Marketing Plan - Essay Example

Marketing Principles and Apps Marketing Principles and Apps Executive Summary This market plan forms the basis for the introduction of an innovative appliance, the new product PG. The analysis allows Company G to outline the best strategies to follow for the achievement of the company’s strategic goals. Product PG will be marketed as a unique functional appliance while striving to reinforce Company G’s status as the leader in electronic innovation and successful product launches. The marketing plan concentrates on the best practices that will enable the company to achieve the market share of 7, 966, 500 prospective customers with a forecasted sales growth prospect 8% over the next three years.

Company has considered export potential in the United Arab Emirates. Product support of the Mission Statement The mission statement for Company G focuses on providing electronic products designed to improve the quality and convenience of customers’ lives. One of the new small appliances that Company G has developed is product PG. Electronic products that improve the quality and convenience of customers’ lives should meet the dimensions of product quality; these dimensions include performance, reliability, conformance, aesthetics, serviceability, and durability (Safko, 2012).

Product PG has appealing visual design features that enhance the aesthetic nature of the product. Results from extensive testing guarantee reliability, conformance, and durability of the product. The product’s Mean Time To Repair (MTTR) is minimized through serviceability features that enhances speed, competency and efficiency for repair. Product PG is designed according to total quality requirements and convenience, which are the primary constituents of Company’s mission statement. The Three-way classification system categorizes consumer goods into shopping, specialty and consumer goods (Kotler, 2014).

Convenience products include food products, whose accessibility is preferred to quality and price. Shopping products are characterized by extensive comparisons by customers before they commit themselves to purchase. Specialty products have conformance standards that consumers seek, and they cannot accept the substitutes. Product PG falls into the category of specialty products. Consumers’ planning for purchasing the electronic product PG will be extensive. Electronic appliance PG is considered to be specialty product because it is durable and has unique features that are desired by particular users.

The appliance is more expensive than other types of electronic appliances for similar purposes. Consumers are prepared to travel long distances to buy the product from specialized suppliers; they can also pay a premium so long as they are promised the exact product quality (Safko, 2012). Buyers also view several kinds of appliance substitutes for product PG to choose the one that they really want to buy. Demanders for electronic products such as PG have to search the items they need in shops that specialize in productions; these customers are expected to visit company G and its specialized shops in search of electronic appliance PG.

This is because product PG cannot be easily substituted. The price for specialty products is comparatively high compared to convenient products. Target Market The United Arab Emirates provides the best market product PG. The UAE is made up of six states with the estimated population of five million, nine hundred and eighty-three thousand, and six-hundred and ninety-five by August 2014 (United States, 2013). The per capita gross domestic product for the United Arab Emirates is equal to the level of West European nations.

According to the estimates of the year 2012, the GDP for United Arab Emirate was estimated to $49, 800 (United States, 2013). The mean age of the population is thirty-two years, implying that the greater population of the citizens is composed of young people. The table below illustrates the age structure estimates for UAE by the end of December 2013. Cohort Percentage Male Female 0-14 years 21% 574,589 551,346 15-24 years 14% 459,288 306,410 25-54 years 60.7% 2,480,054 718,070 55-64 years 3.

3% 127,569 44,996 65 years and above 1% 33,481 19,169 (Source: United States, 2013) The youth constitutes the greatest demanders of electronic appliances. In the UAE, the cohort that comprises the largest number of people is 25-54 years. Most of the youth belongs to this demographic category. Additionally, approximately all citizens in the cohort are working class people. Company G will primarily focus on the youth and the working class for marketing the electronic appliance PG. The company believes that the working citizens have high purchasing power, and will afford the specialty product PG.

Company G is envisioned to be the market leader in production and supply of product PG within the whole of United Arab Emirates. The company concentrates on identifying its strengths, customers and their underlying needs with an objective of establishing market presence and achieve its projected three-year sales. While focusing on building and maintaining the market share, company G while also strive to improve its gross margins on sales, cash management and working capital. These are critical elements, which will boost efficiency and effectiveness in performance and increased profitability.

Company G will divide the UAE markets into segments based on customer characteristics, preferences, and needs. Market segmentation activity will involve determining the actual and potential customers for the new line of electronic appliances. This will enable the marketers to identify the market and consumer groups. The final step in market segmentation is selecting the most attractive market for product PG. This may be an ethnic group region or a specific age group. When the company has identified a market segment, market representatives will identify the differential potentialities of each segment.

