Company G: 3-Year Marketing Plan, Marketing Plan Example
Words: 1937Marketing Plan
Company G is introducing a new, top-quality line of small appliances. The new line has a decidingly appealing visual design that gives the distinct impression of quality and artistic elegance. Quality testing has determined the product is one of the most reliable in the small appliance industry. Company G is excited to show the details of this plan and how it will be a highly profitable in this market.
Company G is an electronics company that works on developing innovative technologies in the field of small appliances. We believe that imagination along with knowledge can make the consumers lives a lot easier. We integrate style, design and quality in an efficient way to help the customers get maximum benefit from Company G’s products.
The ideal customer is between the ages of 21-35 who enjoys the contemporary lifestyles. They will often be the “city-dwellers” or the young “stylish” population. Company G pictures them as being on the go, active people. In addition, the target market is up and coming professionals. The focus is on the city dwellers, which prefer the sleek modern yet still affordable designs.
Company G’s target customers will be either the single bachelor/bachelorette or newly married. They will be the type that appears to have the newest nicest things, without the price tag. They will also hit the older college kids who have apartments instead of dorms. Usage will be moderate to average; dependability is still a key factor. The customer desires luxury and prestige without the price tag. This will be primarily for home use, not business.
Company G’s product object is to enter the small appliance market within the next six months. The suppliers will be secured within the next 45 days. The location for the new manufacturing wills fully functioning within thirty days. Manufacturing of the new product small appliance line will begin within 45 days. Company G will offer a free trial to many home retailer stores and appliance retailers as a form of promotion within four months. The new product line will be on the retailers’ shelves and ready for use within six months.
Company G’s objective is to turn a $100,000 profit margin in the first year of launching the product. The company will offer the product online for sales directly from the manufacturer. The retailers will provide solid sales, but cut into the profit. When negotiating with the retailers there will be a 12% cap on profit from sales. Pricing of appliances will be competitive with in the small appliance market, so there will be little need for mark-ups or mark-downs. Advertising of the new product will be kept at 10% of the expected net sales win the first year.
The manufacturing warehouse will be set up within the next 30 days to the existing warehouse for Company G’s current electronic manufacturing. There will be no need for additional land to be purchased so cost is minimal. The will be room in the new warehouse for storage of products needed in direct sales. The top three ideal retailers will be Home Depot, Target, and Bed Bath and Beyond. They are top in the retailer markets for small appliances and they retail middle-line products. The negotiations and details will be complete within the next three months. Finally, there will be an online catalog set up for direct retailing. This will be complete within five months, allowing one month for trouble shooting prior to official launching.
Company G will have their line of small appliances manufactured and a small amount ready for promotion within four months. There will be magazine and test markets that will receive a sample to evaluate and promote. This will be in process within four months. Retailers will have test samples within five months. Preferred brochures and coupons will be mailed within five months to target market clientele. All advertising in magazines, newspapers and commercials will be active within four months.
Competitive Situation Analysis
Consumer Product Classification
Company G has a line of products that are purchased regularly, requiring little time and effort on shopping. Even though the new small appliance line will offer convenience, there is still a certain perceived risk. Company G is new to the market, the name is not established. They are involved with suppliers and buyers ensuring complete satisfaction. There is a good structure in place for problem solving and to address issues as necessary.
Analysis of Competition Using Porter’s 5 Forces Model
The analysis of competitions, using Porter’s 5 forces Model shows a highly favorable return for the Company G to be able to serve their clients. Competitive rivalry, threats from new entrants, threats from buyers, threats from suppliers, and threats from substitutes are all areas company G need to address. The following is the detailed findings:
Competitive Rivalry There are several strong competitive rivals in the small appliance field. The biggest threat currently is Company XG is already established in the electronic field and their name goes along with reputability. There is not a high degree of product differential so Company G has to take advantage of every opportunity to set their product apart.
Threat from New Entrants There is always potential threats from new entrants in the small appliance field. Existing companies will most likely seek retaliation by attempting to mimicking or duplicating our small appliance line. Company G has a top line of Engineers and designers that will keep up on the latest new technology, and lead the market. Establishing our consumers with brand loyalty based on overall satisfaction will ensure customer loyalty.
Threat from Buyers Treats from buyers are dependent on the concentration of the buyer. Company G has high profitability by providing quality small appliances at great prices. The role of quality and service will provide a higher demand for both the buyer and the seller.
Threat from Suppliers Company G suppliers has strong branding. The current suppliers have no plans or resources to threaten integrate forward. The prices are very competitive and Company G has enough room to keep the prices flexible as the market demands.
Threat from Substitutes There is several substitutes in the small appliance lines. The dependability and appearance of Company G’s products, there will be very few to no substitutes that will offer price, appearance and dependability.
