Marketing Plan for a Product of Company G

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Research Paper: Marketing Plan for Company G

Product Support of Mission Statement

Company G is engaged in designing and manufacturing different small electronic appliances. The firm identifies its own mission statement as follows: We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions. Company Gs teams of engineers and designers have developed a line of top-quality small appliances, which have to be launched into the market and promoted properly. One of the examined appliances is a smart watch.

According to the consumer goods classification, the smart watch is a shopping good. Shopping goods are products that customers do not buy very often. They need some consideration before the purchase, which means comparing product features and prices (Claessens, 2015). The product of Company G has high quality, large production variety and considerable benefits. Therefore, a conclusion can be drawn that the Company G is following its mission statement.

Target Market

Company Gs target market is very wide and differentiated. The usage of small electronic appliances is popular among different social groups. The target market of Company Gs smart watch is not determined by gender, profession or geographic position. The usual target age group of Company Gs customers varies from the 20s to 50s. The choice of this age group is based on its ability to purchase the products of Company G. One more criteria is income level. Due to the companys dedication to high quality and decreasing expenses for resource, the firm is targeting a middle class. Thus, the target market of Company G is men and women in the age group from 20 to 50 years old with a middle income level.

The Analysis of Competitive Environment

In order to develop a marketing plan, it is important to analyze competitive environment with the help of Porters Five Forces Model. It includes five company-specific aspects. They are competitive rivalry, potential new entrants, bargaining power of buyers, bargaining power of suppliers, and substitutes.

What concerns the competitive rivalry, the market of smart watches is constantly growing as more and more producers are launching this type of product. The major competitors of Company G are Apple Watch and Samsung Smart Watch. In addition, such companies as Pebble, Garmin, Nike, Sony, Fitbit and Casio have already introduced smart watches in their production lines (Allied Market Research, 2015). Therefore, the competitive rivalry in the market of smart watches is rather strong. As for the potential new entrants, the barriers are considerable. They prevent new producers from the entrance. First of all, the smart watch production is a very expensive process that requires considerable research and development, production, and marketing expenses. In addition, the copyrights protect the already existing products.

The next element is the bargaining power of buyers, which is rather large. Taking into account the fact that more and more smart watch products are presented on the market, customers are receiving more power to choose the producer. Bargaining power of suppliers also plays a considerable role in the market of smart watches. It is of great importance to find unique details and raw materials for such a complicated product. In addition, usually the costs of these raw materials are very high. As for the smart watch substitutes, the functions of a smart watch combine the characteristics of a watch and a smartphone. Thus, both of these products in combination can be considered substitutes for a smart watch.

SWOT Analysis

SWOT analysis is one of the basic techniques aimed to characterize the company. It includes strengths, weaknesses, opportunities and threats. The SWOT analysis of Company G is shown in the table 1.

Table 1. SWOT Analysis

Company G has many strengths. The first one is high quality of products. It has been proven by testing that that the product line of the Company G is reliable and of high quality. In addition, the testing has also proven that the appliances seem attractive to the target customers. Another important strength is brand awareness, which means that the Company G is already well-known among the potential buyers. These strengths provide a possibility to increase the market share and develop customer loyalty. Moreover, Company G has found a way to optimize raw materials usage, labor expenditures and production-line time. As a result, the firm has managed to decrease the total production cost considerably. Financial stability shows that the Company G is a healthy, sustainable and developing enterprise. It is attractive for the investors and creditors who can provide additional funds.

Despite the fact that the company has many strengths, there are still some weaknesses that need to be fixed. There is a problem with suppliers. It is caused by the fact that the production of small appliances requires many unique and complicated spare parts and raw materials. At the same time, they need to be of high quality and sold at a fair price. Besides, the distribution channel of the Company G is rather simple and can reach a limited groups of customer. The last weakness of the company is the need for additional investments. Drawing external funds is usually a rather time-consuming and dangerous process.

