Specialty Good Marketing Plan … Marketing Plan
Pages: 9 (3109 words) | Style: APA | Sources: 1
Product Description & Classification
Competitive Situation Analysis
Market Strategy & Implementation
What follows in this report is a marketing plan for Company G. The firm in question is a well-established company that is highly regarded in the electronics market. The components of the marketing plan will include product support of the mission statement, the target market, the analysis of the competitive environment, a SWOT analysis, the marketing objectives and marketing strategies/implementation. The report will be concluded with monitoring procedures, a conclusion and the applicable references that were used for this report. While no company in the retail or marketing sphere should ever get complacent or ahead of itself, Company G is in a good position and will remain that way so long as their marketing and other important functions remain on point.
Product Description & Classification
Product Description and Support of the Mission
As noted in the parameters of the assignment, the mission statement of the company in question is as follows:
Company G Mission Statement
"We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions."
Consumer Product Classification
The author will also explain the appliance that has been selected and why. The appliance that has been chosen is the new high-end blender that Company G offers that is meant to compete with blenders made by other companies in the market such as Vitamix and Breville.
Indeed, many companies have been selling products that are or are bordering on commercial grade. The prices of such blenders and other appliances can cause sticker shock to some people but there are plenty of consumers with some discretionary income that are more than willing to pay the cost. Indeed, the blenders that Company G offers are in line with similar high-end blenders as offered by Vitamix and Breville, just to name two of the big ones.
The appliance in question dovetails completely and neatly with the mission statement because the high-end blenders in question as made by Company G are made in a way that provides high quality blending and pureeing by consumers who seek a finer appliance. In much the same way that a passenger car purchased can range from a Corolla to a Camry or a Lexus, much the same striations and tiers are becoming obvious and apparent in all realms of consumer electronics and appliances and blenders are no different.
The particular blender selected is distinct, much like the Vitamix and the Breville, for two distinct reasons. First, the capabilities of the Company G blender are far advanced compared to the discount brands found in stores like Target and Wal-Mart. Second, the durability and quality of craftsmanship is far superior in blenders offered by companies like Company G. The blenders offered by Company G are designed, marketed and sold with all of this in mind.
Indeed, customers that seek quality and convenience in their lives via high quality products will want to buy their appliances from Company G. This precisely and intentionally dovetails with the mission statement as mentioned above. While the price is going to be higher for such higher-quality blenders, this is completely fine with the consumers so long as the durability and capabilities of the blender (or whatever appliance is in question) matches with the higher price being paid.
The author will now speak of how Company G's new blender fits into the three-way classification system. As a quick refresher, the three classifications that exist are convenience goods, shopping goods and specialty goods. Convenience goods are frequent and inexpensive purchases that people make on a routine basis. There is little to no effort involved when it comes to such purchases. The blender being spoken of in this report is obviously not a convenience good as it is not inexpensive and it is not something that is bought frequently (Learn Marketing, 2016).
The next kind of good would be shopping goods. These are goods that are not bought as frequently as convenience good and there is often a little bit of research involved when buying such goods. Goods like this would be many cheaper durable goods and many of the cheaper appliance and other items that need to be bought. Cables for electronics and cheaper appliances or other hard goods would be examples of shopping goods. This would include standard-tier refrigerators, freezers, washing machines and entry-level blenders. Since the blender in question is not an entry-level blender and has a rather high price point that is consistent with more advanced goods, the blender is not a shopping good (Learn Marketing, 2016).
That leaves the author with the classification that is in question for the Company G blender and that is specialty goods. As defined by Learn Marketing, specialty goods are ones that have "unique features or branding." Further, they say that there is little to no comparison between these goods and the shopping-level goods because they are so different from one another. For example, one might compare a Lamborghini to a Ferrari as both are obviously specialty-level carmakers. On the other hand, comparing a Ferrari to a Yugo would be ridiculous. They obviously do the same thing but they are entirely different in terms of price point, quality and durability (Learn Marketing, 2016).
Given all that, it is clear that the cheaper blenders are in the shopping goods tier and the higher level appliances like the blenders made by Company G, Breville and Vitamix are in the specialty goods tier because no one with a lower budget would ever consider a blender in the specialty tier. People seek out blenders like the new one by Company G because the capabilities, durability and features are head and shoulders above the entry-level blenders that exist.
The target market for the blender that Company G will be selling would be middle- to upper-class people in terms of income or other financial wealth such as inherited money. While many of the people that purchase high-end blenders are in the upper social classes, there are those in the middle tiers that are willing and able to save the money to buy Company G's blenders or at least finance the purchase through a same as cash offer or on a credit card.
When it comes to the common demographic variables that would be in play when it comes to the target market, there would be several. They would include individuals with incomes over $50,000 a year, families with incomes over $75,000 a year, those people that have an interest in or habit of entertaining guests at their homes, those that live in the moderate to higher-priced areas of the homes and those that are generally interested in the best technology and consumer electronic solutions that exist for the home including the kitchen, the family room and so forth. . The ritzy condominiums and suburbia in particular would be high-density targets for Company G while low income areas and urban centers would typically not be as advantageous.
Competitive Situation Analysis
While the overall playing field for specialty goods is not nearly as crowded as the discount sphere, the issue that would vex many specialty brand names is that the pool of people that can be sold to is much smaller than the standard discount market that is inhabited by stores like Target and Wal-Mart. Indeed, while Target and Wal-Mart may sell more expensive items online, they are never going to use shelf space in their actual stores for the kind of products that are in question here. Company G would be selling in stores like Williams Sonoma and Crate and Barrel.
That being said, Amazon has become a place where just about any level of consumer electronic can be sold, ranging from the budget brands to the high-end systems. Indeed, one can spend $50 on a Blu-Ray player found on Amazon while others will want a fancy Oppo Blu-Ray that can cost $500 or more for a single unit.
Even with the wider availability on sites like Amazon and Wayfair, the pool of consumers is constricted as compared to convenience and shopping goods. This is where name recognition and reputation comes in. Company Z has a good reputation for its products in terms of appearance, its name brand recognition and so forth. This is a great asset but it does not change the fact that brands like Vitamix and Breville are also out there and there is always a ton of jockeying for position in the form of new models, new features and flashy advertising campaigns.
Competitive Analysis using Porter's Five Forces
When looking at the competitive environment using Porter's Five Forces, there can be something said for each force. Suppliers have the power because they are the ones that supply companies like Company G. As noted in the parameters for this assignment, Company G will need new suppliers for its new product lines including its blenders and those suppliers will jockey for the favor and affection of Company… [END OF PREVIEW]
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