Three Year Marketing Plan of G Company - Essay Example

Three-year marketing plan A. Product Support of Mission ment Explain how the small appliance, you have selected, supports Company G’s mission statement provided in the introduction. The mission statement of Company G depicts its long-run intention to “enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions”. The proposed product in this marketing plan is a small appliance electronic Ice-cream maker with quality assurance and at a cheaper price. In relation to its mission statement, Company G attempts to provide its customers with a high-quality product, i.e. t6he ice-cream maker, as per the targeted customers’ conveniences, facilitating innovative electronic equipments in the present competitive market scenario. 2. Classify Company G’s products using the three-way consumer product classification system. Small appliances, such as ice-cream makers are now-a-days becoming tremendously popular. Applying the three-way consumer product classification system, Company G’s products can be categorized as convenience goods by a large extent. Notably, the classification system divides commodities into three categories, i.e. convenience goods, shopping goods and specialty goods, among which, the offered product as Company G’s ice-cream maker satisfies the characteristics of convenience goods. However, a few of its characteristics can also be observed as satisfying the characteristics of specialty goods (Boone & Kurtz, 2011). B. Target Market 1. Describe the target market for the company’s product. It has been mentioned above that Company G will aim at launching an ice-cream maker for the convenience of its customers with added technology features and quality. In this regard, the company will be targeting the middle-level economic groups, especially the households or families with children. It is worth mentioning in this context that households with children are likely to be the most prospective customers of the product, not only for conveniences but also for quality issues related to healthy living. With this aim, the company will emphasize on its already established market area, i.e. the US, offering Company G with an added competitive advantage of brand recognition and existing customer loyalty. C. Analysis of Competitive Environment 1. Analyze Company G’s competitive environment utilizing Porter’s Five Forces model of competitive forces. The product, i.e. Company G’s ice-cream maker, will target the small appliances market of the US primarily. Thus, the competitive environment of the small appliances industry in the US has been summarized henceforth with the application of the Porter’s Five Forces Model. Threats of New Entrants: High capital requirements to satisfy technology needs imposes a barrier for the new entrants in this industry structure Product differentiation depends highly upon the quality features of the commodities offered in this industry, which in turn increases the challenge of obtaining competitive advantages discouraging the new entrants to obtain sustainable benefits In this industry, the switching cost of the consumers is noted as quite high owing to the availability of fewer brands which increases competition among the existing players and restricts new entrants Determinants of Supplier Power: The suppliers of small appliances industry in the US can be observed as concentrated The substitute inputs are available in abundance in this industry rewarding a wider scope for innovation but simultaneously increasing competition among the suppliers Fundamentally owing to the fact that companies engaged in the supply chain of this industry tends to be large-sized, the threat of forward integration lessens considerably Rivalry among Existing Firms: This industry is a rapidly growing industry which increases the scope for innovation along with fuelling greater degree of competition Players are noted to be large sized which influences the industry structure partially as a monopolistic market Exit barriers are also quite high in this industry Determinants of Buyer Power: Aggregate number of buyers in this industry tends to be higher than compared to the number of sellers As substitute products from both national and global brands are available at almost similar prices, switching costs of the buyers tend to be high in this industry context The products offered in this industry have become a necessity of the current day lifestyle perused by the customers which further decreases their bargaining power to a certain extent The only differentiating features of the products available in this industry are the technology features and the quality assurance rendered Threat to Substitute Products: Substitute products are easily available in this industry context Higher margin of quality differences are also apparent in this industry structure which further increases the threat of substitute products In relation to substitution effects, the switching costs of buyers tend to be high by a certain degree (GFU, 2012; Goldman, 2010) D. SWOT Analysis 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. i. Company G, being an existing company in the US small appliances market, possesses a proportion of market share which renders a degree of competitive advantage to the organisation in terms of brand recognition and customer loyalty which can be quite useful in the launch of the new product ii. The company focuses largely on quality assurance and technology innovation which in turn targets the product