Plans For Introducing The Laptop Bags In UK Marketing Essay

Plans For Introducing The Laptop Bags In UK Marketing Essay Introduction Marketing is defined as, A co-ordinated process which makes the best use of available resources to present a product proposition to a target market in order to achieve objectives, and then evaluating how successfully this has been done. Peter Verwey, TMA marketing manual Philip Kotler defines Marketing as the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers, profits to the producers and benefits for the stakeholders. Marketing is the performance of those activities which seek to accomplish an organizations objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client, says E. Jerome McCarthy of Michigan State University. http://www.audiencesni.com/library/lb-downloads/reports/Strategic%20Marketing%20Planning.pdf As the mission statement of Royale Company is To excel in customers world Vision: Making a difference with great quality and value for the products Values: Quality, value, innovative, service and integrity. Royal company does ensure and strive to get their vision of excelling customers world are measured in depth to the way they run their business and the way they serve their customer be it home or abroad. Royal company mission and values are also met by ensuring that they meet customers expectation with appealing, superior quality products at value for money. Marketing Environments of the UK Royal company has decided to launch a fashionable and convenient bag designed for laptop known as L bag As per the marketing study it is said that people want their laptops and phones to be functional and fashionable and there is a real crossover in product at the current market. UK market wants product to associate them with a brand image. People make choices in what technology they buy based on the feel good factor and what it says about image or personality over what it can actually do. Which is why Royal company has decided to design in different colours, for the sophisticated, the understated and the loud. As tech gets smaller, portable, part of fashionable image and essential and hence fashion industry in generally is waking up to technology. http://news.bbc.co.uk/1/hi/technology/3224441.stm There was a real niche in the market for a lightweight stylish bag that had the technology in it to hold a laptop, but also the technology in it so that if you dropped the bag, the laptop wouldnt break. As young generation in UK are finding it essential and easier to carry the laptop with them around as it is getting slimmer and lighter. With wi-fi hotspots, allowing high speed net access without wires, popping up around the country in bars and cafes staying connected on the move is becoming an important part of it. Laptops are becoming a fashion accessory in UK where people do not carry an ugly bag with a well fashioned dress. All the design that went into laptops bags was focused on the travelling businessman but no thought that now a day laptop is used by younger generation as well which would be a easy target for new product L bag. http://news.bbc.co.uk/1/hi/technology/3224441.stm Marketing Strategy: Whereas marketing strategy is a systematic approach to a major and increasingly important responsibility of management: to position and relate the firm to its environment in a way which assures its success and makes it secure from surprises Ansoff and McDonnell (1990). Every organization needs to know the market very well in order to do succeed in the business and Royal Company is no exception to this. The main features of market orientation are as follows: Customer Focus: Royal Company strives towards delivering the best products as per the needs and requirement of the customers. Competitors Orientation: In retail business Royal Company has survived and served customers for many years. Inter Functional Coordination: It needs to have excellent inter functional coordination to provide smooth service to customers. It means working together as a team. Marketing Plan for introducing the Laptop bags in UK market: In order to formulate the marketing plans as the UK market is very competitive, Royal Company must use their financial resources to create and sustain a high profile with multi level marketing campaign to raise their profile in UK and establish the idea of quality bags for laptop. Need to be innovative in the market are as follows: Business survival For better returns To take advantage of opportunity For profitability Competitive Advantage Macroeconomic Analysis is divided into internal environment and external environment. Internal environment consist of Firms own management structure, the strategies and objectives, the different departmentation within organization. The ability to serve the customer is mainly affected by the internal factors. The external factors mainly consisted of suppliers, distributors, customer, competitors and publics and also the group of shareholder. On the other tool that will be used in these areas is Porters five forces. Just as SWOT and Porter five forces is used to identify new product, services and how a business can be profitable in the market. A PEST Analysis of the industry examines the, social, economic, local, technological, national, political, and global influences to understand opportunities and threats well. Retail industry had an assumption that to some extent these factors (political, economic, social, legal and environmental) will be applicable. Political: It influences organizations in many ways. This factors can create advantage and opportunity for any new organization. They can pose restriction on duties and obligation on organizations. Royal Company has to know the political environment in UK very well such as market regulations, legislation such as the minimum wage and anti discrimination laws, trade agreements and restrictions. Economic: Retail industry is very sensitive to interest rate and also fairly recession proof. Because of September 11 events, stocks were plummeting and prices are low all time due to this the world economy have suffered heavily. However after the September 11th attack the world economy is up and the retail industry are boosting again and consumers are becoming