Marketing Plan of Knowledge Store - Case Study Example

? Research Paper-Business Plan of Introduction This marketing plan focuses on Knowledge Store’s product/brand’s micro and competitive environment analysis of the businesses. In addition, the report details the 7Ps of marketing/mix that the store applies currently including, people, product, price, promotion, place, process, and physical evidence. Micro Environment Analysis This entails the analysis of the immediate external environment in which Knowledge Store operates. In this regard, the analysis focuses on the books, tapes and DVDs market, competitive environment and the costs involved. This can only be achieved by continuous surveys of the books, tapes and DVDs competitors’ actions in this market. Under Knowledge Store’s strategic marketing plan/approach, it will continuously monitor potential benefits/opportunities offered by the new line of products/books, tapes and DVDs to ascertain its financial viability (Zanoni, 2011). Ansoff Model In order to meet the above objectives, Knowledge Store can use Ansoff matrix/model to make decisions regarding the books, tapes and DVDs marketing growth strategies. It will used to ascertain strategic priorities regarding the launch of this new product line to attract more customers, expand the existing market share and to increase sales revenue earnings (Grewal & Levy, 2011). It helps in creating a logical platform on which the above objectives are developed, following different mix categories shown in the diagram below. Fig. 1.0: Ansoff Model Moreover, Ansoff’s matrix is employed to determine the books, tapes and DVDs e-marketing strategies that will help in meeting the objectives of increasing the customer base and market share. This will be facilitated by the use of internet services, which reach more customers segments in different geographic markets across the globe (Kerin, Hartley & Rudelius, 2010). Knowledge Store Marketing Mix The 7Ps of marketing that the store applies currently include, people, product, price, promotion, place, process, and physical evidence. They determine the success of the business if well articulated. In business, the 7ps are called the marketing mix and are available to the authority managing the store affairs. Primarily, the marketing mix combines the product and service aspects, thereby making the 7ps. For the case of Knowledge Store Store, the marketing mix is considered in the situation of books, tapes and DVDs products marketing. The report outlines the various ways, in which the store has used the elements in improving the books, tapes and DVDs products and marketing plan for the business operations (Shimp, 2007). People In reality, the people are the most important aspect of the marketing mix, an issue that the store had recognized. For instance, the use of books, tapes and DVDs products is capable of altering the dynamics, which surround those delivering the books, tapes and DVDs products. Product Through improved books, tapes and DVDs technology, the store has provided a means of delivering new and unique products, which are intended to match many other available products. Besides, the purely new products are presumed to develop new business opportunities for the store. Some of the products they make are in line with the technological development Price Pricing of the books, tapes and DVDs products that Knowledge Store intends to supply is very significant in determining the overall sales volume. Promotion Carrying out promotion is one of the means through which Knowledge Store can create awareness on its new products line. For Knowledge Store Store, the books, tapes and DVDs products provide them with many opportunities for doing promotion to sensitize the public on the products. Place Knowledge Store can create a new interaction place for their consumers so that the communication between them could be cordial, easy and with maximum efficiency, especially on its new product line/ books, tapes and DVDs. Process The issues relating to the process involve the channel through which Knowledge Store follows in delivering its books, tapes and DVDs products to customers. It also outlines the various ways through which the customer should follow to receive the products. For the case of Knowledge Store Store, the management understands and outlines the other ways of making the customers have personalized knowledge about the books, tapes and DVDs products that the store offers (Parente, 2009). Physical Evidence Books, tapes and DVDs products can offer numerous substitutes for purposes of offering physical evidence that is useful in quality service delivery. Knowledge Store can make use of faster means of delivery, for instance, aircraft flights to deliver the books, tapes and DVDs products to its international customers, in safe conditions. Knowledge Store Marketing Segmentation The criteria that the store uses to classify its customers are measurable, responsive to marketing mix and reasonable. Therefore, the segmentation criteria that the store applies include economic, geographic, demographic, behavioral, and psychographic. Under economic segmentation, this market can be categorized according to the levels of income (Scott, 2010). As a result, this