Marketing Plan for Product Line - Essay Example

? Marketing A. Product Support of Mission ment The mission ment of Company G is: we enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions. The product line of Company G is small electronic appliances. It is by creating a marketing plan for the mobile phone that Company G uses as a tool to securing itself a position to reach the profit potential for the small appliances. The target market will be the young adults, most of which will be engaged in various business operations or day to day communication with their relations. 1. How the Selected Small Appliance Supports Company G’s Mission Statement The small appliance supports Company G’s mission statement in several ways. In the first place, the appliances are made using very few materials and little energy. This will boil down to decreased cost of production, and eventually, helping clients purchase them at affordable rates. Beside the aforementioned advantage which will have clients saving their money, the pleasing visual features of design are also likely to excite the passions and happiness of the clients. This happiness is in fact a central part of client’s lives. B. Marketing Objectives 1. The target market for the company’s product is very broad, given that it incorporates all the areas that have undergone electrification. The veracity behind this postulation is elucidated by the fact that the new product can be used in a domestic setting. Given that America is entirely electrified, the whole of it serves as target market. The rest of the developed world, such as the UK and Europe, can also serve as part of the target market, since globalization has become responsible for many multinationals. Multinationals, in turn, have the entire globe, continent, or a regional block serving as target market. 2. Four Selected Marketing Objectives for Company G and an Objective for Each of the Four Marketing Strategies (Product, Distribution, Price, and Promotion) Marketing objectives refer to the goals that an enterprise may wish to accomplish through marketing efforts. For Company G, they are: reaching the desired profit potential for the newly innovated small appliance; helping the appliance fit into the market effectively (introducing the brand to the market successfully); ensuring continuance of use by the market (fostering the demand of the product in the market); and improving the living standard of the market (by making the appliance as helpful, efficient, affordable and physically appealing as possible). The objectives that Company G is intent on using are also four. The company is aiming at making favorable amounts of profit by tinkering with scientific innovation to deflate the cost of production. Secondly, Company G intends to introduce the brand to the market by making it as unique (helpful, efficient, affordable and aesthetically appealing) as possible. Similarly, the company intends to foster the demand for the same product in the market by promoting it, as a way of making both potential and prospective clients aware of the availability of the product in the market. Finally, by strengthening the attributes of the appliance, especially its affordability and efficiency, the company will have improved the living standards in the market. C. Competitive Situation Analysis 1. Classifying Company G’s Products Using the Three-Way Consumer Product Classification System (a) Convenience goods: the product will always be presented in the market as a commodity from which the likely benefit from establishing cost and quality evaluation is believed to be less significant in regard to the time and effort of the consumer. (b) Shopping goods: The quality of company G’s product will enable the company to present it in the market to rationally make comparisons of the price, fashion, and suitability. This will be achieved by highlighting these qualities in ads targeted at likely and repeat consumers. (c) Specialty goods: The gadget will have actual, or believed qualities for brand recognition, in order to earn the company immense returns following ads. This will be cultivated through emotional and economic purchasing strategies to woo more consumers and retain old ones. 2. Company G’s Competitive Environment Utilizing Porter’s Five Forces Model Of Competitive Forces Going by Jenkinson’s standpoint (2007), the competitive atmosphere of the market under discussion is favorable, on Porter’s five accounts. First, the number of buyers is bound to increase, given that Company G’s appliance will come at a cheaper rate, since the product was made under lower costs of production. The threat of substitutes is also likely to be kept low by the fact that the appliance has been designed to ensure efficiency, beauty and affordability. This attribute renders the product very unique. The threat of new entrants in the market is also staved off by the brand identity which comes with the new model. The degree of rivalry in the market is also kept in check by the launching the new appliance. This move is to enable Company G to have a strong brand identity. Company G also has diversified its products, while holding fast to high-quality and innovative electronic solutions. The only challenge that Company G has pertains to supplier power. This challenge demands that Company G assembles and defines the roles of all the suppliers for its two component parts (Jenkinson, 2007). D. SWOT Analysis 1. Three of Company G’s strengths which are related to the marketing of the new product are: a high credit rating; low debt-to-equity ratio; innovativeness (can be seen in the newly designed beautiful product); ingenious and committed team of engineers (this team is committed to the company’s goals); and knowledge of the best materials to be used. b. The two strengths that should be considered as core competencies are: competence (as is seen in the ability to model a new appliance); and the ability to adapt to the needs of the market (marketing competence) by making an entirely new market plan. 2. The three areas where Company G has weaknesses related to the marketing of the new product are: inconsistency (as is exemplified by the use of a clean-sheet-of-paper policy); specializing (concentrating on the newly designed appliance can fall face-flat if low sales are registered); and seemingly despotic management (it is the manager who tells the engineers how to carry out the designs, with no signs of consultations being seen). 3. The three current or potential opportunities within the industry are: excellent relationship with the current suppliers (this will make the availing of materials for the two component parts easier); favorable credit terms that the company issues to other companies (this will enable the company access more capital); and the fact that the company’s XG brand and logo are readily recognizable in the market. This familiarity between Company G and the market will enable the company to easily gain a strong foothold in the market. 