Developing marketing strategies and plans

INTRODUCTION

In presenting this assignment I would like to take this opportunity to explain that I had tried my level best in putting all the questions as per their requirements within the row of their accessibility. The subject has been explained in a variety of roles with the case studies.

As this assignment had been very diverse in its nature and strata so different companies and their frame work has been managed to put with the core strategic studies.

The topics as discussed in the assignment are as such marketing strategies and planning. SBU lifecycle and strategy. Business unit strategic planning. External Environment Analysis, Swot Analysis. Porters Generic Strategies. Marketing Alliances. Marketing Process. Marketing Analysis. Mckinsey 7-S. Existing companies marketing plan.

I would appreciate if my teachers would judge my work as per the requirements given to me. I would like to further state that my work has been solely taken from the different relevant books and illustrations. I had also been able to grasp some information using the internet but the idea has only been taken and nothing has been copied.

In the end I submit my work with all honesty and hope my work is judged analytically with deserved remarks and grades from my teacher.

Thank You.

Task 1: Developing Marketing Strategies and Plans.

Developing Marketing Strategies & Plans, Company and Marketing Strategy:

Partnering to Build Customer Relationships

The Nature of Strategic Planning

  • Strategic-Planning,
  • Implementation and Control Process Planning
  • Measuring results diagnosing results Taking corrective action
  • Implementation corporate planning Division planning
  • Business planning
  • Product planning
  • Organizing Implementing Control

Strategic planning covers the entire activities of the organization, including all of the strategic business units (SBUs) and each functional area.

Developing functional strategies and plans is the fourth step in the strategic planning process. One technique for identifying opportunities is to seek strategic windows.

A strategic window is the identification of an opportunity for a limited period in the future and managing the organization & apposes resources so that there is a fit between the key market needs and the ability of the organization to meet those needs at an optimum level.

Strategic Business Units (SBUs)

Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors.

Characteristics of SBUs

  • It is a single business or collection of related businesses.
  • It has its own set of competitors.
  • It has a leader responsible for:
    • Strategic planning
    • Profitability
    • Efficiency

Planning at Different Management Levels

Strategic Planning Corporate Level Planning Strategic Business Unit (SBU) Planning done by top level corporate managers

  • Define corporate visions
  • Set corporate goals
  • Establish the business portfolio
  • Planning done by top level SBU managers
  • Define the business mission
  • Evaluate the environment (SWOT analysis)
  • State business objectives
  • Develop growth strategies
  • Tactical Planning

Three Levels of Planning

Tactical (Functional) Planning: A decision process that concentrates on developing detailed plans for strategies and tactics for the short term that support an organization & apposes long-term strategic plan. Accomplished by various functional areas of firm. Typically includes a broad 5-year plan to support strategic plan and a detailed annual plan.

Operational Planning: A decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization & aposes tactical plans. First-line managers focus on day-to-day execution of functional plans. Such planning includes detailed annual, semiannual, or quarterly plans. Example: units of a product a salesperson needs to sell per month.

Cross-Functional: An approach to tactical planning in which manager's work together in developing tactical plans for each functional area in the firm so that each plan considers the objectives of the other areas.

The Value-Delivery Process (a) Traditional physical process sequence (b) Value creation & delivery sequence Sell the product Make the product Procure Design product Make Price Sell Advertise/ promote Distribute Service Choose the Value Provide the Value Tactical marketing Strategic marketing Communicate the Value.

Strategic Planning at Co-operate Level

To develop strategic plans, top-level corporate managers follow three steps:

  • They develop a mission or vision for the total corporation,
  • Establish the corporation & aposes long-term goals or objectives,
  • Allocate resources to the different SBUs to maximize growth and profits.

