Tever - Marketing Activities Crucial for the Brand Success - Business Plan Example

Executive summary

This paper presents a marketing plan for a brand called Tever. It is a new brand that produces customizable keyboards. The current objectives of it include raising the awareness of the brand and building loyal clientele. The external environment was analysed using PESTEL framework; the competitive environment was examined with the help of Porter's Five Forces; the internal environment was identified through SWOT analysis. Extended marketing mix was applied to the product and STP model was used to outline the target market.

Introduction

It would not be a mistake to suggest that today computers are no longer seen as fancy pieces of technology. That is why it is quite natural that people are willing to buy devices that can be customised and enhance their experience with computers. Tever is a brand that makes computer keyboards that can be customised by a user in several ways: first of all, one chooses one of many designs and later one is able to assign any function to numerous functional buttons that are present on the keyboard. Unlike other products which feature a set of function buttons with a predetermined assignment, Tever allows a consumer to assign the meanings to all the buttons.

Objectives

One would make no mistake suggesting that the following objectives will become particularly important for the brand in the short run. First of all, it is crucial to build awareness of the brand in order to attract consumers. Secondly, it is also essential to start working on building a loyal clientele that will become the major producer of revenues in the future.

PESTEL analysis

One should apply PESTEL analysis in order to gain a proper understanding of the macro environment. According to Handlin (2011), the contemporary governmental regulations do not create any specific red tapes for the producers of keyboards. Moreover, it is possible to assume that the government will support a new company since computer literacy is something that is highly valued by it. Therefore, by providing a new product to the market and enhancing the computer experience of the people, Tever will align itself with the domestic policy regarding development of computer literacy.

Speaking of the economic aspect, one should point out the following: given the economic growth of the majority of the countries in the world as well as gradually lowering price on computers and devices that go along with them, one might conclude that the public will have a sufficient amount of disposable income to spend it on a keyboard that is provided by Tever. Hubbard et al. (2014) believe that buying such a device is quite popular among people who have to gain an enhanced computer experience and not an ordinary one.

As for the social aspect, it is crucial to mention the following: computers have become devices that can be literally found, everyone. Semmelhack (2013) notes that they have integrated into the daily life so deeply that interacting with them seem not only perfectly normal, but it also constitutes an integral part of one's life. Therefore, a purchase of a customisable keyboard that is sold by Tever will be praised by the people who believe that it is important to improve one's computer experience.

It may be important to consider the technological aspect of the environment. Burton and Brown (2014) report that today computers have not only become less expensive: the interaction with them is easier and the devices that are sold to go along with them are expected to become more convenient. As a result, the development of a customisable keyboard falls in line the ongoing trend in technology and will be seen as the next logical step that a reasonable consumer will take in order to enjoy one’s computer experience.

Some might argue that the environmental aspect may not apply to the marketing of a keyboard, but that is not completely true. Kuehr and Williams (2007) point out that there is a number of potentially dangerous materials that are used in the course of production and packaging of such a product. That is why Tever will be expected to reduce the amount of materials that are used in order to improve its environmental record. Another point that should be mentioned is that eventually the device will be disposed of and it should not harm the nature.

There are several legal concerns that should be taken into account. Woo (2014) points out that the major one, in this case, is copyright infringement. Thus, the product of keyboard will be following a certain pattern and it is crucial to make sure that it is not copyrighted. The same goes for every piece of software that is provided with the device. Therefore, Tever must adhere to all legal regulations in order to avoid violating any law regarding it.

Porter’s Five Forces

Now, it may be logical to turn to the examination of the competitive environment in which the company will operate. The first force to consider is bargaining power of suppliers. Needle (2010) shows that when it comes to the production of keyboards, the suppliers are able to influence the cooperation to a large extent. Since Tever does not own production facilities, it should reach a consensus with the suppliers. Moreover, it is possible that the latter are able to choose among companies that they are willing to cooperate with since it is highly doubtful that there will be few of them.

The second force to be mentioned focuses on the bargaining power of the consumers. Palepu, Healy, and Peek (2010) believe that their ability to influence business is slightly smaller, yet it should be taken into account. Thus, the people buy the product and generate revenue and if they stop doing so, they will ruin the future of the company. All this leads to the understanding that Tever should appease the people to a certain extent.

