Business Proposal
Business Proposal
A1.
In the choice of retail, the company has identified that there exists a vast opportunity in capturing new customers if new products that they prefer are brought into the market. Although the market has a competitive way of obtaining customers, the retail company has designed a marketing strategy to employ in ensuring that the new products sell profitably. Currently, the number of retailers has grown significantly and, hence, the competitive nature of the market. It, therefore, calls for a strategic way of marketing that gives the new products a competitive advantage. In addition, the introduction of new goods and services in the market can boost the profit margins of the company.
The two new products that have been identified to fit the market are, advanced security gadgets and house cleaning services that can change the state of the community. In this case, the security devices, therefore, take an action of reducing the rate of increased crime through provision of a high level of surveillance and protection. Through the introduction of an alarm response that can detect illegal activities, the ability to reduce the standard of crime emerges (Chaudhury, Mallick & Rao, 2001). Secondly, house cleaning by the use of disinfectants makes it easier to reduce contaminations in the chambers. Therefore, the newly formed service delivery makes the company achieve major customers who have the need to maintain a clean environment.
Through interview of individuals in the community, the company was able to identify that the there exists a need to reduce the rate of crime by introducing security gadgets that have the capability of identifying the individuals involved in the crimes. This is seen to be in a position work either directly or indirectly, by discouraging the potential perpetrators, or capturing them so they can easily be identified in case a follow-up is made. Secondly, the rate of infections that relate to the filthiness of the community has contributed primarily to diseases that lead to violent deaths, and it needed a remedy. Therefore, first-hand cleaning helps in reduction of the problem. Through records of inquiries made in need of the service and products, the retail company was able to identify that a real market exists in the area for the products and services (Leiss, Kline & Jhally, 2005).
A1b.
Barriers that prevent individuals to venture into the business makes it have a competitive advantage. Since the enterprise requires a high capital investment that most people in the area lack, the possibility of engaging in the business reduces. Therefore, the high costs give it an upper hand in a competition that creates a form of monopoly in the region (Ewen, 2008). Government regulations also create barriers that make it hard to venture into the business.
A1c.
The inherent risks associated with the company include lack of enough customers at the start due to lack of awareness. Secondly, there exists a challenge of lack of expertise in offering cleaning services. To overcome the problem of customer awareness, extensive marketing will be designed to ensure that the region knows the importance of the products and services (Leiss et al., 2005). A training aimed at increasing the expertise in cleaning also can apply in reducing the risk of inadequate services. Therefore, the company has formed strategies that will help in developing customer knowledge on the products and ensure that first-hand service delivery is realized.
A2.
The use of strategic customer relationship management (CRM) as a tracking software in the business assists in tracking the inquiries and sales about the products. The software will be applied in checking the movements of the products and the engagement of the employees, which serve as the ultimate recipe for customer satisfaction. The company has the sole goal of applying the customer relationship management software in tracking all activities in this realm. This would entail evaluation of the various ways the employees serve the customers, while ensuring that it engages the customers at all times. In this context, the system is designed in such a manner that it keeps the company aloof the rest of its competitors. Moreover, the system takes into consideration the behaviors of the various employees regarding the set down precedence towards satisfying the customer needs. In essence, the software should be able to come up with a comprehensive report on the perception of the customers regarding the services they get from the employees, which is gathered from relevant data. This should help modify the system accordingly.
A2a.
The information gathered improves the performance of the company by identifying the critical areas that need improvement. It enables the company to identify the preferable of the customers by improving the actual quality. Through intensive advertisement and persuasion of customers on the importance of the products, the concerns raised by the people in the community helps in changing the approach to the business.
A3.
Through a direct distribution system, the products reach the customers without the involvement of intermediaries. It involves direct approach of the targeted customers and making sales to them. The channel often occurs in the delivery of the cleaning services that the company aims at the offering. Since the business will open branches in different places in the region, it will have the opportunity of reaching the customers without the involvement of intermediaries (Chaudhury et al. 2001).
