Company G 1-Year Marketing Plan
Company G ventures in the electronic industry, and its main product line comprises small appliances. The company’s mission is to enable its customers to boost the quality and convenience of their lives by offering superior and innovative electronic solutions. As a leader in all things small appliances, the company has done it again with its new GCM-2022 2-way programmable coffee maker. The GCM-2022 is a brilliant addition to the company’s coffee maker range that will play a key role in enhancing the brand’s equity in the small appliances market – especially in the coffee makers category. The following marketing plan illustrates Company G’s attention to the new product that aims to maximize its market share in the competitive small appliances market.
Product Description and Classification
Company G Mission Statement:
“We enable consumers to improve their lives’ quality and convenience by providing high-quality, innovative electronics solutions.”
The GCM-2022 2-way programmable coffee maker is uniquely designed to offer the best customer experience. We believe in optimizing customer experience through quality, efficiency, and convenience. Company G invests strategically in innovation to guarantee continuous product development, focusing mainly on emerging technology innovation and quality to boost its competitive position in the industry. The company engineers have developed a new line of coffee makers, the GCM-2022, which is believed to promote customer experience and offer quality appliances and convenience while allowing cost-saving. The GCM-2022 provides an advanced approach to meet the brewing needs of different people across the globe.
Depending on consumer requirements, the product can brew just one cup or a whole pot of up to 12 cups. Additionally, the consumer can program the GCM-2022 to prepare coffee for hassle-free mornings in advance. The product allows users to determine the strength of their brew based on preferences with the select-a-brew feature. The company employs an efficient production system and extensive product testing to ensure that its products have the best quality. Additionally, Company G’s distribution system allows customers to access the GCM-2022 more efficiently. An efficient production system allows the company to adopt a low-cost strategy, enabling it to implement a flexible pricing strategy – critical in enhancing brand equity. Besides, higher efficiency in production results in improved environmental friendliness of its products, creating an excellent relationship with customers.
Consumer Product Classification
The GCM-2022 falls under the shopping products category under the three-way classification system. Shopping products are highly competitive and visible. Consumers often search for and compare the product based on cost, quality, and value. Therefore, when looking to buy the GCM-2022, consumers will find it essential to compare the product with similar products and brands. The GCM-2022 has unique features and offers 12 months plus one manufacturer’s warranty with an easy-to-use manual and additional customer support.
The GCM-2022 has a unique design to serve the specific purpose of making a single cup or a batch of coffee. The coffee maker meets the primary consumer need designed to address and improves the quality of their lives by saving time and money. Besides, the company uses a combination of small front-end investment and efficiency to ensure that the product remains ecologically friendly. Easy-to-use features and greater flexibility are other attributes of the GCM-2022 that improve customer experience.
The GCM-2022 is a must-have coffee-maker in every home and small business. Company G’s GCM-2022 coffee maker’s target market comprises coffee lovers of all ages from different demographics. In particular, GCM-2022 vital buyers will be individuals between 24-60 years of age who are actively involved in education and work-related activities. With the 12-cup capacity, the product will also be attractive to hotels, start-ups, and small-sized businesses. As an electronic enterprise, Company G has a unique market segmentation technique that considers the target market’s various demographic and psychographic characteristics. The company targets middle and high-income earners as the main customers.
However, its low-cost strategy also allows it to reach the low-income category. The company’s product is not gendered selective as it is designed for both male and female consumers. Regarding psychographic segmentation, Company G considers its customers’ lifestyle and social status when developing its marketing strategies. For example, the company has a flexible pricing plan to enable it to target different customers.
Competitive Situation Analysis
Competitive Rivalry: The small appliance industry is characterized by intense rivalry as new firms can join the market to offer a substitute and low-priced products. Company G’s products face significant rivalry from such brands as Whirlpool, Miele, Smeg, Samsung, and Siemens. These companies have well-established markets and a strong base of loyal customers. Thus, Company G must adopt a strategic marketing plan and invest heavily in research and development due to solid competitive rivalry.
Potential New Entrants: The threat of new entrants is low in the electronic industry. New firms joining the sector would prefer to offer complementary products due to the required initial capital. However, through innovation, the cost of producing small appliance products is reduced while profitability increases, attracting more competitors in the industry.
Bargaining Power of Buyers: Buyer power is relatively high. Typically, buyers can bargain for low prices and discounts when they have adequate information regarding the market. Due to advancements in marketing, it is no longer possible for firms to take advantage of buyers’ limited information about products to charge higher prices. Firms in the small appliance industry use diverse advertising methods, and customers can access their websites and inquire about fees. Subsequently, firms are compelled to offer competitive prices to retain their customers.
