Company G Marketing Plan

Company G Marketing Plan
Product support of the mission statement
Company G’s mission statement expresses with precision the
contribution the company endeavors to make in its customers lives. The
lives of the middle and high income earners are characterized by
overloaded schedules that leave no ample time to do most of the ordinary
tasks manually. This has led to a high level of automation of tasks both
at the workplace and home. Beyond the huge tasks such as laundry,
dishwashing and vacuuming, there has been a need to further automate
even smaller tasks. This explains the emergence of a high demand for
small appliances for both cooking and non-cooking tasks (Pan et al,
2012).
Company G meets this societal need by manufacturing such small
appliances. In their line of production, products such as coffee makers,
microwaves and electric grills feature. Recently, the company’s
designers and engineers came up with an electric rice cooker as an
addition to the small appliances production line. This appliance
promises to go a long way in boosting the company’s sales. An electric
rice cooker is congruent with the company’s mission. It contributes to
the convenience of individuals who prefer homemade meals but have very
limited time to prepare them. It fits more to high end products but to
attract sales volume the pricing targets the middle income population.
Classification of Company G’s products using the three-way
classification system
The products manufactured by Company G perfectly fall under one of the
categories outlined by the three-way product classification system. This
category is shopping goods. These are goods that customers do not buy
routinely (Kurtz, 2012). This long term perspective associated with
shopping goods necessitates some research on the features and price
prior to the purchase.
Description of the target market
The middle income earner strives to cut costs in all ways available.
Time is an expensive asset to these individuals. Rice is a common dish
all over the globe hence there are no regional obstacles to the sales of
the appliance. The target market for the new small appliance is the
middle income population.
Analysis of the competitive environment using Porter’s Five Force
model
This model determines the attractiveness of the market for exploitation.
The combination of the five forces, which includes both internal and
external forces, should balance the competition to allow the players in
the market to earn high profits from their products. The forces are as
follows (Roy, 2009):
Threat of new entrants
A market that is generating high returns attracts new firms in the
market. The increase in players means the market share per firm
decreases, and so do the profits. At the extreme, if there are no
regulations to bar new entrants, the market ends up in perfect
competition. Company G has established its brand in the electronics
market. This brand equity mitigates the threat posed by other firms that
will flood the market with new designs for rice cookers.
Threat of substitute products
The rice cooker has a number of appliances that could be threat
substitutes. Such include toasters, deep fryers, microwaves and even
fast food restaurants. The upcoming trend where supermarkets have a
café where customers can buy a variety of ready food at relatively
affordable prices is another threat.
Customer’s bargaining power
The extent to which the firm can vary a product’s prices without
losing their customers is the buyer price sensitivity for that product.
Given that the target market for this new product is the middle income
earners, Company G has a limited range within which to adjust prices.
Above that range would mean that the target market needs to be adjusted
and strategies revised.
Suppliers bargaining power
These are forces exerted by suppliers over the firm such as labor and
raw material prices. Though Company G enjoys good relationships with
current suppliers, the new appliance requires new raw material
suppliers.
Competitive rivalry
This is the extent to which a firm beats the competition already
existing in the market and sustain its market share and profitability.
This is only possible through developing and sustaining competitive
advantage.
SWOT Analysis of Company G
Strengths
Company G boasts of an innovative team of engineers and designers. The
design and engineering team have innovatively created an appliance that
is appealing, and its uniqueness is a key factor towards competitive
advantage.
Excellent relationships with current suppliers. Suppliers and
distribution channels have a high influence on the profitability of a
company. Loyal suppliers will not extort the company in their course of
business.
Low debt to equity ratio and a high credit rating. This two factors
determine the company’s future. No firm or consumer wants to do
business with a company that threatens to collapse in the near future.
These three strengths are key to Company G because they cut across
external and internal factors. They mitigate the primary threats to the
short term profitability of the company as well as its future.
Innovative staff team and excellent supplier relationships should be
capitalized on and nurtured as core competencies. Majority of
manufacturing firms are financially afloat. Therefore, debt-equity ratio
cannot be a good ground for competition.
Weaknesses
Inter-product competition
The company already has appliances that could act as substitutes to a
rice cooker. With the same customers targeted, they will only shift from
one product to another from the same manufacturer.
Using the conventional way of dealing with suppliers
In a bid to achieve sustainable competitive advantage, Company G should
devise new ways of managing their supplier relationship that
differentiates them from other firms.
The product is articulately designed with artistic elegance. It fits
well to high end products but to attract sales volume the pricing
targets the middle income population. The new appliance has potential to
make high profits counting on its elegance. However, the target market
identified puts a ceiling to the pricing.
Opportunities
Increased purchasing of small appliances across the globe
The increase in usage of small appliances assures the company of sales
now and in the long run.
Retention of a majority of raw material suppliers
The existing suppliers will not have any new term therefore the cost and
time of establishing new relationships is saved.
