Order from us for quality, customized work in due time of your choice.
Executive Summary
The marketing plan has been formed on Angels and the chosen product is Angels Carpet, Flooring, Lighting, Beds, Rugs, curtains and blinds which has taken the leading position in the local market. The macro-environments that influence an organisations activities are demographic, economic, political-legal, ecological, socio-cultural, and technological. These factors influence the Angels production and marketing. Angels uses producer to wholesaler to consumer channel for distributing within a short distance whereas they use producer to wholesaler to retailer to consumer where the distance is long.
This organisation has some strength, which leads them towards success, some weaknesses, which downgrade the companys brands, some opportunities, which benefit the firm and threats, which prevent the firm from reaching the goals. All these things are the situations of SWOT analysis. To make a marketing plan, Angels considers some issues like organisation, product-market, and competitive and environmental situations.
They consider financial and marketing objectives while developing marketing plan. Marketing strategy contains assumptions of deciding target market, positioning, product/service, pricing, distribution, market communication and market research. These factors further lead to a successful market plan. At the end of the planning, a good controlling can accomplish the ultimate goal of an organisation. Angels has done this step and found some contingency. If they would be solved, then they will lead them towards a fruitful end of a marketing plan.
Section I: Background
Angels is a South Wales based household goods retail store. Angela Burgess is the owner of the Angels started the business thee years back. She is well experienced in this trade as previously worked in her husbands furniture store. As a local inherent, she has well social connection and contacts. As a community spirited person part of proceeds from his show room goes to charity.
This Basic strategic marketing plan for Angels using the methods and techniques taught in academic disciplinary for 3 years and the campaign goes from current month up to the next year to April 2009 to ensure that the £1 million target is made. Preparing a marketing plan is a significant element to the overall business success of an Angels or a new product preface. Exactly is a marketing plan and what elements should a comprehensive plan include
Environment
Angels is located at Talgarth in a small town of South Wales with 28000 residents. Most of the populations are living near to the poverty line. One third of households have dual income source better livelihood. In summer it is a good tourist spot.
Mission
Angels is dedicated to give good values for its customers.
Vision
Angels is passionate about giving people good value for money and offer discounted price having a narrow profit margin. The owner is very hard working to achieving the goals.
Section II: Revenue History and Forecast
Product line
Angels product main line includes Carpet, Flooring, Lighting, Beds, Rugs, curtains and blinds. Bedroom furniture and Occasional Tables have added in its product line. It also runs an art gallery featuring local artists. The store posses to quality exclusive products but most of the middle ranges aimed to mass market.
Human Resource
Angels has three paid employees; one is carper estimator and the rest two for marketing & sales. Angela the owner works full time and at the same time her son work at the weekend and her daughter look after the accounts after school.
The present history of the Angels presents its products and services, staffing and gives a historic look at where and what initiatives have to be taken for the next three years. Some illustration of prime events would be included in hiring of its sales staff, establishment of a new distribution structure, most important to increase in marketing budget, new product introduction, newly established ventures and creation of Angels own web site including e-commerce facilities.
Angels Present tern over is £650,000 and is almost break event point. The Current profit margin is 15% after tax and all costs. Target Turn over £1m after 12 months and Marketing Budget is £20000 for advertising.
Chart projected in the financial section showing revenues for 3 years starting from the present up to April 2009 projections into the future in segment by market position. It has added marketing expenditures, expenditures as a percentage of gross sales and pre-tax Angels profit. This section Provide a good considerate of Angels past performance as it communicate to the present marketing investments.
This section should be a detailed assumption that facilities needed to add at least 3 times above the existing because Angels aimed to increase its turnover from £650,000 to over £1m after 12 months working with the numbers of various strategies would be suggested for the future. Angels realization is that sales to an exacting market are growing at a faster rate than other markets and yet spend very little marketing investment.
Section III: Strategic Issues
Angels current business environment, internal and external issues could affect next years business. This section incorporates the important factors that put limits to the marketing plan or explore detail opportunities for the coming years.
