Assignment 2: Part B: Your Marketing Plan Due Week 6 and worth 240 points
From the start of this course, you have accessed the Interactive Marketing Plan tool and used the step-by-step guide to complete Part B of your marketing plan. You are required to submit a marketing plan for a hypothetical product-based company. Your plan must include the company’s mission, introduction and branding, and information collected from Step 5 of the Interactive Marketing Plan, located in the course shell. Note: Some elements may not be covered in the Interactive Marketing Plan and will require additional research.
Write a four to five (4-5) page paper in which you: 2. Develop a branding strategy for your product that covers the brand name, logo, slogan, and at least one (1) brand extension. 3. Develop a marketing strategy for your product and determine an appropriate time table for execution of the plan (e.g., phase 1, phase 2, etc.). Provide a rationale for your response. 4. Develop a positioning statement which should include, at a minimum, a benefit, user, competitive, or innovative statement about your product. Provide a rationale for your time frame for execution of your positioning statement. 5. Examine the relevant marketing science of customer behavior for your product. 6. Develop your company’s mission statement and company introduction. 7. Use at least three (3) academic resources as quantitative marketing research to determine the feasibility of your product / service. These resources should be industry specific and relate to your chosen product / service. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements: · Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. · Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
MKT500 Assignment #2
Executive Summary Placeholder
Regardless of what the Grading Rubric for Assignments 1 and 2 ask for, one cannot write an Executive Summary until the plan is complete. That being the case, just use the first page of Assignments 1 and 2 as a placeholder for the Executive Summary. Assignment 3 is where you will come back, after you have completed it, and write the Executive Summary. If this placeholder is in your Assignments 1 and 2 , you will receive the points for it. If there is no placeholder, you will receive no points.
If you have the placeholder in Assignments 1 and 2, then on Assignment 3, because there is no Executive Summary required, if you put it in then, I will “give back” no more than 54 points on the other sections in Assignment 3 that you might have been “weak” on.
Endure Heavy Duty Aluminum Doors and Frames is a manufacturer of aluminum doors and frames. These items are supplied for water and wastewater treatment plants, schools, and other locations where corrosion from water or other chemicals is a threat; and where a strong, pre-finished opening is desired.
Endure Heavy Duty Aluminum Doors and Frames has been in the marketplace since the mid 1950’s. The logo is the word ENDURE with a little bit of a slant to the right, and all block capital letters. The letters are in a Reflex Blue, and the logo is set on a white background. Because the logo is so old, and has been in use so long, it is well recognized in the architectural, engineering, and construction industries. Because the firm has been in business so long, and has developed a reputation for being able to “solve” any opening (i.e., door) opportunity, many architects, engineers, and contractors will routinely send in pictures and requests for help, which allows a large portion of the business to be obtained direct, versus having to go through an Invitation to Bid bidding procedure. The brand slogan used with these customers is “Our standard is custom”, meaning that while we offer standard sizes, we also do a lot of custom size products that no other door manufacturer will take on. A brand extension Endure Heavy Duty Aluminum Doors and Frames will take on is including the specified door hardware as part of our quotation to customers. This would make the company a “one-stop shop” for the aluminum doors and frames, as well as all of the specified door hardware for the project.
The marketing strategy for 2015 will be to attend five trade shows; hire seven manufacturer representatives; have Google ad words; put on six webinars regarding all of the products currently being sold. The trade shows are national and include architects, engineers, water and wastewater treatment, schools, and representatives. Each show will have members of our market segment attending, except for the last one, where we hope to meet additional representatives. Manufacturer representatives have 4-6 products that they market to architects and engineers. By hiring these commission-only representatives, the hope is to complement the existing representatives, and have full coverage in the continental U.S. and Hawaii. The Google ad words will be used to end up on the first page of any search being done for the words chosen. The webinars will be content full, and introduce the architects and engineers to the full scope of the firm’s capability.
