to have another 400 within the next two years. In the city, all business owners, estate developers and the government are welcome to adopt a hive in support of the project. Honey will be harvested from these hives regularly and distributed to the partners with the remainder packed and sold. The promotion will ensure that the rooftop honey is available to the entire country and eventually globally. The other cities are therefore expected to start adopting hives in the next few months to increase the supply of honey and meet the expanding demands when more people are introduced to the product.
In the past years, the initiative has been a success in terms of promotion and publicity creation. The project management has been active in reaching out far and wide and the consolidation of business partners across the city of Melbourne can attest to their progress. The company has therefore created an ideal image with the media receiving a huge support both locally and internationally in the last few years. Their efforts have not gone unnoticed by the big publications like the Travel Magazine and ABC News who have had a lot of encouraging things to say about the positive benefits of rooftop honey. The publicity created by these pieces has gone a great way in ensuring their strategic positioning in the market. Receiving numerous reviews from the food magazines and other environmental enthusiastic, rooftop honey project has been regarded as both an environmental conservation undertaking and a viable business model focusing towards the production and distribution of healthy foods.