Mission Statement:

A formal statement in an organization & aposes strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources. The Quaker Oats Company: To meet the needs of consumers through innovative marketing and manufacturing of healthful, good-tasting products that contribute to a healthy lifestyle and consumer well-being around the world, yielding above-average returns over time for our shareholders, (www.quakeroats.com/about/goal.htm)

Analysts use the term marketing myopia to describe firms that develop shortsighted visions

Establishing Corporate Objectives:

  • After constructing a mission statement, top manage­ment translates the corporation & aposes mission into goals or objectives. These are specific accomplish­ments or outcomes that an organization hopes to achieve by a certain time.
  • Organizational objectives are a direct outgrowth of the mission statement and broadly identify what the firm hopes to accomplish within the general time frame of the firm & aposes long-range business plan.

Planning for Growth:

The Business Portfolio for companies with several different SBUs, strategic planning includes making decisions about how to best allocate resources among these businesses to ensure growth for the total organization. Each SBU has its own focus within the firm & aposes overall strategic plan, and each has its own tar­get market and strategies for reaching its goals. Just like an independent business, each SBU is a separate profit center within a large corporation responsible for its own costs, revenues and profits.

Four quadrants representing four different types of products or businesses.

Stars: Stars are SBUs with products that have a dominant market share in high-growth markets. Because the SBU has a dominant share of the market, stars generate large revenues, but they also require large amounts of funding to keep up with production and promotion demands.

Cash Cows: Cash cows have a dominant market share in a low-growth potential market. At the same time, the product is well established and enjoys a high market share that the firm can sustain with minimal funding. Firms usually milk cash cows of their profits to fund the growth of other products in a portfolio Of course, if the firm & apos;s goal is to increase revenues, having too many cash cows with little or no growth potential can become a liability.

Question Marks: Sometimes called problem children—are products with low market shares in fast-growth markets. When a business unit is a question mark, it suggests that the firm has failed to compete successfully. Perhaps the product offers fewer benefits than competing products. Maybe its price is too high, its distributors are ineffective, or its advertising is too weak. The firm could pump more money into marketing the product and hope that market share will improve.

Dogs: Dog lovers should not be offended; this label really refers to a mongrel—a product nobody wants. Dogs have a small share of a slow-growth market.

Marketing's Role in Strategic Planning

  • Provide a guiding philosophy
  • Identify attractive opportunities
  • Design effective strategies
  • Build strong value chains
  • Form superior value delivery networks

Three Intensive Growth Strategies: Ansoff's Product/Market Expansion Grid

Marketing Strategy: Customers grouped by:

  • Geographic
  • Demographic
  • Psychographic
  • Behavioral

Market segment is a group of consumers who respond in similar ways to marketing efforts.

  • Market Segmentation
  • Target marketing
  • Market Positioning
  • Marketing Strategy

Evaluation of each segment's attractiveness.

  • Selection of segments with greatest long-term profitability.
  • Company can choose one or several segments to target
  • The place the product occupies in the consumer's mind
  • Products are positioned relative to competing products
  • Marketers look for clear, distinctive and desirable place in positioning

Marketing plans include:

  • Executive summary
  • Analysis of current situation
  • Objectives
  • Targets and positioning
  • Marketing mix
  • Budget
  • Controls
  • Analysis
  • Planning
  • Implementation
  • Control

Overall cost leadership:

The business works hard to achieve the lowest production and distribution costs so it can price lower than its competitors and win a large market share.

Differentiation:

The firm cultivates those strengths that will contribute to the intended differentiation. Thus the firm seeking quality leadership, for example, must make products with the best components put them together expertly, inspect them carefully, and effectively communicate their quality.

Case: Intel has established itself as a technology leader by introducing new microprocessors at breakneck speed.

Focus

The business focuses on one or more narrow market segments. The firm gets to know these segments intimately and pursues their cost leadership or differentiation within the target segment.

Case: Air walk shoes came to fame by focusing on very narrow extreme sports segment.

The online air travel industry provides a good example of these 3 strategies.

Travelocity.com, lowestfare.com, and lastminute.com.

Case: Travelocity is pursuing a differentiation strategy by offering the most comprehensive range of services to the traveler. Lowest fare is pursuing a lowest cost strategy; and last minute is pursuing a niche strategy in focusing on travelers who have the flexibility to travel on very short notices.

