Sustainable Marketing LED Bulb Marketing Plan

Pages: 10 (3159 words)  ·  Style: Harvard  ·  Bibliography Sources: 1+  ·  Level: Doctoral  ·  Topic: Business - Advertising  ·  Buy This Paper

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[. . .] The desired outcome includes three primary factors. The bulbs must provide a return on investment to the firms' investors, treat its employees with dignity, and provide a more sustainable alternative to competing product lines at a reasonable price.

A successful marketing campaign will significantly benefit the three groups typically included in the concept of the triple bottom line; people, planet, and profits. Each group can be thought of independently in regards to their gains offered from LED. Consumers can by achieve gains by not having to change light bulbs nearly as often, experience a better quality of light, as well as benefit financially from the reduction in power consumption of the life time of the product. The planet benefits from a direct reduction in anthropogenic greenhouse gases responsible for climate change. Investors can gain financially by returns of their investments right now. Additionally, the future of LED technology growth rates are potentially limitless thus future gains could represent significant financial gains for investors.

The organization must also strive to implement sustainable practices throughout the company as well as the supply chain. It must pay all employees a livable wage, treat them with respect, and uphold a strict ethical code that should be upheld by employees' at all hierarchical levels. Not only must the organization implement and maintain ethical codes in-house, but it must also monitor the status of all the vendors, material suppliers, and all other strategic partnerships in the supply chain. It's not always an easy task; especially when the supply chain operates internationally. However, the effects of bad publicity can be very costly if partners act unethically. A recent example can be Apple Inc. who were accused of several violations of human rights and the use of child labor stemming from there manufactures in China (Tippin, 2011). This also allows the organization to link their own record of ethical practices to the overall marketing strategies.

IV. Marketing Strategies

A. Target Market Selection

The initial Target Market should be composed primarily of industrial consumers. This consumer segment represents the most likely segment to appreciate the value of total life cycle costs. Since LED bulbs are the most competitive on this level, it follows that the greatest demand will be among consumers that make long-term financial considerations such as found in industrial organizations. Buyers in this segment often do a lifetime cost analysis before making major purchases. The LED fairs very well it is compared on this level. Thus since this segment will be receptive to the LED marketing message it represents an ideal niche to serve as the initial target market.

After LED products reach a level of maturity in this segment then other markets could be explored in greater detail. It is reasonable to speculate that in the consumer segment targeted niches could also be identified such as those consumers who are environmentally conscious, those who have elevated ceilings that require special equipment to replace failed bulbs would like the extended life of the LED bulb, as well as those who are concerned with lighting quality such as a drafting professionals. Each of these could serve as an appropriate niche strategy however since the industrial sector represents such a good fit; this market should definitely be exploited first.

B. Marketing Mix

The product offering will consist of various wattages and applications of LED technology. The firm will try to position itself as one of the low cost leaders in this industry segment. No major branding or product differentiation efforts will be made in the initial marketing campaign. The products will be marketed directly to industry with developed supply chains or manufacturing capacities that serve the potential to purchase LED products in bulk. Distribution of these products will initially come from bulk shipments directly from the manufacture or from regional distribution channels that can be developed as the demand increases.

V. Action Plan

A. Targeting and Positioning Statement

The market segment that will serve as the primary target for marketing operations will be composed of industrial consumer segments. In order to position the product for this segment, efforts will be made to reach these consumers directly by the in-house sales representatives or through strategic distribution partnerships. The products will strive to be a low cost leader in the industry and be positioned to offer the greatest cost efficiency advantages in the market segment.

B. Strategic Map Linking Strategy to Objectives

C. Promotional Plan

The promotions that funded will be directly targeted at the B2B segment. This will include advertisements in trade journals as well as at industry conferences. No attempts will be made initially to reach the consumer segment until consumer demand justifies such expenditures. B2B marketing strategies will be primarily be founded upon face-to-face interface through regional sales teams. A prospective lead in the industrial segment that has plans to purchase materials in bulk deserves the attention of sales professional in person as these would represent large accounts. This face time should also be integrated into a broader customer relationship management (CRM) software suite, such as Salesforce or SAP, so that the accounts can be effectively managed and national trends can be easily analyzed.

D. Distribution Plan

Distribution will be made in bulk shipments directly from the manufacture at first. Development of a distribution network will developed that includes strategic partnerships composed of wholesalers that market directly to industrial sources. There are also potential strategic partnerships that can serve as an outsourced distribution and logistics solution. Outsourcing distribution and logistics could have several strategic advantages especially during the initial growth phase. The main advantage is that this route would not require heavy investments in initial capital. Although the organization would lose an amount of control over these business functions, it is reasonable to assume that these services would still be adequate, at worst. Therefore, until the organization reaches a level of growth that allows it to take advantage of quantities of scale, then it is recommended that it look to outsource distribution through strategic partnerships.

E. New Product Forecast

The initial product lineup will be composed of the most popular sizes for retrofit applications. This will include LED bulbs that can basically be screwed into existing light fixtures. Future plans include expanding the lineup to encompass more option such as low voltage solutions that can be installed in various applications.

F. Product Launch Schedule

The most common bulb sizes and retrofit applications will be launched first. The initial launch will be followed by products that can be used in more obscure installations. Capabilities for customization will also be introduced as capacity builds.

G. Financial Forecast

The initial return on investment is expected to be negative for the first three years. In this period the company and brand will begin to establish itself in the marketplace. Once a market toehold is established then the profitability of the firm will expand significantly. The goal for the return on the investment to the initial investor will be capped at twenty percent with any excess revenues being reinvested back into the company for future growth. Investors can expect a ten percent return in a five-year period at the minimum, with the most likely return being equivalent to roughly fifteen percent. Product consumer can also expect a payback period of roughly four years.

H. Ecological Impact Forecast

The ecological impacts achieved through marketing a more efficient lighting source will be achieved in a reduction in the required kilowatt hours for lighting with the other factors being held constant. One LED source can be equated with roughly twenty five of its incandescent counterparts (Richard, 2009). Thus not only will the power demands of each bulb be significantly reduced, but the labor required for maintaining the lighting, the transportation costs, and the waste will also be reduced. The ecological benefits of such products are relatively clear.

VI. Implementation, Controls, and Evaluation

A. Measures of performance

Given the industry in which this firm will operate, the standard triple bottom line can actually be expanded in each category to form an even more holistic approach the impacts of LED bulbs. For example, the products not only save the consumers money in regards to the product's life cycle but it also reduces there carbon footprint. Thus the consumers' benefit can be calculated with multiple criteria such as in monetary figures or kilowatt hour's reductions. Similarly, investors can either grade their contributions by their financial reward or also by their contribution to ecology. This might act as an incentive to attract investors who have more of altruistic motive than purely financial.

B. Monitoring and Evaluating Performance

Monitoring and evaluating performance in regards to marketing success can be graded against a plethora of criteria. These include such items as new accounts, total units sold, total sales revenue, increased sales from period to period, repeat customers, or any combination of these. Since economic considerations are among the forefront in such emerging industries, this will serve as a primary performance indicator. The other criteria must be considered as means to this… [END OF PREVIEW]

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Sustainable Marketing LED Bulb.  (2011, September 9).  Retrieved February 20, 2019, from https://www.essaytown.com/subjects/paper/sustainable-marketing-led-bulb/5501603

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"Sustainable Marketing LED Bulb."  Essaytown.com.  September 9, 2011.  Accessed February 20, 2019.
https://www.essaytown.com/subjects/paper/sustainable-marketing-led-bulb/5501603.