Company G is a firm that has specialized in the provision of electrons in the market model. This company has introduced a new line of production in the market that is composed of electric knives for the small household appliances market. This company is interested in identifying how successful this process will turn out to be, given the level of expertise the company holds as well as the in the consideration of the market share that the company holds in the electronics market. This marketing plan is an outline of the company’s analysis, given its interests in the new line of production.
Electric Knives and the mission Statement
Company G’s mission statement clearly outlines that the company aims at improving product quality and the resultant efficiency. This consequently improves the convenience of using the specific product in question as well as the lives of each household that uses the appliances. Launching the electric knives will enable the households improve on their general lives based on the time spent in using manual knives. Development of these electric knives is therefore in line with the requirements of the mission statement of the company.
Target Market
The electric knives will be launched for the small household appliances markets that demand these appliances. Company G is not new in the electronics market, as it has already acquired a significant market share in the general larger market in the electronics industry. The company targets to bring to its board consumers of relatively small appliances especially household appliances, specifically electric knives. These consumers have by one means or the other been locked out of the bigger market of electronics that this company deals with, thus the need to develop theses appliances for the small markets.
Marketing Objectives
- The resultant marketing objectives for the company in the new line of producing electric knives are:
- Provide quality electric knives for the benefit of the buyer and the consumer
- Make the knives available to the direct user when they need them
- Offer fair and competitive prices in the new line of production
- Engage promotion as a marketing tool for the benefit of the consumer or buyer
Porter's Five Forces Model
Competition and Rivalry
The electronics market is diverse and dynamic due to the tastes and preferences of the consumers. In this regard, Company G is likely to face competition from other producers and suppliers of knives and other household electronic appliances in the market. When good pricing, quality products and market share of the company may help determine its success and performance in the market, the new line of production is not properly defined in the same terms because the future is uncertain. The company has assessed the market and identified an unmet demand for the electric knives. Proper design and product offering can help the company capture the electric knives market alongside the competitors who will enter the same market to offer the same product as Company G does. The most important thing that the company should do is to differentiate its products from those of the competitors, alongside adopting creativity and uniqueness in the product development.
New Entrants
The operations of the company are subject to being challenged by new entrants that will seek to adopt and improve on the electric knives that Company is due to offer. Following this, it is important for the company to formulate and implement effective measures that will keep the entrants at bay. This may take the form of proper pricing strategies that are based on the company’s performance portfolio, given that the company is already operational and it is only building on the unmet demands in the market model. New entrants threaten revenue generation for the already existing firms.
The Buyer Threat
Buyers are the driving force behind any business, and Company G ought to understand this fact. Buyer threat is a down turn for any business and it is important for this company to provide appliances that do not in way compromise on the tastes and preferences of the buyers. These electric knives are due to be designed and produced for the buyers, who in return determine the operation ability of the company. Buyers may not necessarily be the consumers of the products, but their role in business cannot be ignored.
Suppliers
Supplier pattern and chains require regular analysis if the business is to be operational over time. They determine the functionality and production of the firms, given the supplies they provide to the company. Supplier threats are likely to be minimal to Company G due to the level of its establishment.
Threat from Substitutes
Substitutes by greater extent are likely to affect Company G by virtue of profitability. Pricing and quality of substitutes greatly determine how they perform in the market. Consumers on the other hand are rational and are always willing to pay less for more. Lower prices and a compromising quality may fetch up Company G’s market share even when it offers quality products due to the fact of pricing.
Three-way Consumer Products Classification
Convenience good – Under this category, no much effort is tailored towards the comparison of price and quality. Company G’s electric knives can be produced with such features that will put the products in all the three categories of consumer product classification so as take advantage of the differentiated tastes and preferences of the buyer or the consumer. This can be done through offering the electric knives alongside closely related items, but from the same company.
Shopping good – This category necessitates product analysis in terms of price, quality, fashion and suitability before the buyer or the consumer actuality undertakes the purchase. In this case, Company G can rely on its already established ventures for tips and sale prospects in the offering of the electric knives.
Specialty good – This category solely dictates the brand name alongside specific qualities that buyers and consumers look out for in a product. In this case, a given brand of products is demanded and strictly no substitutes are taken as an alternative. Since Company G is a large market shareholder in the electronics category, it can consequently achieve a significant success in the electric knives market based on the electronic establishments it has already made.
SWOT Analysis
Strengths – Company G has acquired a significant market share in the electronics market alongside earning itself a name in the industry. In addition, the company is not new in the electronics industry and therefore its performance cannot be compromised.
Weaknesses – The predictability of the market behavior of the electric knives venture by the company is not certain. The company can hardly predict on the turn of events. The company has not before carried out a trial performance of small appliances. Finally, the company has not outlined ways of combating competitor actions.
Opportunity – The Company has an opportunity to expand and diversify its business and performance portfolio. Increase in revenue generation is another opportunity available to the company. The above opportunities further grant the company an opportunity to increase and improve on its profitability.
Threat s– It is not given that the electric knives idea is only being pursued by Company G only. Threat of failure is therefore open. Unfair competition and pricing challenges are other threats that the company is prone to face.
Marketing Strategies
Product
Ensure product quality meets the expectations of the customers. This follows proper branding of the electric knives and the use of modern technology and efficient production methods. The company should accomplish this based on the mission, goals and objectives of the company.
Distribution Channel
The company should adopt the know-your-customer scheme to reach out to its potential buyers and consumers. The small markets for the electric knives are fundamental to the unfolding of such developments in a bid to reach out to the customers. Reach-customer-in-time is essential in the consideration of the distribution model to adopt.
Pricing Strategy
Given that Company G is well established, pricing should not be a hustle for it. Proper pricing is necessary in capturing the market share, but care should be taken in the pricing process to ensure that the price recovers costs of production.
Promotion Strategy
The Company should create awareness by way of promotions. This attracts customers because it takes advantage of the fact that the consumers are rational. Proper performance of promotion products builds customer trust and the company should consider promotions of the electric knives when they fully develop them.
Monitoring and Control Activities
Activities that aid in monitoring and control of product performance may include but not limited to advertisement, price reviews, total quality management, brand name improvement, quality assurance, customer awareness, reviewing the objectives of the company and the practice of know-your-customer schemes and programs. The adopted activities should be grouped according to the activities that the company can handle at one point in its operational year. Grouping of the activities should not exceed four groups so that each group is implemented at every quarter of the year of company operation.