Operational Effectiveness & Strategy:

According to Porter, firms pursuing the same strategy directed to the same target market constitute a strategic group. Firms that do not pursue a clear strategy and try to be good on all strategic dimensions do the worst.

Case: International Harvester went out of the farm equipment business because it did not stand out in its industry as lowest in cost, highest in perceived value, or best in serving some market segment.

Many companies believe that they can win by performing the same activities more effectively than their competitors; but competitors can quickly copy the operationally effective company using benchmarking and other tools, thus diminishing the advantage of operational effectiveness.

According to Mckinsey & Company, strategy is only one of seven elements in successful business practice.

The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.

Shared Value

The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes.

Strategy

Plans for the allocation of a firm's scarce resources, over time, to reach identified goals. Environment, competition, customers.

Structure

The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.

System

The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.

Staff

Numbers and types of personnel within the organization.

Style

Cultural style of the organization and how key managers behave in achieving the organization's goals.

Skill

Distinctive capabilities of personnel or of the organization as a whole.

Compaq:

Compaq was the world's number one computer seller in 1997.That position was under heavy assault from Dell, which had achieved remarkable success by employing a direct sales strategy.

Fearful that Dell would lead it in the dust, Compaq decided to adopt a direct sales strategy of its own. By February 1999 Compaq's new -line of direct sales computers was selling $1million worth per day.

Although Dell overtook Compaq as the top seller in USA for 1999. Compaq defended its global lead and regained the top spot domestically the next year.

The company's strategy fit with the environment will inevitably erode because the Market environment changes faster than the company's 7-S's.

Thus a company might remain efficient while it loses effectiveness. Peter Drucker pointed out that it is more important to do the "right thing" (effectiveness)

The most successful companies excel at both. Once an organization fails to respond to a changed environment, it becomes Increasingly hard to recapture its lost position.

Case 1: This happened to the once unassailable Motorola when it responded too slowly to the new digital technology and kept rolling out new analogue phones.

Also consider what happened to Lotus Development Corporation.

Case 2: The Lotus 1-2-3 software was once the world's leading software program, and now its market share in desktops software has slipped so low that analysts do not even bother to track it.

Lotus: Sales of the original IBM-PC were driven by Lotus 1-2-3, which combined an accounting spreadsheet with a program that could turn rows of numbers into charts and graphs.

Yet Lotus ultimately did not keep pace as the PC evolved. It was late to market with a version of 1-2-3, for the Apple Mackintosh. It was late again when Microsoft Windows took off, and it was late once more when the market turned to bundles of application called suites.

Following IBM"s Acquisition of the company in 1995, Lotus capitalized on the growing popularity of corporate email-systems with its notes software, but Microsoft's ability to tie applications to operating systems gave it an unbeatable advantage.

The company now works in concert with Microsoft to make sure its latest Smart Suite Software takes full advantage of the Windows 98, Windows NT, and domestically the next year.

Summary:

Organizations, especially large ones, are subject to inertia. They are set up as efficient machines, and it is difficult to change one part without adjusting everything else. Yet organizations can be changed through strong leadership, preferably in advance of a crisis. The key to organization health is willingness to examine the changing environment and to adopt new goals and behaviors. High performance organizations continuously monitor the environment and use flexible strategic planning to maintain a fit with that environment as it evolves.

The Marketing Process:

Planning at the corporate, division, and business unit levels is an integral part of the marketing process; but to fully understand that process, we must first look at how a company defines its business.

The task of any business is to deliver customer value at a profit. There are two views of the "Value Delivery Process".

  • The traditional view is that the firm makes something and then sells it.
  • For example: Thomas Edison invents Phonograph and then hires people to make it and sell it.

In this view, marketing takes place in the second half of the process. The traditional view assumes that the company knows what to make and that the market will buy enough units to produce profits for the company.

The value Delivery Sequence:

Companies that subscribe to this traditional view have the best chance of succeeding in economies marked by goods shortages where consumers are not fussy about quality features or styles.

Therefore, the smart competitor must design and deliver offerings for well defined target markets.

