Appendix A - Weeblyzachgooch-mba-eportfolio.weebly.com/uploads/2/3/9/8/2… · Web viewThe...
Transcript of Appendix A - Weeblyzachgooch-mba-eportfolio.weebly.com/uploads/2/3/9/8/2… · Web viewThe...
I. Executive Summary
G&G outdoors is a mid-level outdoor recreation retail chain. The company operates in the
southeast United States and is looking to expand operations and increase market share. The
company faces tough competition in well known brands with large market share and even larger
budgets. The marketing plan for G&G outdoors will be focused on three main points; social media
advertising, customer loyalty program implementation, and supply chain management through sales
data collection. This plan will require training and employees buy in to ensure success. The plan
will include training for current employees as well as new hires. Additional portions of the plan
call for more community involvement and increasing sponsorship opportunities, increased
visibility at trade shows and sporting events on the local, state, and even national level, and increase
print media advertisement in the community and local area with a new . The overall success or
failure of the plan will be calculated using the balanced scorecard approach and the data will be
collected and analyzed over the first six quarters of the marketing plan. If the plan fails to meet
expectations the company will rework or completely
II. Situation Analysis
A. The Internal Environment
The current goals consist of building brand awareness and increasing customer traffic.
As the company expands into new stores the company will need to broaden the scope of
their marketing.
The company has outgrown its previous marketing strategy and is in need of an overhaul.
The company would like to explore social media options as well as other electronic
marketing strategies.
The stores are doing well despite tough economic issues. Many similar stores are
struggling to maintain profitability.
Overall performance has been in decline over the last few years. This is contributed in
large part to the economic downshift. This is also derived from the companies lack of
new marketing strategy.
Firearm sales have skyrocketed in the last three months nearly doubling previous years
sales.
Review of current marketing strategy and performance
The current marketing strategy consists of premium products offered at a competitive price.
Because of geographic location of the stores the pricing can be somewhat lower as the shipping
costs are reduced. Much of the current marketing depends on "word of mouth" advertising with
some print and media ads in the local market.
The stores are doing well overall. In the local market consumers prefer G&G to other
sporting stores, but consistent profitability remains elusive.
The company is in need of renewed marketing on new platforms. To remain competitive it
will be imperative to ensure that social media is utilized as well as starting a customer loyalty
program.
Review of current and anticipated organizational resources
The company operates three stores currently and plans in the next six years to open at least
three more. The stores are large and cost to operate are high. The indoor firearms range is
especially expensive to operate daily.
If the new stores do open their will be a strain on the cash flow of the company. The
company hopes that the increase in marketing will help generate additional sales revenue to
supplement.
The company will need to maintain and exceed current sales levels in order to open the new
stores and continue to offer the product lines that they offer currently. If the sales were to drop or
there was an increase in overhead cost the company might be forced to not open the new stores.
Review of current and anticipated cultural and structural issues
Overall the company is lead by competitive, passionate senior leadership. They are
committed to the company and seeing through the plans and programs they have implemented.
Senior leadership is very interested in increasing Their marketing plans and opening new doors in
the marketplace with consumers. The overall culture of the company is accepting of change and
suggestions made for overall business improvement.
B. The Customer Environment
Who are the firm's current and potential customers?
The company's primary customer base are 20 to late 50's and are outdoor inclined. They
range from young professionals to career family men and women. Many of the products offered by
G&G are legacy purchases and may not be resold to the same customer for many years.
G&G also offers many of the desired accessories that go along with these larger purchases.
The children of the middle aged business men and women are also important parts of the customer
base.
The important players in the purchasing of G&G products are:
The primary customer market described above.
The income levels of those customers (disposable income).
Surrounding area and popular sports/recreation for that area.
Industry publications, websites, and popular equipment.
Competitive price and quality of merchandise.
What do customers do with the firm's products?
The company offers top of the line sporting and recreation equipment as well as firearms,
hunting/fishing gear, ATV's, and small boats. These products are used by the consumer to meet
recreational, hobby, and outdoor lifestyle needs.
