The Richards Group: Marketing Plan Report

Organization overview

This is a marketing plan that will focus Richards’ group that offers advertising services to various companies operating in the all sectors of the economy. The company deals in advertising services to other company by ensuring customer loyalty. The online advertising operates the same way as the media adverting although real time. The company has it headquarters in the Dallas, 750 N. Central Expwy., Ste. 100 Dallas, TX 75231-6437, United States.

The company’s main competitors are also trading in the same market segment but have not adopted the proposed service. However the company’s current objective is making them grow at a rate which competitors cannot match. They currently target Mexican market with this service and young generation as a way of capturing a huge segment of the market.. The company’s corporate social responsibility ensures that environment is sustained for the future generation. They have the best customer care programs and customers enjoy services that enable them monitor the progress of their advertisement. The company’s competitive edge is the ability to attract customers of all fields and all levels of income by offering various services with various prices (The Richards group: A Branding and full service advertising).

The company mission statement and vision are:

• Vision statement: To enable companies to develop brand name and increase their market share worldwide.
• Mission statements: To innovate and develop value of the brands, committing the company to be.
• Highly service and customer-oriented.
• Innovative, competitive and strongly focused towards customers satisfaction.
• Be an international leader in the advertising industry.

SWOT Analysis

Strengths:

• It will be the first company to launch multi industry online booking services therefore customer confidence will be high.
• They will grow through the use of strategic alliances with members of various industries requiring their services.
• They will have exclusive rights and for the first years of operation thus being a monopoly in multi industry.
• Low cost of setting up because the partners in the business are young trained professionals in various fields.
• The company will be able to assist in online shopping as part of business.
• There will be high operational matching and reduced risks relating to profitability competitive pricing of the services.
• Convenient virtual location.
• Direct mail delivery capability service innovation ongoing.
• Management is committed and confident (Mullins L.J. 1999, pp 131-2).

Weakness:

• The company will experience barriers to enter foreign market because of regulations to protect home made companies.
• Unavailability of broadband in the third world.
• There will be high competition in the market.
• No pilot or trial done yet.
• No company brand awareness.
• More training of the staff to familiarize with the new service.
• Limited budget (Mullins L.J. 1999, pp 131-2).

Opportunity:

• There is potential of growth through the increasing of market share if the strategic alliances, mergers and acquisitions strategies are adapted.
• The new services developed are linking the changing lifestyles of people in the world therefore attracting the large market.
• In corporation of encrypt technology will assist the company grow faster.
• The company has opportunity of entering increasing target market.
• Launch services like online shopping.
• Could develop and improve the service.
• Can surprise competitors.
• Profit-margins will be good(Mullins L.J. 1999, pp 131-2).

Threats:

• Threats of the key staff is critical.
• Vulnerable to reactive attack by major competitors e.g. sabotage.
• Cheaper substitutes.
• There are many competitors in the market.
• There is economic downturn brought by financial crisis.
• Rules and regulations of different countries differ.
• Interest rates and inflation rates increasing (Mullins L.J. 1999, pp 131-2).

Environment analysis

Technical: Richards’s group also has exploited modern technology in ensuring that it expands its business activities to different parts of the world. Media advertisement was among the top three best selling services.

Additionally Richards has exploited e-commerce; through e-commerce sales and they have benefited from technology by use of technological equipment (Schaik J.L., 2002 pp.132)

Global: Richards group have appealed to the global market, with a very strong base in America and they have diversified their business activities to other parts of the world. The introduction of this service will not only have wide coverage but will also increase the company’s abilities to collaborate. By the year 2008 Richards had diversified its business operations into other parts of the world through collaborations. Their business activities had also expanded to new territories. They have also formed international partnerships with other countries like Mexico(Schaik J.L., 2002 pp.126-129)