This belief is at the core of the new view of business processes, which places marketing at the beginning of the planning process.

Instead of emphasizing, making and selling companies see themselves as part of a value creation and delivery sequence. This sequence consists of 3 parts.

Two Views of Value Delivery Sequence

  1. Traditional Physical Process Sequence
    • Make the Product
    • Sell the Product
  2. Value Creation & Delivery Sequence
    • Choose the Value
    • Provide the Value
    • Communicate the Value

Tactical Marketing Strategic Marketing

The 1st phase choosing the value represents the homework that marketing must do before any product exists. The marketing staff must segment the market and develop the offerings value positioning.

The 2nd phase is providing the value. Marketing must determine specific product features, prices and distribution as part of tactical marketing. The task in the 3rd phase is communicating the value. Further tactical marketing occurs in utilizing the sales force, sales promotion, advertising, and other promotional tools to inform and promote the product.

Case: Nike

Critics of Nike often complain that its shoes cost almost nothing to make yet cost the consumer so much. TRUE. The raw materials and manufacturing costs involved in the making of a sneaker are relatively cheap, but the process of selling the product to the consumer is expensive. Materials, labor, shipping, equipment, import duties, and suppliers cost generally total fewer than $25 for a pair of shoes Nike must compensate its sales team, its distributors, its administration and its endorsers, as well as pay for advertising & R&D this adds 15$ or so in the total.

Finally Nike sells its products to retailers to make a profit of $7. The retailer therefore pays roughly $47 in order to put a pair of Nikes on the shelf. When the retailers overhead (typically 30$ covering personal lease and equipment is factored in along with a $10 profit, the shoes cost the consumer over 80$.

Steps in Planning Process:

To carry out their responsibilities, marketing managers - whether at the corporate, division, business or product level follow a marketing process. Working within the plans set by the levels above them, product managers come up with a marketing plan for individual products lines, brands, channels, or customer groups.

The Marketing Process:

Consists of analyzing marketing projects, researching and selecting target markets; designing marketing strategies planning marketing programs; and organizing, implementing, and controlling marketing effort.

Below are the given cases in reference to each situation.

Case: ZEUS International: Operates in several industries including chemicals, camera and film. The company is organized into SBU's. Corporate management is considering what to do with its Atlas camera division. At present Atlas produces a range of 35mm cameras. The market for standard cameras is intensely competitive. On a growth-share matrix this business is becoming a weak cash cow,

Zeus corporate management wants Atlas marketing group to produce a strong turnaround plan.

Analyzing Marketing Opportunities: The first task facing Atlas is to identify its potential long- run opportunities given its market experience and core competencies. Atlas can develop its film cameras with better features. It can also consider designing a line of digital cameras or video cameras or it can use its core competency in optics to design a line of binoculars and telescopes.

To evaluate its opportunities Atlas needs a reliable marketing research and information system. Marketing research is an independent marketing tool for assessing buyer wants and behavior and market size.

Atlas's microenvironment consists of all the players who affect the company's ability to purchase and sell cameras - suppliers, marketing intermediaries, customers and competitors. An important part of gathering environmental information includes measuring marketing potential and forecasting future demand.

Atlas needs to understand consumer markets.

  1. How many households plan to buy cameras?
  2. Who buys and why do they buy?
  3. What are they looking for in the way of features and prices?
  4. Where do they shop?
  5. What are their images of different brands?

Atlas also sells cameras to business markets, including large corporations, professional firms, retailers and Government agencies. Atlas needs to gain a full understanding of how organizational buyers buy. Its sales force that is well trained in presenting product benefits.

Atlas must also pay close attention to competitors, anticipating its competitor's moves and knowing how to react quickly & decisively. Once Atlas has analyzed its marketing opportunities, it is ready to select target markets.

Developing Marketing Strategies: Suppose Atlas decides to focus on the consumer market and develop a positioning strategy. Should Atlas position its cameras as the Cadillac Brand, offering a superior camera at a premium price with excellent service and strong advertising? Should it build a simple low-price camera aimed at more price conscious consumers? Should it develop a medium-quality, medium-price camera? Once Atlas decides on its product positioning, it must initiate new products development, testing, and launching.

