Introduction
With the rapid development of the modern world and the high mobility of people, creating electronic solutions is particularly important. This is the primary goal of G company, which strives to make people’s lives more comfortable by providing various appliances. It is worth noting that the manufacturer is one of the most popular in the electronic market due to the high quality of the products created and the high trust ratings of customers. In this marketing plan, Company G places particular emphasis on the small-appliance market.
Product Description and Classification
Company G Mission Statement: “We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronics solutions.”
Company G aims to improve the quality of life and increase its customers’ comfort level. It was decided to pay attention to the female part of consumers and create a device that would bring more convenience to life and allow remaining beautiful everywhere and always. Company G offers to the attention of customers a portable hair straightener. With its small size and variability in use, it supports the primary mission of the organization by providing convenience by creating high-quality, innovative electronics solutions.
Consumer Product Classification
The proposed portable hair straightener is a convenience product for women. The first factor that supports this statement is that this product is routine for a large number of buyers. Many women can use it daily to create various kinds of styling. The next factor is the frequent purchase of a hair straightener, which shows the need to create such a device that can be used not only at home. The third factor is that the offered product appeals to a large target market. The assentation is that despite of the fact that most part of the target audience is female population, both man and woman of different ages can be interested in buying this tool, especially during holiday season.
Target Market
The next step that requires special attention is defining the target market for the company’s product. For a portable rectifier, the central part of buyers will be the female population who is interested in the field of beauty and self-care. This offer may interest ordinary users who need to do styling at home, take a straightener on a trip, or professional hairdressers who take orders with departure to the client. The age of potential buyers can range from early adolescence, about 14 years old, to older adulthood, about 65.
Competitive Situation Analysis
In addition to the electronic market, offering such a product as a portable hair straightener, G company enters the hair styling tools market. Sources note that “The global hair styling tools market size was $30.09 billion in 2019 & is projected to reach $39.63 billion by 2027, exhibiting a CAGR of 3.7% in forecast period” (“Hair styling tools market size,” 2020, para. 1). Thus, this implies the presence of a sufficiently large number of rivals who have popular and sought-after names by the public.
- Competitive Rivalry: First, the rivalry that arises in the electrical hair styling tools market is worth considering. Among the main competitors for G are Conair, Babyliss Pro, Hot Tools, Remington, and Panasonic (“Hair electrical styling tools market growth 2022-2028,” 2022).
- Potential New Entrants: The next aspect is the possibility of a threat from new companies entering the market. Thus, many companies are becoming interested in entering the small-appliance market, especially hair styling products. However, because Company G has a pretty good position in the market, it should not worry that new companies may become a barrier to its success.
- Bargaining Power of Buyers: In this indicator, the company is not under threat because, even though Company G considers the preferences of customers, it cannot be said that they have complete control. Consequently, buyers and consumers cannot band together and demand volume discounts due to the company’s independence in this case.
- Bargaining Power of Suppliers: It is worth noting that the power of suppliers is essential for the company. For production, resources are needed to create plastic and ion heating plates, the production of which depends on the availability of materials. With a limited number of suppliers, the company will need to increase the cost of products, but this circumstance is unlikely since the electric market has many of them.
- Substitutes: Because many companies in the electrical hair styling tools market produce hair styling equipment, company G is at significant risk of being replaced. This is because, before the proposed product, there were hair straighteners before the introduction. At the same time, the advantage of the G company’s product is that it can be taken on trips or put in a handbag, which distinguishes it from other products.
SWOT Analysis
Strengths
Thus, first of all, within the framework of SWOT analysis, it is necessary to investigate the strengths of Company G. The main one, which is the core competence, is following the company’s mission. In other words, it means working to provide customers with a high-quality product that will improve their lives. This direction of the company’s activity allowed it to take a reasonably high place among its competitors in the market for small electronic appliances.
