Company G’s Three Year Marketing Plan Marketing plan Essay

Company G’s develops electronic appliances based on current technology. The marketing plans exemplify the strategies employed and market segment to assign new consumers and create solid financial benefits while retaining the existing customers. G’s Company is a unique electronic appliance developer which gives an advantage over the competitors by exposing he customers to a new outlet of electronic appliances. This fulfills the real need of the competent electronic appliance developer and expands the company’s reach to populations who have no yet subscribed for our products. The company will fund the development of the electronic appliances by provision of consultation services for retailers willing to use products for promotional services. The consultations will come up with advertisement sponsorship for the company. In the initial 3 years of the business, we expect consultation services to form part of our revenue stream. Mission We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.† Product Description The first product of microwaves will come in three different sizes; compact, medium and large capacity microwaves. The new line microwaves will help the power designers and low noise amplifiers to shorten the design cycles as well as becoming consumer friendly with minimal environmental impact and energy saving. Furthermore, the demands of our customers in microwaves are based on quality products and convenience. Besides, the company will employ effective distribution channels intertwined with online purchasing. We hope this will make the company derive its mission home. Convenience products: Compact Microwave This will be a small, portable microwave available for the customers. Compacts are the dominant microwaves in the market today. Ours will measure 18 inches wide and 14 inches long and 12 inches tall. Compact ovens will be rated as 700 watts of power and capacitate 27 liters. The compact ovens will primarily be used for reheating food and preparing microwave popcorn and food. They are not made to cook large meals. Compact products will be price convenient hence the consumers will spend minimal time to compare due to our brand prestige. Shopping Products: Medium Capacity Microwave These microwave products a larger than compact microwaves. They will measure 20 inches wide, with the same length and height to the compact microwaves. They will carry 45 liters and run-up to 1000 watts. They will be the standard family microwaves with added grills and a few features. These microwaves will target those who want to do home cooking, essential, a growing family. The company market analysis reveals that capacity microwaves are less purchased and are bound to stay in the warehouse for a long time. Specialty Products: Large Capacity Microwave They will be the large cooking microwaves for preparing large meals. Their capacity will handle (9 by 13 inch) cooking tall items like roasts and casserole dishes. They will have an auto look with precise temperature control measures. The large capacity ovens will be powered by 2000 watts and contain 60 liters of capacity. With the uniqueness, the buyers are expected to expend ample time balancing the effort of purchase. However, the company brand prestige will enable the consumers to choose our products. Target Markets Direct consumer markets with arrangements of successful licensing of products and services. The company learned that the number of direct consumers have increased in the market. We hope for higher sales in the direct consumer markets with increased demand. The number of families has grown and the demand of the microwave has aloso grown in the market. Therefore, the compact and medium microwaves targets the increased number of families and singles. Nonmanufacturing and nonindustrial segments of the business to business market with customer networks such as hotels, family homes and institutions. The large capacity and medium capacity microwaves have brand prestige and that fits the personality and lifestyle of the customers. With the new line of microwave products, the consumers will make purchases due to the technological advances of the products. Large company and stand-alone retail companies with extensive dealer, broker or distribution network. Company G’s marketing brand will enable other like-minded microwave companies to purchase our products for re-sale. The brand prestige fulfills their needs from the feedback of the consumers. Competition Analysis Risk of Entry by Potential Competitors The market forecasts predict that the products of the company are likely to diffuse in the market faster than imagined. With many people buying the electronic appliances, the market may experience new entrants given the prevailing opportunity. This will increase the capacity of the industry and lead to stiff market competition hence lower the current costs. Given that the existent economic, governmental, cost advantage and brand loyalty barriers, the company is optimistic of controlling the market share even if new companies join the business. Rivalry among Current Competitors The electronic business has attracted many companies which have led for the struggle of the market share between G’s and the competitors. The cut-throat competition in the market leads to low-profit margins as the low-income consumers opt for a cheaper product in the market. Based on the presence of global customers, growth rate of the industry and demand conditions of the product, the company operates optimistically compared to other competitors with undefined establishment factors of brand. Bargaining Power of the Buyers The power of the consumers or distributors to bargain down the prices of the products poses a higher competition for the company. The company has established the target consumers to be high and middle-income earners. This population is usually driven by the quality of the products the company offers as opposed to the high prices charged. The high-income earners do not exhibit a high bargaining power as compared to their lower income earner counterparts. The