| Marketing ApplicationsMarketing Analysis of company Dary Kraje | |

| | | 2012/2013 | | | | |

Content
1 Executive summary 4
2 Situation analysis 5
2.1 Company analysis 5
2.2 Company objectives 6
2.3 Customer analysis 6
2.4 Product market 6 2.4.1 BCG matrix 7 2.4.2 Suppliers: 7
2.5 Competition 9 2.5.1 Benchmarking: 9
3 external market environment 11
3.1 Economic 11 3.1.1 Current economic situation 11 3.1.2 Tendencies 11 3.1.3 The current strategy of euro adoption 11 3.1.4 MAIN MACRO-ECONOMICS INDICATORS 12
3.2 Technological 13 3.2.1 Meat product processing 13 3.2.2 Bakery 16
3.3 Political and legal 18
3.4 Cultural and social 19
4 SWOT analysis 21
5 marketing plan objectives 22
5.1 Strategic thrust 22
5.2 Strategic objectives 22
6 Core strategy 23
6.1 Target market 23
6.2 Competitive advantage 23
7 Marketing strategy 24
7.1 Product 24
7.2 Price 24
7.3 Place 24
7.4 Promotion 24
8 communication mix 25
9 implementation and control 26
9.1 Problems to overcome 26
9.2 Control 26
9.3 Budget 26
9.4 Timing of implementation activities 26
9.5 Contingency plans 26
10 conclusion 27

Executive summary

Situation analysis
Company analysis
Dary kraje is a small shop offering quality farm food. It is possible to find there only the food without various flavours, chemical conservations and colourings. Most of the offered products come from Zlin Region. The shop offers pastry, confectionery, meat, meat products, milk and milk products, brandies, beers, ciders, baked teas, flours etc.
The shop is located on the street Kvítková in Zlin and was opened on 14th August 2012.
Business name: Dary Kraje
Location of headquarters: Podlesí IV 5349, 760 05 Zlín
Legal form: Sole proprietor
Field of activity: buying and selling foods
Number of employees: 3 employees

Company objectives
Mission – offering first-rate foods to people.
Vision – Be number one in offering first-rate foods in Zlin.
Objectives:
* In basement they would like to realise production of some foods. For example to produce pasta of the wholegrain flour or snacks of fruit comes from this region.
Strategy:
* communication with customers, finding out and understanding of customer´s needs * high quality of offering products * in future to sale their products on the Internet and provide delivery services
Customer analysis
Because the shop Dary Kraje is located near the centre, there are many people passing this street every day. But the problem is that no all of them know about this shop.
Customers are various – to shop there are going shopping young people as well as seniors or wealthy people. Generally the age of customers is up to 18. Average there is about 200 customers per day. But as well as in other shops or supermarkets most customers come on Friday afternoon. Each customer spend here average about 100 – 150 crowns per one purchase. Of course on Friday they spend more money than in other days.
Among the best sold products belong meat and meat products, pastry, milk and milk products.
Product market
In the assortment of shop Dary Kraje it is possible to find variety products. It offers milk, many kinds of milk products (like yoghurts, cottages, cheeses, whey, buttermilk, butter, cream, acidity milk etc.), meat (beef, veal, pork) and meat products (sausages, bratwursts, hams, salamis etc.), many kinds of flours (wheat, corn, rye, ...), eggs, vegetables (garlic, onion, salad, beet, radishes, tomatoes, parsley, cucumber, carrot, spinach, cauliflower, dill, peas, broccoli, zucchini, cabbage) pastry (breads, rolls, baguettes, cakes etc.), honey, teas, alcohol (slivovice, wine, beers), dried fruits, confectionery, vinegar, jams, nuts, oils, juices, pasta, spices ...
Most of these products are sold with 30% margin. The most sold products contain milk and milk products, meat and meat products and pastry (especially breads and rolls).
BCG matrix

