Company G’s mission reads as follows: “We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions.” The company deals with electronics. Company G’s designers and engineers appear innovative and creative in coming up with a new product line of small appliances. However, the current marketing strategies do not appear to match with the newly introduced product line. Failure of marketing strategies can make a company suffer severe losses. Therefore, the company needs to introduce a new marketing strategy, which meets the newly introduced product. This product is in line with the company’s mission due to high quality product that will be convenient to the consumer’s lives. Consumers will be specifying their designs then engineers and designers will produce products that meet consumer specifications.
The analyst used The Porter’s Five Forces model to analyze the market. This is because the possibility of a firm to make profits depends on the five forces, which include new entrants, bargaining powers of buyers, power of suppliers, degree of rivalry, and threat from substitutes. Analysis on new entrants showed that the electronic business could face threats from new entrants. However, the uniqueness of the device will be of significant importance. The low cost of production will also ensure that the devices are sold at competitive, affordable prices; hence remaining competitive.
When it comes to bargaining power of buyers, company G does not face strong buyer powers. The company has a new product that other firms do not provide. Therefore, the buyers cannot easily switch to other providers. The company’s profits will not be affected because the buyers will not influence prices of the appliances. A thorough SWOT analysis of company G revealed that the company has established strong relationships with suppliers. This can probably mean that they are able to negotiate for fair prices. However, the company requires new suppliers to supply components associated with the new appliance. Care must therefore; be taken to avoid supply of materials at high costs as this can lead to low or no profits at all. The marketing manager will also ensure that the company uses cost effective marketing strategies to avoid losses in the long run.
The degree of rivalry among the existing electronic firms appears tolerable. The industry has a number of such large firms that deal with electronic appliances who compete for customers. The company has therefore, decided to come up with a new product line, not offered by other companies. The innovation of engineers and designers serves as a competitive advantage for company G. Again, having tested the product, it is clear that the product will do well in the market if proper marketing strategies are applied. Company G does not face threats from substitutes of the new appliance though it would be necessary to consider that substitutes may come into the market, and outdo the new appliance; hence no profits. The engineers, designers, and the company’s experts will have to work tirelessly to ensure that product quality remains up to standard, and improvement occurs if necessary. The five forces discussed above seem favorable for the establishment of a new marketing strategy.
Initially, the appliance will be differentiated in the market so as not to resemble other PDA’s. The Company G will target a market segment of those consumers with similar needs. Individuals who need entertainment to store information, want to limit paper work and need wireless access while on the go, characterize the market segment of appliance. The primary target market segment will be professionals within the middle-upper income class. The needs of the professional class include being in touch in terms of communicating with friends, family and colleagues, fixing their tight schedule as well as record different information while on the go. The consumer group is selected concerning their income, population size, lifestyles and education level. The professional groups have considerably high-income levels. People that are within the upper-middle class are salaried professionals with high educational attainment and lifestyles. The upper-middle class population makes up 15% of the total population of United States. In addition, the group has varying and high-class lifestyles. Their lifestyles value entertainment as part of their livelihood. A considerable portion of the professional group is young couples. The couples buy their collectibles using their phones. In addition, due to their high income they are willing to dip inside their pocket to purchase an electronic device that best suit their need for quality and needs satisfaction.
- To supply customers with high quality products
- To ensure that customers get the required products on time by using the best distribution channel
- To provide products to customers at affordable prices
- To promote and advertise products effectively to create awareness to both actual and potential buyers
Innovative: The touch screen of the appliance is innovative. It is differentiated from other mobile products in the market and patented. Device is a mobile device that has all the functions in one gadget.
Price: The appliance retail price of $ 350 is a reasonable price in relation to its value. The appliance make outperforms other smart phones and PDAs on the market, and in addition, the convenience of encompassing multiple features in one-device add to its overall value
Quality: The appliance has quality screen in the market in terms of scratch resistant screens and brightness. The body has a metallic finish that is fine hence light and durable. The software collection included is also incomparable in terms of their resistance to computer attacks and ease of use.
Image: The Company G brand has no products that target the needs of the business community, which a considerable number of smart phones companies have targeted. This implies that it does not have a well-known reputation in the corporate world.
Price: Appliance retail price is not friendly to price sensitive customers; hence it does not offer models for price conscious purchasers.
User Interface: In the long run, the touch screen interfaces become uncomfortable due a problem termed as “gorilla arm.” The use of flat and solid touch screen for input disturb the user.
