Company G 3-Year marketing plan

 

Introduction

Company G produces electronic appliances and provides electrical services in the state of Florida. This is a marketing plan for blender XG, a line in the small appliances market that the company is currently introducing to the market. 

Product Description and Classification

Blender XG is a product by company G in the small appliance market that introduces style and efficiency into the small appliances market. The product comes with a one-speed setting for fast and easy blending, removable stainless steel blades, and a completely safe interlock. Blender XG has a power output of 350 watts and comes in one size H38, W24, and D23. Blender XG is designed based on the company’s mission to provide quality and convenience to customers by providing an innovative electronic solution. The uniform size of the product and the one-speed setting for fast and easy blending for users guarantees convenience to the customers. The product also meets innovation from the easy to assemble and remove parts and a completely safe interlock. 

Consumer Product Classification

Company G produces consumer goods that are classified into convenience and shopping goods. The small appliance line of products are mostly convenience products that are frequently purchased for household and office use. The more expensive and bulky appliances like 

Target Market

The existing market and potential clients for company G products include households and offices in Florida in the Tampa Bay Area. This includes counties in this area, including Hillsborough, Polk, Pinellas, and Pasco. The area has a diverse population of about 4 million people who are well educated and cultured. The primary target market for Blender XG product is households with young children with working and household mums. The secondary markets for the small appliances line of products include offices and schools within the area. For all the consumers in the region that seek quality and convenience through innovative electronic appliances, company G will provide these appliances at affordable prices.  

Competitive Situation Analysis

Analysis of Competition using Porter’s 5 Forces Model

Porter’s five forces model will determine the competitiveness of the market and evaluate Company G’s strategic position.

Competitive Rivalry. Many companies produce small appliances, electronics, and housewares in the local market but, company G stands out based on lower-cost products, and most electronic products consumers recognize the company’s XG brand.

Threat from New Entrants. Company G is well-positioned in the market as it already has an established customer base. The company has also invested in online marketing and service delivery for the small alliances’ line of products. 

Threat from Buyers. Company G is a low-cost producer in the small appliances industry. The products are also of high quality and have artistic elegance that gives buyers value for their money. Internet marketing, online sales, and delivery has cut operational costs, and so the company can deliver low-cost products to the consumers.  

Threat from Supplier. Company G enjoys an excellent relationship with its suppliers. Having established such, the company can create better relationships with new suppliers that it needs for the component parts.  

Threat from Substitutes. Company G enjoys customer loyalty as consumers easily recognize the company’s XG brands and logo. Company G also offers its products online, which not all companies do.

SWOT Analysis

A SWOT analysis examines the internal environment (strengths and weaknesses) of a company and the external environment (opportunities and threats) in the market (Thompson, 2004). 

STRENGTHS  

  • Low costs of production
  • High credit rating
  • Good supplier relationship
WEAKNESSES

  •  Inefficient marketing plan 
  • Lack of product variety
  •  Lack of constant suppliers
OPPORTUNITIES

  •  Well established
  • Nature of target population
  • Credit services to distributors
THREATS

  •  Changes in industry structure
  • Price competition
  •  Economic pressure

 

Strengths 

1. The company’s production process is labor and time-efficient. This leads to low raw material waste and low production costs. 

2. The company has a high credit rating, and this avails financial resources for expansion.

3. The excellent relationship with current suppliers enables company G to meet market demands in a timely fashion.

Weaknesses

  1. Inefficient marketing plans for the small appliances products have limited the company’s expansion. 
  2. The lack of variety of electronic products that the company offers hinders the efforts to expand markets. 
  3. The company also lacks constant suppliers for all raw materials needed for production, and this may negatively impact production. 

Opportunities

  1. Company G is well established, and this is a strong opportunity as for every new product, there is a possible client.
  2. The well-educated and cultured population in the Tampa Bay Area and the constantly increasing population provide a business potential for the electronic company. 
  3. Company G offers credit terms to distributor intermediaries. The company can therefore meet production, distribution, and marketing needs.