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As for the opportunities, there is a large existing market and a rapid development of small appliances. Thus, the number of potential customers is constantly growing. Consequently, the market share, sales and profit of the firm may grow as well. In addition, there is always an opportunity for developing, creating something new and improving the products in the industry with the help of research and development. Thus, the company can easily differentiate its products.

Regarding the threats, there are some obstacles that prevent the Company G form performing better. First of all, the entrance barriers into the industry are considerable. It is hard for the company to enter the market with any new appliance. Besides, the competitive level is also very high. Such world leaders as Apple, Samsung, Toshiba, Canon and HP occupy major market shares of the small appliances market. Moreover, due to the industrys peculiarities, the copyright requirements are very tough, and the company has to be extremely cautious in order not to break the rules.

Marketing Objectives

In order for the marketing plan to be efficiently developed and implemented, it is important to settle specific, measurable, achievable, realistic and time-bound goals. There should be four goals that deal with each specific element of the marketing mix. The product goal to develop and produce a high-quality product within the next 6 months encompasses five smart watches of different styles, interfaces, shapes, and colors. The price objective could be to lessen the production cost in order to set the average price for a smart watch at $250 during the next 6 months. The distribution objective is to optimize the distribution channel length during the next 3 months and launch Company Gs stores within next 12 months. The promotion goal is to increase the sales of the company to 15% of the whole market share within the next year.

Marketing Strategies

Product Strategies

Market penetration is the strategy whereby the current product is promoted in an existing market (Hanlon, 2013). This strategy is applied by the company to the existing products, including smart watches;

Product development is the second strategy, whereby e a new product is launched in the existing market (Hanlon, 2013). This strategy has to be used in order to reach product objectives;

Diversification is the most complex strategy, because both the product and the market are developed (Hanlon, 2013). This strategy gives a possibility to widen the market share and increase profits.

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Price Strategies

Cost-based pricing is the strategy that sets the price according to the cost level plus the profit rate (Learn Marketing, n. d.). It follows the price objective to set rather low prices with an orientation on the cost of production;

Competition pricing encompasses setting prices based on the comparison with competitors (Learn Marketing, n. d.). Due to the fact that Apple Watch costs about $300, the Company G by orienting on the competitor can set a slightly lower price, for instance, $250;

Penetration pricing is the strategy according to which the company uses low prices to capture the market share. Afterwards, the prices are increased (Learn Marketing, n. d.). Taking into account the fact that the market of electronic appliances is full of competitors, penetration pricing is a suitable strategy to occupy a market share.

Place Strategies

Indirect distribution involves distributing the product through the intermediary, for example, a manufacturer selling to a wholesaler, and then – to the retailer (Learn Marketing, n. d.). This strategy is already used by the Company G, as it is selling products through the intermediaries;

Direct distribution involves selling directly from the producer to the end customer (Learn Marketing, n. d.). This strategy allows to reach the distribution objective of creating the Company Gs own stores;

Selective distribution strategy determines a small number of retail outlets to sell the product of the company. This strategy fits the market of electronic appliances (Learn Marketing, n. d.).

Promotion Strategies

Advertising strategy includes delivering the information about the company or its product to the consumer through mass media (Learn Marketing, n. d.);

Public relations (PR) encompass developing a positive impression and a relationship between the organization and the public by representing the company at different events and participating in volunteering. Such activities give the possibility to build a positive image (Learn Marketing, n. d.);

Sales promotion is a strategy, which creates a short-term increase in sales with the help of coupons and discounts (Learn Marketing, n. d.).

Marketing Implementation

In order to make each strategy effective, the Company G is obliged to define proper implementation techniques for its marketing strategies. The table below lists the tactics, due dates and responsible people.

Product Action Plan for a Market Penetration Strategy

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Monitoring Procedures

Several other important elements of a successful marketing plan are monitoring and control. They help to keep the constant track of the established marketing objectives within the settled time frame. In addition, monitoring gives a chance to control the funds and expenditures.

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