Suppliers:
Milk and milk products are delivered by these suppliers: * Organic farm Horutovi – Rožnov pod Radhoštěm – products made of cow´s milk * Farm ZPZ – Valašská Bystřice – pasteurized milk and products made of cow´s milk * Farm Čeladénka – Čeladná – flavoured yoghurts and products made of cow´s milk * Farm Zdeňka – Hustopeče nad Bečvou - Porubáček (cottage with chocolate) and products made of cow´s milk * Sheep farm Ondruchovi – Valašská Bystřice – milk products made of sheep´s milk * Goat farm Sedlákovi – Šošůvka (Sloup v Moravském krasu) – products made of goat´s milk
Pastry is delivered by these bakers: * Bakery Lhota – Podhradní Lhota – wide range of sourdough breads and rolls * Pastry Staňka Elšíková – Vizovice – sourdough breads and small sourdough pastry * Petra Mikesková – Zádveřice – “wedding” cakes * Sweet-shop U Mikulců – Lhota u Vsetína –cakes called frgály, gingerbread, shepherd, Christmas sweets * Radmila Hubálová – Sušice –small pastry (3 kinds of sweet pastry and 1 kind of salt pastry), wine
Beverages are delivered by these suppliers: * Moštárna Hostětín – Hostětín – pasteurized juices and syrups * Bio farm Juré – Lužkovice – unpasteurized apple juices * Koldokol – Bojkovice – syrups and ice teas * ŽUSY s.r.o. – Boršice u Blatnice –spirits and liqueurs * Microbrewery Zlínský švec – Malenovice – beer (10°, 11°light, 11°semi-dark, 12°, special 13°) * Microbrewery Valášek – Vsetín – beer (12°, American Pale Ale, India Pale Ale, blueberry special, Viennese special) * VINOP a.s. – Polešovice - sects
Meat and meat products: * Butchery U Kusáků – Ostrožská Nová Ves – sausages, bio beef, pork, bio lamb and bio veal * Family cannery Via Delicia – Zábřeh na Moravě – deer, venison, rabbit, wild boar pate, pork, jams * Zdeněk Miklas – Poteč – lamb, apples
Other products: * Češkův mlýn – Jarcová, Bystřička – flours, oat-flakes, sunflower seeds, pumpkin seeds, buckwheat, millet, poppy, cumin etc. * Ecological farm u Macků – Starý Hrozenkov – dried fruits, tomatoes * Zdeněk Albert – Bařice – eggs, onion, garlic * Zdeněk Trhlík – Holešov-Tučapy – potatoes, onion * Josef Abrle – Pavlov – bio spices * Danuše Hadérková – Hulín – ketchup, tomato paste, sauerkraut, cabbage, vegetable ratatouille * Miluše Lodinová – Žďár nad Sázavou – roasted teas, apple and pear vinegar * Miroslav Janča – Nivnice - jams * Miroslav Halamíček – Rožnov pod Radhoštěm – fishes (trout, carp etc.) * Josef Řádek – Liptál - honey * Josef Gabriel – Boršice - honey * SUIGAL CZ s.r.o. – Morkůvky - honey * Radek Bartoš – Lanžhot – sunflower and pumpkin oil * Josef Košař – Lukov – bio vegetables * A.S.B. Frukt – Buchlovice - apples * Ovocné sady Žlutava – Žlutava – apples, apricots, peaches plums, nectarines
Subscribers
* Kindergarten Slovenská – milk, cottage * Butchery U Kusáků – milk, milk products
Competition
Among the largest and most dangerous competitors belong Biomarket U Zeleného stromu and Z Dědiny.
The shop Z Dědiny offers food coming from farms and small processors mostly from Zlin Region. Its range consist of milk and milk products, meat and meat products, pasty, beverages, beers, wines, pasta, vegetables and fruits, spices etc. The shop is situated in Náměstí Práce in Zlin in a building called Tržnice. In this shop it is possible to find products with these brands: Regionální potravina Zlínského kraje (Regional food from Zlin Region) and Perla Zlínska (Pearl of Zlin Region).
Biomarket U Zeleného stromu is the biggest seller of bio products, healthy products and natural nutritional supplements. Biomarket U Zeleného stromu have two shops – the first is located in Náměstí Míru and the second in department store Prior in Zlin.
Benchmarking:
| Company | | Dary Kraje | U Zeleného stromu | Z Dědiny | assortment variety | farm and bio products | bio products and natural dietary supplements | farm and bio products | business hours (week, weekend) | 11, 5 | 10, 0 | 10, 3 | price of the best selling product (milk) | | | | location | busy street | busy street | busy street | websites | no, only facebook profile | no, only facebook profile | yes | e shop | no | no | no |

