Marketing Mix Strategy
Marketing Promotional Strategy
The marketing promotional strategy of Ralph Lauren & Bose Special Edition should focus on spreading the worth and importance of the two brands and their products to the targeted consumers. The marketing promotional strategies should be applied by using different promotional techniques.
Budget Allocation and Expected ROI
Marketing Promotional Mix
The marketing promotional mix of Ralph Lauren & Bose Special Edition will include public relation, advertising, traditional marketing, web marketing, and events. Ralph Lauren has to adopt the latest technologies and equipment to endorse its product. The advertising techniques should be based on traditional and digitalized marketing methods to promote the special edition product effectively. Public relations events will be organized to launch the product and to strengthen relationships with the general public.
Advertising
The use of the state-of-the-art technology will be productive for Ralph Lauren & Bose Special Edition products. It is perceptible that the utilization of latest technologies helps in creating a competitive advantage. The latest technologies bring dissimilar parties together to build a strong business relationship. The use of the latest system and equipment will help to achieve the marketing objectives of the proposed business.
Traditional Marketing Technique
The conventional advertising techniques make use of newspapers and magazines. Ralph Lauren will publish editorial shoots of their products to promote their brand. The company will cast celebrities for editorial shoots.
Digital and Online Media
Digital media has been termed as the latest form of advertising that makes use of the latest digital technologies to promote the brand and its products (Ess 77). Ralph Lauren plans to develop digital ads for the electronic media. These ads will feature a well-known celebrity as the brand ambassador of the new products.
Moreover, Ralph Lauren & Bose Special Edition products will be advertised on social media websites. Ralph Lauren already has verified promotional pages on different social media websites. Therefore, it can easily promote its products online and can obtain feedback from its customers as well.
Promotions
Promotion plays a vital role in making a product or a brand more appealing and profitable (Yeshin 47). Ralph Lauren could promote its special edition products by making use of four different promotional strategies.
Sales Promotion
Sales promotion assists in convincing a potential consumer to buy the product. Ralph Lauren will use sales promotion by providing a promotional discount on different occasions to attract and enthrall the targeted customers.
Personal Selling
Ralph Lauren will use personal selling technique to entice its customers to buy the new product. The company will hire well-mannered sales persons who will actively take part in promoting the brand by interacting with customers on a regular basis to inform them about the latest edition.
Direct Marketing
Directly selling products to customers is referred to as direct marketing. Ralph Lauren will have calling agents who will promote the special edition products by making calls to its loyal customers. The company will also prepare printed material for customers to inform them about the new products.
Publicity
Ralph Lauren will publicize its special edition products by making use of the traditional and digital media. The companies will place advertisement billboards to attract customers. The companies will also publicize its brand by advertising its products on electronic and press media (Kennedy 77).
Public Relation
Public relations referred to the planned communication process that establishes and manages beneficial relations between the company and the general public (Smith 22). Ralph Lauren will develop its public relations by holding various social events that will help it to interact with customers and also build close relationships with third parties. Similarly, Ralph Lauren will work on developing public relations as a part of its marketing campaign.
Sponsorships and Events
Ralph Lauren must understand the importance of making the promotional campaign stronger and appealing. It would need to find supportive sponsors for this purpose. Sponsorships help a company to attain the marketing objectives as they provide the needed marketing support (Cornwell 101).
Ralph Lauren is a well-reputed brand. Therefore, it will not be an issue for the company to find sponsorships for its products. It can select the best company to sponsor its product’s promotional campaign.
Similarly, organizing events for brand promotion plays a vital role in making customers excited about the upcoming product. Ralph Lauren will organize different events at public places such as shopping malls to promote its products. It will also organize different private events to display its special edition products. Ralph Lauren will invite different celebrities to these events. They will also invite the press media to cover these events and the company’s new products.
Networking
Networking refers to the marketing technique that will require Ralph Lauren to appoint independent agents to sell and promote its products in different regions. It will also employ online marketing agents and bloggers to promote their special edition products. Ralph Lauren will use social media websites to promote its products and form a network of marketers.
Marketing Promotional Calendar
Advertising and Promotional Draft
Ralph Lauren will have an effective marketing plan to promote its products. It will start its promotional campaign by organizing high-profile fashion events in different cities to attract customers. The company must strengthen its public relations by initiating a promotional program targeting the general public. The companies will draft print and digital advertisements for promoting their products.
Advertisement Draft
Experience the world between your ears
Ralph – Bose® Headphones
Public Relation Event
Service Strategy
The customers are always searching for a brand that offers valuable services (Gibson 121). For this reason, Ralph Lauren will fulfill the customer requirements by ensuring that their after-sales service is highly supportive. Ralph Lauren will ensure that its service pricing and promotion strategies are effective to achieve customer satisfaction.
The customer analysis has acknowledged the following requirements for effective service strategies
- Ralph Lauren and Bose should offer helpful after-sales service.
