Marketing Principles and Applications of Company G - Case Study Example

Company G – Marketing Plan Company G – Marketing Plan A.  Product Support of Mission ment Explain how the small appliance you have selected supports Company G’s mission statement provided in the introduction. The small appliance chosen is a coffee maker. The particular appliance supports the company’s mission statement as follows: using the particular appliance consumers are able to prepare coffee of various types, such as espresso, filter coffee or cappuccino, within an extremely short period of time. Also, due to its design the particular appliance is quite easy in use. In fact, a consumer can use the appliance even without reading the instructions leaflet. In opposition with other appliances of the same characteristics, the particular coffee maker offers to the consumer the impression of being involved in a unique experience: a series of color icons, showing cups of coffee of different size, helps the user to decide the type of coffee preferred. Then, icons showing spoons full of sugar and coffee help the user to decide on the amount of coffee and sugar that should be used for the type of coffee chosen. Finally an icon with cup of milk is used for showing to the user his potential to choose a cup of coffee with milk. Particular emphasis has been also given to the components of the appliance. High quality materials have been used ensuring that the flavor of the coffee is strong. In the context of the issues discussed above, the appliance chosen fully supports the firm’s mission statement, which focuses on quality, convenience and innovation, as described in the introduction section. 2.  Classify Company G’s products using the three-way consumer product classification system. The three-way Consumer Product Classification system is based on the following rule: products can be classified in three categories according to specific characteristics. Reference is made particularly to ‘convenience, shopping and specialty goods’ (Boone & Kurtz 2012, p.352). The particular system is quite helpful for the development of effective marketing strategies (Boone & Kurtz 2012, p.352). However, the system is also related to an important weakness: consumer preferences worldwide are not standardized (Ferrell & Hartline 2010). In fact, differences can be identified in consumer trends even within the same market and in regard to the same product; for example, the performance of a product can be changed within the same market under the impact of severe turbulences in the global market (Ferrell & Hartline 2010). Using the above classification system, Company G’s products could be classified in three categories: convenience, shopping and specialty goods. The characteristics of each of these categories are made clear through the Table 1 below. In general, convenience products are those that are highly popular, at least more than shopping products which are not necessarily incorporated in consumers’ daily shopping (Boone & Kurtz 2012). Moreover, specialty goods are goods of specific characteristics and, usually, of high price (Boone & Kurtz 2012). Since Company G offers only products and not services, the table will refer only to products. It should be noted that the Table refers only to the firm’s small appliances and not to all its products. Moreover, each of these categories is related to certain consumer factors, as being differentiated across products that are characterized as convenience, shopping or specialty. It should be noted that the product chosen for this paper, i.e. the coffee maker, is considered as belonging in the second category. Consumer factor (Boone & Kurtz 2012, p.352) Convenience products Shopping products Specialty products Time spent on identifying the product The product is identified in a few seconds, either in one of the firm’s stores or through the website Average It can be quite long Location of the product Quite important Important Not particularly important How often the product is purchased Almost on weekly basis About once a year, maybe less frequently Many years may intervene between the first and the second purchase of these products B.  Target Market 1.  Describe the target market for the company’s product. When referring to the promotion of products/ services, the identification of the target market is considered as a critical process. In practice, failures in choosing the appropriate target market are quite common, mostly because the time available for preparing the entering of a product/ service in a market is quite limited. According to Pride & Ferrell (2011) the key issue that should be reviewed when having to choose the target market is the following one: ‘how would the target market affect the company’s sales, costs and profits’ (Pride & Ferrell 2011, p.41). In regard to the chosen product, i.e. the coffee maker the target market could be described as follows: people aged +18 years old, of different cultural and educational background and of both genders. It should be noted that due to its low cost, as compared to similar products, the specific product could also address people of low financial status. In terms of the target market’s geographical characteristics, emphasis should be given to the following fact: the particular product should be appropriate more for the urban areas, i.e. cities. Its potential use in rural areas cannot be rejected; still, the sales of the product in rural areas would be significantly lower than urban areas and for this reason the promotion of the product primarily in cities would be suggested. C.  Analysis of Competitive Environment 1.  Analyze Company G’s competitive environment utilizing Porter’s Five Forces model of competitive forces. The Five Forces model of Porter is based on the following rule: the competitiveness of each organization can be evaluated by monitoring the response of the firm towards five forces, related to the firm’s external environment (Hill & Jones 2007). Using the above model the firm’s competitive environment could be analyzed as follows: a) industry competition; the electronics industry is a highly competitive sector; firms that are interested in securing their market position need to emphasize on innovation and strategic alliances; b) suppliers; the power of suppliers to press for the increase in their prices would be limited since the availability of suppliers in the particular industry is quite high; the firm can replace its existing suppliers anytime without setting its operations in risk; c) customers; electronic products are quite common in the market; customers can easily switch to another firm with lower prices; d) substitute products; products of low price but with similar characteristics may appear in the market; customers might prefer these products in terms that their price difference with the products of Company G would be high; e) competitors; the competition in electronics industry is high; the competitors in the particular industry are quire powerful; it would be difficult for the firm to survive unless it would decide to establish strategic alliances. D.  