The threat of new entrants is the third force that conditions the competitive environment. Grimm, Lee, and Smith (2006) note that today entering the business of manufacturing computer keyboards may be rather easy for companies which means that as long as they have a suitable idea, they will be able to implement and capitalise on it. Therefore, just like Tever joined the competition, other companies might join it as well, leading to a more intensive competition. This is something that the brand in question should keep in mind.

The fourth force that is particularly important for this analysis features products that can substitute the product that is marketed by the company in question. For example, Hill and Jones (2010) note that new devices are appearing on a daily basis and it is quite possible that the traditional pattern of interaction with a computer and inputting information there will be changed in the future. As a result, it is possible that computer keyboards, no matter how customisable they can be, will become obsolete in the future.

Finally, one should also consider the last force, namely competitive rivalry. According to Haberberg and Rieple (2008), the competition in the computer industry is extremely intense and features a tendency to become even more intense as technology develops. Indeed, people rely more and more on this device and those companies that market successful products are able to become quite prosperous. That is why when Tever joins the competition, the major player will try to push it away in order to secure their shares of the market.

SWOT analysis

If one considers the strengths of the brand in question, one will have to notice the following: today people are willing to change the items that they use in a manner that would fit their need. As Dlabay, Burrow, and Kleindl (2016) show, customisation has become a widely accepted feature and more and more products are expected to have it. Therefore, Tever is likely to become a leader in this niche since it will provide the level of customisation that is not offered by any other company.

However, there are several weaknesses that might be identified as well. For example, Scrimshaw (2002) suggests that the level of expertise among computer users is very different. That is why those people who do not possess the required skills to customise the keyboard and assign the right functions to the buttons will refrain from buying it. In spite of the fact that this process will be designed in the easiest way, some people may not even think about possible scenarios of usage which will scare off the possible audience.

There are several opportunities that Tever might take the advantage of. Geller (2011) shows that people are likely to invest in their computer more today and they are interested in improving different devices that go along with it. As a result, the purchase of a customisable keyboard may appear to be quite valuable and useful in the long run. Keeping in mind that Tever aims to provide the level of customisation and convenience that was not featured in the product by any other company, it is quite possible that this will attract people.

Finally, one should consider the threats that are associated with the product. Shelly and Vermaat (2012) rightfully note that other devices, for example, tablet PCs, are becoming more and more popular among the people and it is also possible that in the future the ordinary users will focus on devices that have inbuilt keyboards. Therefore, one might assume that in the distant future customisable keyboards, as well as any other kind of keyboards, will not be popular since they will be substituted by devices that feature sensor screen.

Marketing mix

There are several aspects that should be considered while determining the marketing mix for the product that will be sold by Tever. As mentioned by Beckman (2014) the characteristic features of a product have a significant impact on its perception. So, the so-called “killer feature” of the keyboards that are marketed by Tever will focus on extended customisation. Thus, a person will be able to assign virtually any function to a set of special buttons that will be placed on the keyboard.

Pride and Ferrell (2008) also note that price may be an important point to consider. It must be noted that in this case, damping may not be the most suitable approach. Indeed, if the potential consumers see the new product and notice that it is significantly cheaper than its competitors, they are likely to overlook it because they will not trust its quality. Therefore, it is important to situate the keyboard by Tever closer to the average price of a keyboard in the industry to signal that the quality of it is quite good.

The issue of place is also quite important. Lamb, McDaniel, and Hair (2011) insist that a company will become quite successful if it is able to strategically place its product in locations that are easily accessible or attract the consumers. Given the fact that Tever is a young brand, it will not be logical for it to develop a chain or at least one brick and mortar shop. That is why it should use a different approach to distribution. On the one hand, it should send the keyboards to the most popular retailers since this will expose the product to the biggest number of potential consumers. On the other hand, it is crucial to set up an effective online store.

Bowen (2014) believes that promotion is the key to success in marketing a product. Given the abundance of available channels that can be used by the brand in question, it is crucial to focus on the most effective ones. Thus, if one considers the nature of the product and the idea that it promotes, one might suggest that the biggest emphasis, if not all, should be placed on the promotion in the virtual environment. Keeping in mind the contemporary popularity of social media, one should point out that it may become the most suitable platform for promotion.

As it has been mentioned before, the keyboard by Tever will be distributed by retailers which means that the brand will not have any control of the people who will represent the product. However, according to Goyal (2013), it may be particularly important to train the staff in such a way that would reinforce the positive image of the brand. So, it is essential to train the staff that is engaged in the online store to be helpful and supportive as possible.