classification has people contain people from high-income, medium-income and low-income categories. Geographic segmentation acknowledges variables climate, population growth, region, and population density. The Knowledge Store Store invests more on regions with high population growth and density. Moreover, demographic segmentation relies on human variables including age, ethnicity, gender, occupation, education, and family status. These variables are different aspects and the store applies then only on areas deemed essential, in the sense that those factors do not affect the consumer choices and preference (Parente, 2009). Behavioral segmentation enables the store to use variables such as price sensitivity rate of usage; benefit sought, and brand loyalty. In this area, the Knowledge Store Store uses such attributes to improve on the quality of its products. In addition, psychographic segmentation helps the store determine the consumers’ lifestyle, attitude toward the product and value he/she attaches to it. It can be proposed in this plan that through this segmentation, Knowledge Store is able to understand the customers’ preference and desires, thus making informed choices during distribution of the books, tapes and DVDs products (Scott, 2010). Knowledge Store New Product Line/Books, tapes and DVDs Marketing Plan Budgeting Marketing Plan Cost and Price Summary Estimate ref: GC II Marketing plan Title: Knowledge Store – 787 Case Number: II Client/Customer: XXXXXXXXXXX Date: 25/03/2013 Labour cost by standard grade 1 hour at $ 70 = $ 70 2 hour at $ 60 = $ 120 4 hour at $ 55 = $ 220 6 hour at $ 50 = $ 300 8 hour at $ 45 = $ 360 Total labour cost (for 2years) $7,200,000.00 Books, tapes and DVDs ingredients, materials and bought-out service $243,089,944.00 Other expenses (professional fees, licensing, etc.) $3,600,000.00 Prime cost $253,500,000.00 Books, tapes and DVDs ingredients burden at 23 % (if any) $105,000,000.00 Overseas cost and handling charges (if any) $20,000,000.00 Basic estimated project cost $351,840,000.00 Total estimated project cost $351,840,000.00 Indicated selling price $500,000,000.00 Knowledge Store Marketing Plan Monitoring Earned value Analysis Earned Value analysis is a method of performance measurement. It is a program management technique that uses “work in progress” to indicate what will happen to the marketing plan in the future. Earned Value goes one step further and examines the actual accomplishment of the marketing plan (Grewal & Levy, 2011). This allows the marketing managers to have a greater insight into the potential risk areas. It’s a set of guidelines that guides the store’s management control system. I. Budget at Completion of the planning process (BAC) = $ 14,660,000 * 24 = $ 351,840,000 II. Actual Cost (AC) = $ 172,450,000 III. Planned Completion = 12/24 = 50 % IV. Actual Completion = 55 % Therefore, I. Planned Value = Planned Completion (%) * BAC = 50% * $ 351,840,000= $ 175,920,000 II. Earned Value = Actual Completion (%) * BAC = 55% * $ 351,840,000= $ 193,512,000 III. Cost Performance Index (CPI)= EV / AC = $ 193,512,000 / $ 172,450,000= 1.12 IV. Schedule Performance Index (SPI)= EV / PV = $ 193,512,000 / $ 175,920,000= 1.1 V. Estimate at Completion=Budgeted Actual Cost+ AC–EV=351,840,000+172,450,000-193,512,000= $ 330, 778,000. Risk management Defining Knowledge Store and learning about the activities it goes through in a planned manner, aids in measuring and evaluating it. There are two types of risk management issues to be considered about the books, tapes and DVDs new product line. Growth risk These are expected from the future performance of the store, a score for a growth risk can be ascertained by consolidating the store’s recent scores to evaluate its growth and forecast. Therefore, detailed analysis should be provided to account for factors that have led to its marketing growth. Sensitivity risk This comes due to non-internal forces to Knowledge Store. Scores for sensitivity risks are found out through the establishment of the most significant external factors. This is done by attaching weights to the scores to show the magnitude of the sensitivity regarding Knowledge Store’s performance (Kotler & Armstrong, 2009). Some of the external sensitivities: 1. Current Market 2. Interest rate 3. Commodity prices 4. Government regulations Risk Factors Risk factors can arise from transportation and delivery of the books, tapes and DVDs products. I. Damage to books, tapes and DVDs products while being delivered. II. Faulty workmanship causing the failure of a transport system in a books, tapes and DVDs in flight after it has been returned to the customer. III. Injury to customers or other personnel while loading books, tapes and DVDs products at the store’s go-down/warehouse. Performance Measurement Approach/Analysis There are two types of PMA, which are mentioned below: 1. Total Quality Management This is a comprehensive and structured approach to store’s management that achieves best quality of products and services that can be offered to the customers by using effective refinements in response to continuous feedback, and through using them effectively in order to deliver the best value for the customer (Kerin, Hartley & Rudelius, 2010). In this regard, Knowledge Store will deliver only the best books, tapes and DVDs products to its customers. 