Executive Summary
A marketing plan is a written document, which shows the series of activities involved in achieving a firm’s objectives such as attracting customers, and persuading them to purchase the company’s products. The three-year marketing plan will enable the marketing plan to identify changes, needs and recommended strategies to approach customers. The difference attained by the marketing plan in the course of the three years will dictate its success or shortcomings. The firm will update the designed marketing plan to ensure that operations incorporate the emerging changes in the market. The plan can be independent or as part of a business plan, with the aim of informing the customers on the value of the company’s products or services. Decisions included in the three - year marketing plan will make the business achieve its objectives through increased sales, and expanded market share. Implementation of the marketing plan will enable the company’s engineers and designers acquire useful information on how to improve the product to suit customer needs
Product Description
Vacuum cleaner model R166 is one of the small appliances produced by the company. The company has designed the vacuum cleaner with specialty to ensure that it succeeds in the market setup. The strategy in the competitive market is to ensure a firm ‘gets it right the first time to win market share’. The product matches with the company’s mission; to provide efficient service to customers by availing high quality products. The effort – saving machine will be available in the market at affordable prices to attract new customers. The product has a unique value added characteristics such as low noise level, ease of operation, and cleaning effectiveness. The company’s engineers and designers have modeled the vacuum cleaner to contain most of dust and allergens during the cleaning period; this will make it efficient to the company’s clients.
The three ways of classifying consumer goods are convenience, specialty, and shopping. Understanding a product’s classification is essential to determine the factors to highlight for the potential clients. The company vacuum cleaner will fall into the shopping goods classification. Customers will have ample time to compare the product’s performance with other products in the market. The company aims to attain a market competitive advantage in the product. The unique features and availability of the vacuum cleaner will attract new customers.
Target Market
The company’s target market is the medium income earners, who are willing to invest into improved small appliances in their households and businesses. The company will favor the low - income earners by availing the product at affordable prices. The company will target the small and medium sized businesses. These businesses include minimarkets, grocery stores, and supermarkets. The company can make both retail and wholesale transactions to these stores and households.
Analysis of Competitive Environment
The company will face stiff competition from the already established companies such as Dyson, Eureka, Electrolux, and Phillips. The company will use the porter’s five strategies to penetrate and achieve a wide share in the market. The porter’s five forces include evaluation of the external environment, the suppliers’ bargaining power, customers’ bargaining power, the competition level, and the availability of substitutes. The company will merge the five forces in handling its competitive environment. The firm has a healthy relationship with the intermediaries such as distributors and suppliers; this is essential to promote effective interaction between the customers and the company. The firm will study the competitors’ strategies to equip the marketing team on the relevant skills in handling customers. The company can merge with similar firms to share the suppliers’ cost, which will help to reduce their dominance. Increased number of suppliers for the firm is beneficial due to a constant supply of raw materials, which facilitates continuity of business.
Company’s S.W.O.T analysis
Strengths
- Strong product branding
The company is well-established firm that is highly regarded in the electronics market. Customers enjoy using other products from the firm, which makes the company’s vacuum cleaner penetration in the market easier.
- Strong distribution chain
The company has a large number of suppliers for its products. There are plans to increase the number of suppliers in the future. The credit term the company offers to the distributors enhances their financial credibility, which facilitates effective business operations.
- Quicker product developments
The company has skilled labor force that focuses on innovation and creativity in its operations. The product engineers design the product to suit the consumer needs; this gives Company G a competitive advantage in the market.
The two strengths that should be considered as the firm’s core competencies are the quick product development and the strong distribution chains. These two strengths can help the firm to achieve its objectives in the market, as customers will access high quality products at the appropriate time.
Weaknesses
- Existence of brand substitutes
There are other similar products in the firm, which may make marketing of the product difficult to the low and medium income earners.
- Presence of opponents
Other huge firms have a substantial market share, which limits the expansion of the company’s vacuum cleaner market. The product may take a long time than expected to attain a similar market share.
- Uncertainty of the market
There is no guarantee that the product will perform well just because other electronics perform well. The product has consumed many of company’s resources, and the uncertainty of its success is a weakness to the firm.
