Electronic Marketing Business Plan - Essay Example

?E-marketing business plan 0 Introduction In order to boost its growth, the company aims at expanding the diversity of its products by launching a new brand come January 2012. Upon its launch, the brand will be exclusively operational in UK though there is a room for expansion of its active operation in Europe in future. In order to make a quick market coverage and reach the online, the company will use E-marketing as its main marketing strategy. 2.0 Executive summary The purpose of this E-marketing business plan is to outline the E-marketing objectives, the target and segmentation of the brand to be launched, the product, its pricing, purchase processes, delivery and promotions. The plan also gives an overview of the company competitors, market analysis and methods of measuring the success of the brand. Finally, recommendations on what the company can employ in order to ensure the success of the brand come the year 2013 are given at the end. 3.0 Company summary The company was formed basically as a clothing company meant to reach out to upper income class of people. This has made the company to have a range of products that are expensive and as a result, it has had a limited but profitable market share. The company sells clothing of both sexes mainly jackets, men and lady suits as well as travel bags. Despite the tough market competition, the company has maintained a steady flow of income compared to companies with similar operations. Over the past few years, the company has been experiencing fast growth in sales and market. However, it will be worth for the company to extend its operation to the middle income group of people. The company has its own outlets which supply products to wholesalers and retailers. In terms of E-business, the company has developed a site for purposes of online purchases. In this site, customers get a clear description of the company products available, their prices and delivery details. The company also posts pictures on available products and information on promotions available. 4.0 E-Marketing Objectives The main objectives of the E-marketing by the company is effective customer acquisition and to obtain a direct response from them. This is important considering the ever increasing percentage of people using the internet for business purposes. A direct response from the customer will form an important base of information for the company in terms of customer satisfaction. Another objective of the E-marketing is maintaining customer loyalty and customer retention. E-marketing ensures customers get timely information concerning new products offered by the company before they can search for the same products elsewhere. 5.0 Company Analysis 5.1 SWOT analysis The main strengths of the company are regular customer needs analysis. This has enabled the company to produce products that achieve an instant reception. Specialization has enabled the company to always develop quality products that meet customer needs and tastes. Another strength of the company is its marketing strategies which are effective in maintaining its market share and customer loyalty, and obtaining customers. The main opportunity available for the company is the need for the product in the market. The company was able to conduct a needs analysis before coming up with the idea and realized that there was a need for the product. The results obtained from the needs analysis conducted by the company indicated that there will be a ready market for the brand upon its launch. Casual clothes available in the market are mainly cater for high income people hence there is a need to cover the middle income market. One major weakness of the company is the possession of a supply chain (SC) that is less complex as compared to those of its competitors. The company therefore has to expand its SC for the success of the brand in the market. A major threat to the success of the brand is the available of cheap imported products that serve the same purpose. 5.2 Competitors Overview Due to high quality products, the company does not have strong competitors within the UK. The few major competitors of the company do not have such great strengths that are able to threaten the success of the brand upon its launch. Their main strengths are diversification of their products to cater for all socio-economic classes and the possession of a very effective supply chain by some. This has also become a weakness for some to some extend due to lack of a clearly defined target market. This has always been an opportunity for this company in terms of customer loyalty. This is because some high income customers always want to identify with specific companies that provide products that only fit their class. 6.0 Market Analysis 6.1 Targeting and Segmentation The target and market segment for the new brand to be launched is females aged 17-35 who are fashion enthusiasts though they are of medium income level. The products have been developed specifically to ensure that this group of middle level customers is not disadvantaged by the high prices of the fashions. It also offers them something fashionable and cheap and unofficial to wear. With time, the brand could also be expanded to cater for men of the same age bracket as the ladies under consideration. 6.2 Customer Analysis Females aged 17-35 are people who have a great orientation to fashion compared to those aged past 35 years. This group of customers would also like to look presentable at all conditions/times for example office hours, on situations that allow for casual dressing or working at home. The age range encompasses those individuals who are economically productive and hence chances of good consumption levels are high. 7.0 Product The brand to be launched will sell clothes which are handmade and are suitable for casual wear and/or work. As earlier indicated, the products will only cater for middle income females of ages between 17-35 who are always enthusiastic for fashion. Cotton will be the major material to be used in developing the products especially considering the purpose of the product. 7.1 Pricing The pricing for the range of products offered by the new brand will be done once the products are ready. This is because the company will have to make consideration of production costs and prices of competitive similar or substitute products. The prices to be set will also put into consideration the economic ability of the target market. 7.2 Purchase process and delivery Purchases can be made online through the company’s website or customers who can access the company’s retail outlets can make direct purchases. In terms of delivery, the brand will offer shipping and customization services. The retail outlets will also be useful in making deliveries to customers who make online purchases but are far from the company area of operation. 