industry will maintain the prices and try reducing the cost of production to maximize on their profit margins. The high-income and middle-income earners have the required information on our products and will emphasize on the quality of the products. Bargaining Power of Suppliers The suppliers of the company are on alert of increasing their bargaining power. Provided the high-quality of the products, the raw materials also come at a high price. The supplies, therefore, finds it unreasonable to increase their prices due to fixed prices. The only threat is the uniqueness of the products of the suppliers. They have a high cost of switching because of the basic need of their products. Threat of Substitute Products The company identified high-income and middle- income earners as their competent consumers. Provided the high-quality products, it is the pride of the company since customer satisfaction is guaranteed. The substitutes such as the saucepan, stoves and other microwaves such as Flavor microwave are technology unconscious hence the company maintains its prices for greater profits. SWOT Analysis Strengths Value pricing high quality, market orientation and support services and product customization Long-term relationships with primary suppliers High percentage of reorder business Weaknesses little room for expansion lack of employee talent management scarce human resource opportunities Strategic alliances Technological advances Easy distribution Threats Slow diffusion rate of appliance Alteration of traditional channel relationships Competition Strengths Core Competency Strengths The high percentage of reorder business implies customer satisfaction and promising word of mouth advertisement High quality innovative product- brand prestige. Other Strengths The long-term relationships with the primary suppliers have led to the knowledge share of product adherence to quality standards, requirement and a common mission through-out the production and development process. The differentiation strategy as a result of commitment to, value pricing, high quality, market orientation and support services and product customization Weaknesses Human resource management of the company predicaments in the near future. This is because, with the brand prestige, the company is likely to expand, however, there are limited qualified employees such as engineers in the job market. Company G’s current facilities are crowded; there is little room for additional employees or new equipment for expansion of the business. Lack of management of the employee talent that requires the company to create a department for nurturing the talents, this requires additional financial muscles the company may not afford any soon. Opportunities Strategic alliances that enhance the products of the company that will allow production of a myriad of new products, sharing of resources and increase the customer base. Technological advances have freed up time for consumers as well as bringing efficiency in product promotion and all product enquiries The medium and compact microwaves are easily distributed locally, nationally and globally. Business globalization creates an opportunity for new customer relationship establishment in foreign markets. Threats Slow diffusion rate of appliance may affect the sales return of the new products leading to low profits and low growth rate. Reengineering, outsourcing and resizing trends in product development may alter traditional channel relationships with dealers, brokers and distributors of eliminate them completely. Theft of brand piracy and trade secrets through unauthorized copying are difficult to control leading to unsecured branding. Competition from traditional microwave producers and other promotional items is strong. This poses a challenge to meeting the cost demands of production. Marketing Objectives Product Objective To commit to service and quality products to effectively implement the niche differentiation strategy in the diverse marketplace. The objective is a distinct and realistic to the company mission that will assist company G’s satisfy the customers. To improve the standard of the products the company offers now by incorporating the knowledge of the needs of customers and specific opportunities for offering the new products. To create new products that will use its new technology, equipment and knowledge base. Price Objective To verify the price of the new products and services to the customers. The objective is a distinct and realistic to the company mission that will assist company G’s satisfy the customers. To check the pricing of the competitors manufacturing microwaves To use the pricing of the competitor’s research to meet price marketing objectives Place Objective To define the most secured place of the new products To make a new product easily available to the consumers within 24 hours of manufacture using elaborate distribution channels for easy access by the customers hence focusing on the mission. To evaluate the degree of customer interaction with the new products Promotion Objective To conduct simple research and analyze substitute products with the aim of developing specialty advertising products that are technologically conscious, but not just calendar related. To better understand the satisfaction and needs of current customers through benchmarking on marketing research and company G’s marketing information system. The company will create a website page immediately where customers will post their feedback on the products. To use the product calendar as a promotional tool that will provide a microwave to the customers as advertisement premium. Marketing Strategy The marketing strategy of G’s company is focused on satisfaction of the prospect market and current consumers by providing the best microwave appliances in the market. The target market share based on projected demand and supply is also of our interest. With over 10 years of experience in the market, the workforce will provide the support needed by the customers to enable us meet our objectives. The knowledge and expertise from the employees from marketing