Introduction
Company G is a well-established organization, which currently operates in the electronics current market. Despite the extended years of operation, the company has some issues with the marketing plan, as they were not able to reach the desired goals in terms of efficiency and productivity. Recently, the company introduced a line of small appliances such as a mixer, blender, iron, and a kettle, and the prototype testing showed the rising demand for these goods.
The principal goal of this marketing plan is to develop a sophisticated advertising strategy for the company while increasing its profitability and creating a perception of the lowest-cost producer of high-quality goods. In this case, the company’s position, competitors’ and environmental analyses will contribute to the introduction of sophisticated marketing campaigns.
Product Description and Classification
Product Description and Support of the Mission
Company G Mission Statement
“We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronics solutions.”
Company G currently introduced a new product line of small appliances, which is represented by a mixer, blender, iron, and a kettle. In this case, new electronic iron was selected as the product for the market plan. The new line offers different colors and regimes, which provide new features to enhance the ironing experience. Meanwhile, an innovative position of the buttons contributes to sufficient changing of the settings, and the automatic turn off ensures safety and electricity efficiency of the usage of the appliance. The main differentiation of the product is its ability to increase or decrease the temperature to assure sufficient ironing and avoid the emergency.
The primary goal of this product line is to enhance the living conditions of the customers, as the proposed appliances will ease the ironing process. Meanwhile, the products’ design, a comfortable location of the buttons, and high-quality materials ensure safety while efficiently blending with the interior of the apartment or house. A combination of these factors assures the compliance of the products’ features with the mission statement while aiming at the improvement of convenience, innovation, and high quality.
Consumer Product Classification
The overall functioning of the market is complicated, and the products’ have to be divided into three groups based on consumer behavior (Boone & Kurtz, 2015). In this case, convenience, shopping, and specialty products are the subsections of division (Boone & Kurtz, 2015).
Meanwhile, the electronic market tends to focus on shopping and specialty products, as the decision-making is complicated with the lower frequency and sufficient planning before purchasing (Boone & Kurtz, 2015). In this case, the critical difference between these product groups is the fact that specialty products require long-term planning, rare purchases, high prices, fast delivery, and personal selling (Boone & Kurtz, 2015). Meanwhile, the shopping products require less planning but highlight the significance of the price to quality ratio.
In the context of the presented case, the primary goal of this section is to determine the subgroup of a new model of the iron proposed as an innovational product. The iron can be regarded as a shopping product, as it requires decision-making, and the price to quality ratio plays a substantial role in this instance. Meanwhile, the seller’s image is vital, as the customers tend to build the associations of the particular features with the brand (Boone & Kurtz, 2015). A combination of these factors contributes to the belonging of Company G’s iron to the selected group of products due to the necessity of research for the decision-making.
In the end, this approach is vital to design a well-developed marketing strategy, as it determines the primary features of consumer behavior. Meanwhile, this analysis assists in understanding the potential options of the pricing strategy formation due to the vitality of price to quality ratio to the decision-making process. Lastly, it determines the necessity to pay vehement attention to the brand image, as, otherwise, the company will lose its market share.
Target Market
The target market of the iron users is rather vast, as having this appliance is considered as vitality. Nonetheless, in the context of the presented case, it is apparent that the primary target audience is women with the middle-level of income, who want to reduce their electricity bills and are looking for the stylish appliances. In the context of the presented case, the key variables are demographic and psychographic, as they will contribute to determining the overall marketing strategy while determining the acceptable price and distribution channels.
Firstly, the demographic characteristics have to be described, as this variable has a vehement impact on the overall understanding of the consumer behavior of the selected audience. The initial target audience is women, as an innovative model of irons tends to comply with the aesthetic and design preferences (Huddleston & Minahan, 2011). In turn, the middle-level of income is selected, as this social segment occupies a significant percentage of the overall population in the United States of America (Hoyer, Maclnnis, & Pieters, 2013).
Meanwhile, marital status is not prioritized. A combination of these demographic characteristics determines the overall marking activities, which the company has to pursue to ensure the delivery of the relevant message to the users. Speaking of psychographics, this matter is represented by behavioral patterns of the women. In the context of the presented case, they have a tendency and desire to minimize the electricity bills, as this aspect has a critical influence on the planning and budgeting of the household. Meanwhile, the continuous desire to keep up with fashion plays a crucial role and underlines the essentiality of innovation and design.
