Company G Marketing Plan Analysis - Report Example

Company G 3-Year Marketing Plan Assessment ID: Mentor Table of Contents Table of Contents 2 Introduction 3 Mission Statement 3 The Product 3 Consumer Product Classification 3 Target Market 4 Competitive Situation Analysis 5 Analysis of Competition using Porter’s 5 Forces Model 5 SWOT Analysis 6 Strengths 7 Weaknesses 7 Opportunities 8 Threats 8 Market Objectives 9 Product Objective 9 Price Objective 9 Place Objective 9 Promotion Objective 9 Marketing Strategies 10 Product Strategies 10 Price Strategies 10 Place Strategies 11 Promotion Strategies 11 Tactics and Action Plan 12 Product Action Plan 12 Price Action Plan 12 Promotion Action Plan 13 Monitoring Procedures 13 Introduction This paper discusses about Company G which has developed new product line for small appliances and introduced new innovative products with attractive designs and features to fascinate customers. Product chosen for marketing is compact cell phone charger. Mission Statement “We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.” The Product  The product chosen here is a compact cell phone charger and it is aimed at families on the go and for those that like the outdoors such as hunters and campers. Small appliances that are designed promote Company G’s mission statement as It is an innovative electronic product It improves the quality and convenience of the consumers It is of high quality and of low cost Consumer Product Classification Three way consumer product classification system In this system of classification the consumer products are classified into convenience, shopping and specialty goods. The company G’s products are small appliances and electronic goods which are of low cost of production with high quality and innovative electronic solutions. Convenience products: The products which are of low cost and essential in daily life activities are seen to be purchased frequently and require less marketing of the products, as there is no much planning by the consumers to make the buying decision. These products are convenience products. Compact cell phone charger falls in this category of convenience products, as it is required for all cell phone users and does not require intense planning to purchase the product. Shopping products: The products with relatively higher cost which are part of daily life activities are seen to be purchased less frequently and require marketing of the products. There involves planning by the consumers to make buying decision. These products are classified into shopping products. Specialty goods: The products with unique and specialty features are seen to be purchased rarely and requires high marketing of these products. Extensive planning by the consumers in making decision to purchase is required. These products are classified into specialty goods. Target Market A target market is group of people who are most likely to buy a firms or organizations product. The target market for company G’s product are common people of all age groups who use small appliances. And for the compact cell phone charger the target market is hunters and campers and the families going out-door. Competitive Situation Analysis Analysis of Competition using Porter’s 5 Forces Model Analyzing of Company G’s competitive environment for compact cell phone charger, utilizing Porter’s Five Forces model of competitive forces can be done. This model focuses on five forces that shape the competition within an industry. They are: 1. The risk of entry by potential competitors: Entering in market where already competitors are present is the risk of entry by potential competitors who provide compact cell phone chargers as their product. The other factors that affect are economies of sales, brand loyalty, absolute cost advantages, government regulations etc., for entry of new product, compact cell phone charger by Company G into the market. 2. The intensity of rivalry among the established companies with in an industry: The level of the industry demand for compact cell phone charger increases the intensity of rivalry among the established companies within an industry. When there is more demand for compact cell phone charger, number of customers increase then there is a good scope for company G. If there is less demand then the rivalry is seen to be increasing with the other companies and company G. Other factors of rivalry for compact cell phone charger include cost conditions and exit barriers in the market. 3. The bargaining power of buyers: Buyers may be individual customers, companies, retailers, or vendors who distribute and consume the product compact cell phone charger. Bargaining power of buyers describes the ability of the buyers to bargain and lessen the prices that are charged by the company. If the bargaining power is weak then company G has advantage to put its prices. Whereas, if bargaining power is high then it is a threat to the company for compact cell phone charger. 4. The bargaining power of suppliers: Organizations which provide inputs, supply raw material and labor are the suppliers. The bargaining power of suppliers describes their power to raise the price or costs. More powerful the bargaining power of suppliers is, more is the threat for the Company G’s product, the compact cell phone charger. Less bargaining power would be company G’s opportunity. 