SWOT Analysis 1.  Describe three of Company G’s strengths related to the marketing of the new product. The marketing of G would be based on three of the firm’s strengths: a) innovation, b) extensive testing and c) high quality. a. Support your choice of each of these elements as strengths. The above elements are considered as strengths because of the following reason: a) innovation is quite important in the electronics industry; as already explained the particular industry is highly competitive; only firms focusing on innovation have chances to secure their growth; b) extensive testing; extensive testing ensures that failures in regard to the operation of the firm’s products are avoided, as possible. This is particularly important in electronics industry where failures in small appliances have become a common phenomenon; c) high quality; the firm can offer to its consumers products of high quality at low price. This prospect is particular important especially since the combination of low price and high quality is difficult to be met in regard to most products in electronics industry. b. Identify at least two strengths that should be considered as core competencies. Innovation and extensive testing should be considered as the core competencies of the organization. Therefore, the marketing plan of the firm should focus on the particular competencies for showing the superiority of the firm towards its rivals. 2.  Describe three areas where Company G has weaknesses related to the marketing of the new product. There are three areas where the firm has weaknesses in regard to the marketing of the new product: a) funds available for the marketing of the product are limited; it would be difficult for the firm’s marketing plan to be completed successfully, b) the firm’s website is not appropriately adjusted for offering the chance for online purchase of products; for the moment, only online ordering features are incorporated in the firm’s website; c) the firm is not adequately promoted in WWW, especially in regard to advanced Internet tools, such as social networking sites and blogs. a. Support your choice of each of these elements as weaknesses. a) Marketing plans tend to be highly costly; if adequate funds are not available, then the success of these plans could be threatened, b) today, commercial websites are used as a key tool for online sales; without such tool, a firm’s profitability could be kept at low levels; c) social media is considered as a key tool in marketing; the use of social media has become a critical requirement for the success of marketing plans. 3.  Describe three current or potential opportunities within the industry. a) High demand for electronic products in the global market; b) new technology features will support the enhancement of electronics industry in the future; c) the use of electronic products in daily life will increase in the future due to the change of the style of life. a. Support your choice of each of these as opportunities. a) The need for electronic products worldwide is high despite the global crisis; b) the continuous advances of technology could support the further growth of the industry, c) because of the increase of involvement of technology in daily human activities the need for electronics products in the global market would be increased in the near future. 4.  Describe three current or potential threats within the industry. Electronics industry has to face three major threats: a) the global economy is characterized by quite strong turbulences, b) the profitability of the global electronics industry is problematic and c) the technology related to the electronics industry is continuously updated. a. Support your choice of each of these as threats. The above threats have been chosen because of the following reasons: a) the electronics industry ‘is quite vulnerable to economic downturns’ (Q Finance 2012), b) an important decrease in the profits of the global electronics industry has been reported for the years between 2007 and 2009 (Q Finance 2012). Indeed, in 2007 the industry’s profits reached the ‘US$255.6 billion’ (Q Finance 2012) while in 2009 reached the ‘US$226.3 billion’ (Q Finance 2012). As for the third threat, the continuous update of the technology involved in the electronics industry, the following comment should be made: it is not feasible for all the industry’s firms to follow the technology’s updates; for Company G the specific fact could also threaten the organization’s survival. E.  Marketing Objectives 1.  Select four marketing objectives for Company G consisting of one objective for each of the four marketing mix elements (product, distribution, price, and promotion). The marketing objectives that Company G would set, as related to the marketing mix, would be the following: a) product: emphasis on product’s exceptional qualities, b) distribution: expansion of the target market; c) price: increase of the product’s competitiveness in terms of price and d) promotion: increase of marketing tools used for the product’s promotion. F.  Marketing Strategies 1.  Describe three strategies for each element of the market mix (product, distribution, price, and promotion) that are appropriate for the target market. Strategies should be consistent with each other and supportive of the related objective. The marketing strategies that Company G would set, as related to the marketing mix, would be the following: a) product: highlighting the product’s qualities, compared those of competitors’ similar products; , improving the product’s packaging and improving the firm’s existing book of guidelines; b) distribution: the coffee maker would be also available online, a fact that would increase the firm’s profits as related to the particular product; the stock of the firm in regard to this product should be increased; also, the time required for sending the product to customers would be decreased; c) price: offers related to the product would be introduced; the price of the product would be decreased for online orders and additional benefits could be incorporated in the product’s price: for instance, a two-years guarantee would be introduced, compared the 6-months current guarantee and d) promotion; additional marketing tools used for the promotion of the firm’s product would focus on the following targets: a) the increase of target market, b) the potential of consumers to state their view and c) the improvement of the firm’s market image. 