Business Planning in Relation to Selling Cognacs and Cigars - Case Study Example

Introduction Strategy for success instabilities and dangers in planning and program in any business association is a various leveled practice that is worth seeing in a dynamic, reasonable business. Therefore, the administration, control and the responsibility of any business exercises are guided towards logistic component of item profit and gainfulness (Kurtz & Boone, 2009). Overseeing of business vulnerabilities and dangers benefits as an issue point in items supply and request through the interconnection of a coordinated interest chain and store network for a superior business execution (Pride & Ferrell, 2011). In basic terms, as the organization moves the business sector ideas, structure, and settings, the items life cycle is shorter in connection to an increment in business unpredictability. When all is said in done, the dealing with the business dangers and instabilities in business arranging and planning depends on the exploratory administration display in the endeavor accomplishment as per Grunig (2011). Analysis presented in this paper is helpful in understanding the concept of business Planning in relation to selling expensive cognacs and cigars. On a broad analysis, the consumers of the cognacs and cigar products are analyzed for the reasons of consumptions revealed (Katz, 2014). From a different point of view, the marketing environment as well as market structure of the cigar and the cognacs products. Thus, the competitive advantage of buying, selling and market competition is also analyzed. On a broad aspect, the entrepreneurs and the industries offering the products and services are examined individually in relation to their market commanding power and capacities (Kurtz & Boone, 2009). Lastly, the financial projections of the primary business costs, market promotion or marketing patterns, and the products management maps are analyzed. The products sold and the target markets The cognacs and cigar products are the flavored tobacco goods and cigars that the consumers have a wide range options to choose from various alternatives. For example, the flavored to tobacco papers, sodas, Vanilla and Swisher Cigarillos and the strawberry and the tobacco flavored Swisher Sweets are the products sold by the House of Oxford industry distributors (Gage, 2007). The flavored cognacs and cigar products target the young consumers who might intend to experience different tests from the cigar products (Pride & Ferrell, 2011). In addition, the flavored cigar products target potential cigarette smokers as well as cigarette smokers who seek different tastes, aromas and exploration of the new tobacco products. The products are distributed, promoted and sold to their consumers/customers because they have a wide range chose or options to choose from the tobacco products (Kurtz & Boone, 2009). In addition, the products sold have different tests, aroma and flavors that can be incorporated into other products rather than cigar and cognacs products. The market structure (buyers, suppliers, and competitors) Analysis of the marketing structure portrays the buyers, sellers and the competitors at a higher level. For example, the flavored products are distributed through the tobacco retailers and stores successfully through identification of potential customers/consumers in the market setting that can use tobacco products (Ferrell & Hartline, 2008). The manufacturers, producers and retailers that handle tobacco products as well as other products that can incorporate with tobacco-flavored aromas for efficient distribution analyze the flavored cigar and cognacs product life cycle. Menthol and fruits flavored products in the market structure remain the main competitors of the cigar and the cognacs products (Katz, 2014). For example, customers or potential consumers of the tobacco-flavored products may find it health wise to explore for products that are non-additive but with similar tastes. Goods and services offered by the tobacco flavored products suppliers The services provided by the cigar and cognacs products are technical products consumption services as well as all messages related to their products. In addition, the marketing mix services that include the products details such as blending, the prices of the flavored products and the offers are provide (Pride & Ferrell, 2011). On a similar account, the promotion services such product consumption demonstrations, use issues, and challenges are provided (Gage, 2007). On a different point of view, services related to places where the products can be accessed are provided to ensure the laws of demand and supply are regulated by the state of balance. The products offered by the retailer's manufacturers and the producers of the tobacco flavored products include tobacco papers, sodas, Vanilla and Swisher Cigarillos and the strawberry and the tobacco flavored Swisher Sweets among others (Katz, 2014). Flavored goods and services promotion, marketing and distribution The flavored cigar and cognacs products are promoted, marketed and distributed in the market in order to reach both the reliable and potential customers through a number of ways. First, the products reach their loyal and prospective customers through the available supply and demand distribution channels from the producers, retailers and finally to the consumers (Ferrell & Hartline, 2008). Secondly, the goods and services reach the target market through the utilization of the available promotion services such as the social media so that there can be attention from the public about the nature of the products offered. At some points, the suppliers of the flavored products can deliver the products to the household of the potential customers for demonstration of uses as well as solving any issues that may be related to the products (Pride & Ferrell, 2011). Uncertainties and risks that affect the cigar and cognacs goods and services marketing Uncertainties and risks associated with sales of the flavored products range from the market risks, business related risks, financing related risks. In addition, the risks related to the over-concentration of particular flavored products hindering innovation and development of the new products (Kurtz & Boone, 2009). In simple terms, the risks related to unforeseen market changes and static market demand for the products affecting the sales of the products. Changes associated with change of the customer's preferences and tastes can affect the sales of the cigar and cognacs products sales. Market risks on pricing products and quantification to meet the client’s tastes and preferences that promote sales according to Gage (2007). Business-related risks that affect the sales of the products such as visibility of the products in the market, products accessibility, sales operation rights and other uncertainties can affect the business sales. In addition, the financial risks such as payment delays on the sales of products, increased risks of credit losses on sales. Interest rates and taxes can affect the sales of flavored products in the market structure (Pride & Ferrell, 2011). Sales uncertainties and risks management strategies Sales uncertainties and risks can be managed strategically by