After launch the product's strategy will need modification at the different stages in the product life-cycle. Furthermore, strategy choice will depend on whether the firm is a market leader, challenger, follower or nicher. Finally strategy will have to take into account changing global opportunities and challenges.

Planning Marketing Programs: Atlas must decide for what level of marketing expenditures will achieve its expenditures will achieve its objectives. Companies typically establish their marketing budgets as a percentage of the sales goal. Marketers must decide on the allocation of the marketing budget to the various products, channels, promotion, media and sales areas. How many dollars should support Atlas's two or three camera lines? Direct versus distributors sales? Direct mail advertising versus trade-magazine advertising? East coast markets versus west coast markets? To make these allocations marketing managers use sales response functions that show how sales and profits would be affected by the amount of money spent in each application.

The basic marketing mix tool is product - the firm's tangible offering to the market which includes the product quality, design, features, branding and packaging. Atlas may provide various services such as leasing-delivery-repair and training.

Place includes the various activities the company undertakes to make the product accessible and available to target customers. Atlas must identify, recruit and link various marketing facilitators to supply its products and services efficiently to the target markets.

Promotion includes all the activities the company undertakes to communicate and promote its products to the target market. Atlas has to hire, train and motivate sales people.

Managing the Marketing Effort: The final step in the marketing process is organizing the marketing resources and then implementing and controlling the marketing plans. The company must build a marketing organization that is capable of implementing the marketing plan. Large companies such as Atlas will have several marketing specialists: sales people, sales manager marketing researchers, advertising personnel, product and brand managers, market segment managers and customer service personnel.

Task 2: SWOT Analysis

The analysis of an organization's strengths, weaknesses, opportunities, threats in the external environment.

  • All controllable elements inside a firm that influence how well the firm operates
  • Strengths and weaknesses
  • Technologies, physical facilities, financial stability, corporate reputation, quality products, strong brands, employees
  • Elements outside the firm that may affect it either positively or negatively
  • Opportunities and threats
  • The economy, competition, technology, law, ethics, and socio cultural trends.
  • Firm cannot directly control external factors but can respond to them via planning.

Case Study: Dell: SWOT Analysis Dell.

Strengths:

Dell is the World's largest PC maker. Profits for the 3 months to July 2005 were in excess of $1 billion US, representing a growth of around 28%.

For the last couple of years it has held its position as market leader (it took it from rivals Hewlett-Packard). The Dell brand is one of the best known and renowned computer brands in the World.

Dell cuts out the retailer and supplies directly to the customers. It uses information technology, and Customer Relationship Management (CRM) approaches to capture data on its loyal consumers.

So a customer selects a generic PC model, and then adds items and upgrades until the PC is kitted out to the customer's own specification. Components are made by suppliers, never by Dell.

Weaknesses:

The company has such a huge range of products and components from many suppliers from a plethora of countries, that there is the occasional product recall that can cause Dell some embarrassment.

In 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires.

Dell is a computer maker, not a computer manufacturer. It buys from a group of concentrated hi-tech component manufacturers.

Whilst this is a tremendous advantage in terms of business operations, allowing Dell to focus on marketing and logistics, the company is reliant on a few large suppliers, and to an extent is locked in for periods of time (i.e. unable to switch supply dues to the lack of large suppliers in the World).

Opportunities:

Kevin Rollins replaced Michael Dell in 2004 as Dell's Chief Executive Officer. Dell remained the company's Chairman.

Despite founder Dell's massive success, new blood and a change in management thinking could lead the company into a new, even more profitable period.

Dell is making and selling low-cost, low-price computers to PC retailers in the United States. The PC's are unbranded and should not be recognized as being Dell when the consumer makes a purchase. Rebranding and rebadging for retailers, although a departure for Dell, gives the company new market segments to attack with the associated marketing costs.

Threats.

