Market Strategy Plan of Company G - Case Study Example

Company G Marketing Plan Table of content 1 EXECUTIVE SUMMARY 2 COMPANY 3 MISSION MENT 4.1 TARGET MARKET 5.1 ANALYSIS OF COMPETITIVE ENVIRONMENT 5.1.1 Competitive rivalry 5.1.2Threat from buyers 5.1.3Threat from suppliers 5.1.4Threat from new entries 5.1.5Threat from substitute products 6.1SWOT ANALYSIS 7.1THE MARKETING MIX 7.1.1Product strategy 7.1.2Distribution strategy 7.1.3Promotional strategy 7.1.4 Pricing strategy 8.1TACTICS AND ACTION PLAN 8.1.1 Product strategy 8.1.2Distribution strategy 8.1.3Promotional strategy 8.1.4 Pricing strategy 9.1MONITORING PROCEDURES 1.1EXECUTIVE SUMMARY Company G has developed a new brand. The company targets to utilize the available resources in ensuring the product achieves its desired objectives. The company has established measures to ensure that the product is appealing to the customers; the visual design of product XG has been appealing to the potential customer. The designs are to act as a step towards developing a three year marketing plan for Product XG. The plan is aimed at ensuring the product gains the market advantage and gain the required market share. The competitive nature of the company’s other product is to be used as the base of marketing the new product. The company is dwelling on the new product as they believe the new product line will be the most reliable line of products in the small-appliance industry. The company is aiming at using the plan to set new parameters and define a long term plan for the product. The new product being a shopping good the company focuses on a defined plan to outshine the competitors. 2.1COMPANY DESCRIPTION Company G is a well-established firm that deals with electronics. It has diversified in its range of product. The company targets the small appliances as their preferred line of production. It also has a designed production process that is aimed at reducing raw materials wastage. They utilize the available labor to perform their duties under a specified period of time. The company has a proper budgeting tool that will enhance various production lines to work simultaneously. The company also has a low debt-to-equity ratio and a high credit rating. The relation of company G and current suppliers is recommendable. Company G offers intermediaries defined credit terms to ensure the product in their distribution channel reaches their destinations effectively without rebranding and effecting quality. 3.1 MISSION STATEMENT We enable consumers to improve the quality and convenience of their lives by providing high quality, innovative electronic solutions. 4.1TARGET MARKET Product XG is aimed at supplying the small- appliance with as a unique and distinctive product. The effectiveness and reliability aspect of the new product are to be used to appeal to potential customers. The product targets the young population. The youth population is targeted both in the urban and rural settlement. The high number of youth in the region as compared to the older population is to be used as an advantage while supplying the market with the new electronic product. The target market will be of both genders, it is aimed at ensuring the majority of the youths in the region appreciate the new product. The product is aimed at achieving its desired market within the first financial year and uses the rest to develop and redesign the product. 5.1ANALYSIS OF COMPETITIVE ENVIRONMENT 5.1.1 Competitive rivalry Company G has potential rivalry within its locality and neighboring urban centers. They produce similar products as Product XG. They engage in promotion strategies with an aim of outshining the product from the market. The rival firms threaten the profitability of the company. They may counter any move and strategy that the company may employ. 5.1.2Threat from buyers The company risks the reduced response from the target market. The unpredictable nature of the customers may deter the smooth supply of the company’s product to the market. They may cause a reduction in sales and in the end affect the growth (Ferrell& Hartline, 2010). The may be influenced by the rival companies and the change in technology which the company may have failed to adapt to. The buyers may return the majority of the products upon dissatisfaction and the result is a reduced trust from the loyal customers. They may create an obstacle while to new customers due to their influential nature. 5.1.3Threat from suppliers The failure by the suppliers to ensure that raw materials and accessories needed for the assembly and manufacture of product XG will threaten the reliability nature of the company. A delay caused by supplier related faults may tarnish company X’s image. The failure to deliver may be caused by mistrust from suppliers or other logistical problems. Suppliers may affect the overall performance of company X. The threat will reduce the competiveness nature of the company and affect the final output. 5.1.4Threat from new entries The new entries may adopt a pricing strategy that may be uneconomical to work on. The effect will be the shift from customers from company X to these entries. There is the issue of technology in that the rival company may use advance technology to produce hence products hence creating an expensive nature of doing business. The unpredictable nature of the new company makes it difficult to counter any move by the given firm. It becomes difficult to study the market hence there is the threat of being outshined in the market. 5.1.5Threat from substitute products There is the threat of substitute products from competitors. They tend to give an alternative to the XG product hence may affect its market share and affect the loyal nature of customers. The design of the substitute products may be similar to product XG hence deceiving customers. The cheap alternative of the substitute product may threaten the customer size and hence reduced sales. The expensive nature of doing business may eventually have a toll on the company’s average performance. 