mktng final term paper

8/9/2019 Mktng Final Term Paper

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MARKETING

PLAN OFFICTITIOUS

PRODUCT

[ AIR CONDITINED

FOOTWEAR ]


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CONTENTS:

y INTRODUCTIONy MARKETING PLAN

EXECUTIVE SUMMARYSITUATIONALANALYSIS

Market research Competitor analysis Target market Barriers to enter the market

MARKETING STRATEGIES Mission statement Game plan

MARKETING MIX Product Price Promotion Place

SWOTANALYSIS StrengthsWeaknessOpportunities Threats


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INTRODUCTION

WHATIS MARKETING???

According to the American Marketing Association Marketing is an

organizational function and a set of processes for creating, communicating and

delivering value to customers and for managing customer relationships in ways

that benefit the organization and its stake holders.

In other words Marketing is a societal and managerial process by

which individuals and groups obtain what they need and want through creating,

offering and freely exchanging products and services of value with others.

IMPORTANCE OFMARKETING:

Marketing is everywhere. Good marketing has become an increasingly vital

ingredient for business success and is always a result of careful planning and

execution. It is both an art and science. Financial success of a business always

depends on the marketing ability.

MARKETINGMANAGEMENT:

It is the art and science of choosing target markets and getting, keeping and

growing customers through creating, delivering and communicating superior

customer value.


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WHATIS MARKETED???

Marketing people market 10 types of entities. They are:

Goods Services Events Experiences Persons Places PropertiesOrganizations Information Ideas

MARKETINGMIX:

4 PS OFMARKETING:

ProductPricePlacePromoter


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WHATIS AMARKETING PLAN???

A marketing plan is a written document that summarizes what the marketer has

learnt about the market place and indicates how the firm plans to reach its

marketingobjectives.

CONTENTS OFAMARKETING PLAN:

Executive summary and table of contentsSituation analysisMarketing strategyFinancial projectionsImplementation controlsFEATURES OFA GOOD MARKETING PLAN:

A marketing plan should be:

Simple Realistic Specific CompleteTHEMOST FREQUENTLY CITED SHORT COMINGS OFA

MARKETING PLAN:

Lack of realism Insufficient competitive analysisShort run focus


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MARKETING PLAN OF OUR PRODUCTAIR CONDITIONED

FOOTWEAR

EXECUTIVE SUMMARY:

Our launch product is a footwear ventilation technology which is applicable to all

closed shoes and boots.The technology consists of an active displacement system

which induces a positive flow of fresh air into the shoe while forcibly exhausting

the warm and moisture-laden air which has collected inside the shoe.The resultant

cooling and dehumidifying effect on the feet is substantial. Product testing

indicates a reduction in the temperature inside the shoe of 7.3F and a reduction in

the "heat index" within the shoe by 46F which has an effective air conditioning

effect. This has obvious benefits in reducing odor, and other fungal infections.The

technology prevents from foot fatigue, blistering and discomfort related to the

buildup of heat and moisture within the shoe. This has obvious benefits in reducing

odor, athlete's foot and other fungal infections. It gives the user greater comfort and

protection from shock-related injuries. It suits different activities and/or users of

different weights. It permits the use of less expensive manufacturing materials

which are both waterproof and stretch resistant, eliminating the need for

reinforcing overlays and multiple stitching processes. Two additional advantages

are offered by the use of nonporous and non-stretching materials. First, if water

does enter the shoe from around the ankle, the Breeze technology would actively

evacuate the water and ultimately dry the foot. Second, non-stretching fabrics in

the shoe's upper will significantly extend the useful life of athletic shoes and other

footwear. Thus it has significant advantages over presently air bags and gel

technologies.


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SITUATIONALANALYSIS:

MARKETANALYSIS:

A study was conducted to know about the potential customers, market share and the

sales at the initial stage. The recognition of economic, social or cultural trends such as

changes in consumer behavior was the main objective of marketing research. Students,

athletes, sportsmen were taken into account to gather information about the present

market condition and changes taken in the writing instrument industry. Marketing

research was done to identify the need for effective fatigue free and comfortable

footwear.

Problem solving research was conducted to determine the basis of segmentation and

responsiveness of the various segments. Product research was performed to know best

possible product design and brand positioning. Price plays an important role in buyers

purchase decision. Proper pricing policies should be adopted for creating the

importance in brand selection. Promotional and distribution research is equally

essential to find optimal promotional mix and type of distribution adopted.

MARKETING RESEARCH- HOW?

The second stage of marketing research involves developing the most efficient plan

for gathering the needed information. This entails decisions on the data sources,

research approaches, research instruments, sampling plan, and contact method.

Data source: To bring together the accurate, complete and reliable data wehave to collect PRIMARY DATA.

