Business Marketing Plan Essay
Target Market Beginner and gourmet cooks who appreciate the benefits of using fresh garlic in cooking and recipes - Business Marketing Plan Essay introduction. Product Objective To launch a new improved version of the standard garlic press that will achieve 5% of the market share in the first three years. Price Objective To price our product to maximize sales and show an aggressive upward profit trend within the first year. Place Objective To effectively market and distribute our product by mail order, retail, wholesale and Internet channels over the first three years.
Promotion Objective To effectively introduce our new product to consumers thereby enhancing sales and creating profit by the end of the third quarter of year one. Competitive Situation Analysis Consumer Product Classification Using the three way classification category system where services are classified based on convenience, shopping and specialty products, Company G falls into the shopping category. Company G’s primary product is the Electric Garlic Press and is best marketed through retail and personal sales representatives of the company.
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Since it is new to the market, consumers are more likely to want to do some research or at least have the opportunity to try and see the product demonstrated prior to purchase. Ideally booths in retail establishments or home parties would be our initial stab at demonstrating this wonderful new and innovative product. While we anticipate seeing peaks near the holidays – this product also makes an excellent gift – demand and supply should remain relatively even throughout the year.
Analysis of Competition using Porter’s 5 Forces Model Competitive Rivalry Competition from other firms offering like products could affect sales and profit ·High fixed cost – Company G will shop various suppliers to minimize production cost ·High exit barriers could offer a threat for Company G ·Low switching costs to customers could be a problem however, not anticipated as our product is unique and not likely to be switched for a substitute product ·High storage costs will be offset by effectively marketing to customers through various channels of distribution. Also, our product has a long shelf life and is not conducive to temperature changes.
Threat from New Entrants ·Patents and proprietary knowledge will create barriers for new companies entering the market. Company G will include as a part of our patent, personal knowledge and private know how. ·Government may create barriers ·Access to distribution channels is a large threat for Company G as new companies enter the market. While distribution using the Internet is one of our strongest anticipated channels, it could be one of our greatest sources of competition from new entrants to the market.
Threat from Buyers ·Company G anticipates its buyers to be fragmented with no buyer having any particular influence on the product or price. Threat from Suppliers ·Higher cost of raw materials such as plastic and electric parts for our product could drive up cost of manufacturing. However, since suppliers of most of our raw materials is standardized, we do not anticipate an increased cost to our consumers ·Shipping supplies for mail order and internet sales could cause an increase in prices.
However, there are many suppliers of such goods and Company G plans to effectively shop suppliers and use the ones with the most competitive prices. Threat from Substitutes Company G’s product, the Electric Garlic Press currently has no threat of direct substitutes. Prior to our product consumers either used a manual press which left most of the bulb inside the apparatus; or, the manual mortar and pestle device. Our innovative new product will separate the bulb from its outer sleeve and deliver a grated or finely chopped end product. Or, turn the dial and add a bit of salt for a tasty paste.
The only threat from substitutes at this time is from some food processors currently on the market. However, Company G will surpass these products by offering a specialized “garlic” machine rather than one that does a lot of different things with a variety of foods. Here again, the Internet will serve as an excellent marketing tool for anyone looking for a specialized product at a reasonable price. SWOT Analysis To compare internal organizational strengths and weaknesses within external opportunities and threats, Company G executives created the following SWOT analysis.
STRENGTHS *indicates core competency·Quality processes and procedures·Innovative upgrade to a much used kitchen utensil·Located in Memphis, TN home of Federal Express|WEAKNESSES·Lack of marketing expertise· New company – lack of recognition· Lack of trained, tenured staff| OPPORTUNITIES· Creating innovative marketing strategies to attract customers · Expanding into new market segments outside the United States· Joint ventures, mergers or strategic alliances|
THREATS· New competition causing prices to drop and thereby affecting profits· Competitors creating a newer, improved version· Government taxation increasing prices and driving down profit| Strengths Quality processes and procedures – this strength comes from careful planning and concentration by upper management of Company G to put together a solid set of procedures for staff and contractors. This core competency is necessary if our company is to remain grounded and move forward in a collective, productive and profitable manner. ·Innovative upgrade to a much used kitchen utensil – studies have shown that consumers enjoy cooking and using fresh garlic in recipes and potions. And, the most repeated complaint is that the hand held presses leave too much of the usable bulb to waste! Our product gives a new option to consumers by eliminating waste in a few easy steps without using a manual mortar and trestle.
This too is a core competency of our company. Memphis, TN, the headquarters of Federal Express, is the distribution center of the US. This is vital when it comes to storage and distribution of our product. Weaknesses ·Lack of marketing expertise – A new marketing team is being formed to effectively market our EGP and because the members have not worked together on a project before, it puts us at a disadvantage. ·Although Company G is a well established firm in the electronics market, it is virtually unknown among small appliance manufacturers. Therefore, one of our weaknesses is the fact that we are new to the small appliance market. ·Lack of trained, tenured staff – Starting a new division puts us at a disadvantage when it comes to having a tenured, highly trained staff.