The longest business hours are in Dary Kraje which could improve customer´s satisfaction but also could lead up to increase operating costs related with shop assistant´s salary. These operating costs could be reduced by creating e-shop to help cut the business hours.
Creating e-shop could lead up to increase sales in the shop Dary Kraje and win customers living not in Zlin round. We also recommend creating websites which the company lack. Facebook profile is unsatisfactory – it is confused and there aren´t entire information about products offered etc.
All three companies are located in busy streets, shop Dary Kraje is situated near the centre, shop Z Dědiny is located in a market hall and shop U Zeleného stromu in shopping centre Prior. So from competition´s point of view we can claim that all these shops on the similar level.
There is a different between shop U Zeleného stromu and shops Dary Kraje and Z Dědiny – shop U Zeleného stromu offers healthy products rather while another two shops offer especially quality foods. The advantage could be that shop Dary Kraje doesn´t have in its offer any dietary supplements like shop U Zeleného stromu because these products are not in harmony with the shop´s philosophy. In addition these products are sold in many chemist´s or shops with dietary supplements. | Company | | Dary Kraje | U Zeleného stromu | Z Dědiny | assortment variety | 5 | 3 | 5 | business hours (week, weekend) | 5 | 3 | 4.I | shop equipment | | | | location | 4 | 4 | 4 | websites | 3 | 3 | 5 | e shop | 0 | 0 | 0 | prices | | | |

external market environment
Economic
Current economic situation
Being one of the first reformers in Central Europe, the Czech Republic showed the way in the 90’s by adopting bold programs of stabilization, liberalization and privatization. The application of EU’s rules and regulations also helped to improve the business environment and to attract foreign investors.
Tendencies
The Czech economy was hit by the economic crisis by the end of 2008, but the development went back on the rails in the second semester of 2009, and the slight economic growth of the Czech Republic began. The positive evolution carried on in 2010. According to estimations, the GDP increased by 2,2% in 2010 and by 2,0 in 2011.
The current strategy of euro adoption
The Czech economy progressively lowers the gap between the economical levels of the euro zone since the adoption of the initial strategy in 2003; but the development was influenced by the financial crisis and the global economy which consequence is recession and the deterioration of public finances. Czech experts believe the situation is non-favorable to the adoption of Euro. Some criteria to the adoption of the European money are already met but some others are not on satisfying levels for now. The main obstacle to the adoption is the non-consolidation of the public finances.
To get rid of this obstacle, the Czech government took the following decisions: * Reform the public finances in order to stop the public debt’s growth. * Reform the retirement system * Improve the quality and effectiveness of the public district * Transparency of the public orders * Lower the administrative charges of entrepreneurs.(contractor ?)
MAIN MACRO-ECONOMICS INDICATORS Indicators | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | GNP (stable prices 2000, %) | 6.3 | 6.8 | 6.1 | 2.5 | -4.1 | 2.0 | GNP per inhabitant (EU-27) | 17 100 | 18 200 | 19 900 | 20 100 | 18 900 | 19 400 | Gross foreigndebt (% GNP) | 38.3 | 37.0 | 38.9 | 43.6 | 43.8 | 44 | Interest rate (long term) | 3.51 | 3.78 | 4.28 | 4.55 | 4.67 | 3.7 | Balance of trade (% GNP) | 2.0 | 2.0 | 3.4 | 2.8 | 5.0 | 5.1 | Average inflation rate (%) | 1.9 | 2.5 | 2.8 | 6.3 | 1.0 | 1.5 | Workefficiency (previousyear = 100) | 105.0 | 105.4 | 104.1 | 100.8 | 97.2 | 103.4 | Averageunemployement (thousands) | 514.3 | 474.8 | 392.8 | 230 | 352 | 390 | Averageunemployement rate (%) | 8.97 | 8.13 | 6.62 | 4.4 | 6.6 | 7.4 | Average gross nominal wages (previous year = 100) | 105.3 | 106.4 | 107.3 | 108.3 | 103.5 | 102.4 | Average gross real wages (previous year= 100) | 103.3 | 103.8 | 104.4 | 101.8 | 102.4 | 99.0 | Average gross nominal wagesper month (CZK) | 18 992 | 20 207 | 21 687 | 22 691 | 23 488 | 24 100 | Average gross nominal wages per month (USD) | 793 | 893 | 1068 | 1332 | 1232 | 1249 | Average gross nominal wages per month (EUR) | 638 | 713 | 781 | 910 | 888 | 953 | Change rate CZK/USD (Average) | 23.95 | 22.61 | 20.31 | 17.03 | 19.06 | 19.3 | Change rate CZK/EUR (Average) | 29.78 | 28.34 | 27.76 | 24.94 | 26.45 | 25.3 |

