Marketing Plan for the Slate - Essay Example

MARKETING PLAN FOR THE SLATE Executive Summary Marketing is a very powerful tool that helps manufacturers and dealers of products and services to reach out to customers with ease (Palmer, 2011). With reference to the product lifecycle, it can be said that marketing is relevant at all stages of the product but more importantly is the introduction phase. This is because it is at the introduction stage that more information and education needs to be given out as part of promotion of the product or service (Saunders, 2005). It is based on this understanding that the current marketing plan is considered very relevant in getting a new product marketed in the next three years of its introduction to the market. The product is called Slate, which is customized tablet computer for younger students at the preschool and early childhood level. The marketing plan is therefore to set out the objective for the sale of the Slate in the next 3 years. The plan is based on the current marketing audit of the firm, which is in the tablets market. Based on the marketing audit, appropriate market strategies are adopted to make the achievability of the objectives possible. Contents Executive Summary 2 1.0 Marketing Audit 4 1.1 SWOT analysis 4 1.2 Competitor analysis 5 2.0 Marketing Objectives 7 3.0 Marketing Strategies 8 3.1 Product 8 3.2 Place 8 3.3 Price 9 3.4 Promotion 9 3.5 People 10 3.6 Process 11 3.7 Physical evidence 11 4.0 Measurement Plans and Reviewing 12 5.0 Risk factors and contingency plan 14 References 17 List of Tables Table 1: SWOT analysis for the Slate 4 Table 2: Competitor matrix for the Tablets market 6 Table 3: Measurement with the use of SERVQUAL 13 List of Figure Figure 1: Market share of major tablets manufacturers 5 1.0 Marketing Audit To gain a better understanding of the current market in which the Slate will be marketed, a SWOT analysis is used to examine the internal environment of the company selling the product, and a competitor analysis is used for the external environment of the company. 1.1 SWOT analysis Table 1: SWOT analysis for the Slate Strength Weakness Several marketing platforms to reach out to public and target segments High number of supplier in the industry, helping to minimise the bargaining power of suppliers (De Chernatony, 2002) High market capitalisation needed to successfully penetrate the existing market Difficulty in accessing parents who are the purchasing customers but not users of the products Opportunity Threat There is growing emphasis on the use of technology at early stages of education. Even though there is a call for use of technology at early stages, the issue of content of technology tools remains a concern Existing competitors in the mainstream tablet computer industry may adapt the concept behind the Slate High level of bargaining power of consumers due to availability of substitute products (Gotsi & Andriopoulos, 2007). example of such substitute products are toy computers 1.2 Competitor analysis The competitor analysis is performed for the larger tablet computer market. In the figure below, the market share of major global competitors is given from 2011 to 2014. Figure 1: Market share of major tablets manufacturers Source: Statista (2014) Based on information given in figure 1, it would be noted that Apple, Samsung, Asus, and Lenovo are the three leading global competitors. A competitor array model which is based on the benchmarking theory (Darden & Babin, 1994) is there used to produce a competitor matrix for the four major competitors. The competitor array model identifies four major industry success factors and assigns a weighting for each of them (Chan-Olmsted & Jamison, 2001). Each competitor is then rated based on the industry success factor so as to find the intensity of competitiveness of each competitor. The outcome with the competitor matrix is given below. Table 2: Competitor matrix for the Tablets market Key industry success factor Weighting Apple rating Apple weighted Samsung rating Samsung weighted Asus rating Asus weighted Lenovo rating Lenovo weighted Extensive distribution 4 3 12 4 16 1 4 2 8 Customer focus 3 2 6 4 12 3 9 1 3 Economies of scale 2 1 2 2 2 4 8 3 6 Product innovation 1 4 4 3 3 1 1 2 2 Totals 10 24 33 22 19 Based on the matrix above, it would be seen that with reference to the key industry success factors, Samsung presents the highest competitive rivalry followed by Apple, Asus and Lenovo respectively. The competition from these companies would be experienced if they switch to the product innovation of the Slate, which focuses specifically on early childhood educational syllabus content. 2.0 Marketing Objectives In the next 3 years, the following marketing objectives are expected to be achieved. 1. To obtain an annual revenue growth rate of 13.5% in existing markets 2. To start a new market product penetration in 3 new markets 3. To introduce new product features that enhances the product innovation of the Slate 4. To reduce the cost marketing by 15% as part of a lean marketing strategy 5. To introduce new electronic based distribution channels to enhance the sale of products 6. To adopt the focus strategic option as part of Porter’s generic strategic theory to improve the level of customer focus for the product 3.0 Marketing Strategies In order to achieve the objectives set above, it will be important that some marketing theories and frameworks will be applied in the implementation of marketing practice. In the light of this, the marketing mix, which presents the 7 Ps of marketing is adopted and discussed for use in the context of the marketing of the Slate. Once each of these Ps is effectively utilised, it is expected that there will be value created for the company selling out the product. 