Bargaining Power of Suppliers:
Supplier power entails the ability of suppliers to influence a firm’s pricing decisions. Typically, the bargaining power of suppliers increases when there is a small network of vendors for a particular component or input. Companies in the small appliance industry, including Company G, can source their raw materials and parts from different suppliers. As a result, supplier power is considerably reduced.
Substitutes: Technological advancement is increasingly supporting the power of firms to produce replacements for various products, especially in the small appliance industry. Due to intellectual property law, it has not been possible to substitute the existing products. However, new firms are not prohibited from producing cheaper alternatives. Low-income customers usually prefer products that allow them to save costs. Thus, the production of more affordable options poses a considerable threat to the company.
|STRENGTHS Reliable suppliersStrong brand portfolioLow debt to equity ratio||WEAKNESSES Fluctuating revenueWeak organizational structure Expensive products|
|OPPORTUNITIES Emerging marketsNew technologyLaunch of new products||THREATS Heavy competitionLabor shortageRising cost of raw materials|
Company G enjoys excellent relationships with the current suppliers. A strong base for raw materials enables the company to increase its value and stability. With a reliable supply chain, the company can improve its operations and reap benefits for high business growth. Having a reliable raw material supplier will overcome shortages in the supply chain. It is the core strength of the company.
Strong brand portfolio
Company G has invested in building its strong brand portfolio in the market. Introducing new products into the market will be easy due to its strong brand portfolio. It will benefit the company as its resources will be evenly distributed into the market, eliminating any confusion or inefficiency. A strong brand portfolio is critical in maintaining and expanding the company’s market share.
Wide range of products
Investment into a wide range of products by the company will help build new revenue and diversify the business risks in its market. The variations of creations will enhance the brand’s equity by attracting different market segments and, therefore, more sales revenue and more customer base.
The company’s fluctuating revenue is a result of poor financial planning. Its low debt-to-equity ratio indicates a lower amount of financing from lenders. High debt–to–equity is essential to business growth, and it is also risky if the debts are too high. But high debt ratio shows the company is getting more finance from lenders. The business should receive more finance from potential lenders with a high credit rating. Additionally, fluctuating revenue stems from the variances in operational costs, raw materials costs, and product handling.
Weak organizational structure
A company’s organizational structure is weak as it is only compatible with the present business model. It has not been able to handle the challenge presented by the new entrants, thus leading to the loss of its market share. Good organizational structure is the core weakness of Company G. an excellent corporate structure ensures the company is adjacent to the changing business environment.
Products manufactured by the company should be affordable to customers. High research and development costs spent on technology result in increased production costs thus high prices of its commodities. Price and quality are inseparable. Therefore, consumers will not spend on low-quality but expensive products. However, Consumers look for high-value products at an affordable price.
In addition to providing new products, the company has also vested in the production of top-quality small appliances which are very appealing to customers. As a result, there is demand for the company’s new products in the new emerging market.
Investing in new technology will help the company produce top-quality appliances with quality and artistic elegance. These new appliances are already leaving a distinct impression on potential customers. It is the core opportunity for the company to strategize itself in the market as the latest technology allows the company to set its pricing strategy for its products and services.
Launch of New Products
The launching of top-quality small appliances is already the company’s core objective. It will enable the company to expand its customer base and maintain the current customers with top-quality products while diversifying its product range.
The company faces heavy competition from companies that produce similar products and services. Each of the competitors has its business strategies in the market. If the company cannot keep up with the emerging innovation, it will be pushed aside by other companies.
The company requires a highly skilled workforce in the production of its appliances. If the company faces a labor shortage, it will represent a threat to the steady growth of its returns. Lack of highly skilled labor remains the core threat to the company’s growth. Training of new workforce is expensive. Therefore, investing in a new capable labor force is essential for rising growth.
The Rising Cost of Raw Materials
Raw materials are essential in the production of quality products. The company will need to maintain the rising cost to produce quality products. Therefore, the increasing cost of raw materials is a threat to the company’s returns.
To deliver a highly unique, efficient, convenient, customer-oriented, and environmentally friendly product that satisfies over 80% sustainability requirement by 2025.
To provide highly affordable, cost-effective, and 20% price flexibility that ensures appropriate profit margins irrespective of changes to operating costs and efficiency standards and regulations by 2023.
To combine intensive, exclusive, and e-commerce distribution strategies to maximize product accessibility and reduces product handling cost by 3% annually to allow customers to enjoy reasonable prices by the end of 2022.
