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SYSCO BEVERAGES MARKETING PLAN

Team Alpha: Cassy Simmons, Garrett Justice, Imaan Khalil, Matt McCullough, Zarria Word

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TABLE OF CONTENTS

01

04

02

05

03

06

INTRODUCTION

MARKET ANALYSIS

MARKET STRATEGY

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INTRODUCTION

Sysco: foodservice B2B company that was founded nearly 50 years ago
Housed in the top 40% of The Fortune 500
One of the largest wholesale corporations
334 distribution centers with 725,000+ client locations across 90 countries
Ranked 297^th in the Fortune Global 500

Specializes in meat, dairy, produce, bread, beverages, and equipment
Distributes to a wide variety of facilities
Focuses on quality, customer service, and sustainability
Known as a “one-stop-shop”

COMPANY

PRODUCTS

“Our Purpose.” Sysco. Accessed February 15, 2024. https://www.sysco.com/about/company-profile/our-purpose.

“Sysco: Business Model, SWOT Analysis, and Competitors 2023.” PitchGrade. Accessed February 15, 2024. https://pitchgrade.com/companies/sysco.

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Sysco is a business-to-business company that specializes in foodservice distribution. Over time, it has become one of the largest wholesale corporations, with hundreds of distribution centers and nearly one million client locations. It has received notable praise across the media, including a spot in the top 40% of the Fortune 500.

One of the most remarkable aspects of Sysco is its global presence. As a company that has a customer base across 90 countries, Sysco has solidified its spot as one of the global leaders in the foodservice distribution industry. This has given the company a ranking of 297 on the Fortune Global 500.�

Sysco offers a wide variety of products to its customers. These products can be common foods like meat and seafood, dairy and eggs, fruits and vegetables, bread, and canned goods. However, Sysco also provides non-food items as well, like food storage, cutlery, and other types of equipment.

“Our Purpose.” Sysco. Accessed February 15, 2024. https://www.sysco.com/about/company-profile/our-purpose.

“Sysco: Business Model, SWOT Analysis, and Competitors 2023.” PitchGrade. Accessed February 15, 2024. https://pitchgrade.com/companies/sysco.

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MARKET ANALYSIS

Size and growth trends:

$482 billion impact with ~ 918,000 employees
Driven by a diverse customer base
Technological Advancements:

Robotics and AI

Key Players/Technological Changes:

Competitors:

US Foods and Gordon Food Service

Regulatory changes:

Laws related to food safety (Food Safety Modernization Act)

Technological changes:

Automation and AI in Supply Chain Management

INDUSTRY OVERVIEW

COMPETITIVE LANDSCAPE

DIFFERENTIATION STRATEGY

Improve operational efficiency
Expand Product offerings
Emphasize personalized service and strong customer relations
Continuously monitor and adapt

Lindner, Jannik. “Catering Industry Statistics • Gitnux.” GITNUX. Accessed April 28, 2024. https://gitnux.org/catering-industry/.

Narration:

In today’s dynamic catering industry, the landscape is defined by a complex market with a $482 billion economic impact and a workforce of nearly 918,000 people.1 Moreover, technological advances, especially in areas such as robotics and artificial intelligence, are going to transform efficiency and drive innovation.

Now let’s examine the key competitors shaping this trend and the recent legal and technological changes in the US. US Foods has an impressive market position and a loyal workforce, but struggles with high costs, while Gordon Foodservice excels in product development and personal service but faces challenges in product diversification and global expansion.

Considering the current market situation, it is important to focus on the customer. In a competitive environment, understanding customer needs and wants is important. Using technological advances and providing consistent locally sourced options are just a few ways to meet evolving customer needs. By strengthening customer relationships and providing tailored solutions we will differentiate ourselves in this dynamic market.

Sources:

Lindner, Jannik. “Catering Industry Statistics • Gitnux.” GITNUX. Accessed April 28, 2024. https://gitnux.org/catering-industry/.

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CURRENT CUSTOMER

Target Market: Professionals in the food service industry, primarily Gen X and older Millennials

Characteristics:

Technologically adept and passionate about sustainability

Preferences:

Consider the environment in purchasing decisions and seek high-quality products

Challenges:

Economic fluctuations and diverse needs

Opportunities:

Engaging with emerging demographics and using social media platforms

“Average Restaurant Owner Salary in 2023.” Clover Blog, December 12, 2023. https://blog.clover.com/average-restaurant-owner-salary/#:~:text=How%20much%20restaurant%20owners%20make,to%20roughly%20%2447%20an%20hour.