Company G’s SWOT Analysis shows the core competencies, areas they need improvement, areas for potential new sales, and the obstacles they need to overcome in order to be successful. Company G’s strengths, weaknesses, opportunities, and threats analysis is as follows:
|STRENGTHS · Reliability· Appearance· Price||WEAKNESSES· Credibility· New Suppliers· Brand Recognition|
|OPPORTUNITIES· Supplier relationships· Higher-end product line· Lower-end Product Line||THREATS· Company XG· Company Z· Company Y|
Reliability is the first strength for company G. The company has a reputable name in the electronic market. Their new small appliance line has with stood rigorous testing and shown the new small appliance line to be reliable as well.
The small appliance line is visually appealing. The appearance gives potential buyers the distinct impression associated with quality and artistic elegance. It is sleek and stylish design will give the appearance of upscale prestige.
In addition to reliability and appearance, Company G has created a moderate price bracket for the new small appliance line. It allows consumers to purchase these appliances at a price they can afford.
Company G lacks the credibility in the line of small appliances. Being a brand new company in this field, they may have the best product, but there will still be some skepticism when consumers are choosing their appliance.
This new line requires Company G to turn to new raw material suppliers. Their excellent working relationship with their old suppliers will have no bearing with the new product line. They will also need a new supplier for two component parts.
Starting from scratch Company G does not have any brand recognition. When a consumer is in the market for a small appliance, they will not even know to consider company G’s products.
This is an opportunity for company G to start a new relationship with suppliers. They may find more efficiency in raw and component part suppliers.
If company G does well with small appliances, they have the opportunity to pursue a higher-priced line of small appliances. This will allow company G to target a completely different market.
If company G does well with small appliances, they have the opportunity to pursue a low-priced line of small appliances. This will allow company G to target a completely different market.
Company XG brand and logo are readily recognized by most categories of electronics product consumer. This could limit the sales for Company G with similar products.
Company Z small appliance line is very modern and visually appealing. When competing in the appearance category, Company G will have some competition.
Company Y is a threat in the dependability field. They have a high reputation for their small appliances being the most dependable. This will potentially take some of Company G’s sales.
Company G has put together a strong marketing strategy. There are three strategies for product, price, place, and promotion of the new small appliance line. The strategies are designed to focus on the target market. Implementing product, price, place and promotion strategies will maximize the capabilities of launching the small appliance line.
- Build the new factory on existing land with a lock up storage area.
- Ensure all material is on auto-order beginning immediately.
- Test market to ensure maximum notoriety of product.
- Set the price for each item in small appliance line based on market competitiveness.
- Negotiate price and profit for retailers.
- Secure advertising in all media within the budgeted allotted.
- Encourage feedback from retailers about shelf-life of products.
- Implement a customer feedback section on the website.
- Location assessment to ensure that target market has access to the product.
- Spend time weekly sourcing new product.
- Provide exceptional, on-time, error free service to customers and retailers.
- Mail discount coupons and brochures for consumers to enhance potential sales.
Tactics and Action Plan
Company G has a very structured action and tactical plan for implementing our new line of small appliances. The credit is great and the debt-to-equity ratio is in good standing, providing adequate funding to start the new small appliance line. Company G has implemented a action plan for the product, price, place, and promotion. The responsible party also has the outlined due dates and plan to follow. Company G has put together the following tactics and action plan:
Product Action Plan
|Tactic||Due Date||Responsible Party|
|Hire contractor for construction||2/21/2011||Facility Manager|
|Sign contract with new material suppliers||3/1/2011||Company G chief engineer|
|Test market new product||3/1/2011||Company G Chief designer|
Price Action Plan
|Tactic||Due Date||Responsible Party|
|Secure funding for new line||2/10/2011||Company G Finance Manager|
|Contract price negotiations with retailers||4/1/2011||Company G Sales Manager|
|Sign contract with Advertising Agency||4/1/2011||Company G Marketing Manager|
Place Action Plan
|Tactic||Due Date||Responsible Party|
|New online Merchant||4/1/2011||Company IS Department|
|Retailer feedback on merchandise||8/1/2011||Company G Marketing Department|
|Location analysis||6/1/2011||Company G Marketing Department|
Promotion Action Plan
|Tactic||Due Date||Responsible Party|
|New Technology Analysis||2/1/2011||Company G Engineer Manager|
|Customer Service Department||6/1/2011||Company G Customer Service|
|Mailers/ Coupons||7/1/2011||Company G’s Marketing Department|
Company G will monitor the marketing plan process and make provisions accordingly. Select events will be monitored daily, weekly, monthly and quarterly. Managers of the production, sales, customer service and marketing department will be responsible for monitoring and reporting results. They are also responsible for recommending change when necessary revisions are noticed.
|Monitoring Activity||Due Date/Frequency||Responsible Party|
|Production status||Daily||Production Manager|
|Price competitiveness||Monthly||Sales Manager|
|Customer satisfaction||Weekly||Customer Service Manager|
|Promotion effectiveness||Quarterly||Marketing Manager|
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