Abstract
The creation of effective marketing strategy is the key component of successful introduction of new product or service. This research is aimed at formulation of the comprehensive marketing plan for ready-to-enter the market landscaping company Green Art Studio. The company offers innovative EPCM-system of landscape design that results in establishing long-term relations with the clients. Green Art Studio fulfills dreams both of highly and lowly placed clients providing sustainability and innovations. Marketing plan includes overall strategy identification, analysis of industry competition, market positioning, communication tools and 4-Ps definition. Specific attention is given to the issue of target audience as the result of thorough analysis. It should be noted that the strategic marketing plan is based on significant theoretical basis and may be implemented in reality. Moreover, the paper discusses proposals concerning the service promotion and further implementation of the marketing strategy. The academic sources and relevant databases were applied in process of marketing strategy development.
Introduction
Marketing strategy refers to main activities of the organization aimed at achieving its marketing objectives. The marketing plan consists of specific strategies for target markets taking into account marketing mix and environmental analysis. It also presents research of alternative developments that may influence the behavior of the organization. Creation of specified marketing strategy for the new product or service purports to limit risks associated with particular market situation. The efficiency of marketing management is based on three key components such as planning, organization and control systems at the enterprise. Therefore marketing plan has direct impact on the further positioning of new product or service.
For the purposes of this research, it was chosen to develop marketing plan for the services in field of landscape designing offered by new company Green Art Studio. It is important to pay attention to the theoretical aspects of the marketing strategy formulation. For this end we shall discuss the specific features of the service provided by Green Art Studio, create mission-statement of the marketing campaign, focus on the issues of target market, potential competitors, formulate marketing mix and identify the system of public relations.
Product / Service Description
The Green Art Studio implements the concept of providing the landscape designing of highest quality. The company offers differentiated product that is affordable for significant number of customers, covering both luxury and low-cost market segments.
The company offers following services:
Sales, supplying and delivery of green objects
Landscape design services with further maintenance of the project
3-D visualizing system
Preparatory landscape work
Gardening services
Planimetric surveying of the territory
Creating of luxurious projects with unique features
It should be noted that the main competitive advantage of the company is the enhanced system of customers loyalty that is based on EPCM-format that means combining the engineering, procurement, consulting, and management aspects. It results in the best quality and guarantees establishing long-term relations with the clients. The motto of this company is providing the customer with the opportunity to realize his designing dream. The product is ready to enter the market. The company will apply the concept of just-in-time service that minimizing the expenses on holding large inventory. Moreover, the contracting with manufacturers of landscaping object will result in cost minimization at the initial stages of its functioning. The company shall work with experienced designers that specialize on developing of the innovative and really stylish landscaping projects.
Objectives/Mission Statement
The main strategic goals for the short-term period may be stated as following. The first one is to attract the representatives of the public sector in order to get 10% of governmental orders within 5 months. The brand should be recognized by at least 40% of the target auditory in one year. The Green Art Studio should receive 30% return on investment within one year by the way of establishing effective system of marketing communication with target audience and potential customers. Another short-term goal is to establish strong system of cooperation with at least 5 talented and well-known designers that will work with clients on the long-term basis. As the result of the marketing campaign, at least 10 projects should be completed within one-year period.
The middle-term goals are primarily oriented on achievement competitive position on the market. The company should become one of the leaders of the landscape market within approximately four years by the way of setting up the efficient 4-Ps strategy. Moreover, the company should increase its influence by launching large promotional campaign, results of which will be received within 3 years.
For the long-term period, the Green Art Studio should focus on increased presence in other cities by establishing the system of franchising in 5-7 years. Such strategy will result in strengthening of the competitive position gained previously.
Target Market
The landscaping market of US is characterized by strong demand in the green services providing. The target audience is represented by two main segments such as businesses and homeowners. At the same time the target market includes also government establishments along with property managers. The state government presents one of the biggest potential clients and the Green Art Studio is already adjusted to meet its expectations and requirements.
