MARKETING AND SALES

“Nothing kills a bad company faster than good marketing”

Marketing strategy:• What is the core strategy for marketing your products?

See key focus• How are your target customers going to be made aware of your products? What mediums of communication will be used to reach your target consumer?

Digital Marketing Campaigns (Adwords & Admob - Web and App based) Targeting parents and households in general (mothers and parenting

magazines, child development and education media) Early adopters – kids interested in gardening (display in gardening and

plant shops) Early majority – educational toys online market through amazon

• Will there be any marketing effort aimed at any intermediaries you may have – such as wholesalers?

Yes – Amazon Premium Subscription Products featured in ‘all categories’, ‘toys’ and educational toys categories

• Will you make substantial use of PR (public/press relations) in your marketing effort – are the products newsworthy or is another news story being created to support the products? (For example your company launching an educational website offering free advice to consumers on matters that have a relationship with your product)

Yes – educational videos and know how on plant care, use, benefits and guidance for kids and parents

Free videos promoted through youtube• State how much this will cost and break down the costs between categories

2016 2017 2018 2019 2020

Marketing Budget 900009000

0 900009000

0 90000Breakdown to be done• Introduce any agencies that will be used to assist you and confirm that they have been able to produce a practical action plan with the budget I believe its not required• Explain what you expect the marketing effort to achieve and how you plan to monitor and control the effort to ensure it is effective

See situational analysis

Sales and Distribution:This section explains the strategy, structures and processes you will use to sell your product to customers, and intermediaries, and how you will physically deliver the product to them.• State to whom you are selling the products, state specific segments of the market

See segmentation • Explain how are you going to make the product available to customers and sell the product to each of these segments – how are you going to make it convenient and accessible for your customers to buy your products?

Online – Amazon and own website for selling• Describe the retailer and intermediary margin structures for each sales channel you use through to the final consumer – and compare this to rivals• If you need a sales force, will you develop this in-house or have you identified a sales organization you can contract/partner with?

Before entering the retail sales, its not requires as selling efforts are to be focused through online media

• Where will your products be warehoused? How will your products physically reach your customers? Will you employ a warehousing and distribution company, or will you contract with the Sales & Distribution outfit that offer the entire package?

Discuss with Flore Otherwise, with amazon FBA, we need one warehouse and rest is handled

by them• If you do enter a contract arrangement with sales & distribution, what are the terms of the agreement? Who will own the stock? Who will invoice and receive the funds?• When and how will customer invoicing be done? • What settlement terms are offered?

Key Focus1. Time to market2. Leverage supernormal profits3. Brand Building in short period of time4. International Selling – 2nd year onwards

SOSTAC ANALYSIS

Situational Analysis (Where we are?) New Entrant Little Experience

Generic Assets No Brand Equity

Where we want to go?Sales Target (Annual from 2016-20)

WESTERN EUROPE SALES AND REVENUE PROJECTION

Kit Sales Target (units) 8063.89 29506.62 142624.17 206040.17 270664.73Accessories Sales Target (units) 1612.78 5901.32 28524.83 41208.03 54132.95

UK

Kit Sales Target (units)8063.89 17355.53 43656.48 59976.41 75994.87

Accessories Sales Target (units)1612.78 3471.11 8731.30 11995.28 15198.97

FranceKit Sales Target (units) 0.00 5743.18 45693.17 65518.87 86963.94Accessories Sales Target (units) 0.00 1148.64 9138.63 13103.77 17392.79

GermanyKit Sales Target (units) 0.00 3324.16 20681.54 31390.26 42138.74Accessories Sales Target (units) 0.00 664.83 4136.31 6278.05 8427.75

ItalyKit Sales Target (units) 0.00 1160.85 16130.17 24084.34 31735.16Accessories Sales Target (units) 0.00 232.17 3226.03 4816.87 6347.03

SpainKit Sales Target (units) 0.00 1922.91 16462.81 25070.29 33832.02Accessories Sales Target (units) 0.00 384.58 3292.56 5014.06 6766.40

Market Segmentation

Industry Toys and GamesSub Sector Educational Toys, GardeningOverall Market

Consumer Market Parents with children between 5-9 years oldInstitutional Market Schools, Kid's therapy offices

Geography Western Europe

Customer SegmentationPROFILE VARIABLES Criteria Selection ReasonDemographics

Age 5-9 yearsKids in early stages of cognitive development and learning

Race, Gender All - No Preference Gender and race neutral productsSocio Economic Grouping

Income LevelKids with atleast one earning parent

Parents with basic income and buying power

GeographicUK and subsequently Western Europe

Strong economies with affluent households. Also easy Logistics and Operations of business

LIFESTYLE VARIABLESAIO Analysis (Activities, Interests and Opinions)

Kids and parents with an interest in gardening, outdoor activities and healthy lifestyle

Focus on Parents and kids who want to invest time in doing things together as a family and an interest in gardening

External Market EnvironmentStrategic Industry Challenges

Competition from electronic products and video games Well built brands Short life cycle of toys Highly fragmented market with different types of products Target market constantly changing – maturity of kids and changing

preferences Seasonal cash flows

SWOTS – New Entrant (young and entrepreneurial team), product one of a kind, FMAW – New entrant (no brand name), competing with large players, little experience, no alliances or licenses with the likes of Disney, etcO – Leverage new segments of digital learning, growing demographic and economic portions of western Europe, no one dominant player in the educational toy marketT – Big players, chinese imports

PESTEL

P- regulations to sell products to kids between 5-9E – Environmental regulation of recycling and reuse of construction plastics used S – Social need of families to spend quality time with kids and play games together, making their kids learn about gardening and foster connect with natureT – Technology to play a major role in upcoming years with transition from traditional toys to video games, evolution of technology fast and market adoption rate quickE – With improving economic conditions of Western Europe, household paying power is increasing and so is willingness to spend for kids toysL – Licensing with major kids affiliated businesses like Disney, etc will play a major role in aiding marketing

Market TargetingTarget market would be Earning Household with Kids between the ages of 5-9 and parents having an interest in gardening toys. (Take numbers from Financial Analysis)

Market PositioningPosition Grow-Me™ as an educational toy with