The companies will create identities of the electronic appliances in these markets and place product PG in these segments based on demand patterns. Proper market segmentation and positioning will be critical elements for success in selling bottled water in United Arab Emirates. Analysis of Competitive Environment: Porter’s Five Forces Analysis Threat of new entrants Analysis of competitors is critical since the intensity of market competition affects the profitability and market share for product PG.

Company G belongs to the group of electronic manufacturing companies. Electronic market is highly profitable, a factor that is attracting several investors into the industry (Interbrand, 2012). The electronic dealers in the market focus on limited number of brands of hardware and software. These outdated electronic shops offer limited variety of products and poor customer services such as informing, packaging, and warrants. However, these companies are focused on the principles of total quality management to improve their customer services over time.

Chain stores and electronic components superstores have shown intentions of beginning to offer varieties of electronic products similar to PG. Chain stores comprise bigger shops that offer advice and service concerning usage of electronic components. Threat of substitute products Electronic manufacturing companies may design products that can be used in place of product PG. Similarly, substitute marketing is currently rising due to widespread mail order stores; these are shops that have invested heavily on online marketing and other forms of promotions that are cost saving (Kotler, 2014).

They do not have physical stores except the online websites where they display their merchandise. Online stores are offering electronic appliances at comparatively lower prices than the physical stores. Buyers who purchase online get their products shipped to their places of residence. The intensity of competition is high, especially arising from international businesses. The number of electronic manufacturers and dealers is increasing day after day. Several companies have created prototypes for products similar to PG or serving the same purpose as PG.

Examples of substitute products include TV cards that can work with computers instead of television sets. Substitutes and replicated products pose threats to the company since they may reduce the market demand for the new electronic appliance PG. Bargaining Power of Customers Electronic appliances produced by Company G are classified as specialty consumer products. The market demand for electronic products is highly competitive. Buyers and sellers have wide knowledge of sale commodities (Kotler, 2014).

The forces of demand and supply could set the price, but consumers have a wide range of products to meet their utility. Similarly, the there are several other substitute products that the consumer can buy to meet their needs. These factors backed by consumers’ price sensitivity give them the power to bargain before they purchase products. Consumers’ bargaining power will cause price reduction for product PG, hence reducing profitability. However, the team has designed a production process that will enhance efficiency in terms of time and labor, and minimize the amount of raw materials waste.

The costs saved from the production process will cover the discounts from bargaining offered to customers. Bargaining Power of Suppliers The suppliers of the factors of production may not have bargaining power over company G since there are several suppliers of substitute materials. However, labor unions have enhanced employee solidarity, and this may make the company to revise its wages and salaries upwards (Singh, 2012). Entrepreneurs in the UAE may also demand high percentages of profits and quantity discounts for them to stock product PG in their shops.

Intensity of competitive rivalry The main companies posing intense competition to Company G are Samsung and Apple Inc. Apple is potential in creating innovative and unique electronic products. The company also maintains a strong brand image through consistency in quality product production. Apple, however, incurs high costs of production and over-prices its products with the aim of recovering costs (Interbrand, 2012). Currently, Apple is focusing on investing in developing markets, especially in less developed countries such as China, India, and Africa where it opens new stores for sales maximization.

Although global economic conditions are characterized by uncertainties and inconsistencies, Apple Inc. has maintained its global market share over years. Samsung’s motto is to inspire the world and create the future. The current market share for Samsung is 30.1% (Interbrand, 2012). Samsung focuses on inspiring communities through leveraging three key strengths: creative solutions, new technology, and innovative products. The company’s vision 2020 aims at promoting new value for core network including industry, partners, and employees.

Samsung’s vision 2020 maps out a strategic plan of achieving $400 billion in revenue and become one of the world’s top brands. The strategic approaches established by Samsung for realization of vision 2020 include creativity, partnership, and talent (Interbrand, 2012). Samsung can maximize on the rapid growing mobile advertising industry to increase its sales. Samsung can tap the fast growing market for tablets to enhance its rate of growth. SWOT Analysis for Company G Strengths Company G has a strong brand name and brand portfolio.

