feasible marketing plan for Speaker Labs
Executive Summary
This report proposes a feasible marketing plan to help Speaker Labs to achieve the marketing goal of one million Canadian dollars in annual revenue in 2020. Speaker Lab is a Canadian consulting, public speaking, and training company based in Toronto. It was established by Eric Silverberg and Eli Gladstone in 2016. Although the company’s marketing target is ambitious, during the company’s first year, the sales stood at one thousand Canadian dollars, to five thousand Canadian dollars in the second year. Based on the company’s progress since its inception, the sale goal is achievable. Gladstone and Silverberg are the only two employees at the company. Although they can keep the operating costs low, the two employees have to perform every task at the company. The firm has limited capabilities and a weak financial position which have limited the company’s growth and development. Speaker Labs operates in a multicultural city with a population of 6.4 million people. Toronto is considered a business hub with a growing technology start-up industry and a highly respected financial services sector. Competition analysis of Speaker Labs suggests that three major international companies offer an intense competition against Speaker Labs. Despite being the first company to be established in Toronto, the lack of exposure has contributed to the slow sales due to fewer number of individuals and corporate clients signing up for training classes. For Speaker Labs to strengthen its market position, and increase sales, the company needs to undertake alternative promotions on platforms such as Google, LinkedIn, and Facebook.
Introduction/ The Marketing Challenge
Eli Gladstone and Eric Silverberg created Speakers Lab because they discovered public speaking was a critical skill required by individuals are corporates. They combined their passion for presenting to audiences and teaching to establish Speaker Labs. They are seeking to generate an estimated one million Canadian dollars annually by the end of 2019. Currently, 90 per cent of their sales comes from customers. Most of the company’s customers come from highly satisfied customers referring their colleagues, family, and friends. Speaker Labs has been tracking customers satisfaction through the use of the survey. Before each public speaking season, individuals complete a questionnaire regarding their public speaking skills and their expectations. After they have completed their training, they undertake another survey providing feedback about the training and their level of satisfaction. Speaker Labs’ current post-session survey score stands at 9.2 out of 10 (Brooks, 2019). Gladstone and Silverberg state that they want to improve their average by 0.4 to a total of 9.6. To achieve the firm’s goal, the co-founders have decided to increase their market reach by using alternative promotions, online classes, and new workshops. The following sections will examine Speaker Labs’ corporate capabilities, competitors, target market, and consumers. After that, Silverberg and Gladstone will be advised on how they can enhance their business practices, products, and marketing strategies to achieve the company’s goal. Don't use plagiarised sources.Get your custom essay just from $11/page
Corporate Capabilities
Finance
Speakers Lab is relatively new to the personal development training industry. During the first year of operation, the company achieve a total sale of one hundred thousand Canadian dollars. In the following year, the sales increased to five hundred thousand Canadian dollars. The company’s funding is quite minimal, which makes it difficult for a lot of money to be allocated to marketing purposes. Therefore, it implies that Gladstone and Silverberg are not able to pursue several marketing options at the same time. Also, the company’s low administrative costs and increase to more paying customers will improve Speaker Labs’ financial position.
Marketing
Speaker Labs targets both corporate and individual clients. In the early stages of the business, Gladstone and Silverberg developed relationships with several companies which enabled them to attract several customers. Also, when they co-founded Speaker Labs, Toronto’s start-up culture prioritized investments in employee development and education. The start-up culture coincided with what Speaker Labs was offering corporate clients. According to Brooks (2019), 70 per cent of the company’s clients comprised of different corporates. Through referrals, Speaker labs were able to gain access to more clients. Gladstone and Silverberg were planning to grow the firm’s sale by including clients from law firms and the financial sector.
Operations
Speaker Labs’ primary program is a two-day group workshop for corporates. During the two-day workshop, the co-founders can cover content and coach trainees through in-person experience. Speaker Labs has four labs focusing on mindset, visuals, delivery, and content. Over two days, each lab is covered extensively. Gladstone and Silverberg provide clients with an interactive and dynamic experience during the workshops.
