Company G

CompanyG

1-YearMarketing Plan

StudentMentor Name

Tableof Contents

Introduction 4

Product Description and Classification 4

Product Support of Mission Statement……………………………………………………………………………………………….….4

Consumer Product Classification 5

Target Market 5

Competitive Situation Analysis 6

Analysis of Competition using Porter’s Five Forces Model 7

SWOT Analysis 8

Strengths and Core Competencies 9

Weaknesses 10

Opportunities 10

Threats 11

Market Objectives 12

Product Objective 13

Price Objective 14

Place Objective 15

Promotion Objective 16

Marketing Strategies and Implementation 17

Product Strategies 17

Price Strategies 17

Place Strategies 17

Promotion Strategies 18

Explanation of Strategies………………………..……………………………………………………………………………………………19

ImplementationPlan 20

Product Tactics 21

Price Tactics 22

Place Tactics 22

Promotion Tactics 22

Monitoring Procedures 22

OneYear Marketing Plan for Company ‘G’

Briefoverview of

CompanyGis a South Korean conglomerate firm located in Seoul region. CompanyGconglomerate businesses comprises various affiliate businesses thatrange from construction industry to manufacturing of electronicproducts. CompanyGhas other interests in service industry such as insurance andengineering under the brand name ‘CompanyG.’However, ‘CompanyG’main focus is the production of electronic products that includesmart phones, laptops, operating systems and audio visual productsamong others. CompanyGis among the largest electronic manufacturing firm produced advancedelectronic products and services. The firm has solid growthstrategies globally and in 2012, CompanyGwas named the best mobile phone company globally. CompanyGhas invested heavily in advanced research projects aimed at enhancingits continued innovativeness in the electronic market. Galaxy SDG6 isone of the latest smart phone products from the firm. Samsung GalaxySDG6 is a sleek smart phone with advanced android operating system,storage capacity capable of performing numerous and complex digitaloperations.

ProductDescription and Classification

CompanyG’sGalaxy SDG6 is a smart phone with advanced digitalized features.Externally, the S6 Smartphone has high advanced camera features thatgive clearer and crisper pictures. Galaxy SDG6 has 5.1 inches touchscreen, about 577 ppi pixel densities that makes the phone easier touse. Galaxy S6 is easy to charge and has power saving mode with powerefficiency that can last 5 to 6 hours when in use. In addition, theSmartphone has incredible generation processor, a 3D gaming andheavyweight multi-tasking features. The Smartphone is integrated witha super AMOLED touch screen with 16 million colors. Galaxy SDG6 hasan advanced android operating system that help perform digitalizedtasks such as printing, downloading and other tasks such as fingerprint sensing faster. The Smartphone has a captivating displayscreen the display components are arranged beautifully to giveviewers vivid experience while indoors or outside. In addition,CompanyG’Galaxy SDG6 is secure from hacking and malware with its pre-installedmobile security platform. The phone advanced features enable users toperform numerous functions such as conducting financial transactions,learning health matters and sport among others.

ProductDescription and Support of the Mission

CompanyG Mission Statement

Weenable consumers to improve the quality and convenience of theirlives by providing high-quality, innovative electronics solutions.”

GalaxySDG6 supports the firm’s mission of providing consumers with highquality and convenience innovative products. Galaxy SDG6 is designedto give users advanced digitalized user experience in a variety ofsetting. The Smartphone can be used in various ways such as printingdocuments, downloading videos, video and sound recording andperforming online transactions faster. Galaxy SDG6 is light and has alonger battery usage power saving mode making it convenient for userswho travel regularly. In addition, the Smartphone internal featuresare protected from hacking and malware through pre-installed securityfeatures. In the modern age of anti-virus wave that have penetratedthe internet, Galaxy SDG6 is well protected saving users fromworrying about numerous data stored in the phone. Furthermore, thephone has easy to use features and this makes it good for all peopleeven those with less IT skills Galaxy SDG6 has self-directing userguide feature.

