Company G

1-Year Marketing Plan

Student Name:

Student ID:

Date: August 6, 2019

Student Mentor Name:

v. 201103
Table of Contents

Introduction .................................................................................................................................................. 3
Product Description and Classification ......................................................................................................... 3
Product Support of Mission Statement……………………………………………………………………………………………….….3
Consumer Product Classification............................................................................................................... 3
Target Market ............................................................................................................................................... 4
Competitive Situation Analysis ..................................................................................................................... 4
Analysis of Competition using Porter’s Five Forces Model........................................................................ 4
SWOT Analysis............................................................................................................................................... 5
Strengths and Core Competencies ............................................................................................................ 5
Weaknesses............................................................................................................................................... 5
Opportunities ............................................................................................................................................ 6
Threats ...................................................................................................................................................... 6
Market Objectives ......................................................................................................................................... 7
Product Objective ...................................................................................................................................... 7
Price Objective........................................................................................................................................... 7
Place Objective .......................................................................................................................................... 7
Promotion Objective ................................................................................................................................. 7
Marketing Strategies and Implementation................................................................................................... 7
Product Strategies ..................................................................................................................................... 7
Price Strategies ......................................................................................................................................... 7
Place Strategies ......................................................................................................................................... 7
Promotion Strategies ................................................................................................................................ 8
Explanation of Strategies………………………..……………………………………………………………………………………………….7
Implementation Plan ..................................................................................... Error! Bookmark not defined.
Product Tactics .......................................................................................................................................... 8
Price Tactics .............................................................................................................................................. 9
Place Tactics .............................................................................................................................................. 9
Promotion Tactics ..................................................................................................................................... 9
Monitoring Procedures ................................................................................................................................. 9
v. 201103
Introduction
Company G is a firm that is well-established and highly regarded in the electronics market.
Through a team of engineers and designers, Company G has developed a new line of top-quality
small appliances that through extensive testing has proved to be the most reliable line of products
in the industry. This combined with an efficient production process will enable Company G to
emerge as the lowest-cost producer in the small-appliance industry. One of these products is the
Wine-O bottle opener that is part of this marketing plan.

Product Description and Classification

Product Description and Support of the Mission

Company G Mission Statement

“We enable consumers to improve the quality and convenience of their lives by providing
high-quality, innovative electronics solutions.”
One of Company G’s new small appliance products is a wine bottle opener called the Wine-O. It
has a sleek design in multiple colors that buyers are attracted to. The electrical cord folds nicely
and compact in the bottom of the appliance and innovation provides an optional external power
pack or use of batteries for added convenience for traveling, picnics and off the grid destinations.

The product supports the mission statement because it is a small electronic appliance with
innovation features such as optional battery usage or external power pack for those “off the grid”
picnics and travel. The Wine-O improves quality of life by allowing quick and easy access to
your favorite bottle of wine either while relaxing at home or on the go. Our target market
consumers will love the sleek design and features that are sure to impress any wine connoisseur
at their big event. Convenience is created by opening your wine bottle with ease; at the press of a
button (verses manually using/twisting your wrists to pop the cork) and added convenience of
optional battery usage and external power pack allows for travel and “off the grid” events.

Consumer Product Classification

The Wine-O bottle opener is classified as a shopping product for the following reasons:

• Product is relatively expensive due to high quality materials and features

• Consumers will take a considerable amount of time to compare price and quality
to other wine bottle openers with similar features
• Purchased less frequently in comparison to manual bottle openers

v. 201103
Target Market
Research has shown that the target market for the Wine-O bottle opener is directed to consumers
with demographic characteristics that are educated, have incomes in the higher tax brackets of
$75K-$125K and tend to have psychographic characteristics such as wine connoisseurs interests
and a lifestyle of frequent social events and traveling.

Competitive Situation Analysis

Analysis of Competition using Porter’s Five Forces Model

Competitive Rivalry: The threat level is low for several reasons. The number of competitors for
this unique product is low due to the lack of innovation in their product lines. The one major
competitor that could pose as a future threat is Wines-R-Us. Currently, this company’s brand
and logo are not as recognized in the small appliance categories as Company G. The visual
design features of their product are bulky, unattractive and not travel friendly. As well, there
have been numerous quality recalls for failure to operate when in battery mode (verses
electrical).

Potential New Entrants: Currently, the threat is medium. Although the product appears to be
easily duplicated, current competitors are facing barriers of quality and have overlooked fine
details to avoid product quality control issues. Any new entrants will need to focus carefully on
product differentiation if they wish to avoid barriers of cost/time to exceed the quality standards
that Company G currently has. As well, recent government policies on trade may present higher
tariffs to new entrants.

Bargaining Power of Buyers: The threat level is considered low. Company G is a well-known
and respected company throughout the world. Because of their reputation and the fact that there
is little to no competition, Company G has a large % of domestic retailers who sale their
products. The retailers and distributors are spread out among different geographical areas and are
already offered a volume discount. Currently, there are no other choices or competition that exist
that are equal in product quality and therefore, there is no concern that retailers will ban together
for additional discount demands. However, there is concern of occasional reduction in order size
and excessive returns that needs to be addressed.