8.0 Market Strategy According to Laermer and Simmons (2007), a good marketing strategy is developed after a careful analysis of the external and internal business environments as summarized in the business as well as competitor SWOT analysis. For all its other products, the company has been using product differentiation as its major marketing strategy. However, this brand is meant to reach out to a new and specific share of the market. That is, the products are meant only for females and more specifically those aged 17-35 years. The company is therefore going to use market segmentation as the marketing strategy for this brand. 8.1 Promotion 8.1.1 Sales Promotions According to Kahn and Raju (1991), the purpose of sales promotions is to increase the usage or trial of product and its sales. This means that a company will also make great market coverage and customer acquisition. In order to achieve these, company will make customer sales promotions for the new brand. These will include discounted prices, free gifts and free products to customers for making a certain amount of purchases. In order to make the customers aware of the offers available, the company will make advertisements over the media especially TV, famous radio stations and the newspapers. Diamond, (1990) adds that non-media marketing communication should also be employed so as to improve product availability and stimulate market demand. Trade promotions to wholesalers and retailers will also be made as this will serve to motivate them to sell the product. The promotion strategy will also be useful to strengthen the product recognition especially just after its launch. 8.1.2 Communications According to Clow and Baack (2007), a good communication strategy is the best way forward towards the attainment of the E-marketing objectives. Looking at the changing trends on the use of information technology, especially the internet, the company will use E-mails as the main communication strategy. This is because people have fully integrated the use of email into their professional and personal lives. This strategy will enable the company attain loyalty marketing and customer retention by reaching out to customers at their most convenient way and time. Evidence from research indicates that currently, 94% of customers expect confirmation of orders through e-mails and 90% expect shipping confirmations through the same channel (Direct Market Association 2006). 8.1.3 Stocking/logistics The stocking of the new brand will be done by the company itself. The company through its marketing department will ensure that all its retail outlets in different are continuously stocked with the new products depending on consumer demand. 8.2 Assessment of Marketing Effectiveness and measuring Success A business is most likely to succeed if its operations focus on its Critical Success Factors (CSFs). This will help to produce competitive products and avoid wastage of time and resources on less important areas. According to Gerstner and Holtausen (1986), healthy profits and market recognition are important yardsticks for analyzing the success of a brand. The company will therefore use sales scales and profits as the best way of measuring the success of the brand to be launched. This will also form a basis of measuring the effectiveness of its marketing strategy employed by the company. The company will also measure the brand success by assessing the impact of advertisement campaigns and sales promotions on the level of sales. A measure of this brand success will indicate how the brand has been perceived by the potential customers and the strength of the brand. It will also give a clear indication as to whether the products have met the needs of the customers and are affordable to them. If this situation does not apply, the company will be able to make another assessment of customer tastes and needs, and competitive and substitute products in the market. The level of sales to be used for this purpose will exclude those sales made under promotions. 10.0 Recommendations for the success of the brand in 2013 In order for the brand to become more successful in the year 2013, the company should increase the number of its retail outlets by simply expanding its supply chain. This will ensure that the brand not only gains a better market share within UK but also a fast expansion in Europe just a year after it launch. The company should also make regular but cheap promotions so as to ensure that the brand recognition in the market is strengthened. The company should also focus on strengthening the brand identity so as to motivate its workers and impact on their performance. According to Miles (2003) it is important that a company analyses the strength of its marketing and advertising strategies as they impact on the level of sales. The company will therefore use the impact of advertisement campaigns and sales promotions for the year 2012 on the level of sales as a method of analyzing the strength of its marketing and advertising strategies. If they are effective, the company will continue to use them and if not, the company will have to adopt new ways of doing the same. Under the E-marketing, the company should use affiliate marketing as a marketing strategy. Lingham (2005) reveals that though affiliate marketing is a profit-sharing strategy, the level of sales increment from it makes it worth considering. In this case, the company will reward users for completion of offers and for referring others to the site. This will expand the promotion networks which in turn will boost the brand recognition. References Clow Kenneth and Baack Donald (2007). Integrated Advertising, Promotion, and Marketing Communications (3rd ed). Pearson Education. New York. Diamond William (1990). “Schemas Determining the Incentive Value of Sales Promotions”. Psychology and Marketing. (3) pp, 163-175. DMA (2006). “The Power of Direct Marketing: ROI, Sales, Expenditures and Employment in the U.S”. (2006-2007 Ed). Direct Marketing Association. New York. Gerstner Eitan and Holtausen Duncan (1986). “Profitable Pricing when Market Segments Overlap”. Marketing Science. (1) pp.55-69. Kahn Baubara and Raju Jagmohan (1991). “Effects of Price Promotions on Variety Seeking and Reinforcement Behavior”. Marketing Science. (10) pp.316-337. Laermer Richard and Simmons Mark (2007). Punk Marketing. Harper Collins. New York. Lingham Vinny (11.October, 2005), Profit Sharing - The Performance Marketing Model of the Future. Online: http://www.vinnylingham.com/special-report-profit-sharing-the-performance-marketing-model-of-the-future.html. Viewed on 17th May, 2011. Miles Raymond (2003). Organizational Strategy, Structure, and Process. Stanford University Press. Stanford. 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