To adopt an advertising plan to increase sales revenue by 25% by 2023.
Marketing Strategies and Implementation
- Low cost- Company G integrates efficiency
mechanisms into its production model, which enable it to create the best
product for low prices.
- Differentiation- One of Company G’s product characteristics is uniqueness, which distinguishes it from its competitors’ products.
- The quality strategy will allow Company G to attract and retain customers despite the stiff rivalry in the electronic industry. The ability to deliver superior products consistently will enable the company to maintain and improve its market share.
- Value pricing- Company G will adopt the value
pricing strategy that provides a highly affordable price for the new product.
This strategy sets a price that appeals to the consumers based on the product’s
perception of the benefit, quality, and importance. Additionally, this approach
will facilitate the cost-effectiveness perceived by consumers. This aspect
stems from consumers paying for value without more than expected.
- Market penetration pricing- This pricing strategy helps penetrate new markets. Due to stiff market rivalry, Company G must continuously explore new markets. One of the most effective ways of entering these markets is by adjusting its prices below its competitors.
- Cost-plus pricing- the company must maintain the desired profit margin to avoid financial losses and sustain its operations. This pricing strategy entails adding the target profit margin to the marginal cost to maintain the average profit level, facilitating the 20% price flexibility.
- Intensive distribution- Company G will apply
the intensive distribution strategy to sell its products to big stores to
improve customer access.
- Exclusive distribution- The company will adopt a complete distribution strategy in specific market segments, which entails using a single outlet.
- E-commerce- due to advancements in technology, the adoption of online distribution is inevitable. Company G’s customers will be allowed to make online orders, which will increase their shopping flexibility and convenience.
- Advertising- the company will invest
intensively in social media advertising to boost the effectiveness of its
- Sales promotion- Company G will stimulate the demand for its products by periodically offering attractive discounts to its customers.
- Public relations- adopting PR strategies allows firms to implement a strategic marketing communication plan that promotes their relations with the public. Thus, Company G will be able to utilize public opinion to tailor its products in line with the overall market demand.
Explanation of Strategies
Combining the above strategies will boost Company G’s marketing effectiveness in diverse ways. For example, the company can use these strategies to design a marketing mix that strategically addresses its vital marketing challenges. In this case, the company will consider combining price strategies with sales and distribution strategies to establish a strategic plan that boosts sales and reduces marketing expenses, leading to profit optimization. Developing highly unique, efficient, convenient, environmentally friendly, quality, and low-cost products and differentiating the coffee maker product line increases the brand equity by raising awareness and association of Company G’s new product.
Pricing strategies are critical in allowing the product to penetrate the market through competitive and value-based prices while ensuring the target profit margin. These strategies aim to achieve quality leadership, face the current industry competition, and win customers. Furthermore, combining intensive, exclusive, and e-commerce distribution strategies will maximize product accessibility. Lastly, the promotion strategies are critical as they facilitate brand awareness and increase interest in the company and the new product. This way, Company G will be better equipped to achieve its objectives.
Product Action Plan
|Tactic||Due Date||Responsible Party|
|Explore the most effective cost reduction approaches||12/4/2022||Marketing Manager|
|Design a differentiation method||20/4/2022||Marketing Manager|
|Establish a quality control tool||26/3/2022||Quality Control Manager|
Price Action Plan
|Tactic||Due Date||Responsible Party|
|Design premium pricing||1/4/2022||Sales Manager|
|Create a segmentation approach||12/4/2022||Marketing Manager|
|Evaluate production costs||14/4/2022||Production manager|
Place Action Plan
|Tactic||Due Date||Responsible Party|
|Assess distribution option||25/4/2022||Supply Manager|
|Create a supply chain strategy||2/5/2022||Supply Manager|
|Integrate e-commerce into distribution strategy||11/5/2022||IT and Supply Managers|
Promotion Action Plan
|Tactic||Due Date||Responsible Party|
|Create a social media strategy||18/5/2022||Marketing and IT Managers|
|Assess sales plan||30/5/2022||Marketing Manager|
|Design PR strategy||4/6/2022||Sales and Marketing Managers|
|Monitoring Activity||Due Date/Frequency||Responsible Party|
|Sales assessment||Weekly||Marketing and Sales Manager|
|Financial impact assessment||Monthly||Finance Manager|
|Customer satisfaction analysis||Weekly||Customer Relationship Manager|
|Product’s compliance with standards analysis||Monthly||Quality Control Manager|