Business Week, a brand consultancy, recognized Company G one of the leading brands in their top 100 global brands in 2012. Company G ranks well ahead of its close competitors such as Samsung, Apple Inc., and Lenovo Technologies. Company G has achieved large revenue growth in its various market segments. The company’s revenues recorded a double-digit growth in Africa, Pacific Rim, Latin America, and Southeast Asia. Revenues from Africa grew by 21.5% during the financial year 2012. The three segments of Pacific Rim, Latin America, and Southeast Asia accounted for 30.

9% of the total revenues during the fiscal 2012. The company also benefits from minimized costs of production. The product designers have tailored the production process in such a way that the raw material and time requirements are greatly minimized. Cost-saving production processes will enhance the amount of profitability that the company will realize. Strong brand name and low costs of production constitute the core competencies of the company. The brand portfolio will guarantee market share for the new product PG, while low production costs will protect the company against losses caused by both buyers’ and suppliers’ bargaining power.

Weaknesses Patent infringement: Company G is infringing Apple’s and other electronic companies’ patents. This damages the company’s reputation among the customers. Additionally, the company has to pay huge amount of money in damages. Company G focuses on production and distribution of too many products. The company serves three diverse industries with many different products in them. The company is at a disadvantage over its competitors because it loses focus due to lack of specialization.

Company G is perceived as a poor brand in industrialized economies. Company G has limited differentiation capability for its electronic appliance products. This weakness has reduced demand in developed countries and made company G to concentrate on developing countries, which sometimes do not have potential purchasing power. Opportunities The electronic appliances market in UAE is rapidly growing. Company G can maximize on this growing market to increase its sales. High population promises demand for products since there are chances of a proportion demanding goods and services.

The country’s population is constantly rising; the fast growing technocratic generation guarantees the market for Company G’s electronic products. The company can design smart products that meet the needs of the technocratic generation to enhance the demand. Company G can obtain patents through acquisitions. The key to company G’s competitive advantage is the availability of a large portfolio of patents. The company can discover patents through engaging in Research & Development, and through acquisitions of other firms.

Threats Company G Electronic is exposed to risks associated with rapid technological change. Rapid changes in technology will require Company G to buy and install new technologies, which are sometimes costly. The market for new appliance PG is saturated. Electronic market in both developing and developed countries is highly competitive with several companies offering substitute or similar products. This may cause price wars that are detrimental to the productivity of the company. Company G has several patents that have been imitated by its competitors.

This situation makes it difficult to identify companies that are benefiting from Company G’s innovative technologies without paying the rights to use it. Breached patents are a threat because competitors may maximize on the company’s creativity and enhance their competitive advantages to exceed Company G. Marketing Objectives 1. To maintain the position of product PG as the market leader in innovative electronic appliances market 2. To be the leading most widely distributed functional electronic appliance in the United Arab Emirates market 3.

To strengthen and satisfy the needs of the more adventurous Generation Y consumers with new and appealing electronic appliances electronic appliance PG 4. To create interest for the product and build awareness among the UAE citizens concerning the product PG using the most economical promotional mix 5. To be the price leader in the electronic appliances market by taking into consideration consumers’ financial statuses and economic conditions Marketing Strategies Product The company will enhance the physical appearance of PG to ensure that the intrinsic characteristics of the product rhymes with the benefits it offers to customers.

The product design will focus on the physical attractiveness and performance of the product. The brand name of PG will identify the maker and seller of the product; this will contribute to the personality and perceived value of PG. Company G will ensure that product PG conforms to the dimensions of total quality management such as durability, consistency, and reduced Mean Time to Repair (MTTR). This will enhance consumers’ perception of the product in the market. Distribution The company will design and erect a point-of-purchase store at the production centre.

This will provide an opportunity for customer to window-shop and easily access product PG. Point-of-purchase will also enhance convenience for customers who live near to the production unit. Selective distribution will be achieved through placing products at specific markets concerning the findings from market research; placing the product in markets that show greater potential will be more profitable than in non-potential markets. The company will consider the following intermediaries in the distribution channel: wholesalers, retailers, jobbers and brokers.

These agents are critical as they will help in creating awareness of product PG to consumers, provide storage facilities, and offer information concerning the product on behalf of the manufacturers. Price Discounts will lead to reduction of price with consequent increase in quantity demanded since the law of demand focuses on inverse proportionality between demand and price. Free samples will enable both current and prospective consumers to test the product; if it meets their needs, they will buy it.