The single biggest problem for Dell is the competitive rivalry that exists in the PC market globally. As with all profitable brands, retaliation from competitors and new entrants to the market pose potential threats.

Dell sources from Far Eastern nations where labor costs remain low, but there is nothing stopping competitors doing the same - even sourcing the same or similar components from the same or similar suppliers. Remember, Dell is a PC maker, not a PC manufacturer.

Dell, being global in its marketing and operations, is exposed to fluctuations in the World currency markets. Although it is a very lean organization, orders do have to be placed some time ahead due to their size or value. Changes in exchange rates could leave the company exposed to potential losses in parts of its supply chain.

Dell's commitment to customer value, to our team, to being direct, to operating responsibly and, ultimately, to winning continues to differentiate us from other companies.

Task 3:

Sample Marketing Plan

Sonic Personal Digital Assistant

Introduction:

Sonic a hypothetical start-up company is getting ready to introduce a new multifunctional personal digital assistant (PDA), also known as handheld computer. Sonics' new product is entering a market place crowded with offerings from Palm.

Hand springs and other PDA makers.

The following is excerpted from the marketing plan that Jane Melody, Sonics' Chief Marketing Officer, has prepared for the coming year.

Current Marketing Situation: The $3.7billion PDA market is dominated by Palm, which sold 13 million units in its first 5 years. Industry wide sales are expected to accelerate for at least the next 5years, with multifunction devices attracting an ever increasing market share. Analyst predicts 4 million units in total PDA sales for this year and 5 billion for the next year.

Market leader Palm offers a range of PDA's for consumer and business use, from a low-end, non-web enabled, monochrome model to a slimmer, lighter, high end model equipped for web access and email notification.

Hand springs an aggressive No 2 in the market, attracted a 21% share in its 1st year and drove Palm's share to below 70%.

Despite intense competition, Sonic can rely on numerous strengths: Firstly its PDA has a superb handwriting recognition system which simplifies use. Secondly it bundles valuable features found only on higher- priced rival products. Thirdly Sonics' PDA can accept any Palm compatible peripheral. Fourthly it is priced lower than competing models.

However its weaknesses include lack of brand awareness's and image, lack of color display screen and slightly heavier weight than most competing models.

Opportunity & Issue Analysis: Sonic licenses Palm's operating system rather than using Microsoft Windows CE operating system. This allows PDA's to work with thousands of Palm compatible applications and peripherals such as cameras, phones, and global positioning systems-greatly expanding the appeal of its PDA for both consumers and business buyers. Yet increased competition from Hybrids such as cell phone-PDA combinations offered by Mitsubishi-Kyocera and Samsung could slow acceptance of Sonics' model, which can use the optional Palm-compatible cell-phone attachment. Increased competition will complicate Sonics' ability to differentiate the Sonic PDA from competing models.

Objectives:

Sonics' financial objectives are:

  • Earn an annual ROI of 15% after the taxes over the next 5 years.
  • Produce net profits of $6million next year with the target profit margin of 10% on total sales.
  • Achieve 1st years total sales revenue of $60 million, based on an average price of $250 per unit.

Sonics' marketing objectives are to:

  • Achieve a 1st year unit sales volume of 240, 000, which represents a projected market share of 6% with one model in product line.
  • Increase 2nd year share to 10%, based on sales of 2 models in product line.
  • Concentrate 40% on brand awareness within the consumer target market by the end of next year.
  • Arrange for distribution through Amazon.com and through the leading computer retailers in the top 50 US markets within 3 months, followed by distribution coverage in the remaining major metropolitan areas within 6 months.

Marketing Strategy: On the consumer side, the target market is middle to upper income professionals who need one portable device to coordinate their busy schedules. They prefer lower priced PDA with expandable memory and functionality.

On the business side the target market is mid to large sized corporations that want to help their work force stay in touch and input or access critical data on the go.

