Integrating Marketing Communications - Assignment Example

Please check this most recent file as you are not reviewing the messages I sent you on the Message Board Section/# Title: Lynlicious Marketing Plan Part C Developing LynLicious Pricing and Distribution Strategy: As a function of developing LynLicious’ pricing and distribution strategy, it will be necessary to price the products nominally more expensive as compared to many of the alternatives. Although it would be nice for the brand to come into the market as a low-cost leader, the potential for this to take place is greatly reduced; due in part to the fact that high initial startup costs in tandem with a heavy level of initial investment will ultimately decrease the amount of leeway that the firm might otherwise have with respect to setting a low-cost leader price strategy. Additionally, in terms of distribution strategy, it will be effectively necessary to engage with existing supply chains rather than utilize or create a dedicated LynLicious supply chain for the company. Once again, the underlying reason behind this has to do with the fact that the creation of dedicated supply chain and distribution strategy would create an unnecessary cost burden on the firm; especially in the opening stages of business development and growth. Within this dynamic, it is easy to understand why the firm would be fundamentally fearful of accruing an unmanageable level of cost with respect to a dedicated distribution network as opposed to seeking to contract existing distribution suppliers to fulfill the needs as they are exhibited by the market. Providing Marketing Strategy Information: Direct and major competitors to LynLicious Lynlicius will be competing with some of the most well represented and powerful shoe and fashion designers within the current market (Shi & Liu, 2012). For instance, New Balance, Esprit, Clark’s, and a litany of others already compete within the market for fashionable shoes that exhibit at least some certain level of comfort. Naturally, comparing this to which competitor is able to maximize both of these goals, the reader can adequately understand that the competitors strengths and weaknesses very commensurately. For instance, Clark’s focuses most heavily upon comfort with only a small level of focus on style; shifting or varying different product lines only minimally from season to season or year-to-year. By means of contrast, new balance is more of a workout and training fashion and shoe provider; one that does not necessarily place a high level of focus upon form and fashion with respect to the professional woman (He et al., 2014). Lastly, Esprit is perhaps the most relevant competition that exists within the market; due to the fact that the company places a high level of focus both upon form and fashion. However, the relatively low quality and high cost that this particular brand exhibits is something that will work in LynLicious’ advantage. Differentiation Strategy: From the information that has been presented thus far, it is patently obvious that LynLicious will ultimately achieve success based upon the level that it is able to differentiate its products from those of the closest competition. Accordingly, from the discussion above, the competition that might be presented by firms such as Esprit denote the fact that LynLicious will find it necessary to focus consumer attention and marketing based upon the fact that the firm not only seeks to maximize comfort and style but does so on a platform that is of superior quality (Kim & Wang, 2014). By leveraging Esprit’s ultimate weakness, LynLicious will be capable of asserting a dynamic presence within the market and effectively speaking to the needs, wants, and desires of consumers within the market. Likewise, in terms of whether the company seeks to be a leader or a follower within the market, the business approach that has been specified elsewhere within this marketing brief and positioning document illustrates the fact that it will be necessary for LynLicious to be a leader; maximizing both fashion and comfort within an industry that does not normally place these considerations high among its list of priorities. Similarly, it cannot be expected that the status quo will continue to define the way in which LynLicious engages with the market. For instance, changes in the tax structure that small enterprises are responsible for paying, attributed to the realm of legal and political dynamics, could have a disastrous impact on whether or not the firm is able to establish itself effectively or not. Likewise, threats with regard to technology, especially related to logistics and/or the technology of sole design and comfort, could also put LynLicious at a distinct disadvantage; as the firm would not have the financial resources to engage with these shifts to the same degree or extent as would the competition. Environmental threats relate to the way in which society might interpret the way in which small firms such as LynLicious engage in waste creation and disposal. Further, social concerns and threats that might affect the firm relate to the way in which LynLicious is responsible for establishing ethical considerations for the workforce it employs; both domestically and overseas. Economic issues that might impact upon the firm could of course relate to the rate of growth that the economy continues to exhibit; and/or whether or not credit is cheap and available during the initial development of the brand and its drive towards profitability. Marketing research tools that can be utilized will be concentric upon polls and other electronic enabled levels of engagement that will help to denote the level of interest that specific consumer groups might exhibit. The reason for this marketing analysis/tool being used as compared to others is the fact that LynLicious will have very little discretionary funding that it can devote towards understanding what marketing approach might be best; especially within the early stages of the process. Implementation Strategy 1: Survey of market – 2 months 2: Perform an analysis of consumer needs based upon the demographic study and feedback – 3 months 3: Hire design and comfort specialists – 6 months 4: Work to