December 9, 2013 To

From:
Re: Raw Food Market
China`s economy is built on large agricultural scale agricultural farming. Food is a basic need for people and the demand is always high. Farmers are responsible in planting or making fresh foods. The raw food market provides most food resources in China.
Current Situation
As people`s way of life improved, the demand for quality foods also increases. Thus, convenience and price of raw food consumption became much higher. Despite implementing the traditional model of raw food trading, problems persist. Included in these problems are the added fees to pay for transfer of food products to consumers misleading appearance of vegetables due to absence of modernized management mechanism and the complex process of transferring food due to lack of facilities. In addition, shopping centers are unsanitary and needs restructuring. The local market continues to lag behind with regard to efficient market system and ability to build stable consumer loyalty.
Project Plan
In order to increase profit in this type of market, it is essential to develop a good marketing technique. Direct marketing on raw foods is a new business model that can help to solve the problems. The direct marketing model effectively covers concentrated areas of urban uptown, shortens straight-line purchasing distances, and reduces the complexity of intermediate transfer. This will also significantly reduce expenses associated with transfer or delivery of products to consumers. However, this strategy is expected to face a lot of pressure when competing with other markets.
Costs and Benefits
Direct marketing provides the highest return of investment. According to DMA or Direct Mail Association Factbook for 2013, approximately 65% of consumers have made a purchase as an outcome of direct mail. Below is the average cost of mail marketing.
Conclusion
It is expected that with the use of direct mail marketing, the business will earn a higher rate of return and more consumers will make a purchase.
References
Beasley, L. 2013. Why Direct Mail Still Yields the Lowest Cost-Per-Lead and Highest Conversion Rate – OMI Blog. [online] Available at: http://www.onlinemarketinginstitute.org/blog/2013/06/why-direct-mail-still-yields-the-lowest-cost-per-lead-and-highest-conversion-rate/ [Accessed: 9 Dec 2013].
Pickton, D., & Broderick, A. (2005). Integrated marketing communications.