Internal Situation of BioGood - Research Paper Example

? 14th December Executive summary The use of biodegradable products has been performing poor in the market since the products has perception from past that they have negative impact to the environment and the society as a whole. The consumers lately have not been using biodegradable products due to the negative perception that was perceived in the past. Due to the use of modern technology the firm like BioGood has the measures to control the negative effects of the plastic materials in the environment and thus being able to come up with ideas that can help all the consumers whether low income earners or high income earners. The paper will critically look at the marketing plan which has been adopted by BioGood to enable it change the perception of consumers towards the use of biodegradable plastic products, the company mission and vision considered to attain the objective of the firm. The paper still is going to discuss the market situations such as addressing SWOT analysis, marketing mix and marketing segmentation. Further, the paper will discuss the financial objectives of the firm for the first three years, objectives and issues of BioGood will be looked upon and discussed in length so as to understand the firm well and the products it is going to offer. Additionally, the paper will discuss the metrics that are used in marketing plan and their implementation. Marketing plan Internal situation Internal situation of BioGood include the management like finance, development slot, purchasing, operations and accounting. The departments must work together to achieve the goals of the firm, for example the accounting will have to approve any budget the firm considers of help to make the customers satisfied. The marketing managers must ensure that BioGood Company provides the necessary resources that will facilitate the use of biodegradable plastic to be of help to the consumers. BioGood will work hard in hard with other firms that can supply the resources needed in the manufacture of biodegradable plastic. The firm will provide variety of biodegradable products like plastic tanks, cups, basins, approved compostable bags among many others; the company has been in operation for two years but has not been doing well in the market due to the competitive nature of other firms like American Plastic Manufacturing, ECM Biofilms, and Clear Choice HouseWares among others. BioGood will involve customer markets like consumer markets who buy the biodegradable plastic for their own consumption, business markets that are going to buy the brand for selling to other retailers. The government market will buy in bulky to transfer the brands to those people who are needy. External situation BioGood will consider human population in terms of density, age, gender, race, and occupation, thus the market segment and market targets will not be a problem to the firm since it targets all type of customers. PESTEL analysis Political effect The political situation in the market will have to face the law and government agencies and other groups that are going to criticize the firm in production of biodegradable brands. For example, the competitors may petition the firm of false deceptive biodegradable plastic claims. The claim may be focused at making BioGood lower sales or cease working completely. Economic BioGood will enhance the purchasing power of customers, through provision of prices that will be prudent and takes into consideration the inflation rates of the economy. Social The firm will have to invest a lot in advertisements since from the beginning the society together with the competitors has bad perception of biodegradable brands which are perceived to have negative effect to the environment and later to the society. This culture has passed from culture to culture. Technology The technological environment is the fastest media that can lead to changes and creativity in the firm, making the company to be innovative. The technology used by BioGood is perhaps best since the chemicals from the firm are not released to the environment thus making the company to be the best among the list of competitors. Environment The next factor is the environment and this will include the natural resources that BioGood will use in marketing strategies, the negative effects of the biodegradable products must be the key issue to be addressed to and the raw materials that are going to be used. Legal The last factor to consider is legal environment, and this means that the firm cannot work without following the legal frame work of starting a firm which is cable of producing a lot of biodegradable products even to import. Mission of BioGood The company aim is to produce mass products of biodegradable plastic products to the customers which are acceptable in the market with low market price. Competitive situation BioGood Company will face a lot of competition from the companies like American plastic manufacturing, ECM Biofilms and Clear Choice HouseWares. The three companies are the competitors and use any strategy to outdo BioGood. The seven Ps In addition to the 4 Ps (price, promotion, price and product), BioGood aims at adding people, process and physical evidence in its strategies. People People are the defining factors in the service that has to be provided. The decomposable biodegradable plastics are provided by BioGood and thus providing services to the customers. Since BioGood is targeting all type of customers, the company is going to provide high quality services to the customers. Process High quality services are crucial to the customers and thus the services must be repeatedly delivered to the customers. As the company BioGood has to provide the details of the services, the decomposable products will be of help to the customers. Physical evidence Services are intangible in nature and thus BioGood is coming up with a product that is going to be used by the customers of different types. BioGood is going to provide high quality biodegradable plastic which is going to be used for longer time thus providing sustainable services to the customers. BioGood Company retail outlets will introduce new jobs in the market based on its wide range services and products that the firm will provide to the customers. Internal marketing Since BioGood company is not old in the market, it has to use internal marketing to be able to stand firm in the market thus it will have to attract, develop, motivate, and finally be able to retain productive workforce. BioGood must make sure that the employees are treated like customers thus winning the employees and leading to the stability of the company. For the product to perform best in the market, the employees in BioGood Company must be treated well thus being conversant with the product that the company is selling (Beckwith 25). Thus the employee must believe in what they are selling for the customer to believe the same. External marketing do share the same rules like internal marketing. It is worth to note that internal customers (employees) have a lot of information