synthesize these two processes into a single and attractive product – 6 months 5: Determine what necessary primary materials will be needed – 1 month 6: Contract production units; estimate sizes and types of initial orders – 1 month 7: Engage logistics inquiry – 2 months Development of a 5 Year Expansion Plan: The five year expansion plan will be predicated on the success of the individual store that opens within the Washington D.C. metro area. In the event that the product is in high demand and consumers are rapidly engaging with the stock that the company orders, it will be necessary to plan further expansion elsewhere throughout heavily populated centers around the nation (Bagan, 2010). As compared to several low cost leaders that have been able to achieve a level of success by offering their shoes to customers within relatively sparsely populated regions around the country, the focus of LynLicious will be such that the new stores, if they open at all, will need to be represented within markets such as NYC, Chicago, and/or Los Angeles; areas in which a high number of professional women are seeking to fill the void between fashion and comfort. As such, of all these markets, Chicago will be the one that will be targeted for further development if the Washington D.C. store exhibits a high degree of success. The underlying reason for this has to do with the fact that th existing supply and logistics that is able to supply to Washington D.C. store will not need to be altered significantly as a means of fulfilling a Chicago, IL store’s needs. Further, a NYC location and a Los Angeles location would be opened within the 5 year time frame; but not until such a time as the secondary location in Chicago was able to return a level of profit and looked poised for expansion itself. By allowing adequate time to engage with the market, the firm will not run the risk of spreading itself too thin. Social Media Tools that will be used in the Development Plan: The first tool that will be utilized is of course seeking to engage with the maximal number of stakeholders by offering unique discount codes that can be used by an individual that hears of the firm via social media. The benefit of this is twofold; first, it allows for the customer to engage with the firm and second it creates a psychological connection for the need to “follow” the brand in order to achieve even further cost savings in the future. Secondly, social media will also serve as a direct platform for advertising (Garaizar & Reips, 2014). By achieving a following and providing YouTube videos and other direct levels of engagement on different social media platforms, the company will be able to cost effectively promote the brand and engage with a maximum number of consumers. Potential for Overall Performance: Based upon the objectives that have thus far been related, it is the expectation of this particular analyst that the potential for overall performance that LynLicious might be able to realize is quite high. The underlying reason for this is that the firm is seeking to make a calculated entrance into a market by offering a good that few others have yet been able to effectively and efficiently create for the consumer (Warrick, 2014). Moreover, by being very mindful of the investment that is required for each and every stage and engaging in a conservative plan of implementation, the overall amount of time that the firm has to make money and prove itself profitable is further increased. Standards and Controls: Two performance standards that will be utilized as a function of determining success will be contingent upon overall volume of store sales and the overall volume of internet sales. Likewise, monitory standards that will be used to gauge success will be predicated upon meeting costs each and every quarter and seeking to growth at a 10% per location rate. Finally, financial controls that will be employed will be concentric upon ensuring that alternative means of delivery supply are exhibited and stock is kept at a bare minimum to facilitate heightened sales and faster turnaround of volume on hand. Integrate Marketing Communications: Likewise, in order for the plan to succeed, an overarching goal of markeitng communications must be in effect. The constraints of the project mean that broad based marketing is not possible. As such, seeking to integrate the viral marketing plan in terms of gorilla marketing and how this can create a seemless vision for what the firm offers and how it can fulfill the utility of the customer is essential. Because of this, it will be necessary to provide a branding approach that focuses specifically, and aruably solely- upon the benefits to the consumer that both fashion and comfort can have. Rather than seeking to accomplish this based upon celebrity endorsement or other expensive advertising/marketing approaches, direct/first hand experience based upon social media outreach and other low cost efforts will be the most effective towards delineating an integrated marketing communications platform. References Bagan, M. (2010). Movin On Up. NAFE Magazine, 33(2), 25-27. Garaizar, P., & Reips, U. (2014). Build your own social network laboratory with Social Lab: A tool for research in social media.Behavior Research Methods, 46(2), 430-438. doi:10.3758/s13428-013-0385-3 He, Z., Cheng, T. E., Dong, J., & Wang, S. (2014). Evolutionary Location and Pricing Strategies in Competitive Hierarchical Distribution Systems: A Spatial Agent-Based Model. IEEE Transactions On Systems, Man & Cybernetics. Systems, 44(7), 822-833. doi:10.1109/TSMC.2013.2290506 Kim, M., & Wang, I. (2014). Dynamic product differentiation strategies: an examination of the interplay of firm and industry characteristics. Technology Analysis & Strategic Management, 26(8), 959-983. doi:10.1080/09537325.2014.925106 Shi, B., & Liu, J. (2012). A Decentralized Mechanism for Improving the Functional Robustness of Distribution Networks. IEEE Transactions On Systems, Man & Cybernetics: Part B, 42(5), 1369-1382. doi:10.1109/TSMCB.2012.2191774 Warrick, D. D. (2014). What Leaders Can Learn About Teamwork and Developing High Performance Teams From Organization Development Practitioners. OD Practitioner, 46(3), 68-75. Read More