3.1 Product According to Dacin and Brown (2006), when using the marketing mix, an important question that the marketer ought to ask is if the product is appropriate and suitable for the market and the customers of today. In this, it can be said without an iota of doubt that the Slate is highly suitable for its target market and the customers of today. This is because the Slate incorporates technology and education, two of which have been noted to be important for the young generation of today (Fox, Donohue & Wu, 2007). What is more, the Slate seeks to add value to the product by ensuring that the content of the tablet is curtailed towards the learning needs of users. This means that questions of children accessing adult content is solved. 3.2 Place Aaker (2004) noted that in terms of place, it is important for the marketer to review and reflect upon the exact location where the customer meets with the salesperson. As far as the Slate is concerned, there is a unique dynamic where the customer is different from the user of the product. This is because parents of pupils will be paying for the product but the pupils will be the users. Because of this, the school is used as a midpoint where the salesperson can have access to both parents and customers. Based on the need to have an effective distribution channel to promote the sale of the product, online sales will also be introduced to cater for the electronic commerce (e-commerce) component of the place to access products. 3.3 Price Pricing of products have been said to be an important process aimed at capturing value in the minds of customers (Aaker, 2004). In the light of this, the pricing of the Slate will be done in a way that emphasises on the perceived value analysis of the product. By this, reference is being made to the need to ensure that the benefits that users get from the product are an exact exemplification of the money, time and effort they put in the product (Van Der Zee & de Jong, 1999). With this understanding developed, a price discrimination that is based on market segment of the pupils will be used. This means that a moderate pricing scheme that come with an average of $49 will be charged per product. 3.4 Promotion Writing on promotion, Scheid (2005) indicated that issues of how the customer is told about the product is emphasised. Sekaran (2003) also touched on the approach to marketing and selling the product as all falling under promotion. In the light of this, promotion of the Slate will include different marketing avenues that are used telling the customer about the product. More specifically, social marketing which deals with the means of creating, communicating and delivering product to influence target audience behaviour will be used (Williams and Saunders, 2006). While using social marketing, particular emphasis shall be placed on the use of social media marketing as it creates the avenue to achieve viral marketing (Gotsi & Andriopoulos, 2007). As part of the viral marketing, people are expected to hear about the product and also transfer information on the product to other potential customers (Homburg, Klarmann & Schmitt, 2010). 3.5 People According to Williams (2007), the people of the marketing mix comprise an array of stakeholders whose actions affect the sales, marketing strategies and activities of the business. This implies that such people as salespersons, customers/users and regulators can be identified for the Slate. As far as salespersons are concerned, the company will emphasise on the use of competency training and development in equipping them for the identified (Kotler & Keller, 2008). The focus strategic option of Porter’s generic strategic theory will then be used on users of the product, where early childhood pupils having the needs of tablet computers will be identified. Finally, authorities of schools where the sales will be done will be targeted as regulators who will have a consent form sent to them to seek formal permission to sell the products in their institutions. 3.6 Process The main process that will be involved with the marketing of the Slate will be to conduct or perform a market research. Porter (2008) found market research to be one of the best processes that can be used in understanding any market that a product is introduced into. The need to undertake market research has been noted to increase when the product or concept being marketed is relatively new (Balmer & Gray, 2003). Marketing to an unorthodox market segment has also been said to require a lot of market research (Lehner, 2004). Meanwhile, the Slate is to be sold as a new concept in the tablet market and among a strange user base which is the early childhood pupils. 