Brand equity
The brand establishment secures the company’s sales for the new
product because their customer acceptance is guaranteed.
Threats
New terms imposed by new suppliers
The new suppliers required for some parts of the new appliance may not
accept to operate under the terms governing prior supplier
relationships. This may have implications in pricing and production
process efficiency.
Threat of product fabrication by competitors
Product fabrication has been a nuisance to many manufacturers and has
had tangible adverse effects on profits.
Poaching of the production team by rival firms
Some rival firms move a notch higher. Instead of fabricating the product
and risking legal consequences, they opt to poach the minds behind the
innovation thereby amputating the company’s chances for future
innovation.
Marketing objectives
Company G’s marketing objectives fall under four categories:
Steering objectives
The pillars of these objective include market spread, market leadership
and customer service. Under market spread, Company G intends to explore
and penetrate to new markets in other countries. They also want to
expand the size of the customer group in the existing market.
To be a market leader in the small appliance market, the company intends
to capitalize on their innovative technical team and support them by
adopting the relevant modern technology. The customer service objective
will be powered by manufacturing ensuring the new product is of
impeccable quality and reliable so as to build the customer’s
confidence in their brand.
Performance objectives
Performance objectives are related to profitability and growth. The new
product is expected to generate stable sales revenues and have a good
profit margin. Profitability will be monitored by checking the returns
on shareholders investments and the profits margin compared to the sales
revenue.
Internal objectives
Internal objectives are those that have to with personnel and efficiency
of the production process. Company G intends to be keen on personal
development of employees and rewarding good performance so as to
increase work morale and reduce turnover. To ensure efficiency,
departmental costs on sales, stock turnover and sales on total assets
will be kept on check
External objectives
This is how the company relates with the society around it that are not
necessarily their customers. Their corporate social responsibility will
be geared towards enhancing Company G’s corporate image, utilizing the
resources available and contributing towards the welfare of the
community.
Marketing strategies
Identify the target market
Though the target market is defined on paper, this stage moves further
to identify the salary scales per region and the physical distribution
of the target customers.
Build the market for the new product.
From the results of the implementation of the first strategy, the
company’s marketing team will price the product and channel
distributions accordingly.
Conduct market research to facilitate expansion to new markets.
This is an effort to increase market share. Price differentiation can be
applied in potential areas such as high end customers regions.
Tactics and action plan
Baseline survey
The objective is to know the customers receptivity of the new product
and their opinion on its quality, functionality and pricing. This can be
done by attaching a feedback form on every product purchased as well as
having a feedback link on the company’s website. This survey should
begin prior to the product launch, and continue until the first one year
of the product’s existence is over.
Promotion campaigns
To launch a new product successfully, its first entrance in the market
must be felt. The marketing team should conduct a product launch with
media coverage inviting customers for demos and testing. This is to be
done within the first month of the product release. After the launch,
promotion campaigns with discounts will run for the next three months.
Constitute a market research team
The sales report for the first three months can show the receptivity of
the product. It will also determine whether efforts need to be mobilized
in the existing market or focus on developing new markets. The research
team will be constituted after the product launch, monitor the results
of the promotion campaigns and venture into new market research after
three months.
Monitoring procedures
Monitoring and control will take place both at the strategic level and
the operational level. Initially during planning, the expected standards
of performance will be outlined. At the monitoring stage, the actual
performance will be evaluated against the expected performance. Action
will be taken depending on the deviation between the two. If the
deviation is alarming, corrective action may need to be taken urgently
to mitigate further losses.
The items to be monitored include:
Adherence to the annual plan and the strategic plan.
This will be done by the top management, middle management and the
marketing auditor to determine whether set standards are being achieved.
The activities to establish this include financial analysis, market
share analysis and sales-expenses ratio.
Profitability
This is the responsibility of the marketing manager. He/she ought to
determine whether the company is making or losing money from the new
product. This can be determined by examining the profitability of the
product, size of distribution channels and the size of the customer
group.
Efficiency
The responsibility lies on both the staff management and the marketing
manager. They should justify the marketing expenditures and improve on
the spending efficiency as the new product stabilizes. Analysis of the
efficiency of the sales force and the promotion campaigns will be
important tools of analysis for this control.
Operational monitoring will be carried out through weekly reports
submission by the sales teams and evaluation of the combined sales
reports on a monthly basis. At the strategic level, the top management
will conduct a comprehensive sales analysis after every three months to
monitor the achievement of the company’s strategic goals through the
new product.
References
Pan, A., Beijing Zeefer Consulting., & Cloud New Zealand Limited.
(2012). China market report. Auckland, N.Z: Cloud New Zealand.
Kurtz, D. L. (2012). Boone & Kurtz contemporary marketing / David L.
Kurtz. Mason, OH: South-Western Cengage Learning.
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COMPANY G MARKETING PLAN PAGE * MERGEFORMAT 12
COMPANY G MARKETING PLAN

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