Market Plan for Venus Software Company - Report Example

MARKET PLAN FOR VENUS SOFTWARE COMPANY Table of contents Background 4 General Objectives 4 Specific Objectives 4 TargetMarket. 5 Current marketing objectives 5 Weakness 7 Threats 8 Marketing Mix 8 EXECUTIVE SUMMARY. Venus Software Company is a small software Company that deals with the sale of Software products for both small medium enterprises and large organizations. The few employees of the organization face scheduling challenges as their market is steadily growing thus increase in customer demands but with employees. The company’s major challenge is to develop means of increasing the profits and revenue without altering the demands of their customers and meeting their demands effectively. A SWOT analysis of the company’s strengths and weakness and external opportunities and threats has formed the basis of this marketing plan. This plan focuses on the company’s strategic growth plan, suggest ways to improve profits and revenues and enhance customer relationship through delivery of quality service to the customers to ensure continuity of the business. It also focuses on strategies of developing new products and marketing the products to different market niches that will provide increased sales to the company. Background Venus Software Company came into existence five years ago. It began as a small business that supported the development of Small and Micro Enterprises systems that enable easy management of business. Apparently, it is corporate software development organization. That develops systems for medium and large organizations. For the past five years, the organization has undergone evolution to a marketer of quality and customized made software products that supports all organizations. Sales have gradually grown in the past five years allowing the organization to work on its expansion mechanisms to meet its growing number of customers. The organization is also committed to giving back to the community by undertaking the social responsibilities. General Objectives The overall objective is to produce a marketing plan that would meet the explicitly defined organizations requirements, adhere to recognized standards and be within the organization budgetary and time constraints. Specific Objectives To analyze on the methods and techniques of marketing. To develop a time plan that meets the organization demands and is within the budget. To document all the finding in the development of the marketing plan. TargetMarket. The organization focuses on keeping its commitment to the provision of service and quality products to its customers. This has enabled the organization to develop and implement a differentiation strategy that enable it produce products that is different from the competitors, thus allowing it to have a competitive advantage over a diverse market. Through this differentiation, the organization has been able gain greater annual returns that have enabled it to develop to its current state. The targeted market includes small and medium size enterprises that deal with both manufacturers and retailers. Its biggest revenue earner is software that helps businesses keep track of the records of tractions between the small business, manufacturers and retailers for efficacy. The system has a robust database keep track of all transactions, provide notices in cases of bad and incomplete transactions. It also provides reports to the businesses thus enabling them to under their business. It also provides a means of communication between the trading parties, in cases of shortage of supplies. Current marketing objectives Venus Software Company relies on current customers and potential customer. They give phone call to the potential customers and provide prototype to the customers for demonstration. Once the customer accepts, then specification from the customer obtained and the software customized according to the customer requirements. The customized product is then shipped to the customer in whatever location for trial and an after sale service is provided for the customer for a period of two to three months. Such services enable Venus Software Company to differentiate itself from competitors. The company has about 75-80% reorder rate, which is very good for the company. Venus Software Company has no debts. Hence, have its objective of an increase in revenue and profits attainable. Design and Packaging. As we all know, that the design of the product and packaging has a great influence on sales of the product. Thus, Venus Software Company intends to maximize sale and profits, and it can only achieve this if it is able to meet the standards required. The product will be in compact disk, wrapped on paper with pictures of people using the product on the compact disk cover. The use of paper wrapper is for easy disposal thus save the environment as they can easily be burnt. The instructions of the product will be in the compact disk. That is, once the products compact disk is in the CPU, then before installation and integration of the system, there will be complete walk through of how to use the product to the clients. There will also include a complete guidebook of installation of the product to the customers, thus prevent mistakes during installation. Finally, the product will have only one license key that is limited to the installation of