3.7 Physical evidence According to Sambrook (2005), branding forms an important aspect of the physical evidence of the product. The Slate is expected to be branded in such a way that serves the purpose of attractiveness and informativeness to users (Williams, 2007). By attractiveness, reference is made to the need to ensure that at the sight of the product, users should have a feel of inquiring more about the product based on its package (Goi & Goi, 2011). Because of the demographic of the target group, the packaging will be done in a way that is catchy and juvenile. By informativeness also, reference is being made to the need to provide sufficient information about the use of the product on the package so that buyers can learn about the product easily (He, Li & Harris, 2012) 4.0 Measurement Plans and Reviewing There shall be two major measurement plans that will be put in place to assess the effectiveness of the marketing plan. This is because Porter (2008) indicated that the outcome of an assessment measure should indicate to marketers the extent of adherence to their objectives in a marketing plan. The first measurement plan will take the form of qualitative measurement where a market based interview with teachers in whose class the product is used for teaching and learning will be conducted. Urde (2003) stated that qualitative evaluations are done to understand the behaviour of people towards a product. It is expected that the behaviour of the teachers will be manifested through the quality and value they received from using the product. The second means of measurement will be based on quantitative approach with special reference to the use of SERVQUAL model. Commonly used for evaluating services (Saraphina, 2008), the SERQUAL will ensure that the quality of service delivery in selling the Slate will be known. The SERQUAL is expected to give marketers a quantitative measure of service quality based on expectations and perceptions of customers including tangibles, reliability, responsiveness, assurance, and empathy (Batra et al., 2000). For each of the expectations and perceptions, multiple-item scale will be given to teachers and parents who shall assess the product and its service delivery from the indications given in the table below. Table 3: Measurement with the use of SERVQUAL Expectation and perception Service Tangibles Colours of the Slate Size of the Slate Design of the Slate Weight of the Slate Reliability Durability Dependability Accurate performance Responsiveness Promptness of marketers and salespersons Helpfulness of marketers and salespersons Depth of from sellers Assurance Courtesy from marketers and sellers Credibility in the company Security of users Competence of marketers and sellers Empathy Easy with access to marketers and sellers Good communication from marketers Customer understanding among marketers Based on the outcome of the measurement that will be performed, there shall be quarterly revenue of the marketing strategy and overall marketing plan to ensure that the outcome of the marketing process is best aligned with what is targeted for the company (Li, Guohui & Eppler, 2008). Adopted from Parasurman, Zeithaml & Berry (1988) 5.0 Risk factors and contingency plan The marketing and sale of the Slate is expected to come with some levels of risks, for which necessary contingency measures will be put in place to salvage them. In order to incorporate theory into the risk factors and their contingency plans, the VRIO framework is used to identify possible risks. The VRIO framework answers questions on the value, rarity, imitability and organisation of the product (Kuusela, 2003). Value: As far as value is concerned, it is important for the company to identify any opportunities for growth. Based on this, Stokes (2005) identifies possible risk with competitors presenting higher value products based on product quality. The risk becomes higher if these high value products come at same prices or lower prices than what is offered. A contingency plan will be developed to neutralise external threat with sales capability by examining market values and prices to ensure that the value and price of the Slate is at par with those. Rarity: Rarity explains the extent of control of resources and capability within the domain of a few people (Pauwels Raluca & Descotes, 2012). On this basis, it can be said that there is high risk for the company as there are several competitors in the tablets market who can easily switch to the idea of the Slate. As the capability and resources for the Slate could be made available to other firms within the tablets industry, it is important that some contingency plan be put in place to minimise the risk. This will be done through product differentiation. As noted in Porter’s generic strategic theory, differentiating a product ensures that even when others offer the same product, the extent of differentiation will create competitive advantage by making customers choose the product that comes with additional specifications and features (Lehner, 2004). Imitability: This dimension explains the extent of difficulty in imitating the concept of the firm (Chan-Olmsted & Jamison, 2001). Certainly, most companies in the tablet market have their attention on mainstream tablet computers which do not differentiate adult needs from children needs. This however does not mean that the companies cannot easily imitate the idea of the Slate. The risk of imitation is therefore high due to advances in technology that can easily be used to replicate software to serve the purpose of the Slate. To address this risk, emphasis shall be placed on different forms of promotion that can attract customers to patronise the Slate, other than the mere function of the Slate. Some of the promotional avenues to be used will include offering free after sales services to schools buying the products in bulk for their pupils. Organisation: The last risk pertains to organisation, where the question of how well the firm is positioned to exploit resources and capabilities is asked (Thomson, MacInnis & Park, 2005). As risk factors are being considered, it is very important to ask if the level of organisation among competitors can be said to be threatening to the current firm. Based on this, it would be acknowledged that there are more organised competitors such as Apple and Samsung. 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