Company G's Marketing Plan - Essay Example

? Introduction:  Company G is a well-established firm that is highly regarded in the electronics market. Its  mission ment is as follows:  “We enable consumers to improve the quality and convenience of their lives by providing  high-quality, innovative electronic solutions.”  Company G’s engineers and designers have developed a line of small appliances that the  company feels can be very successful in the small-appliance market. The company feels  that the current marketing plan for its products does not put them in a position to reach the  profit potential for the small appliances.  Success with the new line will depend upon an accurate assessment of the market and a  well-crafted, effectively implemented marketing plan that will fit in the current market.  As the marketing manager, you are charged with the responsibility of developing a new  marketing plan that will enable the company to reach the full profit potential of one small  appliance from the new product line.  The president has suggested that you use the “clean sheet of paper” concept as you develop  the plan; therefore, during the time you are creating the new plan, all details of the  company’s existing electronics marketing plan are to be considered irrelevant. The intent is  that current strategies, practices, etc., will be considered for relevance and possible  continuance only after your new plan has been presented to and is understood by top  management.  Given:  Company G’s team of engineers and designers have developed a line of top-quality small  appliances, and through concept and prototype testing, they have shown that the visual  design features are very appealing to potential buyers and give a distinct impression  associated with quality and artistic elegance. Extensive testing has demonstrated that the  new products may be the most reliable line of products in the small-appliance industry.  Additionally, the team has designed a production process that is very efficient in terms of  labor and production-line time and that will result in very little raw materials waste. The  combination of these efficiencies and the relatively small front-end investment for this line  will result in the company’s ability to produce each of the products in the line at a cost that  should enable them to emerge as the lowest-cost producer in the small-appliance industry.  Company G has a low debt-to-equity ratio and a high credit rating. It enjoys excellent  relationships with current suppliers, but because of differences in material requirements,  new raw material suppliers will be needed to support the small appliance line. Company G  will also need new suppliers for two component parts that will be purchased ready for  assembly into some of the small appliances.  The credit terms Company G offers to intermediaries in their distribution channel are typical  for their industry. Marketing research has shown that the company’s XG brand and logo are  readily recognized by most categories of electronics product consumers.  Abstract In the modern environment of commerce, companies must understand the purpose of gaining the technology leverage that is lacked from their competitors. In this particular work, a company known as “Company G’s” marketing plan will be developed in order to ensure its supremacy in the market. Creating a market plan would allow the company to understand the risks and explore any opportunities that are available. As society progresses to 21st century, the fierce competition that looms in commerce as dramatically been enhanced. In this particular situation, Company G’s mission statement is “We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions.”  This same philosophy applies in their product line. Providing superior quality products is the focal point for this organization as it strives to enhance research and development. The revenue that companies accumulate is funded to develop top-quality products that continue to amaze customers. At Company G, the core opportunity lies around creating the best products to accommodate customers. With its engineers on renovation, Company G can gain the leverage and technological edge. B. Marketing Objectives  1. Describe the target market for the company’s product.  The target market in this recessive environment continues to be a huge issue as Company G strives for penetrating the market. The first target market for the company should be all females from age 25-60. Conducive research indicates that females that are single tend to buy small appliances. Moreover, recent college graduates who are females are also very keen in picking appliances. The second primary market that the company targeted is married couples. In the American tradition, most young couples want to pursue their own version of the American dream, which starts out by buying a house. Clearly, a house needs new appliances and Company G definitely accommodates to that criteria. 2. Select four marketing objectives for Company G consisting of one objective for each  of the four marketing strategies (product, distribution, price, and promotion).  Product: Since the company offers the top-quality products, it is essential to understand the components of attracting these features to the customers. It is critical that the company appeals to the customers by depicting its features. For instance, one of the key features of the product itself is that its very portable. Another feature that the company should exploit is the fact that all the appliances save energy compared to the leading brand. The first tool would be to use consumer promotion tools such as samples, coupons, cash that would appease the customer. The second tool would be to develop a sales promotion program within employees. The third element would be to offer the appliances with another device such as free laptop, cell phone, etc. Distribution/Place: One of the great attributes of the 21st century is the fact that e-commerce has blossomed. Thus, it is advisable for the company to penetrate the internet business by selling the products through the e-procurement websites. The products will be sold also on the prospective retailer’s websites that sell the company’s