The company sells a variety of items that range in necessity. Larger items/higher priced
items (i.e. Boats, ATV's. and firearms) are sold to consumers with the understanding that the
consumer might not need a new purchase of that item for a longer time. The smaller/less expensive
products (i.e. accessories, clothing, shoes, etc.) are sold with the understanding that the consumer
will most likely return much sooner to make similar purchases in the near future or as the need
arises.
Many of the products sold are driven by the time of year and seasons. Cold weather hunting
gear is sold in the fall and early winter, while fishing clothing, rods, and accessories are sold
primarily in the spring and summer months. These products will have a steep decline in sales in the
"off seasons" and will need to be scaled up and down accordingly.
These issues can be handled by smart purchasing on the companies part. The company can
limit the amounts that it purchases of certain items based off of previous year's sales, current year's
sales forecast, and the perceived need for the products. In the event that too much stock exists
towards the end of that particular sales season the company can decrease prices and enact "sales" on
the merchandise to ensure that it moves.
Where do customers purchase the firm's products?
The company's products are primarily purchased directly from the company through in store
sales as well as some limited online purchasing. At this time the company does not offer any form
of catalogues for sales purposes.
The company began with selling its products through in store sales. As the internet sales
market has steadily increased the company has offered some online sales of items. Some of the
items from the store require the presence of the consumer to complete the purchase (i.e. boat/ATV
sales and firearm sales).
When do customers purchase the firm's products?
Consumers purchase many of these products based off of the seasons and weather patterns
of those seasons. This is a strong influence on the overall sales of the products offered by the
company. Consumers are brought in by sales and retail advertisement promotional as well.
The seasons and weather play a huge role in limiting sales and driving high sales times.
When products are "in season" they tend to be in demand and the pricing is competitive. Due to the
increase in demand the products are sometimes harder to keep in stock during season and
purchasing has to ensure that the supply is available for the consumer.
Why (and how) do customers select the firm's products?
The major competitors offer very similar products, however the products that are offered by
G&G are top of the line and are the preferred products for the event and or activity. The issue is
getting the consumer to come to G&G opposed to the competitor.
Consumers are more willing to purchase from vendors that the recognize and are
comfortable with. G&G, although a much smaller retailer, offers well known brand names that
consumers are very familiar with and comfortable purchasing.
Why do potential customers not purchase the firm's products?
There are a few identified reasons why consumers choose not to purchase there items from G&G:
Brand loyalty (vendor brand)
Convenience (one stop shopping at other vendors)
Price vs. Quality (consumer settles for lower quality item because of price.
Unaware of G&G and the benefits of purchasing their products.
One of the key advantages that competitors have is the quality versus the price. G&G offers
high end products that are considered to be industry standards and best practice products. These
types of products command a higher retail value. The competitors offer similar types of products,
but much lower overall quality. These products command a cheaper retail value and appear to be a
"value purchase".
G&G has not branded the company and many consumers are not aware of the company and
the types of products that they offer. The lack of social media use is also an issue for reaching
potential customers.
The prospect of converting customers is very good. With the right marketing plan and
product lines G&G can easily convert consumers.
C. The External Environment
Competition
G&G has many well known competitors that sell similar products:
Bass Pro Shops
Dick's Sporting Goods
The Sports Authority
Cabela's
Academy Sports
Wal-Mart
Small scale Army/Navy stores and firearms shops
The company's competitors are predominately large scale operations that have locations
across the continental United States. These companies are very well known and have excellent
branding. Many of these companies have been in existence for many years and have developed
very good brand loyalty. These competitors offer robust online sales and have excellent product
distribution and logistics.
The major strengths of these retail competitors are:
Brand awareness/loyalty
Competitive pricing capability
Product distribution
Robust online sales and service
Major weaknesses of these retail competitors are:
Overall product quality
Lack of name brand or industry brand
Product knowledge and expertise
Overall size of company
Potential new competitors are always a threat and in some areas retail chains that have
previously been absent are now moving in and cornering the market. G&G needs to be aware that
even if the company is a success in a particular area a competitor could easily move in and decrease
sales and provide tough competition.