It is necessary to specify the main types of customers in order to fulfill their demand and establish the most efficient system of customer loyalty. These types are:
Homeowners planning to sale their homes in future with the need of fresh or updated landscapes
Managers of facilities for public places, government organizations, public places
Builders of the commercial and residential properties
Wealth homeowners, who are too busy for establishing house landscaping
Retirees who need help in maintenance of their gardens
Golf facilities
Government establishments
Competition
The Professional Land-care Network stated that the landscaping market of the United States encompasses approximately 12 thousands landscaping companies. At the same time it is better to analyze the general types and potentials of these organizations for identification of the direct competitors to the Green Art Studio. The main competitors of the company on the residential level are local lawn companies and landscaping organizations operating within low-cost and luxury market segments. Green Network, Frank and Grossman, Valley Crest, Landscape Maintenance Professionals are the main competitors for the analyzed company. It should be noted that the market strategy of the listed companies is quite similar to one chosen by Green Art Studio. At the same time competitive advantages of Green Art Studio such as combination of pricing strategies, innovations and involvement of the professional designers are prerequisite of its further success.
People doing lawn and maintaining landscapes on part-time basis should also be considered as indirect competitors. Statistics shows that green industry in the United States is growing rapidly. The industry provides stable income for the market players, so the number of competitors is dramatically increasing. Absence of restrictions set up by the government and additional subsidies given to the landscaping companies invoke high level of competition. The Green Art Company has great potential for further growth.
Product/Service features
The Green Art Studio is ready to deal with the high level of competition in the industry by introducing effective system of customer relations management. The unique feature is implementation of EPCM-format within the field of landscaping that will result in long-term support and management of the project.
Moreover, the company is aimed at creating the comfortable environment both for highly and lowly placed clients. The professional designers will apply innovative mechanisms in order to realize the dream of the client. The Green Art Studio will participate in different social eco-friendly initiatives that may result in additional advantage for the company. Some of the competing companies prefer to hold large inventories of materials. Despite this tendency the Green Art Studio is aimed at cooperation with contractors for minimization of costs. The idea of "Smart garden" is developed by the company providing opportunities for further implementation of innovative landscaping tools. This product does not directly results in occurrence of any legal or ethical implications. Its introduction will be supported by society.
Core Strategy
The core strategy of the company is based on its positioning. The Green Art Studio will emphasize on the EPCM-format of its activities as the main prerequisite of the highest quality, affordable price and long-term cooperation for customers. The company will realize dream of every customer providing up-to-date landscaping solutions. By this strategy the company will differentiate itself from competitors, being the pioneers of new approach to landscaping services. The basic strategy should also include the concept of following standards and regulations stated by international landscaping community. The Green Art Studio may enter into strategic alliance with competitors in the landscaping industry. Moreover such strategy will result in better chances to fulfill governmental orders. The company's mission: "All solutions in landscape design and gardening in one place." Moreover positioning strategy suggests that the Green Art Studio provides service or a product for all occasions (from the arrangement of the winter garden in the office to design and technical equipment to a large country house) and for different categories of consumers.
The client attraction and therefore retention shall be based on following strategic components:
Delivering of the best jobs on regular basis
Offering affordable prices for all the clients
Ensuring that all feedbacks received from the customers are positive
Establishing effective customer relationship management
Always taking into account the opinion of the client and his preferences
Loyalty programs and discounts for regular clients
Providing after sales support service
Marketing Mix: Communications and promotion
The marketing communications and promotion refers to complex impact of the company on internal and external environment in order to create favorable conditions for receiving
stable profits on the market. The main means of promotion for Green Art Studio are
advertising
sales promotion;
public relations;
personal sales
Internet marketing
direct marketing.
Of course, the choice of specific instruments of promotion depends on the market situation, goals and objectives, financial capacity and the level of competition of the company. In order to form the most effective system of promotion the specifics of the company, features of the service provided should be taken into account.
The print advertisings of Green Art Company are published in most popular newspapers and magazines of the city. The journal "Events and people" will present the information about the company in rubric including interesting tips landscape design. The advertising information on billboards located near the roadways will also influence the results of promotional campaign positively. The billboards will contain brief information about the services offered, brand logo. In order to cover the range of potential consumers having private estates, it is important to send leaflets about services provided by Green Art Studio.
