Report Introduction
This is a three-year marketing plan for Company G, a company that will revolutionize the small appliance industry in the country.
It’s a time for a revolution, a revolution in the American households. Never before has this been schemed since the invention of the first refrigerator. Now is the time to introduce to the world this first refrigerator which has been the result of years of study and research. Additionally, we also have the air-conditioning unit, an appliance that should go along with a refrigerator.
We have not decided for a name, but we have suggested another series of consultations with American consumers as to whether they can suggest a name for a ref. Is the term ref, which is a household lingo, enough in sound and language to call a thing which contains everything that goes inside our stomach?
American households need low-cost refrigerators. Government data released states that a refrigerator appliance is the highest ranking necessity in an ordinary American household regardless of income level. The refrigerator rates 99.9%, followed by cooking appliances, then by colored televisions. (Energy Information Administration and Residential Energy Consumption Survey, cited in eia.doe.gov 2004)
Timely and ingenuous are the terms we can describe to our planners and engineers in building our valued product, a result of years of research, accompanied by constant modifications and consumer consultations and surveys.
Our refrigerator comes in various forms, sizes, colors, and although it is for any kind of household regardless of income because of its low price, we have a refrigerator for the middle income, the wealthy and the not-so rich. This latter classification has been the result of our planners’ study of what American housewives and consumers place inside their refs. Indeed, the rich don’t care much of what they place inside their refs; it’s the not-so rich who are concerned of the contents of their refs. However, regardless of class, American households are concerned of quantity and quality inside their refs.
The Marketing Plan
Jobber and Lancaster (2003) highlight an effective hierarchy of the marketing plan.
Following this plan of Jobber and Lancaster, we can see the relevance of objectives, strategies and tactics, to gain a competitive edge. It is in this context that we follow our plan to that of Jobber and Lancaster.
The plan involves analysis of customer needs, attitudes and trends in their behaviour, and competitor analysis including an appraisal of their strategy, performance, their strengths and weaknesses.
Mission statement
It is our mission to satisfy our target customers who are, among them, the ordinary American households, in terms of providing low-cost small appliances.
This company dreams to provide every household the low-cost refrigerator that can boast of quality, durability and style. Along this line are the state-of-the-art but low-cost air-conditioning units for homes and offices. This combination of a product can best revolutionize the ordinary American and the wealthy households.
Market objectives
Target market for the company’s product
Small appliances such as television, air-conditioning units/systems, washing machines and spin driers, rice cooker, gas stoves/ranges, etc. are common items in ordinary American households. Refrigerators and air-conditioning units however are our appliance specialties.
Therefore, the target for the company’s products is composed of American households, housewives, bachelors and single moms, students, and other independent-minded Americans who are living on their own. The market target use refrigerators like they use any other ordinary appliance at home. It is a necessity.
What do they place inside their refrigerators? They put food and other items such as medicine, and other stuffs to be preserved or frozen before they are consumed.
Marketing objectives
- Product – To provide low-cost small appliances to ordinary American households across the country.
- Distribution – To provide a systematic but effective distribution system throughout the different branches across states.
- Price – To provide customers small appliances at low, low prices.
- Promotion – To facilitate an effective promotional campaign that will highlight the company as a household name in terms of low cost but quality-oriented small appliances, such as refrigerators and air-conditioning units for homes and offices.
Competitive situation analysis
- Classify Company G’s products using the three-way consumer products classification system.
Through the product classification system, Census measures the output of such product and its output with an appropriate coding system. Refrigerators and air-conditioning units or our company will go the same process. Each item will bear a coding system that can be monitored by the government Census.
On the other hand, we have the three levels of our product:
- “the core product – the level of a product that provides the perceived or real core benefit or service;
- “actual product – a composite of the features and capabilities offered in a product quality and durability, design and product styling, packaging and brand name; and
- “the augmented product – support aspects of a product, including customer service, warranty, delivery and credit, personnel, installation and after sales support.” (Jobber and Lancaster 2003, p. 248)
- Company G’s competitive environment utilizing Porter’s Five Forces model of competitive forces.
Jobber and Lancaster (2003, p. 21) state: “The marketing environment, which consists of political, legal, regulatory, societal/green technological, and economic and competitive forces surrounds the buyer (consumer) and the marketing mix.”
For this reason, this plan foresees these marketing environment forces as a threat to facilitate exchanges with customers. These forces influence the customers’ behavior and lifestyles, standards of living, and needs.
SWOT analysis
Strengths
- “Highly regarded in the electronics market with expert team of engineers and designers who have developed a line of small appliances” This can prove that the company’s products are quality products that can be trusted by consumers.
- “A low debt-to-equity ratio and a high credit rating. In the three years to come, financial capital is much needed for the company, and with such low debt-to-equity ratio and high credit rating, the company is sure of a financial backing or additional capital in the future.