ConsumerProduct Classification

Convenience:Galaxy SDG6 Smartphone is referred to as ‘useful’ and‘convenient’ by most consumers. Initial pilot testing on July2015 survey report revealed that the Galaxy SDG6 performs most tasksefficiently to the satisfaction of consumers. According to theconsumers the Smartphone has advanced features such as brightness,light in weight, has great visual appeal and build. According to thestudy, consumers were satisfied with the phone display which isconvenient for the hand held device. Some consumers state that GalaxySDG6 standpoint and fast charging feature offers consumers withuseful and convenient features. The wireless charging feature is seenas another useful convenient aspect. However, some consumers areunsatisfied with the Smartphone size and spacing between keys thekeys need to be adequately spaced to reduce inputting errors whiletyping. Other consumers are concerned about the screen durability.

Specialty:Galaxy SDG6 offers consumers with a specialized multi-user featuresand design that are required by clients. The Smartphone has a greatexternal and display design that gives consumers a premium look andfeel. On specialty, Galaxy SDG6 has a powerful 5 megapixel videocamera, LED notification light, high capacity navigation buttons anda fingerprint sensor. In addition, the Galaxy SDG6 has functionalbuttons for volume, lock button and SIM card tray. Other features areheadphone jack, speaker and heart rate sensor. These specializedfeatures make the phone useful to consumers in many ways. The fastoperating system, high performance camera and operating system makesGalaxy SDG6 an important asset for modern day young generation inperforming numerous tasks.

TargetMarket

CompanyG Galaxy SDG6 product is an advanced Smartphone with great featuresthat suits the lifestyle of the young generation. The electronichardest tasted the middle class population with its customizedfeatures and cost. Advanced electronic devices such as Galaxy SDG6are in high demand in fast developing countries such as China, India,Middle East and Africa. Galaxy SDG6 features integrate well witheconomic needs and conditions in these fast developing countries. TheSmartphone allows users to conduct multiple functions such asaccessing emails, social Medias, carrying out official tasks such asenhancing easy printing, health wise features and conductingfinancial transactions. In general, Galaxy SDG6 features make itideal for all developing regions as it offers customized economicvalue. The Galaxy SDG6 has a high definition camera video and memorycapacity that replaces the need of video camera hard sets.

CompetitiveSituation AnalysisAnalysisof Competition using Porter’s Five Forces Model

CompetitiveRivalry:

CompanyG operates in a competitive business environment composed ofinnovative electronic manufacturing giants. As a result of thiscompetition, the electronic market keeps changing due to rapid andunprecedented production of more innovative products and services.The competition has led to increased reduplication and counterfeitproduction leading to decrease in profit margin. However, relies on improved research and innovativeness in order to remaincompetitive despite the stiff competition. The market competition isstiff and new advanced products are launched more often than before.For instance, the American electronics giant- Apple has scaled itscompetition against leading to tough battles in court overallegations of patent infringement(Porter, 2008).

In2011 Apple took to court over allegations that the firm hadstolen patents rights in the production of the Galaxy DG series.Apple keeps toe to toe with products and services in anattempt to maintain its market share. Most clients are divided overApple’s innovative products and Samsung. The competition is neck toneck and each firm counters the other firm product launch with newproducts. For instance after launched the Galaxy SDG6product in April 2015 Apple launched its iPhone 6 that has almostsimilar features as Galaxy SDG6. However, despite court battles,Apple and can be regarded as ‘freenemies’ andshare-love-hate relationship. is a key supplier for Apple’smemory appliances.

PotentialNew Entrants

Technologicaladvancements and increased development makes it easier for otherfirms to produce and design similar products like those of CompanyG.Although Samsung faces stiff competition from current electronicgiants such as Apple, Nokia, LG and Sonny, the threat of new entrantsis minimal. The threat on new entrants is low because there are manyplayers in the market offering the same products and services leadingto price war and market share competition.