Competitive Situation Analysis
Analysis of Competition using Porter’s Five Forces Model
Competitive analysis plays a substantial role in the development of the company’s strategy, as it contributes to understanding the intensity of the competition. In the context of the presented case, Porter’s Fiver Forces will portray the nature of competition from dissimilar angles.
Competitive Rivalry
The overall level of competition in the electric iron industry is high due to the extended number of companies has a well-established image. The primary competitors, which have a presence in the world are Rowenta, Panasonic, Hamilton Beach, Shark, and Black & Decker (BestBuy: Irons, 2016). Meanwhile, the overall competition tends to intensify, as the number of producers is growing.
Potential New Entrants
The potential threat of new entrants is high since the companies tend to appear in the market rapidly while causing a threat to the functioning and image of Company G. This matter has to be considered, as newcomers tend to utilize sophisticated strategies to encourage growth.
Bargaining Power of Buyers
This aspect is medium. The consumer can influence the formation of pricing by changing their preferences and behavioral patterns. Nonetheless, the customers do not have the intention to modify the prices of the small appliances due to their appropriate price to quality ratio.
Bargaining Power of Suppliers: This factor is medium
The ability to switch between the suppliers is dependent on the required parts for manufacturing. Meanwhile, the majority of the competitors have trusting and long-term relationships with suppliers while ensuring their safety.
Substitutes
In turn, the substitute products are present in the market in high volumes, as the overall competition is intensive and continues to grow. In this case, the companies tended to rely on their brand images while complying with the customer’s expectations. Meanwhile, following the trends associated with functionality, efficiency, innovation, and design could be regarded as another matter for the competitors’ success, as the prioritization of these aspects was the primary driver for innovation and development of the novel product lines (Intertek, 2011).
SWOT Analysis
The critical goal of this section is to develop SWOT analysis while assessing internal and external factors, which might influence the functioning of the organization. The table below depicts the bullet points of strengths, weaknesses, opportunities, and threats for Company G.
Strengths
The first competence is the company’s functioning in the market, as the organization has extended years of operation. This aspect can be regarded as a strength, as the customers are aware of the brand. This matter will minimize the expenses on the advertisement and cause a rapid increase in the product’s popularity in the market.
Another feature is well-established and reliable relationships with the suppliers. This advantage is critical for the production process and overall sustainability of Company G. In turn, this competence can be regarded as critical for the organizational success, as the well-established network with suppliers ensures in time delivery and increases customer satisfaction due to the elimination of the waiting time.
Lastly, efficient production processes can be viewed as the company’s strength, as this matter contributes to the development of the company’s functioning in the market while being able to produce high-quality products. It is apparent that this feature correlates with the strength mentioned above, as the combination of these aspects ensures the delivery of the appliances in time.
Based on the factors provided above, well-established relationships with suppliers and sufficient production could be regarded as the primary competencies, which have to be vehemently emphasized in the company’s strategy. A combination of these factors helps reduce waiting time. Meanwhile, it determines the maintenance of the quality of the products at a high level.
Weaknesses
The first drawback of the company’s operation is the lack of global recognition. The role of this aspect cannot be underestimated, as it weakens the organization’s strength among the competitors. This drawback has to be minimized in the recent future to ensure the increase of the market share.
In turn, the insufficient marketing strategy could be regarded as another drawback, as it defines the lack of a company’s recognition in the market. It is apparent that this aspect is substantial since it describes the company’s position among the competitors. Meanwhile, this feature has a considerable influence on the overall revenue while determining the organization’s profit and liquidity.
Lastly, the absence of established relationships with suppliers for a new product can also be regarded as a weakness. This matter is critical as it can negatively affect waiting time. Consequently, it will contribute to the loss of revenue while having a destructive influence on the customer’s satisfaction.
Opportunities
One of the opportunities is the positive customer’s responsiveness to the prototype testing, as this matter could be regarded as changes in customer’s preferences. This aspect is vital since it can be viewed as a base for the development of the new products while occupying new niches. This matter could be regarded as one of the tools for expansion.
In turn, the possibility to expand to the external markets could be depicted as another opportunity. Nowadays, companies tend to use this aspect tool as an instrument to increase their geographical coverage and revenues (Cook, Alston, & Raia, 2012). In the context of Company G, this aspect cannot be underestimated, as it will have a beneficial influence on the company’s recognition.
Lastly, the growth of the industry will also contribute to the company’s growth. The correlation with the previous opportunity is apparent, as this matter will lead to the possibility to discover new niches. Meanwhile, it can be regarded as a critical driver for innovation and development of new products.
