A Well Defined Marketing Plan - Case Study Example

Marketing plan for any business whether small or large is a must. For any organization it is a crucial part of their overall business strategic plan. A well devised marketing plan becomes a necessity in this competitive world. A well defined marketing plan when properly implemented can catapult any organization in to the big league. A marketing plan, in a sense, is a vision of future to meet with organization’s growth needs along with generation of cash surplus. Conceptualizing Marketing Plan According to (Peterson 1989), “A more fundamental conceptualization of the marketing concept is that it is a business philosophy which requires that all organization members focus their efforts on customer satisfaction.” (P38). This is true for all organization whether small or big and this is a key to achieve excellence and finally, thriving on that excellence, organization’s profit objectives are achieved. Introduction to My Small Business My small business is related to the development and marketing of herbal medicine for chronic ailments like arthritis, asthma, which when treated with allopathic medicines bring many side effects with them. Doctors prescribe the drugs, which are mostly NSAIDs and are used to provide relief from pain. Although, they are highly effective yet they have severe side effects too. They can instill stomach cramps, drowsiness, diarrhea, heartburn, edema (swelling of the feet), nausea and much of the discomfort. In fact, none of the drug is said to be free from side effects. Over and above, NSAIDs carry a risk of causing heart attacks, stroke, clotting, and kidney failure, if taken for a long period of time. The risk is proportionate to the dosages. No patient would like to suffer such perils after continued consumption of these drugs. If they are given a choice for an alternative herbal medicine; it is certain that they will always switch over to a safer drug where the possibilities of any side effects are not there. My herbal medicines are made from rind of mangosteen, ginger, and many such herbs. My herbal medicines are targeted to those customers who do not get permanent cure from ailments as mentioned above. (See The Columbia Encyclopedia, p-30582) Mangosteen is a naturally available fruit and is said to be a queen of fruits in their growing countries. Extracts of it are used to formulate herbal medicines that work as a potent anti inflammatory. Its extraordinary ability to cure lies in a compound called xanthones, which are abundantly available in the rind of this fruit. Science has found 40 types of xanthones in mangosteen. Thus, this is the most potent source of xanthones naturally available. Xanthones are the most powerful antioxidants provided by nature. Antioxidants are the compounds necessary for our healthy life. They slow the process of ageing and work as potent anti inflammatory gifted to us by Mother Nature. When rind is used to extract xanthones and suitable preparations are made, which are high in xanthone concentrations; you are sure to have a remedy which can take care and cure from all types of arthritis, including Rheumatoid arthritis. Xanthones have been found to work on asthma patient too for the same anti inflammatory effect. They are found to give relief to all type of asthma patient including patients suffering from bronchitis asthma. Mangosteen rind extract is found to work in many other ailments too. It has a rejuvenating effect when taken regularly. It charges the body and elevates the energy level. These products will be marketed as dietary supplement only and U.S. FDA does not offer any opinion on dietary supplements. That is to say that these medicinal formulations will be outside the purview of U.S. FDA. On the backdrop of above details of my small business, I would like to formulate my marketing plan. As Paley (2005) described, “one must have a written marketing plan that constantly keeps you in touch with your current status of the business.” He further quotes “PricewaterHousecoupers Trendsetter Barometer survey” that those who have written marketing plan have 69% more chances of growth in revenues compared to those who have no written plan. (p. 202) Understanding Customer’s Needs Luther’s well known phrase tells us all about the need to know about our customer. “Strive for a holistic understanding of your customers and their needs. Be through–and above all be ethical”. (p. 53-54) No marketing plan can be formulated until one understands customers needs precisely and thoroughly. That helps us devise many things right from product, pricing, promotion, delivery and other services. Peterson (1989) mentions “The marketing concept states that an entity achieves its goals most efficiently through a thorough understanding of potential exchange partners and their needs and wants, through a thorough understanding of the costs associated with satisfying those needs and wants, and then designing, producing, and offering products in light of this understanding.” (p 38) Product Attributes My products from mangosteen, ginger will have a unique formulation to distinguish them from competition. My buyer should be able to discern my product from many perspectives– such as unique formulations with no side effects, superlative benefits like charging whole body with energy, improving immunity of the body system manifold. It is offered with attractive packaging and 100% buyback guarantee for performance. My buyer should be able to comprehend true value of my product for the money they spent. I need to put concerted effort to educate my customers on how they will be benefitted from this product. Positioning My Product I am positioning a product for the patients who are suffering from chronic illnesses of arthritis and asthma and those who have a great penchant to have some alternative medicine, which is safe, free of any side effects and more than that it is capable of enhancing their energy levels. A substantial increase in the body immunity by way of powerful antioxidants has the capacity to cure them permanently, which they can never think of with usual medicines. Educating Customers The Kind of products, which I have, requires a good deal of educating them. My products are some kind of regular consumables meeting their specific needs. If they can understand fully what I am selling and how it can benefit them; my most of the selling efforts will be taken care of. The patient should be aware that here is the product, which is capable to cure them permanently and they can get rid of the current drug, which has serious side effects if consumed for a long time. Moreover, my medicine is likely to offer a permanent cure; though its effects will be noticeable only after a few weeks or months. Present technological development has made it possible to educate my customer through internet. Use of Internet for Educating Customers Duggan (2000) has boldly emphasized the use of internet for effective marketing of products and services. “Internet users are