The company’s next advantage, highlighted during the analysis, was the innovative design of products. It is worth noting that this aspect implies the choice of a suitable color and the use of the most durable materials. Moreover, the company considers it essential to create products that will make life easier for its consumers and make them return. To achieve this strength, the company hires the most highly qualified designers and engineers who have developed a line of top-quality small appliances. In addition, they constantly conduct extensive testing that has demonstrated that the new products may be the most reliable line of products in the small-appliance industry.
Further, the strength of Company G and its second core competence is the organization’s sustainability policy. Even though the manufacturer works with a large amount of plastic, it tries to minimize the negative environmental impact as much as possible. The team has designed a production process that is very efficient in terms of labor and production-line time, and that will result in very little raw materials waste. Moreover, the company constantly conducts consultations and meetings with specialists who assist in finding ways to process materials and resources that remain after the production of goods.
Weaknesses
Even though Company G has remarkable strengths, it also has several weaknesses that require attention. The first of them is the dependence on suppliers. As already mentioned, the cost and quality of the goods depend significantly on the availability of resources for producing goods. Thus, the company may have problems if suppliers stop delivering goods or can provide only some parts. It is worth mentioning that despite a large number of different suppliers in the market of electrical products, the organization may have problems finding a new one, if necessary, replacement. This is since not all suppliers can deliver high-quality resources or may inflate prices for the goods provided.
The second disadvantage is that the company has outdated market analysis tools. This point is of particular importance, as it directly affects the company’s strategy development effectiveness and what innovations it can bring. Because of this, managers should pay more attention to introducing new ways to study the company’s external environment, consumer preferences, and rival strategies.
The last highlighted weak aspect of the work of company G is the insufficiently qualified staff. This item concerns employees who are engaged in the field of data collection and analysis. To improve the work of the staff, it is necessary to conduct trainings and specialized training programs. The company does not consider the option of firing and hiring new employees, as it agrees that improving the activities of those already hired is easier. Moreover, the process of finding and hiring new employees can be more costly.
Opportunities
The first opportunity for the company is to enter the global market. This assumption follows from the fact that the company is successful within the country where it originated. However, to achieve more profit and improve operations and other key indicators, the organization must attempt to enter the international arena.
The second possibility is the use of e-commerce. At the present stage of the development of social networks, organizations can successfully conduct their advertising campaigns using social networks and targeted advertising on online pages (Taher, 2021). Moreover, e-commerce requires significantly lower financial costs, allowing Company G to focus on weaknesses.
Along with entering the global market, the company has the opportunity to expand its distribution channels of manufactured products. Henceforth, in addition to direct sales, Company G can resort to the help of retailers. Moreover, one of the effective ways to increase profits can also be to attract intensive distribution, which helps increase awareness about the company and its popularity.
Threats
One of the main potential threats that would undermine the marketing of the new product is government acts. Hence, the state can submit possible documents that may restrict the import of necessary resources. Moreover, this item may affect the advertising and distribution of products.
The next threat is an insufficiently perfect system of personal data protection. To solve this problem, the company may resort to outsourcing and hire specialists who will help secure confidential information. Moreover, it will help to protect the company from possible litigation due to issues ethics and rules of data storage and dissemination.
The last threat that has already been mentioned is the possible occurrence of a situation with limited resources. This can lead to a stop or deceleration of production and an increase in the price of the product.
Market Objectives
The next step in building a marketing plan for company G is to consider and define SMART marketing objective. This indicator will apply to such as product, place, price, and promotion. This step is valuable because it helps to determine exactly what the company expects from its activities. Moreover, it helps to determine further strategic indicators of the organization more effectively and successfully.
Product Objective
The main starting goal for the product objective is the sale of 25,000 thousand units of goods in the first three months of sales. For the highest probability of achieving this goal, the company plans to release the product shortly before Christmas. It should be done because the holiday will increase sales of goods, as buyers will be interested in buying gifts. Moreover, this bar was set for such a reasonably short period since the company already has a relatively large audience and customer base.
Price Objective
Further, it is expected that the sale will bring revenue in the amount of 20 to 30 percent of total revenue. This range is due to the fact that this product is intended for a specific market audience. In addition, the combination of efficiencies and the relatively small front-end investment for the line results in the company’s ability to produce each of the lowest-cost goods in the small-appliance industry. Therefore, the value that will be put up for one unit of goods will be $ 75.