Consumers will also propose any improvements after using the sample product. Incentives will offer consumers opportunities to enjoy using products at reduced prices. Consumers are attracted to the product such that even if the company increases the price, they may find it difficult to stop using it due to switching costs and deep adoption. Promotion The company will buy airtime for media advertising television and radios. The company will also use web-based advertisements through company’s websites, blogs, and the social media.

A greater proportion if the current generation has access to the internet. The generation gives partial attention to the media; hence, use of integrated communication method is crucial in creating awareness concerning availability of product PG. Personal selling will involve personal presentation by the company’s sales force. Personal selling will be face-to-face, and will make sales while building positive customer relations. This promotion strategy is advantageous because it introduces products to customers, ensures effective selling, and minimizes costs of selling (Brentani & Reid, 2012).

Public relations constitutes all activities and attitudes that will be intended to influence and direct opinions of groups and individuals to develop interest in product PG. Public relations will be vital in passing information and awareness while impacting on the attitudes of the intended audience. Suitability of the Marketing Strategies Informing customers that product PG conforms to quality standards will attract them to the product. An attractive design and brand name will make customers to feel the prestige associated with product PG.

Promotional messages have the power of attracting prospective customers to the product. Using channels of distribution will ensure that the product reaches vast markets across the UAE. Discounts and incentives will reduce the price of PG so that most people can afford it. Free samples will enable both current and prospective customers to taste the product and develop demand for it. The promotional strategies will enable the product information to reach as many as possible in order to create awareness concerning the existence of PG.

Tactics and Action Plan Strategy Activity Time Product Strategies Physical appearance Designing an attractive design for the product that is appealing to the eye 1 week Brand name Developing and designing a proper brand name 2 weeks Quality Developing and launching a product that is in line with quality dimensions 1 month Distribution Strategies Establishing a point-of-purchase store Designing an attractive point-of-purchase store to enhance accessibility by customers 3 months Selective distribution Selecting the market to which the company will supply product PG.

1 week Intermediaries Assessing and selecting the intermediaries that will form part of the distribution channel 2 months Price Strategies Free samples Giving customers free samples during the selected days of the week 3 months Incentives Designing a proper plan for giving incentives to loyal customers 2 weeks Discounts Determining the quantities that will be required for customers to gain discounts and extending discounts to customers Throughout the product life-cycle Promotion Strategies Advertising Planning and buying media airtime for making advertisements 2 weeks Personal selling Sending personal representative to various markets to sell the product directly to consumers 1 year Public Relations Making initial plans concerning building of proper public relations for organizational success 2 months Monitoring Procedures Strategy Measurement Activity Time Product Strategies Physical appearance Observing how customers react to physical appearance of PG After every purchase Brand name Identifying customers’ behavior after buying, for example, if they look for other materials to carry the product After every purchase Quality Counting the number of product returns, complains about performance and warrants sought by customers Every 1 month Distribution Strategies Point-of purchase store Counting the number of customers visiting the store to make purchases or inquire about the product Daily Selective distribution Identifying if the selected market is responding positively to the product Weekly Intermediaries Inquiring from the intermediaries concerning the customers’ responses towards the product After every 3 months Price Strategies Free samples Counting the number of people who are interested to carry home the free samples During promotional campaigns Incentives Carrying out surveys to find out if the incentives motivate customers to buy Weekly Discounts Determining the correlation between the amount of discounts and quantity sold monthly Promotional Strategies Advertising Determining the customers’ response to the company’s advertisements through the social media Daily Personal selling Counting the units of the product bought during personal selling activities Daily Public Relations Carrying out surveys to identity the customers’ attitudes towards company G Monthly References Brentani, U.

, & Reid, S. E. (2012). The Fuzzy Front-End of Discontinuous Innovation: Insights for Research and Management. Journal of Product Innovation Management, 29(1), 70-87. Interbrand (2012). Best Global Brands 2012. Available at: http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012.aspx Kotler, P. (2014). Principles of Marketing. Harlow: Pearson Education Limited. Safko, L. (2012). The social media bible: Tactics, tools & strategies for business success. Hoboken, N.J: Wiley. Singh, N. (2012).

Localization strategies for global e-business. Cambridge: Cambridge University Press. United States. (2013). The CIA world fact book. Washington DC: Central Intelligence Agency.