Financial Objectives for Chromebook
Financial objectives in a marketing plan are usually divided into revenue, costs, and advertising. Revenue is one of the primary financial objectives for a company and is the income a business acquires from the ‘standard’ business activities that usually include selling services or products to customers. Since the marketing plan is targeted at Chromebook, a very reasonably priced laptop, the main revenue will come from selling the product. Given the fact that a Chromebook will cost $149 (Macbooks cost approximately $999), and the financial strategy is offering customers exactly what they want at a budget price, the objectified revenue from sales may equal as much as $250 million. Such estimation was based on the analysis of other companies that sell high-quality technology at low prices. For example, despite the fluctuations in popularity, Amazon manages to make $265 million from selling the Kindle e-reader, which costs between $79 and $289.
The second but as important financial objective is the cost that goes toward manufacturing, material, distribution, shipping, and personnel. This stage requires more in-depth planning since it is important not only to estimate such costs but also to determine how they can be reduced. It is estimated that shipping and distribution costs may equal to $6 million, manufacturing and material cost may equal to $10 million while personnel costs may also equal to $6 million. If to follow the already-examined strategy of Amazon Kindle and apply it to Chromebook, the advertising costs may be as high as $5 million; however, it is important to remember that Google has an advantage over competitors when it comes to advertising (GoogleAds).
Distribution: Direct, Indirect, or Both?
A marketing mix strategy should include the decision about how a business will distribute the end product to customers. Effective distribution is necessary for the business so that the overall marketing and revenue objectives are met to the fullest extent. There are two key distribution channels that Chromebook can employ in its business processes. The first method is a direct-distribution that implies delivering the laptop to the customer straight from the manufacturer without the use of third-party intermediaries.
While such a strategy may be effective for online retailing (customers can buy the Chromebook directly from a website), it will be tricky to implement it with regards to customers that want to buy laptops in physical stores. Since it is not the best option to open specialized stores to sell Chromebooks, indirect distribution can be a solution. In an indirect distribution model, a manufacturer supplies products to a wholesaler, which, in turn, supplies them to a retailer that delivers the product to consumers. This model of distribution will work best for customers that want to experience the Chromebook before buying it directly from a retailer or just prefer shopping in stores.
A combination of the two distribution options may be the best solution for Chromebooks; however, if Google decides not to incorporate indirect distribution into the business process, then the management should look into opening specialized Chromebook shops or maintain the strategy of uniqueness and exclusivity by only selling laptops online. Although, this may not be the most appropriate choice since Chromebooks were created to be attainable, and selling them through only direct channels may limit the company’s chances of becoming popular and successful.
Implementation and Control
While creating a clear business strategy for a new product is one of the key steps a company should make, without immaculate implementation and control, the effects of the strategy may be disastrous. At the implementation stage, Chromebook’s management should go into extra effort to establish a clear marketing and advertisement cycle that will work in favor of the product. By promoting the laptop on social media, creating a dedicated website, filming commercials, and interacting with potential customers directly, the company will establish a solid base for future business operations that will take the product to the next level. It is important to remember that strategic implementation and control should not replace operational control with regards to the product a company sells. The implementation stage requires strict control of all aspects of the business process. It is important to establish clearly defined control markers that will be used by the management for evaluating the effectiveness of the implemented strategies. Such controls can include specific measures such as market shares owned by the company or marketing budgets.
Milestone review will become another important component of the implementation and control of the Chromebook’s strategy since it will allow the management to assess the progress and the development of the business at specific stages. These stages will be chosen in accordance with the points at which the company committed to a specific goal. For example, when the company reaches the point when the first million of Chromebooks is sold, the management should conduct a milestone review to see what specific actions in the implementation process helped the brand achieve such success in order to use them in the future as guiding principles.