3-Year Marketing Plan Essay Example for Free

3-Year Marketing Plan Essay Introduction In order that we continue our company’s financial growth, we need to branch out into new product lines. A study was performed to consider our entrance into the pet supply market. We have developed a new single product for that purpose. It is a Cordless Automatic Nail Trimmer for dogs and cats. The findings of this study are in this presentation. Our numbers are conservative. The potential for success is high. We are Company G are always looking forward to find and implement new lines that will complement our Mission statement, and our bottom line. This is our next opportunity introduces Company G and the product or product line that you are writing this marketing plan about. Mission Statement â€Å"We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.† See more:  Masters of Satire: John Dryden and Jonathan Swift Essay Product Description and Classification The Cordless Automatic Nail Trimmer for Dogs and cats will be our first entry into the world of pets. This product uses a sensor to find the quick (the bundle of nerves and blood vessels) on a pets nail, then adjusts to a spot just below it. It trims the nail, rotates to the next nail, and repeats the process, until trimming each nail on the paw. Simply remove the paw, and continue on each paw until done. Our trimmer will avoid the pain of cutting the quick with bleeding. It will not cause discomfort for the animal associated heat build up from electric nail trimmers. This product will allow anyone from novice to professional to trim a dog or cats nails to perfection. Rather than making an appointment, going to the local pet groomer, paying $7 to $25 (before tip), or big box, a pet owner can trim their pet’s nails at home. If the owner would rather have the nails done, they can have their groomer use our tool, giving the pet owner peace of mind, knowing their pet will not suff er any pain. Consumer Product Classification Consumer Factors Planning time involved in purchase Purchase frequency Importance of convenient location Comparison of price and quality Considerable Infrequent Important Considerable Shopping Products Specialty Products Shopping Products Shopping Products Marketing Mix Factors Price Importance of seller’s image Distribution channel length Number of sales outlets Promotion Relatively high Very important Relatively short Few Personal selling and advertising by producer and seller Shopping Products Shopping Products Shopping Products Shopping Products Shopping Products Target Market The target market is between the ages of 30 and 45 with busy lives, looking to save time and money. Their incomes would be greater than $60K. This will include professionals, as well as working couples. We will target both existing dog or cat owners, as well as new entrants to pet ownership. Competitive Situation Analysis Analysis of Competition using Porter’s 5 Forces Model Competitive Rivalry Today are no direct competitors. We are entering an existing market, with a completely new technology. The closet rivalry is the electric trimmer, produced by Dremel Tools and Oster Company. These products do NOT have the features we have. They do not compare in experience. There is no threat at this time. Threat from New Entrants We have the threat from two outside entrants to create a knock off version of our automatic nail trimmer. The two companies that could attempt to enter the market are Dremel Tools and Oster Company. The threat to us is medium for a few reasons. We will patent our trimmer, which means that they will have to start with our product, and then develop modifications, to avoid patent infringement. Both companies’ current products use a different kind of technology. They are grinders and do not have any quick detection apparatus’. While Dremel Tools has been in the pet trimming market for some time, they only modified the grinder used for woodworking and other craft projects. This would be a departure from their core competency. This is the only venture by Oster Company. They a relatively new to the market, It isn’t likely that they will put more R and D dollars into a second pet product at this time. Threat from Buyers There is no threat to us from buyers. Pets must have their nails trimmed on a regular basis, or they can suffer pain and / or health issue. The owners of these pets are responsible to maintain their pets’ nails. With the addition of our safe, reliable, easy to use product added to the market, buyers have all of the options they could want. At our price point, they would not consider creating a similar product. It is an infrequent purchase for them. We will also establish a blog site to give our customers an opportunity to help us determine if they desire any additional features. Threat from Suppliers There is very little threat to us from our two suppliers. Vendor A is supplying us with the heat-sensing component to our trimmer. The device they are producing for us helps to expand their bottom end line of heat sensors. This represents a 10 percent addition to their offering. The main customers for Vendor A is the Armed forces, who buy heat sensing devices for airplanes, tanks, and vision goggles for ground troops. They do not have the infrastructure to build a product such as ours. They would not take on the capital expense to enter this type of manufacturing. They do not have any retail, on-line, distribution experience, or presence. Vendor B who supplies us with the stainless steel blades are in a similar situation. Their main customer is the medical, surgical industry. Vendor B manufacturers high end surgical blades, knives, as well as blades for men’s razor blades. Our product represents a new product in between in quality. It is not significant enough for Vendor B to start an entirely new type of product for them Threat from Substitutes In the current market, there are threats from substitutes.  