Marketing Help
mandakay93
Introduction…………………………………………………………………………………………...2
Part I: Diagnosis Section- Performance Review of the firm and external market factors……….2
Part II: Prescription Section-Key market initiatives and action plans……………………………..5
Part III: Prognosis- Description of actions, Budget required and market
performance outcomes expected…………………………………………………………………...5
Conclusion…………………………………………………………………………………………....6
Introduction:
This marketing plan will cover all the goals and aspirations the Right Company has from Periods three to six as well as how we plan to make these aspirations a reality. This marketing plan will discuss the firm’s performance through two periods and all the external factors involved in our progress thus far. Our plan will also cover our key market initiatives and action plans moving forward. Lastly our marketing plan will provide crucial details such as a summary of our actions, the budget our company will require to reach our goals, and what we expect our outcomes to be in the near future. After reviewing the Right Company’s marketing plan, one will have a better understanding of what goals we want to accomplish, why we want to accomplish them, and how we plan on accomplishing them and succeeding in this competitive market.
Part I: Diagnosis Section- Performance Review of the firm and external market factors
Financial Position:
|
Period 0 |
Period 1 |
Period 2 |
Revenues |
37,370 |
41,316 |
53,005 |
Cost of goods sold |
-19,852 |
-21,149 |
-26,876 |
Inventory holding costs |
-565 |
-761 |
0 |
Inventory selling costs |
0 |
0 |
0 |
Contribution before marketing |
16,953 |
19,405 |
26,129 |
Advertising media |
-2,880 |
-3,800 |
-2,400 |
Advertising research |
-120 |
-288 |
-600 |
Commercial team costs |
-2,478 |
-2,540 |
-2,347 |
Contribution after marketing |
11,475 |
12,778 |
20,782 |
Market research studies |
-322 |
-505 |
-441 |
Research and development |
0 |
0 |
-1,530 |
Interests paid |
0 |
0 |
0 |
Exceptional costs or profits |
0 |
0 |
0 |
Earnings before taxes |
11,153 |
12,273 |
18,812 |
All numbers in thousands
Market Share (% units) |
15% |
Rich |
9.8% |
Rise |
5.3% |
ROI |
209% |
|
|
SWOT Analysis:
|
Positives |
Negatives |
Internal |
Strengths |
Weakness |
|
Advertising Message Quality
Investment in future (R&D)
|
Production and Inventory Control
|
External |
Opportunities |
Threats |
|
Invest in untouched market segments (Clinites)
Invest in new Nutrites Market |
SIMBA- $25 Million more in revenue -much higher market share
Competitors spending more on Marketing have higher brand awareness |
TOWS Matrix:
|
Strengths-S |
Weaknesses- W |
|
Existing Brands Existing Brand Awareness
|
Production Management Budget Limitations
|
Opportunities- O |
SO |
WO |
New Products New Markets New Customers |
Growth Strategy- Reach new customers with existing brands through advertising.
Reach new markets with existing customers. |
Development Strategy- Manage production to increase availability to new and old consumer segments. |
Threats- T |
ST |
WT |
Competitior Brands New Products New Markets |
Defense Strategy- Be one of the first to introduce new products to new markets. |
|
Throughout period one and two we have focused on not only building customer awareness but also on Research and Development. We have positioned Rich products to target singles and low income consumers, Rise to target the high earners. We invested in a new Clinite product Ring to target the middle income segment, this product will hit the market in period three. We chose to target this segment not because it’s a growing segment but because no other companies have even come close to satisfying their desired Clinite product characteristics.
We spent $3 million on advertising and advertising research. This did help increase our consumer brand awareness. However, we failed to meet demand by under producing our Rich and Rise products. In period one we overproduced in period two we under produced.
Part II: Prescription Section-Key market initiatives and action plans
Strategic Initiative:
1. Reach new markets with exsisitng products.
Target market: Middle earners, clinite market
Marketing Tactic |
Where or How? |
Budget Implications |
How is success measured |
Product |
New clinite product |
$1.4 Million In R&D Project |
Rapid growth in market share for Nutrite market |
Price |
Price according to middle earners desires, 12.80 |
Maintain substantial profit margin |
Gross margin maintained after launch |
Promotion |
promote specifically toward the middle earners |
1224K in advertising |
increase in consumer purchases in middle earners segment |
Channel |
mainly through Mass merchandisers where middle earners shop |
increase in commercial team size and re allocation of employees |
review % of sales in mass merchandise stores |
|
|
|
|
0. Be one of the first to introduce new product in new market.
Target market: Families, Nutrite market
Marketing Tactic |
Where or How? |
Budget Implications |
How is success measured |
Product |
New nutrite product |
$7.7 Million in R&D project |
Rapid growth in market share for Nutrite market |
Price |
Price according to Families requirements, 14.90 |
Maintain profit margin |
Measure % of sales to middle earners |
Promotion |
Promote toward families |
1224k in advertising |
look at % of consumer awareness |
Channel |
Not sure yet, need to look at market research in quarter 4 |
increase both commercial team and advertising expenditures in period 4 |
measure % of sales in each channel |
|
|
|
|
Although SIMBA company has gained a much higher market share and higher revenues they have less money invested in new products. We have a Nutrite product expected to launch in Period 4 targeted toward the family consumer segment. We also in Period three plan to do a feasibility study on a Nutrite product targeted toward the largest growing segment of the Nutritie Market which is the elderly consumers.
We clearly need to change our approach to managing production. We first need to determine how many sales we lost to our competitors. For periods three through six we will focus on determining production based on previous period sales as well as the expected market growth.
Part III: Prognosis- Description of actions,Spend similarly on each product
In order to achieve our strategic initiatives we have to manage our production to increase revenues, and expand the size of our target market to increase market share. By introducing the new Ring product we can expand the size of our target market and in turn will increase our market share. In order to increase sales and sales revenue we have to have products available on the shelves, but at the same time we do not want to incur holding costs. We will project our production based on previous quarter sales as well as the expected increase in the size of the market which is 21.7% increase in next period (period 3) and 127% increase over the next 5 periods.
Conclusion