Marketing Plan for the Company G - Report Example

Company G Table of Contents Table of Contents 2 Introduction 3 The Vision & Mission ments 3 Market Objectives 3 Competitive Situation Analysis 5SWOT Analysis 7 Marketing Strategies 9 Tactics and Action Plan 10 Monitoring Procedures 11 Bibliography 13 Introduction This report aims to develop an appropriate marketing plan for the company ‘G’ to market its quality products in the small appliance market. The Vision & Mission Statements Vision The company aims to build a brand around substance. The company would drive to emerge as a globally recognized esteemed company through product and cost differentiation by incorporating innovation and economies of scale. The vision is to be the home of world class systems and procedures which would bring in delight of the stakeholders. Mission The main goal of the company is to benefit the society through continual innovation, operational excellence, enhanced quality, development and enhancement of the human resources. The company strives for excellence in each of the product, it offers to its customers. Market Objectives Target Market The company is well established in the electronics market. Now, they have come up with enhanced quality small appliances. In this case, the target market would be the households are United States. With the enhance quality in the family lifestyle, more and more households are in need of small appliances to fulfill their daily requirements. Undoubtedly, when an established organization like G would come to offer small appliance, they can target their existing customers’ base in the earlier products. The satisfied customers of the company may emerge as a significant consumer base for its top quality small appliances. Product Objective The company aims to offer quality products to its customers. The company is an established name in the electronics products. So, it would not be wrong to say that the company has a strong customer base. The company is required to maintain its quality and commitment while moving in another segment of small appliances. The products should be of high quality and must match the standard of earlier electronic products, if not better than that. In this case, the objective of the company should be to offer a high quality product to its customers, so that in turn the organization would be able to fetch a strong position in the strong appliances market. Price Objective The company must aim to offer the products at competitive pricing. This would not only help the company to achieve a large base of customers. In other way, the company would be able to survive the competition in the small appliance market by cost differentiation strategies. The company must aim to keep the price affordable to cover a large number of customers. Place Objective The place objective of the company is to develop a distribution channel through which it would be possible for the company to reach at a wide range of potential customers. Promotion Objective The company’s promotion objective is to carry out such promotional activities to attract a large number of consumers. All these objectives should be in line with the company’s overall objective to offer successful small appliances at affordable prices with strong distribution channel and effective promotional activities. Competitive Situation Analysis Consumer Product Classification Consumer products are the good which are purchased for personal consumption. The consumer goods can be classified in three segments: Convenience goods, Shopping goods and Specialty goods. Convenience goods are inexpensive frequent purchases, demanding little effort to purchase them. Shopping goods are the products with high risk level. The consumers would like to assess the features and price of the products before purchasing them. Specialty goods are expensive and hence, purchased infrequently. The consumers would conduct extensive research before buying any specialty product. In maximum cases, the products are bundled with extensive warranty packages. The company’s products would fall in the category of ‘shopping products’. The consumers would look for best features and price of the products while purchasing the small appliances. Analysis of Competition using Porter’s 5 Forces Model ‘Porter’s five forces’ analysis is done to analyze the forces influencing the Small appliance industry in the United States. Competitive Rivalry: There are several organizations operating in the small appliance industry. Moreover, globalization has intensified the competition at a much larger scale. The companies in US do not only have to compete with their local counterparts as well as the global companies operating in the same industry. The companies from China also operate in the US industry. The Chinese companies are offering products at much cheaper prices than their US counterparts. So, competition is quite intensive in the industry. Threat from New Entrants: Manufacturing of small appliances requires expertise in this segment and at the same time demands considerable amount of capital as an investment. Moreover, the larger existing companies would be able to be benefitted from economies of scale in their production scale. As a consequence, these companies can offer products at competitive prices. The new entrants may have to face issues in these cases. So, the threat of new entrants is medium in this industry. Threat from Buyers: There are a large number of products in this ‘small appliance’ industry. Adding to the US companies, there are a large number of Chinese manufacturers offering different small appliances in the US market. The consumers have got an opportunity to choose from a wide range of products. The switching cost from one manufacturer to another one is quite low. As a result, the threat from buyers is quite high in this industry. Threat from Suppliers: The industry has a large number of suppliers. The companies would not have to incur much cost to switch from a supplier to another one. Hence, the threat of suppliers is quite low in this industry. Threat from Substitutes: The small appliances do not have any substitute. However, Chinese products are also there to take the place of the US small appliance products. So, the threat of substitutes is low to medium. SWOT Analysis In this segment, SWOT analysis is carried out for the company to evaluate its strengths, weaknesses, threats and weaknesses. STRENGTHS *indicates core competency The company surely has the required expertise