Highlights of Sonics' marketing Strategy:

  • Positioning: Sonic is the most versatile PDA for personal and professional use.
  • Product Management: Basic model, to be introduced next year, incorporates Wireless web access & MP3 downloading capabilities, with slots for expanded memory and functionality. Focus, search and development on a more compact, higher-power, top end model for introduction the following year.
  • Pricing: First year average product price of $350 is in the mid range of market offering unusually high value for advanced features. Except to lower price of first model when higher-end model is introduced in 2nd year.
  • Distribution: Should be through the best known internet and computer retailers starting with the top 50 US markets.
  • Marketing Communications: Create an advertising campaign to build awareness and differentiate the product from competitors, emphasize trade sales promotion to support distribution strategy; and develop a high end profile product launch strategy to generate publicity and media coverage.

Action Programs: Sonic will carry out its marketing strategy and achieve its objectives through a variety of scheduled programs. In Jan it plans to initiate a $500,000 trade sales promotion to educate dealers and generate excitement for the product launch in February.

As part of this trade push, Sonic will exhibit at the major consumer electronics trade show. In Feb it will kick off its consumers advertising with an integrated print/radio/internet/campaign supported by point of sales signage in March.

Financial Projections: Total 1st year sales revenue is projected at $60million, with an average wholesale price of $250 per unit of $150 on unit sales volume of 240,000, and target profit margin of 10%. On a quarterly basis, Sonic project sales of $8 million, $11 million,$12 million and $29million based on cumulatively higher business sales and a spike in year -end consumer sales. Each action program carries its own financial assumptions, as well as managerial assignments and scheduling details. In turn these financial projections lay the foundation for planning in the manufacturing, human resources, research and development, finance and accounting departments.

Implementation Controls: The marketing plan includes a detailed budget schedule, and management assignment for every action program. For control purposes, the plan also allows for month by month comparison of actual versus projected sales and expenses. A contingency plan, attached, has been developed for implementation in the case of severe downward pricing pressure.

Conclusion:

In today's competitive market how companies compete successfully in accordance to the changing environment and buying behavior patterns. The companies create commitment in delivering superior value to target customers.

Successful companies know how to adapt to a continuously changing market place. They practice the art of market-oriented strategic planning and managerial process of developing and maintaining a viable fit between organization's objectives, skills and resources and its changing market opportunities.

The aim of strategic planning is to shape the company's businesses', products, services and messages so that they achieve targeted profits and growth. Marketing plays an important role in the strategic planning process.

Each business needs to define its specific mission within the broader company mission. Strategy is a game plan for getting there. According to Porter, Companies that do not pursue a clear strategy and try to be good on all strategic dimensions do the worst.

In the new global environment, with greater competition from more and more products choices and alliances are not just a planning option but a strategic necessity.

As I had been working on this assignments like other assignments but as the chapter progressed I had been able to look into the greater market and companies policies and their initiatives which itself had been a very overwhelming experience for me. Now as a student I can foresee myself as a company CEO who may have these all issues to deal, I find myself pretty confident if I come across such.

In the end I would like to take this prospect in thanking all my teachers who had shown their best patience and intelligence in carving our knowledge to our best abilities. They had always guided us in the best possible manner and never was the time when they showed their absences when we needed them in hour of understanding or guidance. I would always remain grateful to all of them with hi regard as well as the college administration who had been very supportive throughout.

Bibliography

  • Cathy Anterasian is a Consultant with McKinsey and Company. Lynn W. Phillips is Associate Professor of Marketing, Stanford University.
  • Ethan M. Rasiel, Paul N. Friga - The McKinsey Mind: Understanding and Implementing the Problem-Solving Tools and Management
  • Derek Abell, The business. The starting point of Strategic. (Upper saddle River NJ)Prentice Hall 1980. Chap 3.
  • Kotler, Philip. Marketing Management. 11 Editions. Pearson Prentice Hall. USA
  • Peter Drucker, Management: Tasks, Responsibilities and Practices. (Newyork: Harper & Row 1973), chap 7
  • "The New Breed of Strategic Planning" Business week, September 7, 1984.pp.62-68.
  • Rubbermaid. Annual Report, 1977.
  • Marketing Teacher.com

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