Dealing with Contemporary Marketing - Example

Marketing Plan Outline (Course Name) (Students Name) (Student Number) (Instructor Name) 7 August 2008 I. Executive Summary The product is new in the market and requires a strategic way to absorb the wide consumers market. There is a high level of competition from other plays that have created for themselves niche. This means that the strategy that it will be employed will change the consumers’ perspective in relation with the new product in the market. Our new products features are believed with distort the stability of the market, and the distortion will benefit our product. Imusic is the product that will be introduced to the market. II. The Challenge Imusic is an electronic device that is used to store information and contains services such as internet and GPS. They contain different storage capacity, and the capacity range from 256Mb to 120 GB. In addition, Imusic is capable of storing data information such as word documents, spreadsheets and PDF files. Its connectivity to the Internet is enabled by getting access from the Internet Service Providers (ISP). It supports ready only means and any information that is accessed cannot be edited. Currently in the market, some devices are comparable to the Imusic such as the Ipod and Imate. The aim of marketing is to increase the amount of sales by 20% of the current sales. III. Situation Analysis a. Company Analysis The aim of the company is to increase the amount of sales of the product. It focuses in increasing the sale of the product to different ages and gender of the population. At the moment teenagers and the younger population are buying the product, hence the product should be introduced to the older population. The company is situated in a populated place where there is a high population of teenagers. The product is unique when compared to the other products because of its multifunctional capabilities. In addition, the budget for marketing the product is flexible and the internal departments have been set in way that it is ready to support any development. The weakness of the company is that it lacks enough work forces to assist in marketing the product. The company commands a small population of teenagers who have less buying power. b. Customer Analysis The population and number of people who have bought other devices that are comparable to ours is about 30% of the entire population. This population brings together people who are between 15 to 45 years. More than a half of customers who bought the different product are between 20 to 30 years. The target market has low incomes but they like the product due to their life styles and peer pressure. In a survey that was conducted, it showed that most of future customers were just employed while others had completed college. Most of future customers are within an area of 34 square miles, which accounts to more than 80% of population of the entire region. c. Competitors Analysis Most of the market has been taken over by other developed companies. The majority of the population requires being convinced to see the benefits that are associated with Imusic. Other companies have a strong customer base and loyalty. This means that it requires many resources to change the minds of the customers. The shortcoming for the other companies products when compared to our product are the features that are available. Features such as the capability of storing different data types give the Imusic an upper hand. The two companies that are currently in the market share equally the customer base. d. Collaborations Some companies and retailers, who deal with other electronic devices such as music systems and phones, have shown their interests in marketing the product hand in hand with their products. The companies and retailer shops, which have shops in different geographic location have signed business deals and ready for further instructions in distributing and marketing the product. e. Climate The method, which was used to analyze the macro environment, was the PEST analysis. With the help of this method, it was able to understand legal and political requirements such the required licenses and procedures were put in place. The targeted market and the general environment has seen that if a good marketing strategy will be employed, many customers are willing to purchase the product since they are economically possible. Technological development of other companies when compared to the Imusic has an upper edge. This means that the social and cultural environment have the capacity to embrace the new product. In addition, SWOT analysis was employed in understating the internal and external nature of the company. The strengths of the company are the strong budget and the quality of the product that should be marketed. The weakness of the company that can be easily be solved is the lack of enough labour. The quality and many features that are in our product will give an upper hand to how marketing plan. Other products in the market have few features and their customer care is of poor quality. After sells incentives and warranties that are associated with the other companies are poor, this gives an opportunity to the company. The problem is that the Imusic is more expensive than other products in the market. IV. Market Segmentation Due to the effect of diverse population, the market is divided into four parts depending on the age brackets. This is because the age bracket of 20 – 30 years, has a taste towards technology and they will easily embrace the new product. Age bracket 30 – 40 have the decision to make with support of financial needs. This age bracket has enough finances since most of them are employed and others run their own business. Above 40 years have no taste on the Imusic product and mostly on the music side but they have to informed of storage benefits. Those who are less than 20 years have no financial powers and decisions making, hence it means that most of them have to consult their parents. Therefore, the different age brackets should be informed on how to use the product, and communicate supportive and guarantees that are given by the company. V. Alternative Marketing Strategies There are many alternatives that the company may have employed, and they included re-branding of the product, positioning of the product or discounting. Discounting was put aside since it is the first time the product goes to the market, also the same criteria was used to put aside re-branding. VI. Selected Marketing Strategy The company concentrated on the issue of “Growth Opportunities” which emerges from segment dynamics changing, market trends, and operational business challenges. The marketing team will prioritize these Growth Opportunities to market the product and the strategy that is to be used is advertising and packaging methods. This strategy was proven convenient since it is the first time the product goes to market. This then resulted in developing the marketing mix decision – 4 Ps. a. Product It was decided that the name of the product should be Imusic. The product is convenient to carry and flexible to use. Depending on the different storage capacity, the warranty differs and range from one year to three years. In each package of the Imusic it contains a charger, earphones, Imusic casing which is decorated with different people pictures using the product differently. b. Price The 256 Mb capacities will go for $50 while the 120 Gb will go for $600. This is the list price but depending on the age group and the terms of payments there are discounts that are provide and ranges from 2 % to 6% of the list price. c. Distribution Distributors will distribute the products to different retailers and have the power to sell the products. Partners have the right to vary the price depending on the rules and conditions on their contracts. Their localities will also determine the amount of discount and other benefits that the retailers and distributors will obtain. d. Promotion The company will market the product through newspaper, and media. The product will be on the front package of the newspaper and will be allocated prime time in the media sector. VII. Marketing Objectives The aim of marketing is to increase the amount of sales and revenues that will be obtained. The strategy should take three phases over two year’s time. In the first portion of the phase, revenue should be 10% and market share of 15%, the second phase should increase the amount of revenue by 25% and the market share to increase to 23%. The last phase will have to increase the amount of revenue to more than 35% with market share of 33%. VIII. Measurement of Success To ensure that the plan will be successful there are some factors that should be addressed and they include: The ability to have access to distribution channels Progress in terms of technology The ability to achieve economies of scale IX. Conclusion Marketing is a flexible and delicate matter that should be addressed fully. The product that should be marketed should attract customers. The company has to use opportunities that are on their way to increase the amount of sales. They have to employ different marketing matrix to succeed in their plans. Bibliography Boone, L. (1992). Contemporary Marketing, (Fort Worth, TX, Dryden Press) Read More