Marketing Plan Project: the Spatty and Spatty Daddy Product - Research Proposal Example

? Marketing Plan project Introduction The leading organizations around the globe are trying to capitalize on the advantages that have been created due to globalization. There are certain business segments that are not effectively covered or tapped. Several innovative and intelligent entrepreneurs have constantly doing research in order to develop a new business idea to implement in this competitive global market place. The Spatty and Spatty daddy is a typical product that are going to launch in order to help the people to enjoy each and every last drop of several products, such as tooth paste, beauty creams and small makeup containers (The Spatty, 2013). These Spatty and Spatty Daddy are made out of USDA and FDA approved products materials. There is a huge need for this kind of product among the people. The following study will provide some information and will develop a marketing plan for this developed product. Economic Environment and Competitive Environment Analysis US are one of the strongest, leading and developed economies in the world. The recent global recession in the year 2007-08 and the European financial crisis in the year2008-09 have affected the economic situation of the country. Most importantly, this economic downturn has affected the social and economic life cycle of a country. The per capita income of people has gone down due to this recession. Moreover, this unfavorable economic situation of the country has impacted negatively on the economic growth of the country. Currently, it is feasible that, the disposable income of people has gone down comparing to the pre era of global recession. Now-a-days, people are trying to save more rather than consuming. Several economic policies such as high tax rate, limited government expenditure has affected the economic situation of the country very badly. Looking into these factors, it can be said that, the country is still suffering from the impact of economic downturn. In terms of competitive environment, the success of the product depends upon the product attribute, price range of the products and existing rivalry in the operating market place. Depending upon these things, it can be said that, the product has several competitive advantages. First of all, this type of business market is still uncovered and untapped. Therefore, there is a huge opportunity for the brand to capitalize on the potential market opportunity. On the other hand, it can be said that, this kind of product will be very effective in the daily life of people. In terms of pricing, it can be said that, this product is affordable for the people of all kind of income group, such as lower middle, middle, upper middle and upper class. The low price range of the products is addressing that; people can afford this product without any hesitation. Lastly, in terms of competitors, it can be said that lack of competitors and due to untapped market the product can achieve huge competitive advantage and market share. It will help them to increase the target customer base. Data on the Market The organization can target a huge area of market place, as it is discussed earlier that, the specific market segment is still untapped. Moreover, according to a survey, it has been found out that, more than 75% people, including all kind of market segment it is feasible that, there has been already a need for this product. According to the respondents, it is feasible that, major of them are unhappy as they could not able to use 100% of a beauty cosmetic product or a tooth paste. Therefore, it has evidenced that, there are huge demand for the product. In terms of age it is feasible that, there is a need for the product among the people aged between 12 and 65. Moreover, in terms of income group, it has been feasible that, people whose household income is more than 15,000 US dollar are the major target group of this product. In terms of gender of people, the products are seemed to be popular among the household female respondents comparing to other male respondents. The median income of the maximum respondents is 55,000 US dollar. There has a huge need for this product among the Americans comparing to the Black Americans. Consumer Behavior and Market Segmentation Consumer behaviour and Market Segment are the important elements for a marketing plan of a product. The current market need for this product has already being discussed. Therefore, in terms of consumer behaviour, it can be state that, due to untapped market and lack of competitors, the consumers will look to consume this specific product. Moreover, it is feasible that, reasonable price range of the product all attract the people of all income groups. According to the survey report that has been achieved through a market survey, it is feasible that, the product has created huge demand in the daily life of each and every household. In terms of market segmentation, it can be said that, this product will be popular among all the segments. In terms of demographic market segment, it is feasible that, female households and single lady need this product in order to make 100% use of their tooth paste and cosmetic beauty creams. On the other hand, among the males, it should be useful to make 100% use of their shaving cream tubes. In terms of income segment it can be said that, people from all the income groups can afford this type of product. In terms of behavioral segment, there is a huge market demand for this product among the people in order to make 100% use of all the products. Discussion of the product Spatty and Spatty Daddy should be described as a money saving product that allows the users to get the last bit of the products even within small openings where no other products can reach. The products are made of FDA and USDA accepted materials that make the products quite safe to use on food, cosmetic and other sensitive products like dish washers. As per a study conducted by the consumer reports, the customers tend to throw away almost 25% of the cosmetic and other products like tooth pastes when the products become hard to get out from the bottles or tubes. Spatty and Spatty Daddy will allow the customers to use the whole product and prevent the customers from wasting the relatively expensive products. Spatty and Spatty Daddy is also quite helpful in the kitchen while decorating details on cookies, treats and cakes. Hence the product should be classified as an innovative, healthy, user friendly product which comes at an affordable price and provides value for money to the customers. Product packaging will be important for Spatty and Spatty Daddy; packaging is often called the silence sales man. (Kolb, 2008). While packaging key information such as manufacturing data, expiry date and even the materials used need to be mentioned. A lot people would be concerned with the materials used to develop Spatty and Spatty Daddy, because it would come in to contact with sensitive cosmetics and food products. Also as mentioned above the acceptance by FDA and USDA also need to be mentioned; as it could create sense of trust and credibility. As far as Product Life Cycle is concerned the product would be in the introduction phase as it has just been launched in the market and is a new product (Henry, 2008). Figure 1: Product Life Cycle Discussion of the place Place refers to the channel and distribution to be used for the product. Keeping the present state of economy and the paradigm of shift in consumer behavior in mind is suggested that the company uses multiple modes of distribution channels to distribute the product. Today the customers do not like to visit the supermarkets or the organized retail outlets to shops. Rather, the