5. The closeness of substitutes to an industry product: This refers to presence of companies who manufacture the substitute products in a particular industry. Similar cell phone chargers by other companies with low costs could be a greatest threat for compact cell phone charger of Company G. Brand reputation of other rival companies in the market and lack of awareness about the compact cell phone charger can be other possible threats resulting in low sales, business loss, decline in reputation, etc. For the Company G it is an advantage if there are few or no substitutes to compact cellphone charger. It would be a threat if many substitute products are present in the industry. SWOT Analysis STRENGTHS Low production cost High quality and innovative products Effective visual design features WEAKNESSES Current marketing plan Current analysis of the market Effective implementation of marketing plan OPPORTUNITIES New designed products and new product line Opportunity in entering new markets The relatively small front-end investment. THREATS Suppliers of raw materials XG brand logo and its fame Credit terms of the intermediaries are typical Strengths Strengths related to the marketing of the new product: Low production cost: Consumers always buy the products whose cost of production is low. Cost plays an important factor for the sale of products. As the production cost is low it is an advantage and strength of the company G. High quality and innovative products: Consumers are attracted towards innovative and high quality products which suit their requirements. Compact cellphone charger is innovative product for families, hunters and campers and hence, is one of its strengths. Effective visual design features: Visual design features are more attractive and appealing to potential buyers and consumers. This is regarded as important strength of the company G. Identification of two strengths that should be considered as core competencies High quality and innovative products can be considered as core competency as there are no substitutes and there is high demand for new and innovative products with superior quality. New features with low cost production and design make the product different from the products existing in the market. This can be considered as core competency of the company G. Weaknesses The areas where Company G has weaknesses related to the marketing of the new product are Current marketing plan: New products and markets require marketing plans as per the requirement and the environment of market. There must be changes made to the current marketing plan. Current analysis of the market: Market environment always keeps changing. Therefore it is required for analysis of market before development and launch of new products into the market. Effective implementation of marketing plan: Marketing plan must be implemented effectively with proper marketing strategies with the current marketing plan and current analysis of the market. Opportunities Three current or potential opportunities within the industry: New designed products and new product line: New designed products and new product line has potential opportunity in attracting new and more number of consumers which help the company G in gaining market advantage. Opportunity in entering new markets: New market has new customers and products with unique features and this becomes an important opportunity of the company G. The relatively small front-end investment: Small front-end investment causes the low production cost, less investments and more profits to the company G. Threats The three current or potential threats within the industry are:  Suppliers of raw materials: Change in suppliers of raw materials for new line of products is considered as potential threat. Bargaining powers may cause business loss to the company G XG brand logo and its fame: Powerful competitors like XG brand are very famous in the market. Brand loyalty and fame causes potential threat to company G. Credit terms of the intermediaries are typical: The credit term policies to intermediaries must be appropriate as they play an important role in the business process. Therefore, it is of potential loss and threat to company G. Market Objectives Product Objective Introducing of new product compact cell phone charger into the new and existing markets is the product objective. There should be careful and detailed analysis of the market environment, demographics of the market before launch of new products. Price Objective Setting the preferable prices of the new products of compact cellphone charger in existing and new markets in order to gain profits is the Pricing objective. This should be done by price analysis of competitors firms, analysis of the customer demands and trend of the market. Place Objective Place objective involves in availability of product in existing and new markets. Adequate supply and distribution of product is necessary. Market analysis and market forecasting is essential for the accomplishment of Place objective. Place plays an important role in the marketing strategy. Promotion Objective A promotion objective involves creating awareness of new product compact cellphone charger in existing and new markets. The products which have good promotion strategies help organization gaining advantage over the market. Marketing Strategies Exclusive combinations of product, pricing, promotion and