Inaddition, major electronic giants in the market such as Apple andCompanyGown the supply chain and this significantly reduces the productioncosts. In the same line, new entrants might face uphill tasks inestablishing their brand name as the top electronic giants.Prevailing firms in the electronic industry have established market(loyal customers), brand name and contract with dealers. Furthermore,large capital investment is required which is invested in researchand development (R &ampD) and marketing this is a major challengeto new entrants (Porter,2008).In addition, substantial amount is required for positing brands andmarketing. Another challenge is existing barriers in the industryespecially due to patents and rights. However, there are eminentthreats of new entrants from Japan, China and Europe. For instance,

Thebargaining power of suppliers

CompanyGenjoys high bargaining power over suppliers because it owns most ofthe supplies. This means that CompanyGsuppliers have low bargaining power. This backward integrationapproach helps in maximizing cost efficiency and rising profitmargins. In this way, CompanyGis able to sell its electronic devices at cheaper prices than most ofits competitors like Apple. In the electronic industry, CompanyGwith its main rival Apple is the main suppliers and thus has highbargaining power. However, because of the high bargaining power thatCompanyGhas over its suppliers, it is able to reduce production cost andconsequently price of its products. Apple’s products are relativelycostly compared to CompanyGdespite the similarity in features. CompanyGand Apple control most of the supply market and there is high demandfor electronic devices. As such, CompanyGhas a high bargaining power in the market (Porter,2008).

Thebargaining power of buyers

Thepurchasing power of electronic products is relatively high amongbuyers. Many people now prefer Smartphone due to the numerousmultifunction tasks. Consumers have high bargaining power since theyare the ones in need of electronic products clients can switch tobetter products and services if one firm offers low quality brands orcustomer service. For instance, in the electronic market consumershold high bargaining power since they can chose products from onefirm or the other (Porter,2008).

Appleis a market leader in electronic devices due to brand but CompanyGoffers similar products at a relatively cheaper price. In thiscontext, CompanyGbuyers command high bargaining power. However, if the CompanyGbuyers were to consider buying Apple’s products, they would suffersignificant high costs of switching. CompanyGhas its own distribution chain and suppliers and this allows them tohave low prices from the product and for better quality. In thiscase, it is possible for CompanyGto band suppliers together and offer them volume discounts.Similarly, since CompanyGdistribute sits products through channels, buyers can be groupedtogether to benefit from sales volume or lower prices.

Substitutes:

Thethriving competition in the electronic industry makes it impossiblefor substitutes. There are major players in the Smartphone industrywhich makes the prices relatively low and affordable. Furthermore,the market is saturated with good quality Smartphone devices withvaluable features that satisfy clients’ needs. In addition, thereare no real substitutes for mobile phones. While tablets and iPadscould be used as substitute for cellphone, they are inconvenientwhile using. Before smart phones such as Galaxy DG series werelaunched in the market, consumers relied on less advanced cell phoneswhose operating system and features were limited. Previous phones didnot have android features and this made them slow in operations.Furthermore, previous cell phones such as Galaxy Texto had weakercamera video feature and not compatible with major applications suchas social media sites.

Inshort, before the launch of android Galaxy DG series, consumers usedinferior and less function cell phones. The new Galaxy androidoperated series offers consumers innumerable operating features thatmesh well with the daily needs of modern economy. However, thedynamics in the electronic industry is unpredictable and new advancedelectronic products are launched in the market more often thanbefore. Research in technology indicates that in the near future,some evolved electronic devices could replace cell phones such asiPods and tablets. In the same note, other advanced devices thatintegrate more multiple features are eminent and this makessubstitution a more likely scenario.

SWOTAnalysis

STRENGTHS*indicates core competency

  • High innovative products

  • Low price for quality products

  • Product diversification

WEAKNESSES

  • Low profit margin

  • Over diversification

  • Patent infringement

OPPORTUNITIES

  • Growing mobile industry

  • Business opportunities in developing countries

  • More patents as a result of extensive investment in R &ampD

THREATS

  • Saturated markets with smart form devices

  • Dynamic and rapid technological changes

  • Patents infringement

Strengths

Highinnovative products

CompanyG has invested heavily in research and development. Advanced researchleads to innovation which is integral in the technology industry. spent heavily in R &amp D over the past two years and thishas led to increase in number of patents. In return, high investmentin research and development has increased the total revenue.Consumers are attracted to these innovative products that haveadvanced digitalized features. The overall strength is that enjoys significant competitive advantage in the market in comparisonto its main competitors. Innovation and heavy investment in researchand development is considered a key competence for company G becauseit makes the firm have a more leveraging bargaining power in themarket.