David L. Mothersbaugh, Delbert Hawkins and Susan Bardi Kleiser, Consumer Behavior: Building Marketing Strategy, 15th ed (New York: McGraw-Hill Irwin, 2023), 120

Narration:

In our customer analysis research, we found that employees in the food industry, are comprised primarily of Gen X and older millennials. These individuals are characterized by digital connectivity, as well as financial awareness and a strong emphasis on value-based decision-making. Sustainability and quality are very important to them. They also actively consider the environment as well as high-quality products and services in their decisions. They face challenges such as economic fluctuations and diverse needs within the industry. However, there are many opportunities that come with the current customers, such as attracting emerging demographics such as Gen Z and millennials and using social media to connect with customers.

Sources:

“Average Restaurant Owner Salary in 2023.” Clover Blog, December 12, 2023. https://blog.clover.com/average-restaurant-owner-salary/#:~:text=How%20much%20restaurant%20owners%20make,to%20roughly%20%2447%20an%20hour.

David L. Mothersbaugh, Delbert Hawkins and Susan Bardi Kleiser, Consumer Behavior: Building Marketing Strategy, 15th ed (New York: McGraw-Hill Irwin, 2023), 120

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NEEDS AND MOTIVES

Sysco’s new potential target markets (Asian and African Americans) have multiple needs and motives that need to be recognized that align with what Sysco provides:

Motives

Needs

Fresh and High-Quality Food
Sustainability Efforts
Technology Solutions for Restaurants
Wide Variety of Products and Services (a one stop shop)
Easy Access to Products

Tension Reduction
Autonomy
Safety
Need for Affiliation
Utilitarian Need

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TARGET: ASIAN AMERICANS

LIFESTYLE

DEMOGRAPHIC

AGE	25-44 years old
GENDER	Male and female
OCCUPATION	Business owners, entrepreneurs, chefs
FAMILY SITUATION	Young Families
INCOME	Upper mid-scale Median: $83,000
PRIZM	Up-and-Comers

AREA	Urban/Suburban Atlanta, GA
COUNTIES	Gwinnett (37.5%) Dekalb (29.5%)

Tech-savvy, Heavy reliance on social and digital media
Value-oriented
Convenience, efficiency, price, and quality
Fluent in English with connection to native languages/cultures
Purchasing Power: $1.6 trillion in 2024
Asian Indians: one-third of Georgia's Asian population

Source 1: “Up-and-Comers,” Claritas, accessed March 22, 2024, https://claritas360.claritas.com/mybestsegments/#segDetail/PZP/25.

Source 2: “Zip Codes with the Highest Percentage of Asian Population in Atlanta, GA,” ZIPAtlas, accessed March 24, 2024, https://zipatlas.com/us/ga/atlanta/zip-code-comparison/percentage-asian-population.htm.

Let's start by diving into the first potential target market we decided to focus on, the Up-and-Comers segment within the Asian American community in Atlanta. These individuals are experiencing rapid economic growth and have substantial purchasing power. They are young, tech-savvy, and culturally connected, prioritizing convenience, efficiency, price, and quality in their purchasing decisions. Geographically, we find them in vibrant urban districts and suburban cities like Dunwoody and Duluth and prominent in Gwinnett and Dekalb counties. The Asian population is rising in Atlanta, particularly from Indian descents. They are heavy users of digital media and streaming services, making targeted digital marketing strategies highly effective in engaging with this demographic.

“Up-and-Comers,” Claritas, accessed March 22, 2024, https://claritas360.claritas.com/mybestsegments/#segDetail/PZP/25.

“Zip Codes with the Highest Percentage of Asian Population in Atlanta, GA,” ZIPAtlas, accessed March 24, 2024, https://zipatlas.com/us/ga/atlanta/zip-code-comparison/percentage-asian-population.htm.

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TARGET: AFRICAN AMERICANS

LIFESTYLE

DEMOGRAPHIC

AGE	25-55 years old
GENDER	Male and female
OCCUPATION	Business owners, entrepreneurs, chefs
FAMILY SITUATION	Dual Income
INCOME	Elite Median: $104,015
PRIZM	Up-and-Comers

AREA	Urban/Suburban Atlanta, GA
COUNTIES	Dekalb (34.4%) Cobb (30.1%) Fulton, Gwinnett.