products. Although targeting the online market is crucial, the key marketing strategy will be to exploit through brick and mortar stores. Conducive research indicates that the majority of the consumers tend to purchase their products through brick and mortar stores. Many customers feel that they understand the product better if they are able to compare it against other products. Hence, the strategy will be to place these products on retailers such as Lowes, IKEA, and Home Depot. The first unique element is to promote the product on Facebook by encouraging customers to like the page. The second element would be to start a blog in the website that would attract consumers through positive feedback. Lastly, put the product on independent retailers such as Amazon to attract individuals,. The third element of the marketing strategy is price. It is essential that these appliances must be affordable. Since consumers tend to compare prices and features, it is crucial that prices are affordable but at the same time allow the company to make revenue. In addition, the company must understand what the market dictates. The last element towards exploiting the marketing strategy is promotion. Promoting a product is essential towards its success for various reasons. First and foremost, marketing can attract customers towards creating a special value for the brand. In this competitive environment, brand equity is a huge focal point that the company must concentrate on. From the website standpoint, the company should bombard its customers about sales and new appliances that are introduced. In essence, it is critical that the primary point of promotion should start by online penetration. This could consist of sending newsletters to customers, promoting the brand on social media, and using Google advertisements. The second critical key towards promoting the brand is through word-of-mouth. Appeasing the quality of the brand will not be rejuvenated unless the brand is solidified. Hence, word-of-mouth will be a critical component towards achieving promotion. The first crucial point of price would be to cost it low through rebates. The second element would be to go global and sell it in different market places like China in which appliances are hot. The thirst element would be to enact high-low pricing. The fourth element promotion would consist of selling it in brick and mortar stores with demos and external selling. The second way to achieve it is promoting the product by telling individuals to sign up for a newsletter and catalogues. Lastly, offering retailers 20% revenue of pushing the product through the external chain. C. Competitive Situation Analysis  1. Classify Company G’s products using the three-way consumer product classification  system.  The three way of classification system consists of three components which are: convenience, shopping and specialty groups. Convenience for customers is prevalent as Company G offers the products from so many channels. Company G products are unique and are considered to be a specialty because of the technological features along with the aesthetic qualities attached to them. This makes the product very appealing to customers. The second element of three-way consumer product classification consists of shopping. For customers, shopping again can be conducted almost in any manner possible. With the advent of technology, that has proved to be sufficient as customers can browse products online, compare prices, read reviews, and purchase it in store. Customers can buy products from their device through retailers, the website itself, or browse through nearest brick and mortar store to physically see the product. The last focal point of product classification is comprised of specialty goods and services. In marketing, special goods have become a huge component of three-way consumer product classification. Special goods and services are associated as warranty can be purchased with these appliances. 2. Analyze Company G’s competitive environment utilizing Porter’s Five Forces model of  competitive forces.  Porter’s five sources consists of many factors that can dictate the direction of the company. The first threat is threat of new competition. Truly, in this market, the competition is extremely stiff and hence competition is extremely high. The second element of porter is Threat of substitute or power. The Threat of substitutes are also prevalent in this industry as brands such as Philips and GE continue to make the impact on the industry. Bargaining power of customers, the third element of the porter’s five sources indicates that customers do not possess the power to dictate the market. In essence, the customers can not name the price because they cannot control the factors such as supply costs, labor cost and cost of raw materials. The fourth element that is crucial to the porter’s five forces is threat of suppliers. In this instance, the power lies with suppliers, who can eliminate the middleman such as Company G. This can pose as a problem for the company itself. Lastly, intensity of competition is fierce because new companies continue to enter a new line in the product. Moreover, the idea of out sourcing continues to add the “fuel to the fire.” D. SWOT Analysis  Strengths: Conducting a SWOT analysis was crucial because it allowed the company to have a further insight about the company. Strengths: Company G has a solid product line because of the technological advantage which makes it superior compared to its competitors. In addition, Company G’s products are attractive to its customer because of its market base. In addition to the technical factor, the company has amazing ability to appeal to its customers because of the distinctive and artistic elegance in its products. Moreover, the products are durable and possess great quality as they are tested extensively on a timely basis. The company does have weaknesses though as it is fairly new in the market, which does not allow it to make a strong market presence in the market. Moreover, the company has a long-term debt which is accrued quickly at a rapid manner. The company does have several opportunities to penetrate the market in several ways. The Company can penetrate different channels of marketing its brand through constant technological avenues. With the advent of cloud computing, the company can really solidify its brand through the e-procurement process. Moreover, the company can lobby for tax breaks as a company for energy-saving rebates. The threats that exists within the company is the constant competition that looms in this industry. Moreover, the recessive environment has served as a huge barrier for the company to thrive. One of the main threats that continues to plague the company is the raw materials waste. If the companies continues to be inefficient, it can detrimentally impact the production. Although the company has low-debt- to-equity ratio, it must compete with lowest-cost producer in all aspects. 