Presentationof

Entrepreneurship

On the Topic ofMarketing Plan

Group Members Rana Absar Ahmed (Leader) Samina Yaqoob Salman Tareen Hafiz Muhammad Ameen Rana Moazam Ali (CR) Noor-ul-Ain (GR) Zia Rajwana Muhammad Saqib (Assistant Leader)

Index

Marketing Plan Marketing Mix 4 P’s & C’s Target Marketing Market Segmentation Marketing Strategies Implementation Of Marketing Plan

Marketing Plan Defined

Before we move to M.P Let’s Discuss the Following first

Marketing mix 4 C’s & P’s Market Segmentation Target Market Marketing Strategies

Marketing Mix DefinedMarketing mix is the set

of marketing tool that the firm uses to pursue its

marketing objectives in the target market.

Now what these tools are….

Let’s just say that ….

When marketing those products a firms need to create a successful mix of:

the right product sold at the right price in the right place using the most suitable promotion

To create the right marketing mix, businesses have to meet the following conditions:

The product has to have the right features - for example, it must look good and work well.

The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.

The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.

The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output

Marketers use numerous tools to elicit desired responses from their target markets. These tools constitute a marketing mix.

Well what you know we have actually discussed the 4 P’s of

Marketing mix. Now what were 4 C’s my mate was talking about….

I’d say to achieve 4 P’s we need to convert 4 P’s into 4 C’s without

that We can’t Complete marketing mix. And its also important for the

purpose to market the product.

What are 4 P’s & C’s Of Marketing Mix again

The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer.

Product is replaced by Customer: You have to study consumer wants and needs and then attract consumers one by one with something each one wants. It is to create a custom solution rather than pigeon-holing a customer into a product.

Pricing is replaced by cost, reflecting the reality of the total cost of ownership. Many factors affect cost, including but not limited to the customers cost to change or implement the new product or service and the customers cost for not selecting a competitors capability. You have to realize that price - measured in dollars - is one part of the cost to satisfy. If you sell hamburgers, for example, you have to consider the cost of driving to your restaurant, the cost of conscience of eating meat, etc.

Place is replaced by the convenience function. With the rise of internet and hybrid models of purchasing, place is no longer relevant. Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations. You have to know how each subset of the market prefers to buy - on the Internet, from a catalogue, on the phone, using credit cards, etc. Lands End clothing, Amazon Books and Dell Computers are just a few businesses who do very well over the Internet.

Promotions feature is replaced by communication. Communications represents a broader focus than simply promotions. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. Be creative and you can make any advertising "interactive". Use phone numbers, your web site address, etc. to help here. And listen to your customers when they are "with" you.

Now winning companies will be those who can meet customer needs economically and conveniently and with effective communication. How it can be done see for yourself.

Results of Converting 4 P’s into 4 C’s

Target Marketing Defined

A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target market is the first element to a marketing strategy The marketing mix variables of product, place (distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace.

Target marketing means identifying specific market segments within a larger audience and targeting them with ad campaigns. This process is commonplace in marketing and helps companies get more value for their advertising investment. It goes against historical approaches to marketing whereby companies would simply pay to deliver messages to mass markets without considering the waste in paying to reach consumers who would never buy. By targeting select markets, businesses with tight budgets can get more return from their advertising dollars.

SegmentationSegmenting means breaking up the market into smaller,

homogeneous segments. Within S-T-P, it is a virtual brainstorming step where by the business considers all possible market segments. Segmenting strategies include demographics, lifestyle, geographic and behavioral approaches. Demographics segmentation means you break up markets based on personal traits like age, race, marital status, gender and income. Lifestyle segmenting means you divide customers by hobbies and interests. Geographic segmentation makes local, state, regional, national or international markets key. Behavioral segmenting is based on such things as usage patterns and benefits sought from the product.

Targeting

Following the brainstorming of possible segments in step one, the next step is to pick a select market to target or focus on. Companies often focus on one market segment at a time with marketing and ad campaigns. Whichever market is the most attractive from a profit standpoint or long-term potential is usually selected first. Factors including size of the market, growth potential and competitive intensity impact the perceived opportunity in targeting a given market.

Positioning

Positioning is how the company wants the targeted market to perceive its brand or product. Some companies make quality a key positioning message and try to market their product as top quality for the target market segment. Other qualities commonly used to differentiate include service, unique features, environmental friendliness, family friendliness, safety, reliability, durability and low cost. The key is to stand out from competitors with a unique message that appeals to the interests of the targeted market

Market Segmentation Defined

Philip Kotler's Says Market Segmentation Is Subdividing Of Market Into Homogeneous Sub Set Of Customers Where Any Subset May Conceivably Be Selected As Marketing Target With To Be Reached With Essays and Term Papers .

Marketers can rarely satisfy everyone in the market. So they start with ‗ market segmentation‘.

Identify and profile different groups of buyers. Target segments that present the greatest

opportunity – those whose needs the firm can meet in a superior fashion.

For each chosen target market, the firm develops a market offering, which is positioned as offering some central benefit

Marketers view the sellers as constituting the industry and the buyers as constituting the market.

Markets May Be Segmented On Following Grounds.

