Foundation of A Marketing Plan Essay Assignment
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Foundation of A Marketing Plan Essay Assignment
American Intercontinental University
Unit 2 Group Project
MKTG 205 – Principles of Marketing
May 11, 2014
This paper will define and explain what segmentation is with the discussion of different segmentation bases, along with the description of the target markets and why they will be profitable for our product. With the introduction of competitors and their positioning and the competitive advantages along with our value proposition and developmental statement.
With the marketing strategy being the foundation of a marketing plan we will introduce a comprehensive plan to the organizations marketing goal. In order to sustain the business’s profit potential after conducting market research for the product being identified.
Definition of the Segmentation Bases
In order to have an effective segmentation base the company will identify and measure each segment whether it be quantitative or qualitative. In doing so the company’s segmentation process will be a long term strategy that is consistent with our mission and long term objectives. (Editorial board, 2014). Companies use segmentation in order to figure out which group of consumers they are targeting. Age, income, sex, marital status, living area, and generation all shape segmentation. Each consumer has a different need for each product. Their needs are depended on their characteristics. Each message is sent to a group, but the consumer must feel like an individual. Census is a very important demographic tool. They can show the company about the area’s population status. Companies cannot get all their information about the surrounding consumers just by using the census. Companies get more information about the consumers by using market surveys.
Defining the segmentation bases for marketing the consumers for our laundry detergent will include a process of creating sub groups from the population to specifically target them. (Richards, L. 2014). By identifying specific groups of people based on common characteristics will help in the designing of a marketing mix that will match the expectations of the consumers being targeted. (Richards, L. 2014). Targeting segmented markets include differencing of the products as well as the message. For example, some grocery stores are noticing that the Spanish population is expanding. They can target these consumers buy making advertising bilingual. Advertisements can be put into Spanish-language like newspaper ads and coupons. This will give a better understanding of identifying our segments measurability of an effective size, accessibility through promotional efforts, our devotion to adhere to our policies and procedures of the company, and pricing the product. (Editorial board, 2014). Then the company will determine the marketing position in which we will occupy a distinctive position in our market place in order to retain consumer based loyalty, relationships, retention, and above all satisfaction. (Lake, L. 2014).
Description of Each of the Target Markets
In target marketing there are five steps which are as follows: (1) Behavioral segmentation, which groups prospective buyers by demographics and buying behavior, the determination of the following criteria based on age, gender, income level, family size, ethnic background, marital status, and occupation. Census is a very important demographic tool. They can show the company about the area’s population status. Companies cannot get all their information about the surrounding consumers just by using the census. Companies get more information about the consumers by using market surveys. (2) Psychographic segmentation, which analyzes the consumer’s interest or hobbies, and personality traits, this will determine how our product will fit into one’s lifestyle. (3) Itemizing the benefit of our product, which determines the needs of the consumer’s fulfillment, we will use this to learn exactly what the consumer is expecting to gain by using our laundry detergent versus any other brand. (4) Researching our competitions consumer base and surveying our already established consumer base will give us a better idea of what motivates the consumers purchasing decisions. (5) Compile a consumer profile of our targeted audience, which will describe demographic and psychographic information and data to identify what influences the buying behavior for the targeted consumers. (Jones, T., 2006).
Product is not just an item that can be touched or seen it can also be a service contract, such as one that a person can buy when purchasing a washing machine (Editorial Board, 2014, p. 4). These contracts can extend a warranty on a washing machine for repairs. A motor can go out on a washing machine or even timer and both items can come under this additional service contract or agreement that was purchased. Instead of a person paying the full amount for repairs they may only have to pay a deductible or a small portion for the repairs.
Place goes behind an item such as a washing machine sitting in a store on the showroom floor. Washing machines are sold by department stores, or small specialty appliance stores and even on-line. Usually, when a department store is involved they are able to have a larger inventory that is kept in a warehouse versus a specialty appliance store owned by an individual. When an item is sold on-line the merchandise is usually housed in a warehouse and is shipped to the wholesaler or to the retailer in a matter days or weeks. Once the item is sold the merchandise is loaded in a delivery truck and delivered to a person’s home or place of business or can be picked up by the purchaser (Editorial Board, 2014, p. 5).
Prices of merchandise amongst stores or wholesalers for the same product can vary in price. A specialty appliance store may charge less for the same Maytag washer that has 22 cycles as say, Sears. The reason for this is due to the fixed costs, which includes rent that the store pays on a monthly basis. It is also dependent on the clientele that is shopping for the item. If a person where to purchase a washer in San Francisco, California the cost of a washer would be more expensive due to the rents that are charged to house the merchandise but if a shopper were to purchase the same item in Pleasant Hill, California the price may be cheaper since rents are lower in that area therefore, the cost of the merchandise drops considerably.
