PRICING STRATEGY
Pricing is one of the core elements of marketing mix strategy. This element produces a turnover for the business. This element6 must support the other elements of the marketing mix such as the product, the place and the promotion. Though pricing of the product is difficult in the company but it reflects the relationship between the supply and demand chains (Kotler & Keller 2010). This company use variety of pricing strategies that are based on the company’s distinctive marketing target and objectives. The company largely uses the premium pricing strategy which involves the act of the company to keep the price of the products artificially high so as to promote favorable insights among the buyers basing exclusively on the price. This act is aimed at exploiting the trend of the customers to assume that the expensive products being sold by the company are of brilliant reputation than that of other companies producing the same products (Peter et al 2016). This strategy helps create an exceptional image in the eyes of buyers as they tend to believe that these goods produced by the company are reliable, more desirable with extremely high quality and distinction. This strategy will attract customers who are willing to pay any price for a tendency which is the objective of the premium pricing strategy. The mostly target customers are the youths as they are unique and they are the generation which wants the latest trends as they are constantly evolving with time. This is quite a challenge to the company since they have to ensure that they entertain their customers by ensuring they innovate and create goods according to the current trend. Around 150,000 customers will be needed so as to enhance the company to attain its financial goal. A properly planned marketing strategy is highly recommended for the company so as to ensure that they are able to meet this demand of goods without changing the quality of the foot wares produced.
Distribution strategy
Distribution strategy in the company is important as it involves a strategic management of the manufacturing company specifying the methods that the company intends to use in transferring its goods to its customers. Distribution channels may be in direct or in-direct form that is involving of the intermediaries. Use of the best distribution channel enhances the company to expand its reach as well as developing its revenue. Therefore in designing a distribution strategy for the company I would recommend the use of both direct and indirect sales distribution. This is because the use of direct sales alone may not enable the large targeted group of consumers to be reached. Setting up of exclusive distribution where the company selects some intermediaries who specifically deal with the company’s products with the exclusion of other companies goods and this strategy will enhance the distribution of the highly quality goods (Peter et al 2016). Thus in setting up of different retail outlets in different geographic areas may be the core distribution strategy. This would enhance more potential customers all over the country to be reached hence increasing the expansion of customers reach. These outlets will buy goods from the company in wholesale but they will sell the products at retail to the customers. This is effective as customers are able to get the company’s products at their reach. Another core distribution channel that I would focus on is the use of the internet by the use of e-commerce where advertising would be done online and also the selling and buying of the product would take place online while the delivery may be made by the company’s distributors. This is the current trend in market as the current world is globalizing hence most of these young adults mostly spend their time in the internet.
As a result of the internet use, the targeted market will be able to enquire and order for goods as they are assured of the systems convenience since one can purchase a good at the comfort of their homes with no need to travel to search for one. This therefore will require the business to create an ecommerce website where the online distribution occurs both to distributors and top end-users directly.
Integrated marketing communications plan
This is the incorporation of both the modern and the traditional marketing strategies that are used to optimize the communication of a reliable message that conveys the organization’s brand to its customers. Integration of different communications methods has a greater impact to the customers as it adds value and enhances successful information transfer and formation of clearer and faster impact than that made individually. Thus the company in its plan decides on the various campaign mediums that they need to integrate so as to achieve the highest information transfer to the public. Advertising is one of the strategies that can be employed in the company so as to increase the sales (McALISTER et al 2016). This communication plan is interested on the devoted young adult social media users who are between the 18-45 years age gap. They are mostly found in the internet as most of the technology has changed thus they are able to visit the ecommerce website as well as shop online. They are also constantly involved in using the social media such as the Facebook, Google+, twitter to share their experiences, likes, dislikes and ratings of the company’s product and this helps the company to advance on their products and also this helps to increase awareness among the customers. This can be integrated with the use of televisions that is the broadcast media and the print media so as to enable the company to reach the targeted market (McALISTER et al 2016).
Public relation will major its focus on creating mass media exposure where both the store and online sales will increase for the company not only in the manufacturing company but to the other extensive outlets. This will involve sending representatives to morning talk shows in the television and in radios with the sharing of links in the social media which will ultimately lead to the company’s website.
Direct marketing and sales promotion will be carried out in conjunction with the public relations strategy. This will basically involve the creation of end user oriented promotional offers of the product where the promotions will be heavily invested during the selected time of the year especially on the media coverage. Social media will offer promotion through the Facebook and twitter followers who share most on the link of the company’s website. The promotions will be directly distributed to the direct targeted market. In store promotions will be offered at any extensive outlet of the company at a certain festivity period in a year.
Personal selling where the company will assign some sales persons a task to undertake personal selling where they are able to personally advertise the company’s products. This allows room for interactive marketing as the customers are able to enquire of the prices and more clarification on the product. Different department should be tasked with the responsibility of the media campaigns where they should submit their reports monthly so as to track the progress. Sales department are the core managers of this marketing plan. The marketing plan should be undertaken for duration of one year from which another marketing plan ought to be made from evaluation of the success of the previous plan.
To evaluate the plan there will be pre and post testing of the entire plan so as to get the right measurement of the success or failure of the plan. Formation of focus groups where the feedback from the groups after the direct and sales promotion is analyzed as well as the social metrics to measure success level.
BUDGET
|
medium |
plan |
cost |
|
Google add words |
366 days |
$30,000 |
|
TV Ad |
30 ad annually |
$500,000 |
|
video production |
4 mins |
$250,000 |
|
print production |
28 pages |
$1,000,000 |
|
social media |
Facebook, twitter |
$3,000 |
|
public relation |
social media, broadcast |
$4,000 |
|
direct sales |
in store |
$3,000 |
|
sales promotion |
price cut off |
$3,500 |
|
personal selling |
sales person |
$3,000 |
|
total |
expenses |
$1,796,500 |
References
Kotler, P. Keller, K.L. (2012). Marketing management. Retrieved from j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwiZs8P9r53NAhUNahoKHSMRD rMQFgglMAE&url=http%3A%2F%2Fsocioline.ru%2Ffiles%2F5%2F283%2Fkotler_keller_- _marketing_management_14th_edition.pdf&usg=AFQjCNFtNoZB5yZxFZlfFFTmtVPE- LBA4A&sig2=v4wSPIFCxknVH473TeT3ZQ
McALISTER, l, Srinivasan,R, Jindal, N, $ Cannella, A, A. (2016). Advertising Effectiveness: The Moderating Effect of Firm Strategy. Retrieved from http://eds.b.ebscohost.com/ehost/detail/detail?sid=20834682- 053b-49d1-ad2e c786ffd1a519%40sessionmgr120&vid=0&hid=121&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d #AN=11 4259362&db=bth
Peter, J.P, Olson, J.C, & Grunert, K.G. (2010) consumer behavior and marketting strategy. Retrieved from. http://www.academia.edu/6078770/CONSUMER_BEHAVIOR_and_MARKETING_ST RATEGY_CONSUMER_BEHAVIOR_and_MARKETING_STRATEGY
