Executive Summary
This assignment is a marketing plan for G Company highly regarded in the electronic markets that will enable it to reach the full profit potential of its new small appliances line. The first thing done is the creation of a mission statement that should be adopted as it launches the new line of small appliances. Target market for the new product is described as well as developing marketing objectives on the basis of product, price, distribution and promotion strategies.
A complete situation analysis that includes classification of the company’s products by using a three-way consumer products classification system together with analysis of its competitive environment by utilizing Porter’s five forces model of competitive forces has been done. In addition a SWOT analysis for G Company is also done whereby three strengths and weaknesses are described, as well as three current/potential opportunities and threats are brought to light.
Marketing strategies for each element of the market mix including promotion, product, price and distribution have been described and supported. The paper also has developed an action plan for implementing the identified strategies and finally, a monitoring procedure has also been drafted specifying particular actions to be taken to measure effectiveness of the plan.
Mission Statement
Our mission is to be a world leader in providing our customers with quality, elegant, affordable and reliable small appliance products.
Market Objectives
Target market
The targeted markets for the new products are retail electronic outlets, supermarkets as well as individuals within the United States. These markets generally allow the company to directly or indirectly deal with consumers of the electronic appliance. After properly establishing the home market, the global market will also be resorted to, this will help us attain the desired profit as the company will have a huge volume of sales.
Objectives
- Significantly reduce the prices of the appliances by 10% within the three years.
- To increase the products’ awareness among the target audiences by 25% and 35% in year one and two respectively.
- Use print media and television commercials to create desired awareness which will lead to increase in sales.
- To use distribution channels that will help remove or reduce possible consumers’ resistance to buy our products, thus increasing sale by 25% within the first 12 months.
Competitive situation analysis
The new products can be classified into; specialty goods which are completely unique in the mind of the buyers hence they will strive to obtain such products, these products are necessarily expensive and the uniqueness is as a result of brand name. Factors such as color, outlook, price, quality and style determine one’s decision to purchase or not. Finally, convenient goods are those products that potential consumers want to buy with minimal effort and are frequently bought but in small quantities and non durable (Kurtz et al, 2008).
According to porters five forces model of competitive forces, G Company might be faced with entry of new competitors, since it is known that business ventures such as electronics are profitable hence yielding more returns more firms will be attracted eventually reducing projected profitability. Intensity of rivalry among the existing competitors, similar firms/companies will do everything at their disposal to retain their existence in the market at all cost bringing about powerful competitive strategies.
There is also a threat of substitute products or services; the presence of products outside the sphere of the common product boundaries raises the probability of consumers to switch to the alternative especially if they are of high quality and cheaper. These two can put substantial pressure to the company if not appropriately handled and may negatively affect the desired objectives.
SWOT analysis
The analysis is aimed at examining the company and its environment. Among the strengths in the company concerning the new products are; the presence of expertise in the engineers and designers, the company is highly regarded as an electronic giant in the market place, low debt to equity ratio, high quality new product, the brand XG and the logo used by the company is well known by consumers, lower products prices the company also have at its disposal an excellent relationship with the existing suppliers. In having top engineers and designers places the company in a better position to come up with a very appealing product as it will be of high quality, effective, reliable and cheap. Having a well known logo and brand ensures that the company’s product will easily be distinguished in the market, the excellent relationship it has with the current supplier make the company comfortably distribute the new product. Finally, a new product coupled with low prices will attract the consumers hence huge sales realized. The strengths that should be considered as core competences are high quality new product, low prices, well recognized logo and brand and the company’s reputation as world electronic giant.
G Company has the following weaknesses; lack of marketing expertise, we are not told whether or not the company has at their disposal those who can help to popularize the product. The company is well known and recognized as a giant in the electronic market and in production of new products hence the target market may not be surprised by this new innovation. It does not have a well established internal distribution channels, they heavily relay on external suppliers, despite the fact that the two have an excellent relationship currently; no one knows what might happen to such a relationship in future.
Opportunities include; in this era of information technology, under go joined ventures/merging with other well established companies such as LG, Sony, the company can use it to reach wider potential consumers, there is a possibility of it opening up other markets across the globe, the company can also benefit from the exit from the market of companies that can’t cope with the stiff competition. These will result to high sales hence more profits.
G Company’s potential threats are; emergence of a new competitor with much cheaper and high quality product, introduction of heavy taxes to the product hence higher prices, difficulties in finding other suppliers (Kurtz et al, 2008). All these may hinder our mission.
Marketing strategies
Product
The new products are electronic appliances that are small in size, very high quality and stylish. The benefits of using the product are; the consumer will enjoy the value of their money, reliability as well as efficiency will also be attained when these products are used, since the products are durable, there will be no need for frequent repaired or buying of new ones. New manufacturing machines that comply with the new technology will have to be used in producing these products.
Pricing
Since the products are a line of electronic appliances the prices will range from $3.00 to $80.00 for an item. Both cost-based and value-based pricing opt to be considered. Those who buy in bulk and pay promptly will receive a 10% discount of the total market. Credit cards and online payment will be accepted, and net payment is within 14 days.
Distribution
The products will be placed in major electronic retail shops, selected supermarkets and direct sales representatives will also help distribute the products. In addition to using aggressive sales, passive sales will also be used where consumers are free to come back later. The sales people will be contracted for a period of two years. The products will be sold to both individuals and to redistributors, the production capacity is 5,000 units per hour and the storage facility can accommodate 5 million units.
Promotion
Print media, billboards, radio jiggles, celebrities and television commercials will be used promoting the new products. Magazines, newspapers, brochures will be used to advertise the products. A few randomly selected individuals and redistributors will be offered with free samples of the products. The company will also resort to sponsoring workshops and events (football, basketball, rugby) (Kurtz et al. 2008).
Tactics and action plan
Monitoring procedures
To measure the effectiveness of the plan, comprehensive research will be carried out. These will include, analyzing the sales, if indeed there is an increase and by how much the information will be provided by the sales department, a survey on part of customers will also be done in order to establish how much they know of our product as well as other information such as if they have bought our goods, whether they have influenced others and how they perceive the new product.
Conclusions
In any organization, developing a marketing plan and adhering to its action plan is vital for the survival of business organizations in this very competitive business world.
References
Boone, E & Kurtz, D. (2008). Contemporary Marketing. Boston: South-Western Publisher.