Company G:1-Year Marketing Plan

Introduction

Company G is a company renowned in the electronic industry due to its proficiency and excellence in developing small electronic appliances. The company has developed a new line of electric kettles for domestic use in households. To enable the success of this product, Company G needs an effective marketing plan. On that account, the following document presents Company G’s 1-Year Marketing Plan for the new line of electric kettles. The execution of the plan will enable the firm to gain a foothold in this segment of this market.

Product Description and Classification

Product Description and Support of the Mission

Company G Mission Statement

“We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronics solutions.”

Company’s G new line of electric kettle, dubbed as “Jets Kettle”, are targeted at domestic consumers. The new kettle comes with an increased capacity as it is able to hold up to 5 liters. The other electric kettles in the market usually hold only 2 liters. The Jets Kettle has a long electrical cord and has its own standard to enable convenience; these features support the company’s mission of improving the quality and convenience of consumers’ lives. Further, it is coated in plastic and is easy to carry due to its firm grip and lightness. The kettle also has an attractive design and comes in various colors to suit the taste of the consumer.

Consumer Product Classification

The three-way consumer product classification system offers a useful means for categorizing the new product. On that account, the Jets Kettle can be categorized as a shopping good. The Jets Kettle is a shopping good since it is a product that customers do not purchase as often like convenience goods like eggs and bread. Further, the product is costlier than convenience goods and customers anticipate it to last longer, therefore, they will engage in some research before purchasing it (Perreault, Cannon, & McCarthy, 2015). Such research will include comparison of the product’s price and features with similar products from competing firms. The Jets Kettle can be further be classified as a white good as it is a consumer electronic product.

Target Market

The primary target market for the Jets electric kettle is households in urban regions. In particular, the kettle is targeted at the busy professional who requires fast hot water without a disruption to his/her schedule. The age group being targeted is between 30-45 years as these professionals tend to have school-going kids. Since the kettle has an expanded capacity, it can be used to heat water for the entire family, thus enabling convenience and saving time in the ever-busy morning. Besides, since it is easy to use and handle, the children can use it to attend to their personal hot water needs. Further, its long power cord means that it can be kept from the reach of infants in high places. Besides, its enhanced capacity means that it can heat water for other purposes like showering, effectively saving money on electrical bills.

Competitive Situation Analysis

Analysis of Competition using Porter’s Five Forces Model

The Porter’s Five Forces Model is useful in analyzing the competitive environment of the electric kettle market. The following section will examine the competition that Jets kettle faces in this market segment.

Competitive Rivalry:  Company G’s Jets Kettle faces direct competition from other multinational brands like Philips, Ramntons, and Saturn. These brands are highly renowned, have a global reach, and are widely trusted by consumers. Therefore, it will be difficult for jets Kettle to upstage these brands.

Potential New Entrants:  The rise of consumer electronic companies from East Asia places a threat to Company G’s product as these firms are increasingly venturing into the market. As these firms, are able to produce their products at relatively low costs, they can offer cheaper products.

Bargaining Power of Buyers:  The bargaining power of buyers stems out of the wide range of alternatives in the market. The buyers may decide to refrain form buying the Jets Kettle due to price, thus, obliging Company G to reduce the product’s price unwillingly.

Bargaining Power of Suppliers: Due to the difference in material needs, Company G is bound to encounter the barrier of bargaining power of suppliers. The company will have to negotiate contracts with new suppliers, who will demand a fixed price as the raw material cannot be sought elsewhere.  

Substitutes: The possible substitute for Jets Kettle 100 Liters Industrial Cooking Kettle from CZC. However, due its large size and cumbersome nature, the kettle does not place a threat to the convenience and affordability enabled by the Jets Kettle. 

SWOT Analysis

Strengths

• Strong Engineering Team- Company G has a strong engineering team capable of producing quality products suited to the needs of customers.
• Healthy Financial Position- Company G has high credit rating and low debt-to-equity ratio, meaning that it can easily finance the new venture.
• Efficient Process- The company has a very efficient production process in regards to labor and time spent on the production-line that leads to minimal wastage of raw materials and increased profit margins

Weaknesses

• Lack of Solid Marketing Strategy-The lack of a definitive marketing strategy means that the company has to spend extra time formulating and implementing one, thus delaying the roll-out of the product to the market.
• Over-reliance on a Few Suppliers- The over-reliance on a limited number of supplier means that Company G has to seek new suppliers as the current ones do not have all the material needed to create the new product; this adds to administrative costs.
• Limited product line- Company G only specializes on small consumer electronics, thus limiting its market base.

Opportunities

• Strong Brand Recognition- Company G’s brand is easily recognizable among consumers, meaning that the new product will have a ready customer base with the right marketing strategy.
• Large Market Base- The consumer electronics sector has a large market base as every household today makes use of such appliances; with the right marketing mix, Company G can take a considerable share of this market.
• Online marketing- Online marketing activities offers the company the chance to broaden its consumer base at a relatively small cost.

Threats

• Entry of Multinational Firms- Multinational firms, especially from east Asia, can offer the same products that Company G offers at a lower cost thus threatening its market position.
• Bargaining Power of Suppliers- As the company is set to negotiate new supply contracts, the suppliers may take advantage of their position and offer their services at a high cost.
• Technological Advancements- Technology is constantly shifting and a new product created by Company G today can become obsolete in a few years.

Market Objectives

Product Objective

The Jets Kettle should be launched in the market within six months.

Price Objective

The Jets Kettle will cost $30, which is a reasonable price for a mid-range product

Place Objective

The Jets Kettle will be sold in consumer electronic shops and supermarkets countrywide within one year after its launch.

Promotion Objective

The main avenue for promoting the product will be social media platforms, whereby the company will create pages for the product a month before its launch.

Marketing Strategies and Implementation

Product Strategies

• The quality and design of Jets Kettle.
• The strong brand reputation of Company G.
• The unique features of Jets Kettle.

Price Strategies

• Competition-based pricing whereby the prices match those of competitors.
• Premium pricing to take advantage of consumers who believe that quality entails a premium cost.
• Penetration pricing to build brand loyalty.

Place Strategies

• Direct selling.
• Selective strategy.
• Exclusive distribution.

Promotion Strategies

• Social Media Marketing.
• Contests with small gifts
• Point-of-sale Promotion.

Explanation of Strategies

Company G will use a unique strategy to leverage its innovative and quality manufacturing processes and superior supply chain; this will enable the company to set a price that reflects those of other consumers to penetrate the market whilst still having a premium appeal (Berthon et al, 2012). The company will employ an exclusive distribution strategy through the elimination of middlemen in the supply chain. The company will also employ social media marketing that includes online contests and point-of-sale promotions to broaden its consumer base (Chaffey & Ellis-Chadwick, 2012). The combination of these strategies, along with Company’s G strong reputation will enable Jets Kettle to gain a significant share of the market.

Marketing Implementation

Product Action Plan

Price Action Plan

Place Action Plan

Promotion Action Plan

Monitoring Procedures

References

Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons, 55(3), 261-271.

Chaffey, D., & Ellis-Chadwick, F. (2012). Digital marketing: strategy, implementation and practice (Vol. 5). Harlow: Pearson.

Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2015). Essentials of marketing: A marketing strategy planning approach. McGraw-Hill Education