Marketing Application

Marketing Application

Introduction

Company G is a firm that specializes in electronic appliances. It is well known for innovative and high quality appliances. The company ensures customer satisfaction and improvement of their customers’ quality of life. The following market plan will help the company reach its full potential in terms of profits.

Product Description and Support of Mission Statement

Company G, an award-winning dealer of electronics, has the responsibility of enabling consumers to improve the convenience and quality of their lives by providing innovative electronic solutions and of high quality. With the proper home fridge, success happens automatically. Here is everything you require to make your life easier. Keep your food fresh for longer and reduce the cost of frequently buying food by getting a long lasting and reliable Samsung fridge from Company G’s stores.

The product is in the class of a Convenience product. It has both factors for convenience products; place mix and product mix. For its success, it should be a strong brand. The product can be enhanced through in-store sales advertising and leveraged by having product line extensions.

Target Market

The target market would be more likely to be people who work and have less time for cooking and doing frequent shopping. Besides, older people are likely to use a fridge compared to young people as they have less energy to shop frequently. Also, people who love a lavish lifestyle may prefer purchasing the product.

Porter’s five model

Bargaining power of suppliers– When the bargaining power of suppliers is high, there is a reduction in the competitive ability by the firm. In the case of company G, the bargaining power of its suppliers is low because of their lower financial strength, and small resize, and company G can easily switch its suppliers. To the suppliers, missing a tender from company G is a significant loss.     

Bargaining power of customers– In the case of company G, their customer’s bargaining power is high as they know they have many options. They can easily shop from the cheapest brands. However, products from company G are well established due to its continuous focus on technology, and that limits the bargaining power of customers.

Threat of new entrants– Although there are still threats of entrance in the market, company G has significant investments to build its brand through advertising. There are many barriers for new entrants like the regulatory pressure and huge requirements for marketing, operations, and human resources. Therefore, the threats for new entrants is limited.

The threat of substitutes– The threat substitutes for company G is slightly high as there are many upcoming local brands with competing electrical appliances. Besides, the costs of switching the customers are somewhat low. To reduce the threat, the company has to ensure technological innovation, positive brand image, and customer satisfaction.

Competitive rivalry between the existing players– There is intense competitive rivalry between the current players. The reason is because of the popularity of big brands. Therefore, company G should always rely on technological innovation.  

SWOT analysis

Strength– Company G has several powers which include;

Ø  Few competitors and thus more sales

Ø   Professionals with reputable training leading to excellent customer service

Ø  Positive brand image attracting many customers

Ø  High customer loyalty and thus retaining customers

 Weakness– In company G, the defects include;

• There is no hire purchase service discouraging some customers
• Price of company G’s products is high making customers buy other brands
• Poor market control skills

Opportunity

Ø  Company G is famously known for its excellent customer service, and thus many customers prefer buying their electronic appliances from the company’s stores.

Ø  Support from the government and thus more sales as it is a national brand

Threat

• Increased technological innovation and hence the threat of new entrants.
• Increased competition and thus reduced sales

Marketing Objectives

Product objective- To increase the number of new fridge designs by two by 2021

Price objective- To be able to give a minimum of 10% discount by 2022

Place objective- To have an extra three stores by the end of 2020

Promotion objective- To improve the brand image by 10 % in the next ten months

Marketing Strategies

Promotion– Discounts will be given to frequent customers and customers who have previously referred a customer to the company’s stores. The customers will also experience outstanding customer service from the business’s staff since customer satisfaction is always the target. Also, company G will adopt a promotional strategy of demonstration. The company will use its stores to lure customers and ensure they touch and feel the actual product before they purchase. Besides, the customers receive training on the features and functioning of the product for enhancement of the selling process.

Price– The pricing strategy adopted by the company will have a significant impact on the consumers’ purchasing decisions. Company G uses a competitive pricing strategy and sets its prices slightly as those of competitors in the market. The approach enhances the company’s survival in the market. Besides, the company can attract and retain its customers and still achieve its target profits. Also, there is the use of a price skimming strategy. The company lowers its prices below those of competitors to steal their customers.

Place– Apart from the company’s stores, the company uses online selling platforms, as it the most accessible means of reaching customers regardless of the distance. The use of online selling websites has improved the buyer-seller relationship, as it enhances loyalty for purchases to be made in the future. Also, the strategy has increased the company’s overall sales as it covers both people with or without the time of getting to the company’s stores.

Product– the strategy enhances the performance of the company’s product. It defines the extent to which the customers can use the product. The primary considerations include the benefits, features, and capabilities of the product. For the fridges, the factors incorporated in the product include features, design, and quality. Among the main features of the refrigerators developed by the company include energy efficiency and huge capacity, and high quality.

Therefore, the above marketing strategies will give company G power over its competitors. Secondly, the company will be able to set its prices based on the information from the market. Thirdly, the organization will utilize its resources optimally. Summarily, the marketing strategies will help company G meet its set goals and objectives (Keegan and Warren J 2017).

Implementation

Product Action Plan

Price Action Plan

Place Action Plan

Promotion Action Plan

Monitoring Procedures