- “Excellent relationships with current suppliers. Suppliers are an important factor in the flow of business, especially with this kind of business, the electronics market, which demands effective and on-time supply of materials.
- “The company’s XG brand and logo are readily recognized by most categories of electronics product consumers.” (Quoted from the given scenario) This is one of the core competencies of the market. There are countless competitors with established brand name in the electronics market. With our XG brand and logo, we wouldn’t have difficulty to give a go in the business of low-cost small appliances. With an established brand name, the company is sure to go ahead of its competitors.
Company G’s weaknesses related to the new product line or marketing plan
Electronics need new raw material suppliers to support the small appliance line. There maybe some difficulties in finding suppliers along this line of products; finding suppliers could prove a hindrance to success. With the emergence of China as supplier/producer of low-cost electronic materials, the company may have to import the materials. This is one of the problems of the industry and even in other products – finding the appropriate and efficient suppliers that can give low-cost materials. Since our products, refrigerators with some new-added features, are new to the market, we will find competitive forces improving their products to compete with ours. We will then be competing finding for suppliers. China will be a destination in this three-year plan, if we don’t find some other suppliers in the country that can offer us at low price.
Three current or potential opportunities within the industry
Production of small appliances has always been a challenge to the company with our team of expert engineers and planners.
- We have experienced engineers and designers who have conducted research and intensive study in the production of electronic appliances. They have explained and attested to us that these appliances are of top-quality and that they have an appeal to the our target market.
- We can have the opportunity of leading the market of lowest-cost appliances. Electronic appliances have skyrocketed and it’s time to introduce our products.
- We have a small front-end investment but a low debt-to-equity ratio and a high-credit rating that can give us the opportunity to make it big by adding more capital.
- Describe three current or potential threats within the industry.
Other manufacturers are producing this kind of electronic appliances. We may have to move fast in our entrance. Three years may be long, but we also have to give ourselves time to make surveys and studies as to the entrance of new and the threat of old competitors.
Environmental forces continue to loom in the horizon. Competitors will look for ways not to allow us to make the edge.
The global recession will haunt our entry into the appliance industry market no matter what low-cost, quality product we can offer.
Marketing strategies
Product
Jobber and Lancaster (2003, p. 256) say, “Marketing must aim to satisfy customers. In the context of products, this goal demands an understanding of the core product requirement. However, it depends on marketers identifying and providing the actual product features expected and – with ever increasing importance – aspects of the augmented product such as customer service, warranty, delivery and credit, personnel installation and after sales support.”
The strategy of customer service, warranty, delivery and credit, personnel installation and after sales support can strengthen and give more appeal to the product along with its brand name.
- Distribution – Our own staff to provide effective distribution system. Supply chain should be aided with the latest software, tracing our own products from the moment they leave the warehouse up to the time they reach the stores and the customers.
- Price – Provide customer service warranty, delivery and credit. As our primary objective is to deliver small appliances at the lowest cost, we shall strive to maintain the original price of the product.
- Promotion – Promotion and adverts can be done through the internet. Other additional strategies involve infomercials and multi-media advertising. The internet is a fast-growing and effective communication that has been used by more and more businesses and organizations, not to mention the multitude of people, young and old, who patronize and log on everyday and every minute of the day.
Tactics and action plan
Action plan for implementing the marketing strategies identified “Sales strategies and tactics may only be arrived at, implemented and assessed against a framework of company-wide objectives and strategic planning processes.” (Jobber and Lancaster 2003, p. 64)
- By increasing prices, we can increase revenues, but not too high since our primary objective is to deliver low-cost small appliances.
- Another strategy is increasing sales volume at the company level or increasing market share;
- By increasing industry sales, we can also increase revenues.
- By giving discount to customers for certain amounts of products purchased. However, this strategy of giving discounts should be discussed at the managerial level and not by the sales force who might give more than what is authorized or specified, to the detriment of the company’s policies.
- By personal selling, in the long term, we can increase output sales for the products.
- By having an effective sales force.
Personal selling can be implemented for a long term survival and the sales people can identify customer needs and wants. They are the company’s liaison officers, and they make contact with the outside world. These strategies can be achieved within the three-year period.
Monitoring Procedures
Managers and supervisors who are in the field can do the monitoring procedures. Complaints and suggestions can be endorsed through the company’s website which will have the weblog portion for the customers and employees.
A special team will monitor the effectiveness of the plan. This special team will be composed of managers and staff who have displayed zeal and enthusiasm for the advancement of the company. Action plan for the team will include a round-the-clock supervision, somebody to man the website and its complaints department, and a continuous monitoring of the output of the company’s products.
Our three year marketing plan will materialize with much success.
References
- Eia.doe.gov (2004). The Effect of Income on Appliances in U.S. Households. Web.
- Jobber, D. and Lancaster, G. (2003). Selling and Sales Management, Sixth Edition, England: Pearson Education Limited.
- Jobber, D. and Lancaster, G. (2003). Selling and Sales Management, Sixth Edition.