Opportunities
- Market segmentation
The company can use the opportunity to divide its market share into segments. These subgroups will enable the firm learn the specific needs of the customers on the vacuum cleaner specifications.
- Technological advances
The company strategy to focus on innovation will enable the designers and engineers to produce vacuum cleaners that embrace the emerging modern technology. The company can use this strategy to venture into competitive markets with the promise of applying the modern technology in producing high quality products.
- Widening consumer base
The company will focus on expanding its market share to cater for customer needs. This will increase sales, which leads to a rise in the firm’s total revenue.
Threats
- Global competition
There are large existing companies that will offer competition to the firm, for instance, Dysons.
- Emergence of local products
Emergence of the company’s substitute poses a threat to the overall development f the product. Other firms may opt to offer a similar brand at a cheaper price, which may affect the company’s sales.
- Price wars with competitors
The firm intends to produce vacuum cleaners that a regular customer can afford without major budget constraints. This, however, may be a threat as competitors may reduce their prices below the company’s cost of production, which may lead to financial losses.
Marketing Objectives
Product
The company will focus on innovation and maintaining high quality in producing the vacuum cleaner.
Distribution
The firm will have several short distribution chains to minimize costs.
Price
Company G will offer low prices at the beginning to attract new customers, especially the low-income earners.
Promotion
The firm will market its products through its official website, magazines and media advertising.
Marketing Strategies
Product
The product’s marketing strategies will include offering a manual paper to customers for guidance, exercise product differentiation to show the efficiency of the vacuum cleaners to potential customers, and customize it to fit the customers’ satisfaction.
Distribution
The strategies in this channel include offering discounts to distributors, offering training to the intermediaries to create awareness for the product, and to link the wholesalers to retailers to promote efficient flow of products.
Price
Company G can focus on giving clients a price discount for a certain period, exercising price discrimination and ensuring the company’s price is the lowest prevailing in the market.
Promotion
The firm can offer gift vouchers to random buyers of the vacuum cleaner, conducting trade shows to portray the efficiency of the appliance, and advertising.
This mix will attain the company’s objectives as it covers all areas of product development. The mix ensures efficiency among producers, distributors, and customers, which is essential for product development.
Action Plan
Item 1: product
Item use
The company will design a guidance manual for the customers to ensure efficiency. The guidance manual will be included in every pack of the vacuum cleaners.
Customization
The company’s designers have already done the customization of the product. Market research will enable the engineers to identify specific needs of the potential customers to improve the quality of the vacuum cleaners.
Product differentiation
The vacuum cleaner will be tailored to describe the company’s competitiveness; the differentiation will include the branding to make it attractive.
Item 2: distribution
Discount
The company will focus on offering discounts to the distributors for at least the first four months to encourage them to purchase more products.
Training
Training in the first week before releasing the product in the market will create awareness to the intermediaries.
Linkage
The company will combine the wholesalers and retailers’ efforts after the first quarter to facilitate increased sales.
Item 3: price
Discount
The firm will offer discounts for the first three months of the product introduction in the market.
Price discrimination
Some parts of the market that have high concentration of low-income earners will have reduced prices for the vacuum cleaners for the first year of operation.
Low price strategy
The marketing team will conduct frequent market survey to ensure that the company’s price is the lowest prevailing in the market.
Item 4: promotion
Gift vouchers
The gift vouchers will be available during the festive seasons when many customers are free to participate.
Trade shows
Trade shows will be conducted during weekends in the first three months to create awareness and promote sales for the company’s vacuum cleaners.
Advertising
The firm will invest in magazine advertising for the first four months in a monthly-published article. This will enable to create customer awareness and interest for the high quality vacuum cleaners.
Monitoring the Progress
Action 1: Research
The company will conduct a market research in the second quarter of operation to monitor the progress of the marketing plan. The survey will enhance relevant changes to be made by the managerial and marketing team to ensure a well-formulated marketing plan.
Sales evaluation
This strategy of monitoring will involve evaluation of the target sales and the actual sales after one year. The management team can determine the progress by assessing the difference between the two amounts.
Employee participation
The company’s workers will be invited to give their suggestions on the progress of the marketing plan. This will occur in the sixth month of operation; relevant changes will be made to ensure efficiency.
