Marketing - G Microwave Oven - Case Study Example

Topic:  Marketing plan A. Product Support of Mission ment: The United s in the marketing innovation of microwave oven has been continuouslypushing its towns, market strategy. The quick growth of the United States in the microwave oven is because of the company’s insistence on the customer value innovation. Microwave Oven, as a consumer product is yet in the growth stage in terms of usage and sales. The complete culture of TV dinner is centered on these microwave ovens. Still in the market across the globe there are enormous potential to export microwaves as a kitchen appliance market is extensive. Innovative households are created everyday and each one requires their own microwave. Professional chefs usually used to complaint regarding the limited usefulness due to caramelization, browning and other reactions may not occur because of the small temperature range. Microwave Oven often introduced in different standard sizes and shapes. Company G adds several innovative features without increasing the price as the company had taken the advantage of decrease in the cost of technology. Company had paid high supervision to the workforce to ensure the high quality products to the customers in order to gain their satisfaction. B. Marketing Objectives 1. Target Market A target market includes a group of customers that the company is aiming to deal business with. It is the first element of the marketing plan and while preparing the marketing plan, the company has to decide to whom they have to target. Company G’s target market for, Micro wave Oven concentrate on the women consumers of Florida in U.S. 2. Marketing Objectives The marketing objectives include the following: Product Objectives The main product objectives of the company are to concentrate more on various stages of the product lifecycle from the beginning to the end stage. Distribution Objectives Price Objectives The pricing objectives involve profit maximizing and quality leadership pricing. The product line pricing works well with the profit maximization and quality leadership pricing objectives as the company is rising profit by promoting the purchase of a greater number of products. Promotion Objectives The promotion objective aims at developing attractive advertising techniques to persuade the women to attract towards the product. C. Competitive Situation Analysis: The three way classification system of convenience, shopping and specialty goods and services helps guide marketers in developing a successful marketing strategy. (Contemporary Marketing, By Louis E. Boone, David L. Kurtz, Published by Cenage Learning, 2012) Porter’s Five Forces Analysis The Porter’s Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. http://katapult.ku.dk/aktiviteter/kurser/boks/Porter_5_Forces.pdf/ 1. Competitive Rivalry: Company G faces competition mainly from Philips and Samsung. The company has taken the advantage of competition with the introduction of Microwave oven with new and innovative features. 2. Threat from New Entrants: Company G can face the threat from new entrants by way of its efficient engineers and designers who has developed a line of small appliances which were very successful in small-appliance electronics market. 3. Threat from Buyers: Buyers are weak, as they are fragmented in the market and no particular buyer can influence on the price or the product 4. Threat from Suppliers: Since the Company has strong relationship with the suppliers, the suppliers power is so weak. Hence less threat is expected from the suppliers. 5. Threat from Substitutes: The company faces threat from competitors. But as the company offers innovative and value added features to the product the switching cost of the customers is expected toi be less. D. SWOT Analysis The SWOT analysis is a helpful instrument “for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.” http://istdkochi.org/pdf/swot-analysis.pdf 1. Strengths The main strength of the Company is to provide innovative electronic solutions to the customers. It focuses more on the women customers of Florida. The core competencies include the customer expectation from the company, its brands, innovative products and services. 2. Weaknesses The company lacks effective marketing expertise. Lacks proper distribution channels. Effective marketing strategy is lacking. 3. Opportunities There will be fast sales on the Microwave oven among women customers. Developing an effective marketing plan for the new product line provide improved profits. Implementing a best marketing plan in the U.S market. E. 4. Threats The company has to face severe competition from other competitors of Micro wave oven in the U.S market. They have to incur heavy price on the advertisement expenses. The poor distribution channel of the company is the main threat. E. Marketing strategies Company G, the primary marketing strategy of ‘micro wave oven’ will through the extensive promotion to create the demand for the untapped market. Marketing strategies includes a number of activities. The marketing mix includes product, price, place and promotion. “According to Philip Kotler “Marketing Mix is the set of controllable variables that the firm can use to influence the buyer’s response”.” http://www.nios.ac.in/srsec319new/319EL20.pdf . the target customers of G company Microwave oven discussed in the part of market segmentation. The company primary customers are households. Product strategy The product strategy of Company G Microwave oven, given the warranty of product for 3 years. The product