Place Objective
The products will be sold in the country of the manufacturer, as Company G has not yet attempted to enter the global market. However, regarding online sales, the product will be located on the manufacturer’s website and can be purchased from there. After three months, the company will check which of the methods proved to be more effective.
Promotion Objective
It is expected that in the first six months of sales, the company will be able to attract about 40 percent of the target market.
Marketing Strategies and Implementation
Based on the derived objectives, further consideration of marketing strategies for each critical aspect follows. As in the previous section, they include the product, price, location, and promotion. This will contribute to a better understanding of the steps and stages that the company must take. Moreover, at this stage, the company’s managers can already calculate what will be needed to achieve their goals and determine the budget for the marketing plan.
Product Strategies
- Like all other products that Company G manufactured, the portable hair straightener will be packaged in a branded package with a straightforward design. The manufacturer’s logo will be placed on the box to increase recognition, and a warranty sticker is notifying of the availability of a five-year warranty on the product.
- Since the proposed small-appliance tool will start selling around Christmas, the company will set a discount that will give the impression that the product is cheaper than similar goods sold by other companies.
- To increase the value of the product and buyers’ interest in the direct product, a special heat protective glove and a napkin for surface treatment of the rectifier will be attached to the box. Moreover, it will be highlighted that on the manufacturer’s website, buyers will be able to find instructions on the use and methods of hair styling using the product. This will increase consumer engagement and influence their visit to the company’s website and possible interest in the rest of the organization’s products.
Price Strategies
- Setting a price that will be significantly less, but at the same time not be lower than the average for this type of product.
- Add a discount when buying a product on the manufacturer’s website.
- Providing customers with the opportunity to split the payment for a portable rectifier for three months, if it is impossible to pay the entire fee at once.
Place Strategies
- Placing the product on the website of Company G and placing it on the main page so that customers immediately pay attention to the novelty.
- Placement of products on the shelves of the manufacturer’s branded stores.
- Use the company’s opportunities to expand the distribution channels of the portable rectifier and conclude agreements with major retailers to increase profits and the number of new customers.
Promotion Strategies
- Paying attention to online commerce and advertising on the company’s website and online pages that are dedicated to beauty and self-care.
- Advertising on specialized pages that are designed for hairdressers to reach as many target audiences as possible.
- Advertising in branded stores and retailers.
Explanation of Strategies
As already mentioned, the company pays quite a lot of attention to design and innovation in its products, which determines such a choice of product strategy. It is essential to let customers understand what advantages they will have when buying this particular product. Regarding the advertising company, an important place is marked by online promotion and the weight of social networks in the modern world. They should help attract as many potential buyers as possible. Moreover, using the new opportunities, Company G will use its branded stores and retailers’ stores as places of sale of its products. This will help to distribute as many products as possible and increase profits. The price is calculated relative to many factors, the central of which is the cost of resources and the average price in the market of rivals. The discount provided will also help reduce the price for buyers without affecting the company’s overall profit.
Marketing Implementation
The introduction of products to the market will be carried out from November 1, 2022. This will be done by gradual product integration and will ensure a gradual increase in buyers. Further, an action plan will be presented regarding the product, price, location, and promotion. This is necessary to determine the time frame of the time spent on each indicator.
Product Action Plan
Price Action Plan
Place Action Plan
Promotion Action Plan
Monitoring Procedures
References
Hair electrical styling tools market growth 2022-2028. (2022). Market Watch. Web.
Hair styling tools market size, share & COVID-19 impact analysis, by product type (Manual and electric (Dryer, straightener, curler, and others)), Application (Household and commercial), distribution channel, and regional forecast, 2020-2027. (2020). Fortune Business Insights.
Taher, G. (2021). E-commerce: advantages and limitations.International Journal of Academic Research in Accounting Finance and Management Sciences, 11(1), 153-165.