Threats
One of the threats is intensifying competition, as newcomers tend to appear on the market. Meanwhile, highly recognized companies occupy and significant market share while having a loyal customer base simultaneously. This aspect can be viewed as a threat, as it has a substantial influence on the company’s recognition and market share.
Furthermore, the changes in consumer behavior might lead to a lack of response to a new product (Boone & Kurtz, 2015). This factor will pose the risk to organizational efficiency. Meanwhile, it will cause a substantial threat to the company’s financial performance.
Despite the positive influence of technological improvement, the inability to maintain the changes with the competitors could be viewed as a potential reason for failure. Meanwhile, it will impact the company’s market share and profitability. In this case, it is critical to consider this matter for strategy development to ensure organizational performance.
Market Objectives
Product Objective
Manufacture and design a product, which complies with the needs of the target audience and increases customer satisfaction by 15% within a year (2017).
Price Objective
Establish a relevant price by making it 5% lower than the competitors’ and ensure a valid price-to-quality ratio by the end of the first year of operations while causing a financial growth of 5% every year.
Place Objective
Increase the number of distribution channels by 20 units by the second year of operations (2018).
Promotion Objective
Increase brand recognition by using various promotion tools leading to the rise of the market share by 7 % every year and growth in revenue by 5%.
Marketing Strategies and Implementation
Marketing Strategies
The primary goal of this section is to design the strategies for each component of the marketing mix to assure the ability to reach the proposed objectives.
Product Strategies
- Provide a favorable environment for the designers of the products;
- Utilize customer’s initiatives for the product’s design and development with the assistance of the customer’s satisfaction inquiry;
- Improvement of the quality of the product by increasing quality control.
Price Strategies
- Assure the ability to minimize the costs of products to reduce the prices by selecting suitable suppliers;
- Ensure the sufficient flow of the manufacturing processes to minimize the waiting time while improving the price to quality ratio;
- Display the compliance of the price to quality ratio while assessing the pricing strategies of the competitors.
Place Strategies
- Increase the overall number of the physical distribution channels by developing partnerships;
- Contribute to the possibility to buy products online while designing a website;
- Expanding the geographical locations by increasing the number of distributors in different regions.
Promotion Strategies
- Increase the company’s online presence via social networks and website;
- Have a positive influence on the company’s recognition in the United States of America;
- Build trusting relationships with the customer by engaging them in various interactive activities.
Explanation of Strategies
The presented strategies are interdependent and tend to support each other, as this feature assures the effective achievement of the stated goals simultaneously. In this case, the strategies correspond with the objectives mentioned above, as they aim to increase the company’s recognition, profitability, and efficiency. Meanwhile, they tend to support the enlargement of the company while assuring that the favorable conditions for this development are present. A combination of these methods will have an advantageous influence on the overall functioning of the organization as they tend to depict the issues from dissimilar angles.
Marketing Implementation
Product Action Plan
Price Action Plan
Place Action Plan
Promotion Action Plan
Monitoring Procedures
The primary goal of the section is to determine and describe the monitoring procedures, as the overall efficiency has to the measured on a regular basis to ensure the ability to reach the organizational goals and objectives. Firstly, the quality control has to be regarded as a constant activity due to the necessity to comply with customer’s expectations and needs. In turn, this matter will have a beneficial effect on the company’s image and assure the well-developed mission statement.
Another aspect is the customer’s satisfaction inquiry, as the customers are able to define a firm’s success and determine the overall success of the product in the market. In turn, this activity will have a beneficial influence on the development of the innovational features as the consumers can propose their opinions by filling in the feedback forms.
Lastly, the financial performance (evaluation of finances and liquidity) has to be monitored to ensure the improvements in the company’s productivity and liquidity. These matters are critical elements for the goals’ achievement. Moreover, they define the overall success of the organization in the market while provisioning the future performance.
References
BestBuy: Irons. (2016). Web.
Boone, L., & Kurtz, D. (2015). Contemporary marketing. Boston, MA: South-Western Cengage Learning.
Cook, T., Alston, R., & Raia, K. (2012). Mastering import & export management. New York, NY: AMACOM.
Hoyer, W., Maclnnis, D., & Pieters, R. (2013). Consumer behavior. South-Western Cengage Learning.
Huddleston, P., & Minahan, S. (2011). Consumer behavior: Women and shopping. New York, NY: Business Expert Press LLC.
Intertek. (2011). Evolving smart technologies across home appliance and consumer electronics markets. Web.