Marketing Plan: Home Appliances Repairs - Case Study Example

Marketing Plan: Home Appliances Repairs Executive Summary Electronics Company has been there for the past six years and has recently started experiencing low revenues and decreasing market share. The marketing plan analyses the situation position of the company and brings in analysis of company, customer, competitors, collaborations, climate and SWOT. The SWOT analysis expound on the benefits that the company will obtain if it incorporates the analysis of SWOT. The company believes in utilizing the global climate change in ensuring that they increase there customer base. There are planning to increase the customer base from the current 15% to 33% were the next year within a quarterly basis timescale. The strategy brings in the 7Ps marketing mix which ensures that the objectives and goals of the company are achieved. There are many hurdles that the organization has to jump to see there improvement from the 15% to 33% market share. There is a great level of competition, but the organization has derived communication means through the local newspaper, radio and television in wooing the customers. The budget that has been developed accounts to all issues that may arise and the organization management has promised assistance where there is a need. Furthermore, the implementation timescale has been drawn that splits the year into three parts with each part requires to accomplish certain task with specific people in charge. This then allows the ways that are used to monitor and control the success of the marketing plan. Reports, timescale and accounts calculations are used to show how successful, the marketing plan is. Table of Contents 1.0 Situation Analysis ……………………………………………………………………………..4 1.1 Company Analysis……………………………………………………………………………..4 1.2 Customer Analysis……………………………………………………………………………..5 1.3 Competitors Analysis…………………………………………………………………………..5 1.4 Collaborations………………………………………………………………………………….6 1.5 Climate………………………………………………………………………………………….6 1.6 SWOT Analysis………………………………………………………………………………...7 2.0 Marketing Objectives………………………………………………………………………….7 3.0 Market Segmentation…………………………………………………………………………..8 4.0 Alternative Marketing Strategies……………………………………………………………..9 5.0 Selected Marketing Strategy…………………………………………………………………..9 5.1 Product………………………………………………………………………………………… 9 5.2 Price…………………………………………………………………………………………….9 5.3 Distribution……………………………………………………………………………………10 5.4 Promotion……………………………………………………………………………………...10 5.5 People………………………………………………………………………………………….10 5.6 Physical evidence……………………………………………………………………………...11 5.7 Process…………………………………………………………………………………………11 6.0 Budget………………………………………………………………………………………….11 7.0 Marketing Implementation Plan……………………………………………………………..11 8.0 Evaluation and Control……………………………………………………………………….14 9.0 Conclusion……………………………………………………………………………………...14 10.0 Bibliography…………………………………………………………………………………..16 1.0 Situation Analysis Electronics Company is an organization that deals with repairs and maintenance of home appliances. It is six years old but currently the business is facing competition and other problems that are out off the management control. To understand the difficulties and problems that are faced by the organization, an analysis is taken of the company situation, customer, competitors and collaborators. 1.1 Company Analysis The aim of the company is to increase the amount of repairs that they receive and maintenance of other house hold appliances. Some appliances that are maintained and repaired are air conditioner, domestic repair, refrigerator and other household devices. It focuses in increasing the repairs and maintenance to different income earners and people applicability of the devices. At the moment, low income earners are the common customers to the organization with minor house hold appliances. The company is situated in a populated place where there are different income earners which dictates the appliances that they use. The organizational business is unique when compared to the other products or services because mostly the organization waits for appliances to be brought to them, which the come thinks of changing. In addition, the budget for marketing the product is flexible and the internal departments have been set in a way that it is ready to support any development or plans that should be made. The weakness of the company is that it lacks enough work forces to assist in marketing the product. Additionally, the company has a poor reputation because previous repairs were not that much successful. 1.2 Customer Analysis The population and number of people who have repaired appliances is about 30% of the entire population. This population brings together people who are in the lower and middle income earners. More than a half of customers who repaired the different home appliances are the low income earners. The target market has low and middle incomes but they have less frequency of repairs since they prefer buying new appliances. In a survey that was conducted, it showed that most of future customers were just employed while others had completed college and were starting their homes. Most of future customers are within an area of 34 square miles, which accounts to more than 80% of population of the entire region. 1.3 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 Electronics Company. Other companies have a strong customer base and loyalty. This means that it requires a large resource to change the minds of the customers. There are two major competitors that the company plans to reduce there market share. However, the problem of other companies is their location and the cost that they charge on the maintenance and repairs. They are out of the location where the population is high and the spares that they use are of poor quality or are not from the same company, which manufactured the appliance. Few of these companies offer sales service and have poor customer care. Further, most of them delay in completing the assignments that they are given. 