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Structure of Marketing Plan
Group has decided to create our own small business that deals in the pet products industry using an online platform. Online retail
is growing and a highly competitive industry that has a low barrier to entry as well as high exit rates. We only aim to capture a small percentage of the market size which is estimated to be seventy million people in the United States. We are going to target only the section of this market that will dress their pets, by providing apparel products for pet owners to dress their pets for bed. A marketing strategy that we discussed was also providing a pair of matching slippers for the pet owner themselves with a purchase in an attempt to gain a slight competitive advantage and choose a marketing platform. We estimate the startup costs to be around fifty thousand dollars for product development and advertising. The projected name for this product line is pawjamas
We are launching this product line on our own and forming our own Limited Liability Company with a traditional organizational structure in which each team member is responsible for different departmental goals. A formal organizational structure will be in the
report. We aim to launch this product line at the start of the second quarter in the year 2017.
This is my section:
3.0 SITUATION ANALYSIS
3.1 Market Summary
· What are your target customer groups?
· What are your projections for the growth of this market?
· What are your projections for your product growth in this market?
3.2 Target Market Description
Who is your target market, specifically, for this product? What is the rationale behind why they are the optimal target market segment?
This is a critically “hot” area right now in marketing so be sure to elaborate and offer details on your target market’s behavior and lifestyle.
3.3 Market Needs
This section should include both customer needs and the customer value proposition. What do your customers value and how are you meeting that need? Discuss at least two customer needs.
3.4 Market Trends
Identify and briefly explain at least two trends; these should be trends going on in the industry or the environment that will affect your product. These are trends that your company/product can respond to in some way. Trends are long term; fads are short term.
3.5 Market Growth
· Is the market growing, static, diminishing? How much? How quickly? · What is the evidence? What is the timeframe? · How will you address the market if it is growing, or static, or diminishing?
3.6 SWOT Analysis
Provide at least 3 strengths your company/brand exhibits.
Explain at least 3 challenges that place you at competitive disadvantage.
Provide at least 3 opportunities external to your business that will lead
to your success.
Discuss at least 3 external to business issues that will threaten your success (e.g, it is common to include unexpected acts of nature, government and regulatory concerns, and competition in this section of the SWOT).
3.7. Environmental Scan
Perform a scan of the 5 external elements that could affect your business/product over which you have no control.
3.7.1 Competition (analyze your major competitor)
3.7.3 Regulations/Political Issues
3.7.4 Cultural/Social Changes
· How will you monitor expenses/revenue? Identify what methods/reports and how often you’ll review them? · How will you assess that you are meeting your goals/objectives? · How will you assess changes in the market environment?
Sample of Solution
3.0 Situation Analysis:
Since, the startup configures the online sales revenue model, e-commerce parameters along with the consumer behaviors towards the pet’s apparel must be observed with close scrutiny to realize the latest market opportunities. Furthermore, consumer base and its potential to grow in future must also be considered to formulate any marketing strategies. Since, only proper segmentation along with the personalized targeting campaigns can earn returns for the startups. Apart from this, since the startup would be new to the market, it should be focusing on the differentiated values and core competencies to set apart from existing competitors in the market. Moreover, since the startup would be targeting only the niche market, its strategies must be standardized while incorporating the behaviors of the targeted segment of the market. For instance, while formulating the core strategies, customer insights from the extensive market research must be considered. Moreover, the startup must be looking precisely to the assumption and the financial projections in effectively highlight any discrepancies or the hidden costs of the operations. Essentially the situation demands the efficiency of internal activities with due diligence besides stringent responsiveness.
3.1 Market Summary:
Since, the target market is quite a specific segment comprising of is the individuals who own pets and want apparel for their pets, which although, may put a limit on our consumer base but essentially significant enough for maintaining a competitive position in the market. The group of these consumers would include the people from the different ages, demographic characters, geographic affiliations and mostly higher income levels. People who own the pets, which comprise about 78.9 million households in the United States and have conscious care preference for their pets, would be included in the groups of our target market (U.S. Pet Ownership, Community Cat and Shelter Population Estimates, 2016).
3.2 Target Market Description:
The target market is the high-income pet owners, conscious about the health and dressing for their pets, in the age segment of 18-33 years while living in the most pet-friendly states like Vermont, New Mexico, Washington, Arkansas and West Virginia. Since we would be offering pets apparel products for beds hence the pet owners who would like to sleep with their pets would be forming our consumer base. While for matching slippers “Pawjamas,” the youngsters of the age 18-26 years would be concentrated, since the pet owners of this age segment would be more likely to spend greater time with their pets. Since our product price would also be targeted to mark the masses hence, the teenager who are more price conscious would be more induced with this product specifications.
It has been evident from the spending patterns that the pets hold distinguished value for their owners, who can spend greater amounts to ensure quality products for their pets. Humanization also signifies the same essence of attachment the owners may have with their pets as a part of their family and hence they must also be treated like human beings. Moreover, since there has been a trend of owning the pets and treating them like the family members, more than 95% of the pet owners consider their pets as the family member (More Than Ever, Pets are Members of the Family, 2015).
3.6 SWOT Analysis
SWOT Analysis defines the competitive position of a business entity in the market by incorporating the potential resources that the entity owns.
Strengths of a company are essentially the core competencies which differentiate a brand from its competitors. These are the potentials which are capitalized by the entity to earn returns on its investment. Our startup also has consequential core competencies which differentiate our identity from our competitors.
High-quality products: These core competencies count the high quality of our products which we have ensured through a distinguished value-adding supply chain. These high-quality premium products would be designed to cater the demands of specific niche class of consumers.
Accessibility: Furthermore, augmented accessibility of consumers to our products ensured by our e-commerce website would differentiate us from the traditional retailers. Digital integration from the inception would provide us a competitive advantage over the competitors
Consumer-friendly products: Since, through an extensive market research we have developed a product idea of “pawjamas” which would appeal the consumers at the psychographic level. Moreover, our personalized products would be targeting to the exclusive niche market demands to capitalized on the consumer preferences.
Internal controls must be established in the organizations to avoid any discrepancies. Since the controls mitigate the risk of the realization of uncertain events, they must be established with due efficiency while in conjunction with core strategies. Regular reports must be prepared, comprising of income statements over the specified period. Revenues and expenses can be effectively monitored through the comparison of income statements over the different time periods. The frequency of reconciliation of income statements must be quarterly since the pet’s apparel products observe seasonal demand. Hence it would be optimal to quarterly judge the position of revenues and expenses. Based on the capacity of the resources our startup holds, certain goals in the term of revenues and the number of customers must be established which would be used as a benchmark to compare the performance of the startup. Moreover, with this comparison the management would also significantly realize whether current business performance is meeting the stipulated goals or not. Furthermore, the changing market trends must also be closely followed, since they define the future market position of the businesses, which can be realized through regular market researchers.