and skill set to produce small appliances. * The company has an efficient operation line which is able to produce quality products with large economies of scale. As a result, the company is able to offer the small appliances at competitive prices. * The company has a well established brand name in the Electronics products segment. The company has strong cash flow position to support its new venture. WEAKNESSES The company is pretty new to the small appliance segment. The company would offer quality products which may demand a higher price compared to other Chinese products. Loss in one segment can adversely affect its brand name in other segments. OPPORTUNITIES The company has new extended segment as well as extended customer base to operate in. The company can fetch maximum usage of its human and other resources required for small appliances. THREATS The company has enough threats from its existing competitors in US and the counterparts from China. Recent recession has reduced the purchasing power of the consumers. This can put an adverse affect on the company’s sales. Strengths The company ‘G’ operates in Electronic product segments. The company has well established name in the same. It would not be wrong to say that the company has enough expertise to develop small appliances of enhanced quality. This can be thought as a core competence of the company. Moreover, the company can utilize its brand name to sell of the small appliances to its existing customer base. The company’s production line is pretty efficient to manufacture products with higher quality and at a larger scale. In this way, the company would be able to create cost differentiation with its other counterparts. Ability to offer quality products at a competitive price is another core competence of the company. From the selling of electronics products, the company has a significantly large cash flow. This can be used as a capital in the small alliance business, they are opting for. Weaknesses The company is quite new to the small appliance segment. Undoubtedly, the company would lack in the required experience and knowledge about the market and the customers in it. This can be a key weakness of the company. The company aims to offer quality small appliance products which may demand a higher price compared to other Chinese products. This can be a key weakness of the company. Moreover, adverse customer feelings in one segment can adversely affect its brand name in other segments. Opportunities As the company aims to offer its products in the new segment of small appliance market, the company can be benefited from extended customer base. At the same time, the company has an opportunity to extend its market share further and enhance its cash flow. At the same time, the company can also fetch the opportunity to utilize its talent pool and other resources at the maximum level. Threats As of now, the industry has many small appliance manufacturers. Moreover, the companies also have to compete with their Chinese counterparts. The Chinese companies can offer products at much lower prices because of their low labor as well as low material cost. Hence, this can emerge as a significant threat for the US small appliance manufacturers. Recent recession has reduced the purchasing power of the consumers. This can also create an adverse situation for the company. Marketing Strategies The product marketing mix consists of four elements including product, price, place and promotion. The strategies must be in line with the company objectives. Product Strategies The product is required to be of enhanced quality and a display of innovation and creativity. A market analysis can reap good results to assess the customer requirements regarding the attributes of such appliances. The product must fulfill all the consumer requirements with enhanced quality and excelled innovation. Price Strategies US consumers are now-a-days lured by the cheap Chinese products. At this time, the US companies would have to compete high to attract the customers. Hence, the strategy should be to keep the cost as low as possible. The company must operate efficiently, so that it can save on the cost by having large economies of scale. Place Strategies The company must build up its distribution network to reach to the target customer base. The company must maintain a strong relationship with the dealers, so that they can push for the company’s products with more efficiency. The company is required to have a strong supply chain network to market the products. Promotion Strategies The company is required to carry out various promotional activities to promote its products. The company can give advertisements on the print as well as digital media. The company can advertise on the newspapers, magazines, television and radio. The company can also organize promotional events to endorse its products. However, in this case, personal selling is supposed to be the most significant way to promote its products. Tactics and Action Plan The company aims to incorporate the strategies and actions within 1 – 3 years. In this segment, an effort has been taken to identify the actions and estimate the due date of same. Product Action Plan Tactic Due Date Responsible Party Analysis of the product requirements March, 2011 Product Department Accumulation of the required resources April, 2012 Procurement Department Manufacturing of the products October, 2012 Production Department Testing of Products October, 2012 Quality Department Price Action Plan Tactic Due Date Responsible Party Cost Analysis April, 2012 Finance Department Analysis of the industry prices April, 2012 Product Department Deciding on the market price May, 2012 Product Department Place Action Plan Tactic Due Date Responsible Party Establishing strong distribution network June, 2012 Supply Chain department Promotion Action Plan Tactic Due Date Responsible Party Advertisement May, 2012 Marketing Department Sponsorship Events June, 2012 Marketing Department Personal Selling June, 2012 Sales Department Promotional Offers June, 2012 Sales department Monitoring Procedures Monitoring Activity Due Date/Frequency Responsible Party Raw material supervision April, 2012 Procurement Department Quality Check October, 2012 Product and Quality Department Inventory Level July, 2012 Procurement, Sales Department Profitability March, 2013 All the departments Bibliography Boone, L. E. and Kurtz, D. L. (2008). Contemporary marketing. Thomson South-Western Publishing. Read More