6.1SWOT ANALYSIS The strengths of the company lies in its management structure with a clear communication channel that allow information flow. The result of this is a faster action plan and faster implementation of strategies. The other strength by the company is the use of technology in its product design. It provides for the company to counter any move by the rival company. The final strength involves the ability to interact with suppliers. The move has seen the company being able to attract new suppliers hence ensuring a steady supply of raw material to be used in the new product. The weaknesses of the company lie in its distribution plan. The company is unable to supply the market directly hence involvement of intermediaries. The result is the unsure nature of the company to deliver on time. The other weakness of the company is the inability to predict the market and anticipate the market trends. The firm lacks a team to ensure an in-depth analysis of the market before introducing Product XG. The product will have a lower market acceptance due to the lower promotional strategy the firm previously employed. The rival company used these weaknesses to develop a marketing plan that is betters that of Company G. The opportunities available include the high youth population. The country enjoys a higher youth population as compared to the old population. This gives the company a ready market for the new product. The other opportunity available for the company is the environment. It allows room for fair competition. The firm has the potential of carrying out their business without fear of rival companies employing unfair tactics. The threat lies on the unpredictable form of the market. The new product by the company risks being negatively accepted by the consumers. The other related threat lies on the suppliers, the firm may fall victim to unreliable suppliers who may fail to deliver as per the expectation. The final threat is from the rival company, it may acquire a larger portion of the market hence affecting the company’s ability to sell products according to their expectation. 7.1THE MARKETING MIX 7.1.1Product strategy The new product is aimed at the youth population. The first year will see the company design the product an offer it to the market. The feedbacks and comments from the market will enhance its improvement. Additional features will be added in the first year according to the customer’s demand. The second year will see the firm increase its production line to cover a larger geographical location. The period will see the product gaining the needed population and hence the third year will see the product gaining the desired popularity. The company will target in the final year to ensure the company has a nationwide image. 7.1.2Distribution strategy The first year will see the company adapt an exclusive distribution model where the product will have a single distributor. The aim is to ensure the desired market is achieved during the first year of introduction. The second year will see the product offering a number of intermediaries to supply the new product to the market. This will reduce the amount of time taken between the time of manufacture and final distribution. The third year will see the firm adapt a structure in which the product sale though the internet and through the use of intermediaries with an aim of covering a larger market area. 7.1.3Promotional strategy The print media and in person strategy will be adapted by the company as the initial process of promoting the new product to the market. The second year will see the company integrate the online marketing platform to the existing structure. This will ensure a large number of customers are made aware of the new product. The first year promotional strategy will be based on informing the public of the new product. The second year will to remind and notify them of the improvement that accompany the product. The final year will be to counter any move by the rival companies. 7.1.4 Pricing strategy The first year will see the company offer discounts to its customers and at the same time sell the products at lower price. The aim is to attract customers towards purchasing the new product. The second year will see the prices adjust but offer special discounts at a given period. By offering seasonal discount, the product will gain its desired value to the customer and the final year will allow the retailers choose their prices but a given range will be provided. The aim is to ensure each end of the market attain the desired product. 8.1 TACTICS AND ACTION PLAN The section involves three tactics that will be deployed by the company per market mix while ensuring the new product is introduced into the market. 8.1.1Product strategy Tactic Due Date Responsible Party design the product an offer it to the market First year The marketing team and IT department Increased production volumes and offer distinct characteristics Second year Production team and the marketing team Increased geographical location Final year Marketing team 8.1.2Distribution strategy Tactic Due Date Responsible Party exclusive distribution model First year Marketing department and the supply team offering a number of intermediaries to supply the product Second year Supply team product sale though the internet and increase number of intermediaries Final year Marketing department and the supply team 8.1.3Promotional strategy Tactic Due Date Responsible Party print media and in person strategy First year Marketing department online marketing platform Second year Marketing department Respond strategy to move by rivals Final year Marketing department 8.1.4Pricing strategy Tactic Due Date Responsible Party offer discounts and penetration pricing strategy First year Marketing department offering seasonal discount Second year Marketing department Distributors adopt pricing and cost strategy hence they determine the prices to charge Final year Marketing department and the intermediaries 9.1 MONITORING PROCEDURES The procedure will ensure that the desired target for the product is achieved. The market activity verses the customer response will be used to determine the initial strategy and the company profitability will be determine at the final year. (Ferrell& Hartline, 2010) Activity Period Party responsible Desired Target market First year Quality assessment team Achieving desired goals First year Quality assessment team Market size Second year Marketing department Market activities Second year Marketing department Profitability and viability Third year Finance team Reference Ferrell, O. C., &Hartline, M.(2010) .Marketing Strategy. South West: Cengage Learning Read More