Tech-savvy, online shopping
Family-oriented, strong community ties
Quality and convenience
Organic/healthy foods
Culturally diverse with interests in music, fashion, and entertainment
Purchasing Power: $1.8 trillion in 2024
Atlanta, "Black Mecca” of America

Source 1: “Upward Bound,” Claritas, accessed March 22, 2024, https://claritas360.claritas.com/mybestsegments/#segDetail/PZP/13.

Source 2: “ZIP Codes with the Highest Percentage of Black / African American Population in Atlanta, GA,” ZIPAtlas, accessed March 22, 2024, https://zipatlas.com/us/ga/atlanta/zip-code-comparison/percentage-black-african-american-population.htm.

Now, let's shift our focus to the second segment option for our new campaign, the Upward Bound African Americans in Atlanta. These individuals are experiencing an upward trajectory in terms of economic status and purchasing power. They are tech-savvy, family and community oriented, prioritizing organic and healthy foods while valuing quality and convenience in their purchasing decisions. In terms of geographic concentration, we find them predominantly in thriving urban neighborhoods and suburban communities such as Dekalb County and Cobb County, with significant Black populations. Atlanta, known as the 'Black Mecca,' hosts a growing Black population with high rates of homeownership and entrepreneurship, making it a crucial market for us.

“Upward Bound,” Claritas, accessed March 22, 2024, https://claritas360.claritas.com/mybestsegments/#segDetail/PZP/13.

“ZIP Codes with the Highest Percentage of Black / African American Population in Atlanta, GA,” ZIPAtlas, accessed March 22, 2024, https://zipatlas.com/us/ga/atlanta/zip-code-comparison/percentage-black-african-american-population.htm.

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WHY AFRICAN AMERICANS ?

1. Market Potential:

Nielsen's PRIZM data: 1,439,174 African Americans in Cobb-Gwinnett-Dekalb-Fulton.
Upward Bound segment: 15,427 potential customers.

2. Alignment with Needs and Motives:

Prioritizes quality, convenience, and value in purchasing decisions.
Preference for organic and healthy foods aligns with Sysco's offerings.

3. Financial Projection:

Estimated 208 potential customers with a budget of $2,822/week
Projected net profit: $378,936 in 24 weeks
Elite purchasing power

Source 1: “QuickFacts: Gwinnett County, Georgia; Cobb County, Georgia; Fulton County, Georgia; DeKalb County, Georgia; United States,” United States Census Bureau, 2023, accessed March 28, 2024, https://www.census.gov/quickfacts/fact/table/gwinnettcountygeorgia,cobbcountygeorgia,fultoncountygeorgia,dekalbcountygeorgia,US/PST045223.

Source 2: “What Should Liquor Cost Be in a Restaurant: A Guide for Business Owners,” Epos Now, September 15, 2023, https://www.eposnow.com/us/resources/what-should-liquor-cost-be-in-a-restaurant.

We decided to focus on the Upward Bound - African American segment for our market strategy, let's understand the reasoning behind that.

First and most importantly, looking at the numbers, U.S. Census data tells us that there are over 1.4 million African Americans in the Cobb-Gwinnett-Dekalb-Fulton area alone. Within this demographic, the Upward Bound segment stands out with over 15,000 potential customers. These figures represent a significant market opportunity for Sysco.

Now, why does this segment make sense for us? It's all about alignment with needs and motives. Upward Bound individuals prioritize key factors in their purchasing decisions: quality, convenience, and value. These align perfectly with what Sysco offers, especially considering their preference for organic and healthy foods. This synergy means our products are not just appealing but directly meet the preferences of this target audience.

Looking at the financial side, our projections estimate around 208 potential customers from this segment. Over a 24-week period, this translates to a projected net profit of nearly $380,000. This forecast highlights the financial viability and potential return on investment from targeting this segment. Additonally, Upward Bound African Americans in Atlanta are often entrepreneurs and possess elite purchasing power. This further solidifies their potential as high-value customers for Sysco.

In essence, it’s all about numbers and strategic alignment. By catering to their needs and preferences, we're not only tapping into a substantial market but also positioning Sysco for significant financial gains.

“QuickFacts: Gwinnett County, Georgia; Cobb County, Georgia; Fulton County, Georgia; DeKalb County, Georgia; United States,” United States Census Bureau, 2023, accessed March 28, 2024, https://www.census.gov/quickfacts/fact/table/gwinnettcountygeorgia,cobbcountygeorgia,fultoncountygeorgia,dekalbcountygeorgia,US/PST045223.

