Company G: 1-Year Marketing Plan

Introduction

Company G is a well-established business that is highly regarded in the electronics market. The company focuses on the production of small appliances. It has, since its establishment, achieved great success in the market as a result of producing quality products that reflect on consumer needs and preferences. Its ability to come up with innovative solutions in the small-appliance market helps it maintain an edge over its competitors. However, the company lacks a marketing plan that can place it in a better position for profit potential for the small appliances.

This paper develops a new marketing plan that can be used to ensure the company achieves sustainable development.

Product Description and Classification

The product under consideration is a coffee, tea, and espresso machine. This machine brews coffee by forcing pressurized water through a puck of ground coffee and a filter to produce concentrated coffee usually referred to as espresso. The machine can also be used to produce tea (Thurston, Morris, & Steiman, 2013). However, it is mostly used to produce espresso. The company ensures that the espresso machine is of high quality to attract and retain the highest number of consumers. The espresso machine supports the company’s mission, which is to improve quality and convenience of consumers through the provision of high-quality, innovative electronic solutions. Many consumers lack time to engage in traditional methods of preparing a coffee or tea drink especially in the morning before they start their daily activities (Thurston, Morris, & Steiman, 2013). The solution provided by the firm gives them convenience, as it enables them to prepare a hot drink in the morning without much effort. As such, they can avoid skipping breakfast or having to visit espresso shops for fix.

There are different categories of consumer goods including convenience, shopping, and specialty good and services. The coffee, tea, and espresso machine falls under the shopping goods, as it is a product that consumers do not buy often. A consumer expects to use the product for a longer period of time, hence research the market prior to making the purchase decision. For example, a consumer is likely to engage in research to compare product price and features (Lynn, 2012). It is essential for the company to ensure that its products stand out from the rest and are priced competitively to attract many customers. Compromising on quality or overpricing the espresso machine will lead to low sales and profits.

Geographic and demographic segmentation strategies are used to target consumers in the market. The company targets individuals in cities or towns. Consumers in such geographical locations live a busy life with tight schedules. With this being the case, they are attracted to products that enable them to handle different activities and chores at their convenience (Lynn, 2012). Company G also targets middle and high income earners. Clearly, it produces high quality products that are well-designed to meet the needs and preferences of consumers with a good income. The price of such machines is likely to be expensive for low income earners who prefer applying traditional methods to prepare coffee and tea as they find them cheap. In essence, the business is attracted to consumers who have a positive attitude towards its product hence high usage rate.
Company Situation Analysis

The Porter five forces model can be used to analyze the company’s situation and its ability to survive in the industry.

 

Consumer Power

Consumer power is high. This implies that consumers in the market have the ability to influence the price of goods and services offered in the industry. The number of firms in the industry gives consumer more bargaining power. Availability of many options also gives consumer more power, as they can easily switch from one brand to another whenever they are dissatisfied with their current supplier (Lynn, 2012). It is imperative for businesses such as Company G to comply with customer demands failure to which they risk losing them to the competition.

Competitive Rivalry

            Competitive rivalry is considerably high in the industry (Thurston, Morris, & Steiman, 2013). Company G faces stiff competition from companies that have been operational in the market for many decades. Equally, its peers are also a challenge to the company G. The company attempts to produce high quality products and services to remain ahead of its competitors. Nevertheless, the competitors are always looking for new ways to improve their edge in the industry. This explains why Company G must revise its strategies from time to time to maintain its competitiveness. Continuous improvement in product quality and design is of the essence.

Bargaining Power of Suppliers

            Supplier power is moderate. Company G has established healthy relationships with its current suppliers. This has helped it in negotiating fair deals for materials required to produce its products and services. However, different material requirements place the company at a disadvantage in terms of attracting the right suppliers. It is forced to work with many suppliers, which reduce in power in determining the price of materials. Nevertheless, the company can leverage on the relationships created with current suppliers to improve its ability to handle new suppliers.

Threat on New Entrants

            The threat on new entrants is low. The capital required to establish a firm highly regarded as Company G is considerably high. In the same way, a new entrant may be required to spend a lot in marketing to create awareness on its products. Companies currently operating in the market enjoy high levels of customer loyalty. As such, it may be hard for a new entrant to attract consumers to realize high sales and profits (Lynn, 2012). Companies such as G also take advantage of their economies of scale to keep the costs down, hence their ability to offer products that are priced competitively. Typically, new entrants lack such advantages and hence encounter challenges entering the industry.