Market Situation
Current Angels principal products are Carpet, Flooring, Lighting, Beds, Rugs, curtains and blinds and other new products now are adding.
Sales of seasonal Carpet, Flooring, Lighting, Beds, Rugs, curtains and blinds through all channels are estimated to reach some £ 1.00 million in 2009 looking at 2008 sales, which include verified sales for all holiday products, the market stood at £650,000. Between 2009 and 2012, sales of Carpet, Flooring, Lighting, Beds, Rugs, curtains and blinds should increased 153.84% at current prices. The inflation rate taken in to account 1.52% and price level should gain 5.5%, which reflects a gain of 3.48% at constant 2008 prices. Thus, Angels would drive to increase its present sales at5 150.36 %.
A number of factors have contributed to the increase in Carpet, Flooring, Lighting, Beds, and Rugs, curtains and blinds sales. This report focuses solely on household products that can be assigned to some marketers by making products that can be used for more. For example, Angels rugs leverages a number of fourth-quarter holidays by selling bags of rags.
But Angels believes that in accordance with changing tastes and innovation, they are making different flavor household and giving gift items with that, which are achieving the national and international market.
Macro-environment
Macro-environment is the larger societal forces that affect the microenvironment demographic, economic, natural, technological, political, and cultural forces. Angels and all of the other actors operate in a larger macro-environment of forces that shape opportunities and pose threats to the company. In this planning it will be examined that how these forces affect marketing plans of Angels.
Demographic Environment
Demography is the study of human populations in terms of size, density, age, gender, race, occupation, and other statistics. The demographic environment is of major interest to marketers because it involves people, and people make up markets. So when Angels Household furnitures develops marketing plan, they consider the population and other corresponding factors such as the population size, age of the customers who buy Angels Carpets, and occupation- as these factors affect the selling quantity, price, quality and market demand etc.
Economic Environment
Markets require buying power as well as people. The Economic Environment consists of factors that affect consumer purchasing power and spending patterns.
Since the 1990s, South Wales consumers fell into consumption frenzy, fueled by income growth, a boom in the stock market, rapid increases in housing values and other economic good fortune. Talgarth is a small town of South Wales with 28000 residents. Most of the populations are living near to the poverty line. One third of households have dual income source better livelihood. In summer, it is a good tourist spot.
Now it is the age of squeezed consumer , which implies that people have been more careful about spending money as it is being costly to maintain a good standard of living. Therefore, while Angels develops their marketing plan, they consider the economic condition of their existing consumers and their spending patterns; the people, who cannot effort their product because of high price and the people who might switch the commodity if the price changes or gets higher.
Political-Legal Environment
Marketing decisions are strongly affected by developments in the political environment. The political environment consists of laws, government agencies, and pressure groups that influence or limit various organisations and individuals in a given society. Thats why Angels is always concerned about the enforced and changing law and order, because their business policies and marketing plans are affected by those factors.
Ecological Environment
The ecological environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Renewable resources like forests, Household furniture have to be used wisely whereas nonrenewable resources like oil, coal, and various minerals create a severe problem. As a result, the firms, which are manufacturing products using scarce resources, are facing high production cost. This type of situation often impedes firms for producing further as the rate of return and profit become uncertain and relatively low.
On the other hand, the existing industries also pollute environment. Disposal of chemical and nuclear wastes; dangerous mercury levels in the ocean; the quantity of chemical pollutants in the soil and Household furniture supply; and the littering of the environment with plastics, and other packaging materials cause a great damage to the environment. Sometimes it creates air and sometimes water pollution, which degrade the environment.
Angels is always aware of their reputation and public sentiments. For that reason, they try to make Carpets and other Household furniture without causing any pollution, and provide some social awareness program, which directly or indirectly impress the carpet consumers.
Socio-Cultural Environment
Socio-cultural forces are the influences in a society and its cultures that bring about changes in attitudes, beliefs, norms, customs, and lifestyles. Profoundly affecting how people live, these forces help to determine what, how, and when people buy products. Socio-cultural forces present marketers with both challenges and opportunities. As a result, to accomplish goal, Angels has a special consideration and for what they examine the issues of demographic and diversity characteristics, cultural values, and the consumer movement.
