Marketing Strategy for a New Product - Admission/Application Essay Example

Marketing strategy for a new product Pyramid solutions, Inc. Introduction Pyramid Solutions,Inc is a manufacturing company that deals with bundled products. The products are shampoo, soap, and skin care lotions. After manufacturing, they are packed into bundles that are small, compact and easily affordable by BoP market. The company operates under a mission statement that states its position and purpose. The mission statement stipulates that the purpose of the business operations is to bring new opportunities to the worlds most impoverished population. The company uses the criteria for balance of payment to create markets for its products. The criterion is useful in that it creates markets from existing needs. The BoP is a socio-economic concept that allows the company to group the vast segment of the worlds poorest citizens. The citizens constitute an invisible and un-served market. BoP defines the population of the country living within the means of $2.5 and below per day. Per se, the company initiates a country to country comparison approach to determine the BoP. Peru leads the comparison with a major figure of 31.3 % followed by Brazil with a significant value of 28 %. The products supported by several factors such as being green products. The company abides by the ethics and laws of every state it establishes a market. It has put in place strategies to deal with issues of social responsibility and sustainability. The companys target market is Brazil. Several reasons exist that make Brazil fit the market category of the company. One of the factors is that Brazil has one of the major markets for cosmetics and personal care in the world. The second reason is that Brazil observes fashion very much, and it is eco-conscious. Over half of the Brazilian consumers care about the environment. Before purchasing cosmetics, they research on their impacts to the environment. Implementation and control Strategic marketing plan will be developed under three phases: planning, implementation and control (Doole & Lowe, 2008). Successful creation of the process will ensure that the company attains its success in the development of a marketing strategy. The marketing plan is aligned with the core business growth strategies. In the evaluation of the new opportunities in Brazil, the company management tries maintain focus on the values and goals they have for the business. The strategy is aligned to match the mission statement in order to attain the marketing objectives. The company has strategically placed three key functions to reach its target market and expand through the entire region. The first strategy is the expansion of the consulting team in the southern region of Brazil and eventually in the whole area. As the team put in place gains experience working together across the whole region, Pyramid Solutions will add new consultants who will bring various skill-sets to the company. The company aims at opening additional centers where customers can access and get additional ‘point of contact services. The products sent to the market act as new products due to the new packaging strategy. The team members participate in promoting awareness of the products and the key advantages of the products to all the potential customers. The company aims at introducing new services to the small business clients. The company looks forward to cooperating with any factors that will facilitate its acquisitions of the targeted markets. The implementation phase involves assignments that will address the -who, where, when and how of reaching the goals of Pyramid Solutions. The process makes up the second step in the marketing process that will be adopted (Doole & Lowe, 2008). The implementation phase will involve putting up the marketing design, execution and scheduling into development. The phase will include giving specific tasks to business human capital and timelines to individuals and groups. The company employees will be allowed to execute the marketing program and release Pyramid Solutions products and services to the customers and the general public. The implementation process for the strategic marketing will translate into policies and procedures in different areas of Pyramid Solutions. These areas include marketing, procurement, human recourses, research and development, information systems and production. The company benefits from the advantages of having a top visible leader (CEO) in the Brazilian environment which helps the company by disseminating quality communications on the necessary implementation steps. Every individual in the organization is mandated to carry out specific roles, and every position forms a significant part of the overall output. The company instills performance measuring tools so that it can encourage all the employees to focus on capturing the markets. The company also employs the help of a strategic map that aids in identification of key ingredients that direct the organizations performance. Implementation of the various elements of the program requires skilled people (Doole & Lowe, 2008). Sufficient time and money will be allocated to the projects to prevent inefficiencies along the implementation process. The company has installed the appropriate technology and management systems to help in the tracking down the progress. It also ensures that the workforce is comfortable with the plan and motivated to succeed. Objectives The company is dedicated to maintaining an atmosphere that emphasizes on professional treatment for the customers and the public. The objective is places as a high priority item because it is consistent with the values of the mission statement and the motto of the company. The company develops a complete prototype which meets the Brazilian regulatory standards, and consequently the international standards. The company also aims at becoming the specialty soap, shampoo, and body lotion of choice for the BoP across the entire Brazilian region. The company aims to achieve profits of 10 % after every two years in business. The company aims at