more optimistic. An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence against a booming economy. Social: There are changes in consumer taste and lifestyle present both opportunities and threats for the retail industry. People are know more thinking about the fashion and brands image which they can easily afford and have them as well. Population changes also have a direct impact on organizations. Changes in the structure of a population will affect the supply and demand of goods and service within the economy. Technical: the way a business would operate has changed greatly due to Technology. Royal Company needs to use this available technology such as the internet and other information exchange system, incorporating a multitude of software which helps to manage the business. In retail industry the introduction of online shopping via internet is now a common place for shopping. IT system undertakes the companys administration, management, and paperless operations which are monitored by the secured sever, it provides a flexible base for running the business. UK is at the forefront of technologically developed. Hence Royal Company gets an advantage of developed logistics and distribution channels already in place. One other tool that will be used in these areas is Porter Five Forces. This model can be used to good analytic effect alongside other models such as the SWOT and PEST analysis tools. Five Forces analyses five important in the determination of competitive power and these are: Buyers power: Suppliers power: Rivalry among competitors: Threat of new entrants: Threat of substitute products: Below is the diagram which describes the Porter Five Force Model: Diagram1: http://colette3010.files.wordpress.com/2009/10/5forces.jpg The Problems which Royal Company will be facing and threats of substitute supermarkets, supplier power, buyer power and the power of customer can be explained by Porters five forces. Buyer power also decides the prices in the market. If products are expensive than other products will be purchased. This mean market is disciplined which make the pricing disciplined as well and stops them to destroy the market in a profit war. Supplier power is an essential part of this model. Suppliers demand that retailers should pay them certain price for their service and goods supplied. Threat of substitution is always been affecting any organizations, however they try to ensure brand image and quality by having the best value for the products. Competitors and new entrants is also another threat for Royal Company as they acknowledge these seriously, and therefore the company always plan to improve upon developing its stores. Royal Company can determine its strength, weakness, opportunity and threats to its business by using SWOT analysis: STRENGTHS various range of products Available 24 hours a day Cash Flow Position is strong Increase turnover and trading profits Balance Sheet is strong Leading Supermarket Chain Awareness of Brand Human resources Online Shopping capability to turn assets into advantages OPPORTUNITIES Globally Developing brand alertness Forming New Markets Globalizing the Market Alliances Innovation Growth in Low cost brand Diversification Offering available new markets with advanced margins WEAKNESSES requires local awareness of customers and culture overseas brand THREATS existing New competition Raw materials prices are instable downturn in Economic Globalising the shifting market Takeover bids Low cost brands from Far-East Extremely high competition for resources and customers Product Sales Cycle: Diagram2: http://dpl.kaist.ac.kr/DM_wiki/images/d/d5/Product_Lifecycle.gif Introduction Stage: In the introduction stage, Royal Company seeks to build product awareness and develop a market for the product which is described as As Royal Company wants to enter the UK market, it has to make sure that the product it wants to launch should be according the needs and style of the UK people. Royal Company has made a market research and aspires to launch Laptop Bag in the market. http://www.quickmba.com/marketing/product/lifecycle/ The impact of Marketing Mix is as follows: According to kotler, el al (1996), marketing mix is a social and managerial process by which individual and groups obtain what they need and want through creating and exchanging products and value with other. It is an important tool in marketing that helps a company to identify a number of variables that stimulate purchasing decisions for any product. There are 4 Ps in marketing mix notably Product, Price, Place and Promotion. Royal company has used this tool to enter UK market with launch of new product line to target people from all walks of life to puruse them to purchase the product known as L bag. Development of Product with description: L Bag: http://www.purseblog.com/images/Burberry_Denim_Messenger_Diaper_Bag.jpg Traditionally it is believed that a good product will sell itself. It become easy to lauch a product which is wanted by customer to make go along with the market and fashion trend. Basic features of L bag is that: It has a main compartment with a padded sleeve which can carry 17 inches laptop so others like 14, 15, 12.1 inche and smaller could fit in it easy. A second compartment which carries neccessary power adapters and other accessories of the laptop. It also has to be strong that it could hold the weight of laptop plus some other neccessary things. Side compressions strap A third small compartment with small sections to hold mobile, pens, credit cards, coins. Basically like an organiser. Benefits of L bag: It has special disk jackets inside where one can carry various discs. USB memory sticks holding has small pockets for it. Dimensions is 17 x 12 x 6 inches, 43 x 30 x 15 cm which can be used by commuters cause it will be smaller than the minimum dimensions allowed in flight cabin size which acoording to the new rule passed on 7th January 2008 is 56cm x 25cm x 45cm(www.bbcnews.co.uk) then even traveller could use them. Mp4 and Mp3 music Holder with adjustable strap to adjust with different sizes. Shoulder strap on the bottom has Mp4 and Mp3 controller. Contents of the bags is felt with riveted on sensitive parts of the bags. Carry a 17 inch laptop with its