A3a.
Most importantly, the business considered entering the market due to the environmental forces in the region. Since there is a need for reducing the high level of insecurity, the retail sales of security gadgets will help in cutting down the level of crimes. Another natural force that has led to the creation of the business is the need to develop a clean environment (Wang, 2009). The healthy environment enables us to prevent the emergence and spread of infections such as cholera and other airborne diseases. Based on the factors like the need for security and a clean environment, the company has a tremendous opportunity in selling its products. The global market also does not have a stiff competition since few companies deal with the products and services. Therefore, it becomes easier for the business to maneuver into the global market.
A3b.
The global supply chain can hinder the performance of the product and services since the organization of the businesses in the area does not favor a continuous string. The effect on the products used in the retail business occurs since the products do not originate locally.
A4.
The dominant pricing strategy that the company aims at employing includes penetration-based pricing. The success of the plan is because the products are new in the region and the level of competition still does not influence the pricing (Nagurney, 2006).
A4a.
Launching the new products require massive capital since the products have never been sold in the area. Therefore, many costs would go into the promotional strategies used to create awareness of the existence of the new goods and services. The least amount that the company can project towards the start of the retail roughly amounts to $50000. It involves the purchase of the security gadgets and the tools to apply in the cleaning services. Consequently, the amount covers employment of staff and marketing activities.
A4b.
The consumers are likely to accept the product since it is new in the market, and they have some problems that the new products and services will solve. Due to the increased level of insecurity, the community faces hurdles in the development and hence the application of newly designed security gadgets will assist in minimizing the challenge. Cleanliness also forms the need for most of the people in the community as an aim of preventing infections resulting from contaminations such as cholera. Therefore, the likelihood of the consumers to accept the price set depends on the need of the products that has proved to be high (Aaker, 2008).
A4c.
Since there have never been similar products in the area, the company enjoys a significant non-competitive environment that can dictate the pricing (Ewen, 2008). The prices will change when competitors with similar products emerge that sets a new price on the market. Currently, the company has an advantage in setting its price since there exists a monopoly on the service delivery and product sales.
A5a.
The choice of the advertisement strategies is based on the behavioral characteristics of the community, which entails the demographics in terms of age, educational level, gender, and the social settings. The area of concern has some youths that regularly interact with the social media, therefore, making it possible to pass information through such platforms. The composition of the network also promotes the duty since there exists a dense population that readily communicates with each other in everyday activities, thereby spreading the same information to those in their social circles in the shortest time possible.
A5b.
The two promotional activities that aim at creating awareness on the availability of the retail products and services is through the organization of games and contests at specific intervals in the region. Games take a form of group tournaments where different groups of youths compete in various activities such as football games and volleyball games with an aim of promoting the products and services. The ball games allow people from the area to come together in a gathering that makes it easier for marketing the products. Game skits used to play the games would have a logo of the company, and the new products launched to create a view of the new goods and services (Aaker, 2008). Through the organization of contests in different institutions, the company would be able to instill knowledge on the importance of the newly launched products and services. Contests especially in the institutions of higher learning allow close competition of students and consequently bring closer different groups that allow the company to make a bigger contact.
B.
References
Aaker, D. A. (2008). Strategic market management. John Wiley & Sons.
Chaudhury, A., Mallick, D., & Rao, H. R. (2001). Web channels in e-commerce. Communications of the ACM, 44(1), 99-104.
Ewen, S. (2008). Captains of consciousness: Advertising and the social roots of the consumer culture. Basic Books.
Leiss, W., Kline, S., & Jhally, S. (2005). Social communication in advertising: persons, products & images of well-being. Psychology Press.
Michael, B. (2008). The Strategic Marketing Plan Audit.
Nagurney, A. (2006). Supply chain network economics: dynamics of prices, flows and profits. Edward Elgar Publishing.
Wang, E. (2009). The service sector in the Chinese economy: a geographic appraisal. Eurasian Geography and Economics, 50(3), 275-300.