Technological
Meat product processing
Meat consumption in developing countries has been continuously increasing from a modest average annual per capita consumption of 10 kg in the 1960s to 26 kg in 2000 and will reach 37 kg around the year 2030 according to FAO projections. This forecast suggests that in a few decades, developing countries’ consumption of meat will move towards that of developed countries where meat consumption remains stagnant at a high level.
The rising demand for meat in developing countries is mainly a consequence of the fast progression of urbanization and the tendency among city dwellers to spend more on food than the lower income earning rural population. Given this fact, it is interesting that urban diets are, on average, still lower in calories than diets in rural areas. This can be explained by the eating habits urban consumers adopt. If it is affordable to them, urban dwellers will spend more on the higher cost but lower calorie protein foods of animal origin, such as meat, milk, eggs and fish rather than on staple foods of plant origin. In general, however, as soon as consumers’ incomes allow, there is a general trend towards incorporating more animal protein, in particular meat, in the daily diet. Man’s propensity for meat consumption has biological roots. In ancient times meat was clearly preferred; consequently time and physical efforts were invested to obtain it, basically through hunting. This attitude contributed decisively to physical and mental development of humankind. Despite the growing preference in some circles for meatless diets, the majority of us will continue eating meat. It is generally accepted that balanced diets of meat and plant food are most effective for human nutrition.
In terms of global meat production, over the next decade there will be an increase from the current annual production of 267 million tons in 2006 to nearly 320 million tons by 2016. Almost exclusively, developing countries will account for the increase in production of over 50 million tons. This enormous target will be equivalent to the levels of overall meat production in the developing world in the mid-1980s and place an immense challenge on the livestock production systems in developing countries.
The greater demand for meat output will be met by a further shift away from pastoral systems to intensive livestock production systems. As these systems cannot be expanded indefinitely due to limited feed availability and for environmental reasons, other measures must be taken to meet growing meat demand. The only possible alternatives are making better use of the meat resources available and reducing waste of edible livestock parts to a minimum.
This is where meat processing plays a prominent role. It fully utilizes meat resources, including nearly all edible livestock parts for human food consumption. Meat processing, also known as further processing of meat, is the manufacture of meat products from muscle meat, animal fat and certain non-meat additives. Additives are used to enhance product flavour and appearance. They can also be used to increase product volume. For specific meat preparations, animal by-products such as internal organs, skin or blood, are also well suited for meat processing. Meat processing can create different types of product composition that maximizes the use of edible livestock parts and are tasty, attractive and nourishing.
The advantage of meat processing is the integration of certain animal tissues (muscle trimmings, bone scraps, skin parts or certain internal organs which are usually not sold in fresh meat marketing) into the food chain as valuable protein-rich ingredients. Animal blood, for instance, is unfortunately often wasted in developing countries largely due to the absence of hygienic collection and processing methods and also because of socio-cultural restrictions that do not allow consumption of products made of blood. While half of the blood volume of a slaughtered animal remains in the carcass tissues and is eaten with the meat and internal organs, the other half recovered from bleeding represents 5-8 percent of the protein yield of a slaughter animal. In the future, we cannot afford to waste such large amounts of animal protein. Meat processing offers a suitable way to integrate whole blood or separated blood fractions (known as blood plasma) into human diets.
