Introduction
The present marketing plan focuses on the new product (washing machine Xeros) marketing strategy. The plan covers the major points necessary for making decisions on how to market the product. The marketing plan provides a thorough market and customer analysis revealing opportunities and possible threats.
The marketing plan also contains a particular strategy to put the product on market. It is necessary to note that the marketing plan is quite detailed and profound; the author also suggests effective solutions and strategies.
The plan touches upon all important points which will help to market the product effectively. However, the marketing plan has certain downsides. Though, the flaws of the plan are not that crucial and the plan can be improved.
Strengths of the Marketing Plan
Market Overview
The present marketing plan includes a detailed market overview. The plan presents precise statistical data which enable the management to draw certain conclusions concerning the present state of the market. It is noted that it is possible to focus on two markets, i.e. residential and commercial.
It is concluded that the development of the residential washer market depends on the development of real estate market. As for the commercial market, the statistical data presented confirm that there is quite slow but still steady growth in this sector. Therefore, the market overview is well-grounded which is very important for a marketing plan (Kumar & Petersen, 2005). The plan reveals two major markets to focus on.
Competition Analysis
The present marketing plan also contains a detailed analysis of the major competitors of Xeros. Thus, Whirlpool, Alliance, GE, Electrolux are the major competitors of Xeros. These are competitors in both residential and commercial markets. Notably, the plan reveals the major threats. It is noted that the brands mentioned above are well known and are properly established.
It can be difficult to establish a new brand that can ‘beat’ the existing ones. Notably, the plan also mentions such threats as new entrants. All these data verify that though Xeros will need a thoughtful marketing strategy to enter the market, the product has all chances to become successful.
Customer Analysis
It is necessary to note that the plan includes a detailed analysis of the customer. This section has one of the major flaws which will be discussed below. As for the strengths of the present section, it is possible to state that the customer profile portrays the potential customer and also reveals customers’ needs and expectations.
All these data can be supported by various statistical data (the present marketing plan also includes certain statistical data). As for the commercial market, the needs of consumers are almost the same. This information is really valuable for the development of marketing strategy.
Data Presentation
Finally, one of the strengths of the present marketing plan is its concise layout. The data are provided in tables and graphs. The present plan is easy to follow. Every number and every suggestion is supported by precise data. The reasoning is logical and comprehensive.
Recommendations
As far as the marketing plan proper and recommendations provided are concerned, it is well grounded and thorough. It touches upon the most important areas. Thus, it is noted that the major focus should be made on greenness of Xeros.
Admittedly, environmental concerns have made people choose products more carefully (Ottman et al., 2006; Kumar & Petersen, 2005). Nowadays people are determined to be environmentally responsible. Apart from this, the marketing plan also reveals the importance of the product’s efficiency.
The plan also contains information concerning effective cooperation with other organizations and companies. Thus, it is noted that it can be effective to collaborate with such organizations as GreenEarth Cleaning. This cooperation may result in certain improvements in the products as GreenEarth Cleaning has vast experience in reduction of emissions. Besides, this collaboration will enhance positive image of the product.
Apart from this, the plan includes information concerning certain outsourcing strategies. Thus, it is suggested that it can be effective to collaborate with Chinese manufacturers (e.g. Shanghai Cobber Laundry) which have considerable experience in mass production.
Therefore, Chinese manufacturers can improve the product, i.e. to make it meet consumers’ needs and requirements. Admittedly, cooperation with Chinese manufacturers will also help to reduce production costs.
Remarkably, the plan also contains suggestions concerning cooperation with such recycling companies as Polychem USA. It is very important to collaborate with recycling companies as nylon beads should be recycled. Again, collaboration with such companies will also enhance the image of the product.
Furthermore, the marketing plan highlights an effective distribution strategy. Thus, it is suggested that the product can be distributed through Best Buy, Fry’s and other retailers. It is necessary to point out that the strategy is really effective as these retailers are popular among consumers.
The present marketing plan also contains suggestions as for communication strategy. Thus, it is suggested to start the advertising campaign with print media and radio. Such print sources as Better Homes and Gardens are mentioned as possible variants.