concerning the biodegradable plastic and thus they will be in a position to provide adequate information to the external consumers resulting to increased sales. Thus the aim of BioGood Company is to meet the customer’s satisfaction and earn profit that will sustain the company growth. Since BioGood Company is new in the market, it has to involve direct marketing and know that the customer is always right since the aim is to target the potential customers. Since BioGood has to use direct marketing, it must still use consumer-direct (CD) channels to make sure that the biodegradable plastic reaches the customers without the use of marketing middlemen. BioGood has to make sure that the company has eliminated the middlemen in the marketing, must incorporate the use of direct mail, use of website, television programs among many others. Thus the key role of internal marketing is to increase awareness of the biodegradable products and increase sales making a worthwhile profit. In order to make sure that BioGood is going to achieve a good working environment, the management of the firm must make sure that BioGood is paying the employee well and the time they are supposed to be paid is fixed and still provide benefits and rewards to the employees no matter how many they are in the firm. For example, the employees should be provided with breaks and bonuses. This makes the employee to feel good associated with the firm and again the employee will have to respect and believe the company biodegradable plastic thus attracting the customers who they can win in the market. For internal marketing to be successful, BioGood must make sure that seminars for the employee in the marketing department are held on a regular basis so that the employee can improve their skills fully in the firm. The management of BioGood must improve integration thus the upper management will be closer to the staff. For the company to be successful, it will ensure that ethical issues and discipline matters are effectively handled by a skilled reconciliation team. Departments in BioGood must be willing to work together for the achievement of the goals. Objective and issues that may hinder the attainment goals The objective of BioGood must be set for the firm to become successful and effectively face off its competitors. BioGood objective is to ensure growth of the company and profitability, thus growth in the marketing share has to involve increase market share, offering bulk of biodegradable plastic products in the market, targeting all type of customers. The profitability as an objective of BioGood will target increasing of efficiency of marketing activities, the senior managers in BioGood Company must participate in the marketing plan process so as to achieve the company business objective. The objective of BioGood marketing objective must be measurable, specific and have deadline (Philip 50). The staff together with the management team must work towards achieving BioGood goals. One of the objectives of BioGood Company has set that is specific and measurable is to increase the number of customers by 30% by the end of 2013. Another objective is to increase revenue that is 20% currently to 35% within the next 2 years. Lastly is that BioGood Company has to participate in community events during the coming year for 8 months. Most companies do not consider internal marketing but BioGood is going to consider the internal marketers since the products are new in the market thus making sure that the products are acceptable by the employees. The issues that may prevent BioGood Company from achieving the objective must be indentified and the management makes sure that they are dealt with accordingly. One of the issues is critics from the insiders either from the internal marketers or the management and poor communication thus leading to the failures of the company. Financial objective BioGood Company is going to use marketing plan so as to ensure effective use of its financial resources. Financial objective of BioGood is to achieve the profitability in the marketing plan. Financial objective of BioGood Company will cover various aspects as discussed below. Revenue: BioGood company aim is to generate revenue through different advertisements and sales method. The aim is to generate $150,000 through increased sales which will emanate from extensive promotion and advertisement and within the first 12 months. BioGood is specific in revenue objective since the marketing plan to be achieved must meet specified time in order to measure the extent to which the plans will be successful. Costs: BioGood so far has projected biodegradable plastic worth $1.3 million thus achieving the rules of financial objective. Cost in marketing plan under the financial objective must start with the projected costs for the product sold. The projected cost will include the manufacture and distribution of biodegradable plastic including the materials required with specific costs, personnel costs and shipping costs (Masi and Weidner 70). The objective of projecting the cost in the marketing plan is to lower the cost of production and lower competitive nature in the marketplace. Financial objective together with the cost minimizing strategies are aimed at meet the customer satisfaction and BioGood quality standards thus making sure that the prices are not high to the customers. Profits: Profit projection of the firm must be considered in the marketing plan; BioGood has projected a profit of $1.7 million. The profit must be monitored as the revenue. BioGood Company will not consider low quality materials of biodegradable products so as to achieve a high profit but the materials that are going to satisfy the customers thus involving the customer’s favorite’s materials. Advertising Marketing strategies BioGood Company will not involve only the advertising strategies but the company is going to consider the advertising costs and thus achieving experience in marketing strategies that are going to be based on future marketing campaigns. The advertising method going to be conducted has to use the past historical data and thus the current advertising cost is going to be achieved. Societal objectives The aim of BioGood Company is to make good decisions in the marketing plan thus considering the consumers wants, the company requirements and the most of all is to achieve the society long term interests. The aim is to consider the consumers a lot in manufacturing of the biodegradable plastic materials which are of high quality. Societal marketing in the BioGood aims to target market and achieve the needs of the customers, their wants and the interests of the customers and make sure that the desires of the customers are effectively and efficiently satisfied than the competitors (Christopher 30). This is going to position BioGood in a better position in the market thus getting a big market share in the market. The marketers both the external and the internal must work towards the satisfaction of the customers needs and wants thus targeting market to preserve and enhance the customers and the society