Three Year Marketing Plan for Company G’s New Product Line Company G’s mission is to improve the quality and convenience of people’s lives and they have done so with their latest small appliance, the espresso maker. It fits their goals by reducing its size with innovative design solutions and ergonomics that will put Company at the forefront of the industry. It will save time and money and ease the daily morning grind for consumers. The market in which this product will be successful is the 34-45 year old age group of men and women with a median income of approximately sixty eight thousand ($68,000) dollars. The objectives are typical. The distribution needs no change due to the distribution lines already possessed by Company G for many years and work well but a few new suppliers will need to be acquired. The price of the product will be at a price point just even with competitors and ideal for the target market. The product will remain updated in its style to keep consumers satisfied and intrigued. The promotions will cycle after the initial launch to market. Since Company G’s new espresso maker falls under the classification of shopping goods, it’s essential that it is researchable on Company G’s website and amongst other sites and publications.
While using Porter’s five forces model in consideration of competition there exist potential concerns as always. The first concern is the need for new suppliers. We will need to establish a few new suppliers that are able to forward integrate as well as be consistent in building to specifications. With Company G’s high credit rating, establishing a working relationship with the new suppliers shouldn’t hold up the start of production for the espresso maker but quality control should be monitored. The current suppliers are on board for the raw materials and are still reliable. The second concern is of new entrants which is always a strong possibility in this sought after small appliance marketplace. There are a significant amount of manufacturers that have the means to enter the market because they are currently established in other small appliance lines. Company G’s espresso maker will have to keep pace with trends in the market by taking consumer feedback and consistently updating the product to ensure it stays ahead of consumers’ expectations and remains competitive. Another concern is the consumers buying power as they are presented with other options such as competitor’s lower price point machines. The promotional sales cycles previously discussed will allow price points to be competitive to the lesser priced models and consumers will take advantage of this promotion due to the superior quality and appeal of Company G’s espresso machine. This will also allow us to test the market for marketing another model at a lower price point at a later date. The final concern is of substitutes. One such substitute is the vast network of coffee shops. However, the widely publicized recession has created an economic climate that has consumers questioning their ability to afford going to a coffee shop every day for their espresso. Consumers are looking towards more affordable home consumption solutions.
Company G’s strengths will surely secure the expected time frames in months to come. One current strength is the company’s financial status. Company G has a high credit rating and low debt to equity ratio which is supportive in launching new products and will help secure the new vendors and materials needed for the new product. The second strength is the existing core relationships it has with current supply companies. Establishing a quality supply chain has been a core competency for the company. The new product launch will not affect current production processes and there should be a smooth transition in regards to getting materials from these existing suppliers for new product launch. Finally, brand recognition is also a core competency for Company G. Company G...
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