differentiation features in the industrial context, increasing the switching costs of the targeted customers obtaining a degree of competitive advantage iii. The company is observed to maintain a highly cooperative relationship with its suppliers which in turn increases its potentiality to innovate technologically advanced products b. Identify at least two strengths that should be considered as core competencies. From the above mentioned strengths, the two most important strengths, which can be considered as the core competencies possessed by the company, can be illustrated as its differentiation strategies with respect to technology as well as quality features and its consideration towards maintaining a cooperative relationship with the suppliers which in turn increases its ability to perform innovation on a continuous basis. 2) Describe three areas where Company G has weaknesses related to the marketing of the new product. a. Support your choice of each of these elements as weaknesses. One of the major weaknesses of Company G is that it only deals with household customers in the small appliances market. This restricts the future growth of the industry, among corporate customers, such as the players in the hospitality and food industry. Another weakness of the company lay in its supply chain management process where it mainly focuses on maintaining a well-balanced relationship with its existing suppliers, focusing less on the obtainment of new suppliers which is quite necessary to sustain in the increasingly competitive industry context of the US small appliances market. Furthermore, in its promotional strategies, the company offers discounts primarily to its supply chain partners, i.e. the distributors which might limit the accessibility of the company to a greater degree of customer loyalty by obstructing the communication of its organisational values to the target users of the offered products. 3) Describe three current or potential opportunities within the industry. a. Support your choice of each of these as opportunities. With moderate degree of bargaining power enjoyed by the customers, this industry offers significant opportunity to Company G in obtaining greater market share in the near future. Applying its core competencies of technology features and quality assurance, the organisation can also take advantages of the greater scope of innovation present within the current industrial scenario. Additionally, as the industry structure currently restricts the entry of new entrants by a certain extent, it is likely to offer greater opportunities for Company G in obtaining a larger market share through a competitive presence within its target market. 4) Describe three current or potential threats within the industry. a. Support your choice of each of these as threats. In this era of globalization, the rapid changes in the technology industry, influencing the incessant innovation of more advanced technologies, may become a threat for the company in the near future, making it mandatory for the company to keep pace with the external changes so that it can preserve its leading position within the market. Another major threat for the company can be identified as the increasing awareness of the target customers which in turn can significantly raise the degree of competition persisting within the market structure. Governmental policies and regulations related to pollution and other environmental hazards related with technology uses can also prove to be a threat for the technology industry players, including Company G. E. Marketing Objectives 1. Select four marketing objectives for Company G consisting of one objective for each of the four marketing mix elements (product, distribution, price, and promotion). The primary marketing objectives for Company G, when launching its small electronic appliance, i.e. an ice-cream maker has been mentioned as follows. Product: To increase versatility in the product line Distribution: To attract more loyal customers from a long-run perspective Price: Offering the product at cheaper price to obtain a sustainable profit through competitive pricing and thereby satisfying the customer needs adequately Promotion: To increase customer demand F. 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. Marketing Mix Elements Objectives Strategies Product To increase versatility in the product line The product will be attractive in its presentation deciphering artistic excellence Creative packaging and labelling will be considered when launching the product The product designed will offer competitive quality assurance to its target customers Distribution To attract more loyal customers from a long-run perspective Inclusion of new suppliers along with the existing productive suppliers will be taken into account Distribution process will offer greater economic values to every participant engaged in the supply chain including the end users The company will target communicating its vision to the targeted end users of the product to be launched, i.e. the ice-cream maker to ensure better brand loyalty Price Offering the product at cheaper price to obtain a sustainable profit through competitive pricing and thereby satisfying the customer needs adequately Setting the price according to the purchasing power of the consumer Obtaining a marginal profit by rendering greater significance towards sustainability in the long-run Setting lesser price as compared to its competitors to attract more customer Promotion To increase customer demand