Lowprice for quality products

CompanyG owns most of the raw material supply firms and this makes it have ahigh bargain power. In addition, has built its productionfacilities in regions that allow low cost of production. This enables to maximize on products quality while minimizing productioncost. The overall advantage is high quality products at reduced pricefor consumers. This integration approach has made earnhigher profit margins than its main competitor. In the same line, lowprices present with a competitive advantage in the marketover firms selling similar products at higher prices.

Productdiversification

CompanyG has wide range of products and services. In most cases, produces most of its components parts and this enables it to retainits unique production technique as well as saving production costs.In addition, diversification helps the firm to make good marginalprofits even when one product fails. For instance, ‘’manufactures operating systems and memory chips which are sold tocompetitors thus giving the firm a more leveraging power in themarket and production field. This is another key competence for that makes it more competitive than other firms in themarket industry.

Weaknesses

Lowprofit margin

Although commands large revenues in the market due to its overdiversified products and services, has poor pricingstrategies and this has seen its profit margin dwindling. However,its Smartphone business is profitable due to low production costs.The low profit margin is due to increased competition in the marketleading to price cuts. Low profit margin is a weakness to because it denies the firm the much needed revenues for businessexpansion.

Overdiversification

CompanyG has diversified extensively on various products and this makes itsbrands weak. In part, over diversification means that spends considerable time in developing other products rather thanenhancing brand recognition and loyalty for few products andservices. Over diversification is a weakness because losesfocus on competitors’ threats (Porter,2008).

Patentinfringement

CompanyG has been sued for patent infringement and this is detrimental tothe firm reputation. In one instance, the firm was forced to pay hugeamount of damages to its main rival. Patent infringement by otherfirms who steal ’ intellectual rights through productdesign have negatively affected ’s market competitiveness.

Opportunities

Growingdemand for quality Smartphone with high processors

Themarket is yet to get enough supply of quality and high processingsmart phones. The current products are limited in quality andprocessing capacity. However, as more investment is made in researchand development, more advanced smart phones will be manufactured. Themarket demand for android phone is increasing daily whiletechnological changes make the old devices obsolete. Therefore, thereis ever growing demand for smart phones with high processing capacityand more integrated features as world population rises (Porter,2008).

Businessopportunities in developing countries

Developingeconomies presents a great opportunity for . In particular,developing economics have great production environment thatguarantees low production costs. For instance, labor and energy costsare low in developing regions such as Asia, Africa and Latin America.For this reason, has vast unexploited market opportunitiesfor its advanced smart phone products.

Morepatents as a result of extensive investment in R &ampD

CompanyG has invested heavily on research and development and this presentit with more opportunities for advanced products. Furthermore, morepatents mean that the firm has more competitive advantage in themarket which translates to more market share, brand loyalty andincreased sales volume. In addition, possesing more patents meansthat is in a position to ‘acquire’ other firms thusmaintaining its hegemonic might in the electronic industry.

Threats

Saturatedmarkets with smart phones devices

CompanyG faces significant threats in the market due to increasedcompetition and production of similar devices. It is estimated thatthree firms have developed similar products such as Galaxy SDG6 andthis poses significant threat to through price cuts. Thissaturation is only in developed regions but there is less saturationin developing regions. However, competition has also traversedborders to regions of low saturation and this shows that sales willnot be growing higher anytime soon.

Dynamicand rapid technological changes

Theelectronic industry faces significant dynamic and frequenttechnological changes and needs. Each day, consumers are faced withrapid changes in social, political and economic issues that requiremore advanced devices. The effect is that electronic firms are forcedto adjust to these technological changes as they occur. This threatposes significant challenge to product Galaxy SDG6. Thesetechnological changes not only cause some devices to become obsoletebut also increase costs of production leading to wastage and lose.