adapting dynamic changes that monitor the causes of various uncertainties and risks in order of developing mechanisms for solving the risks. For example, operational and financial risks or uncertainties of sales can be resolved by evaluating the customers’ economic trends, distribution structures that suit the sales and earnings effectively (Ferrell & Hartline, 2008). On operational risks that affect the sales can be restricted in a way that allow low costs of the products that are customers friendly. Financial uncertainties on sales can be controlled by formulating economic policies that regulate interest rates on the flavored products, credit risks as well as control mechanisms that take into account of the net sales (Pride & Ferrell, 2011). Payment delays and credits of the products can be controlled by developing mechanisms that promotes early payment and reduced credits of the flavored cigar and cognacs products (Gage, 2007). Risks associated with change in the customers’ preferences can be controlled by developing plans that uncover unforeseen market changing maintaining the products sales at equilibrium (Ferrell & Hartline, 2008). Sales processing map and management Sales mapping and treatment as art and science align the sales of products and services in a way that meet the customers’ needs as well as maintaining the sales momentum and increased market shares. Thus, the sales mapping process focus on the sellers’ activities rather than the customers activities. The strategies in sales implementation ensure maximized sales strategies that map the entire sale process from the initial customers’ inquiry orders, sales channels to the distributors (Katz, 2014). The sales tools and systems are designed to support the sales information flow of ordering, quoting and maintain the customers’ services within the sales marketing. Sales process transformation can be established by measuring the accuracy, profit margins and the customers’ satisfaction in which the sales reach the target market (Pride & Ferrell, 2011). The sales process mapping enables the recasting of sales process between the clients and sellers by demonstrating the solutions that are needed by the sellers in proposing, quantifying and generation of demand of tobacco flavored products with aims of optimizing sales (Ferrell & Hartline, 2008). Thus, the sales mapping process involves four steps that include; demand generation through market research of the cigar and cognacs flavored products, conducts of sales training and defining sales quantification criteria (Pride & Ferrell, 2011). Qualifying stage involves sales investigations, planning and identifying opportunities that can lead to new market for the flavored products. In the proposing process, the customers’ needs that favor the flavored products, pricing and recommendations are analyzed. Lastly, delivering stage of sales is the last phase that implements and finalizes all the activities and contracts that involve the flavored products and services sales (Katz, 2014). The flavored products and sales promotion The customer’s loyalty and support can be achieved by marking deliveries at their point of convenience. For example, the use of social media in product promotion guides the potential and reliable customers to places and location to find the flavored products and services increasing the rate and speed of sales (Ferrell & Hartline, 2008). A well-planned distribution channels can ensure the products reach the customers or consumers either at the households using the local retailers or other distribution channels such as the products or manufacturers of a particular product (Kurtz & Boone, 2009). Alternatively, brand marketers that promote the products can reach the target market at a zero moment of purchase through collective campaigns. The sellers followed by designing a brand that meet their interests (Pride & Ferrell, 2011) can identify customer’s needs and prospects. For example, potential smokers especially the youths can be identified through the social media and the products designed to reach where they operatives such as relaxation places and clubs (Ferrell & Hartline, 2008). Direct selling and personal selling is also implemented to increase sales in remote areas accessibility of the flavored products is limited to the potential and reliable customers. Financial projects after managing the sales uncertainties and risks The financial projections mark the primary business cost amount to £6000000 after managing all the uncertainties and related risks associated with the products sale. The major capital sales needed comes from the total sales generated all related goods and the cost of equipments used in sales distribution, product processing, and promotion (Katz, 2014). In operating cost expenditures the anticipated changes competitive environment, change of the marketing structures and transactions at any operational breakpoint form part of expenditures. Personnel costs such as those achieved by training markets, hiring and recruiting sellers are included in the financial projection of the tobacco-flavored products (Ferrell & Hartline, 2008). For example, the office financial projection amounts to £25000 a third of the equipment and advertising cost within one month. The economic indicators are the costs of goods sold, commercial rates, account receivable rates, and taxation, which range from 70%, 5%, 30% and 7% respectively. Conclusion The stogie and cognacs enhanced items deals and marketing can progressively be attained through an aggregate deal. Overseeing of the vulnerabilities and dangers through understanding the items mapping and deals procedure is truly key. Therefore, understanding the stogie seasoned items advertising blend, for example, estimating, items data, and item advancement serves as an issue indicating in expanding benefit and productivity of items in connection to the business structure. On a comparative perspective, preference of the stogie items is worth seeing in evaluating change in the business structures. Furthermore, budgetary projections lessen the dangers and vulnerabilities connected with the change of the business sector environment. Then again, the business sector structure call attention to who are the purchasers, merchants and contenders of the enhanced items empowering the stogie and the cognacs seasoned item industry to plan and brand items that addresses the clients/buyers' requirements. Moreover, recognizing different deals and promoting instabilities and dangers that influences the items empowers improvement of suitable systems that aids the items merchants to arrange viable methods for dispensing with the developing vulnerabilities and dangers. References Ferrell, O. C., & Hartline, M. D. (2008). Marketing strategy. Mason, OH, Thomson South-Western. Gage, T. (2007). The complete idiot's guide to cigars. New York, N.Y., Alpha Grunig, R., & Kuhn, R. (2011). Process-based strategic planning. Heidelberg, Springer. Katz, S. E. (2014). Wild fermentation the flavor, nutrition, and craft of live-culture foods. Kurtz, D. L., & Boone, L. E. (2009). Contemporary business. Mason, OH, South-Western Cengage Learning. Pride, W. M., & Ferrell, O. C. (2011). Foundations of marketing. Mason, OH, South Western Cengage Learning. Read More