customers prefer to stay indoors and buy the products over the online medium. The rise in the use of tablets and smart phones may act like a reactor, which could increase the number of customers buying products through the digital medium in future. One of the ways to reach out to the customers would most definitely be through the organized retail outlets. Many may feel concerned about the fact that due to the reputation and size of the product and also due to the nature of the product it may be difficult for the marketers to get a shelf space. But keeping the innovativeness of the product and the relatively inexpensive price in mind it is believed that getting shelf space would not a problem. However a part from this the products should also be made available over the digital space. The company should ensure that the products are available for sales through the company website. Along with it, the product should have presence in large online retail portals like Amazon. Presence over the digital space would e important as it provides an opportunity to the company to reach the customers directly. Also the company should check availability of the products in the stocks of the retailers. Also is should be made sure that the products are available for sales on the online sales page of retailers like Wal-Mart. Another place that can be used to keep in touch with the customers would be through digital apps. Apps could be downloaded for free from the android market by the users (Brown, 2009, p. 209). Figure 2: Marketing Channel: 1 Figure 3: Marketing Channel: 2 Discussion of Pricing One of the major decisions to be made by the marketers Spatty and Spatty Daddy would the pricing strategy. The marketers have to decide whether to go for price skimming or price penetration strategy. In case of price skimming the prices are set at a higher price initially and later the prices are reduced or skimmed off. In case of price penetration however, the prices are set at a lower margin throughout. Judging by the nature of the product it is suggested that the marketers should use price penetration strategy. The price range of the product should be set between the ranges of $ 5 to $10. However, mere price penetration would not be sufficient. In order to attract the customers the marketers has to use price promotional techniques. One of the ways to do so would be to decrease the prices for a shorter period of time to push the sales. Also another price promotional strategy can be adopted based on different channels of sales. For example a certain amount of discount can be provided to a customer who buys the product from the website of the company. This would help the company to boost the sales as well as increase the much required website traffic. A part from this with partnership with retailers the company can also provide certain price discounts to motivate the buyers (Kotler, 2001). Discussion of Promotion Main promotional objective of the company would be to create brand awareness for the product. It is to be said that the product is a new one and hence the brand awareness of the product would be relatively low. There at least in the initial phase the main objective of the company would be creating awareness. The different elements of the promotional mix are advertisement, sales promotion, public relation, direct marketing. It is suggested that the company uses all of them (Belch and Michael, 2005). Advertisement is obviously one of the most famous modes of communication and hence ads should be used. But herewith the marketers may have to SMART regarding the budget. The marketers may feel that the due to budgetary constraints it may not be possible to go for TV or radio ads as they could be quite expensive. But thanks to the marketers there is another medium in the form of the digital medium. The digital medium includes both search engines as well as social media. One of the best ways to go for online ads would be to avail the Google ad-words. They are relatively less expensive as compared to television ads and most importantly increases visibility and traffic. Another way would be to go for PPC ads of Facebook. On average sixty to seventy percent of the people in U.S. use social media. As a matter of fact due to the rise in the tabs and smart phones people have the luxury of logging in the Facebook for almost the whole day. Therefore PPC ads would be a great option. Ads on YouTube are also a possibility but research has shown that people tend to get quite irritated by YT ads and majorities skip them. Rather than going for ads, posting videos about the probable use of the products would be a much better option. A part from this use of Banner Ads on Yahoo can be done to increase visibility and web traffic also. However, before going for ads, thorough key word research and analysis should be done. As far as sales and price promotion is concerned uses off different promotional techniques have already been discussed in the pricing section. In order to develop healthy relation with the public social media would be the key. Quality and relevant posts on Facebook, Twitter, Pinterest, etc. would most certainly help in customer engagement. A part from this the marketers can also use contests on social media platform to increase level of engagement. Blogging can also be used to build up relationships and promote the product in a subtle fashion. The company can also use social media for customer service and all these activities can help the product go viral. Direct Marketing can be used by the marketer through direct mailers. Consumers are likely to give up personal data through social media apps; which could be used for direct mailers (Burgemeister, 2003). Conclusion The leading organizations around the globe are trying to capitalize on the advantages that have been created due to globalization. The Spatty and Spatty daddy is a typical product that are going to launch in order to help the people to enjoy each and every last drop of several products, such as tooth paste, beauty creams and small makeup containers. US are one of the strongest, leading and developed economies in the world. The recent global recession in the year 2007-08 and the European financial crisis in the year2008-09 have affected the economic situation of the country. This type of business market is still uncovered and untapped. Therefore, there is a huge opportunity for the brand to capitalize on the potential market opportunity. On the other hand, it can be said that, this kind of product will be very effective in the daily life of people. In terms of market segmentation, it can be said that, this product will be popular among all the segments. In terms of demographic market segment, it is feasible that, female households and single lady need this product in order to make 100% use of their tooth paste and cosmetic beauty creams. Finally it can be said that, a strong promotional strategy is required to create awareness about the product. In order to develop healthy relation with the public social media would be the key. Quality and relevant posts on Facebook, Twitter, Pinterest, etc. would most certainly help in customer engagement. References Belch G and Michael, G. (2005). Advertising &Promotion-An Integrated marketing Communications Perspective. London: McGraw-Hill. Brown, L. (2009). Marketing and Distribution Research. London: Ronald Press Company. Burgemeister, S. (2003). Market analysis. Berlin: GRIN Verlag. Henry, A. (2008). Understanding Strategic Management. Oxford: Oxford University Press. Kolb, B. (2008). Marketing Research: A Practical Approach. London: Sage. Kotler, P. (2001). Marketing Management. London: Prentice Hall. The Spatty. (2013). About. Retrieved from: http://www.thespatty.com/about.cfm?lid=3386. Read More