Political: Before a company starts to operate in any market, they must first update themselves regarding the rules and regulations of the country they are operating in. these regulations will range from taxation, competition regulations, licensing regulation. Apart from the mentioned factors there are many other factors that will affect the business in operation. Therefore the directors of this company should be ready to adjust and fit into the political situation of the countries where they are operating. As mentioned political environment is inclusive of tax laws, government laws, government agencies, leisure groups which forms barriers for businesses operations (Schaik J.L., 2002 pp. 132)

Economical: Interest and exchange rate affects the consumer spending and this could affect profitability of the firm. Once the purchasing power of the citizens comes down then the company in operation will reduce profitability. The interest rate and inflation rate prevailing in the economy affects also the purchasing power of citizens. On average income distribution and disposable income available among American citizens is fair as compared to other parts of the world. The U.S is a multicultural country which has stable balance of payment and low foreign exchange rate thus any business operating in the U.S will be stable business (Schaik J.L., 2002, 133-136

Social: Social cultural threats emerging today are the issue of terrorism. Terrorism has changed the life pattern and styles of many people. Unfortunately issues like ethnocentricity is contributing greatly to the marketing of some tools and services in the various parts of the world. Some cultures may prohibit men from sharing anything with women including buses, aero planes. Just imagine the Taliban of Afghanistan who banned men from wearing short trousers and women from exposing their legs and faces. Such a culture or social setting has great impact on Booking of facilities like restaurants eventually affecting advertising for such companies. Therefore before the company understands where they are going to operate in they must know the culture of the people(Schaik J.L., 2002, PP 132)

Target market

In order to identify and serve customer targets well, there is a great need to understand their needs and wants. This is how that particular service will serve the needs. The company should come up with a service that is easy to operate so a s to make the customers more comfortable. Proper studies should be done to the market before coming up with new ideas.

The service mainly will target the all people who are access to internet services, who will make a large percentile of the total target market, and a small portion will be of who have e-mail addresses. The main reason why the company is targeting people who are access to internet is because from it nature, online advertisement is always known to be for those people browses and hence they spend a lot of their time working online. This target market size is estimated to be more than 2billion world wide and 150million in the US and Mexico alone.

The main target for this type of service will be businesses, however the services can be used by all groups. The target market will be segmented into various segments based on economic, age, religion, income, and social status. The market is divided into the nature of business and income segmentations, income segment will be experienced between corporations and individuals as individuals.

Consumption is to a large extent a function of disposable income. Thorough analyses of consumer income, income distributions and the manner in which consumer units appropriate their disposable income is thus essential in any quantitative market study. Information on differences and trends in the distribution of income on a geographical basis and by ethnic group can be particularly valuable in the demarcation or regional market segments and target market segments. Income data on cities and parts of cities is also used for purpose of decision-making on the location of branch stores and shopping centers.

A decrease in the percentage of families with a very low disposable income, coupled with a rapid rate of growth in the number of consumer units in the higher income branches, spells a dramatic increase in free purchasing power. The level of discretionary income of any community if so special significance since it implies a growing market potential for durable consumer goods, some luxury goods and certain types of services. Information on the relationship between income and consumer expenditure on particular categories of goods and services is particularly useful for purposes of market segmentation(Schaik J.L., 2002 pp. 251-255).

This market is segmented into three-subgroups and qualities suitable for use of the service. These segments are:

• Online booking companies: This group consists of a large percentile of over 30% approximately of the whole market segment. Over the years, all the online advertising companies have been generating a high turnover of profit due to the high usage by this segment. The Online booking companies enjoy and love to advertising online and hence they can never exhaust using this service in future in the near future. Online booking companies always been described as one of the major users of the services and get to display their services online. Hence with the introduction of the service, the Online booking companies can still enjoy advertising with the branded services at the same time get to feel good and be proud of their uniqueness new service launch.
• Individuals: This is a segment that has largely been sidelined by many advertising companies. This includes politicians who are doing their campaigns, celebrities, professionals and fun makers. This target comprises of approximately 15% and whose are willing to use this new service launch. A lot of studies and research that have been done, demonstrate that these category, respond positively to online advertising therefore the new service be acceptable among themselves (Cateora, P.R. & J.L. Graham, 2007 pp. 228-230).
• Business community: This is a largest group that consists of approximately 55% and it mainly consists of all businesses. This segment has been known to be fully dedicated in achieving their goals and objectives and have the purchasing power to do so. The unique factor of online booking will attract this segment.