Patentsinfringement

Increasedcompetition and threat of new entrants in the industry posessignificant risk on patent infringement. There is significant threatfrom underground counterfeit firms producing similar devices such asGalaxy SDG6. The results are that this will lead to low sales volumeas competition and counterfeits benefit from the firm’s patentproperty. In addition, patent right infringement means more lawsuitsand hence more wastage of resources and brand reputation.

MarketObjectivesProductObjective

Marketshare

Thesole objective of this marketing plan is to have a competitive marketshare in the industry. plans to have over 40 percent of themarket share when this product will be launched in the market. Thisfeat will be achieved through vigorous marketing campaigns, onlineadverts and discounting in order to attract more clients. plans to achieve the 40 percent market share in one year after theproduct is launched. This means that if Galaxy SDG6 is launched nextmonth in august 2015, it is expected to hit 40 percent market shareby close of August 2016. This market share will be achieved bytargeting the young and populous generation in developing countriessuch as India, China, Africa and Latin America.

PriceObjective

Profit

Themarket price for Galaxy SDG6 will be launched at $34 per piece but itis expected to change due to price competition. Currently the mainrival offers $46 per piece for similar Smartphone while the lowestcompetitor offers $30 per piece. In the first year, profit margin forGalaxy SDG6 is expected to be significantly low at 15%. However, itis expected that as market share stabilizes to the projected 40percent after one year, the price per piece for the Galaxy SDG6 willrise to $39 in order to offer profitable margin. The price giveninitially is promotion price aimed at attracting customers andshielding the new product from price competition. In August 2016, theGalaxy SDG price is expected to hit $39 per piece. At this price will be able to have optimal sales volume and increasedrevenue to cover production costs, marketing costs and retain aprofit margin of 50%.

PlaceObjective

Distributionoutlets

Distributionchannels are important in achieving various product objectives. Gooddistribution network ensures that a business entity achieves itsgoals of higher market share, increased sales volume and subsequentlyincreased sales revenue(Kotler, 2012).In this case, in place objective, wishes to establish smallretail outlets in major towns in targeted developing counties. Thegoal is to have many retail outlets that will serve two functionscustomer care and distribution of Galaxy SDG6 smart phones. However,this will be achieved in phases before the launch of Galaxy SDG6inAugust 2015 in the market half of the expected retail centers willbe operational. In this case, 100 retail centers will be establishedbefore the product is launched and the next 200 outlets will belaunched after six months. This means by the close of August 2016,there will be 300 retail outlets distributing Galaxy SDG6 across theglobe.

PromotionObjectiveBrandawareness

CompanyG wishes to embrace extensive online advertisement to enhance brandawareness for Galaxy SDG6. Prior the productGalaxy SDG6is launched in the market, extensive online adverts will be made onfive major social sites. wishes to use the Company websiteto inform clients about the new product. In addition, only adverts onface book, linked in, twitter, YouTube and Amazon will be made. Eachonline site is targeted to attract 5million customers each month.After six months by Mach 2015 online adverts will have hit 100million viewers.

MarketingStrategies and Implementation

MarketingStrategies

ProductStrategies

Moredistribution networks and customer care centers

Awell networked distribution chain for Galaxy SDG6 will make theproduct readily available to potential and existing consumers in thetargeted regions. This strategy will increase the market shareobjective for Galaxy SDG6 product (Kotler,2012).

Lowpricing strategy:

Lowprice will be offered for Galaxy SDG6 in order to attract sizablemarket share of customers. Consumers value quality and subsidizedprices. will attain more market share when low prices areoffered for the new Galaxy SDG6 product.

Acquiringcompetitors:

CompanyG would enlarge its market share by acquiring other firms operatingin the targeted areas. Acquiring other firms helps in acquiring theother firm’s customer base network. In addition, acquiring otherfirm helps in reducing competition and thus more market share.

PriceStrategies

Objective:maximize Profit margins

Lowpricing strategy:

Lowprice will be offered for Galaxy SDG6 in order to attract sizablemarket share of customers. Consumers value quality and subsidizedprices. The quality of product offered by commands highquality and is traded at low price hence more client base. Even iflow prices are offered, more sales volume will be recorded and hencehigher profit margins.