Threats

  1. Due to the changes in the electronic industry, the company has to be up to date in these areas to stay competitive.
  2. Price competition can also arise from firms producing a similar line of products.
  3. Economic pressure and recession can negatively impact the production and sale of electronic appliances. 

Market Objectives

Product Objective 

To inform the target market about the features and use of the new product.

Price Objective

The price objective is to achieve market penetration through increased market share.

 Place Objective 

To ensure the availability of Blender XG to the market.

Promotion Objective 

To create awareness of the product Blender XG in the target market. 

Marketing Strategies

A marketing strategy is a set of activities that explains the business goals to be achieved through marketing. Business goals and objectives, therefore, shape marketing strategies. Marketing executives use innovation to identify, evaluate and make use of emerging market opportunities. 

Product Strategies

  • To build quality and convenient products for small appliances customers
  •  Conducting market research for the new product
  • Position product in the market

Price Strategies

  • Price adjustments by lowering prices
  • Increased product promotion
  • Increase the product distribution channels

Place Strategies

  • Increasing and improving online presence
  • Expand distribution channels
  • Increase sale points

Promotion Strategies

  • To advertise in small appliances and home magazines, and newspapers.
  • Distribute the Blender XG product samples to electronic shops and retail stores
  • To offer direct appliance usage services to shoppers

Explanation of Strategies

The chosen marketing strategies based on the four elements of marketing mix will provide company G with focus and direction by identifying the opportunities to pursue and the threats to avoid. The strategies will also ensure that company G identifies the correct tools to gain market share and beat the competition. The strategies also translate the company’s mission to provide innovative electronic solutions to improve the quality and efficiency of the customer’s lives. 

Tactics and Action Plan

Tactical and action plans are the basic steps that a company uses in order to get particular results. A company usually sets objections and then develops strategies that will achieve the objectives (McGrath, 2001). This is a short-term action plan for the business goals and strategies in selling Blender XG. 

Product Action Plan

Tactic Due Date Responsible Party
To build quality and convenient products for small appliances customers Throughout the period of producing and selling the product to the target market. Company G production engineers and designers will build these appliances.
Conducting market research for the new product 6 months before and once the product enters the market Company G’s marketing and development department 
Position product in the market From the day of market entry Marketing and product promotion department 

 

Price Action Plan

Tactic Due Date Responsible Party
Price adjustments by lowering prices Three months once the product reaches the market Finance and accounts department 
Increased product promotion Two years after product introduction Marketing and sales department 
Increase the product distribution channels From the day of product entry into the market Logistics department 

 

Place Action Plan

Tactic Due Date Responsible Party
Increasing and improving online presence For 3 consecutive months after product entry Promotion department 
Expand distribution channels 3 months after product entry Distribution department 
Increase sale points 6 months into the business Sales departments 

 

Promotion Action Plan

Tactic Due Date Responsible Party
To advertise in small appliances and home magazines, and newspapers To start immediately and go on for 4 months Promotion department
Distribute the Blender XG product samples to electronic shops and retail stores To start immediately and continue throughout the financial year Distribution manager and department
To offer direct appliance usage services to shoppers 5 months following market entry Sales and marketing department will be responsible

 

Monitoring Procedures

Monitoring is the process through which there is the observation to assess the process of an action or procedure. Monitoring a marketing plan enables a business to ensure that efforts conform to the action plan (Baker, 2008). The following is the monitoring procedure for the marketing objectives and strategies. 

Monitoring Activity Due Date/Frequency Responsible Party
Sales levels  Monthly basis The sales individuals will keep track of sales levels from the retail points
Measuring number of calls by customers After every three months Customer care department 
Assessing social media fan page Monthly basis Marketing department
Number of product referrals by customers   Monthly basis Sales and distribution departments

 

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