1.4 Collaborations Some companies and retailers, who deal with other electronic devices such as electrical and electronic systems and other home appliances, have shown their interests in marketing the repair and maintenance service. The companies and retailer shops, which have shops in different geographic location have signed business deals and ready for further instructions in the way that they will transfer the appliances that requires repairs and others that require maintenances. The companies that have signed collaboration with the company are Sony, LG and Samsung. 1.5 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 bring in their appliances for repair and maintenance are economically possible. Technological development of other companies when compared to the Electronics has an upper edge. This means that the social and cultural environment have the capacity to embrace the new service. 1.6 SWOT Analysis 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 service that they are ready to present to the market. The cost of repairs and maintenance that the company has structured is affordable to most of the market. 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 service will give an upper hand to the organization marketing plan. Therefore, the presentation of the company will ensure that most customers will change their minds and transfer their maintenance services to the organization. Other companies 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 to expound on. However, the threats that are presented by the other organization are the trust that they have obtained from their customers. 2.0 Marketing Objectives The aim of the marketing is to increase the amount of repairs and maintenance that will be obtained and consequently increase the revenues and profits. Additionally, the company is interested in maintaining or try reducing the impact of climatic problems that are associated with the disposal of the used home appliances. The strategy should take three phases over one year. 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%. 3.0 Market Segmentation Repair and maintenance of home appliances is an important aspect in any community that embraces technology. Through research, it has been seen that many consumers are buying more of home appliances rather than repairing what they currently have (McDonald 1992, p. 11). This means that an important segmentation and the target market should be chosen and their requirements analyzed. Generally, there are three types of markets: consumer, industrial and reseller. However, the organization will concentrate on customer market and specifically the home appliances. Furthermore, the organization is eyeing the minor repairs and maintenance that is associated with the industrial and reseller market. This means that the organization will concentrate in the customer markets which will target the low and middle income earners. Through research, it has been shown that many low and middle income earners repair their appliances because they cannot afford new ones. Furthermore, males in these communities prefer repairing and maintaining the appliances. However, ladies prefer purchasing new appliances. The two major competitors have a large market share. This means that the organization has to ‘steal’ the customers from these companies. The organization estimates that the current market share is 15%. It is planning to increase the market share through three phase’s analysis of the market. The company tries to achieve a market share of 33% at the end of the marketing period. 4.0 Alternative Marketing Strategies There are many alternatives that the company may have employed, which include re-branding. However, these were discarded because they were not beneficial depending on the objectives of the organization. 5.0 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 service and the strategy that is to be used is advertising, discounting, customer care and after repair warranties. These strategies were proven convenient since it is more of ‘stealing’ customers from other companies. This then resulted in developing the marketing mix decision – 7Ps. 5.1 Product The product that the company offers is the repair and maintenance of home appliances. Maintenance and repairs will depend on the requirements of the customer. Different appliances come with different repair or maintenance requirements that the company staffs are ready to ensure that it has followed the requirements of the customer and ensuring that the right spare parts are used in accomplishing the tasks. 5.2 Price The price of the service will depend on the requirements of the customer and the extent of damage. There are those appliances that require minor maintenance that will be cheaper compared to those that are damaged. Other factors such as the spare parts that are required and the rules and regulations that have been put into place by the producer of the appliances. Additionally, the level of expertise will determine the amount of cost that will be charged on the product. 5.3 Distribution In a radius of 500 meters, there will be a collection point, whereby the product will be transferred to the main workshop and be repaired. However, the repairs or maintenance that will be required by the customer will depend on the place where the repairs will take place and the urgencies of the appliance. At the collection base there will be one expert who takes care of the urgent and minor repairs and maintenance. 5.4 Promotion The company will be marketed in different Medias. There will be advertisements in newspapers, radios and television. In the newspaper it will be in the front page. In the radio and television, it will be allocated in those debates that talk about environmental concerns and spot talks. The company will employ the ‘pull’ strategy in bringing in the customers. 5.5 People Marketing will ensure that brings in those homes that have families with low and middle income earners. The family homes have more home appliances and have a higher chance of been spoiled. Furthermore, the single home occupants and especially the men will be considered and targeted. The women population will have to be taught the benefits of maintaining and repairing their appliances. This people should be communicated in a way that they will be interested with the benefits of repairing the appliances 5.6 Physical evidence The physical layout of the organization should take in the customers’ preference. From the branches and other collaborators, the setting of the layout should be of good quality since the customer associates the physical layout of the working environment with the quality of service that will be obtained. This means that the neater the working environment the more likely chance that the customers will be interested with the facility. 