Increasing demand coupled with spreading out to a new target segment: appliances will keep on targeting the business market that needs a one-in-all electronic solution. However, as technology progresses as well as small appliances get cheaper it gives companies with a great opportunity to target those individuals who are in need of efficient entertainment. Company G will create a center of attention for these consumers. As a result, other devices users will upgrade to small appliances.
Upgradeable: The small appliance is easily upgradeable. This allows new stimulating features incorporated that utilize the appliance ability. Upcoming versions of appliances are anticipated to be upgradeable.
Partnerships: Company G can work in partnership with many commanding global electronic manufacturers to flood the target market with small appliances. This reduces costs incurred in marketing along with increasing revenue in the course of long-standing agreement contracts.
Augmented competition: Company G is facing cutthroat competition from new entrants due to easiness in making small appliances. Other Companies that deals with similar products and they have outstanding reputation in electronic industry. Competition can also arise from contractors who can maneuver Company G patent rights and come up with products that resemble the appliances.
Descending pricing pressure: In the long run, many companies will enter the market, this implies that the price of the appliances will eventual decline.
Company G will now have a wide range of products, which shall include shopping goods, specialty goods, and convenience goods. This classification follows the three-way consumer product classification. The new device falls under specialty products. The appliance will come along with two types of warranties. The first warranty will cover a period of one year whereas the second warranty that is optional will be a care warranty for three years. The packaging of the appliances will be similar to that of other Company G products. The packaging should be attractive and tasteful
The company can use several ways to market the new product. These include premium pricing, price skimming, product line pricing, among others. However, this company will use premium pricing because the new product will be a speciality product. The product shall possess qualities deserved by the customer. Company G is lucky in that it has experts who advise the production managers in a competent way. This serves as an opportunity because the company can make use of experts to develop special items.
Distribution will be considered effectively since it is one of the “4Ps” in marketing. It is a necessary element in any marketing strategy. It helps a firm to grow and to expand revenue. A company wishing to market its products can use either one distribution channel or several distribution channels. These channels can include wholesalers, internet, direct distribution, dealer, consultant, sales agents, among others. Company G has however, decided to use direct sale of products to consumers using a team of sales men and women who have been working for the company. A few more sales people shall be hired so that they can reach the consumers all over the geographical region covered by the firm. This will be the main distribution channel.
Promotion and advertising
This is yet another marketing strategy. In fact, promotion serves as a key when it comes to the marketing mix. Before deciding on a marketing strategy, a company needs to make vital decisions concerning the customers. This includes, who, how, and what message to give to the customers. These questions are answered through market segmentation, targeting, positioning, and messaging. Since the company has already decided that the potential consumers include those people who deal with electronics, it will therefore, be easy to segment the market. Communication shall include direct communication though some advertisement shall take place through televisions and the local radio stations. The internet shall also be used because many people have access to the internet, and the target market is people who often use the internet. Finally, positioning shall involve branding of the product. Company G is lucky because it is an already branded company. Many people are aware of the firm’s existence. Introducing a new product line will therefore be an easy task. Little money shall be used in advertising activities because people already know of the company’s logo and brand (Luther, 2011).
A number of strategies such as product, pricing, distribution and promotion are recommended for Company G because it ensure quality management of the operations.
The manager plans to use tactical marketing in executing the marketing plan. These can include placing media, creation of marketing tools, generating leads, and implementing a system for follow up. Company G’s message will be delivered through creating of marketing tools and establishing a follow up system. It will be ensured that the necessary facilities and conditions are provided for the marketing plan to become viable. This will be accomplished during the first year of operation.
Company G intends to set the product in such a way that each product will be expected to reach a given target. The new product will undergo quality assurance tests for a few days. This will be accomplished during the initial production stage.
Monitoring and Controlling Marketing
Effectiveness of the marketing strategy will be seen once the target is met, or a goal is achieved. In this case, each sales person will be expected to hit a sales target. This will be checked every four months. Marketing costs a firm a lot of money and if not monitored and controlled properly, a company is likely to suffer unbearable losses leading to the closure of such a product line. In some extreme cases, a whole company can be closed. This marketing plan is expected to last for a period of three year. This timeline will ensure that all the goals are realized. Monitoring will be required because if this time exceeds, the company will have to incur extra costs, which may affect the company financially. Company G needs to include a budget estimate, which is mandatory in creating a marketing plan. The budget will be monitored annually to see whether the marketing strategy will be effective. In this world, one can only manage what he can measure. Through monitoring the marketing activities, the company aims at improving decisions made by the management.
Luther, W. M. (2011). The Marketing plan: how to prepare and implement it. London: Routledge.