It is also important to set up the system of personal sales. The manager should communicate with existing customers and establish relationships with potential clients, offering best gardening support. Taking into account that the success of the company heavily depends on the public opinion, it is necessary for the Green Art Studio to be actively involved in the life of the city with the aim of creating a favorable image. The company should participate in different sportive and social events.
Moreover the effective Internet website plays an important role in communication system. The online promotion requires low expenses but leads to the highest outcomes. Email marketing means customized distribution of advertising or other messages to customers via e-mail. The peculiarity of this instrument is that it does not require much cost allowing to target certain customer segments and to identify the response of these segments. The idea of social media marketing is to attract customers to interact and promote products. For these purposes, social network, forums, chats, blogs, reviews, ratings, online events should be used by the Green Art Studio. Special attention should be paid to viral marketing. The idea of this tool is to create a "virus" that will attract the interest of users, and force consumers to pass on this "virus" as a specific entertainment. This can be a video postcard or article launched by the Green Art Studio for the purposes of promotion. Therefore the right combination of all the communication tools is the best solution for the landscaping company.
Marketing Mix: Price
It should be noted that the average cost of landscaping depends mainly on particular prices of singular landscaping activities such as grass replacement, fertilization, construction etc. The pricing policy of the Green Art Studio is based on the mission statement and positioning of the company. The prices offered by the company should be affordable for highly placed customers as well as for clients with low income. The model of pricing on the basis of landscaping materials and stable cost of the designer services and planning is the most appropriate one. The Green Art Studio will provide several budget packages that will suite the budgets of all the customers.
Marketing Mix: Channels of Distribution
The Green Art Studio will provide services offered within a five-mile radius. At the same time the system of distribution should be based on contracting with the reliable suppliers whose inventories are located close to the object of landscaping. Such distribution strategy will result in cost minimization. The system of just-in-time delivery allows Green Art Studio to organize supplying efficiently. Nevertheless additional logistics can be made on the clients request. Some of the VIP materials will be supplied directly by the Italian and French factories. For this end, the international system of contracting manufacturers should be established. Moreover, it is important for the Green Art Studio to own several vehicles (microbuses) needed for everyday logistics of gardeners, designers and managers to the landscaping objects.
Marketing Mix: Customer Relationship Management
It is rather hard to overestimate the role of customer relationship management for the landscaping business. The target audience of the Green Art Studio is interested in getting the high quality of delivering of landscaping services at affordable prices. It is important to offer sales and additional bonuses in order to retain customers for a long period of time. The company is ready to offer service at half the prices for special customers who spend determined amount of money on the landscaping within the 12 months period. Moreover if the customer tells to his friends about the Green Art Studio and therefore attract new clients, they should get specific bonuses. The Green Art Studio purports to establish long-term relations with the clients by the way of dream realization.
Conclusion
As the result of this research the marketing plan for the new landscaping company Green Art Studio was created. The system of communications, distribution, pricing, and customer relations was proposed on the basis of analyzing the corporate values and target market of the company. The company should emphasize on its competitive advantageous such as EPCM-format innovation in landscaping and diversified pricing strategy throughout the implementation of the marketing plan. It is fair to conclude that the new company has great potential of further development after its entering the market and the created strategy is the key factor of its success.
References
Christian, P. (2008). Effective customer relations in servicing. Chicago: LOPU.
Lim, P. (2015). The landscaping industry of US. San Fransisco: Public Press.
Moriss, P. (2014). The innovations in landscape design. London: LPP.
Phil, B. (2016, July 10). Top 100 landscaping companies. Retrieved from Landscape Professionals: https://www.landscapeprofessionals.org/nalp/media/landscape-industry-statistics.aspx
Porter, M. E. (1980). Competitive Strategy. Free Press.
Rumelt, R. P. (2011). Good Strategy / Bad Strategy. Crown Business.