2.  Explain why you feel this is the best mix to achieve the objectives. The suggested mix is considered as the most appropriate one for achieving the objectives because of the following reasons: a) in the particular mix the strategies set have been checked in terms of their feasibility, both in terms of cost and in terms of time required; b) the strategies included in the mix are common in the market, meaning that their effectiveness has been tested and c) the mix suggested is flexible; it can be changed, as one of more of its parts, so that it responds more effectively to market trends. G.  Tactics and Action Plan 1.  Develop an action plan for implementing the marketing strategies identified. a. Include one task for each strategy identified. Action Plan Product Emphasis on product’s qualities Change of the text used for the product’s advertising Improving the product’s packaging Change of the product’s label/ colors as related to its packaging Improving the book of guidelines Introducing of a more detailed book of guidelines Distribution/ place The coffee maker would be also available online Incorporation of online sales scheme in the firm’s website Increase of stock Increase of each store’s stock in regard to the particular product Decrease of time for the completion of orders Implementation of appropriate software Price Introduction of offers For every two coffee makers, one would be given for free Decrease of price for online purchase Reduction of the product’s online price Introduction of benefits related to the product The provision of extended guarantee in regard to the coffee maker would possibly help to attract more customers Promotion Expansion of target market Social networking sites Consumers can state their view on the product Blogs Improvement of the firm’s market image Sponsorships 2.  Create a timeline outlining when each task is to be completed. Action Plan Time required Product Emphasis on product’s qualities Change of the text used for the product’s advertising At least 6 months Improving the product’s packaging Change of the product’s label/ colors as related to its packaging Up to 3 months Improving the book of guidelines Introducing of a more detailed book of guidelines Up to 3 months Distribution/ place The coffee maker would be also available online Incorporation of online sales scheme in the firm’s website At least 6 months Increase of stock Increase of each store’s stock in regard to the particular product At least 6 months Decrease of time for the completion of orders Implementation of appropriate software Up to 3 months Price Introduction of offers For every two coffee makers, one would be given for free Up to 3 months Decrease of price for online purchase Reduction of the product’s online price Up to 3 months Introduction of benefits related to the product The provision of extended guarantee in regard to the coffee maker would possibly help to attract more customers At least 6 months Promotion Expansion of target market Social networking sites At least 6 months Consumers can state their view on the product Blogs At least 6 months Improvement of the firm’s market image Sponsorships At least 6 months H.  Monitoring Procedures 1.  Describe the specific actions that will be taken to measure the effectiveness of the plan. The effectiveness of the plan will be checked through a series of actions: a) at the end of each of the phases of the plan the time/ cost required, as compared to the time/ cost estimated, will be checked. Reference is made in particular to each one of the tasks incorporated in the Action Plan, as suggested above in section G. b) at the end of the plan, the overview of the plan in terms of its time/ cost, as compared to the time/ cost estimated, will take place. 2.  Create a timeline for these actions from the action plan (part G1 above). Action Plan Time required for checking previous phase Product Emphasis on product’s qualities Change of the text used for the product’s advertising No more than 1 day Improving the product’s packaging Change of the product’s label/ colors as related to its packaging No more than 1 day Improving the book of guidelines Introducing of a more detailed book of guidelines About 2-3 days Distribution/ place The coffee maker would be also available online Incorporation of online sales scheme in the firm’s website No more than 1 day Increase of stock Increase of each store’s stock in regard to the particular product About 2-3 days Decrease of time for the completion of orders Implementation of appropriate software About 2-3 days Price Introduction of offers For every two coffee makers, one would be given for free No more than 1 day Decrease of price for online purchase Reduction of the product’s online price No more than 1 day Introduction of benefits related to the product The provision of extended guarantee in regard to the coffee maker would possibly help to attract more customers No more than 1 day Promotion Expansion of target market Social networking sites About 2-3 days Consumers can state their view on the product Blogs About 2-3 days Improvement of the firm’s market image Sponsorships About 2-3 days Overview of the plan At least 1 month References Boone, L. & Kurtz, D. (2012). Contemporary Marketing 2013. 15th ed. Belmont: Cengage Learning. Ferrell, O. & Hartline, M. (2010). Marketing Strategy. 5th ed. Belmont: Cengage Learning. Hill, C. & Jones, G. (2007). Strategic Management: An Integrated Approach. 8th ed. Belmont: Cengage Learning. Griffin, R. (2012). Management. 11th ed. Belmont: Cengage Learning. Lamb, C., Hair, J. & McDaniel, C. (2011). Essentials of Marketing. 7th ed. Belmont: Cengage Learning. Pride, W. & Ferrell, O. (2011). Marketing 2012. 16th ed. Belmont: Cengage Learning. Q Finance (2012) Electronics Industry. Retrieved from http://www.qfinance.com/sector-profiles/electronics Read More