Conducting product demonstration strategies within the target marketplace Communicate the economic and social values of the product to the target customers Use media which have greater reachability to the target customers 2. Explain why you feel this is the best mix to achieve the objectives. The strategies mentioned above can be observed as solely focused upon the determined objectives in correspondence with each of the marketing mix elements. Furthermore, the strategies developed also addresses the aspects noted in the mission statement of Company G, i.e. customer satisfaction and sustainability causing lesser challenges and risks for the product in its long-run. The strategies developed also attempts to take into account the strengths and weaknesses of the company to attain the identified opportunities and mitigate the persisting threats in the industrial context. Hence, it can be affirmed that the marketing mix strategies illustrated above are the most suitable strategies to achieve the already determined objectives. G. Tactics and Action Plan 1. Develop an action plan for implementing the marketing strategies identified. Actions How Sensible Measurable Achievable Realistic The product will be attractive in its presentation deciphering artistic excellence By comparing the product with its existing substitutes It is offer a greater degree of competitive advantage Through sample testing to persuade a given proportion of the targeted customer group By the packaging team of the company Reasonable cost Creative packaging and labelling will be considered when launching the product The conveniences of the target customers will be considered with utmost significance This will render greater customer satisfaction and brand loyalty Through market researches and obtaining customer feedbacks By the packaging team of the company Reasonable cost The product designed will offer competitive quality assurance to its target customers By offering technologically tested materials and ensuring quality from the suppliers end This will increase the product viability in terms of quality assurance Obtaining suppliers’ justification and quality assurance By the supply chain management group of the company Reasonable cost Inclusion of new suppliers along with the existing productive suppliers will be taken into account By offering attractive economic values to the new as well as existing suppliers This will facilitate greater competencies to innovate new products Conducting research on the prospective suppliers’ experiences By the supply chain management group of the company Reasonable cost Distribution process will offer greater economic values to every participant engaged in the supply chain including the end users By offering value added services and motivating the distributors to render quality services to the end users This will facilitate greater brand value and customer loyalty By conducting regular meetings with the partners in the demand side of the product and making them acknowledged about the mission of the company By the supply chain management group of the company Reasonable cost The company will target communicating its vision to the targeted end users of the product to be launched, i.e. the ice-cream maker to ensure better brand loyalty By segmenting the customer groups according to their needs and demands This will render better brand loyalty and recognition By promoting quality customer services which will facilitate direct interaction of the sales team with the customers Sales team of the company Reasonable cost Setting the price according to the purchasing power of the consumer Identifying the income level and the spending behavior of the customers Render competitiveness to the company in terms of competitive pricing By analyzing the features and the price ranges of the substitute brand available in the market By the market research team Reasonable cost Obtaining a marginal profit by rendering greater significance towards sustainability in the long-run Maintaining a balance between the production cost and the market price of the product Render greater customer satisfaction By recording the production cost per unit and the customer purchase behavior in periodic intervals By the finance team of the company Reasonable cost Setting lesser price as compared to its competitors to attract more customer By analyzing the pricing strategies implemented by its competitors Render the opportunity to gain a competitive position within the target market Identifying the price range of its substitute brands By the marketing and the finance team of the company Reasonable cost Conducting product demonstration strategies within the target marketplace By helping marketing campaigns and illustrating the uses of the product Create strong impressions on the prospective customers Identifying the specific group of potential customers By the marketing and sales team Reasonable cost Communicate the economic and social values of the product to the target customers By involving promotional channels which have strong influence on the customers’ buying behavior Create long-lasting influence on the target customers Identifying the promotional channels on the basis of their persuasiveness By the market research team Reasonable cost Use media which have greater reachability to the target customers Identifying the available media options Enhance the accessibility of the company towards its target customers Comparing the persuasiveness and the reachability of the media options selected