expanding its territorial boundaries to other regions of Brazil and later to other countries with the low-income population below $5.5 per day. Standards The excellent quality of the company products is fundamental to the success of the business. The company has sufficient experience in the manufacture of soaps, shampoo and body lotions (Christopher & Payne, 1999). It is a significant deal for the company to maintain the quality of these products. All the incoming raw materials are checked for purity, color, odor as well as composition to determine optimum process conditions. The quality of Pyramid products is an important aspect of the business market entrance. Pyramid Solutions is offering superior products that have so far attracted enormous praise due to the packaging strategy. The lotion has received approval from the beauty experts enabling the company to achieve strategic position in the caliber of quality production (Christopher & Payne, 1999). Several factors make the company stands out as a manufacturer of quality products. The company engages in particular research and development in order to meet the needs and demands of the target market population. Pyramid enjoys efficiencies attributed from the qualified staff maintained in its operations. The company benefits from trusted suppliers of raw materials who supply quality raw materials. Pyramid Solutions also maintains stringent quality checks to ensure that any product sent to the market conforms to the manufacturing standards. Competitor analysis Brazil has the largest market for beauty and care products. Consequently, the amount of competition is likely to be high. Brazils population is colossal estimated at 170 million people. The southern region is expected to house a population of about 73 million people. The main competitors are the traditional soap producers. Per se, many companies in Brazil realize that the soap is an essential commodity for the livelihood of many people. Traditional soaps use the technology of pleasant scent and dyes to encourage hand washing compliance and for other uses. The largest soap and detergent producer is Dial Corp hence Pyramid Solutions anticipate significant competition from the company. The company has a track record for consistently achieving high sales. The company enjoys a strong market share in the southern region. It produces a wide variety of shampoo and soap products. The company has maintained 18 % of the market share over the last decade. Competitive advantages for Pyramid Solutions The companys competitive advantages include its targeted market. The company will introduce a cheaper solution for families living at the wage levels of $5.5 and below. The main advantage is that the products are of high quality; hence, they are worth to use. The company also enjoys active operations and efficient sales and marketing strategy. The company has several advantages when it comes to purchasing, manufacturing, distribution, and marketing. The company also offers specialized products to the customers. It also provides superior customer services or serving the entire southern market. The external market environment Economic environment Brazil has experienced cycles of recession and recoveries over the past 15 years. The significant change happened with the introduction of the new currency. The new money controlled inflation leading to a boom that mainly benefited the low-income consumers boosting their purchasing power by 27 %. The results reflect the ability of the people to purchase the products offered to them for as long as the products meet their expectations. Socio-cultural The illiteracy levels in the southern region of Brazil are significantly high. Per se, the gap between the educated and the illiterate will create an impact on communication strategies that the company will adopt. Even so, the company reflects many of the southern Brazil values in its endeavors. The Brazilians value greetings anytime they seek services at any of the offices or outlets of the company. Consequently, the company will motivate its staff to engage in promoting the standards and ethics maintained by the Brazilians as part of their cultural practices. Technological environment The technological environment is changing (Bennett & Blythe, 2002). Consequently, the company is mandated to keep up with the current technologies in manufacturing, distributing, packaging, advertising and marketing. Internet growth continues to impact how customers shop. A significant number of customers have embraced the online shopping model in purchasing products. Political and legal environment Different nations maintain their different rules on manufacturing processes and quality of manufactured products. Therefore, the company is obligated by these laws to act with the knowledge of their existence. S.W.O.T and key factors for situational analysis Strengths Pyramid Solutions, Inc. benefit greatly from its marketing skills impacted to the company by the personnel under the marketing department. Second strength is the company efficiency when it comes to communication. The company enjoys local presence in major markets hence bound to do well in the southern Brazilian market. The target group analysis is also an internal power for Pyramid Solutions. The company benefits from entrepreneurial relationships. The company has strong ethical principles and high standards for staff and services. Weaknesses The number one weakness for the company is the fact that founders work on full-time jobs. The other weakness for the company is little experience in engagement to the local communities. Lack of business knowledge forms another weakness for the company. Opportunities The competitors in the market established by the company are few. The Brazilian culture supports beauty; hence, creating a market opportunity for the company products. The company products are significant in many ways creating fast-moving products. The company benefits from constant technology changes. Threats The main threat is categorically how the product will be accepted in the southern markets. The company will also