finalize your marketing plan for your selected product or service. In preparing for Part II, you may have to consider some of the suggestions made by the instructor in Part I feedback. You will use the same scenario for this week’s work as you selected for the week 3 work.
Complete the following for your marketing plan:
Justify the pricing strategy you will employ. Perform a breakeven analysis to determine how many customers you will need to make your business financially viable.
Defend your distribution strategy. Determine if there are additional channels you should pursue and why.
Justify your integrated marketing communications plan. Discuss the key themes of your campaign and link them to how your business, service, or product will satisfy your target market needs.
Describe each element of the promotional mix in detail and explain how you will integrate the different elements of your promotional mix toward the target market using the key themes. This includes the following elements:
Defend an implementation schedule for your marketing plan. Outline the time frame for the different media campaigns and specify milestones. You should outline who will be responsible for each action item and how you will track the deadlines to ensure the plan stays on schedule.
Justify an evaluation process for the effectiveness of the marketing plan, including use of a marketing dashboard that includes a sample dashboard.
In table format, synthesized estimates for the marketing budget.
Additionally, you have been asked to prepare a budget. The budget should include estimates of forecasted sales, direct cost of sales, and your marketing expense budget. (Create an Excel sheet with the budget estimates and then copy/paste into your Word document.)
Marketing Plan for CM Designs
The Pricing Strategy
The products that CM Designs offers are considered high on fashion and low on prices. The company intends to offer the most current fashion at relatively cheaper prices in all its branches as compared to other competing brands. Therefore, the company intends to follow low pricing strategy. CM Designs will achieve this because it does not spend much money on raw materials, marketing and product promotion. Generally, the business has an overall low cost structure as compared to its competitors. Its low prices will be region’s specific.
CM Designs will set market based pricing approach that will set the target price buyers will be willing to pay. Consequently, this will fix the profit margin that will be earned on every item. More specifically, the business intends to use different schemes as a means of sales promotion. In particular, it will introduce low level of discounting at least once a year to attract customers and enable them purchase products. The business will continue to review the prices of its products in areas and the season. This is in line with Koivula (2012) arguments that pricing of products need to be sufficiently adjusted in the entire product life cycle. This is critically especially for organization that deal with frequent innovations including design and fashion. As such, the pricing strategy of CM Designs can be regarded as below the market or penetrating price.
CM Designs intends to use direct distribution strategy to sell its products directly to consumers. To implement this strategy, the business intends to use modern approach, as well as, electronic commerce websites where buyers will be able to make online purchases. This distribution strategy is effective for CM Designs because the business already has a client base who are moderately knowledgeable about technology and require specific fashion to fulfill their needs. CM Designs intends to directly distribute its products through phone orders or catalogs. With this option, the business intends to target older customer base or users in certain industries who are attuned to placing their orders in such a manner.
In addition to direct distribution, CM Designs will equally use indirect distribution strategy by bringing on board intermediaries to help in the logistics and placement of products so that such products can reach customers swiftly. The firm will use its unique business model to bring new fashion and products to the market within the shortest time possible. Its store managers will send orders to the headquarters at least two times a weak based on the sales data of the store, as well as, buyers’ preference. Moreover, its marketing team will compile the order and then deliver orders to the manufacturing plant.
Integrated Marketing Communication Plan
Integrated marketing communication is a critical tool used by companies to gain greater customer base and create awareness to the public awareness. CM Designs will incorporate various communication tools to inform potential customers about its product offerings, attract and retain customers. In particular, the business plans to design electronic commerce both on website and on mobile and products within a short time. The justification for this plan is that with a well-designed website and mobile apps will enable the company to attract customers and assist customers to choose products. CM Designs also plans to increase its interaction on social networking sites especially Facebook, online website, Twitter and blog. The justification for using social media is that these sites will assist the business to create sense of scarcity and emotional appeal. More importantly, CM Designs plans to use regular email newsletters, as well as, store services to enhance their customers’ loyalty.
Precisely, the internet use is an important tool that the business will use to inform the target customers about the new fashion and product that is soon being launched to the market. The major internet platforms that the business intends to use for promotional purposes include social media and websites. Essentially, most of the target customers for CM Designs are youths who are the frequent users of social networking sites including Twitter and Facebook. The justification for using the internet is that it is cheap and easy to use. Moreover, using the internet will enable the business to reach many customers within a short time. In addition, the internet is one of the leading and appropriate tools for this business since a good number of the target customers frequently use the internet, particularly social networking sites including Facebook.