as a whole. The aim is to sustain the company together with the customers as the society to achieve a long term success rather than the marketing strategy and thus aiming to improve the customer’s consumption of biodegradable plastic maintaining and improving the society and the consumer needs. Consumer health The manufacture of biodegradable plastic is health to the environment and to the customers and thus the companies that are competitors and those who are rivals to the new company in the market will have to involve a campaign on negative effects of the plastics. BioGood aim is to market organic ingredients that do not have chemicals to the environment and the consumer health in the production of biodegradable plastics compared to the traditional plastic products that were not biodegradable. The high quality products produced by BioGood in terms of health will satisfy the customer’s needs and in mind the company needs and achieve the objective of the society as a whole. Eco-friendly marketing BioGood aim is based on recycled products and organic products that do not have negative effects to the ozone layer under the societal marketing strategy. The use of biodegradable products that BioGood is concerned with is going to be based on the society impact thus getting the potential customers from the society as a whole (Lane 48). The company has to market itself as a recyclable company thus being known for its organic nature compared to traditional plastic that are not biodegradable in nature. Supporting farms and the local businesses BioGood is not going to import raw materials from other countries but the firm is going to get the raw materials from the local sources. United Arab Emirates are known for production of raw materials and thus the raw materials are locally available. The fact that BioGood is going to buy the raw materials from the local farmers give the company an advantage to market products using the availability of the raw materials thus achieving the objective of the company. Additionally, it will ensure that the customer needs of producing non poisonous products that do not only harm them but also that which have no negative effect to the environment. Metrics in marketing plan and implementation Marketing metrics in the marketing plan of BioGood is a set of data that allow the marketers whether internal or external to evaluate the performance of the firm in the market thus achieving the market plans and the strategies to achieve the firm objectives. Since BioGood is a new company in the market, the firm must standardize marketing measurements across the sales the company is involved in, the media in which the firm is operating on, and the biodegradable products to attain the products awareness to the customers. The marketing performance metrics of the products biodegradable products has to increase the competitive ability, thus being able to know the market strength and the weakness and finally come up with a budgetary decision in the market. marketing performance of biodegradable plastic can be allocated marketing investment through the use of return on investment (ROI), return on marketing investment (ROMI) and lastly return on marketing objective (ROMO). Return on marketing investment (ROMI) As BioGood concentrate more on marketing it will then generate revenue and still contribute to the business objective. The marketing metrics used in BioGood has to involve management and the staff thus being able to compare the marketing performance whether is going to take the new company to achievements of the goals, thereby backing the plans and the strategies of marketing. BioGood is a new industry in the market and thus the need to involve return on marketing investment (ROMI) this will make the marketers of BioGood compare the performance of the activities in the marketing area (Powell 56). The aim of this metrics is to make sure the management of BioGood are able to measure the degree in which the company is going to spend in the marketing strategies whether in return will contribute to the profit of the firm thus achieving the goals of the firm. In this type of metric there exist two types of ROMI, long term return on market investment and short term return on market investment. Implementation of the metric The short term return on market investment is going to be implemented on revenue such as market share, the metric is still going to be implemented on the contribution margin and lastly any dollar that has been used in the marketing strategy must be under the short term return on marketing investment. The next is the long term return on marketing investment that is going to be implemented on less tangible products like how to increase the biodegradable plastic products to the consumers. This is going to involve the marketers and come up with the well organized marketing so that the biodegradable products are going to be accepted in the market. Return on investment (ROI) Return on investment is a type of metric that is going to involve profitability of the biodegradable products and thus the metric in BioGood is going to consider the different channel selling of different biodegradable products which in return will increase the firm’s sales thus attaining high profit in the market (Lane 45). The metric still is going to performance of the BioGood against the sales target, thus the metric is going to involve the performance what the customers are getting from the use of biodegradable plastic products and the sales that are going to generate the profit required for the channel. Implementation of return on investment The metric in BioGood is going to be implemented on the sales and the profit. Thus the metric involves the marketers whether internal marketers or the external marketers who are going to use the different types of marketing strategies leading to high sales and profit. Return on marketing objective (ROMO) Return on marketing objective aim is to practice marketing strategies that are going to campaign on the use of biodegradable product to the consumers (Lenskold 47). Return on marketing objective does not consider immediate sales or profit but the aim is the perception of the product at that time in the market. for example BioGood is known to manufacture biodegradable plastics which the customers fear that in future may lead to negative effect to the environment thus polluting the environment, so the marketers has to concentrate on the customers tying to woe them about the biodegradable plastic that are going to be decomposable in nature and BioGood way of preventing pollution to the environment and any negative effect that may occur. Implementation of return on marketing objective The aim of return on marketing objective is not the immediate sales and profit rather it is to change the perception of the customers on the use of biodegradable plastic products thus being acceptable in the market. The marketing campaign is to change the consumers believe about the Company as a whole and the products which are going to be produced. 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