Technological Environment
Technological environment is the force that creates new technologies, new product and market opportunities. The technological environment is perhaps the most dramatic force now shaping our destiny. It has released such wonders as antibiotics, organ transplants, laptop computers, and Internet; horrors as nuclear missiles, chemical weapons, and assault rifles; mixed blessings as automobile, television, and credit cards.
Angels is a Household furniture manufacturer and distributor that also dependents on technological advancements. For an example, consumers may have ideas about the Household furniture including their quality, price, and availability by traveling into their web site. On the other hand, customers can use credit cards to buy their Household furniture items or Carpets. In addition to that, they use another special security system to stop stealing of Carpets.
Section IV: Competition
Detailed analysis of competitors including strengths and weaknesses. This section should include an overall competitive analysis: How do Angels Planning team stack up as well as complete profiles of Angels Planning team top 5 competitors. Angels Planning team should try to assess market share of Angels Planning team own Angels as well as the competition.
Section V: Pricing
Angels past pricing trends and next years pricing strategies should reformed this section should tie in with Angels Planning team analysis of the competition and the industry as a whole. Angels planning team should also include Angels strategy for how Angels want to be viewed in the marketplace Low-Price Provider vs. High-Price/High-Quality provider.
Well-defined prices are obviously necessary to project sales and financial performance. As discussed earlier, prices also indicate quality and product image, and depending on the channels of distribution, price will reflect the nature of the business. Pricing policies relate to bulk, wholesale, retail, and discount method used to set prices. Such methods are cost-plus pricing or setting prices to match those of competitors indicate how entrepreneurs will make strategic pricing decisions.
Pricing
Price is what a buyer must give up to obtain a product. Marketers can raise or lower prices more frequently and easily than they can change other marketing mix variables. Price is an important competitive weapon and very important to the organisations as it implies the total revenue of the firm.
Through pricing, people may have idea about the purchasing power, which also implies a countrys economic condition. Realistic pricing goals require periodic monitoring to determine the effectiveness of the companys strategy. Pricing objectives can be divided into three categories:
-
Profit oriented: Profit oriented objectives include profit maximization, satisfactory profits, and target return on investment.
-
Sales oriented: Sales-oriented pricing objectives are based either on market share or on dollar or unit sales.
-
Status quo: Status quo pricing objective maintains existing prices or meets the competitions price.
Value cost must be an issue when establishing price, because many financial terms and conditions are dependent on it. It is very natural that price creates competition in most cases and it is also the main reason behind success and failure. But sometimes organisations choose break-even pricing when they found that it is not possible to ensure profit. It should be mentioned that break-even pricing is that point, where revenue and cost get equal26.
Section VI: Positioning Statement
Market positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Thus, marketers of Angels carpets plan positions that distinguish their products from competing brands and give them the greatest strategic advantage in their target markets. As it is the matter of customer satisfaction and companys reputation, so company first identifies possible competitive advantages upon which to build the position. To gain competitive advantage, the company must offer greater value to target consumer. It may be by offering lower price compared to competitors or any other way, which attracts the consumer.
The product/Market opportunity matrix explains market penetration, market development, product development, and diversification options. While Angels market carpets, they consider the type of the product, its thickness, and its shape, used materials suitable temperature to select its packaging pattern. The packaging plays a vital role here as most of the consumers are kids and nice packaging attracts them very much
At the beginning, Angels carpet was in a big size, but evaluating the customers preferences, they found that customers prefer these carpets in a smaller so that it can be carried easily. Angels did that showing respect to the customers opinion, which increased its demand more.
Porters five-factor model
-
The bargaining power with supplier is key important issue in determining the role of business. If the switching cost is comparatively low, the business will get advantage. As the household furniture and carpet manufacturer is low in numbers, Angels will face problem if they face the cost arising due to inflation.
-
In terms of bargaining power with customer is low. As the Talgarth is a small town of South Wales with 28000 residents. Most of the populations are living near to the poverty line. In summer it is a good tourist spot. Angels will maintain enough liquidity to stop the licensing to another competitor.
