Marketing and Financial Plan - Term Paper Example

Marketing and Financial Plan: Enhance How reach the Potential s Enhance should identify its potential customers. What are customers’ interests? What exactly do customers want concerning their product? By doing these, Enhance will come up with a product that the customers have an interest. The method will assure that there is a ready market for their product. Secondly, Enhance should have a connection with other companies. By this, we will be able to source customers from other company. The will increase Enhance number of consumer they reach. Enhance should also partner with other companies that offer a different product. One of company we will partner with is Soft Drinks Company. It will increase our database capacity. When we send a mail to addresses in our database, it will reach many customers. Something else that we will do is it to visit customers at their places. Interact with the potential customers and through that we will get to know what they want in the market. Marketing strategy Using with traditional social media. Enhance should use social media like facebook, twitter and linked to market our product in the market. The will enable Enhance to reach many customer in the market wherever they are (Michalowicz, par.2). Another marketing strategy Enhance should implement is using popular blog sites. The blog sites that are like those for politics are the one Enhance should mainly use. Through that Enhance will be able to sell their idea to many (Michalowicz. Para.3). Enhance should also write some articles and distribute them to several customers and ask them to distribute them to other people. By doing these, many will get to know Enhance new product in the market (Michalowicz, para.4). Enhance should also hire an IT profession who should design for Enhance a website. Enhance should use this website to advertising their product. Many of customers will be through this strategy (Michalowicz, para.5). Product/service strategy Designing a product that is attractive to the consumers. Enhance should make sure that the flavors we are the most wanted by customers. These characteristics will make customers always to ask for it. Secondly, Enhance should make sure that their product is of high quality. All ingredients that will be used are also of high quality. Enhance should make their customers appreciate that their product is of a high quality not by telling them, but them approving it. Another strategy Enhance should use and Enhance have already used, is branding. The name of Enhance product shows what products content is. This makes sure that consumers understand the product without going into details about it. Pricing Strategy One of the things Enhance should do as a company is to set a price that is low and which consumers can afford. By doing that, and ensuring Enhance product is still of high quality, many of consumer will choose Enhance product. This strategy is a good idea since it will increase Enhance market share fast. Enhance should make sure its product’s price is lower than that of their competitors. Something else Enhance should do is bundling its product in packages. The price of the bundled product will be lower than of separate product. These will encourage many customers to buy the product in wholesale. Enhance product initial cost will be reducing time after time. These will make the consumer eager to view our product prices time to time. Distribution plan Enhance should choose several retails out there to selling their new product and promote them to advertise the product to their customers. This strategy is called selective approach. It is a good plan for Enhance new product since it will not cost them much. Enhance should also make sure that their product is always available in all possible outlets. This ensures that if the product from our competitor is not available, ours is available. Advertising and Promotion Since Enhance is a new product in the market, Enhance should publish T-shirts. These T-shirts will contain Enhance products name and the information about the product. These T-shirts should be to each of Enhance distributors. When selling the product while wearing the T-shirt, the Enhance distributors will be advertising the product as well. Enhance should also take an advert to media houses like newspaper and T.V channel. Every good thing comes with a price. Enhance should also use social media like Face book and twitter to advertise. It is a good idea to use all possible way to reach customers. Creating a Facebook page will make the advert reach thousands of consumers all over the world. Enhance should also design billboards on Major Streets in the town. Everybody who visits the city will see the advert and will go to the market to search for Enhance product. Enhance should also promote consumers who buy the product in large quantity. Enhance should come up with a strategy to do promotion. For example, add another product from another company as a bonus. Sales strategy Enhance should ensure that they are real to the consumers. Let the user know you are genuine dealers of the product. Creating a confidence to the customer, will motivate them to buy Enhance product rather than the competitor’s product. The second thing the Enhance should do is to select a real decision maker. The decision maker will decide how will Enhance product be and which people will be involved in the sale. (Heitzman, par2-7). E-commerce E-commerce is a strategy of selling that is online. Enhance should embrace this strategy. A consumer will login Enhance website and order for the product online. The will make many consumer desires to use this web service. This because, it is cheap and time efficient. The customer can buy Enhance product at any time. Part 2: Financial Planning Conclusively, it can be observed that the overall financial model of the company is good because for three years the profitability of the company has been increasing significantly. However, based on the profit margin of the company it can be scrutinized it has remained stagnant at 78.91 percent. It shows that the organization is making a profit at a higher profit margin. It is, therefore, advisable for the company management to consider minimizing variable overheads to start making a profit at a lower margin. Given that it is a new business start-up, the revenues and cost assumptions were made. Some of the revenues assumption made is that, the cash flows were to be from the sale of bottles. For the three years, it was assumed that the revenues that were to be generated will be from the sale of bottles as discussed. On the other hand, the company made cost assumptions. It was assumed that, the company will incur a start-up cost of $180614.09. The cost was to be financed through lottery winning and members’ contributions. The revenue projections were made. It was projected that the company will make an income of $372,500, $546,300 and $653,475 for the first, second and the third year respectively. The revenue assumptions make sense because, it can be the revenues are increasing from one year to the next. In the first year, the revenues were less but as the company grows and acquire more customers the earnings increases. The customer becomes aware of the company existence and its products hence, making the company revenues to increase with time. The number of customers was calculated by taking into consideration the number of bottles sold per year for three years. The reasons that make me convinced by the figures is because the profitability increases with time as the company grow and obtain a large market share. Cost of Goods Sold= opening Inventories Purchases-Closing Stock In this case the COGS=100 %( 498940.46)÷78.91% Cost of Goods Sold =$393713917 Works Cited Michalowicz.M. The 50 best marketing strategies for small business. 11.02.2013. Web.28.04.2015< http://www.mikemichalowicz.com/the-50-best-marketing-strategies-for-small-business/> Lavinsky D. Marketing Plan Template: Exactly What To Include. 9.30.2013. Web. 28.04.2014. The Marketing Mix: Product Strategies. Web. 28.04.2015.nd.Heitzman A.Nd .6 Effective Sales Strategies to Close Deals Faster.Web. 28.04.2015 Read More