4. The three current or potential threats within the industry are: competition in the market (it is a fact that there are other organizations dealing in the production of similar electronic equipment, and this is why Company G resorted to making the new appliance as a way of staving off competition); dealing with a relatively new market (the new appliance will have to be introduced into the market, since it lacks public acquaintance); and legislative constraints (being an electric appliance, the new model will have to be registered, issued with an operational manual and guarantee, among other legal implications). E. Marketing Strategies 1. As is already stated, the three strategies for each element of the market mix are product, distribution, price and promotion. They are appropriate for the target market strategies, consistent with one other and totally supportive of the related objective. The mean of distribution should be through outsourcing, in the event that Company G does not have its own full-fledged transport system. In this case, the vending company will be the one taking the new appliance to shopping outlets, at a fee. Secondly, the distribution will have Company G partnering with leading stores which are most populous in order to foster ready absorption of the product into the market. Thirdly, the company is to study the demand in the market, so as to gauge the level of second phase supply to avoid wastage that stems from overproduction. The making of the product, on the other hand, will strictly have to be done by the company’s engineers. This will have the company determine the materials that are to be used in production. The second step will have Company G enlisting the services of supplying companies, as a way of warding off extra expenditure. Important aspects of production, such as management of the supplied resources and remunerating the vending companies, are also to be carefully carried out. The promotion of the new appliance is best done by Company G’s sales and marketing department, but in the event that the company is bereft of this department, it can procure the services of advertising stations and experts. If the latter is true, Company G will have to determine the most appropriate way of advertising and the most appropriate outlets to use for advertising. Considering print or electronic or even both modes of advertising will at this point be thoroughly considered against constructs, such as cost and audience. The third step that Company G will have to take to promote the newly made appliance is market segmentation. At this juncture, Company G will have to study the market and divide it into segments and according to characteristics that will affect demand and supply. Tradition, the extent of the demography being technologically savvy, cultural heritage and beliefs, are some of the elements which will help Company G identify the most accurate part of the market to specifically target. The determination of the price will also strictly have to be left to Company G. the first step will entail, analyzing the cost of production so that the company may break-even. The second tactic will have Company G analyzing the market forces (demand and supply) so as to set prices that will favor profit maximization. Lastly, Company G may have to study the rates being quoted by other companies that make related products, to avoid over quoting or understating the price. 2. This recommendation above is the best mix for achieving the marketing objectives since it is cognizant of the reality that shapes specialization and organizational limitations, while also closely safeguarding the company’s interests and autonomy. For instance, given that Company G is an organization which produces electronics, it is most unlikely that it may have all the departments such as a full-fledged transport system, since these will be mostly considered as extraneous to the core functions. Likewise, the mix gives a large room for autonomy since it leaves important measures such as price determination to Company G. It is Company G that had expended its synergy in production, and as such, it should be the entity appraising and stating the worth of its products F. Tactics and Action Plan 1. Developing an Action Plan for Implementing the Marketing Strategies Identified The first step will be making the product. This is to be followed by determining the price of the end product. Thirdly, the market is to be informed about the availability or presence of the product. After all the above have been carried out, the product may then be distributed into the market. a. Tasks for Each Strategy Identified First, the making of the product will involve harnessing all the factors of production such as capital, skilled manpower and raw materials. Second, uniqueness will be highly considered to enjoy an edge in the market share. Third, quality will be emphasized to attract consumers from all walks of life, as this will translate to more returns. Fourth, determining prices will similarly involve evaluating the cost of production, the dynamics of demand and supply and even government policy. Fifth, advertising may be necessary, considering the medium of communication against qualities such as appropriateness, cost and the duration of time to be taken in advertisement. Sixth, distribution will have to factor the cost, the most favorable means of transportation and the most appropriate outlets for launching and availing the new appliance. Seventh, product incentive program will be used to reward consumers who make large purchases for the product; this is a sure way of retaining consumer loyalty. Eighth, free product samples will be distributed to consumers to improve sales among first time customers. Ninth, listening to consumers, to deliver what they desire, where it is most appropriate. Tenth, guaranteeing consumers of a warranty on the goods will improve consumer confidence in the electronic products. Eleventh, minimizing product recalls through sound R&D services will improve customer attraction and retention. Finally, making all different product lines will serve to satisfy different consumer tastes and preferences and improve company sales. 2. Timeline Outlining When Each Task Is To Be Completed In 2012 Phase 1: January- April – production (identifying the model, the resources needed and the most favorable supplying companies) Phase 2: April- price determination (studying supplying and demand in the market, the cost of production, and competition) Phase 3: April- July- promotion (choosing the best means of advertising) Phase 4: July – August- distribution (choosing the best means of transportation and the most famous stores) G. Monitoring Procedures 1. To measure the effectiveness of the plan, the steps will be broken down into phases so that no step can take place, if the previous one has not been successful. However, for maximum accuracy, price determination and promotion are allowed to precede all other activities. Although it is logically impossible to promote a nonexistent commodity, yet the promotion can be executed beforehand, to allow Company G to gauge the receptiveness in the market. It is from this receptiveness that the company can determine the amount of goods to be made. Reference Jenkinson, N. (2007). New Markets and New Demands: Challenges for Central Banks in the Wholesale Market Infrastructure, Bank of England Quarterly Bulletin, 47(4):607-12. Read More