International Marketing Plan for International Skating - Assignment Example

International Marketing Plan AFFILIATION: Table of Contents Distribution Strategy 3 Promotional Plan 4 Financial Plan 5 Financial Figures and Tables 7 References 12 Distribution Strategy Every company has three options when deciding about the distribution strategy for its products; one is when the manufacturer directly supplies the products to the consumers, second is when the manufacturer supplies the products to the wholesalers who then sell to the retailers who finally sell them to the final customers and the last one is one in which the manufacturer gives the products to the intermediary which is the distribution company who then distribute them to the wholesalers and retailers and then finally to the consumers (Bowman, 2007 and De Mooij et al., 2010). The number of skating companies in the last couple of years has increased and it is expected that there will be new entrants in future as well (Bennett and Blythe, 2002). The biggest competitors in the skating industry are Rollerblade, Roces, Solomon and K2 and almost all of them make sure that they are available in all leading stores. International Skating will enter the market by supplying its products to the skate shops that sell the skates and its accessories in the specialty stores. Since its competitors are making sure that they are available in all the large chain stores which are the discount distributors as well. All the three products i.e. Skate Aids, Blade Boots and Skate Sails will be available in all the specialty stores. The reason for choosing the specialty stores is that the target market of Skate Aids is basically the premium market and they will go to these specialty stores to buy these exclusive products. Alongwith these skates, they will be able to buy other accessories as well and make huge amount of profit as well. Hence, this distribution policy will help the company in gaining the competitive edge. Promotional Plan It is already mentioned in the marketing strategy that the company is focusing on the target market that is comprised of health and fitness, recreational and speed skaters. Since the company is targeting all the three sectors and has also developed in accordance with their requirements, it is expected that the company will be able to gain 80% of the market share. The competitive edge that the company has over its competitors is that it will offer product ranges within the reasonable price range so that the skaters can enjoy the most thrilling and exciting skating experience of their lives. The key target market can be said as the one that is trying to remain fit and health and for that they are looking for appropriate alternative to exercise. Since skating is one of the most exciting and thrilling sports, it is now the part of many people’s lives. The target market that the company is targeting comprises of skaters that belong to the speed and health and fitness groups and have an average age of about 34 years alongwith qualification of at least two years of college and earning of about $55,000 per year; it is the market for Skate Sails. The other two products of the company are Skate Aids and Blade Boots which will be targeting every consumer and every segment of skating industry can use them. The company needs to design the promotional strategy keeping in mind three most important factors i.e. target market, medium of communication and marketing budget. Considering the company’s marketing budget, following promotional activities will be done to attract the customers: 1. The company will get its website developed by some professional who will make sure that the site is best from every aspect. The company will do direct selling from the website and it will help the company to earn full price of retail. It will also ease the promotional activities on Internet. 2. The company will sponsor various skating events so that the customers are aware of the brand and will help in getting customers to try out their products. 3. Advertisements of the company’s products will be placed in in-line skating magazines, sports magazines, fashion magazines and other magazines. Besides the magazines, the advertisements should be placed in all leading newspapers and Television Commercials will be run on all leading and well-reputed channels. Hence, the company will make sure that it is targeting its customers from every aspect and is not letting go of any medium so that they are able to increase the customer base. Therefore, it is important that the company has designed a good promotional strategy and should be implemented properly. Financial Plan The main purpose of the financial plan of the company is to give it a snapshot of how the company can achieve its goal of making profit in the long-term. It has already applied for a loan at the bank and the duration of the loan is ten years. The plan of the company is to use the money that is borrowed for financing the first year’s operating capital. If adequate amount will be input in the form of cash, then the company will be able to cover its operating costs and salaries easily. It is expected that the company will be able to achieve break-even point in first year of sales. The company is expecting that the sales will grow steadily till third year; if the sales don’t meet the expected level, then the management will have to add additional capital for six months in the form of $20,000 and it will mean that the company puts it in the form of credit card. Hence the key performing indicators of the company’s financial plans are as follows: 1. The company will manage all the costs and expenses in the form of cash flow. Although the revenue will be bit slower but the sales will increase in future with proper implementation of promotional activities. 2. The inventory turnover is the competitive edge of the company as it will be able to cover the inventory costs with the help of scheduling production on monthly basis. 3. It is assumed that the economy is slowly growing one and there will be less technological innovations in the field. Financial Figures and Tables Break-even Analysis Monthly Units Break-even 100 Monthly Revenue Break-even $130,000 Assumptions: Average Per Unit Revenue $130 Average Per Unit Variable Cost $35 Estimated Monthly Fixed Cost $10,000 References Bennett, R. and Blythe, J. (2002). International Marketing: Strategy Planning, Market Entry and Implementation. London: Kogan Page Publishers. Bowman, J. (2007). Don’t Take the Last Donut: New Rules of Business Etiquette. New York: Career Press. De Mooij, M. and Hoftsede, G. (2010). The Hofstede model: Applications to global branding and advertising strategy and research. International Journal of Advertising, 29(1), 85–110. SGMA (2011). 2011 Manufacturers Sales by Category Report. Retrieved May 24, 2012 from http://www.sgma.com/reports/278_2011-Manufacturers-Sales-by-Category-Report. Read More