Marketing Plan for Company G Example

Introduction

For the last couple of years, Company G a well reputable company which deals with manufacture, the design, as well as the distribution of electrical and technological products has been dominating the market for appliances, however they face a challenge for introducing a new line of appliances due to a number of factors. Their high-quality products and highly scalable business have attained them recognition and fair market share worldwide. Company G has maintained the market share due to the ability to maintain effective marketing, unparalleled product management, and great production efficiencies. The company manages wishes to introduce new products in the market, that is high-quality small appliances and which are designed by the company's experts and produced by the company's engineers. The paper will develop a market plan that will allow the company achieve the desired sales of the new product. The market plan will, therefore, aim to achieve the companies objective in relation to the projected profits for the new product line. The structure of the paper is divided into various sections, and each subtopic will address the pertinent plan comprehensively.

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Product Support of Mission Statement

Company G mission statement is:

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

Product Description

The new appliance product to be introduced in the market is the programmable pressure cooker. The product is a multifunctional cooker which is commonly referred to as the seven in one cooker which performs a minimum number of seven functions. The flexibility of the appliance pressure cooker makes it appealing to the target market. It consists of features such as the option for slow cooking, rice cooking, browning among other compelling features. Additionally, the functionalities of the appliances are unlimited and can offer many options such warming, steaming, heating among others. Its big capacity and ready to use features like the control panel which has smart programs built-ins, automatic keep-warm, dual pressure and, three temperatures allows the appliance to meet all the cooking needs. The body structure of the appliance is composed of a steam rack, stainless steel handle, and pot. Apparently, the size of the inner pot measures at 6Qt making it the most effective on-budget appliance in the market. The new appliance is designed in a way it is energy efficient with a high level of friendliness and usability. The appliance documentation manual and the receipts are produced in a couple of languages including the Spanish, French, Chinese, and English

The appliance supports this mission statement of the company fully by improving the quality of the lives by designing and producing high-tech quality cooker. The appliance makes the life of the user easy and convenient since the programmable pressure cooker can integrate many functionalities. There is no other appliance designed in a similar way or better than the cooker in the market hence it meets the company's mission of improved life. Furthermore, the cooker is built and proven using the engineering tools which improves the safety of the user. Hence, the overall innovation and production offer the user with innumerable benefits (Cousins, 2011)

Product Classification

The programmable cooker is a product that the customers will evaluate against other similar classifications. The appliance can, therefore, be grouped as a shopping item. Many factors qualify the product categorization to be shopping item. One such factor is the way that there are different cooking appliances in the market from different companies, and the part of homogeneity is excessively obvious. Also, a customer will along these lines need to think about the details documented by the producers and assess the data to settle on an intelligent decision that would enable them to buy the product they expected. Thirdly, as it is ordinary of most shopping items, the exhibition of the programmable pressure cooker will undoubtedly be broad and organized. The commercialization of the programmable cooker relies upon the brand name, which, obviously, must be reputable, for example, the company's must have solid and strong customer base for effective commercialization. Additionally, the follow up with viable merchandising and individual selling improves the market perspective (Day, 2014)

Target Market Analysis of Competitive Environment

Target Market

The target market for the new pressure cooker appliance is extensive and vast. The company will introduce the new line of the appliance across the global market. Since the appliance gets utilized by people who have a tight schedule, it will target employed people who value convenience, speed and flexibility. Therefore, the whole spectrum of the demographic target includes the singles, mothers, busy couples, spinsters and the bachelors aged between year 25 to 40. Following the psychographic aspect, the appliance fits the ever active people who are achievers. Additionally, taking into account the societal classes, the product is suitable for the middle class and the top class group, who are more concerned with speed and flexibility. Geographically, the target market will include urban areas where the population is dense, and the appliance appeals to the community due to its reliability

Porters Five Forces Model

Although the company has built a reputable market recognition, the company faces market competition from the rivals who focus on production of the same appliances products. Below is the discussed competitive analyses of Company G.