accessories. It is in fashion and matching the latest clothing trends It serve more than one purpose. Benefits of the L bag over traditional backpack are: Less straps hanging on the outside, which thus means less danger of getting stuck The plain shape make them smaller when empty It is quicker to get things in and out of the bag thanks to the big lid It doesnt have to be carried on the back making it easier to protect the contents from pickpockets It does not have to be taken off when reaching for its content, just swing it round. Pricing Strategies: Price is one factor in marketing mix which triggers the purchasing power for any customer. It has always been an attraction to consumers and a challenge to the product manufacturer. If prices are high then it wont sell which can be fixed by reducing the prices. http://freepresentationslides.blogspot.com/2008/09/introduction-phase-of-product-life.html Developing Marketing Strategies and Plans from Khawaja Naveed A rapid penetration strategy consists of launching the product at a low price and spending heavy level on promotion. Royal company has used strategy that promises to bring about the fastest market penetration and the largest market share. This strategy makes sense when the market is large, the market is unaware about of the product, and most buyers are price sensitive there is strong potential competition. The introduction phase starts when the new product is launched. In this introduction phase, profits are negative or low because of the low sales and heavy distribution and promotion expense. The promotion expenditures are at the highest ratio sales, which conducted to New and unknown product should be passed to customers. Induce trial of the product. Secure distribution in retail outlets. L bag is launched for younger generation in UK. As the price is very sensitive factor in marketing , it is hence important to price the product right. http://freepresentationslides.blogspot.com/2008/09/introduction-phase-of-product-life.html It is difficult to know the market value of new product hence a soft opening is recommended where u faces a small group of customers rather than the big crowd which one might not be able to handle on the first day of business. Promotional Strategies: For a marketing position to be sustained it should be linked with a promotional strategy and these are basically two promotional strategies that could be selected and these two are Push and Pull strategies. The Push promotional strategy relies on the companys sales force and its promotional activities to be able to create a consumer demand for a particular product and it aims to sell directly to the consumer without any distribution channels. The Push strategy tends to rely on high advertising and consumer promotion to be built a consumer demand for a product. Product requires innovative, creating marketing solutions in order to successfully differentiate them from competing product in the market place. One of the best ways to introduce the product in the new market with new product is through product publicity. One of the methods that Royal Company can use is through Editorial coverage which can be achieved to the maximum through newspaper and magazines. Place / Distribution Strategies: Putting the right product in the right location at the right time is a daunting challenge that involves a delicate balance of demand. Strategic distribution is a competitive advantage that accrues generally from the configuration of a distribution network ( who, what, where, when ) and more specifically, from the selection of partners ( middleman ) who intermediate between the company and the customer by performing necessary fulfillment and service activities. Royal companys distribution strategy is largely defined by its decisions on the number and type of customer interfaces. There are two fundamental fulfillment such as: Direct distribution Indirect distribution In general, both direct and indirect distributions are becoming integral to most companies retail distribution strategy. At this level, there are two types of distribution which Royal Company can select from: Exclusive distribution (retailer carries only one brand) Shared distribution (all major brands are carried) As L bag is entering UK market with new image, Royal Company has opted for Shared distribution along with other brands. Assuming denim so widely accepted and United Kingdom has 73% of the population n using denim as suggested my Global Lifestyle Monitor. http://faculty.msb.edu/homak/HomaHelpSite/webhelp/Distribution_Strategy.htm Branding: The American Marketing Association (AMA) defines a brand as a name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. Royal Company sees branding not as a measure to target market over the competition, but as a solution to the customer problem. Royal Company has worked towards branding to ensure that a good brand has been achieved which delivers the message clearly Confirms credibility Connects with the target prospects Motivates the buyer Concretes user loyalty Product success comes only with deep understanding of market conditions, real customer requirements, and competition as well as translation of that business intelligence into high quality product within the window of opportunity. Successful products are ones that meet customer needs, are innovative and that offer value. The characteristics of a new product launch strategy were found to have a significant impact on the intensity of competitive reactions. Competitive reaction is diagnosed in terms of changes in the marketing instruments of the competitors. The data show that competitors react primarily by means of price changes, product changes and promotion changes. For a sales person it just is not that easy. A few ways one can begin is to command the respect of customers so that they will see salesperson as an authority on the products he/she sell. Gaining trust: Building relationship with customers is more important than the products sold. It is essential to know the customer, listen to them carefully and explain about the product. The messenger bag functions and advantages, and let them go at their own pace without pushing. Product knowledge: Knowing the product, study inside and out, makes a sales