place strategies, known as marketing mix, would result in success of the new product, compact cell phone charger of Company G. These strategies are designed in such a way that they satisfy the target markets by meeting the desired objectives. In order to have a successful marketing strategy product, promotion and place are to be mixed. Considering that price of compact cell phone charger is higher, compact cell phone chargers can be added with more features in the product, promoted well for these advanced features and making the compact charger available at many places convenient to the customers would be the best mix of marketing strategy creating success to the compact cell phone charger of Company G. Product Strategies It is the initial stage of the product offering and product strategy in marketing mix. The product includes as a unit beside it has package, warranty, after sale service, brand name, value and other factors. For compact cell phone charger the strategy is product offerings, its value and features The compact cellphone charger should have good packaging Quality of the compact cell phone charger is important. This strategy helps the company G to sell many products in the market. Price Strategies Price for compact cell phone charger is the amount customers must pay to obtain it. According to market analysis and market forecasting pricing should be done. At first introduction the price of compact cell phone charger should be comparatively less with the competitor’s product price while introducing it in target or market segment. The price should be reasonable and must be an effective weapon in the market when product is launched in the market. Upon the demand and features the price can be varyingly changed. Place Strategies Based on the want and requirement of customers the compact cell phone charger should be made available. Market analysis and demand forecasting helps in supply of adequate products at each of the market places. At first the charger is distributed in selected markets and places. It is distributed and launched in all the existing and new markets It should be distributed in places such as distribution centers according to the demand and customers requirement in appropriate quantity. Promotion Strategies Promotion strategies include sales promotion, personal selling, advertisements, and demonstrations and public relations. Knowledge and awareness about compact cell phone charger, makes the consumer to buy the Company G’s product. At initial stage when compact cell phone charger is launched in segmented and selected markets - advertisement, sales promotions and personal selling should be opted. When the product is launched into market all channels of media for promotions like social media marketing should be used. Promotion of charger by sponsoring social events in the communities. Tactics and Action Plan Many business owners concentrate on tactics. An action plan for the strategies is the process of executing the marketing strategy by creating and performing specific actions which ensure the achievement of the firms marketing objectives (Ferrell & Hartline, 2011). Marketing Strategies contain a series of steps, called “tactics” that are needed for the strategy to work efficiently (ePowerPro, 2001). Product Action Plan Tactic Due Date Responsible Party Free sample distribution for demonstration of the product 15/4/2013 Salespersons Awareness programs for consumers 1/4/2013 Asst. Sales Manager Launching of product only for the age group 20-35. 20/5/2013 Chief Executive Officer Price Action Plan Tactic Due Date Responsible Party Introducing the product at a reasonable price for the consumer 1/4/2013 Sales Managers Gift vouchers for purchase of new products 10/4/2013 Sales Persons Discounts should be given 20/4/2013 Marketing Mangers Place Action Plan Tactic Due Date Responsible Party It is first introduced in cosmopolitan areas 4/4/2014 Marketing Managers Distribution in cities as well as towns 4/10/2015 Asst. Marketing Managers Product distribution to all areas of the market 4/4/2016 Senior Marketing Managers in all divisions Promotion Action Plan Tactic Due Date Responsible Party Press releases 5/4/2013 Sr. Marketing Manager Social media marketing 5/4/2014 Marketing Managers Promotion can be reduced From 5/4/2014 – 5/10/2014 Chief Executive Officer Monitoring Procedures Monitoring of the activities is essential to attain progress and have new innovations and methods for implementation of new strategies through an effective action plan. Following are the Monitoring activities as mentioned in by Butler (2000). Monitoring Activity Due Date/Frequency Responsible Party Identifying the change in levels of customer retention Once in three months for the years 2013, 14, 15. Salespersons Analyzing change in sales volumes and revenues 26th June, 26th December 2013, 14, 15. Sales Managers Feedback from regular customers 1-10 of every month in 2013, 14, 15 Management Questionnaires to customer perception 25 March – 25 May, 2013, 2014 & 2015. Sales Managers References Butler, D. (2000). Business Planning. Woburn: Butterworth-Heinemann. ePowerPro: Online Success Strategies for Real Estate Professionals (2001). Retrieved from http://books.google.co.in/books?id=JiNPIWI8iccC&pg=PA30&dq=Tactics Ferrell, O.C., & Hartline, M.D. (2011). Marketing Strategy (5th Ed.). Mason, OH: Cengage Learning. Read More