Bargaining Power of Suppliers: The threat level could range from low to high. Company G
will need new suppliers for two component parts and because of the differences in material
requirements, new raw material suppliers will be needed to support the new appliance line. There
are many suppliers who can offer the raw materials and component parts needed which would
normally be a low threat level but due to the reputation that Company G holds in regards to high
quality standards and the lowest-cost producer, choosing a quality supplier poses a large
challenge which brings the threat level up to medium/high. Once Company G finds the supplier
v. 201103
that meets quality standards and costs they desire, the threat level will remain low and Company
G will continue delivering product at a reasonable price.

Substitutes: The threat level is low to medium. The target market level of threat is low as these
consumers will most likely not purchase a substitute. However, consumers not in the target
market with less education, lower incomes and simple lifestyles will possibly revert to the
manual, non-electronic style and less expensive wine bottle opener.

SWOT Analysis
STRENGTHS *indicates core competency WEAKNESSES

• Strength 1*Production Process • Weakness 1 Marketing Plan

• Strength 2*Lowest Cost Producer • Weakness 2 New Suppliers
• Strength 3 Reputation, Brand and Logo • Weakness 3 Labor Costs

OPPORTUNITIES THREATS

• Opportunity 1 International Expansion • Threat 1 Social and Cultural Environment

• Opportunity 2 Technology • Threat 2 Competitive Forces
• Opportunity 3 Increased Profit Potential • Threat 3 Suppliers

Strengths
Strength 1*Production Process
The production process designed by the team at Company G is efficient in regards to labor and
production-line time. This will result in very little raw material waste and reduced labor costs.

Strength 2* Lowest Cost Producer

Because of the combination of efficiencies in the production process and the small, up-front
investment for the product line, Company G will have the ability to produce the products at a
cost that enables them to emerge as the lowest-cost producer in the small-appliance industry.

Strength 3 Reputation, Brand and Logo

Company G is well-established and highly regarded in the electronics market. Market research
has shown that Company G’s brand and logo are readily recognized by most categories of
electronics product consumers.

Weaknesses
Weakness 1 Marketing Plan
The current marketing plan does not allow Company G to reach their full profit potential for the
small appliances. An accurate assessment of the current market trends and a well-crafted,
implemented marketing plan that fits the current market will determine the success of the new
product line. Current strategies and practices will be considered irrelevant until the new
marketing plan is presented.
v. 201103
Weakness 2 New Suppliers
Although Company G has a good relationship with their current suppliers, because of differences
in material requirements and due to their high standards in quality, it could potentially be a
challenge to obtain new suppliers for the two component parts and new raw materials. Factors
such as supplier reputation, material costs, delivery time and quality are of concern.

Weakness 3 Labor Costs

Company G will need to add employees to support the new product lines. This will initially
cause excessive start-up costs in training and possible negotiations from the labor union.

Opportunities
Opportunity 1 International Expansion
International expansion opportunities are limitless. Company G can conduct an External
Environment Analysis to determine the economic environment in expansion areas of interest and
begin strategies to move into the desired areas where profit and growth potential is maximized.

Opportunity 2 Technology
Marketing and Advertising on the internet and social media websites will reach more consumers
in less time. Company G can utilize technology to its full potential.

Opportunity 3 Increased Profit Potential

Company G has the opportunity to increase profit potential in their small appliance industry.
Factors such as having very few competitors and an economy that is positive will enable the
company to remain an industry leader. By conducting research and development for international
expansions, environmental scanning, revising their marketing plan and new production process,
profits can be maximized to the company’s full potential.

Threats
Threat 1 Social and Cultural Environment
Research and Development conducted by Company G shows a very low threat level toward
consumer’s purchase of wine, which affects the sale of the Wine-O Bottle opener. However,
beliefs and values change and in today’s world, more consumers are focusing on fitness and
healthy lifestyles; which normally does not include alcohol consumption such as wine.

Threat 2 Competitive Forces

Although currently, the threat level is low, Company G realizes they must stay focused on
leading their industry as the lowest-cost producer in small appliances. The biggest competitor,
Wines-R-Us is being monitored for improvements in similar products sold and environmental
scanning and other strategies are conducted to maintain a competitive edge.

v. 201103
Threat 3 Suppliers
Although Company G has a good relationship with their current suppliers, because of differences
in material requirements, new suppliers will be needed for raw materials and two component
parts. In addition to concerns of political, legal & regulatory forces on tariffs, other factors such
as supplier reputation, material costs, delivery time and quality are of concern and could pose as
a threat to production and sale of their product.

Market Objectives
Product Objective
Sell 10,000 Wine-O bottle openers by the end of Q4 (Oct-Dec), 2020.

Price Objective
Achieve profit margin of $500,000 by the end of Q4 (Oct-Dec), 2020.

Place Objective
Product located in two-hundred (200) retail outlet stores and boutiques by the end of Q4 (Oct-
Dec), 2020.