If one considers the process that the product in question is involved is, one should point out that it should be designed in a way that would promote purchasing. Richter (2012) believes that a process that is structured correctly will encourage a potential consumer to buy the product even if the latter had certain doubts about it.

Finally, it is crucial to consider the physical environment. Dibb and Simkin (2012) point out that in many cases the character of the physical environment is projected onto the image of the brand. Since Tever is not able to afford its own brick and mortar store, the packaging of the product should make sure that it stands out. In this case, the potential consumers will pay attention to the keyboard and will consider trying it.

Segmentation, targeting, and positioning

There are several additional aspects of market that should be considered before the launch of the product. First of all, it is important to identify the desired segment of the market. There are four major dimensions to consider. Speaking of demographics, it is obvious that the major consumers will be in their later teens or middle twenties since this is the time when people are most likely to gain new skills in technology (Mitra 2010). Geographically speaking, the potential audience is likely to come from medium and large cities as they are likely to include retail stores which will feature Tever's keyboards. In terms of psychographic variables, the potential consumers are likely to be active explorers when it comes to computer experiences (Meena, Sivakumar 2015). They are constantly involved in the search of something new. As for behavioural characteristics, it is crucial to state that the purchase in question will be perceived as an improvement of the current state of affairs or, possibly, an investment into the quality of computer experience.

If one considers the manner in which the product will target the audience outlines above one should consider the following. Harris and Harris (2013) notes that a targeted product is likely to appeal to the most fundamental needs of the audience and serve as an effective tool to satisfy them. So, the keyboard by Tever will attract the consumers by its modern image and the fact that it will make the needed functions easily accessible. In other words, the categories of people that were mentioned in the previous paragraph are likely to find these qualities extremely useful. Another point that should be mentioned is that the product by Tever will also allow the users to feel more control over their computer and the manner in which they interact with it. This will not only enhance the experience but will be rather appealing for this group of people. In other words, the customisable keyboard will show that the consumers will be able to introduce certain changes that will be aimed at modifying the environment in a way that will satisfy their needs to a large extent.

Finally, it may be important to consider the issue of positioning. Since the latter is something that the brand is not able to influence directly. One should point out that it should create the right conditions for the development of the desired interpretation. For example, the increased level of customisation will lead to the situation when the consumers believe that the brand truly cares about the needs of the consumers and designs the product in such a way that turns it into a useful tool for the people. Another point that should be mentioned is that the consumers are expected to feel that they have more control over the functions of the keyboards and they will finally achieve the highest level of customisation. By far, this may be an important achievement in life of a person who gradually improves one’s computer experience. As a result, the keyboard that is sold by Tever will be warmly accepted by a number of people who are interested in increasing the customisation of their devices.

Implementation

Keeping in mind that Tever is a young brand and has not entered the competition yet, it may be important to look for a suitable moment to introduce the product. It is obvious that people are going to make more purchases when holidays are approaching which means that Tever should wait for the next big national holiday and introduce the product as a suitable present. The brand should send a sufficient amount of items to the retailers and have a certain amount of stock as the sales go up.

The sales projections are presented in the following table. It is important to state that the introduction of the product should begin in December so that it will be known to the consumers before Christmas. January and June will represent the low season, autumn and spring will encourage the consumers to make purchases.

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

50

20

30

35

33

32

21

27

29

30

32

33

As for expenses budget, it may be important to state that the original expenses will amount to roughly £100,000. This does not include the development of the software, but it will be enough to store and distribute the keyboards, pay for initial promotion, setting up an online store and wages.

Control

The first year will be crucial for the success of the brand which means that the reports should be performed on a monthly basis. These reports will show whether the approach to marketing which was chosen by the brand is an effective one. It is important to maintain a steady growth of sales, but one should keep in mind that over time the interest towards the product will decrease and so will the sales. That is why a careful examination of the first several months will reveal the true perception of the product.

Conclusion

Having examined all the points which were mentioned in the paragraphs above, one is able to come to the following conclusion: customisable keyboards by Tever will be a new product in the industry and it is likely to draw a considerable amount of attention if it is marketed correctly. The macro environment is generally favourable, but the competitive environment may be rather intense, especially for a young brand. If the brand follows the guidelines that are spelled out in this reports, it is likely to become rather successful.