-
Entrants of new threats will be lower as a local ownership.
-
Bargaining power with customer will be low as they are obligated to the certain amount of money. One third of households have dual income source better livelihood.
SWOT analysis
Before starting the operational procedure, the SWOT analysis is mandatory:
-
Strengths: No threats of new entrants as Talgarth are a small town of South Wales and the owner is a local woman. If any competitor wants to establish another similar trade, then it will be impossible to provide low cost services.
-
Weakness: The weakness is only one, if the hired machine does not last long.
-
Opportunities: Angels have opportunities to expand our market rest of the airports in London after 3 years and the global perspective is in its mind.
-
Threats: Only the Talgarth authorities will be a threat if they introduce new legislations.
Section VII: Marketing Objectives
Key objectives for Angels Marketing plan
Marketing plans are used for many different purposes. Essentially, it may be considered that they are:
-
A formal expression of the planning process;
-
A request for funding;
-
A framework for approval,
-
A tool for operational business management.
Where Angel doess planning teamr plan fit? Ideally, it will meet all four of these objectives. It is useful to look at each one in a little more detail.
Section VIII: Marketing Strategies
The strategies of Angels Planning team will use to achieve the above objectives. The difference between an objective and a strategy is that the objective states what Angels planning team will do and a strategy states how Angel will do it. Using the example above, there are several strategies, which could accomplish the objective of growing revenues by 150.36%: Increase the number of customers, increase the average order, increase pricing, enter a new market, hire more sales people, increase the number of catalogs and mailings, etc. Angels mission here is to choose the strategies that fit its products.
Ten steps to a marketing plan
Angels marketing plan start developing by answering an obvious question-what and why planning are made? To defining this concisely, it is well on its way to developing a valid plan. It than needed to work following the planning process to achieve the goals.
Do not be daunted by following list, the tasks are each relatively straightforward when Angels Planning team tackle them individually and in order.
-
Define Angels Planning business activities,
-
define the current status of the business,
-
define the external market, Angels completion and Angels Planning teamr market positioning,
-
define Angels objectives for the period of the plan,
-
develop a strategy for achieving the objectives,
-
identify the risks and opportunities,
-
develop a strategy for limiting risks and exploiting opportunities,
-
refine the strategies into working plans,
-
project costs and revenues and develop a financial plans,
-
Document it concisely.
This is an iterative process. The identification of risks and opportunities might cause Angels Planning team to go back and change Angels strategy for achieving its objectives. The plans themselves or the bottom line- the cash flow, profit or loss- might highlight new risks.
Two more steps to making it work
There are two more steps that can be added to the previous ten points:
-
Get it approved,
-
Use it.
Section IX: Marketing Budget
Chart showing past 3 years of marketing and sales expenditures plus Angels forecast for the coming year. This section should be broken out by specific marketing channel: catalogs, direct mail, publicity, exhibits, advertising, sales force, collateral materials, web site, etc. Angels planning team should analyze results as well. How much business resulted from its investment in direct. Some channels will be easier to measure than others will but Angels Planning team should try to attribute as much as possible to get a clear picture of how the allocation of Angels Planning team marketing resources affects the ultimate outcome.
Our primary objectives in this chapter are to explain what manager can do to make their company more valuable. Managers must understand how investors determine the value of stocks and bonds. If they can identify, evaluate and implement projects then they would be able to meet or exceed investor expectations. However, values creation is impossible unless the company has a well mentioned financial plan. As famous quote of Yogi Berra is Youve got to be careful if you dont know where youre going, because you might not get there. To wear out weakness and strengthening the advantages financial analysis is done by the firms.
Financial statement analysis involves, comparing the performance with that of other firms in the same industry. It is used to evaluating trends in the firms financial position over time. This study should assist management to identify deficiencies and then take appropriate actions to improve performance. Our projected financial plan has been broken down several steps. Project financial statements are used in these projections to analyse the effects of the operating plan on projected profits and various financial ratios. The projections may also be used to monitor operations after the plan has been finalised and put into effect. Rapid understanding of deviation from the plan is essential in a good control system, which in turn is essential to corporate success in a changing world.