face the threat of rising interest rates in a foreign country in order to encourage local manufacturers. Marketing strategy The company employs different marketing strategies to attract customers and non-customers to try their products. The marketing strategy of Pyramid Solutions has been developed with scrutiny to the internal and external environments. The internal factors determining the policy include the marketing mix and marketing mix modeling. Other important factors include the performance analysis and strategic constraints. The most valuable marketing strategy employed by the company is the pricing strategy. Pricing strategy Pyramid Solutions will work on a fixed pricing structure that will simplify billing to clients. Pyramid will determine the standard pricing structure for each packaged products based on the targeted market. Customers will be given the choice to decide which packages to purchase. The packages will vary in size according to the sizes of the individual products. Pricing structure will be based on the BoP set at $ 5.5. The company will engage the differentiation method where it will develop a beauty care kit aimed to the low-income consumers (Bennett & Blythe, 2002). Distribution strategy The company will also employ the distribution strategy where the initial focus will be the triangle area of southern Brazil. The company aims at securing its first client successes then expand to other areas. The company will place consulting teams to these regions before expanding there. Promotion strategy The company aims at introducing different cultural interaction engagements and business charters that will create an awareness campaign for the company products. The company aims at introducing entrepreneurial developments such that it assists the locals in their personal development. In the distribution objectives, the company aims at helping small companies start moving in the right direction (Peck, 1999). The company will engage in the local presence for availability and minimization of costs. Participation in community events will also build one of the strongholds for the company promotional strategy. It will build its reputation by maintaining contact with the communities. Implementation and control The problems to overcome on the implementation process include hiring special employees who can handle the plan as outlined. The employees are necessary to staff extended office hours. Per se, the additional in employees list will create additional costs to the company (Peck, 1999). The company will need to establish offices at different places in the southern region. Consequently, the offices will require receptionists and other employees. The additions will also increase the costs for the company. Control The marketing plan objectives are to outline the specific strategies that will be used to win the targeted market (Wilson & Gilligan, 2005). The goals will be monitored on a monthly basis by the company officers designated at different points in the southern region. The company dedicates its recourses to ensuring that the customers receive individualized care. The aspect will undergo sufficient monitoring so that it can be gauged on performance parameters. The company is dedicated to following the market trends and the customer preferences in all the consulting points it will establish so that it can maintain customer choices. Budget and sales estimate The marketing plan related items will include: Satisfaction survey cards for customers $250 Brochures describing the sales of different packages 760 Website design and all associated costs 1250 Advertising costs 2500 Office establishment expenses for consultation 3600 Consulting establishment points 1600 Timing of implementation Date Activity Responsibility November Developing the consultation points across the entire region Consultation teams of two employees in each post December Publication of different advertisements across different media platforms in the entire region. Print brochures The managers in the human resource department January Meet the web designers Attend different community functions Marketing staff February Develop the satisfaction survey cards for customers Marketing staff March Develop different activities to run an awareness campaign Marketing staff April Initiate an entrepreneur meeting to help the small business and create awareness among them Marketing staff May Print catalogues with different prices for different categories of products Marketing staff Jun Initiate a customer awareness trade-fair meeting Marketing staff Contingency plans The company has ensured that measures are in place to re-evaluate elements of this plan or to come up with an alternative plan in the event that the market conditions change. The contingencies are as addressed below: The difficulties of settling the consultants in their designated places: the company anticipates that there will be no challenges in settling the consultants. In case of any challenges, the company anticipates developing other measures that may suit the situation better. New competitors entering the market: the entire population of southern Brazil may change their preferences in the case of an entrant from a new competitor. The company has contingencies to ensure that it will remain on top of the market. Per se, the company will employ every positive marketing strategy that will ensure the customers prefer its products. Such marketing strategies will include offering promotions. Reference Bennett, R., & Blythe, J. (2002). International marketing: Strategy planning, market entry & implementation (3rd ed.). London: Kogan Page. Christopher, M., & Payne, A. (1999). Relationship Marketing Text and Cases. San Diego: Butterworth-Heinemann [Imprint]. Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation. (5th ed.). London: Cengage Learning. Peck, H. (1999). Relationship marketing strategy and implementation. Oxford: Butterworth Heinemann. Wilson, R., & Gilligan, C. (2005). Strategic marketing management: Planning, implementation and control (3rd ed.). Amsterdam: Elsevier/Butterworth-Heinemann. Read More