three computers. This is to reduce piracy, which will kill the growth of the company. SWOT Analysis Strength of Venus Software Company; Venus Software Company ability to differentiate its products by customizing its products and providing after sale service to customers allows the company to have a base in the market. It also have a small number of skilled and experienced employees who meet the customer requirements providing great returns to the company and less expenditures thus, allows growth of the company. Venus Software Company has strong relationship with multinational software providers with whom they may seek greater ideas for the development of better software’s for customers. The 75-80% reorders by the customers provides confidence to the company as it signifies satisfied customer, which is essential for Venus Software Company. Weakness The products offered are not continuous annually. Thus, the long breaks by customer demands hamper the company’s profits. Consequently, the long duration to develop new systems, deal with new customers who require a lot of attention before they begin consuming the product is a setback to company as much time is lost in involving the new clients. The small number of staff is such a setback especially when all the employees are engaged to new clients who take a lot of time. Instead, with more employees, there would be continuity of service development and provision Opportunities With the globalization of economies and business, it is easier to tap new clients and provide services to them, regardless of their location. The World Wide Web has also provided a marketing platform where Venus Software Company can advertise at a low cost. Subsequently, Venus Software Company can also obtain information from the technological advancement allowing it appropriately meet the customers’ requirement. Consequently, the loyal customers may buy the new product, keeping the company going. There is also plenty of gaps in the information Technology industry for software’s, thus providing an opportunity for expansion for Venus Software Company Threats Stiff competition from multinational organization can kill the growth of Venus Software Company. The distribution of the product is also a challenge especially to those clients overseas that might require special attention. Also considering the changing environment in technology and technology advancements, the product life cycle may be too short, thus, the need for fresh ideas to ensure continuity of the business is essential and might be too expensive to sustain. Marketing Mix The product Strategy;- Venus Software Company offers high quality of software to its customers, all having attributes of the company. The company has researched on all methods of making the software product usable and learnable by their clients. Thus, provide the need for clients to purchase the product, as they are convenient to use. Over the next five years, Venus Software Company plans to expand its product and services to include more functionality to their systems and enhance accessibility of the system by the clients. Subsequently, the company plans to provide a means of making the product available for business but through leasing the product. Where customers will only have to purchase the license of the product use it for a specified period then renew the license. This will enhance revenue and profits as the product will be affordable to clients. Also due to the changing technology, the system will constantly undergo upgrade to ensure it meets the ever-changing business demands, as some of the functionalities will be retired over the next five years. Distribution Strategy;- Venus Software Company is marketed through local shops that deals with software’s. It is not widely scattered, as it is still a growing company. This has been a limiting factor to the company, hence, making the company produce somewhat of a shallow product. Nevertheless, within the next two years, the company plans to expand its distribution channels to regional distribution centers, and over the five year, be a worldwide distributor of software product. This will also enable the company to produce a simple but complex product as the customer requirements will have increased since each region has its customer requirements. Thus, offering an opportunity for expansion and diversification of Venus Software Company. In addition, the company plans to develop online kiosks that will allow customers to lease the product and thus increase in profits. It also plans that in the next two years it will extensively market its product over the internet through social media and multiple websites that will effective convey their products. Promotional Strategy;- Venus Software Company communicates to its customers with its clients and suppliers through direct mailing or direct phone call. This direct contacts with the distributors and suppliers helps to know the status of the product in the stores. This also provides the uniqueness and quality of the product from competitors as this communication helps to build relations that are imperative for the product survival in the market. Due to its small size the company can effectively implement promotional services such as after sale service to their customers, allow discount rates to customers ensuring customer loyalty. Thus during the next