Research approaches: Primary data can be collected in five ways- throughobservational, focus group, surveys, behavior data and experiments. Focus

Group Research and Survey Research were the prominent approaches for our

product. A gathering of ten to fifteen students, professionals and managers


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were invited to spend few hours to discuss about the product. The discussion

was recorded by using audiotape and videotape. The recordings were analyzed

to understand consumer behavior, beliefs and attitudes. A survey was

conducted to learn about peoples knowledge, preferences and satisfaction. Research Instrument: Questionnaire was used as a research instruments in

collecting the information.

SAMPLING PLAN: After deciding the approach and instruments, a sample plan is

made. Sample plan consist of three decisions. They are:

Sampling unit (who is to be surveyed?): The target population that will besampled is defined here. The sample units for our product would be

athletes, sportsmen, students. Sampling frame is developed in such a way

that everyone in the target population has an equal chance of being

sampled.

Sample size (how many people should be surveyed?): As we know that largesample gives more reliable results than small sample. Of around 4 per cent

of the population will be considered as our sample size.

Sampling procedure (how should the respondents be chosen?)

: Stratified

Random Sampling method was selected to chose the respondent. The

population was divided into mutually exclusive groups such as athletes,

sportsmen and students and random samples will be drawn from each

group.


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FOCUS GROUP INTERVIEWS:

To better understand the criteria used by consumers when evaluating and selecting

footwear, focus group interviews were conducted among many students and

sportspersons. Analysis of the focus group protocols provided a very goodinformation for the assessment of consumer decision behavior in this product

category.

SURVEY RESEARCH:

A very extensive survey is conducted to know the opinion of consumers about the

footwear in the present existing market and about their requirements in the foot

wear.

The questionnaire for the survey contained questions like:

How different did you find the product from other products? How useful did you find the product? Is the price of the product acceptable? Is the design of the product convenient for use? Any other suggestions for improving the product?Thus different opinions were collected and summarized as follows:

Results revealed that the respondents categorized footwear as:

Athletic/casual,OutdoorDress.

Agreement was also found when respondents were asked to generate the factors

they look for when purchasing footwear. The major factors they included are:

Quality Comfort and performance Price Style.


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Likewise, respondents were also asked to list out the negative aspects of

footwear and footwear use. The major negatives they identified were:

Sweaty feet

Stinky feet Too warm/ hotNot waterproof Materials rip and fall apart

COMPETITORANALYSIS:

We are introducing a new product in the market so there are no competitors forour product. It will help in building brand strength of the product. Better service

will be provided in affordable price. But we may face competition from the

presently existing air bags and gel technologies.

TARGETMARKET:

The market is primarily targeted at young lot of the customers in the age group of15-30. It mainly aims at athletes, sportsmen and students. Later it aims at targeting

variable market segments through its diversified designs.

BARRIERS TO ENTERMARKET:

y Lack of knowledge of technology used in the product y Consumer acceptance and brand recognition


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MARKETING STRATEGIES:

A marketing strategy is a broad direction statement indicating how the marketing

objectives will be achieved. It provides the method for accomplishing the

objectives. While marketing objectives are specific, quantifiable and measurable,marketing strategies are descriptive. The marketing strategies represent a first

overview of various marketing elements and how they will be utilized to achieve

the marketing objectives. The most commonly addressed strategy issues are as

follow:

i. Building the market versus stealing market shareii. National, regional or local markets

iii. Seasonalityiv. Spendingv. Competitionvi. Target market

vii. Productviii. Naming

ix. Packagingx. Pricingxi. Distribution/coverage

xii. Personal sellingxiii. Advertising mediaxiv. Advertising messagexv. Internet media

xvi. Merchandisingxvii. Public relationsxviii. Marketing research and testing.


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MISSION STATEMENT:

To make all the customers aware of the product, to build up brand strength and to

achieve 20% of the foot wear market.

GAME PLAN:

The market for the product is differentiated as primary and . The

company's primary market is the footwear manufacturers and wholesalers. The

secondary market is the end-use consumer. In meeting secondary market demand,

the technology will be pulled through the primary market.

Personal selling of the technology to top executives of the target

footwear manufacturer is the chosen strategy. Firstly some prototype shoes weremanufactured to allow testing.. An animated video which explains the technical

aspects of the technology was also developed. This was considered the superior

method of communicating the physical dynamics of the technology. This video

will be used, as necessary, in conjunction with the prototypical footwear, in selling

the technology to industry executives. A technical manual was also compiled

which provides the test data and specifications. This material is available to the

research and development department of the targeted company for in-house

evaluation of the technology.


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MARKETINGMIX:

PRODUCT:

Our launch product is a footwear ventilation technology which is

applicable to all closed shoes and boots. The technology consists of an active

displacement system which induces a positive flow of fresh air into the shoe while

forcibly exhausting the warm and moisture-laden air which has collected inside the

shoe. The air is replaced entirely once per stride with fresh air from outside the

shoe. The resultant cooling and dehumidifying effect on the feet is substantial.

