Business Plan: Strategic Business Plan

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[. . .] Inglot Cosmetics plans in the next five years to have broadened its product offerings with male cosmetics, perfumes, and white cosmetics. These are products currently being offered by its competitors, but they offer a great opportunity for growth. The cosmetic industry changes very fast, and a product does not remain fashionable for long, this puts more emphasis on innovation. Developing a new factory in South America will allow the company to meet its Brazil potential without disrupting supply for other markets. The major competitors have huge financial backings, which make it easy for them to expand and enter various markets. This might be a slight problem because they do not have the innovation currently being employed by Inglot.

Goals

The five-year goals for the company are expanding into South American market, venture into the French market, diversify its products, and increase its production facilities. The company is currently reviewing a franchise application license from France. This potentially viable market would see the company spread its wings and compete head on with its competitors. Within the next one year, Inglot Cosmetics has to have opened a store in France and Brazil. The Brazil store will lay the foundation for the company to establish the viability of the market. With good potential, then the company will go ahead with its planned proposal for constructing a production plant in South America. The location will be decided later once analysis is completed. The French store has the potential to attract other franchisees, and the company could achieve its 500-store mark within one year. By the end of 2014, Inglot Cosmetics will be running at max capacity in its facilities. The facilities at Przemysl can only cater for 500 stores, there are two options that will need analysis. The first one would be develop a new production facility in South America and go the Shiseido way or increase its current facility capacity. Building a new facility would require a huge capital, but would ensure that the South American market is fully catered for. This would also reduce the transportation costs. The decision to develop the new facility will be made in the year 2015 based on the performance if its Brazilian franchise and demand of its products.

Broadening its product offerings will provide the company with competitive advantages as it will have more products that consumers can choose. Increasing the product portfolio will require additional production facilities, which the company cannot undertake at its current location. Having multiple locations for production would offer the company ample space to cater for diverse markets and be close enough to their potential consumers. Development of a new facility will commence in 2016 and completed within one year. The new production facility will offer the company an opportunity to diversify its production in order to handle the increasing demand and new products. The newly developed production and R&D facility will enable the company to cater for its existing stores and still offer more opportunities for expansion. Product diversification is anticipated will encourage more franchises.

Marketing

Inglot considers that advertising is too expensive and inefficient. The company prefers to use brand attributes, merchandising, and promotions to market its products. According to Kotler (2011), this are other forms of marketing that are less expensive. The company has developed a store layout that allows it to offer a high quality-shopping environment. Leveraging on this, the company has been able to display all its products and provide consumers with ample choices. This strategy will not be changed, as it has proven quite effective. There will be some revamp and additions based on the previous performance and competitors, which will offer the company an opportunity to promote its products. Leveraging more on the make-up artists, the company would promote and market its products to new consumers and encourage existing consumers to try other products In the next two years, Inglot Cosmetics plans to recruit more make-up artists, who will be given promotional products. They will try out the products and recommend them to their clients. Using the artists within its stores is beneficial, and they are experienced and would advice customers. The company will continue to invest heavily on its R&D facilities, which will ensure that it continues to produce high quality products at lower prices. This philosophy is good for marketing as the consumers are assured that the product they purchase is highly researched. The company uses beautiful packaging and presentations for all its products.

Investing in consumers, and brand promotions is a better mode of marketing that using traditional media advertising. The company has achieved production regulation compliance established by the European Union. This gives it a good basis for marketing its products as consumers can rest assured that no harmful products are used to manufacture the products. Marketing will play a vital role in informing consumers, and the company should consider running some promotional advertisements. The new stores will have to be visible and in locations with high traffic. This will ensure that the brand image is promoted, and potential consumers can visit the stores. The in store design will be redesigned within the next two years to reflect and include new products. The redesign will allow the new products to be seen and tried by consumers. Redesigning will also offer the stores new zest, which will keep the consumers interested.

References

AFANASYEV, M. & MENDELSON, H. 2010. Service provider competition: Delay cost structure, segmentation, and cost advantage. Manufacturing & Service Operations Management, 12, 213-235.

BHATTACHARYYA, S. & NAIN, A. 2011. Horizontal acquisitions and buying power: A product market analysis. Journal of Financial Economics, 99, 97-115.

FOSFURI, A., GIARRATANA, M.S. & ROCA, E. 2013. Building and Sustaining a Product Differentiation Advantage Through a Community-Focused Strategy. Industry and Innovation, 20, 114-132.

KOTLER, P. 2011. Reinventing marketing to manage the environmental imperative. Journal of Marketing, 75, 132-135.

KUMAR, V., JONES, E., VENKATESAN, R. & LEONE, R.P. 2011. Is market orientation a source of sustainable competitive advantage or… [END OF PREVIEW]

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