five years, the company plans to provide forums where people can come experience first service by the company. It also plans to provide platforms where people can come and share their ideas on the product as this will provide a means to sustain the product in the market. During these forums, the company can effectively promote its product. Finally, the company tends to launch media advertising of the company with the product it offers over the next five years. Pricing strategy;- Venus Software Company offers its prices with the competitors in mind. It does not plan to set the prices very low to offset the market prices or set the prices to high, as it will make the product look luxurious. Value pricing will be practiced to cater for the customers pocket and ensure that they do not feel the financial constraint while purchasing the product. Thus, this will ensure the continuity the organization as it will make it earn profits and compete effectively in the market. Product Development Life Cycle. In the introduction stage of the product life cycle within the first two years, there will be low sales, high costs per customer and a negative response to the product as there is no much awareness of the product thus the need to create awareness by the company. The company will have a trial product whose pricing will be a use plus pricing. The distribution channel will be very selective as more advertising of the product is essential. In the subsequent third year, the product will be in the growth stage. There will be a rapid rise in sales, average cost per customer. The profits will be increasing substantially. The company will be able to provide product extensions such as after sale service and warranties for the product. The pricing will be cheap to allow the product penetrate the market and establish a base. The company will focus in developing extensive distribution channels. On the fourth year, the product will be at maturity stage. The sales will be at the peak, low cost per customer, as the profit will be very high. The organization will be focusing on diversification of the product to generate more profits. The prices will set to match the competitors, since the distribution will be intensified thus, enhancing the product life. The fifth year will be the decline stage of the product. The sales will be declining drastically, the profits also bending downwards and the organization will be reducing its expenditure to retain profits. The company will concentrate on cutting down the prices to retain customers, cut out unprofitable making outlets and be selective on its distribution channels. Budget schedule and monitoring. Although Venus Software Company is still young, it has had a great increase in profits for the past five years. Thus, the figure below shows the projected sale of the nest three years with the introduction of the new product. Annual sales for Venus software Company in Millions of dollars. Venus Software Company anticipates continuing operations into the future without any plans of exiting the market. Instead, the company is intending to make its presence felt with quality products, increased distribution channels and quality customer service. Venus Software Company has no plans what so ever of merging with any other company since its future looks bright in the near future. Refferences: KOTLER, P., KELLER, K., BRADY, M., GOODMAN, M., & HANSEN, T. (2009). Marketing management. Prentice-Hall. ADCOCK, D., HALBORG, A., & ROSS, C. (2001). Marketing: principles and practice. London, Pearson. BLYTHE, J. (2006). Marketing. London, Sage Publications. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=334469. DIBB, S., FERRELL, O. C., PRIDE, W. M., & SIMKIN, L. (1994). Marketing: concepts and strategies. Boston, Houghton Mifflin. DOYLE, P., & STERN, P. (2006). Marketing management and strategy. Harlow, England, Financial Times Prentice Hall. DRUMMOND, G., & ENSOR, J. (2005). Introduction to marketing concepts. Oxford, Butterworth-Heinemann. KASPER, H; VAN HELSDIGEN, P AND GABBOT M (2006) Services Marketing Management: A strategic Perspective 2nd Ed. Dryden Press KOTLER, P AND KELLER, K (2009). Marketing Management 13th Edition. Prentice Hall KOTLER, P; KELLER, K; BRADY, M; GOODMAN, M AND HANSEN, T (2009). Marketing Management European Edition. Prentice Hall (1967). European journal of marketing. Bradford, England, Emerald Group Pub. EUROPEAN ASSOCIATION FOR INDUSTRIAL MARKETING RESEARCH. (1971). Industrial marketing management. New York [etc.], Elsevier North-Holland. (1983). International marketing review. London, Corporate Press. AMERICAN MARKETING ASSOCIATION. (1964). Journal of marketing research. Chicago, American Marketing Association. http://pcift.chadwyck.com/pcift/search?source=bconfig.cfg&Action=SearchOrBrowse&SEARCH=Search&JID=b178&HISTLOGGING=N. ACADEMY OF MARKETING SCIENCE. (1973). Journal of the Academy of Marketing Science. Greenvale, N.Y., Academy of Marketing Science. http://link.springer.com/journal/11747. MCDONALD, M (2002) Marketing Plans, How to Prepare Them, How to Use Them 6th Ed Butterworth Heinemann RIES, A AND TROUT, J (2001) Positioning: The Battle for your mind McGraw-Hill STRAUSS, J AND FORST R (2008) E-Marketing 5th Ed. Prentice Hall SOCIETY FOR MARKETING ADVANCES. (1990). Marketing education review. Harrisonburg, VA, Business Education Foundation. Read More