Discountand promotion gifts

Afterthe launch of Galaxy SDG6, clients will be given promotion offerssuch as free cover cases, t-shirts or extra battery. Promotion isinfluential in familiarizing new product brands to existing and newcustomers. Similarly, promotions also influence customers from rivalcompetitors to switch brand. The overall effect is enlarged marketshare, more sales, more revenue and more profits(Kotler, 2012).

Variablepricing:

Variablepricing means carrying the product price bases on current competitionin the market, production cost and market share. When varying pricingstrategy is applied will be able to adjust the productprice in accordance to the expected profits rather than leaving it tomarket forces.

PlaceStrategies

Objective:to increase distribution outlets

    • Setting up more retail and customer care outlets this increases product supply to consumers and ensures contestant supply.

    • Online advertising online advertising is important in informing potential and existing clients on where products are available.

    • Collaborating with other firms such as supermarkets, electronic distributors and retail vendors. This ensures that Galaxy SDG6 product is taken near to consumers.

PromotionStrategies

    • Free gifts for referrals and for existing customers

    • Sharing Galaxy SDG6 product through social media and paying the users.

    • Personal selling existing clients play important role in selling and recommending new products to other clients. will establish loyal clients who will be involved in personal selling at a fee.

Explanationof Strategies

Awell networked distribution chain for Galaxy SDG6 will make theproduct readily available to potential and existing consumers in thetargeted regions. This strategy will increase the market shareobjective for Galaxy SDG6 product. Consumers value quality andsubsidized prices. will attain more market share when lowprices are offered for the new Galaxy SDG6 product. Acquiring otherfirms helps in acquiring the firm’s customer base network andmarket share. Promotion is influential in familiarizing new brands toexisting and new customers and hence more sales volume and profit.Setting up more retail and customer care outlets this increasesproduct supply to consumers and ensures contestant supply (Kotler,2012).Online advertising is important in informing potential and existingclients on where products are available. This ensures that GalaxySDG6 product is taken near to consumers. Free gifts and increasedpersonal selling are important strategies in promotion to achievedincreased brand awareness.

MarketingImplementationProduct Action Plan

Tactic

Due Date

Responsible Party

Setting up more distribution networks and customer care centers

March 2016

Global Marketing manager

Design a price variation plan

August 2016

Sales and Marketing department

Acquire other competitors in the targeted regions

March 2016

Company G management Board

Price Action Plan

Tactic

Due Date

Responsible Party

Implement low prices during product launch

August 2015

Sales and marketing manager

Offer free gifts to customers

August 2015

Sales and Marketing department

Design a price variation plan

August 2016

Sales and Marketing department

PlaceAction Plan

Tactic

Due Date

Responsible Party

Setting up more retail and customer care outlets

August 2015

Sales and Marketing department

Setting online adverts to inform potential and existing clients on nearest distribution outlets

August 2015

Sales and Marketing department

Collaborating with other firms such as supermarkets, electronic distributors and retail vendors.

August 2015

Sales and Marketing department

Promotion Action Plan

Tactic

Due Date

Responsible Party

Giving free gifts for referrals and for existing customers

August 2015

Sales and Marketing department

Developing online traffic by encouraging sharing of Galaxy SDG6 for discounted product rates based on points awarded for sharing

August 2015

Sales and Marketing department

establish loyal clients who will be involved in personal selling at a fee

August 2015

Sales and Marketing department

Monitoring Procedures

Monitoring Activity

Due Date/Frequency

Responsible Party

Evaluating product penetration in the market (Market share objective for the product)

Quarterly

Sales and Marketing department

Assessing the profitability of the product based on pricing strategies used

Monthly

Sales and Marketing department

Assessing the distribution network for the product

Monthly

Sales and Marketing department

Assessing Galaxy SDG6 brand strength

Quarterly

Sales and Marketing department

References

Kotler,Philip &amp Keller, L. Kevin (2012). Marketing Management (14e).Pearson Education Limited.

PorterMichael E. (2008). &quotThe Five Competitive Forces that ShapeStrategy&quot, HarvardBusiness Review,January 2008, p.86-104.

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