The three market segments are suitable target, because the segments are able to generate over 500 billions annually especially in the industry and the net worth of this industry is growing yearly. This is especially observed particular in the holiday seasons, where the advertising industry records record high profits of over 5% profits compared to the other periods. This market is growing and expanding internationally with more advertising companies expanding to all the five continents, hence the attractiveness of this target to the company(Cateora, P.R. & J.L. Graham, 2007 pp. 228-230).

This target market has potential for growth, because of the key reason of the company’s custom-made online advertising, which will embarrass uniqueness and customer specification.

The marketing segmentation variables that have been used to select the segments include:

• Age of company: The size of the age of company has a important bearing on the target market. This market base serves a three-fold purpose in the segmenting; decision-making and buying by directors on behalf of children, the influence of competitors on the advertising decision, spending habits by the advertising companies.
• Size of the company: The main target market is the large multinational, because their advertising and aggression advertising has always been known.
• Income: The large percentile of companies of approximately 85% have an influence on the purchasing decisions of the competitors, hence their income levels becomes a subjects of consideration.
• Lifestyle: The small percentile will be influenced to use the service because of their, lifestyle i.e. hobby which motivates them to be online and market themselves.
• Cultural factors: The diversity of the target market will be addressed by the service, hence will enable the users from different backgrounds accept and feel about themselves.
• Personality: The online advertising will be able to address the different physical characteristics, hence influencing the purchasing decision of individuals (Schaik J.L., 2002 pp. 251-255).

Channels of distribution

There are three main channels of distribution that the companies will use. To expand and ensure fast movements of the services, the company will form a collaboration whereby the appointed partners, will be able to carry out advertisement on the their behave in various countries and then share of profits at a percentage that would be a win-win situation for both of them. The estimated revenue that will be generated through this channel will be approximately 45% of the whole revenue( Ansoff, H. I. 1965, pp.372-382).

Use of online website to make:- Though this channel the customers will be able to place orders directly online. The company will establish a website, where the customer can know and learn more about the service instead of going to the companies premises. This will especially be useful for further customers in other countries and make it easier for partners. The customers then pay for the order via visa cards and they will receive the services one week after orders placement for no additional charge. This method of distribution will be used once the service starts making profits i.e. after three months ( Ansoff, H. I. 1965, pp.372-382).

Use of direct marketing:-This will involve the place within town centers, which are the target for the customers within the towns. This channel of distribution will be advantageous to the company. The store will use point-of purchase promotion methods so as to attract traffic at retail store, remind customers, encourages impulse buying, ensure additional visibility to the advertising campaign ( Armstrong G. & Kotler P. (2007 pp 213-225).

Market mix

Service

The real time online advertising services will to send services adverts that have already been recorded to people with emails and those who are online that is real time. These customers will have the ability to receive a favorite service description to the computers. This is a good service offered at a fee and will solve the businesses need to communicate through advertisement. This is possible through the various service features that are evident in the new service. It is inclusive of a device chip that can be leased cheaply at selected stores that sell advising materials and it is installed in the company servers after which customers will enroll in our website include and pay a fee to get the rights. The other option is to have us to advertise from our site. Perhaps the most important factor is that feature that prevents other competitors from viewing the customers’ selection of strategies. This feature will supplement the services basic functions and it is important to note that the best way to compete is being the first to come up with new valued features. Great consideration should be given however to how many people want each feature and how long it will take to come up with each feature and whether competitors will easily cope with the feature (Armstrong G. & Kotler P. 2007 pp 662-667).

