Company G is a well-established firm that is highly regarded in the electronics market developing a line of top-quality small appliances. The top-quality design features and artistic elegance will attract potential buyers. Extensive testing has shown the Bar Buddy as the most reliable on the market. Company G is changing the direction of the current marketing plan to better fit the needs of their consumers and place them in a better position to achieve their full earnings potential.
The company’s designers and engineers have released they most innovative product ever, and they expect to see substantial growth once the product is released to market. The basis for this strategic marketing plan is in-depth analysis of the company’s strengths, weaknesses, opportunities and threats. Mission Statement“We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions.” The Product Company G has worked feverishly to create the most innovative bar appliance at a low price point for the company and its consumers.
Consumers will be attracted to the low cost, high quality, and convenience the Bar Buddy will bring to their homes.The Bar Buddy will revolutionize home bars across the country, allowing even the most novice owner to mix quality drinks time and time again. Key product features include: Hundreds of drink recipes to allow consumers to mix drinks like a seasoned bartender. Weighted liquid measurements ensure quality drinks each time with mixology results. More recipes can be downloaded from the website for no charge.
Tarring system to remove the weight of the drinking glass permits proper weighted measurements of liquids, ice and garnish. 3-Year warranty that allows returns or exchanges for any reason. A warranty of this type allows consumers the ease of mind that they will be satisfied. This policy matches the company’s mission statement to “improve the quality and convenience of their lives” and is far longer then the industry standard.Consumer Product ClassificationThe consumer product classification is a shopping offering, although there are many convenience offerings including the brands image, and location of purchase; price comparison, quality, and the retail outlets are left up to the consumer’s personal preference.
Target MarketCompany G will focus marketing efforts towards 21-45 year old, middle class, single and joint household consumers who enjoy quality mixed drinks and want to knock the socks off their friends and families with adult libations. Additionally, Company G will expand their marketing scopes to clubs, bars and restaurants.Competitive Situation AnalysisAnalysis of Competition using Porter’s 5 Forces Model After analyzing the competitive environment that surrounds Company G appliances and it potential to succeed, it has been discovered that there are few immediate threats, however, it is understood that the threat may increase as the product gain popularity and proves to succeed. Competitive Rivalry: The competitive landscape rivalry is marginal unless the product becomes wildly popular. Company G will compete with very few existing manufacturers.
If the existing competitors see value in modifying their products and still have an acceptable bottom line, Company G will see an increase in competitive rivalry. Threat from New Entrants: Currently there are very few manufactures that have an appliance with all the features as the Bar Buddy due to their cost to design and manufacture. Threat from Buyers: A threat from buyers is minimal as Company G is very efficient in the manufacturing process including low labor and production-line time creating very little raw material waste.Between being the lowest-cost producer in the appliance market and t strong brand awareness, Company G’s buyers continue to do business with the company.
Company G also offers comparable credit terms to their buyers which is in line with the industry. Threat from Suppliers: A threat from suppliers is somewhat unknown as Company G has excellent relationships with their current suppliers, however new raw material and purchased ready component part suppliers will need to be sourced.Once the product is in high demand it will create a higher demand of raw materials and component parts allowing the suppliers to increase their costs, seizing some of Company G’s revenue. Threat from Substitutes: A threat of substitutes is present itself once the product sales soar through the roof. If a major company is able to manufacture this product on a larger scale and reduced price then Company G, it will negatively impact or eliminate Company G’s customer base entirely.
SWOT Analysis In this first paragraph, please introduce the SWOT analysis. For more information, see the recommended text. This section is laid out to summarize the analysis in a table, and is then followed by more detailed explanations of each item. Please see specific instructions in the four sections below the table.•Company wide commitment to provide consumers with high-quality and convenient appliances* •Brand and logo readily recognized by consumers •Labor & production efficiencies result in little raw material waste keeping the costs minimalWeaknesses •Need to source new suppliers for raw materials •New suppliers for 2 component parts that will need to be purchased ready for assembly • New marketing approachOpportunities • Extensive testing showed the product to be the most reliable on the market • The small front end investment allows for a largerStrengths – (need 2 cores) Company G has a commitment to provide consumers with high-quality and convenienve appliances.