Thus, there are economic, dietary and sensory aspects that make meat processing one of the most valuable mechanisms for adequately supplying animal protein to human populations, as the following explains: * All edible livestock parts that are suitable for processing into meat products are optimally used. In addition to muscle trimmings, connective tissue, organs and blood, this includes casings of animal origin that are used as sausage containers. * Lean meat is one of the most valuable but also most costly foods and may not regularly be affordable to certain population segments. The blending of meat with cheaper plant products through manufacturing can create low-cost products that allow more consumers access to animal protein products. In particular, the most needy, children and young women from low-income groups, can benefit from products with reduced but still valuable animal protein content that supply essential amino acids and also provide vitamins and minerals, in particular iron. * Unlike fresh meat, many processed meat products can be made shelf-stable, which means that they can be kept without refrigeration either as (1) canned heat sterilized products, or (2) fermented and slightly dried products or (3) products where the low level of product moisture and other preserving effects inhibit bacterial growth. Such shelf-stable meat products can conveniently be stored and transported without refrigeration and can serve as the animal protein supply in areas that have no cold chain provision. * Meat processing “adds value” to products. Value-added meat products display specific flavour, taste, colour or texture components, which are different from fresh meat. Such treatments do not make products necessarily cheaper; on the contrary in many cases they become even more expensive than lean meat. But they offer diversity to the meat food sector, providing the combined effect of nutritious food and food with excellent taste.
Processing technology
Meat processing technologies were developed particularly in Europe and Asia. The European technologies obviously were more successful, as they were disseminated and adopted to a considerable extent in other regions of the world – by way of their main creations of burger patties, frankfurter-type sausages and cooked ham. The traditional Asian products, many of them of the fermented type, are still popular in their countries of origin. But Western-style products have gained the upper hand and achieved a higher market share than those traditional products.
In Asia and Africa, there are a number of countries where meat is very popular but the majority of consumers reject processed meat products. This is not because they dislike them but because of socio-cultural reasons that prohibit the consumption of certain livestock species, either pork or beef depending on the region. Because processed products are mostly composed of finely comminuted meat, which makes identifying the animal species rather difficult, or are frequently produced from mixes of meat from different animals, consumers stay away from those products to avoiding eating the wrong thing. But when the demand for meat increases and a regular and cost-effective supply can only be achieved by fully using all edible livestock parts, consumers will need to adjust to processed meat products, at least to those where the animal source can be identified. Younger people already like to eat fast-food products such as beef burgers or beef frankfurters. Outlet chains for such products and other processed meat products will follow when the demand increases.
In meat-product manufacturing, the basic processing technologies, such as cutting and mixing, are accompanied by various additional treatments and procedures, depending on the type and quality of the final product. Such treatments involve curing, seasoning, smoking, filling into casings or rigid containers, vacuum packaging, cooking or canning/sterilization.
Processing technologies for meat products will not deliver satisfactory results if there is no adequate meat hygiene in place. In the interest of food safety and consumer protection, increasingly stringent hygiene measures are required at national and international trade levels. Key issues in this respect are Good Hygienic Practices (GHP) and Hazard Analysis and Critical Control Point Schemes (HACCP) are implemented. Extensive knowledge on hazards that microorganisms cause is indispensable in modern meat processing. For the purpose of consumer protection and the quality control of meat products, simple test methods are provided that can be carried out at the small enterprise level without sophisticated laboratory set-ups. However, some of these procedures have to be understood as screening methods only and cannot supplement specific laboratory control, which may be officially required.