Although we have selected highly skilled individuals capable of performing well, it will take some time to get acquainted to and adjusted with their co-workers. We do anticipate this transition to be brief and the results to be highly successful. Opportunities ·Creating innovative marketing strategies to attract customers – Here we will depend on our marketing department of experts to create ads that attract a variety of consumers. Using visual and ads on TV and the Internet during targeted times of each day as well as magazine and newspaper ads are all in the plans. ·People the world over loves to cook and eat good dishes. Why not capitalize on that concept by offering this product to consumers outside of the United States?
Expanding our market by venturing with establishments such as Martha Stewart or Williams Sonoma to exclusively carry our product is also a viable opportunity for Company G. Threats ·The threat of new competition entering the market with “like” products can be a threat because it could cause prices to decrease thereby affecting profit margins. Company G must continually strive to seek ways of improving its product or making it more superior to others entering the market. ·Competitors may also come in with a newer, improved version of our product. This too can cause prices to plummet. Here again Company G must combat this problem by continuously polling consumers to keep abreast of changes or improvements to keep our product number one.
We will strive to capture the loyalty of our customers by delivering a top-rate product with each order; always delivery on time and in perfect condition; competitive prices and money back guarantee. ·Unfortunately one threat is beyond our control and that is increased taxation by government. However, our company has an entire department devoted to following legal and governmental updates and changes regarding taxation and distribution limitations. Therefore, we can better prepare for such changes and come up with constructive ways of combating higher prices to consumers. Marketing Strategies Company G’s launch of our new Electric Garlic Press will open up opportunities for continued growth and development.
Our marketing strategies have been carefully examined and are outlined below. Product Strategies oCreate bold and exciting packaging that peaks consumer interest. oIntroduce built in product warranties and guarantees that will build consumer confidence. oOffer 24-hour customer service to consumers to support our product by answering questions and consumer concerns as well as fulfilling new orders. Price Strategies oUtilize the Penetration Pricing Strategy by launching our product at an introductory price to gain consumer confidence. oUtilize the FOB policy when shipping to first time buyers and to consumers outside the USA. oOffer discounts or rebates to consumers who refer new customers to Company G.
This offer would be extended to the general public as well as store owners and businesses that carry our product. Place Strategies oSecure inexpensive, secure warehouse space at a local facility designed to house and distribute our product to wholesalers. oEffectively market our product by engaging relationships with marketing intermediaries such as retailers and wholesalers. oCreate a direct sell opportunity for representatives to showcase our product in personal shopping venues such as homes, offices, etc. , selling directly to the consumer Promotion Strategies oTarget all cooking channels placing TV ads during such programs promoting our product. oAdvertising in magazines and newspapers offering coupons and discount clips.
Personal advertisements in shopping malls and grocery stores with discount coupons and rebate offers. Tactics and Action Plan To effectively implement the above marketing strategies, Company G has designed the following Tactics and Action Plan. Product Action Plan Tactic|Due Date|Responsible Party| Benchmark our packaging against nearest competitor for effectiveness|End of 1st quarter – year one|Marketing Manager| Create aggressive, assertive verbiage for product warranties and guarantees|End of 1st quarter – year one|Legal Department| Recruit and train customer service representative to assist customers and prospective customers|Immediately|Customer Service Manager| Price Action Plan Tactic|Due Date|Responsible Party|
Gather research and launch an introductory price that is appealing to customers |End of 2nd quarter – year one|Production Manager| Effectively market to first time mail order customers and overseas customers our no shipping fees promotion|End of 2nd quarter – year one|Production Manager| Target those areas where sales are lowest and offer rebates as an incentive to try our product|End of 1st year|Production Manager| Place Action Plan Tactic|Due Date|Responsible Party| Utilize local realtors in our search for housing and distribution of our product|End of 1st quarter of year one|General Manager| Target large retail establishments such as Sears and Target to form a business alliance for distribution|End of 3rd quarter of year one|General Manager and Legal Department| Devise an effective opportunity for entrepreneurs to distribute our product through personal, in-home parties and shows|1st quarter of year two|Marketing and General Manager| Promotion Action Plan Tactic|Due Date|Responsible Party|
Purchase “spots” on the cooking channels to spotlight our product|End of 2nd quarter of year two|Marketing and Production Manager| Create attractive, effective ads to run in high distribution magazines such as Better Homes & Gardens, etc. |End of 2nd quarter of year one|Marketing Manager| Set up booths and hire demonstrators to market and sell our product in shopping malls during the holidays|Around the 3rd & 4th quarters each year|Marketing, Customer Service, Production Managers| Monitoring Procedures Company G will effectively monitor its strategies and tactics to determine the effectiveness of each and to make any changes or adjustments deemed necessary. We plan to do this as outlined below. Monitoring Activity|Due Date/Frequency|Responsible Party|
Our Marketing Manager will monitor the effectiveness of product packaging, attractiveness of presentation and durability of mailing packaging. |End of first quarter of year one/quarterly|Marketing Manager| Our PM will monitor the sales activities of our products to determine effectiveness of product packaging and marketing. |Month two of first year/monthly|Production Manager| Our GM, working closely with the PM will effectively shop and compare prices and profitability of facilities to safely store and distribute our product. |End of first year/annually|General Manager| Company G will continue to monitor its marketing strategies and approaches to ensure profitability|End of first quarter of year one/quarterly|Marketing Manager|