1. Describe three of Company G’s strengths related to the marketing of the new  product.  a. Support your choice of each of these elements as strengths.  b. Identify at least two strengths that should be considered as core competencies.  The strength of the company undoubtedly is the technology and renovation. The company makes energy saving appliances that are top-quality which serves as the root of their strength. No other company offers this product with amazing technology along with aesthetic quality that this company provides. The second element that serves as the strength is the low-credit that it enjoys and allows it thrive against competition. This has enabled the company to fuel its desire on the customer base without worrying about financial woes that can plague the company 2. Describe three areas where Company G has weaknesses related to the marketing of  the new product.  The company is fairly new to the market and has not really proven itself against competition, which poses a risk for the company. The second core element is the recessive environment that is plaguing the globe. Since purchasing power can be diminished, it will be interesting to see how consumers react to the prices of the appliances. Moreover, the e-commerce competition has stiffened with generic brands internationally that Company G must adhere to. E. Marketing Strategies  1. Describe three strategies for each element of the market mix (product, distribution,  price, and promotion) that are appropriate for the target market. Strategies should  be consistent with each other and supportive of the related objective.  Strategies for achieving the 4 P’s must be done in a feasible manner. All products must look appealing and very urban that wants consumers to buy the product. Distribution consists of keeping a smooth flow of logistics throughout the life cycle. Retailer should be able to track logistics and create a sound system of supply chain management with the help of customer relationship management program. Moreover, the advent of CRM should be the focal point here trying to achieve a more productive supply chain logistics. The aerodynamic styling of the product is the focal point and that form should follow the function. In order to appeal to the new style, the product must add a superior value to the customers. This should be conducted by advertising and promoting “welcome to someday” campaign in which “technology of the future” is depicted through brochures and adversities. The Pricing strategy was a major issue that has faced the management of Company G for many elements Since products and services were sold during off-peak times compared to business hours, it hurt their segment cash flow. In order to combat this, the company must enact segment targeting. Creating a price range for all age demographics can engage the company in long-term. The second element to compete for price is to give membership services to customers that can allow customers to buy certain quantity of products from their membership. Lastly, reducing variable costs compared to fixed costs can tremendously facilitate the company. Price must be affordable and must be dictated by market. The company must compete with other companies to attract its consumers. Since competition will be tough, adding services with products should be conducted. Price should be consistent everywhere from retail to online procurement. Lastly, promotion should be conducted aggressively through brick and mortar advertising along with the usage of social media. Facebook should be extensively pursue to attract consumers to expose the market base. In addition, creating radio along with television advertisements should be the main objective to exploit the market. Creating a strong market brand equity through blogs and feedback can be pivotal. Lastly, place should be centered around brick and mortar retailers. The product should be in high-end of the stock and should catch the attention of consumers within aisles of retail. Moreover, features should be specifically adhere to the product so that it catches the eye of the consumer. Moreover, place in the online market can emphasize the product and place really well. Creating a homier atmosphere of the products is an element that customers would love. Company G must make an effort to gain the competitive edge in retail because it can boost morale of the company. Lastly, the company should penetrate the e-commerce business by adding the products on suppliers such as EBay and their own website. 2. Explain why you feel this is the best mix to achieve the objectives.  F. Tactics and Action Plan  1. Develop an action plan for implementing the marketing strategies identified.  a. Include one task for each strategy identified.  