Competitive Analysis

Similarly, as with most businesses, the aggressive competition is the essential in market share and the significant determinant of the opposition that Company G encounters in the similar technological and electrical products. The competition is for the most part introduced by the immediate contenders who likewise bargain the market for similar electrical machines as Company G, thus producing homogeneous appliances. In the electronic markets, particularly the class of cookers, organizations keep on producing more items with different progressions in innovation. In that capacity, different items have been supplied by different companies presenting programmable cooker with intense rivalry. Such items from rivals incorporate electric pressure cookers and rice cookers. These items offer direct rivalry, and clients need to evaluate their options in the market to reach conclusions. A few producers have produced cookers with excellent features compared to the Company G's 7-in-1 cooker which brings a major market rivalry.

Potential New Entrants

Company G faces the competition from the new companies entering the market. Essentially, the electronics market is lucrative and that potentially attracts new companies joining the company. For the last couple of years, the industry has seen a number of new companies entering the industry and this is expected to continue for a foreseeable future. Therefore, establishing strong brands aligned with the company's mission statement would be the best strategy to ensure that the company remains competitive as well as generate enough revenue for sustainability. The new companies are increasing the competition due to their market entry strategy which is selling their products at a reduced price. However, Company G has an edge to the new companies because of its market and production reputation hence gaining customer loyalty (Kotler, 2004)

Bargaining Power of Customers

This is the capacity of the clients to introduce pressure to the firm or the organization whereupon the cost is influenced. With the risk of new companies, there is a risk that the customers will gain more bargaining power. New companies are willing to give the customers cheaper options and that will influence their bargaining power on the new appliances. This will shift the market equilibrium and the demand for the company new appliances will be significantly affected if the company does not act in a strategic manner. Notwithstanding, if a large number of customers, therefore, the clients ask for low prices, the company will have zero otherwise but bend to their whims. Therefore, this poses a significant disadvantage to Company G because their price control power will be reduced. The purchasers have the more noteworthy power since there are different producers in the electronics industry (Cousins, 2011)

Bargaining Power of Suppliers

This is capacity of the supplier to influence the price of the raw materials, labor, and administrative activities. The supply term goes beyond the provision of raw materials to include the labor and skills of the designers, engineers and the unskilled workers (Kotler,2004). Again the law of supply and demand has an upper hand here. The law of supply and demand plays a big part here because if the supply is low, the suppliers have a big control over the prices of the raw materials and wage bargain. However, according to the market analysis, the are many raw materials and the suppliers which work to the advantage of the Company G. This ensures that Company G has big command on the profit margins if the prices are not largely influenced by the customers. In this way, the organization has the capability of creating many cookers at affordable costs, which will reflect on the sales prices hence garnering a large number of customers (Kenneth, 2011)

The Threat of the Substitutes

Additionally, the company faces the threat of the substitutes which can be used to offer the same services as the programmable pressure cooker. This poses the market threat and influences the company's profit margins. Prior to the production of the programmable cooker, there were other pressure cookers in the market which are affordable and are efficient in their own way. This is a challenge that the company has to triumph, although the new product appliance is of high quality and more efficient than the existing cookers (Schrauf, et al. 2012). The customers will take longer to be convinced that the new cooker in the market is the best and they will hesitate paying high prices first before experimenting. The customers are accustomed to other cookers which are affordable and efficient enough for their purposes, hence it will be hard to change the in-depth perception. The Company G has an option of lowering prices at the entry level as a way of product line promotion. Additionally, if there are so many substitutes, the company will have less power on the price setting because it will be largely influenced by the market demand. If the substitutes are less, the company has the command on the market and can set the price at which they can maximize the profits while also considering the value of the customers (Day, 2014)

SWOT Analysis

Strengths

• Reliability
• Reputation
• Talented engineers and designers.

Weaknesses

• No strong relationships with new suppliers
• Low debt-to-equity ratio
• Credit terms

Opportunities

• Loyal customers
• Customers need for high-tech appliances.
• Substandard competitor product

Threats

• Cheap substitutes
• New competitors
• Potential economic recession

Strengths

Company G has plethora opportunities in the industry of electronic appliances based on the established strengths. One of the most noticeable strength is the good reputation which they have maintained since joining the market. Additionally, this reputation is enhanced by the high innovating technology and high production capacity combined with a great workforce and organized management. It is for that reason that the company wants their brand logo to remain the same since it is their main identity. Hence, when marketing the new product line with the same brand logo...