People not using our product can use manual nail clippers, grinders, or pay someone else to trim their pets’ nails. The threat to us does not exist. All pet owners are currently using one of these venues today. With the quality, ease of use, time and money savings, and cruelty free aspect of our trimmer, virtually nobody will revert to these substitutes. SWOT Analysis Before we risk our profits or our brand value, we took a critical look both internally, and externally. The intent is to consider how we can leverage the positives, improve on our weaknesses and prepare for outside threats. Here are the findings. STRENGTHS *indicates core competency Financial health* Efficient manufacturing Brand Reputation* WEAKNESSES Lack of training Lack of Distribution network Never advertised pet products OPPORTUNITIES Pet ownership on steady rise Personal time on decrease Economy is increasing expendable income THREATS Possible newer technology Economic downturn Heat sensor supply issue Strengths Financial health is one of our core competencies. We have a very low debt-to-equity ratio, combined with a credit rating. This gives us the flexibility to create initial inventory and cover the typical start-up costs related to a new product line. Brand reputation, another core competency, means that we are already in the homes of many of our targeted customers. They know we produce high quality, well designed, products. Our brand is a trusted name nationally. Efficient manufacturing is another of our strengths. It allows up to produce our goods at a lower total cost compared with competitors. We run our production lines quickly, with little waste, or re-work. This helps for reliable batch production, and very few quality / defects issues in the field. Weaknesses Lack of training for our production line associates is a potential issue. Production will be slower, risks quality compliance, and will cost more per unit compared to our established lines. Lack of advertising relationships within the pet market is another weakness. We do not advertise at all aimed at pet owners. We do not understand what the costs are, compared to our other product lines. We will not be able to bundle the new lines advertising with our other lines, for a volume discount. Our sales force is not equipped to demonstrate our new product line. We will need to higher trainers, and new sales people that are specialists specific to the new line. Opportunities The economy is on an upward trend. As wages increase, so does expendable  income. This allows people to purchase pets, supplies, and services. This applies for either new or existing pets in the household. Personal time is on the decrease. Wage earners are spending more time working. Parents are spending more time driving their school-aged children to sports, music lessons, and dance classes, etc. These parents will also attend the events surrounding the activities. Taking Fido to the groomer and picking him up later is another time eater. Being able to trim nails effortlessly, in your own home, on your own schedule has a good deal of appeal. Pet ownership is on the rise. In 2013, there were 82.5 million pet owners in the United States. This number is expected to rise to 92 million by 2018. In 2013 $4.4 billion dollars were spend on grooming and boarding. In 2014 sales rose to $4.7 billion, a 7% increase. This is a growth industry. Threats Economic downturn could become a possible threat. As expendable income dwindles, pet owners could potentially purchase less expensive nail trimmers. They could also choose to go to a groomer, but do so less often as a money saver. A supply issue could threaten our ability to produce our product. A shortage of the heat sensors could become an issue. If our vendor chooses to increase the price of the sensors could become an issue as well, reducing our margin to an unacceptable level. Development of a newer technology is a threat. A competitor, on a new company could start making the next generation of automatic trimmers. Dependent on the features, or price, we could lose market share. Market Objectives Product Objective Sell 100K units by 12/31/2016. Price Objective Achieve a profit of $500K by 12/31/2016. Place Objective Have our product on the shelves of 2 national chains, and in 200 independent retail pet supply stores by 9/15/2015. Have an on-line presence by 9/1/2015. Promotion Objective Our objective is to have 250K hits on you-tube demonstration by 1/1/2016 and 100K hits on our website specific to the new product line by 6/1/2016. Marketing Strategies This section will introduce you to the particular strategies, which will assure that we achieve our objectives. You will find them well thought out and comprehensive. We took the necessary time to be confident that they are inter-related and logical, using previous tactics which have been successful here at Company G. Product Strategies Packaging – use our trusted XG logo and recognized style of packaging. Great Warranty – offering a two-year warranty, this is better than current electric trimmers in the market. This is in line with our warranty for other product lines in our assortment. Dedicated Help Line – have a 24/7 help line specific to this product line. It will give advice, answer questions, and take care of issues that arise for customers. Price Strategies Market Pricing Skimming pricing of $89.99. Good Terms – we will give 2% net 30 days pricing to our distributers. Advertising Allowances – $5 per unit sold for preapproved advertising campaigns. We will require proof of sales and give credit within 30 days of campaign end date/ Place Strategies Retail Stores – 2 National chain stores and 200 local pet stores based on their sales. Web presence – We will sell through Amazon.com, as well as on our web site. Quick shipping – We are going to use Amazon’s distribution Centers to ship to retail stores and directly to customers. This will be the most efficient use of our finished goods inventory. Promotion Strategies Personal selling – We will provide demonstrations at dog shows. Social media – We will have a You-tube presence, and a Face book presence. Discount / Donation – We will give customers a $5 discount and donate $5 to the Humane Society for the first 50K units sold. Explanation of Strategies These strategies are a combination of approaches. We are going to use our strong brand name and recognition to take advantage to the consumers’ trust.  If they compare our product to Dremel or Oster’s trimmer, they will see we give them a superior warranty. We will get our product in front of millions of potential customers at dog shows. There are dog shows of various types happening every week across the United States. The retailers that we target will get good financial terms, along with our strong brand name. Our you-tube presentation will prove to customers just how easy and safe our trimmer is. We will also appeal to the good nature of pet owners will our donation to the Humane Society. Tactics and Action Plan In order to assure our success we need to put specific tactics in place. They need a due date and responsible party, so anyone in the process can see if we are adhering to our timeline. We know whom to ask about any given tactic as well.