Enhancing the Marketing Plan - Essay Example

Running head: THE REVOLUTIONARY GLOBALEOTECHNO WATCH The Revolutionary Globaleotechno Watch Charles Blanks Strayer Introduction Globaleotechno is a startup watch factory which manufactures and distributes unique and suitably priced watches. The primary target market of Globaleotechno is the upscale niche market. The corporate Globaleotechno capitalizes on utilizing the German engineering techniques to manufacture its watches. The growth potential of Globaleotechno lies in the fact that there are many unexplored markets that requires the high quality stylish watches at affordable prices.

However, now the Globaleotechno is encountered with difficult times. The organization has lost many of its loyal customers and its remaining customers are buying less frequently. The organizations CEO, Charles Blanks have challenged the marketing team with improving their number of loyal customers while increasing Globaleotechno watch profitability and stock price which must be accomplished with a 15% cost reduction. To assist in its growth strategy, Globaleotechno marketing team is looking at growing globally and adding the United Kingdom to their international market.

Globaleotechno intends to initially manufacture its products in America and expand to UK and make it the number one selling brand in United Kingdom. The company’s long term goal is to achieve 20% market share in United Kingdom and build the company’s image as an affordable quality watch manufacturer. It also intends to achieve brand equity through extensive marketing and sustain a 55% profit margin. The company would not solely rely on its initial product line; it intends to add more luxury watches to its product line.

This paper will review the competitive edge, differentiation strategy of Globaleotechno and also incorporate environmental issues and changing trends encountered by Globaleotechno. Product of Globaleotechno The primary product of Globaleotechno will be elegant analog watch with GPS integrated in it. The price of the products of Globaleotechno will be about 10% less than the competitors especially from Breitling and Rolex. This pricing strategy is opted to penetrate the market with low priced products.

However, the price will be adjusted later on to be directly competitive with that of the competitors. The price per watch will start from around $100. Globaleotechno’s Competitors: The main competitors of Globaleotechno are: Swiss Army watches, Tag Heuer and Rolex. These three brands have their own strengths and weaknesses which Globaleotechno will take into consideration before making a decision about their marketing and positioning. Strengths of major Competitors of Globaleotechno Strong Brand Equity Strong positioning as brands of quality Joint ventures of some of the major watch brands for example: Rolex and Breitling are proposing to work together which would work to enhance the competition in the watch industry (World Watch Report, 2011).

Weaknesses of major competitors of Globaleotechno Low brand loyalty Less choices for customers with a tight budget Perception of these major brands as expensive Globaleotechno has the opportunity to cash the weaknesses of the major competitors. It plans to position itself as a brand that provides the quality watches at affordable prices. Additionally as the brand loyalty is not high; Globaleotechno is in the position to alter the consumer’s choice of purchase. Differentiation Strategy of Globaleotechno A differentiation strategy is basically a company’s aim to manufacture position and market its products as different and unique from the competitors (Moore and Pareek, 2010).

A differentiation strategy of a company is usually followed only when a company has certain sustainable competitive advantages that set it at par from its competition (Kerin, Hartley & Rudelius, 2010). The competitive advantages of Globaleotechno are enlisted below which it plan to cash through extensive marketing and differentiation strategy. 1. Utilization of famous German technology and proficiency in its watch manufacturing 2. High quality same as the competition (specially Rolex and Breitling) but at a moderate price 3.

The American marketing skills Globaleotechno- a Follower or a Leader: Globaleotechno plans to enter the market of United Kingdom before their competitors respond with a price reduction to prevent them from entering. The Globaleotechno plans to be a leader in the watch industry at providing the best quality watches at an affordable price which will help to discourage the firms after it from entering and also work to alter the loyalties or preferences of the customers. The rationale behind opting to be a leader in low priced watches was also to counteract the global economic downturn.

As the purchasing power of the people has been greatly reduced, it became necessary to come up with a brand that is affordable which can also offset the high prices of the competitors. Macro environment issues faced by Globaleotechno There are many factors which influence an organization’s strategies and decision making but they are not controllable by the organization. Such external and uncontrollable factors work together to make up the macro environment of any organization (French, Rayner, Rees and Rumbles, 2011).

These factors include but are not limited to; legal, economic, social, political and technical aspects of the organizations (Pettinger, 2010). Legal Issues: Complying with UK corporate laws which tend to be different than American laws. Social Issues: An American brand with an intention to penetrate European market might take some time Lack of a known recognized brand name Economic Issues: The price of marketing tends to increase Purchasing power of people has been significantly declined due to global economic downturn Technical Issues: No drastic technology issue is currently faced by Globaleotechno as it is currently utilizes the most advanced German technology in its watch manufacturing The most significant trend impacting the company: Gloabaleotechno The fact that consumers usually buy a new watch only couple of time in their lifetimes has significant impact on a watch manufacturing company’s growth and marketing.

The watches they buy often last for generations at a time. This trend has the potential to affect the company’s growth very substantially. However, Globaleotechno has a marketing plan laid out to counteract this trend. The trend of giving watches as a gifts in on a high which Globaleotechno plans to cash by marketing their wrist watches as gifts and presents (like on Christmas, graduation or birthdays). Additionally, Globaleotechno also plans to add alarm clocks, wall clocks, grandfather clocks and clocks of automobile in its product line which will work to counteract the fact that clocks are long lasting products.

References French, R., Rayner, C., Rees, G., Rumbles, S., (2011) Organizational Behavior, John Wiley and Sons. Kerin, R., Hartley, S., and Rudelius, W. (2010), Marketing: The Core, McGraw-Hill Companies Inc Moore, K & Pareek, N, (2010), Marketing- The Basics, New York: Taylor & Francis Pettinger, R., (2010), Organizational Behavior: Performance Management in Practice, Tayler and Francis World Watch Report, (2011), Europa Star, Media Partner