5.7 Process This is the way that the customer is received and assisted in the organization. From receiving the appliances that is to be taken care off, the complaints that the customer presents, identification of customers needs and the way that the product is handled by the staff will determine how the customers will view the organization. This means that the organization will put first the etiquette that will ensure the satisfaction and results in achieving the loyalty of the customer. 6.0 Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Personnel (All transactions in US Dollars) Salaries 450 450 600 700 700 700 700 700 700 700 700 700 7800 Benefits 70 70 70 70 70 70 70 70 70 630 Taxes 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 69.3 Bonuses 13 19 30 62 Personal total 450 450 600 778 778 791 778 778 778 797 778 807.7 8561.3 Market Research Primary Research 100 100 100 100 100 500 Sec. Research 75 75 100 250 Total 175 0 0 175 0 0 200 0 0 100 0 100 750 Marketing Comm. Newspaper 50 50 50 50 25 25 25 25 25 25 25 25 400 Radio 75 75 75 75 50 50 50 50 50 50 50 50 700 Television 100 100 100 100 50 50 50 50 50 50 50 50 800 Total 225 225 225 225 125 125 125 125 125 125 125 125 1900 Customer Loyalty 50 100 80 90 320 Lead Generation 20 100 100 100 320 Total 0 0 0 70 0 0 200 0 0 180 0 190 640 Channels Communication 90 50 20 80 80 320 Promotions 90 90 70 250 Commissions 70 70 Totals 90 140 0 90 0 0 80 90 0 0 150 0 640 Other Postage 30 30 30 30 30 40 40 40 40 40 40 40 430 Travel 30 30 30 70 70 70 70 100 100 100 30 30 730 Telephone 50 50 50 50 50 50 50 50 50 50 50 50 600 Computers 500 500 1000 Total 610 110 110 150 650 160 160 190 190 190 120 120 2760 Total Budget 2000 1375 1535 2188 2253 1776 2243 1883 1793 2092 1873 2043 23051.3 7.0 Marketing Implementation Plan The implementation plan should focus in fulfilling the details that have been researched so that it achieves the objectives of the marketing. The plan includes a scheduled of key tasks which sets out what is to be done, by whom and by when. Furthermore, the implementation plan should be able to analyze resources that are needed and the time that will be taken to transfer the information to the customers. This means that in many cases there are three phases that an implementation has to follow: organizational preparedness, pilot test and the preparations for launch (Davids 2006, p. 24). The organization will use its name in marketing and in the media there are pictures that show what should be repaired and maintained. The localities where the branches are located are indicated and the availability of the people who are concerned with repairing. The table further illustrates how the marketing plan will be implemented. Implementation table of the marketing plan Task Description Person Responsible Completion Date a) Meeting with the Departmental Directors to promote the marketing plan which includes the implications of trial to the budget. P. M. 1/15 b) Meet with consulting team for a set up of trial L. M. 1/15 c) The time to work with consultants and designates who are from different departments in defining the profile Z. L., M. N. 1/22 d) Scheduling of a meeting for all members who are associated with marketing to promote trial; this is selling the concept following a two eek trial T. L. 1/30 e) Launch the trial All 2/1 f) The time of mid-trial meeting is scheduled to obtain the feedback and refinements. J. L. 2/8 g) Analyze and assess trial results P. K. 2/15 h) Launch the service to the specific targeted markets R. K. 2/18 i) Review on quarterly basis O. K. 4/1, 7/1, 10/1 8.0 Evaluation and Control There are various ways that the organization can use to evaluate and control the progress of the marketing strategy: sales analysis, market share analysis, expense-to-sale analysis, consumer satisfaction, efficiency control, marketing audit and strategic control. Sales analysis compares the actual sales and the targets that had been set and the discrepancies are accounted for. Market share analysis compares the amount of market share that they have acquired within the defined timescale. This may be obtained through sales that have been made with the competitors with the sales the organization has made. Additionally, the expense-sales relationship may be used to acquire the information that shows how successful or failures that the organization has witnessed. The use of profit margin, asset turnover, return on assets and financial leverage will show the extent in which the organization has become successful or failed. Additionally, the reports that will be presented by the marketing team will be used to gauge the success or the developments of the organization. Moreover, the marketers will ensure that the timescale that as been attributed to the different duties is met. Customer satisfaction will show whether the underlying motto of the organization is achieved and ways in which it can be advanced (Allred 2007, p. 96). 2.0 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. Electronics Company is dedicated to ensure that the disposal or wastages are minimized in ensuring that the global climate is maintained resulting in marking of profits. The strategies and implementation should focus to fulfil the dream of the organization and ensure that the objective is obtained. 10.0 Bibliography Allred, A., Addams, H.L., and Chakraborty, G. (2007), ‘Is informal planning the key to success of the inc. 500?’ Journal of Small Business Strategy, Vol. 18, Iss. 1, pp. 95-104. Davids, M., and Newcomb, K. (2006), ‘Planning for marketing success: Turning the “Wheel,” Debt 3, Vol. 21, Iss. 4, pp. 22-25. Isenberg, D.J. (1987), ‘The tactics of strategic opportunism,’ Harvard Business Review, Vol. 65, Iss. 2, pp. 92-97. McDonald, M.H.B. (1992), ‘Ten barriers to marketing planning,’ The journal of Business and Industrial Marketing, Vol. 7, Iss. 1, pp. 5-18. Simkin, L. (2002), ‘Barriers impeding effective implementation of marketing plans - a training agenda,’ The Journal of Business and Industrial Marketing, Vol. 17, Iss. 1, pp. 8-22. Read More