This report has determined the funds needed to support the 3-year plan. This included funds for plant and equipment as well as for inventories and receivable. Forecast funds availability over the next five years. Our financial planning includes estimating the funds to be engendered internally as well as external sources those to be obtained from. Any restriction on operating plans obligatory by the financial boundaries must be incorporated within the plan.
Constraints including restrictions on the current ratio, debt ratio and the coverage are included. It aimed to develop procedures for adjusting the basic plan where the economic forecasts upon which the plan has based may not materialised. It also involved to establishing a performance based management compensation system. It is significantly important that such an arrangement rewards manager for serving stakeholders want them to maximum share price.
Financial Impact
Section X: Marketing Channels
The Market Plan
The Market Plan describes an entrepreneurs intended strategy. It builds on market research and distinct characteristics of the business to explain how the venture will succeed. Some issues addressed in the research section may be reserved for the market plan, such as describing a market niche. This section usually focuses on specific marketing activities. It describes pricing policies, quality image, warranty policies, promotional programs, distribution channels, and other issues such as service- after-sale and marketing responsibility. These will be described in the following paragraphs-
Promotion
Advertisings and promotional strategies must be consistent with the product or service image. For example, quality office furniture is not apt to be sold through discount newspaper ads. Choosing proper media for advertising is one aspect of the plan, but introductory strategies should relate to the start-up stage. For example, a new software program may be introduced at computer trade shows and be demonstrated at seminars offered to select clientele.
Software developers may also sponsor business contests, set up displays in bookstores or computer retail outlets, or provide educational versions of programs to universities. The promotional mix is determined by a conscious decision, selecting various promotional tools from advertising, personal selling, public relations, point-of-purchases displays, sampling, and direct-mail solicitation, among others.
Distribution Channels
If distribution channels have not been identified earlier, they must be described here. For example, unusual gift items ranging from greeting cards to imported beef fillets are sold through catalogs, but Hallmark opened chain stores in shopping malls nationwide to market gifts and greeting cards. Liz Claiborne, Inc., reached $3 billion in sales by positioning fashionable womens clothing in department stores through regional distribution centres, but recently the Angels opened a chain of exclusive stores supplemented with catalog sales.
Service and Warranty
Consideration: Most retail stores offer warranties and service-after-sale guarantees in the event a product requires repair or adjustment. Often the distinguishing characteristic of a car dealership is its service and warranty policies. Appliance dealer may also base their strategies on follow-up service and warranties. Telemarketing companies invariably offer money-back guarantees because customer cannot evaluate products before they buy. On the other hand, there are many cash-and carry discount outlets that sell seconds or flawed merchandise, and customers rarely expect warranty service.
Conclusion
Marketing Strategy has been developed, but the responsibilities have not yet been distributed; at this moment, the marketing plan will not be successful, in some cases impossible. In respect of Angels, to develop the marketing strategy of the product of chocolates that is under confectionary division, Angels has recruited different departments and persons.
The market specialists who are recruited for market analysis identify their target market. It should be done first before doing any research but it is not much costly. Positioning refers to the customer opinion. Angels Customer Care unit has to be done this job. It is necessary to do this job before developing the plan of producing further. This strategy cause some costs to the company, as it requires survey.
Bibliography
Kotler, P & Armstrong, G (2006), Principles of Marketing, 11th edition, Pearson Education, Inc. London.
Pride, W. M & Ferrell, P. C. (2006), Marketing Concepts and Strategies, 10th edition, Pride and Ferrell.
S. Richard (1999), The Definitive Business Plan, 8th Edition, Financial Times Prentice Hall, ISBN: 9780273659211, Page-12-13, 42, 64.
David. H. Holt, (2002), Entrepreneurship, 6th edition, Prentice Hall, ISBN: 81-203-1281-3, Page-121-126.
Evans, J. R. & Berman, B. (1990), Marketing, 4th edition, Macmillan Publishing Company.
Appendix
Order from us for quality, customized work in due time of your choice.