Price

The pricing of services is divided into two. One is lease of the special devices that will be inserted in the existing service that is, fixed price per chip and lease rights lease fee and on the other hand, we have the price depending on the number of advertisement a customer makes per month. This varies according to the usage of the service and this pricing is rather psychological because it encourages the customers to use more service because the more services, they send the less the cost per service and those with unlimited advertisements per month pay still less per month and this type of pricing tends to reward loyalty of customers to the service. The price discounts are also used as promotional methods to encourage the customers to join in as groups and organizations. This is corporate pricing (Kotler, P. 2005 pp173-190).

Place

Tthe service is the most superior and best and most reliable advertising services with high quality and day-to-day service development features added to enable customer satisfaction. The service has two options where a customer has the option of leasing or uses our website that is available to all business people (Kotler, P. 2005 pp173-190).

Promotion

To increase the service awareness, the company undertook the following promotion strategies and they are:

• Establishing of website, where client/consumers can order for the services on line.
• Use of print media.
• Use of social events that the company sponsors e.g. wine tasting events, breast cancer awareness, etc.
• Use of local TV shows.

The company has previously undertaken marketing campaigns and they include:

• Use of print media, local television adverts, billboards etc.
• Use of local TV shows, which advertise the brand.
• The establishment of the website.
• Use of direct mail and telemarketing (use of telephone marketing).

The company intends to expand its market segment by employing the use of direct mail, which will be distributed to all corporate companies, hotels and restaurants, spas and fitness and gyms and lastly all entertaining spots. The mail will include an invitation letter, brochure that talks in details about the range of services i.e. different water capacity, the prices and incentives (Kotler, P. 2005 pp173-190).

Sales strategy

A business opportunity analyses will be done to establish and capture best practices that should be adopted by sales professionals. Selling of the service will be done through advertising of the service to attract customers and thereafter ensure a solid relationships building is done with the customers by meeting their unique needs and so lasting relationship will guarantee market that will increase sales.

Sales support resources, will prioritize so as to maximize revenue and profit margins. This will involve developing and providing action plans to ensure that all sales and sales support personnel are on the same level and understand what is needed to win more orders at higher margins.

Since decisions by management have long-term effects it is important that they should be based upon a true understanding of the past with a logical estimate of the future. In a small business, detailed knowledge of the business and its environment will be possessed by perhaps one man, but in a larger one this is unlikely to be so and there is therefore a need for a formal fact-finding process. It is likely that there will be a host of factors which could adversely affect the company’s future or, alternatively, which could be exploited if the company were prepared in advance to take advantage of them. Typical questions that the management must consider are: what changes in the business environment will be experienced from now until the corporate plan is achieved, and what opportunities will these bring? What changes in the abilities and structure of the company will have taken place over this same time span? Are these external and internal changes fully taken into account in the company’s long-term objectives? (Kotler, P. 2005 pp173-190).

Relationship Marketing

Richards’s group used direct marketing to their clients with the use of art and science. Art because the company is creative and science that serves as catching up that content with the quantity and quality of advertising. The industry is of great challenge due to the needs of real people and subjected to customers who are more demanding due to reward and the right service that should be given at the right time. Most marketers may even face the dilemma with such huge opportunity in order to reach out the customers but also respects the privacy of customers. The other point of pressure is showing the results and deal with the budgets of marketing as the cost items in respect to the privacy of most customers. The other point of pressure is to deal with the budgets of marketing known as the items of cost and to have the investment return. The information may be gathered in advertisement due to online advertising with the means of empirical and practical aspects. Most customers wanted such gratification and at the same time flexibility. Most customers also appreciate in control and create the card of tailor-made wherein test the value in many forms of various propositions, gain the insights as valuable that pertains to the customer segments.