Bakery
Technology in the bakery field
The production of bread, preparing ferments and dough in the field was former carried out with the classical method, adding the ferment, or starter and yeast. Classical bread consists in high rate of rye flour. There is not inoculation with the yeast but with the natural micro flora of the rye flour, which forms so called bread sour. The sour is prepared in few stages (basic, fresh, full). Micro flora consists of two groups: lactic fermentation bacteria and yeasts.
Technology with the rye sour
The sour from the previous production was used or the sour from the civil bakery, or dry ferment. Raw materials were mouldedca 15 minutes, after the short ripening formed, and after shaping in the mould started proofing. After the proofing the dough was set in to the oven and baked up 60 minutes. Total time of producing bread was 11-12 hours.
Production bread with shortened technology
Straight dough process technology of the bread with the addition of yeast is used. It consists in mixture and blending all raw materials at the time. The dough was divided, kneaded, and after proofing and maturing baked. Total time of rye wheat bread producing was 4 hours, of wheat rye bread 3 hours and 30 minutes.
Current technology
This is based on the principal of blending all basic components at all; it is rye and wheat flour, addition water and improvers. It is not necessary to have long time fermentation because of yeast. The time of preparing the dough traditionally (without the time of proofing and baking) gives 9 hours (technology with the rye sour), 2 hours and 30 minutes in short technology. Current technology can prepare the dough in 50 minutes. It means only 1/3 of former time. Technology in operation Innovated technology and economy of operation bakery and its products from premixes were tested through portfolio of bakery products. They were classified into four groups: bread and current, whole grain and fine pastry. The new technology preparing dough with modified process with dried oil was used. Typical Czech wheat-rye bread with content more than 50% wheat flour could be compared with Danish white bread only or with wheat light bread from local suppliers. Purchase of bread from Danish units was more expensive than purchase of bread and pastry from local supplier. Danish bread (price 7, 74 USD) was 6 times more expensive, than our tested bread produced from mixtures. Local Kosovo bread (price 0, 42 USD) was nearly 3 times cheaper, but local pastry was more expensive and its price oscillated between 3, 47 - 4, 96 USD per kilogram. Purchased bread is absolutely not comparable with quality of indigenous one needed Czech combatant. There is also a trend that Bakery will apply high-teach media such as: internet, tablet and applications for their operation process. Many bakery owners are adapting to today’s digital world by incorporating technology into both the front and back of the house.The bakery replaced its print cake catalogs with five iPads equipped with photo galleries that contain the bakery’s most current cake designs along with pricing information. Customers can browse designs, search for specific themes or categories and even email photos of their favorite cakes to friends or family members. Moreover, the system tracks inventory, stores formulas and, most importantly, acts as a giant database.
Political and legal Area | Factor | Trend | Impact | Importance (1-5) | Political and legal | Legislation | Labour Code, Trademark Law, Law on VAT, Accounting Act etc. | Changes in legislation impact on some firm activities. The impact could be positive or negative. | 4 | | Standards | ČSN Standards, EU Standards | Company must in its activities comply with many standards which can bring higher costs. | 4 | | Tax policy | Rate of excise tax, VAT, income tax etc. | Increasing the rates of these taxes have impact on prices and probably on decline in demand. | 3 | | Government type and stability | Unstable political situatiton and possibility of early elections | This brings apprehensions and uncertainty to the company. | 2 | | Regulation and de-regulation trends | Market planning with a state and EU regulations | Impact on the company through market assessments of demand, supply and price. | 3 |