Threat of Substitutes

The threat of substitutes is high (Thurston, Morris, & Steiman, 2013). There are companies in the industry and other industries that offer products and services that act as substitutes to those provided by Company G. Individual consumers have the freedom to choose between what is provided by the firm and the substitutes. For instance, they can decide to visit an espresso shop to purchase readymade coffee or tea drink. It is essential for the firm to always give its consumers a reason to consume it product as opposed to substitutes.

SWOT Analysis

Strengths

Company G has a number of strengths that it can leverage on to achieve sustainable development. For one, the company is highly regarded among consumers which mean it has a good reputation. Consumers have the tendency to be attracted to businesses that have a good image as opposed to those with a tarnished name. Company G is highly regarded because it produces quality goods that serve consumer needs and preferences. It also has a team of designers and engineers with the necessary skills and knowledge to produce innovative solutions to consumers. The team is always keen to maintain high levels of satisfaction among customers. Ultimately, the firm has an efficient production system. It has streamlined its production process to ensure little or no wastes.

Weaknesses

            One weakness the company needs to address is its marketing plan. It is clear that the management has shown concern regarding the current marketing plan as it believes it may not enable the business to reach the profit potential for small appliances. Dealing with this issue will improve its profitability in the future. Evidently, the firm also relies on many suppliers to produce its products. It is important that it looks for a supplier with the ability to deliver different materials needed to manufacture the espresso machine.

Opportunities

Company G is exposed to different opportunities that it can pursue to improve its competitiveness in the market. The demand for Coffee, Tea, and Espresso machines has been on the rise in the recent past. More consumers in the market are getting attracted to products that promote convenience. This is an opportunity to the firm as it can expand further in the market to increase its sales and market share. Moreover, the company can also expand its product portfolio. Specifically, it can come up with the same products with different features and priced differently. This will also enable it to expand its customer market as well as spread its business risk.

Threats

            Competition is a major threat to the firm. There are other companies in the industry that offer products similar to the proposed Coffee, Tea, and Espresso machine among other goods and serviced produced by the firm. The rising cost of materials used to produce the product is also a threat. Company G tries its best to maintain low costs in its production processes. Its efficiency is threatened with the increasing prices. The firm may be forced to revise its product prices to cover the high costs.

Market Objectives

Product Objective

            The primary product objective for the company is to establish three key differences between the company’s product compared to the competition within the production period and before it enters the market. Company G capitalizes on differentiation to attract and retain consumers. As such, it is logical for it to produce a product with distinct features that can attract consumers. This will also give target customers the reason to purchase its Coffee, Tea, and Espresso machine and not what is provided by the competition. Failure by the business to ensure the same can lead homogenous products and this can give the competition an opportunity to attract more consumers through differentiation (Linton, 2012).

Price Objective

            The price objective is to achieve 20 percent increase in sales within the first six months after introducing the product in the market. The company enjoys loyalty among consumers. However, it needs to enhance its sales if it is to sustain its edge in the market. This can be achieved through its pricing strategy. In essence, the company will be keen to utilize a pricing strategy that allows it to increase its sales and profits. This implies it will avoid approaches that can have a negative impact on its ability to increase sales or attract many consumers.

 

 

Place Objective

The place objective is to open two more stores within the city the company is currently operating in two years after the product is introduced in the market. The company operates in a large city. Opening new stores will ensure it serves its consumers more conveniently. In essence, individuals will not have to walk long distance to access its products. This will also help it to expand its market share and customer base.

Promotional Objective

            The company’s promotional objective is to increase awareness of its products by 30 percent within a year. It is hard for the company to realize its marketing goals and objectives when its target consumers are not aware of its products. Increasing awareness will enable it improve sales and profits. The business will also use this opportunity to inform consumers on the distinctive features of its products. In the process, it will mitigate the risk of consumers being attracted to what is provided by the competition.

Marketing Strategies and Implementation

Product

            The company must ensure the production of a quality product that is well-designed to meet the need of target consumers. Investment in research and development is of the essence. This will enable product developers to come up with unique ideas on how to design the product and ensure great quality. Differentiating the product is also of the essence. Product developers must ensure the product has unique features that differentiate it from the competition. Product packaging is also important. The firm needs to embrace green practices when packaging its products. This means that it must utilize materials that do not have a negative impact on the environment. The packages must also be designed in a manner that is attractive to the final consumer. This is also imperative if the firm is to succeed in attracting more consumers.