This is quite a wise choice as the mentioned magazine is one of the most reputable sources in the sphere of household and it is popular among potential consumers. Radio will also enable the company to cover really vast audience (Kumar & Petersen, 2005). Finally, it is suggested to place demonstrations in retailing chains to promote the product.
Notably, the media can be used to promote Xeros in residential as well as commercial markets. The Internet will also be used to promote the product. In fact, the present marketing plan contains little information about the use of the Internet in the advertising campaign, which can be regarded as one of the flaws of the plan (this shortcoming will be considered below).
In addition, the present marketing plan provides a thorough analysis of possible pricing strategy. It is noted that it is impossible to provide a precise pricing model as Xeros is a prototype and such data as production cost or possible margin are still unknown. Nonetheless, existing washer prices are used to suggest possible price.
Thus, the suggested price for residential Xeros is about $3,000 whereas the price of the product for the commercial market can be about $13,000. It is necessary to note that the suggested prices are based on a deep analysis, which makes them valid.
Weaknesses of the Marketing Plan
As has been mentioned above the present marketing plan contains two major downsides. First, only a few people participated in the survey. Apparently, fifteen residential and six commercial customers were interviewed. Even though, the conclusions made are quite logical and rightful, it could be more effective to interview more customers.
It is unlikely that this could change the customer profile considerably, but it could help to collect more data, or rather opinions. These opinions could help to acquire more data about consumers’ preferences, needs and expectations.
Apart from this, the present marketing plan does not pay much attention to the use of the Internet to promote the product. Now, the Internet is one of the most potent means of sharing information. Such sources as social networks alone can provide considerable coverage. So, it could be effective to suggest particular ways to use the Internet. For instance, demonstrations on official websites of various companies and organizations could be effective.
Evaluation of Recommendations and Risks
It is necessary to note that the marketing plan under consideration provides specific and strong recommendations. It is recommended that Xeros should collaborate with certain companies and organizations. This recommendation is winning as the company will be able to reduce costs and improve product development strategies. Furthermore, one of the major recommendations made is to stress ‘greenness’ of the product.
Nowadays the majority of people pay special attention to this factor while purchasing products. Therefore, “greenness” of Xeros is, undoubtedly, an advantage which should be stressed. Besides, the product is efficient so recommendations concerning this feature should also be followed.
Finally, the plan contains recommendations concerning the advertising campaign. Easy and inexpensive strategy outlined (the use of print advertisements, radio and the Internet) is beneficial, especially when it comes to introduction of a new product when there is no established brand.
Of course, there are certain risks, though. For instance, the high price of the product can be a great obstacle as many people consider the price to be one of the most important factors when buying goods. It is important to work out ways to reduce the price. The marketing plan pays no attention to this point. There is one more risk to be mentioned.
The plan includes information about the major competitors of Xeros. These are well-established brands. It is stated that Xeros has features that make it stand out against the other manufacturers. Nonetheless, people often tend to buy proved products. Therefore, there is quite high risk that the sales will be low. So, it is important to pay more attention to the advertising campaign in this respect.
Conclusion
To sum up, the present marketing plan provides data which can be enough to make a decision. The suggestions and conclusions made are well-grounded. The plan contains enough statistical data. However, there are some flaws in the plan. For instance, the number of interviewed customers could be enlarged. This would help to extract more information on customers’ preferences.
As for the communication strategy analyzed in the plan, it is necessary to dwell upon the use of the Internet in more detail. Nonetheless, these shortcomings do not affect the conclusions made and solutions provided. Therefore, the marketing plan under consideration can be regarded as effective and thorough. Using this plan, it is possible to put Xeros on market.
The plan reveals the major points to pay attention to. Thus, while marketing Xeros it is essential to focus on its greenness and its efficiency. Contemporary consumers focus on these factors while purchasing a washer. Besides, it is important to collaborate with different ‘green’ organizations which will enhance image of Xeros.
Reference List
Kumar, V. & Petersen, J.A.. (2005). Using a customer-level marketing strategy to enhance firm performance: A review of theoretical and empirical evidence. Journal of the academy of Marketing Science, 33(4), 505-519.
Ottman, J.A., Stafford, E.R., and Hartman, C.L. (2006). Avoiding green marketing myopia. Environment, 48(5), 22-36.