strategies decisions are depending upon the sales volume of product, and introduce several oven models and including the variety of features for next year. The main product strategy of company logo. The logo will be presented the all our electronics products. Place strategy The brand G Microwave oven, the distribution is functioned by the network retailers in the markets of electronics around the Florida. Our company introduces new distribution strategy through the internet and speciality electronic store in shopping malls. Also the company plans to develop the distribution in  outside the country. Promotion strategy The promotion strategy is to used to maximize the sales volume. The microwave oven advertisement is given to the specific time period for the customers. The promotion will be persuasive, reminding informative or strengthening.  The brand microwave new in the market.  The promotional activities creates the knowledge and awareness between the customers  that the new brand can live in the space in the market. The main advertisement campaigns are television, internet and print media. Price strategy The G brand microwave oven using the pricing strategy of more-for less approach. The customers in Florida are likely to demand this pricing. It helps to decreasing the cost of technology. This pricing the customers would have a cost benefit. The company has to control the cost of product. Because so many competitors are there example Samsung, Philips etc. the G  microwave oven price starts from $125 while the cheapest pricing in market starts from $150. F. Tactics and Action Plan. 1. Develop an action plan for implementing the marketing strategies identified. An action plan is the core element to the every marketing process, a continually evolving document of the organizations which is cascaded to the relevant citizens and observes regularly. The majority of the action plans are comparatively short term documents which give attention on the upcoming year, but longer term suggestions must also be considered. Action planning is a phases approach:         Clarify objectives, and guarantee they are SMART.         Link back to aims and tactics.         Set criterion for achievement.         Prioritize.         Locate and set timings.         Verify who will complete every action point.         Examine the development of the plan and evaluate regularly. 2. Create a timeline outlining when each task is to be completed. Product action plan. Tactic. Due date. Party responsible. Market penetration. 1/6/2012. Production and marketing manger. Product development. 10/6/2012. Production and marketing manger. Diversification of product. 25/6/2012. Production and marketing manger. Place action plan. Tactic. Due date. Party responsible. Dealership shop. 3/7/2012. Production and marketing manger. Online shop. 24/7/2012. Production and marketing manger. Retailer shop. 30/7/2012. Production and marketing manger. Price action plan. Tactic. Due date. Party responsible. Skimming pricing. 3/8/2012. Financial manger. Comparable pricing. 7/8/2012. Financial manger. Market penetration strategy. 12/8/2012. Financial manger. Promotion action plan. Tactic. Due date. Party responsible. Advertising. 17/8/2012. Production and marketing manger. T V broadcasting. 22/8/2012. Production and marketing manger. Promotion through various other medias. 29/8/2012. Production and marketing manger.   G. Monitoring Procedures. 1. Describe the specific actions that will be taken to measure the effectiveness of the plan. The final phase of the action plan is the accomplishment of controls and measurements and reporting outcome. Numerous models for assessing and monitoring the performance and routine of businesses have emerged, numerous of which speak to the requirements of key stakeholders and permit them to assess the overall accomplishment of a company. The balanced scorecard approach for assessing and monitoring business performance. The balanced scorecard approach is a generally used way of monitoring overall performance of the company and guaranteeing every day work is focused on the strategic aims. The scorecard is a "strategic arrangement and management scheme…which is used to align company activities to the vision and policy of the organization, development external and internal communications, and examine business performance in opposition to strategic goals". This approach promotes open communication throughout the company and permits tracking of performance during the year. Traditionally, companies have tracked accomplishment based on just one measure financial outcomes. On the other hand the scorecard organization views the company from four external viewpoints to achieve a more appropriate approach to performance metrics.         Learning & development – how you are innovating and developing to meet objectives.         Business procedure – how critical procedures are measuring up.         Customer viewpoint – generally calculated in terms of quality, time, performance and price.         Financial viewpoint – fiscal performance from the stakeholder viewpoint. 2. Create a timeline for these actions from part G1 Monitoring activity. Due date. Party responsible. Monitor the product action plan of the company. 11/9/2012. Production and marketing manger. Monitor the effectiveness of distribution channel. 23/9/2012. Production and marketing manger. Evaluate and monitor the pricing strategy. 2/10/2012. Financial manger. Measurement of the effectiveness of promotional activity. 15/10/2012. Production and marketing manger.   Read More