Human Resources
Eli Gladstone and Eric Silverberg established speaker Labs, and they are the only two employees in the company. Both Gladstone and Silverberg perform different responsibilities that enable them to manage their company effectively. Rather than establish specific duties and roles. They choose to work on the priority for the week. Silverberg and Gladstone have worked in different business sectors, industries, and performed different jobs. Moreover, they began their careers, giving lectures in the pre-business department by the Ivey Business School in Ontario. Together, they have the necessary skills and experience to operate Speaker Labs.
Market Opportunities and Actionable Business Ideas
Economic
Speaker Labs is established in Toronto, the fourth largest city in North America. Toronto has a population of 6.4 million individuals and is the largest city in Canada. Considered one of the top ten most livable cities on earth, Toronto is a business hub for financial institutions and technology start-ups. There are four colleges and five universities located within Toronto and several others located around the city. Canadian companies are willing to invest in personal development and experience. Speaker Labs charge 1,495 for a corporate workshop comprising of fifteen to twenty participants. For every participant, Speaker Labs provide a book for fifteen Canadian dollars and five Canadian dollars for supplies. Every individual who attends a two-day Speaker Labs workshop costs an estimated one hundred Canadian dollars for each person. Gladstone and Silverberg state that sixty-five per cent of all Speaker Labs sales are generated from the workshops provided by the company. Speaker Labs offer public sessions costs as much as private workshops with an additional two hundred and fifty Canadian dollars for catering and nine hundred and fifty Canadian dollars to pay for rental room costs.
Social
The business world is changing, with technological advancements, there is a need for individuals and corporates to enhance soft skills. Speaker Labs provides individuals and corporate employees with services that improve their communication skills and leadership. There has been an increase in the number of individuals and companies offering self-improvement programs. Companies that provide similar services like Speaker Lab have a large group of clients.
Competitive Analysis
Toastmasters International
The non-profit organization Toastmasters International was established in 1924. Members of the organization are provided with opportunities, training, and services that help hone their leadership, communication, and public speaking skills. According to Brooks (2019), the organization has an estimated 352,000 individuals in 141 different countries across the world. The organization’s model is based on various Toastmasters clubs that operate independently in different locations under the Toastmasters International banner. The multiple clubs operate separate meetings but are guided by a general structure outlined by the international entity. During the session, members volunteer to deliver prepared impromptu speeches and then receive constructive feedback from the other members of the society. Individuals who want to join the organization have to pay an initial feel of $20, and then they are charged an estimated by $60 by the international body (Brooks, 2019). During the meetings, members are charged an estimated five dollars to ten dollars which goes towards the maintenance of the club. Unlike Speaker Labs, Toastmasters is more affordable.
The Second City
The Second City is an improvisational comedy theatre company that has clubs in Los Angeles, Toronto, and Chicago. It was established to form as a launching point for comedians. The Second City is a place where comedians learn to perform and develop personal skills. The Second City has a second segment known as the Second City Works that provides corporates with workshops focusing on effective communication. Individuals have to take three hours every week for the two-month public communication classes, which cost $320. The other courses offered by the Second City combines practice and group classes, as well as strategy building and one-on-one feedback. Compared to Speaker Labs, the Second City is considered to be more fun and exciting.
Dale Carnegie
Dale Carnegie crafted the training courses offered by the Dale Carnegie institute in the 20th century. Over time, the Dale Carnegie brand expanded across the world, eventually becoming a leading name in self-improvement and personal development. Dale Carnegie’s business model focuses on providing training on customer service strategies, public speaking, presentation skills, and effective sale techniques. Individuals can choose to take the training in person or do it remotely over the internet. The organization provides services for both corporates and individuals.
Digital Public Speaking Services
Digital companies such as Ummo and Virtual Speech provide coaching for companies and individuals over the internet. Unlike companies like Speaker Labs, Toastmaster International, the Second City, and Dale Carnegie, Ummo and Virtual Speech provide tutorials and coaching over the internet. The digital companies provide users with a platform where they sign in. As subscribers, the users get access to coaching information and practices that are meant to strengthen their communication skills and confidence. Most digital service platforms do not have physical offices where individuals can access to be trained or interact with other individuals in the training program.