Economic Growth and Stability
The current economic condition of the United States is still very questionable.
Unemployment continues to be an issue and disposable income has decreased significantly. Due to
the pricing of the products offered by G&G it is imperative that consumers have the disposable
income to make the purchases.
As disposable income has decreased so has the demand for many of the higher end items
sold by G&G (i.e. boats, ATVs, etc.) This trend will continue unless the economy builds back up
and more Americans are able to go back to work.
Political Trends
The biggest political trend that could impact G&G would be the new legislature on gun
control and firearms restrictions. This is a very sensitive issue and has proponents on both sides
that are very passionate about the topic. G&G, like many of its competitors, sales firearms and
firearm accessories. Depending on how this legislature goes this industry could be greatly affected.
Gun control and the sale, distribution, and resale of firearms continues to be a hot button
item at the federal, state, and local government level.
Legal and Regulatory Issues
The biggest issue that could have negative effects on G&G continues to be the advancement
of gun control legislation.
Technological Advancements
The sports of hunting and fishing have had a sharp increase in the last ten years in new
technology. Products include; fishing sonar, lake GPS, hunting trail cameras, etc. This new
technology is top of the line and in high demand. As these sports continue to advance the
technology the demand will continue to be advancing.
Sociocultural Trends
Outdoor activities continue to be popular and sports and recreation are at an all time high.
There are many programs and government initiatives to promote sport, outdoor activity, and overall
exercise/health products. This is a great way to sell many of the products, brands, and gear that
G&G offers. The topic of gun control will continue to be a hot button item and as legislation
comes the company will need to adapt and overcome many obstacles in compliance.
III. SWOT Analysis
A. Strengths
Strength 1: Quality products and hard to find specialty items
Strength 2: Indoor firing range with available classes
Strength 3: Specialization in the sporting/outdoors market
These strengths give the company an edge in the market. Quality products, innovative
offerings, and extremely knowledgeable sales staff allows the company to better serve the customer
and the customer's needs.
B. Weaknesses
Weakness 1: Smaller chain of stores and limited reach into the west
Weakness 2: Unable to keep the amount of on hand stock as some of the larger chains
Weakness 3: Brand is not as well known as some of the larger chains
These weaknesses do provide a significant challenge to overcome. Supply chain
management, size of company, and current branding issues are time based results. It will take the
company growing and expanding to overcome some of these weaknesses.
C. Opportunities (external situations independent of the firm—not strategic options)
Opportunity 1: Chance to expand the sporting apparel aspect of the product line
Opportunity 2: Chance to expand the target market to an older clientele
Opportunity 3: Chance to offer free firearm safety courses after purchase of firearm.
If these opportunities are realized the impact could be substantial. The increase in product
line would be great for the customers and would offer a better selection. The gun safety courses
would not only benefit customers, but would be a great way to combat increasing animosity
towards retail sale of firearms.
D. Threats (external situations independent of the firm)
Threat 1: Being price matched by larger stores and losing customers
Threat 2: Overextending on hand stock and not being able to sell it
Threat 3: Continued economic issues pull consumers back from recreational purchases
The threats listed are very real. The issue of price matching and competitive pricing will be
an ongoing issue in the industry. The threat of expanding to quickly and overloading the company
could affect the company's ability to serve the customer.
E. The SWOT Matrix
Strengths:
• Quality products and hard to find
specialty items
• Indoor firing range with available classes
• Specialization in the sporting/outdoors
market
Opportunities:
• Chance to expand the sporting apparel
aspect of the product line
• Chance to appeal to an older clientele
and focus on the chance to expand the
target market
• Chance to offer free firarm safety
courses after purchase of firearm.