Product testing indicates a reduction in the temperature inside the shoe of 7.3F

and a reduction in the "heat index" within the shoe by 46F. This has obvious

benefits in reducing odor, athlete's foot and other fungal infections. the technology

militates against foot fatigue, blistering and discomfort related to the buildup of

heat and moisture within the shoes.The benefits of Breeze technology include

significant cushioning advantages over the existing airbag and gel technologies,

allowing the user greater comfort and protection from shock-related injuries.Breeze technology can be used in conjunction with existing cushioning systems to

improve the functioning of those systems, and potentially can be custom-adjusted

by the user to suit different activities and/or users of different weights.

Potential manufacturing cost advantages are also provided by

Breeze technology since it renders obsolete the need for ventilation holes and/or

porous fabrics (including leather). This in turn permits the use of less expensive

manufacturing materials which are both waterproof and stretch resistant,

eliminating the need for reinforcing overlays and multiple stitching processes.Two

additional advantages are offered by the use of nonporous and non-stretching

materials. First, if water does enter the shoe from around the ankle, the Breeze


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Segmentation for the product was done on the basis of

geographic, demographic and behavioral. All metro cities will be taken into

consideration for segmenting the market according to geographical basis. Only

metro cities will be concentrated because income and lifestyle issues influence the

penetration rate of product and services. The market potential value of cities was

calculated on the based on five indicators such as number of consumers, the means

these consumer have, their consumption behavior, awareness levels. When the

segmentation was done on the basis of demographic factor only young lot of

customers that is sportsmen, athletes and students were taken into account. One

of the criteria for segmenting the market will be occasion. Occasion segmentation

is done when they develop a need, purchase a product, or use a product. Occasion

segmentation will help us in expansion usage.

In segmentation we decide how many and which ones to target: a single

segment, several segments, a specific market or the full market. Several variables

were combined in an effort to identify smaller, better-defined target groups. Our

target customers would be athletes, sportsmen and students participating in

sports meets etc. Here benefit becomes the primary means of defining the market.

PROMOTION:

Promotion is one P among the four Ps of the marketing mix. To

communicate with the user or the potential customer promotion is essential.

Promotion can be done through various methods such as advertisement, personal

selling, publicity, promotion through sales force, sales promotion etc..

The promotion strategy which we have adopted is personal selling and

promotion through media. Both print and electronic media is taken in toconsideration. These promotional strategies are adopted because they cover

wider area in a cost efficient manner. We have not opted for other promotion

activities because they either incur more cost or are not suitable to our product.


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We will also use some more methods other than paid advertising,

such as dealers incentives, word of mouth and network of friends and

professionals. This type of advertising will help in covering large area without

incurring any cost. Through word of mouth we can increase the sales because

people get influenced through their peer groups and develop a positive attitude

towards the product. We will also promote our product by distributing the sample

of the products in the stadia, sports coaching centers, gymnasiums and

educational institutions in order to create awareness among the potential

customers.

PECENTAGE

SAMPLE DISTRIBUTION 20%

PERSONAL SELLING 25%

NEWS PAPER 18%

TELEVISION ADS 12%

INTERNET 25%

TOTAL 100%

PRICING:

Pricing represents one of the basic elements of the marketing mix, and it is one

of the most difficult elements. The firm has to consider many factors in setting its

pricing policy such as:

Selecting the pricing objective; Determining demand; Estimating costs; Analyzing competitors cost, price and offers; Selecting a pricing method


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Selecting the final price

The pricing method which we have selected isMARKUP

PRICING

. This is the mostelementary pricing method is to add a standard markup to the products cost.

Pricing has been done by adding a standard markup on their time and cost.

Unit cost = variable cost + (fixed cost/unit sales)

Markup = unit cost/ (1- desired return on sales)

By using this formula we have find out the price of the product i.e. Rs 50/-. The

price of the product is high, hoping to recover their cost as rapidly as possible.

This method used for pricing cannot be fatal because there are no competitors in

the market whose pricing will be low. This method has some advantages:

y Cost can be determined easilyy Price competition is minimized.y A fair return on investment can be earned.

PLACE:

Distribution can be defined as the transmission of goods and services from

producer or seller to the user. We can also say that this is the method through

which the target market user receives the product from the producer.

Distribution focuses on makes sure that the product is accessible at the right time

and at the right place. Various distribution channels should be used to sell the

product and services. To merchandise our product we have addressed all the

metro cities because the customers act as the innovators over here. Metro cities

has been selected as our target market because the people have more buying

capacity and are ready to undertake any type of risk. Thus it will help in

recovering the cost. The distribution channel consist number of intermediaries

such as sales force, agents and representatives.


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mktng final term paper

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