person prepared to answer to any questions asked regarding the products by customers. Be accessible: It is necessary for customer to know that the sales staffs are available to answer any questions they may have or to discuss any concerns they may have. Or simply making them aware of the product and promotion if any going on. Market Positioning: According to Mercer, D. (2000) is defined as the location of a product (or service) relative to others in the same marketplace and then promoting it in such a way as to reinforce or change its position. The factors that are considered for market positioning are: Product should be compared with other competing products Products position- the way the product is been defined by the consumers on their important attributes Applying a simple buying process which should help the consumers to categories the products according to their needs Segmentation: Blythe, J. (2005), states the segmentation is to identify a group of people who have a need or needs that can be met by a single product, in order to concentrate the marketing firms efforts most effectively and economically. Definition provided by business dictionary.com, market segmentation is defined as Process of defining and sub dividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. In segmentating the market Royal Company must have taken these four factors: Geographic Segmentation will take into consideration such dividing people or market into different geographical locations. The country, climate, size of a place segmented into size of its age wise population. Behavioural segementation is based on the customers need and subsequent reaction to those needs or toward the purchase of intended products. It is important for Royal Company to understand the behaviour of the buyer, as they are targeting younger generation it becomes important to have right pricing to attract customer in the market. Phychographic Segmentation: Royal Company will be segmentating people according to their lifestyles and values. Target customers interest, opinions, values, attitude and the activities they perform. Demographic Segmentation: It is refers to a wide study of the potential customers. While marketing a product many variables like age, gender, education, income, size of the family, occupation, culture and religion, language and nationality are taken into account. This segmentation can help and has worked profitably. It play an important and vital role in determining whether a product can be mass marketed or designed for specific group. In UK Number of Males under 16 in 2007 was 5,895,000 and between 16 24 in 2007 was 3, 788,000. In UK Number of Females under 16 in 2007 was 5,615,000 and between 16 24 in 2007 was 3,580,000. In 2007, the majority of people in many non white ethnic groups living in Great Britain described thier identity as British, English, Scottish or Welsh. This included almost nine in ten (87%) people from Mixed group, 85% of people from Black Caribbean group and eight in ten from Pakistani and Bangladeshi groups ( 80% and 78% respectively). Royal Company has decided to launch it new product in LONDON as the total population of London: Males 3,738,000 in 2007 Females 3,819,000 in 2007 http://www.statistics.gov.uk/downloads/theme_social/Social_Trends39/Social_Trends_39.pdf http://www.buzzle.com/articles/market-segmentation-strategy.html Market Positioning: According to Mercer, D. (2000) is defined as the location of a product (or service) relative to others in the same marketplace and then promoting it in such a way as to reinforce or change its position. The factors that should be considered for market positioning are: Launch product should be compared with other competing products. Product position is the way the product is been defined by the consumers on their attributes. Applying a simple buying process which should help the consumers to categories the products according to their needs. Implementation of Marketing Strategy There are different marketing strategies that may differ depending on the different situation of the business. Benefits and costs of Marketing strategy: It depends on the kind of research conducted, targeted market, goals and aims of an organization methods and tools used for market research. A marketing startegy helps compile marketing goals and actions into a cohesive whole. In the same way different ways of strategy such as advertising, channel marketing, promotion can be elaborated. Marketing startegies are interative and dynamic in itself. Royal company would be focusing its energies and resources on course of action which can lead to increased sales and target market niche. Royal Companys marketing strategy has deeply constructed and combined product development, promotion, distribution, pricing and other elements, identified its marketing goals. It hasexplained how they will achieve and had determined the choice of target market between age group of 16-24 mainly which are younger generation. Basic implementation of marketing strategies includes: Target audience Key element Implementating ( Launching the product ) http://www.bnet.com/cp/implementing-a-marketing-strategy/66491 Recommendation for Royal Company for new product launch of L Bag for laptop: The ability to bring superior and unique product to market in a cost effective manner is the secret for good business performance and growth. Growth is pressurized by high levels of competition, shorter product lifecycles and ever changing market conditions. Company needs to have new ways to deliver value to their customers. It is important to be innovative to existing market once the company has managed to survive the market. Royal company should shorten time to market while reducing developing costs; it should adopt holistic view of the development process. One of the most critical strategic initiatives in new product introduction is: acquiring an explicit definition of customers requirement with customer and not RD vaccum. Conclusion: It is clear that perfect product launch can support business growth initiatives, superior product and effective cost management through integration of product lifecycle activities with customers. http://www-935.ibm.com/services/ch/bcs/pdf/scm-perfect-prod-launch.pdf