3-Year Marketing Plan Essay
3-Year Marketing Plan
Company G is one of the highly regarded firms in its industry. Company G has decided to venture into developing new food processors in order to reach its profit potential and also meet consumer demand. The new food processors will revolutionize the company because of its unique design and the quality of materials used make the food processors are superior to anything used in food processors currently in the market.
“We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.”
Company G’s main focus is to help consumers by providing a product that not only helps their quality of life, but also a product that is easy to use, easy to obtain, and can easily be incorporated into their daily routines. The food processors Company G is producing will take our company to the next level. The new food processors are sleek in design (multiple colors to match décor) and also have a revolutionary blade that guarantees it will never break or bend, thus giving our brand a distinct advantage over the current market. The consumers in our market are high middle class earners and are health conscious. Our food processor provides these consumers an outlet to create and make their own health snacks and energy bars, as well as it improves their quality of life by knowing exactly what they are putting in their body. The food processors create ease for our consumers instead of having to drive to the store and waste money and gas buying other products to fill this need.
Consumer Product Classification
The classification that the food processors are going to fall under based on the marketing and characteristics of the product is shopping. Consumers are going to purchase the food processors less frequent than they would a convenience product. Our consumers are going to compare different products and it is important to them that the product they are purchasing serves a benefit. Consumers are willing to spend more time locating our product based on their research. Our consumer are interested that our product will fill a need and add a benefit to their lives by providing them with an appliance that will ensure their way of life as well as work for many years.
The target market for Company G and our food processors is triathletes. These are consumers between the ages 30-49 who like to run, bike, and swim. They participate yearly in 3 or more events and are very perceptive to what they put in their bodies to fuel it.
This sport has seen the most wide spread in increase of numbers of participants than any other sport in the USA. From 1998-2000 the membership averages in the USA Triathlon participation was between 100,000 to 130,000. In 2012 the membership member reached 550,446. The break down in numbers: (Yellow Highlight dictates target market)
Based on these numbers it is important to note that our company’s target market is going to fall under triathletes between the ages of 30-49 because they make up the majority of the athletes, and these consumers earn between $50,000-$199,999. Even though these consumers make a healthy income, they are very smart purchasers and will only purchase items that will make their lives more convenient. Our food processor will help these clients by making it easier for them to purchase healthy items they want and in turn create their own energy and fruit bars to maintain a healthy lifestyle they participate in.
Competitive Situation Analysis
The global kitchen appliances industry revenue is forecast to reach an estimated $179.8 billion in 2018 with good growth over the next five years (2013-2018). Favorable demographics, rising consumer incomes, and changing lifestyles are expected to drive the demand over the forecast period. (http://www.prweb.com/releases/2013/3/prweb10535053.htm)
Analysis of Competition using Porter’s 5 Forces Model
Small kitchen appliance market consist of many entities. Bed Bath & Beyond, Macy’s, Amazon, Sears, and Wal-Mart are some of the most widely recognized companies carrying small kitchen appliances. While these companies might be considered competitors, these companies do not present a real threat because their demographic and target market is different, and they do not offer what Company G offers. Company G offers our consumers to customize a color of product that matches their home décor, and we are also offering a higher end quality to the type of blade used in our food processor. Our prices at $99.99 for our food processor is in line with some of the food processors offered at Bed Bath & Beyond and Macy’s. Yet Company G offers more options in color and better quality than previously stated companies.
Company G can also be comforted by the fact that our target market are those who consider themselves triathletes. This sets us apart because our consumers are going to be specifically targeted in racing magazines and with this marketing plan we can advertise special offers to our clients for purchasing our product. Our cliental are those that are not going to walk in to a store and on a whelm purchase a food processor without doing research. Therefore, because of the way we are going to market and create our food processor I do not see a threat from buyers, suppliers, or new entrants.
Because of our unique position, Company G stands a great chance is maximizing profit by creating these new food processors. With the increased interest in participating in a triathlon, it would be in Company G’s best interest to start marketing to these athletes immediately. Although there are many substitutes in power bars (Cliffs, Snickers, PowerUps), this does not constitute as a real threat at this time because Company G is marketing our food processor for these athlete’s to create their own in order to know every ingredient going into their own power and energy bars.
The SWOT analysis presents a snap shot of Company G’s position in the market. Company G has positioned itself as a highly regarded firm and because of its customer loyalty it has created a low debt to equity ratio and also has a high credit rating. In doing this, Company G has positioned itself to grow and create new products with the ever changing market place. However, with these changes Company G will be faced with new challenges and obstacles, but keeping true to its mission Company G will succeed by creating quality products, building relationships with suppliers, and maintaining customer loyalty.