January, 2015 – Interview reps and choose
February, 2015 – Trade Show; Interview reps and choose; Start Google ad words; Webinar
March, 2015 – Interview reps and choose; Evaluate ad words
April, 2015 – Interview reps and choose; Evaluate ad words; Webinar
May, 2015 – Trade Show; Interview reps and choose; Evaluate ad words
June, 2015 – Trade Show; Interview reps and choose; Evaluate ad words; Webinar
July, 2015 – Evaluate ad words
August, 2015 – Trade Show; Evaluate ad words; Webinar
September, 2015 – Trade Show; Evaluate ad words
October, 2015 – Evaluate ad words; Webinar
November, 2015 – Evaluate ad words
December, 2015 – Evaluate ad words; Webinar
For general contractors, glazing contractors, and hardware suppliers, Endure Heavy Duty Aluminum Doors and Frames will have superior customer service; ship freight pre-paid to destination; and handle all types of custom door jobs. Endure Heavy Duty Aluminum Doors and Frames is the main supplier of aluminum doors and frames to the overwhelming majority of water and wastewater treatment plants. Our custom aluminum door promises to have a lifetime guarantee.
(Note that the above was generated from the ecornell marketing positioning generator at http://blog.ecornell.com/how-to-write-market-positioning-statements/ and recommended for you to use as well!).
The positioning statement was executed at the same time as when the business started.
Relevant Marketing Science
Ariberg, Arora, and Bodur (2002) suggest that a member’s influence in a group’s decision could be decomposed into two distinct elements of preference revision and concession. The degree of preference revision and concession varies across product attributes, individuals, and product categories. To look at it from the buyer’s perspective, two possible strategies to maximize satisfaction with a joint purchase (involving, for example, a piece of furniture, an appliance, or an automobile): preference revision and concession reciprocity. Preference revision as a strategy refers to an active effort by a buyer to update own preferences in light of what others in the group like or dislike. Such a strategy advocates the need for careful comprehension of others’ preferences and, in response, a flexibility to adjust own preference. By adopting preference revision as a strategy, a member decreases the need to concede, thus increasing the odds of “buying into” the joint decision. Concession reciprocity, in contrast, suggests the need to sacrifice own preference in response to a sacrifice made by others. This strategy encourages both members to be fair in their give-and-take, because such fairness is likely to result in higher post-decision satisfaction.
Bearden and Etzel (1982) found that when respondents were faced with a single decision type (e.g., product versus brand), the decision factor was only significant for informational group influence. However, the absolute values were consistently greater for brand choices as opposed to product choice decisions. This suggests a greater role for appeals based on reference groups in stimulating selective demand. Variations in the sets of products selected affected perceptions of value-expressive and utilitarian reference group influence. The absence of significant informational reference group effects suggests consistent information seeking by individuals across similar types of products.
Boulding and Kirmani (1993) research whether consumers perceived warranties as signals of quality. Signaling theory emerged from the study of information economics under conditions in which buyers and sellers possess asymmetric information when facing a market interaction. For example, whereas sellers know their true product quality prior to the sale, buyers may not if these products contain experience properties. Experience properties, such as the durability of a shoe or the reliability of a personal computer, can only be assessed during consumption. They found consistent evidence that consumer responses to better warranties are compatible with the existence of a separating equilibrium under conditions of high bond credibility. The results indicate that firms could offer either a long or short warranty, but a longer warranty would not be a signal of quality. There is also strong evidence that the high warranty is beneficial only to the high-credibility firm and not to the low-credibility firm.
Gerstner (1985) found results that suggest that for many products the relation between quality and price is weak; hence, for many products, higher prices appear to be poor signals of higher quality. The findings also indicate that quality-price relations are product-specific, with frequently purchased items displaying weaker relations than non-frequently purchased items. Two explanations for these findings are suggested. First, the weaker relationship for frequently purchased products could be attributed to the fact that non-frequently purchased items usually are more expensive and big-ticket markets are more likely to behave because the financial commitment of customers is substantial. It has been shown that products with higher ticket prices display stronger price-quality relationship than do frequently purchased items. Second, the weaker price-quality relationship could be caused by size variations across brands, which make price- quantity and price-quality comparisons more difficult. It has been shown that higher unit prices may signal non-economical packages rather than higher quality.