Need markets (the diet seeking market) Product markets (the shoe market) Demographic markets (the youth

market) Geographic market (the French market) Other markets like voter markets, donor

markets and labor markets. Marketplace v/s market space – physical

v/s digital

Marketing Strategies DefinedMarketing strategy is defined by David Aaker as a

process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives

Product imitation could be better than product innovation. In industries with low image differentiation, comparable service quality, price sensitivity. There is high possibility of price wars. Strategy against short run gains but for long term sustainability. Market follower – know to hold on to current customers – win a fair share of new customers – distinctive advantages in location, services, financing – low manufacturing costs – high product & service quality – new market penetration

Four Broad Strategies Counterfeiter: duplicate leader‘s product &

package sell it in the black market through disreputable dealers.

Cloner: emulate leader‘s products, name, and packaging, with slight variations.

Imitator: copy some things from the latter but maintain differentiation in packaging, advertising, pricing, etc.

Adapter: take the leaders products and adapt or improve them. Choose to sell to different markets. Grows into the future challenger.

Developing Market Plan for new product (Implementation of Marketing plan)

COMPANY AND INDUSTRY BACKGROUND

Company History: Founded 1937 by Paul and Marie Lamfrom in Portland, Oregon.

Began as a small hat distributor but quickly expanded into outerwear, sportswear, footwear, accessories, and equipment.

Mission Statement: “Columbia Sportswear outfits outdoor enthusiasts with unmatched

performance and advanced technology from head to toe with outerwear, sportswear, footwear, and accessories”

Key competitors: The North Face, Patagonia, Timberland Industry Background

Apparel Manufacturing Industry, (subsector Outerwear Manufacturing)

$7.2 Billion, 6% growth - 2006

2012 2011 2010 2009 2008

Net Sales $1,356,039 $1,287,672 $1,555,791 $1,095,307 $951,786

Net Income $144,452 $123,018 $130,736 $138,624 $120,121

Our recommendation is to expand into sports equipment industry by offering a full line of snowboards and snowboard equipment.

This strategy fits with Columbia’s mission statement of offering high quality “head to toe” products for outdoor enthusiasts.

COMPETITIVE ENVIRONMENT

IndustryRivalry: Medium. Products are interchangeableNumerous established competitors

Supplier Power: Low.Raw materials (wood) are plentiful, no threatof forward integration.

Buyer Power: Low.products sold through many smaller retailers withlimited bargaining power.

Threat of Entry: Low. High BrandAwareness, economies of scale.

Substitutes: Medium. Other extreme sports such as mountainbiking, climbing, etc

Sports Equipment Industry Five Force Analysis

SWOT ANALYSIS

Strengths: - Strong brand-name that is synonymous with quality and durability- Healthy financials- Innovative marketing -Reputation as an eco-friendly company

Weaknesses:- Slowdown in revenue growth due to increased costs and increased competition- International expansion has not been very successful

Opportunities: -Very fast growing industry- Strong demand for high quality, durable products- Emerging markets show good future potential

Threats:-Economic slowdown may negatively affect demand- Unpredictable seasonality and warmer winters may reduce demand- Burton Snowboards is a very strong competitor

EXPANSION AND GROWTH STRATEGY

- Columbia’s strategic growth entails expanding product offering for every outdoor segment

- Our recommendation is to acquire a premium snowboard manufacturer and market their products under Columbia brand

Market Planning

SEGMENTATION AND TARGETING

Segment: regular snowboarders-practitioners Growth rate: 30% Access to segment: accessible Geographic concentration: US and Europe Emotional motives: high Company fit & ease of business Other business opportunities provided by the

segment: immersion in extreme-sports!

TARGETING…

TARGET MARKET SELECTION: PRODUCT SPECIALIZATION

Demographics

  most snowboarders are 12-to-24-year-olds females make up roughly 25 percent

Geographic targeting: US (38 states)

 

Social/cultural influences

  inspired by surfing and skateboarding came to rebel the more sophisticated way of skiing Snowboarders stereotypes: "lazy", "grungy", "punk", "stoners", "troublemakers"

 

Purchasing behavior: high appealing durable good

  less frequent purchases greater consumer investment more intensive personal selling

Goals & Objectiv

es

TACTICAL MARKETING GOALS  Achieve market share large enough to consolidate the new product line as a

strong competitor in the market. Create an association of snowboarding equipments and Columbia’s name

inside the target audience’s minds. Making Columbia’s snowboards available and reachable for any American

customer. Convey a high-quality message about the new product line to the target

audience.

TACTICAL MARKETING OBJECTIVES

Achieve 5% of market share in revenue measure ($24.4M annual sales) in the second year.

Sponsor 2 of the 5 best snowboarding professionals in the United States at the end of 1 year.

Sponsor at least 2 major US snowboarding competitions at the end of 1 year. Having snowboards available in all states where snowboarding resorts are

popular at the end of 1 year. Reach superior product performance indicators than any industry competitor in

1 year

Core Product Strategy

CORE : a board that slides on snow

BASIC: shape with front and back upturned

EXPECTED: high speed and agility; no scratches, and graphics printed on both sides.

AUGMENTED: 3-years warranty; free engraving; option to customize

POTENTIAL: boards made of lighter materials, such as titanium, aluminum, or carbon fiber.

…Benefits

CORE PRODUCT STRATEGY (CONTINUED)

Performance

  high performance levels constantly assessed: indoor, in a science lab; and outdoor, a

team of pros and amateurs will take the boards to the slopes and subject them to different riding styles and terrains

 

Price-value-quality relationship

• both amateurs and professionals it is imperative to deliver a high value-added product

• practice of higher prices than the average of competition

Questions Are

Welcomed

Questions Are

Welcomed