Promotion Objective
Reach 75% of target market by end of Q3 (July-Sept), 2020.

Marketing Strategies and Implementation

Product Strategies
o Brand name and logo recognition will be marketed to associate product with excellent
reputation Company G holds.
o Focus on stylish features and functions to show consumers that product is easy to use
(press of a button releases the cork) and is travel friendly with electrical or battery
operated options.
o Emphasize warranty value; two year money-back guarantee on parts and
workmanship to enhance no risk purchase of product.

Price Strategies
o Penetration pricing strategy will be used by offering discount coupons, BOGO and
other discounted incentives (to attract consumers to new product).
o Volume discount for distributors and retail outlet owners to encourage reorders.
o Trade discount for net 10 payments to encourage retailers to restock product.

Place Strategies
o Increase sales and exports to geographic regions for international expansion.
v. 201103
 o By utilizing the newly designed production process, order processing at distribution
centers are expedited in a quicker and more efficient manner to retail and boutique
customers.
o Warehousing in geographic areas known to consume large amounts of wine and/or
close proximity to vineyards for quick and easy distribution to retail outlets and
boutiques.

Promotion Strategies
o To increase sales, wine tasting events will be held in retail outlet stores and boutiques
in proximity of target market communities. Product display and a demonstration on
how the Wine-O bottle opener operates. Special discounts apply at these events.
o To increase sales, communicate with target market through catalogs and direct mail
advertisements.
o Advertisement on television demonstrating use of product and features. A “call now”
incentive to the consumer will include 50% off the purchase of a second Wine-O
bottle opener in efforts to increase sales and expand target market.

Explanation of Strategies
Company G is a well-established firm that’s highly regarded in the electronics market and
has a brand and logo that are widely recognized. This will prove to be a major factor in
marketing strategies and objectives because they have already built trust among consumers
and are well known.

The strategies work together to achieve the objectives because the penetration pricing
strategy and warranty value combined with Company G’s brand name and logo will increase
sales in geographic areas (domestic and international). In addition, the strategies for
advertisement through television and direct mail combined with on location demonstrations
at local retail outlets and boutiques will increase sales and expand target market to include
new consumers.

Marketing Implementation
Product Action Plan
Tactic Due Date Responsible Party
Design packaging and ad campaigns November 1, 2019 Marketing Team with final approval
with brand name and logo from Marketing Director
Design product package that November 1, 2019 Marketing Team with final approval
includes product functions and art from Marketing Director
work of product features
Incorporate Warranty clause into November 1, 2019 Marketing Director
packaging and include in contracts

v. 201103
and advertisements.

Price Action Plan

Tactic Due Date Responsible Party
Create and document details of November 1, 2019 Marketing Director and Team
pricing strategy along with design
and time release of discount coupon
& BOGO offer
Create table chart with volume November 1, 2019 Marketing Director
discount quantities and %
Communicate discount with November 1, 2019 Marketing Director
accounting manager

Place Action Plan

Tactic Due Date Responsible Party
Research target market areas for November 1, 2019 Marketing Director
international expansion and obtain Sales Manager
bid estimates from two modes of
transportation to export product
Create order processing checklists November 1, 2019 Operating Line Manager at
and perform quality control to Distribution Center
ensure continued improvement
from newly designed production
process
Obtain bid estimates from three November 1, 2019 Marketing Director and Marketing
warehousing options in geographic Administrative Assistant
areas

Promotion Action Plan

Tactic Due Date Responsible Party
Design display for wine tasting November 1, 2019 Marketing Team
Obtain list of addresses in target November 1, 2019 Marketing Administrative Assistant
market geographical areas
Design commercial details November 1, 2019 Marketing Director

Monitoring Procedures
Monitoring Activity Due Date/Frequency Responsible Party
Product-Review & Analyze Sales Reports Monthly Marketing Director
for targeted goal of 833 products sold February 10, 2020
monthly
Price-Review & Analyze monthly Monthly Marketing Director
Financial Reports for targeted profit February 10, 2020
margin of approx. $41,700.00 monthly

v. 201103
Place-Review & Analyze geographic Monthly Marketing Director
report for current and new locations of February 10, 2020
retail outlet stores and boutiques for
targeted goal of approx. 16 new
locations per month
Promotion-Compare & Analyze geo- Monthly Marketing Director
graphic areas of target market to ensure February 10, 2020
consumers are being reached in these
areas at the rate of 6% per month to
achieve total objective

References

Jeff Tanner and Mary Anne Raymond. (2016). Principles of Marketing and Business
Communication. Boston, MA: FlatWorld, ISBN: 978-1-4533-8006-2

Retrieved from: https://catalog.flatworldknowledge.com/catalog/editions/tanner_p-5839-

principles-of-marketing-and-business-communication-1-0-2/citation

Task 1 Performance Assessment-VZT1, Company G Scenario, Marketing Applications-C223

Retrieved from: https://tasks.wgu.edu/student/001052711/course/1560001/task/156/overview

v. 201103