3-Year Marketing Plan
Table of Contents
Introduction Company G has an established reputation for quality electronics. We have developed a high end line of small appliances that are poised to eclipse our competitors in terms of price per units. Through testing and evaluation, our products are the most durable and they have a broad customer appeal for their aesthetics. The first item from our product line to roll out is a professional grade blender. This marketing plan will outline how this company will position itself for maximum profit while enhancing the company’s image as an environmentally conscious but high quality and luxury producing.
Mission Statement “We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.”
Form and function have been combined to create the highest quality blender of all of our competitors while being the leader in design of aesthetically pleasing appliance. This innovation results in very little raw waste. This further enables us to have the lowest cost per unit of production. The innovation has created a durable blender that is more reliable than our competitors. All these factors support the mission statement of improving customer quality. The design of the blender has been well reviewed in focus groups and each appliance is pleasing to touch and view.
Consumer Product Classification Given the mandate for a “clean slate” regarding the marketing of these appliances, the initial assumption that they would be classified as convenience products has been revised. These appliances will be marketed as specialty products. We will market these products through short distribution channels, limiting the locations of purchase and enhance exclusivity through price and promotion.
Target Market This is a high end product with two target markets. The “professional chef” that wants top quality in the kitchen. These will be the opinion leaders. Second market is the high end household that requires the top of the line items but realistically only cares about the brand and the aesthetics. Think Martha Stewart watcher. Average target household income will be above one hundred thousand. They will be educated but not necessarily at the professional level. They will entertain often, and subscribe to or watch entertainment, food, urban living and design magazines or shows.
Analysis of Competition using Porter’s 5 Forces Model
Competitive Rivalry There are currently seven brand competitors with only two who have positioned themselves as high quality and high cost. These two will be our immediate competitors. Given our “green” marketability, distinctive styling, and highest quality we are well positioned to distinguish ourselves from them.
Threat from New Entrants There is very low probability that there is anyone poised to the market as a new manufacturer. If by chance someone does enter as we are, it is unlikely that that they will be able to position their line of appliances to the same level that we are. We are poised to deflect and new threat by marketing our appliances in a B2C format.
Threat from Buyers The B2C format for the internet combined with sales in only a few stores will mitigate and demand for discounts. The current plan to sell only in Nordstrom, Macy, and Dillard’s department stores will make the product “exclusive”. The price will be within ten percent of direct or store purchased.
Threat from Suppliers: Company G needs to establish new suppliers for raw material to support the small appliance line. It will also need new suppliers for two component parts that will be purchased ready for assembly into some of the small appliances. This must be resolved as soon as possible. The internet allows for the company to mitigate the raw material threat as it allows for a work wide list of suppliers. The search for component suppliers is similar but the search is more cautious and