The previous table shows us that legislation and standards have the greatest influence on the company. Legislation changes could have negative or positive impact. Standards usually have negative impact related to increasing costs. Various forms of taxes also have an important influence on the company because increasing rates of taxes cause price increases, decline in demand and decline in sales. Market planning and regulations could have both positive and negative impact. The positive influence on the company is showing in through market assessments of demand, supply and price. Regulations represent especially negative impact. Unstable political situation also influences the company but has only little effect.
Cultural and social
In the first half of the 1990s, the Czech economy was transformed from a centrally planned economy to an essentially privatized, market-oriented economy. Small businesses nationalized during the 1950s by the communist regime were returned to the rightful owners or their heirs; small businesses created during the socialist period were auctioned off to employees or outsiders. Large enterprises were privatized through the sale of vouchers to citizens over 18 years of age, who then became shareholders. Some of the heavy industries and banks still owned by the state may be privatized in the future. For basic needs, particularly temperate-zone food products, Czech society is self-sufficient, but it imports oil and gas. Tenure and Property
The Czech Republic has long been highly developed industrially. The leading industries include the manufacture of machinery, automobiles, chemicals, refined petroleum products, fertilizers, cement, iron and steel, glass, textiles, footwear, and beer. Many industrial enterprises have been undergoing restructuring to catch up with those in the West. After an initial decline in aggregate output in 1990, modest growth resumed in 1994.
Under communism, agriculture was almost completely collectivized. Postcommunist privatization did not result in a return to small-scale private farming because agricultural workers prefer to be shareholders in privatized cooperatives. The collectivization of the 1950s resulted in rapid mechanization of agricultural work, which is now the most advanced in central and eastern Europe.
Under communism, industry was the priority sector and service-oriented industries were neglected; heavy industry's share of output was larger than that in developed capitalist economies. The neglect of services gave rise to a so-called second economy in which services were obtained by barter or by paying someone on a private basis. In the 1990s, service industries began to grow rapidly.
A consequence of the communist regime's stress on industrial production without proper safeguards against polluting the environment was ecological devastation of certain regions, especially in northern Bohemia (in and around the city of Most) and northern Moravia (the city of Ostrava).
The Czech economy is highly dependent on foreign trade. The republic imports mainly from the same countries it exports to: Germany, Slovakia, the United States, Austria, Italy, and Russia. Exports consist primarily of manufactured goods, machinery and transport equipment (including automobiles), and chemicals; imports include goods of those types as well as fuels and lubricants. The Czech economy runs a large trade deficit with Russia, importing energy and raw materials but exporting relatively little. Because the Czech crown is now freely convertible, there is practically no limit to what can be purchased by those who have the funds.
Under the communist regime after World War II, the economic status of manual workers rose and that of highly specialized people declined steeply.A new elite consisted of the most active members of the Communist Party. They enjoyed numerous privileges, such as large apartments, access to special hospitals, special stores with merchandise not available to others, and for those in high government positions, state automobiles with chauffeurs.
This political elitism ended after 1989. Successful businesspeople now have visible wealth: luxury cars, expensive villas, and maids and chauffeurs. By contrast, older people complain that their pensions do not keep pace with the cost of living.
Social interaction is not much different from that in other central European countries; compared to that in the United States, it is rather formal.
The tendency toward formal behavior is strengthened by the tradition of using titles. The use of someone's first name is limited to older family members addressing younger ones and to very good friends. It usually takes daily contact over a number of years before people are on a first-name basis. Much less informal contact reinforces the social distance between people. Because Czech apartments are small, invitations to visit and casual dropping by occur only among good friends.
SWOT analysis Strengths | Weaknesses | * trustworthy relationship with customers * wide range of assortment * fresh, bio, homemade, high-quality products * good relations with suppliers * basement (space for future activities) | * look of the shop * bad location (city centre) * no websites * no e-shop * higher prices * the shop is not visible enough / bad front store * requires lots of logistics | Opportunities | Threats | * low quality products in supermarkets * higher demand for quality products * changes in customers behaviour (willingness to pay more money for quality products) * bank loan | * new competitor in Zlin * customers prefer price instead of quality * rent increase * rising taxes * lower pp of our customers * many fast-food franchises in Zlin |

The SWOT analysis shows us that among the most important company strengths belong high-quality products and good relationships with customers. Main weaknesses contain lack of websites and look of the shop. The important opportunity for Dary Kraje could be the unused space in basement which could be used to future activities. On the other hand the main threat represents behaviour of customers who prefer price before quality. marketing plan objectives
Strategic thrust – marketing advantage (supporting the local farmers, deepening the patriotism in people, being No 1 among competitors, pushing on the quality of food products in the region)

Strategic objectives – connected to the communication mix, new marketing approach: * internal area – more attractive look, usage of basement * external area – how we can communicate with customers, how to attract new customers, how can we be better than our competitors

Core strategy
Target market

Competitive advantage

Marketing strategy
Product

Price

Place

Promotion

communication mix

implementation and control
Problems to overcome

Control

Budget

Timing of implementation activities

Contingency plans

conclusion