Final Marketing Plan
Internal Strengths and Weaknesses: Management, Offerings, Marketing, Personnel, Finance, Manufacturing, and Research and Development (R & D)
b. Industry Analysis
c. Competitor Analysis
d. Customer Analysis
5. Market-Product Focus 8.0
a. Marketing and Product Objectives
b. Target Markets
c. Points of Difference
d. Positioning
6. Marketing Program 10.0
a. Product Strategy
b. Price Strategy
(i) Breakeven Analysis
c. Promotion Strategy
d. Place (Distribution) Strategy
7. Financial Data and Projections 11.0
a. Past Sales Revenues
b. Five-Year Projections
8. Organizational Structure 11.0
9. Implementation 12.0
10. Evaluation and Control 12.0
References 13.0
Executive Summary
This paper highlights the marketing plan for orthopaedic shoes. OrthoShoes Company seeks to manufacture this type of shoes to meet the needs of a special market segment. The company is aware of the existing competition in the market but hopes to rely on its unique product to gain competitive advantage. Based on its vision of leading the world in the manufacture of orthopaedic shoes, OrthShoes hopes to control a sizeable market share by employing appropriate marketing strategies.
Key Words: competitive advantage, orthopaedic shoes, marketing strategy
Company Description
OrthoShoes would manufacture orthopedic shoes which would cater to the distinct needs of clients diagnosed with foot illnesses. The impetus that drove conceptualization for the business came from experience with family members, relatives, and friends who have encountered challenges in locating comfortable shoes, especially for those with foot ailments (due to illness, accidents, or physical deformities). In addition, due to the number of illnesses that affect people’s feet, like diabetes, sprains, infections, and the like, it is relevant to take into account that manufacturing shoes that cater to the specific needs of these segment are appropriately addressed (Illinois Podiatric Medical Association, 2014; World Health Organization, 2015). Thus, the business aims to produce orthopedic shoes made from very soft and comfortable materials that would fit people with foot ailments in the most specialized manner. Aside from standard designs made from soft but durable materials, people with foot deformities could seek services from footwear professionals or podiatrists, through our online website, and have specifically designed shoes tailor made to address their distinct needs.
Strategic Focus and Plan
The strategic focus and plan section focuses on three (2) distinct aspects: (1) the Mission/vision statements of OrthoShoes; (2) the company’s goals; and (3) core competency and Sustainable advantage.
a. Mission/Vision Statements
The mission of the organization is to manufacture orthopedic shoes that would surely
cater to the distinct and specialized needs of people diagnosed with foot problems through the use of state-of-the art technology and innovative materials (locally sourced or that which could be supplied within the financial resources of the customer).
b. Goals
OrthoShoes plans to sell 3,000 pairs of shoes within the next six months after targeted launching date on March 2016. From the marketing goal, it is clearly discerned that the goal is specific and measurable (sell 3,000 pairs), actionable (within the next six months after launching date), realistic (since the number of pairs that are projected to be produced are well within the financial resources of the firm), and time bound (after March 2016 which is the launching date, six months from then would be on September 2016).
c. Core Competency and Sustainable Competitive Advantage
The shoes manufactured by OrthoShoes would address currently diagnosed foot ailments and cater to the distinctive needs of the clientele. In addition, the shoes that would be produced would be competitively priced; meaning, depending on the materials that would be recommended to be used by podiatrists, the shoes could be manufactured and tailored to the financial resources of the customer.
4. Situation Analysis
a. SWOT Analysis
Highlights of the strengths, weaknesses, opportunities and threats that impact OrthoShoes are shown in Figure 1.
Figure 1. SWOT Analysis for OrthoShoes
b. Industry Analysis
The orthopedic shoe industry is a specialized sector in the entire shoe industry. According to an industry report,
“companies in this industry primarily sell casual, dress, and athletic shoes, including orthopedic shoes, from physical retail locations New styles and personal income drive demand. The profitability of individual companies depends on effective merchandising and competitive pricing. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by stocking specialty products, providing superior customer service, or serving a local market. The US industry is concentrated: the top 50 companies account for about 70% of industry revenue” (Hoovers, Inc., 2016, p. 1).
c. Competitor Analysis
An overview of OrthoShoes’ competitors presented the following information, to wit: “major US companies include Caleres (formerly Brown Shoe Company and owner of Famous Footwear and Naturalizer), DSW, Foot Locker, Genesco, and Payless ShoeSource. Some shoe manufacturers, such as Nike, also have retail operations. Major non-US companies include ALDO (Canada), The Deichmann Group (Germany), and Vivarte (France)” (Hoovers, Inc., 2016, p. 1).
d. Customer Analysis
The customers are diverse since the distinguishing factor that characterize them is that they are looking for a pair of shoes that are very comfortable and that the shoes manufactured by OrthoShoes would address the currently diagnosed foot ailment. As such, these clients could request for high quality products based on excellent materials, regardless of prices, as long as comfort would be optimized. Concurrently, OrthoShoes could still provide custom-made shoes to financially challenged clients by using low-cost materials without necessarily sacrificing quality. In addition, these customers could be recognized through the knowledge that custom-made shoes would definitely address the foot ailment they were diagnosed with, in the first place. As such, OrthoShoes would ensure tie-up with podiatrists to provide professional advice regarding the footwear that the client should use to address specifically diagnosed foot ailment.