increasing rapidly. A website offers tremendous opportunities to educate my customers at the fraction of the cost then traditional mode of selling and educating potential customers. The Internet has already changed the face of communication in the most dramatic way since its invention. No previous technology has expanded as quickly or as globally as the Internet and this unparalleled growth is predicted to continue to increase with the numbers of users multiplying at an exponential rate.” (p. 58) Social media sites like facebook, twitter, linkedin, has shown how we can communicate at a much faster rate and at a fraction of the cost compared to the any traditional way of communication including print media. Opinions given by the members on any product/services work like a wild fire and take no time to spread. I would like to harness these social sites for the promotion of my product as a multipronged marketing strategy. Duggan and Deveney (2000) states, “A web site offers tremendous potential to an organization, but with so many sites, so many users and so many choices, how to drive traffic to the website?” (p. 58) It is a formidable task to get your website popularized among millions of other sites. A well laid out concerting effort is required for that. This is a difficult task given the fact that there is tremendous competition among the websites to have place on first page of search engine results. Publishing good articles giving unique information on the website and educating masses for keeping fit and healthy is certainly a good way to popularize the site. Unique content in my articles with proper key word selection will make them appear on the first page of search engine results. Appropriate backlinks to my articles will give tremendous impact and will get priority on searches when tried with matching key-word search. In short, I will have to employ a process known as Search Engine Optimization so that my site gets priority when people uses relevant key words to search their desired content and information. (See Backlinks for SEO) My website will also have the testimonials from the fellow users, which will give added confidence to the new users. All this will enhance the reputation of my website and increase the traffic. More traffic will culminate into more customers. Finally, word of mouth will play their role to bring my site at the top in the field of alternative medicines. Internet is going to be my major marketing tool for disseminating information related to my product, company policy, pricing and finally the quick delivery system, which is an important aspect of marketing for any company. (See Fresh Ideas for Innovative Marketing by Gordon, Kim. 2010) Product Pricing People always think of best quality at reasonable pricing. In a typical product like mangosteen herb, I have more leverage on pricing for targeted customers are already spending much higher amount on daily or weekly basis. My pricing will be such that it does not hamper their pockets and it will not be so low that my budgeted cash flow generations are not met with. Product Distribution I have not chosen any intermediate channel partners for the distribution of my product. This being a specialized niche product catering to the specific customers, direct on line buying through my web site will always be a more appropriate proposition. Saving on distribution cost associated with intermediate partners will help me offer good discounts to my long term loyal customers. This is how I would like to have distribution plan for my product. Product Innovation I will continue to have more similar kind of innovative products through my continued in-house development programs so that I have numerous products to offer based on natural herbs harnessed from the different parts of the world. I believe in what Wade (2004) states, “Once I have determined my consumers' psychographics, I will work toward their needs by developing a marketing plan around that profile. Pick what your consumer likes and not what you like, don't rely on one technique, but choose several ideas to determine what they like best. Be open to change and stay aware of how new trends affect your niche market.” (P 34) Packaging the Product I would always like to offer a wide range of packing for each patient’s needs are different. Right from a small packing just for the week’s needs to a packing meeting month’s requirement give my patient a wider choice. This way they can economize on their purchases and save considerable amount buying in bulks. Shipping the product Once I have received payments from my customer, my obligation is to expedite the shipping through reliable shipping agency. My shipping cost will be transparent and economical to display my ethical dealing with them. In all circumstances, I will see that product leave my place within 24 hours of their successful checkout at my web site. Thus, written marketing plan helps establish, direct and coordinate our marketing efforts. Preparing a marketing plan forces us to assess what's going on in the marketplace and how it affects my business. It also provides a benchmark for future measurement. “Often, simply embarking on the process of preparing a marketing plan guides in developing a successful marketing strategy. Just as a road map guides us on a journey, a marketing plan guides us and our staff to reach our goals.” (See marketing plan in Smallbusinessnotes.com) I wish my company to be known as a progressive, innovative and dynamic business enterprise whose mission is to continue developing revolutionary alternative medicines based on natural herbs to cater to the patients inflicted with chronic illnesses. This is also my company’s mission statement. References: 1. Peterson, Robin T. (1989). “Small Business Adoption of the Marketing Concept vs. Other Business Strategies.” Journal Title: Journal of Small Business Management. Volume: 27. Issue: 1. (pp-38). 2. Mangosteen. (2009). in The Columbia Encyclopedia, (Sixth Edition). (pp-30582). Columbia University Press. New York. 3. Paley, Norton. (2005). “The Managers Guide to Competitive Marketing Strategies.” Thorogood London (p 202). 4. Luther, William M. “The marketing plan, Third edition, AMACOM”. (pp- 53-54) 5. Duggan, Maria. Deveney, John. (2000) “How to Make Internet Marketing Simple.” Magazine Communication World Volume: 17. Issue: 4. April/May 2000. (pp 58+) 6. Marketing Plan. retrieved on 11/5/2010 from http://www.smallbusinessnotes.com/planning/marketingplan.html 7. Wade, Marcia A. (2004) "Getting the Word Out-Inexpensively: How to Get the Most Bang out of Your Marketing Dollars." from Magazine Black Enterprise. Volume: 34. Issue:6. (pp-34) 8. Schramko, James. Backlinks and SEO Retrieved on 11/5/2010 from http://ezinearticles.com/?Backlinks-For-SEO&id=1988864 9. Fresh ideas for innovative marketing. Retrieved on 11/5/2010 from http://www.microsoft.com/business/en-us/resources/marketing/market-research/5-easy-steps-to-create-a-marketing-plan.aspx#FreshIdeasforInnovativeMarketing Read More