This is a core competency. Company G’s brand and logo are readily recognized by most categories of electronics product consumers. This coupled with their mission to produce quality products will help with their marketing strategies. The efficiency of labor and production results in little raw material waste, keeping the cost to a minimum is a core competency.WeaknessesThe new product will require different raw material.
This will require Company G to source new suppliers for this new raw material need. Company G does not have a current relationship with these potential suppliers and do not know how the costs and delivery times will impact the production of the new appliance. The component parts needed for the new product need to be purchased ready for assembly. This requirement will require Company G to source a new supplier and will depend on them to meet the deadlines for production.
Company G is changing the course of their current marketing plan. The profits depend on this new marketing plan reaching the correct consumers.OpportunitiesExtensive testing has shown the product to be the most reliable on the market. This will give the consumers the ease of mind that the Bar Buddy will be their go to drink mixer for many years to come.
The small front-end investment allows for a large return on investment. Company G can price the new appliance at a lower than industry standard and make a good profit on each sale. The artistic design features are very appealing to consumers; they will keep this appliance on their counter / bar and not hide it in a cupboard. Potential consumers will be drawn to its appealing features over the competition.ThreatsThe new supplier relationships could result in the suppliers increasing the wholesale cost of raw material and component parts to seize some of the profit as the product gains popularity and success.
As the Bar Buddy succeeds, larger-scale production companies may try to build the appliance cheaper and in larger numbers than Company G is capable of. Consumers may not embrace the Bar Buddy, and continue to use tradition methods of mixing drinks. They may not be influenced to spend money on the appliance when they have cocktail recipe books, shakers, and shot glasses.Market ObjectivesProduct Objective Company G is committed to producing top-quality small appliances.
This commitment includes product improvement that will be based on its consumers’ needs/wants. Company G will create an objective to examine its consumers’ needs and wants and establish ways to improve and enhance this product including, size, design, and functionality. In addition, Company G will set benchmarks to measure response times to consumer inquiries to maintain its superior quality and top-notch customer service. Meetings will be held quarterly for the next 3 years to ensure the company is focusing its resources on what matters most to their consumers.Price ObjectiveTo remain competitive, Company G will analyze the budgets, and or salaries of its consumers and align its price with that along with the current industry rate quarterly for the next 3 years. Pricing should be sound enough to prevent consumers from purchasing a product of lesser quality.
Place ObjectiveCompany G will develop business plans that target retailers, big box stores, wholesale restaurant and bar suppliers and on-line retailers. The objective is to make this product available to as many potential buyers as possible. Having the product everywhere consumers shop will prove convenient and stress free for them in addition to being financially sound for the company. It is important to analyze the number of purchases made in each store, as well as their purchase price to determine whether or not the distribution relationship should be continued or if the company should consider another store. Company G will review sales data quarterly and annually for the next 3 years.
Promotion ObjectiveThe Bar Buddy will be advertised in many areas including inserts in magazines, newspapers and industry publications. To show the appreciation to their consumers and encourage them to purchase again, Company G will exploit the power of discounts, gift cards and referral rewards. The objective is to generate sales of $500,000 for the first year and a 25% growth rate for the 2nd and 3rd year.Marketing StrategiesThere is an executive consensus that following the marketing strategies will serve as the perfect mix to achieve the aforementioned objectives. Each strategy not only ensures that we are providing premium service to consumers, but ensures that we adhere to the company’s mission. To deliver on our promise of product improvement and innovative solutions, we must measure the product’s effectiveness, quality and longevity.
In addition, we must ensure that our prices are competitive and the product can be easily located for consumers’ convenience. Finally, promotional efforts must reflect the high-quality and innovative design our mission speaks to. These strategies must adhere to this for optimal results to align with the company objectives.