Price

            The business must ensure its products are priced competitively to avoid losing consumers to the competition. This means that it should assess pricing strategies employed by the competition before determining how its price its own. Company G can also capitalize on the use of discounts to attract many consumers. For instance, it can offer discounts to loyal consumers as well as those that buy in bulk, for example, retailers. This is a strategy that will enable to increase its sales. The firm also needs to research its consumers to determine what they consider affordable. This will aid to set a price level that the majority of target customers will be comfortable with.

Place

It is clear that Company G is located in an urban setting where the demand for its products is high. It is important that the firm maintains the same strategy to sustain edge. Inventory managers must ensure the location has enough inventories to meet the consumer demand. Failure to ensure the same can lead to it failing to deliver products when they are ordered. Marketing managers at the firm should be looking for new locations the business can expand to after establishing itself in the current location. They must target locations with the highest potential in terms of business.

Promotion

There is the need for the company to invest more in advertising. This will aid to increase awareness on its products and services. It can rely on both traditional and modern advertising strategies. Company G can take advantage of visual, audio, print, and internet media to advertise the product. It can also engage in public relations to engage the public on different social topics in the process also increase awareness on its products (Paley, 2016). Sales promotion can also come in handy in enhancing awareness. Marketing managers can organize trade fairs and use the same to show case their unique products.

Marketing Implementation

Product Action Plan

Tactic
Due Date
Responsible Party

Investment in research and development
Production period
R&D research team

Create differentiated products
Production period
R&D research team

Green packaging
Production period
Marketers

 

Price Action Plan

Tactic
Due Date
Responsible Party

Carrying out a market research
Before product is introduced in the market
The marketing team

Offering discounts
The entire product life cycle
The marketing team

Carrying out a market Research
The entire product life cycle
The marketing team

 

Place Action Plan

Tactic
Due Date
Responsible Party

Establishment in a city
Before product is introduced in the market
The marketing team

Management of inventory
The entire product life cycle
Inventory managers

Expanding to new locations
In two years
The marketing team

 

Promotion Action Plan

Tactic
Due Date
Responsible Party

Increasing advertising
In one year
The marketing team

Engaging in public relations
The entire product life cycle
Public relations team

Engaging in sales promotions
The entire product life cycle
The marketing team

 

Monitoring Procedures

            The company will monitor the progress it has made towards the achievement of its goals by examining actual results against the expected outcomes. Ability to meet or exceed the expected results will communicate the message that the company is performing is realizing its goals. On the contrary, the firm will need to revise its strategies in the event that that current ones are not sufficient enough for it to achieve its objectives. Assessing the performance of the strategies must be done on a regular basis considering the modern dynamic world (Pride & Ferrell, 2014). This will enable the firm to make any changes whenever necessary to sustain its edge. Market research is also important. It is critical for marketing managers at the firm to engage in market research to determine on whether current strategies can be relied upon considering the current market situation. The management also needs to engage in internal research to determine whether its employees are encountering any challenges implementing its strategies and tactics.

Conclusion

            Company G has what it takes to achieve a unique position in the small appliances market. At it needs an effective marketing plan that will enable it to not only navigate the current market situation but also achieve success in the future. A Coffee, Tea, and Espresso machine reflects on its mission as this is a product that enables consumers to prepare tea and coffee at their convenience. It is imperative for the management to ensure the product is well-designed and reflects in consumers’ needs and preferences. Product differentiation is of the essence. It must also ensure the application of effective advertising or promotional tactics to create awareness and attract consumers.

 

 

References

Linton, I. (2012). Brilliant Marketing Plans: What to know and do to make a successful plan. London: Pearson UK.

Lynn, J. (2012). Start your own restaurant and more: pizzeria, coffeehouse, deli, bakery, catering business. Irvine, CA: Entrepreneur Press.

Paley, N. (2016). Marketing for the Nonmarketing Executive: An Integrated Resource Management Guide for the 21st Century. Boca Raton, FL: CRC Press.

Pride, W. M., & Ferrell, O. C. (2014). Marketing. Mason, OH: South Western Cengage Learning.

Thurston, R. W., Morris, J., & Steiman, S. (2013). Coffee: a comprehensive guide to the bean, the beverage, and the industry. Lanham: Rowman & Littlefield.

 

 

 

 

 

 

           

 

 

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