Weaknesses:
• Smaller chain of stores and limited reach
into the west
• Unable to keep the amount of on hand
stock as some of the larger chains
• Brand is not as well known as some of
the larger chains
Threats:
• Being price matched by larger stores and
losing customers
• Overextending on hand stock and not
being able to sell it
• Continued economic issues pull
consumers back from recreational
purchases
F. Developing Competitive Advantages
The company will need to focus on competitive pricing and price matching. The company
needs to ensure that the price meets economic limits for the customer. The company needs to also
monitor product and stock to determine the amounts of items that should be purchased and what
items should be offered.
The backbone of the company is the principles of leadership, followership, and customer
service. The strengths are in agreement with these principles.
The company can utilize better distribution methods for its products and can continue to be
aware of the potential for loss of revenue due to economic issues.
The company will not be able to do anything about the economic situations that face the
country, but the internal issues of product purchasing and distribution can be addressed.
G. Developing a Strategic Focus
The strategic focus of the proposed marketing plan is to appeal to the 18 to 49 age group
and sell quality products and services to them while building while building an association with the
brand for quality, customer service, and value.
Where other firms simply seek to sell the items to the consumer, G&G seeks to build a
relationship with the customer. G&G wants to support the customer as a friend who is there to
offer advice and provide insight on the interests that the consumer has while selling quality
products that meet those interests.
IV. Marketing Goals and Objectives
A. Marketing Goal A: Become the trusted partner in outdoor sports and recreation for our
customer base through strategic marketing.
Objective A1: Ensure distribution of the new print ads in local newspapers, magazines, and other
media. Increasing the overall customer knowledge of G&G and what they have to offer.
Objective A2: Achieve 100% contact to customers on joining the G&G Explorer Club. The
objective will be to get as many customer to sign up for the program as possible.
B. Marketing Goal B: Achieve increased profitability while maintaining quality and customer
support functions.
Objective B1: Increase overall sales by 5% in the first six months, and 10% percent in the next 12
to 18 months.
Objective B2: Utilize a "sale price" open house event at least once a quarter for the next 12
months.
V. Marketing Strategy
A. Primary (and Secondary) Target Market
Primary target market
18 to 49 year old men and women
Middle class to upper middle class income
Interested in hunting, fishing, sports, and outdoor recreation
Single, married, and families
Secondary target market (optional)
13 to 18 year old children/teens
Children of primary target market
Play sports and wear the clothing brands sold
Influence parents buying of products
B. Product Strategy
Products will be from various manufactures in specialty companies
Items featured will be the "ideal" products for that interest
Featured name brands that consumers are familiar with and trust
Dynamic selection of harder to find specialty items for the serious enthusiast
C. Pricing Strategy
Pricing will be competitive, but not "value" pricing
Sales that promote seasonal items/Specialty items
Weekly featured item pricing that will rotate
Customer loyalty program that will offer even more discounts and specials
D. Distribution/Supply Chain Strategy
Distribution is handled primarily out of the company's distribution warehouse.
The company will continue to track trends and purchasing patterns to ensure the right stock
at the right time.
The stores receive weekly shipments from the warehouse of various items as the items are
needed.
The key to the strategy is to limit over purchasing items and having to much on hand stock.
E. Integrated Marketing Communication (Promotion) Strategy
The overall Integrated Marketing Communication Strategy involves three areas:
Social media advertising and promotion - Social media is an outlet that the company has not
explored yet. The company wants to ensure that the social media tool is utilized.
Customer loyalty program - G&G Explorers Club card use to ensure that customers get
discounts and specials on the items they purchase.
Television and print ad use - Ads will be placed in local newspapers and magazines.
Advertising promotional elements will include:
Participation in local trade shows (i.e. boat show, hunting/fishing expo, etc.)
Sponsorship of local sporting events at both the state and local high school level.
Participation/sponsorship of local activities and events.
VI. Marketing Implementation
Structural Issues
To ensure that the plan is implemented effectively the employees will need to be internally
trained on the program that will be offered. The biggest segment of the training will deal with the
roll out of the new customer loyalty program. Employees will be trained on the program and how
it works. They will be instructed on how to offer the program and how to get the customers to sign
up for the program.