By the market research team and the promotion team Reasonable cost a. Include one task for each strategy identified. Strategies Tasks The product will be attractive in its presentation deciphering artistic excellence Compare the characteristics of the ice-cream maker with its substitutes Creative packaging and labelling will be considered when launching the product Identifying the aspects to be considered when analyzing the conveniences of the target customers The product designed will offer competitive quality assurance to its target customers Technologically testing the raw materials to ensure quality throughout the supply chain Inclusion of new suppliers along with the existing productive suppliers will be taken into account Attracting the new as well as existing suppliers with greater economic advantages Distribution process will offer greater economic values to every participant engaged in the supply chain including the end users Motivate the partners throughout the distribution channel to render quality services to the end users The company will target communicating its vision to the targeted end users of the product to be launched, i.e. the ice-cream maker to ensure better brand loyalty Segmentation of the customer groups on the basis of their needs and demands Setting the price according to the purchasing power of the consumer Identification of the purchasing power and buying behavior of the target customers Obtaining a marginal profit by rendering greater significance towards sustainability in the long-run Analyzing the production cost and the price of the ice-cream maker Setting lesser price as compared to its competitors to attract more customer Comparing competitors’ pricing strategies with the price range of its offered ice-cream maker Conducting product demonstration strategies within the target marketplace Holding marketing campaigns to illustrate the uses of the ice-cream maker Communicate the economic and social values of the product to the target customers Identification of the promotional channels having strong influence on the customers’ buying behavior Use media which have greater reachability to the target customers Comparing and then determining the most promising media options 2. Create a timeline outlining when each task is to be completed. Actions Time The product will be attractive in its presentation deciphering artistic excellence 3 months Creative packaging and labelling will be considered when launching the product 3 months The product designed will offer competitive quality assurance to its target customers 1 month Inclusion of new suppliers along with the existing productive suppliers will be taken into account 3 months Distribution process will offer greater economic values to every participant engaged in the supply chain including the end users 6 months The company will target communicating its vision to the targeted end users of the product to be launched, i.e. the ice-cream maker to ensure better brand loyalty 7 months Setting the price according to the purchasing power of the consumer 6 months Obtaining a marginal profit by rendering greater significance towards sustainability in the long-run 7 months Setting lesser price as compared to its competitors to attract more customer 5 months Conducting product demonstration strategies within the target marketplace 3 months Communicate the economic and social values of the product to the target customers 6 months Use media which have greater reachability to the target customers 6 months H. Monitoring Procedures 1. Describe the specific actions that will be taken to measure the effectiveness of the plan. For the accurate measuring and continuous development of the effectiveness of the plan, specific actions should be implemented by Company G. In this regard, the company should attempt to obtain periodic feedbacks from its consumers which will record the degree of satisfaction amid the target market. Additionally, by keeping records of the periodic sales revenue, analyzing the gap between the determined objectives and obtained results through gap analysis, the company can gain a better insight to the strategic effectiveness of the plan. 2. Create a timeline for these actions from the action plan (part G1 above). Actions Time Obtain periodic feedbacks from its consumers In every quarter of the three years Keeping records of the periodic sales revenue On a monthly basis Gap analysis In every quarter for the three years References Boone, L. E. & Kurtz, D. L. (2011). Contemporary Marketing. United States: Cengage Learning. Brandt, M. T. (1999). Introducing New Products. Retrieved from http://www.inc.com/articles/1999/03/17958.html GFU, (2012). Trends in home appliances at IFA. Retrieved from http://www.gfu.de/go/gfu/_ws/resource/_ts_1352987399000/rO0ABXQAIXN0YXRfcHJpdjp0ZWFzZXI6X2F1dG9fOTU0NzM2MTtlbg==/source_en/trends_ha_english.pdf Goldman, P. (2010). The Aging Consumer: Spending More on Small Appliances. Retrieved from http://www.housewares.org/pdf/mw/10_Winter_MW.pdf Bibliography Cambridge Dictionaries Online. (2011). market-penetration pricing. Retrieved from http://dictionary.cambridge.org/dictionary/business-english/market-penetration-pricing Lorette, K. (2012). Discuss the Difference between Market Segmentation & Target Marketing. Retrieved from http://smallbusiness.chron.com/discuss-difference-between-market-segmentation-target-marketing-1480.html Technology Management. (2012). The University of California. 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