“What Should Liquor Cost Be in a Restaurant: A Guide for Business Owners,” Epos Now, September 15, 2023, https://www.eposnow.com/us/resources/what-should-liquor-cost-be-in-a-restaurant.

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MARKETING STRATEGY

1. Product Features:

- Fresh, high-quality mocktail ingredients in eco-friendly packaging.

- Diverse juice and flavor selections for cultural tastes.

2. Message/Theme:

- "Sip the Difference: Sysco Mocktails, Where Health Meets Elegance!"

- Celebrates cultural richness and community.

3. Alignment with Needs/Motives:

- Meets demand for fresh, premium-quality beverages.

- Resonates with cultural values and health consciousness.

4. Marketing Goals:

- Establish Sysco Mocktails as the top choice for our target market.

- Foster a sense of belonging and celebration through our brand.

Since we have chosen our target market, it’s important to center our new campaign around them. Our market strategy centers around offering fresh, high-quality mocktail ingredients packaged in an eco-friendly manner. We understand the importance of catering to diverse tastes, which is why our product includes a wide range of juice and flavor selections that align with the target market’s cultural preferences.

Our message is captured in 'Sip the Difference: Sysco Mocktails, Where Health Meets Elegance!’, It is further emphasized in our theme with two crucial aspects. Firstly, we celebrate cultural richness and community through our products, acknowledging the significance of cultural values in our consumers' lives. Secondly, we prioritize health consciousness, resonating with individuals who seek premium-quality beverages that contribute positively to their well-being.

This alignment with the needs and motives of our target market is crucial. We want to position Sysco Mocktails as the top choice for our target audience. Our goal is not just to sell products but to foster a sense of belonging and celebration through our brand, creating meaningful connections with our consumers.

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CAMPAIGN BUDGET (JAN-JUNE)

$1,100

$4,900

$2,900

Facebook

Event Booth

Restaurant Informer

For this marketing campaign, a budget of $10,000 was given to distribute between different promotional channels from the months of January to June.

The first expense will be an allocated amount of 29%, or $2,900. This expense will be dedicated to magazine advertising with Restaurant Informer, which will establish a path for the rest of this campaign.

The second expense will be an allocated amount of 60%, or $4,900. This expense will be used to purchase and operate an event booth at a trade show that will be discussed in detail in later slides. This amount will give us more than enough to purchase the booth along with any add-ons such as table upgrades, music licensing, or speakers.�

Lastly, the third and final expense will be an allocated amount of 11%, or $1,100. This expense will be dedicated to social media advertising on the platform Facebook, allowing Sysco to follow up with consumers after the trade show.

Given the price of our products and our budget, it will only take Sysco 132 orders to break even.

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AD #1

MAGAZINE ADVERTISEMENT

Atlanta R&B, Wine, Food, & Music Festival – May 25^th

The Restaurant Informer

29% of marketing budget

Our first promotion for our new mocktails is a magazine advertisement. This ad will aim to promote our new product in the context of Sysco‘s plans to attend the Atlanta R&B, Wine, Food & Music Festival this year. This ad will be published in a B2B magazine dedicated to providing Georgia-focused restaurant news for the state of Georgia, The Restaurant Informer. Our ad will run for exactly four monthly issues taking place in January through April, right before our anticipated festival appearance in May.

Doubling as an infographic, our ad pictures a female African American bartender serving other African-Americans a mocktail while smiling and sharing laughter. Everyone in the advertising media appears joyous and enlightened while enjoying themselves in a nice restaurant setting. This imagery embodies most restaurant owners’ vision when it comes to success in terms of catering to this target market. The ad utilizes orange fonts, which honors African American heritage and culture. The event poster is also posted on the ad to draw attention to the event. The date and booth information is printed with the largest text on the magazine ad since it is the most important information.

Our team plans to dedicate around 29% of our budget to print advertising. Restaurant Informer’s color ad rates show that an outside back cover would cost us $2,840 for a frequency of four issues.¹⁵¹ This gives more than enough time for the news to spread in the local Atlanta area.