Mission Statement and Company Introduction
Endure Heavy Duty Aluminum Doors and Frames is in business to secure a long-term future for the owner and his family. For our customers, we want to be the aluminum door and frame manufacturer who they can rely on for a quality product, delivered on time and freight pre-paid, and with excellent customer service when they need it. For our suppliers, we want to be a valued customer, and we want them to be valued stakeholders in our company.
Endure Heavy Duty Aluminum Doors and Frames is a manufacturer of aluminum doors and frames. These items are supplied for water and wastewater treatment plants, schools, and other locations where corrosion from water or other chemicals is a threat; and where a strong, pre-finished opening is desired. (Note that this is simply a repeat from the beginning of Assignments 1 and 2).
Aribarg, A., Arora, N., & Bodur, H. O. (2002, Aug). Understanding the role of
preference revision and concession in group decisions. Journal of Marketing
Research, 39(3), 336.
Bearden, W. O., & Etzel, M. J. (1982, Sep). Reference group influence on
product and brand purchase decisions. Journal of Consumer Research, 9(2),
Boulding, W., & Kirmani, A. (1993, Jun). A consumer-side experimental
examination of signaling theory: Do consumers perceive warranties as signals of
quality? Journal of Consumer Research, 20(10), 111.
Gerstner, E. (1985, May). Do higher prices signal higher quality? Journal of
Marketing Research, 22(2), 209.
Part A: Marketing Plan/ Paradise Cookware
MKT 500, Online
The “Paradise Cookware” company has been in this business since the year of 1979. They have been making cookware at a place called the Prince Edwards Islands, which is located in Canada and Charleston, S.C. The company designs and produces cookware specifically for people in North America. This company offers pans, pots, and a lot of different cookware types for not only individual clients but also for corporate clients
Executive Summary Placeholder
This “Paradise Cookware” company is a company that is in the lead with a luxury type segment of cookware in not only United States but Canada too. The positioning strategy will be based on the emphasis of nothing but quality products while at the same time these products will be higher among comparable items.
Competitive forces: These products are available with a big variety of all types of cookware. They are available in both the United States and Canada. Within this cookware group, there are about 216 brands that are available at retail through Cookware manufacturers association (Cookware manufacturers association, 2014). A Vast majority of companies operate at several segments of the market simultaneously.
Economic forces: We know from research that all cookware and kitchen stores within this industry has been faced with a large number of declines. This is because of the recession that we faced which caused the decrease in disposable incomes of customers. Looking at the time frame of about 2014 to 2018, we see that the revenue is expected to grow bigger as consumers go forth with increasing their spending on luxury industry products (IBIS World, 2013).
Political forces: The increase in export-import operations because of changes of the trade regulations between the United States and some of the world’s largest manufacturers of cookware (like China). Cookware, manufactured in the USA and Canada are at a competitive disadvantage with respect to the ones that are manufactured overseas. The luxury segment of the market is estimated to be way less vulnerable to this trend as the other segments are.
Legal and regulatory forces: These products comply with the U.S. and Canadian safety guidelines. The tort liability of the company is very ensured.
Technological forces: These products are manufactured with the utmost regards to technology that is advanced in the cookware field of manufacturing. The company is also monitored thoroughly with the development of the industry-related technologies.
Socio-cultural forces: Paradise Cookware will be responsive to its target commitment with having products that are of a high quality and its label “made in USA”. Techniques that are green will also be used.
The Target Market
The primary target market for this company would have to be females within the ages of 40-60. They will more than likely not have a job so that they are able to dedicate a large amount of their time to work around the house. Women that truly value a products quality and reliability will view the “Paradise Cookware” as an investment. Other types of customers that would be included with this company’s primary target would include market and corporate clients. This would be hotels and restaurants. A Secondary market would include women in the age range of 20-35. They would have to be employed or busy with housework and trend toward premium brands.