and sales will provide the company with feedback for harmonizing the strategies based on the marketing objectives the company adopted. Distinct strategies Company G’s high quality products specialty product advertisement is customized to the needs of the consumers. The service and product value is reflected in the company’s premium price. The company will be sensitive to the elasticity of price of the products and overall demands of customers. G’s company will be sensitive to account for the place of new product distribution, product availability and the level of the consumer interaction with the microwaves. The company already had a brand that was well known by the customers. The brand prestige that focuses on the middle and high-income earners will be improved by producing the new satisfactory products. Product Strategy G’s company is committed to supplying affordable and quality wise products to the customers. Company G’s intangible attributes is its ability to meet or exceed the consistency of customers’ expectations, its anticipation of new customer needs and its responding speed to the demands of customers. Such intangible attributes are difficult for the competitors to copy, hence giving the company a competitive advantage. Boosting the consumer confidence. Some consumers are often hesitant to buy the product they have little knowledge about. The marketing campaign will emphasis on the quality and value of the products which will result to additional cash register Price Strategy Company G’s high quality products specialty product advertisement is customized to the needs of the consumers. The service and product value is reflected in the company’s premium price. The company will be sensitive to the elasticity of price of the products and overall demands of customers. The company’s new products have a prestige of high quality. The prices offered will account for warranties, endorsements and testimonials that will make the buying decision easier for the customer. The company will employ the trial and error method to fix the market prices, but remain flexible. The results of the new pricing initiative will be closely monitored to enable us expand the customer base. Place Strategy G’s company will be sensitive to account for the place of new product distribution, product availability and the level of the consumer interaction with the microwaves. The company intends to be flexible on the supplies, distribution and customer interactions. Such practices will promote planning and meet the deadlines of product sales. The company already had a brand that was well known by the customers. The brand prestige that focuses on the middle and high-income earners will be improved by producing the new satisfactory products. Promotion Strategy Approximately 80 percent of the company reorders every year, so the bulk of promotional expenditures will focus on new product offerings through publications, journals and direct-email advertising. The remaining promotional resources will be directed to personal selling of new products. This will enable the company cut on the costs and reduce wastage of financial and human resources. The company will conduct a campaign aimed at promoting a new product. To achieve this, the company will create logos and names of products while remaining within the advertising budget. Tactics and Action Plan G’s company and the new products require extensive customization to not only meet but exceed the needs of the customers. It is, therefore, necessary to reorganize the customer groups and market function. The new marketing strategies intend permit the company to invest their effort on marketing exclusively on specifications and the needs of the customer segments. Product action plan Tactic Due Date Responsible Party Develop marketing information system to monitor customer satisfaction by year two November 15th , 2014 Business Analysis Team Implement any changes implemented by the business analysis team November 15th , 2014 Business Analysis Team Develop new product offering with their potential customers November 15th , 2014 Production Manager Price action plan Tactic Due Date Responsible Party Create three sales manager positions November 1, 2014 President Develop marketing information system to monitor price feedback January 15, 2015 Marketing Director Evaluate the profitability of the new product February 15, 2015 Business Analysis Team Place Action Plan tactic Due Date Responsible Party Distribute free samples or discounted microwaves to orphanage institutions November 15th ,2014 Sales Manager Increase direct sales through sales representatives September 1, 2014 Sales Manager Increase sales of the products to individuals and re-sellers September 1, 2014 Sales Manager Promotion action plan Tactic Due Date Responsible Party Assign 3 research team on potential new products offering and client October 1, 2014 Marketing Director Analyze the current billing practices and cycles September 1, 2014 Marketing Director Design customer survey project September 1, 2014 Business Analysis Team Monitoring Procedures To evaluate the marketing plan effectiveness, the company will compare its actual performance with the objectives of the plans. The procedures include, however, not limited to the following; Monitoring Activity Due Date Responsible Party The use of project management concept procedure to evaluate marketing plan implementation through establishment of human resource needs, time, and budgetary expenditures November 15th, 2014 – December 15th, 20114 yearly Business Analysis Team Each project team will be responsible for determining the changes to be made in product focus from the result of studies from its area. The company will conduct internal audit to evaluate the activities. September 1, 2014 – October 15th, 20114 every year President A perceptual comparison of planned and actual activities will be conducted monthly through self assessment by the company business analysis team. Monthly Business Analysis Team Reference Luther, W. M. (2001). The marketing plan: How to prepare and implement it. New York: AMACOM. Source document