Promotion is creating a person to have a deep desire to buy an item. The promotion could be how the item is displayed, advertised on TV, verbally recommended from others, or seen on an on-line advertising on Yahoo.
Analysis of Two Competitors and their Positioning
Unilever and Henkel, strive to create value for its market through competitive positioning. It’s much easier for a company in the laundry detergent industry to influence the market and win mindshare if it can clearly differentiate what it offers. A good market positioning is usually influenced by the company’s market profile, as well as its customer segments (Lingard, 2012).
Unilever founded in 1930 and based in the United Kingdom, Unilever is a multinational enterprise that has a presence all over the world; its sells its products in more than 170 countries. Unilever’s portfolio basically includes some of the world’s best known and most loved brands across Foods and Home and Personal Care categories (Lingard, 2012). This company targets all types of markets (people) around the world, for instance, every brand it develops has its own target group. Since it’s one of the oldest brands, Unilever continues to introduce new ideas into its products so as to satisfy the changing needs of its customers.
Henkel, headquartered in Düsseldorf, Germany, has been in business for over 133 years, and it promises to deliver to laundry detergent products that are environmentally friendly. Henkel has two main competitors: Unilever and Procter & Gamble. However, the company’s market segments are somewhat narrowed compared to Unilever, since the company produces a fewer products. Just like Unilever, Henkel’s products are sold all over the world (Alperowicz, 2013).
Competition is fierce when it comes to purchasing appliances. There are many stores out there trying to have people come into their stores to buy their merchandise versus another competitor’s store. Take for example: Sears and Home Depot. Both sell many of the same items and the same brand names and both want a customer to buy from them. Sears will offer free deliver on certain types of sale days such as one called Black Friday for orders over $399 (Sears, 2014). This brings customers into the store that will not or cannot afford to pay for delivery. Home Depot on the other hand has sales on appliances that offer savings if you spend a certain dollar amount such as $996-$1245 for a total savings of $100 (Home Depot, 2014). Both companies offer extended warranties on washers or other appliances.
Analysis of Competitive Advantages
When a company’s name is well known and have been around for years they develop customer loyalty. This is part of the company’s competitive advantages. This edge allows them to increase earnings for their shareholders without losing business. For example, consumers are generally pretty picky about which brand of laundry detergent they use. If the price of their favorite laundry detergent increases by 10 cents, they will most likely be OK with this and continue to use the product because they are loyal to the brand. In a commodity type business where competitors sell the same product, the low cost producer has the advantage. They can sell products at a discount to their competitors and still hit their margins. If the products are the same, the customer will choose the one at the best price.
Unilever’s most significant competitive strategy is mainly founded on the company’s innovative ideas that keep getting bigger and better. The strategy is reinforced by the company’s high level value for its intense marketing and advertising activities. Unilever differentiates its products from that of its key competitors, such as Henkel and Proctor and Gamble by ensuring that its products are healthier like less sodium Side Kicks. Additionally, a strong portfolio, successful restructure, focus on mass market, widening consumer base and building on brand equity are elements create relatively stronger competitive advantages for Unilever (Lingard, 2012).
Since Henkel has been around longer than Unilever, its reputation is one of its competitive advantages. The company is also engaged in the production of products that are environmental friendly, and it differentiates its products through innovation. Driving growth through innovation and strong brand is Henkel’s growth strategy.
Development of Value Proposition and Positioning Statement
According to Unilever’s financial report, 2013, the development of company’s value proposition and positioning statement is based on sustainable, profitable growth that creates long-term value for its shareholders, people, and business partners, especially through the adoption of the highest standards of corporate behavior (Penders, 2011).. Henkel creates value for its products through the development of superior brands and technologies, as well as commitment to delivery of value to its key shareholders and dedication to sustainability through corporate social responsibility (Henkel exhibits latest adhesives targeted at the filtration industry, 2013).
Both Sears and Home Depot offers several things to bring in customers to purchase large items such as a washing machine. The both have extended warranties that cover certain repairs on the washers, they offer free delivery with certain sale days and lastly, they both have major credit cards that a customer can use and make monthly payments so they have the abilities to make a large purchase with no money down. This is their value proposition that they give to each customer that comes into their stores and make purchase an expensive item like a washing machine. Both Sears and Home Depot make positioning statement in much the same way. All of their merchandise is on their showroom floors, showing the different models of the washers, the prices of the washers and what colors the washers come in. Not only are the items in a position to be seen openly by the consumer, the stores also offer sales people that will come up to a person and ask them if they need help and if they are told “not at this time”, the sales person offers services when needed (Editorial Board, 2014).
In conclusion the laundry detergent industry is one of the most competitive industries, not only in the United States, but also other parts of the world, and thus provision of value to clients in the industry depends on how a company sets itself apart from its main competitors.
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. 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