In the context of the assignment, performance analysis is similar to return-on-investment (ROI) that is calculated as follows: (gain from the investment-cost of investment)/cost of investment.
By knowing the benchmarking percentage, we will be able to transfer to the analysis of each of the metrics in order to compare the performance of the company to the performance of its closest competitor, namely Paderno.
Customer engagement is the metrics that is characterized through several other metrics, namely activity time and visit frequency (with regard to websites). The average number of visitors of the website of our company during a day is around 1500 people, while the average number of visitors of Padernos website is about 4000 people.
1500/4000=0.375. The number of Paderno website visitors exceeds the number of our unique visitors by 72.5 per cent.
Let us suggest that while the retention rate of the visitors of our company’s website was 30 per cent on January, the first, 2014, and on January, the fifteenth it was 50 per cent, while retention rate at Paderno company website was 50 per cent and 70 per cent respectively.
(50%-30%)/30%=0.6=60% – increase in retention rate
(70%-50%)/50%=0.4=40% – increase in retention rate
The number of website visitors can to great extent determine the revenue of the company due to the fact that all the products by both companies can be purchased on line through their official websites.
The market share is classical metrics, used in performance analysis. Paderno is still the leader of the market, enjoying the market share of 22%. In 2013 its market share increased by 1 per cent (from 22 to 32 per cent), while the market share of the “Paradise Cookware” increased from 11 to 15 per cent.
The fact of growth can be explained by the introduction of several new distribution channels into the operation of the company last year, while, being confident in its leading position at the market, Paderno preferred not to introduce any changes to its strategies.
The rate of adoption can be defined as the relative speed that characterizes the process of social system’s members’ adopting an innovation. The factors that influence adoption rate include relative advantage (the degree of innovation’s improvement as compared with the previous generation) compatibility, complexity, trial-ability, as well as observability. In 2013 Paderno and the “Paradise Cookware” introduced similar new products. They were cookware sets, consisting of several cooking pans, steamers and covers. The adoption rate of Paderno new product was estimated to be up to 10 per cent higher than the one of the cookware set, introduced by the “Paradise Cookware”. The difference can be explained by the fact that Paderno aims at establishing long-term contractual relations with corporate clients, and offers new products to them as soon as they get to the market, while the “Paradise Cookware” still concentrates on communicating non-corporate clients.
Analysis of such metrics as the number of web site’s visitors, their engagement (via retention rate), the market share and the level of new product’s adoption rates shows that the performance of the “Paradise Cookware” is in considerable need of improvement that will help the company maintain its market share without introducing so large-scale changes as the introduction of new distribution channels.
Four quantitative goals for the next stage of company’s development are as follows:
- Increase the number of unique visitors of the company from 3.5. million people to 5 million
- Increase the number of repeated visits to the website from 20 to 50%
- Maintain the market share at the level of 15%
- Expand to 2-4 new markets in Europe and North America
Four qualitative goals may include:
- Strengthen communication between the brand and consumers, and among consumers through the website of the company
- Create more attractive and customers’ needs-based design of the website
- Elaborate on the program, aimed at promoting the establishment of long-term contractual relationships between the company and the consumer.
- Increase trial-ability and observability of the company’s new products, so that they get higher rate of adoption
Product’s SWOT Analysis
SWOT analysis represents a type of extensive needs analysis, and is aimed at singling out strengths, weaknesses, threats and opportunities related to the product (in our case: to the cookware)
Kahn, K. (2011). Product planning essentials. NY: M.E.Sharpe
Nicholas, J.M. (2004). Project management for business and engineering: principles and practice. Oxford: Elsevier
Stevens, R.E., Sherwood, P.K. (1982). How to prepare a quality feasibility study: a step-by-step guide. NY: Prentice Hall