2. Balanced Scorecard This is a strategic planning and management system that is used extensively in different companies worldwide to align business activities to the vision and strategy of the store. It also helps to improve internal, external communications and monitor store performance against strategic goals. It also retains traditional financial measures which describes past events. The balanced scorecard suggests that we view the store from four perspectives, to develop metrics, collect data and analyze it relative to each of these perspectives. Indeed, this is a necessary tool that Knowledge Store marketing team involved in the launch of the new product line planning process should use (Kotler & Armstrong, 2009). As a result, it is important to use both of the techniques to measure the performance of the marketing plan. Since each of these methods has its own advantages, it is necessary to combine them to achieve the following. 1. The goal of Balanced Score Card is to direct store to the right track to reach strategic goals and pursue strategic mission, and the TQM aims for high return on investments. 2. Increase market share. 3. Increased customer base. 4. Reduced failure costs. 5. More productive workforce enabling lower loss of the books, tapes and DVDs ingredients. Knowledge Store Marketing Plan for Launching Books, tapes and DVDs Products Evaluation Major achievements from the marketing plan I. Extended the reach of the store into the books, tapes and DVDs product line. II. Was able to establish new base in other market segments III. Introduction of new make up line/books, tapes and DVDs. IV. Developed store’s infrastructure to handle high grade composites of books, tapes and DVDs products. Primary resources required for the completion of the marketing plan 1. Machinery 2. Work Force 3. Raw ingredients 4. Finance Performance Management Evaluations and Analysis In order to analyze the performance of Knowledge Store’s books, tapes and DVDs, its achievements were measured in three stages: 1. Input Indicators Initially the parameters taken into consideration were the financial and work force. 2. Output Indicators The parameters that were taken into consideration after the marketing plan was the quality of the books, tapes and DVDs ingredient and was it up to the standard of the ISO mark ((Errigo & Zempol, 2011). Impact Indicators The external factors that can affect our business would be the current market, the political shake ups in Knowledge Store’s regions of operation. Moreover, internal factors are witnessed during the product’s planning, and the efficiency of the workforce involved can also affect the production. Performance Measurement Evaluations And Analysis The evaluation process consisted of analyzing the performance of the Knowledge Store Store through the feedback that was given from the customers as well as timely evaluation within the store from the collection of data and information. This helps us to take more effective decision as compared to the previous decisions through data analysis. During the course of this planning process, cost was also taken into consideration to make sure that we were not going over budget and the cost was in an effective manner (Belch &Belch, 2009). The impact of the new product line/books, tapes and DVDs provided by the store in the market was inspected by questionnaire and survey. Were the Goals Realistic and Relevant? Initially when the marketing proposal was made the goals were discussed among the group members. It was made sure that whatever we were trying to achieve would be achievable. However, if it would not be possible, then an alternative would be found to achieve the objectives and goals. In summary, throughout the marketing plan, a lot of obstacles had emerged, but in the end, the goals were made possible. Some of them were like lighter books, tapes and DVDs, providing a low cost travelling, and raising the awareness that new books, tapes and DVDs ingredient can be used on books, tapes and DVDs rather than aluminum. These goals were also relevant as they would signify a stepping stone to the store if it was successful. References Belch, G. & Belch, M. (2009). Advertising and promotion: An integrated Marketing Communications Perspective (8th Ed.). Boston, Mass: McGraw-Hill. Errigo, J. & Zempol, E. (2011). A Lean Marketing Revolution: The Timeless-Know How Principles. Kindle eBooks. Grewal, D. & Levy, M. (2011). Marketing. New York, NY: McGraw-Hill. Kerin, R., Hartley, S., & Rudelius, W. (2010). Marketing. New York, NY: Pearson. Kotler, P. & Armstrong, G. (2009). Principles of Marketing (13th Ed.). New York, NY: Prentice Hall. Parente, D. (2009). Advertising Campaign Strategy: A Guide to Marketing Communication Plans (4th Ed.). Mason, Ohio: Thomson/South-Western. Scott, D. (2010). The New Rules of Marketing and PR. (2nd Ed.). New York, NY: Wiley. Shimp, T. (2007). Advertising, Promotion, And other Aspects of Integrated Marketing Communications. (7th Ed.). Mason, Ohio: Thomson South-Western. Zanoni, A. (2011). Strategic Analysis: Processes and Tools. New York, NY: Routledge. . Read More