Key Themes of the Integrated Marketing Communication
The major theme that will be used to design integrated marketing communication is, it is unique, it is the best. It is believed that the customers that the business targets comprises of persons who are more cautious about their appearances. Consequently, it is anticipated that by assuring customers that they will appear more descent, be comfortable and safeguard their bodies from cold weather, they will be more willing to buy new clothes. There is high possibility that the marketing communication theme is going to attract the attention of a good number of target customers. The audience that comprise majorly of young working adults, as well as, college students have a strong passion for clothes, particularly those in fashion. Principally, the stated communication theme is a convincing idea that is likely to make target customers purchase the clothes and try new ones introduced in the market.
Elements of Promotional Mix
Advertising is the first element of promotional mix. In the case of CM Designs, the organization will communicate with its target audience through advertising campaigns that entail television and print media. Television and print media are old fashioned communications techniques used by most organizations to inform the target audience about their latest offers and products (Koivula, 2012). Principally, CM Designs will advertise its products and offers through commercials during the prime show times. This communication strategy will enable the business to attract the attention of potential customers and convince them that the products and offers that the business have are indeed unique and brings the best.
CM Designs plans to use direct marketing to promote its new products and offers to the potential customers. The business will intensively advertise these products. However, to make a greater impact, the organization intends to use salespersons to approach certain individuals or organizations within the target market segments. As SM Designs intends to approach sports organizations, especially learning institutions to promote its offers and products, the company’s marketing communication mix uses direct marketing to create a good rapport with target customers and inspire them to buy its products. Similarly, the business intends to use direct marketing to launch new products to the target markets. These new offerings will be advertised intensively to enable the organization achieve its integrated marketing communication theme of unique and quality products.
Sales promotion as stated by Koivul (2012) refers a marketing communication tool that adopts short term offers and approaches to convince and persuade target customers to try a certain product. The marketing team in CM Designs will offer gifts including notebooks, perfumes, discounted prices, vouchers, as well as, mobile phones. The customers are likely to be convinced to attempt buying the product by informing them that they stand a chance to win good mobile phones when the production period ends. The company will use sales promotion to make the potential customers to attempt purchasing the products.
CM Designs will develop a good rapport with its target customer. In particular, it will offer gifts, vouchers and samples to its customers. After that, some of the customers will be invited to buy and try new products that are to be introduced.
Support media is also critical in the integrated marketing communication for CM Designs. The company will use support media to communicate to reach to hundreds of target customers since most of these customer prefer visiting the media. The marketing team of CM designs will create pages in their Twitter and Facebook among other sites where information such as benefits and price of the products can be obtained.
Evaluation Process Of For the Effectiveness of Marketing Plan
CM Designs will use balanced scorecard and BI systems to document and report the progress towards its goals. The major goals of the business encompass looking for the most appropriate location for new branches and recruiting and training the employee in line with the standards. To monitor and evaluate the effectiveness of its marketing plan, CM Designs will adopt innovative technologies, as well as, management information systems. Essentially, accountability will be achieved to adhere to the laws and regulations governing the operations of the business. More importantly, the business intends to apply technologies in all its operations and processes to make them more effective. More importantly, to evaluate the effectiveness of its marketing plan, the organization intends to use % Porters’ analysis, SWOT Analysis, as well as, management information systems such as business intelligence to assess its marketing audit.
The effectiveness of strategy use determines the outcomes or impacts of marketing development. As such, the management of the business intends to assess the effectiveness of the marketing plan through building a promise and owning the strategy, as well as, its implementation.
The table drawn below indicates the projected sales revenues per year. In this case, the cost of sales merely represent only the inventory purchase, shipping, total labor, as well as, overhead costs that can be found in the Profit and Loss Account. The business project moving an increased number of products through wholesale contracts with retailers. However, higher prices the business intends to charge implies that the revenue streams will somehow be equal. A a fact, the business projects 50% sales volume on cash basis, as well as, 50% as cash received.
We are forecasting 50% of sales values on a cash basis, and 50% as accounts receivable.