Market-Product Focus
This section describes the market and product objectives for OrthoShoes Company. It explores the company’s target market and product positioning among other critical elements in the marketing of the product.
Marketing and Product Objectives
The company will take advantage of its brand potential to ensure that it meets the demand of a large customer base. The company will pursue the following objectives:
Expanding its distribution network so that the products can reach a wider audience. Customers in the current market place like convenience. In this regard, the company will avail the product within the reach of customers.
OrthoShoes will provide additional services such as repair of shoes and sell suede used in the cleaning of shoes. This would ensure that customers get complete package of the company’s products and related products.
The company will increase add new products in its shelf to improve the brand image. Differentiation of new products will give customers a large degree of choice.
Target market
The company will rely on people who suffer from orthopaedics. These people represent a sizeable share of the market segment. Households with such people will form the primary target for the company. Most of these households have individual income of close to $40000 (Hollensen, 2015). The company seeks to tap this potential so that it can realize profits while improving the conditions of people.
Points of Difference
OrthoShoes is much aware of the existing competition in the market. In order to ward off this competition, the company will rely on the uniqueness of its products to create difference from its rivals. Quality will be cherished value and customers would find the company packaging system appealing. In addition to this, the company will rely of trained personnel to offer reach customer relations. Skilled personnel will improve the company’s CRM portfolio.
Positioning
Orthopaedic shoes will be positioned as a high-quality shoes that meet the needs of people with orthopaedics. The company will fulfil quality demands and responds to issues that would emerge regarding quality.
Marketing Program
Product Strategy
The product will be packaged well using a coloured packaging material that underscores the company’s commitment to quality issues. The packaging material shall have the company’s logo and contact address to increase the company image in the public domain. The company will release one brand after which additional brands will released subsequently.
Price Strategy
Pricing significantly affect consumer behaviour. In this regard, the company will explore the pricing regimens of its competitors and determine a pricing regimen that would guarantee profits without compromising on quality. A pair of shoes will sell at $65. This figure is slightly higher than most prices because of the high quality of product.
Break-even Analysis
This is the point at which the company hopes to realize the money used in starting up this business. Given the rate of growth and the pricing strategy. The company will break-even after four years of operation. This is because a lot of money was used in putting the cats together. The capital include starting and operational capital.
Promotion strategy
The company will rely on social media, print and visual media to promote the product. Social media sites such as Facebook and Twitter are instrumental in creating awareness to the market about the existence of a product (van Netten et al., 2012). Since a few above 65 years use social media, visual and print media such as televisions and newspapers will be used to communicate to this market segment about the new product.
Place (Distribution strategy)
The company will rely on its online platform to sell the product to online customers. In addition to online retailing, the company shall have distribution outlets in various parts of the country to ensure that consumers find the products in physical stores. The company shall employ a hybrid business model in which online platforms shall be integrated with physical stores to offer customers diversity.
Financial Data and Projections
Past Sales revenues
The company has registered significant increase in sales since its inception. The increase in revenues is attributed to active promotional campaign and use of social media to raise awareness on the availability of the product in the market. In the last financial year, the company recorded net sales amounting to $65000.
Five year projections
In the next five years, the company hopes to realize a compounded sales increase of 37%. The expected growth is tied a good start. The company will upgrade its marketing function which will head all marketing functions of the organization.
Organization Structure
OrthoShoes will be headed by a board of directors. The board will appoint the chief executive officer that will oversee all operations of the company on behalf of the board. Under the CEO, there will be various managers heading operations, finance, and sales departments. The organization shall have a marketing manager. The marketing and sales manager shall have part-time employees working on commission basis. These employees will be required to sell the company’s products and improve brand image through positive marketing. The company will add more employees from time to time depending on need.
The initials above stand for chief executive officer (CEO), deputy chief executive officer (DCEO), marketing manager (M.M), operations manager (O.M), finance manager (FM) and sales manager (SM).
Implementation
OrthoShoes will rely on a suitable implementation plan during the implementation process. This plan shall involve a schedule that will spell out how the company should penetrate distant markets. The company shall outsource information technology personnel to run its online platforms for two years. This personnel shall train local personnel on how to use appropriate search engines to increase the company’s visibility for the online market.
Evaluation and control
Evaluation of this plan will depend on the performance of the company in its first month of implementation of the plan. An increase in sales volumes will suggest that the marketing plan used in a business idea is effective (Cravens & Piercy, 2006). On the other hand, a decrease in sales in the first month would suggest an ineffective marketing plan. The company will also carry out interviews to determine consumer perception regarding the product it offers.
References
Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Hoovers, Inc. (2016). Shoe Stores Report Summary. Retrieved from hoovers.com:
http://www.hoovers.com/industry-facts.shoe-stores.1520.html
Illinois Podiatric Medical Association. (2014). Resources for Patients: Podiatry Facts and
Statistics. Retrieved from ipma.net: http://www.ipma.net/?page=15
van Netten, J. J., Dijkstra, P. U., Geertzen, J. H., & Postema, K. (2012). What influences a
patient’s decision to use custom-made orthopaedic shoes?. BMC musculoskeletal disorders, 13(1), 1.
World Health Organization. (2015, January). Diabetes. Retrieved from who.int:
http://www.who.int/mediacentre/factsheets/fs312/en/