At this point it appears that the marketing plan will not involve many high level changes to
the stores or infrastructure of the company. The marketing department will be expanding to make
room for nee employees involved in the marketing plan programs that are being implemented.
B. Tactical Marketing Activities
Specific Tactical ActivitiesPerson/Department
Responsible
Required
Budget
Completion
Date
Product Activities
1. Dynamic selection of products
2. Brand name apparel and Gear
3. Industry preferred gear and equipment
Research team
Purchasing team
Research team
Best price*
Best price *
Best price *
6 months
12 months
12 months
Pricing Activities
1. Competitive pricing initiative
2. Seasonal sales and Specialty item pricing
3. Customer loyalty pricing and sales items
Retail Sales team
Marketing/sales
Marketing/sales
Lowest price *
Sale pricing *
Sale pricing *
1st quarter
12 months
12 months
Distribution/Supply Chain Activities
1. Distro warehouse maintenance
2. Purchase tracking/sales trends in ordering
3. Weekly store shipments/on hand stock
Logistics dept.
Logistics/sales dept
Logistics/sales dept
Best price *
Best price *
Best price *
12 months
12 months
12 months
IMC (Promotion) Activities
1. Social media advertising
2. Trade show participation/sponsorship
3. Sponsorship deals with sports and recreation
Marketing team
Marketing team
Marketing team
$100, 000
$250, 000
$250,000
6 months
12 months
12 months
* - Pricing that is listed as "best price", "lowest price", etc. refers to the cost at the time of purchase necessary to achieve desired results. The pricing at the time would need to be approved by senior leadership before further implementation. This price will be determined through solicitation of bids and best pricing at the time of the need and would not exceed market/competition standards unless deemed appropriate by senior leadership and marketing team.
VII. Evaluation and Control
A. Formal Controls
Before the plans can be implemented the company will need to allocate funds and training
time for the employees, Additional research and development would need to be conducted to
continue finding the right products as well as new gear and equipment, and sales data will need to
be collected to begin the distribution and supply chain management portion of the plan.
During the implementation and execution of the plan the company will be going through
several internal changes; management will need to buy in and ensure that employees are executing
the frontline portions of the plan, the training elements will need to be in place for current as well as
future employees, and data will need to be continuously collected and analyzed to ensure proper
product distribution.
The best way to track the success or failure of the overall marketing plan will be to collect
and analyze data from the key implementation areas. This data will be portrayed using balanced
score cards. These score cards will show the data in a visual way to portray increase or decrease in
the areas of execution. The data will be collected over the first 6 quarters of the marketing plan to
track the various pieces and the success or failure of each.
B. Informal Controls
The marketing plan will require employee buy in from senior management to front line
sales. Managers will need to ensure that employees are trained and know the products as well as
the customer loyalty program. New employees will receive indoctrination of each and will be
monitored for compliance.
G&G wants to remain a family oriented work environment that shows appreciation to its
employees and their dedication. As the company grows and prospers so will its employees.
Internal hiring for management positions will be encouraged as well as annual pay raises and
bonuses based off of profitability and growth. Employees will be briefed on these ideals as they are
hired and the company will maintain these programs as a commitment to its employees.
The company will seek to build a company culture of excellence through training and
customer support. Employees must be committed to this ideal to ensure that the company continues
to meet its goals and objectives.
D. Marketing Audits
The marketing strategy will be monitored over the first six quarters of its implementation.
During that time data will be collected, analyzed, and shared within the company. If there are
setbacks that are out of the control of the company/marketing team then adjustments can and will be
made to ensure fair and balanced analysis of the plan and its successes and/or failures.
After the six quarter time frame the senior leadership will discuss the plan and analyze the
data. Depending on the outcomes the company could move to alter or change all or portions of the
plan. If this happens the plan will be rewritten to include new data and new goals.