In order to implement the marketing strategies, it is crucial to develop a tactic and action plan. The tactical plan would be to aggressively pursue the brick and mortar advertising. Creating a brand value through value preposition is the first and foremost agenda for the company. Moreover, creating a differentiation in brand is huge. Dissolving ambiguities in the product line against competition would suffice. Product differentiations takes place along a continuum. It has to be more than just the physical aspects but should be appealing to the customer. Positioning the brand with attributes, benefits and values would also tremendously help with a strong brand strategy. This would consist of television and radio advertisements. In addition, offering incentives to retailers to place the products is vital. For instance, rewarding Lowe’s with 20% of the product sale can be appealing. Another critical element is aggressive marketing. Since the young generation has the capacity to spend money even on credit, it is highly essential that marketing is executed flawlessly. The concepts of e-marketing have dynamically been modified with the advent of social networking. One of the core principles that have emerged from the innovation of developing a digital communication strategy is to enact a viral marketing scheme. Viral marketing can be achieved in this scenario by depicting the uses of the product in a very unique way and allow the users to use social media to spread the message. Another essential element that can be enacted through social networking is utilizing the “like” page on Facebook. In essence, this can dramatically help optimize exposure in many ways. 2. Create a timeline outlining when each task is to be completed.  Phase 1: Create a marketing plan that is sound and logical. This is the core strategy for marketing, which is phase 1. Phase 2: Penetrate the e-commerce website. This is where the product placement occurs of the marketing mix. Phase 3: Propose the plan to stakeholders, create a proposal solicitation. This is unique because it allows the company to understand the distribution for the product. Phase 4: Propose the plan to retailers, choose suppliers who want to place their product on retail. A foundation of building a solid distribution line. Phase 5 Ship products to the retailers and offer them rebates. This is the phase for promoting the idea through marketing price. Phase 6: Distribution: Manage demand and supply chains. Creating a CRM value for the product itself is part of the core competencies of the product. Phase 7: Promotion: communication the value preposition and research customers. A huge element of propagating the product by giving coupons and distributing brand awareness. Phase 8: Introduce the product globally, a unique element of distribution mix. Phase 9: Increase share of market and share of customers. Targeting the customer is part of the product value itself. Phase 10: Capture customer lifetime value, which is the product itself. Without penetrating the market base, the product does not have any values to its features. Phase 11: Review the marketing plan through auditing. This is crucial to modify the promoting mix itself of e-marketing. Phase 12: Implement the necessary changes. Conduct an order-routine specification, understand the logistics of the business. Without distribution of retailers, the product would suffer. Hence, this is part of the distribution process. Phase 12: Analyze the project lifecycle and conduct a performance review. Enact controls for budget. Penetrate the market through consistent promotion of the product, which is the core foundation of promotion. G. Monitoring Procedures  1. Describe the specific actions that will be taken to measure the effectiveness of the  plan.  The first step in order to ensure that the Action plan will be executed in the perfect manner is appointing a project manager. The project manager will ensure that the all the phases of the project will be in check. In addition, the PM will serve as a mediator between the retailer and the suppliers. The ultimate goal is not have lag time in any case. Since sales will be a huge focal point, is essential that the company starts its business cycle on the right foot. Moreover, marketing performance measures should be defined and measured by profit-loss statement. If sales are not increasing by 5%, the project timeline must be revised. Action program: The company G appliances will be introduced in February. Following are the summaries of the action plan that will be enacted. First and foremost will be enact a $100,00 sales promotion campaign to educated retailers about the appliances. These will be exhibited at the major consumer appliances and electronics trade shows, web blogs, and provide samples of the product itself. Celebrities will endorse the product in major retail chains especially athletes. The training staff will work with sales personnel at major retail chains to describe the benefits of the products. February: The company will start an integrated internet campaign that will targeting professionals. It will depict the functions of the product in many forms. March: As the multimedia campaign flourishes, consumer sales promotion will be enacted giving merits to retailers. Consumers can also buy free service packages. April; The company will hold trade sales contest offering prizes for sales and retail employees which sells the most products. May: Roll out the new traditional advertising campaign for the month. The radio ads will feature celebrity personalities telling about the uniqueness about the product. June: Radio campaign will add a new voice-over tag line promoting the product as a graduation gift. It will also exhibit at the semiannual electronics trade show and provide channel partners with new competitive comparison handouts as a sales aid. Without a doubt, Company G must execute the marketing plan in order to reap revenues. Penetrating the target market should be the first priority for Company G as it strives to accumulate revenue. With Company G’s top-quality products, retailers would not hesitate to display this to their customers. This would establish brand reputation, which could cultivate the growth for the company itself. If Company G is able to execute this plan, it can potentially find channels for success. Feedback of the consumers about the product will be the first benchmark. This would ensure that the organization understands the market base. The second tool used to monitor results is to see increase in sales by 6%. This is because conducive research indicates that sales around 5% that the project was successful. Lastly, the success of e-commerce through Google clicks should indicate the health of the company along with the stock price. Works Cited Kotler, P., & Armstrong, G. (1991).Principles of marketing (5th ed.). Englewood Cliffs, N.J.: Prentice Hall Evans, J. R., & Berman, B. (1982).Marketing. New York: Macmillan. Read More