GOOD FOODS INCORPORATED Good Food, Incorporated (GFI) is a company founded on the belief that children can grow up healthier and live longer if they are fed a natural, nutritionally balanced diet starting earlier in life. GFI's goal is to increase awareness of this link between diet and health. Good Food Industry was a start up business with three principals presently involved in its development. GFI's principals have researched and developed a line of unique children's food products based on the holistic health concept.

The holistic concept, which health food consumer determined was widely accepted among adult consumers of health foods, was new to child-care field. Hence GFI planned to take advantage of the opportunities for market development and penetration that its principals were confident exists. GFI also believed that the existing baby-food industry paid only cursory attention to providing high quality, nutrition products, and that the limited number of truly healthy and nutritious baby foods created a market void that GFI could successfully fill. Market Research During its market research phase, GFI engaged "Vick Product Sales Research Corporation" as its marketing and advertising consulting company. Vick prepared reports on industry trends for the traditional children's food industry and healthy food industry.

Vick's market research showed that the United States was entering a "mini baby boom" that would increase the potential market base for its products. Health food products would approach the market place primarily through the health food stores and nature food centres in major supermarket chain stores, initially in the northwest and California. Acceptance of the GFI concept in these areas would enable The Company to expand to a national market. Market Definition GFI planned to direct its efforts to the sale of its health care products through the health food retail outlets and natural food centres located within major supermarkets. Geographically, the company would initially direct its efforts in two key areas: Northeast, especially around New York City: and particularly in the Reno, Nevada and Sacramento, California area.

Both areas had a high concentration of adult health food consumers who GFI had found, through market research and analysis, to be most receptive to health concepts for children. According to this market research the specific target markets that GFI would approach through these outlets were: o Parents who were concerned about their health and their children's health and who thus demand higher quality and more nutritionally lanced foods and products. o Operators of child-care centres who provide meals to children. Competitive Analyse GFI expected to face competition from two key areas; first, traditional children's food suppliers and second, the health food trade. The children's food industry was highly competitive, with a small number of very powerful suppliers.

Three children's food manufacturers currently supplied nearly the entire industry. In the view of these companies' dominance of the market, GFI had developed an initial approach to marketing that would focus on the outlets other than the mass merchandisers. As with mass-market food products for adults, there had been a noticeable trend towards food products for children that made nutritional or quasi-nutritional claims. This trend was helpful to GFI in that it increased consumer awareness of importance of nutrition. However these products were not competing with those of GPI because they were primarily sold in the children's food sections of standard supermarkets. GFI believed the nutritional value and quality of these traditional manufacturers' items would be viewed as consumers become aware of health-food products.

More competition was to be found in the health food trade. Competition here was of three forms: broad-line companies whose market some child-related products; those who sold a few selected children's items such as cereals; and local companies who supplied children's foods in a limited geographical area. Selected companies in this latter category are beginning to expand their product lines and appear to be planning for national distribution. GFI believed it was well equipped to compete in this market, because of its extensive market and product research to date, the expertise of principals, the retail knowledge had gained through the Nature's Best Inc. (NBI) - an affiliated company which owned and operated a retail store selling health food products for adult and children-stores and its already well-developed product line. Although NBI was a single retail shop, GFI planned to gain an expertise from its sales staff and distributors.

Price Competition GFI intended to position its products as slightly higher priced health care items, due to its complete line and services. GFI's products price was 15 to 18 percent above the suggested retail price of the products of the major baby food producers. GFI, in Now GFI is the only company in the industry that markets a complete health food product line for children and a comprehensive education program aimed at increasing awareness of the holistic concept, thereby increasing the sales of its products. The company's entire marketing effort is in the area of health food for children and The Company's product sales l benefit from the broad-based appeal generated through the numerous retail outlets GFI utilize. This focus distinguishes GFI from competing health food companies such as Familia and Health Valley.

These companies offer a broad line of adult oriented products to which they have added a narrow line of children's products. GFI distinguishes itself from the major baby food makers by positioning itself as a maker of superior quality health food products. Behind this success story, a good marketing plan is laying. The Company made market research with another company who was a professional in this area, it made good competitive analyse and by targeted right market segment and use the right strategy, GFI now is a leading company in its industry. Eric Siegel, "The Arthur Young Business Plan Guide" 1987, p. 63-68..