STRENGTHS *indicates core competency
Loyal consumer base*
Excellent relationship with suppliers*
Low debt to equity ratio
Too narrow product line
New suppliers may not meet company standards
Joint Venture with Runner’s World
Improved online presence
Enter new markets
Consumer lifestyle change
Company G Strengths
1. Company G has created a loyal consumer base to achieve brand awareness and acceptance:
Because of Company G’s loyal consumer base and brand awareness, creating a new product line of food processors will be another strong addition to our already great production line. We can feel confident that our new food processors will be accepted because of our loyal consumers and the brand speaks for itself. Because our brand is trusted and accepted we can move forward in marketing a new target market and start generating new consumers.
2. Company G has created an excellent relationship with current suppliers:
Our outstanding relationship with our current suppliers, will prove to be beneficial as we venture into new territory of different suppliers. We can use our relationships we currently have with our suppliers to gain additional suppliers to help in producing and manufacturing new food processors. Our new suppliers will feel more confident to work with a company that has been proven and can rest assured they are getting into business with a well-respected company.
3. Company G has created a low debt to equity ratio:
Our low debt to equity ratio, speaks volumes of how we do business here at Company G. It shows that we value our company to maintain a good credit standing and our business values are high. This will help us to establish and obtain financing in order to produce the new food processors. This is vital in our industry because with our past success we can show a proven track record of how we handle our finances. This will help us to grow our products, produce more products, and grow our consumer base.
Company G will continue to follow its core competencies in order to maintain a competitive advantage over other companies. Company G has developed its core competencies in (1) a loyal consumer base to achieve brand awareness and acceptance; and (2) an excellent relationship with current suppliers. The company intends to build on these foundations to keep our manufacturing consistent by maintaining a strong relationship with our suppliers to grow an already loyal consumer following by producing a quality product the consumers have come to expect and appreciate.
1. The product line of new product is too narrow:
The new product line of food processors may prove to be too narrow. Our consumer base has come to expect great products from Company G. Our consumers may be expecting something different for Company G to produce and because we are primarily focusing on this one product, Company G might see a drop in consumer following as they purchase other products from other companies. 2. The new suppliers needed to manufacture new product might not meet company standards:
Our company standards are high here at Company G. We have come to expect our suppliers to provide us with exceptional services in order to meet the demands of our consumers. Because we have used the same suppliers for so many years it is vital that we demand the same expectations out of the new suppliers we must obtain, to produce and manufacture our new food processors. If these companies do not adhere to our same values it may create our new product to fail because they were not manufactured to our expectations. 3. The addition of new suppliers will make current suppliers obsolete:
With the addition of the new suppliers Company G will have to obtain, our current suppliers might become obsolete. This will hurt Company G’s image if we have to close or downsize employees in order to create these new food processors. Company G needs to make sure that the current suppliers understand it is their job to maintain a quality product on our current products and keep producing these to keep our current consumers happy. Company G is adding a new product not discontinuing the old products that our consumers depend on and want.
1. New Product will give us opportunity to joint venture with Runner’s World:
Our new food processors give us the opportunity to joint venture with Runner’s World. Runner’s World is the top magazine for runners and it also is the go to place for triathletes. Runner’s World currently has over 716,867 circulation figures compared to the next highest magazine Athletes Only which has 150,000. (http://www.cision.com/us/2011/10/top-10-running-marathon-triathlon-magazines/) Company G has the opportunity to be the first in the industry to market a new product such as a food processor designed specifically for the triathlete. By joint venturing with Runner’s World this will put our product in the face of our target market and we can offer our product with incentives for these athletes. For example we can market it with a year subscription of Runner’s World and in turn direct our clients to Runner’s World website to purchase our food processor. 2. New Product will give Company G opportunity to improve its online presence:
Because we will be online with Runner’s World this will give Company G the opportunity to increase and improve its online presence. This will give Company G the opportunity to be in front of the target market and also offer additional incentives to save on advertising cost. Because Runner’s World would be joint venture we would be in more places online and not have to spare the acquisition cost of purchasing the consumer. The consumer will be more than willing to visit our Company’s website after viewing it on a website they tend to go to first. 3. New Product will give Company G opportunity to expand into new markets:
Company G has the opportunity to expand into new markets with our new food processors. We have a strong consumer base and our product brand is widely known and accepted. By venturing with Runner’s World this gives us the opportunity to expand into another market that is not being targeted directly. Company G can market the new food processors that are designed specifically for triathletes and in turn create a new market following than what it currently has. This is a great opportunity for Company G to expand on its already loyal consumer base and produce a new product of food processors to capture more of a market share. By targeting this market directly we are not leaving anything up to chance. The triathlete consumer will purchase our product because it is specifically designed and created for them and they in turn will be a loyal consumer because it fits a need they currently do not have and will keep coming back to Company G.