Promotion Budget

The company will entails the use of marketing campaign awareness so as to promote the brand and service, hence at he launch of the company will need ‘bang ideas’ to be supported realistically. The company will involve in communicating the message of image acceptance by the businesses and business community. The promotion will help convey the service mission statement to the intended target market which will be achieved through the use of integrated marking communication approach. The company to convey the mission statement will be in three fold i.e. the message used to target the market will be help in fulfilling in the customers need. This message will be conveyed in the posters, catalogue and in the website. The company will target to advertise in magazines that both the investors and business executives read, hence the company will place an advert on these magazines. There will advertisements in the website the target market frequently access. Through this the company will create a ‘must use’ notion about the service, whereby all the companies in business will encourage each other use (Ackoff, R. L. 1979 pp. 312).

Through the use of other promotional tools i.e public relations will also engage the company to sponsor some of projects. Hence the company will invest in this initiative so as to show and demonstrate good publicity. T he use of other media eg. Billboards, catalogue, the company will engage the service of local advertising agency.

Growth strategy

After three years the company shall start diversifying the service into various services that are related to it. The business will practice segmentation and start specializing in areas where the competitors have weaknesses.

Conclusion

Richards’s group is a good company with main focus to customers and marketing. This company is good in consideration with the different aspects that includes the views as well as the target market and clients. Richards group is also aware with the increased awareness of plans and the efficiency of cost in relation to sales. The company exists in order to gain more profit and be able to be competitive in all aspects of business. The use of different marketing strategies is of great help because of the contribution in profit and the style in the field of business. Though there are lots of pressures experienced by Iris Financial Solutions, the company remains to stand in their own. Research and studies are also applied in this field of business in order to test the different styles of marketing with strategic point of view that may be implemented. The company is also using incentives due to component of loyalty programs wherein there is also an exchange of value between the retailer and the customers. Loyalty marketing can be seen with the maximization of profit but not the cost center. There is also an ability in order to make money which can be further used in investing activity. Given the fact that there are many competitors, Richards group remained to stand and continually searching for discoveries with many important views that can be used in the future.

On the other hand, the clients are also giving such amounts considerably incredulous and their personal data for purposes of communication. The procurement of personal information as well as the services means every year earning in order to achieve the loyal success of marketing. Another marketing strategy used by the company is the connection of the rewards systems using the card-based in order to help the marketer for getting the information required. The beginning of good relationship of company and clients can have a nice value essential with the making of loyalty work in terms of marketing. The big division between the marketers and clients has something to do with the transactional level while fostering the need for long term relationship. The good aspect that may be considered is the global brand used by most companies and business expansion in order to grow and also evolved with the target audience for the diversification of needs. Richards group is using different marketing strategies with the target objectives in order to gain control in the market. Planning is the most important part and crucial role made by the company in every aspect of significant decisions that Richards group face. To stand as a company is not an easy task because of higher competition present in every aspect. The target market was reached by Richards’s group though there are still some points that need to be improved in terms of promotion and pricing.

References

Ackoff, R. L. (1979). A Concept of Corporate Planning. New York: John Wiley.

Ansoff, H. I. (1965). Corporate Strategy: An Analytical Approach to Business Policy for Growth and Expansion New York: McGraw-Hill.

Armstrong G. & Kotler P. (2007). Consumer Markets: Influences on consumer behavior, Principles of Marketing.

Cateora, P.R. & J.L. Graham (2007), International Marketing, 13th Ed., Irwin/McGraw-Hill.

Henry Assel; (1987); Consumer Behaviors and Marketing action; Boston:KentPublishing, pp.27-28.

Kotler, P. (2005) Principles of Marketing. New York.Melbourne Press pp173-190.

Mullins L.j. (1999); Management and organizational behavior; Prentice Hall, pp 131-2.

Schaik J.L., (2002); The Task of Marketing Management; J.L. van Schaik (Pity) ltd.

The Richards group: A Branding and full service advertising. 2008. Web.