Customer Analysis
Corporate Clients
Speaker Labs’ main client base was corporate clients. Both Gladstone and Silverberg has a background in business, and they understood the value of effective idea presentation and communication. The co-founders were targeting small and large business entities that have employees who need to enhance their communication, leadership, and presentation skills. Speaker Labs initially targeted companies in the technology start-up sector before providing services for well-established companies interested in providing their employees with soft skills, and they need to facilitate productive interaction within the system.
Individual Clients
Speaker Labs provides individuals with training opportunities to enhance their professional development. Just like corporate clients, individuals who sign up for Speaker Labs training courses want to gain or improve skills that will advance their careers. The individuals who seek Speaker Labs services come from different industries, but their objective is the same. They were to become better communicators and better professionals.
Target Market Selection
An external and internal market analysis of Speaker Labs, it is recommended that Speaker Labs target market should be young professionals and corporations. By providing training for employees in different corporations, Speaker Labs can facilitate progressive changes in various industries. Gladstone and Silverberg began by offering services to start-up companies; after that, they were targeting law firms and financial institutions. Other corporations that can benefit from Speaker Labs services include University institutions and government entities. Another target market would be individuals, especially young professions, who are either in university or beginning their careers. Young professionals and university student might not afford to pay for the services offered by Speaker Labs; therefore, there might be a need to provide students with the same training services but ensure the financial packages are more affordable.
Product
After conducting an extensive marketing analysis on Speaker Labs’ current passion, the company is capable of offering more services. Speaker Labs has focused on providing clients with training on public speaking. The training programs often last for two days. Speaker Labs is capable of producing more services for their clients. For instance, just like Dale Carnegie, Speaker Labs is capable of providing services on personal development and of empowering individuals to speak with confidence and articulate their ideas effectively, it is essential to ensure they are gaining personal growth. That said, Gladstone and Silverberg need to develop new product lines that would cater to different individuals with different needs. For example, young professionals entering the job market might need to learn how to enhance their communication skills as they look for employment. While experienced professionals might need to empower their public speaking and communication skills. The different products Speaker Labs can offer will provide customers with alternatives that might be essential to their professional and personal lives as well as for their companies.
Place
Speaker Labs is focusing on the Toronto region, which is manageable, especially since the company has only two workers managing all the business operations. Speaker Labs’ primary problem is based on the company’s ability to scale up. Gladstone and Silverberg are interested in increasing sales which would require more purchases. But it is essential to take into consideration the human resource limitations at the company. Two individuals are working at Speaker Labs. Therefore, Gladstone and Silverberg are not able to provide more training or programs without recruiting employees.
Price
Speaker Labs charges 1,495 Canadian dollars for between 15 and 20 individuals from a corporation while individuals are charged an estimated 100 Canadian dollars for a two-day training session (Brooks, 2019). Since 65% of the revenue generated by the company is derived from sales, the pricing format currently used by the company is active. Increasing Speaker Labs’ revenue will require an increase in the number of individuals attending the company’s training programs. The company offers private consultations which last up to 60 hours and costs 20,000 Canadian dollars (Brooks, 2019). Gladstone and Silverberg claim that of the 60 hours they spend during a private consultation session, up to fifteen hours is unbilled. Therefore, there is a need to reduce the hours as well as the charges allocated for one-on-one consultations.
Promotions
Speaker Labs’ clients are often from referrals. Gladstone and Silverberg can increase the number of individuals who sign up for the classes by making use of alternative advertisements. Google Ads, Facebook advertisement, and LinkedIn advertisements can reach a far wider audience. For two hundred Canadian dollars, Speaker Labs can use Google Ads for a whole month. When the company uses Facebook, they will have access to up to two billion active Facebook accounts. Finally, an advertisement on LinkedIn will give Speaker Labs access to five hundred million professionals from across the world.
Conclusion
Speaker Labs is a training company based in Toronto. Unlike other companies such as Dale Carnegie, Toastmasters International, and the Second City, Speaker Labs is relatively a young company that has a lot of potentials to grow and to increase its revenue. Gladstone and Silverberg are the co-founders and only employees at the company; therefore, the administrative costs are low. Expanding the firm’s annual revenue from five hundred thousand Canadian dollars to one million Canadian dollars would require changes based on external and internal analysis. Increasing the number of programs offered by the institutions, as well as increasing the target population is likely to have a positive impact on the company’s annual revenue.