1. Company G needs to be cautious of consumer lifestyle change:
Every consumer in our industry goes through many lifestyle changes. Every New Year consumers make New Year resolutions and sometimes consumers just get tired or stressed. We are marketing to a direct market in the triathlete. These athletes are very dedicated to what they are training to accomplish, however sometimes these athletes get injured or their job requires more time and they lose drive to continue moving forward on this path. Company G needs to understand this threat as our new food processors are going to be designed with the triathlete in mind, however sometimes these athletes decide to move on and stop with this lifestyle and so would the purchase of our product because the consumer would feel it is only designed for the triathlete.
2. Company G needs to be current on Government Regulations:
Every year the government puts new rules and regulations in place for businesses. It will be the responsibility of Company G to ensure that we are manufacturing and producing these new food processors according the Food and Drug Administration standards and that our suppliers are creating a safe and functional product that adheres to these standards as well.
3. Company G needs to be mindful of ever changing technology:
The only thing that remains constant in our industry is everything changes. New technology is going to come along and we need to make sure as a company that we are staying a head of the trend. Our competitors may make a new food processor to compete with our food processors, therefore we need to be confident that Company G and the products we produce continue to fulfill a demand in the marketplace as technology changes. This could mean a cordless food processor to take on the go, or a food processor that only works with a certain fingerprint to keep it out of the hands of small children.
Market Objectives & Strategies/Tactics & Action Plan/Monitoring Procedures Product
Objective: Company G’s food processors will be in 3 national whole food stores by the end of the first quarter FY 2015 Strategy 1: Inventory Control Periodic System to ensure consistent and fast delivery Action/Tactic: Develop tracking of products and manufacturing to determine what is needed and when we need to produce more product Due Date: November 30, 2014Responsible Party: Financial Analyst Strategy 2: Wholesaler to get me into these stores
Action/Tactic: Obtain wholesaler to distribute our food processors Due Date: October 31, 2014Responsible Party: Financial Analyst Strategy 3: Transportation Company to deliver Company G food processors Action/Tactic: Put out bids to secure a national transportation company Due Date: November 30, 2014Responsible Party: Marketing Director Monitoring Activity: First of the month hold meeting to make sure we have established a relationship to get into stores and what is needed to achieve this
Responsible Party: Marketing Director and Financial Analyst Promotion Objective
Objective: Company G will achieve 25% target market awareness of the food processors by the end of the 2nd quarter FY2015 Strategy 1: Integrated Marketing Communication (IMC): Trade Shows at Fitness Clubs and Triathlon events Action/Tactic: Demo the product at fitness trade shows and triathlon events Due Date: July 31, 2014Responsible Party: Marketing Manger Strategy 2: Coupons for Runner’s World magazine and website Action/Tactic: Create incentive for consumers to purchase our food processors by offering a yearly subscription to Runner’s World magazine and website with the purchase of our food processor Due Date: June 30, 2014Responsible Party: Financial Analyst
Strategy 3: Free 12 month recipe sent to consumer each month on all natural DIY power and energy bars with coupons to the whole food store Action/Tactic: Create a monthly recipe for consumers who purchase our food processor. Offer discount through whole food store for clients to go there and purchase ingredients from the whole food store. Due Date: September 30, 2014Responsible Party: Financial Analyst Monitoring Activity: At the end of each month after product release meet to discuss what % of market awareness is achieved to make sure we are on track and obtaining more consumers from our target market
Responsible Party: Marketing director and Financial Analyst As the marketing manager for Company G, I feel the mix of these strategies will give us the greatest chance for success based on our company objectives. I feel that each of these strategies play off each other in order to meet our objectives. We as a company have to achieve each of these in order to be successful. By not obtaining whole food stores to sell our product we are missing out on potential clients and revenue. If we do not get into Runner’s World we will miss our target market and miss out on potentially over 550,000 clients.
If we cannot make 10% profit then Company G has missed it mark and there is something wrong with the product or we are not convincing these athletes that this product is specifically for them. Company G must create a design that will appeal to these athletes and they are very accustom to the run, bike, swim images. We need to create a design that will grab their attention and also make them know this product is for them. It is vital that we establish a transportation outlet in order for our clients to obtain our food processors easily and conveniently. By achieving all of these strategies I feel Company G will be widely accepted by athletes and will create maximizing profit for these new food processors.
USA Triathlon. April 2013. Retrieved from http://www.usatriathlon.org/aboutmultisport-/demographics.aspx.
Vocus PRW Holdings, LLC. March 16, 2013. Retrieved from http://www.prweb.com-/releases/2013/3/prweb10535053.htm.
Cision, INC. 2011. Retrieved from http://www.cision.com/us/2011/10/top-10-running-