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AD #2

BOOTH SKETCH

Atlanta R&B, Wine, Food, & Music Festival

10x10 Infinity Pro Backlit Show Booth

60% of Marketing Budget

Our second advertisement is an event-based promotion; a booth sketch. Our team’s booth selection at the festival was driven by strategic considerations such as shareability, availability, and readership. Our booth will pay tribute to our theme of ‘Embracing Cultural Richness and Community in Every Sip!’. Located in the middle of the event, our booth uses increased foot traffic to ensure maximum exposure for our target audience. To maximize visibility and engagement, our advertising will be prominently displayed on a vibrant backdrop. A large portion of our budget will be allocated to this.

Promotional materials will tap into the latent motive of the need for affiliation using oranges, reds, and browns as African Americans are drawn to strong colors often in the red, brown and yellow families. Our booth will have a tent with a table set up and a background that reads ‘Sysco Mocktails - Where Health Meets Elegance’. There will also be a music speaker on the side playing R&B classics to pay tribute to the target’s heritage. Our booth will have 2 Sysco reps serving mocktail samples and showing how to make them. There will be a sign offering the 3 mocktail varieties to sample: Strawberry Orange Sunset Spritzer, Crafted Coconut Krush, and the Lemon Mint Iced Refresher.

Our team plans to dedicate 60% of our marketing budget to this in-per event. Sysco plans to use a 10x10 Infinity Pro Backlit trade show booth at the event that cost $4,545. leaving us with an extra $1,455 from our 60% budget to use towards any potential upgrades.

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AD #3

TARGETED FACEBOOK ADS

Festival Customers – Follow Up

Showcasing nutritional value and sourcing of ingredients

11% of Marketing budget

Our third and final promotional tactic will consist of using targeted Facebook ads to follow up with any new customers we may have gained from the festival. This photo ad would be published showcasing one of our mocktails, our digital ad showcases a highly styled version to inspire restaurant owners and entice them to look into our offerings further. Surrounding the fancy mocktail are the natural ingredients used. This visual emphasizes the manifest need for fresh and high-quality food and works to reach those who prioritize not just taste but also the nutritional value and sourcing of their ingredients as stated above.

Through this ad, we emphasize the health-conscious aspect of Sysco mocktails. We showcase how our ingredients not only contribute to the delicious taste but also promote well-being and vitality. Through imagery and messaging, we highlight the organic and nutrient-rich nature of our ingredients, appealing to the health-conscious mindset of African American men and women.

Facebook ads are based on an auction-style bidding system, giving us the flexibility to use the rest of our budget without worries about going beyond our means. It also allows marketers to set up an ad campaign on their platform along with a budget that will be automatically distributed accordingly.¹⁵⁵ With the majority of our budget going to our magazine and event ads, we will dedicate the remaining 11% to this Facebook campaign, leaving us with $1,100 to spare. With this final promotional tactic, Sysco has the potential to receive approximately 2,619 clicks during its May-June ad run. Its click-through rate (CTR), 1.20%, and conversion rate, 3.98%, also leave potential for an extra boost in sales.

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CUSTOMER SERVICE

Sysco can improve their customer service by:

Improving technology implementations by having real people on call to help with Sysco services, digital ordering through the Sysco app, and inventory management solutions like automatic ordering
Implementing DEI into the workplace by hiring a diverse spectrum of people to better relate to a larger number of customers and creating a company culture that values a wide range of experiences and viewpoints
Offering recipe workshop events where customers can network and contribute to Sysco, increasing personal investment, sharing their culture, and building professional relationships

Sysco can make changes to their customer service in a few ways to better serve its target markets. First, Sysco needs improve their technology by including digital ordering in their app and allowing for convenient services like automatic ordering and inventory management. Second, Sysco should implement DEI into their organization by hiring more people of color and fostering a work culture that values a wide range of experiences and viewpoints. This is to help Sysco’s customers relate better to the company and build trust with them. Lastly. Sysco should create recipe workshops where professional chefs work with Sysco customers to create new dishes. This will provide professional networking opportunities, increase customer investment in the Sysco brand, and allow them an avenue to share their culture with others.�

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CONCLUSION

The ultimate goal for Sysco is to connect with it’s African American customer base
By following the 24 week campaign, Sysco will see a net profit of $378,936
Only a small portion of that may pulled from the $10,000 initial investment and potential redemptions of the 10% discount for attendees at the Wine, Food, and Music Festival
After these considerations, Sysco will still have $310,238

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THANK YOU

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THANKS!

CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon and infographics & images by Freepik