- Ralph Lauren and Bose should increase the efficiency of their services.
Financial Plan
The financial plan includes cost analysis, sales budgets, income statement, contribution margin, and break-even analysis.
Cost Analysis
Table 2 indicates the number of units to be produced to meet the marketing objective related to sales of each product category. The marketing objective is to achieve sales of 120,000 units in the first year. The cost analysis is based on the competitor’s costing of its product (i.e. Beats Headphones) (Einstein). The table provides details of all components that will be used for manufacturing earphones, headphones, and speakers. The figures are adjusted for Ralph-Bose.
Table 2. Estimate of Cost. Source: (Einstein).
Table 2 Indicates that the total operating expenses of manufacturing and selling Ralph-Bose products will be $518,500. The variable cost per unit is estimated to be $21.50. The low variable cost implies that the product will have a high contribution margin.
Sales Budget – Monthly
Table 3 indicates the monthly sales budget for Year 1. The distribution of sales per month is based on the marketing objective. It is expected that 50,000 units, 40,000 units, and 30,000 units of earphones, headphones, and speakers respectively will be sold in Year 1 through Ralph’s flagship stores and its online website. It could also be noted that the highest proportion of monthly sales will be of earphones.
Table 3. Sales Budget – Monthly.
Sales Budget – Yearly
Table 4 indicates that yearly sales of the new business are based on the growth rate estimation, which is discussed in the growth plan. The business can expect increasing sales in the next two years as the market conditions are favorable and the demand for music accessories is also likely to increase in the next few years that will support the business to achieve its marketing objectives.
Table 4. Sales Budget – Yearly.
Income Statement
Table 5 provides the income statement of the business for Year 1. The effective tax rate of Ralph Lauren is 33.87% (Ralph Lauren’s Effective Tax Rate by Quarter), which is used for calculating the tax payable amount. It could be noted that the proposed business is expected to have a high-profit margin. The budgeted income statement is prepared on the basis of the analysis of the company’s competitor that is currently selling its products at a high-profit margin.
Table 5. Income Statement – First year.
Contribution Margin and Break-Even Level
Table 6 calculates the contribution margin of the new products. The contribution margin is very high because of low variable costs. The contribution margin per unit is calculated by dividing the total contribution margin by the number of units that are expected to be sold in Year 1.
Table 6. Contribution Margin and Break-Even Level.
The break-even analysis provided in Table 6 indicates that the company will have to sell 6,904 units to break even. The break-even level is very low, and it could be indicated that the proposed business is likely to be highly profitable.
Measurement and Evaluation
The financial plan indicates that the company’s marketing objectives will be achieved in Year 1. The company needs to ensure that the marketing strategy assists the company to generate greater demand for its products. The growth in the company’s sales is predicted on the basis of the current market conditions and forecasts. The demand for music accessories is likely to grow in the future as customers are increasingly using portable music devices.
Risk Analysis and Growth Plan
There are various risks associated with the launch of the new products that are listed in the following.
- The product may fail to create demand for it in different markets.
- The product may not satisfy the customers’ needs and requirements.
- The marketing strategy of the company may become ineffective.
- The management may fail to predict changes in the market.
- The company’s costs may increase due to the rising cost of materials.
Based on the risks identified, the sensitivity analysis has been prepared by adjusting the company’s forecasted sales. The pessimistic scenario is created by reducing the company’s sales by 50%. The optimistic scenario considers an increase in the company’s sales by 50%.
Risk Analysis
Table 7. Sensitivity Analysis.
Table 8 indicates that the growth rate is estimated to be 10% and 12% in Year 2 and Year 3 based on the marketing objective. The aim of the marketing plan is to increase the number of customers every year through effective marketing strategies.
Table 8. Expected Growth Rate.
Long-term Strategy
The proposed business is expected to have a high net profit margin. It will generate positive cash flows for the company that could be reinvested in the business development and product development. The strategy will ensure that the business continues to remain profitable and customers continue to demand its products.
Works Cited
Cornwell, T. Bettina. Sponsorship in Marketing: Effective Communication through Sports, Arts and Events, London: Taylor & Francis Publiishers, 2014. Print.
Einstein, Ben. “We Took Apart Some Beats Headphones and Here’s What We Found.”The Huffington Post, Web.
Ess, Charles. Digital Media Ethics, New York: John Wiley & Sons, 2013. Print.
Gibson, Pattie. The World of Customer Service. Mason: Cengage Learning, 2013. Print.
Kennedy, Dan. No B.S. Direct Marketing, New York: Entrepreneur Press, 2013. Print.
“Ralph Lauren’s Effective Tax Rate by Quarter.”CSI Market , 2016, Web.
Smith, Ronald D. Strategic Planning for Public Relations. New York: Routledge Publishers, 2013. Print.
Yeshin, Tony. Sales Promotionm New York: Cengage Learning, 2005. Print.