NZDAB601 Assignment 3 - Patrick Peque 28140 and … · development, product enhancement and...

Patrick Peque – ID# 28140 Emeline Mangulabnan – ID # 28702 NDAB601 – MARKETING PLANNING AND CONTROL

R O B E R T D A V I S T u t o r

Marketing Plan and Control Mechanisms

TABLE OF CONTENTS

PROJECT PLAN .......................................................................................................................... 1

EXECUTIVE SUMMARY ........................................................................................................... 2 BACKGROUND AND OVERVIEW .......................................................................................... 2

KEY DRIVERS, STRATEGIES AND CRITICAL SUCCESS FACTORS ............................... 3

OVERVIEW OF MAJOR TACTICS ........................................................................................... 5 TACTICS HIGHLIGHT PER KEY DRIVER ......................................................................... 14

INTERDEPARTMENTAL SUPPORT ................................................................................... 16 KEY PERFORMANCE INDICATORS ................................................................................... 18

FORECAST ................................................................................................................................ 19

COST BUDGET PER KEY DRIVER ...................................................................................... 21 PROFIT AND LOSS ................................................................................................................. 22

KEY ASSUMPTIONS ............................................................................................................... 23 INVESTMENT OPTIONS ....................................................................................................... 24

UPSIDES AND DOWNSIDES ................................................................................................ 25

RISK ANALYSIS (CONTINGENCY PLAN) .......................................................................... 26 CONCLUSION AND RECOMMENDATION ......................................................................... 26

REFERENCES ........................................................................................................................... 28

LITERATURE ANALYSIS ...................................................................................................... 29

Marketing Plan and Control 1

PROJECT PLAN

Wk1 Wk2 Wk3 Wk4 Wk1 Wk2 Wk3 Wk4 Wk1 Wk2 Wk3 Wk4SITUATIONAL/ANALYSIS

Project/Plan 18#Mar PatrickExecutive/Summary 3#Apr EmelineBusiness/Definition/and/Scope EmelineTarget6Market 20#Mar EmelineBrand6Competitiveness 20#Mar EmelineProduct6Differentiation 20#Mar EmelineOpportunities 20#Mar EmelineInternal/Environment 23#Mar PatrickReview/of/External/EnvironmentMacro 25#Mar PatrickPolitical 25#Mar PatrickEconomic 25#Mar PatrickSocial 25#Mar PatrickTechnological 25#Mar PatrickLegal 25#Mar PatrickEnvironmental 25#Mar PatrickMicro 25#Mar PatrickDetermination/of/Critical/Success/FactorsSWOT6Analysis 1#Apr BothKey6Issues 1#Apr BothKey6Drivers 1#Apr BothCritical6Success6Factors 5#Apr BothStrategic6Objectives 5#Apr BothReview/of/Internal/Capabilities 3#AprNon#marketing6Capabilities PatrickMarketing6Capabilities PatrickFinal6revisions 6#Apr Both

MARKETING/STRATEGYStrategic/AnalysisBackground/Overview 13#Apr PatrickSWOT6Analysis 15#Apr EmelineKey6Drivers 15#Apr EmelineCritical6Success6Factors 15#Apr PatrickStrategic6Objectives 15#Apr PatrickMarketing/ObjectivesMarketing6Objectives6Framework 22#Apr PatrickCorporate6objectives6and6Business6Objectives 27#Apr PatrickHigh/Level/Marketing/StrategiesMarket6Segmentation 27#Apr EmelineBrand6Positioning 27#Apr PatrickMarketing6Mix 27#Apr EmelineProduct/StrategiesPricing6Strategies 29#Apr EmelineCompetitive6Pricing6Strategies 29#Apr Emeline

MARKETING/PLAN/AND/CONTROL/MECHANISMExexcutive6Summary 28#May PatrickBackground/Overview 8#May EmelineKey6Drivers,6Strategies6and6Tactics 8#May EmelineKey6Performance6Indictators 15#May EmelineForecast 18#May EmelineProduct6Promotion6Cost 18#May BothCost6Budget6per6Key6Driver 25#May BothProfit6and6Loss 26#May BothKey6Assumptions 26#May BothInvestment6Options6and6Assumptions 26#May PatrickUpsides6and6Downsides 26#May PatrickRisk6Analysis6(Contingency6Plan) 27#May PatrickConclusion6and6Recommendation 28#May Patrick

On6TrackNeed6attentionNot6on6track

Deadline Status AccountabilityActivity March April May


EXECUTIVE SUMMARY Performance management is a critical component to achieving success on any brand and requires an in depth analysis of measuring specific tactics or activities and create a controlling mechanisms on activities that work and don’t work. The team developed a system to track how our brand Sola Bottle is doing. This report emphasizes on specific measures such as key assumptions, profit and loss, investment options, and contingency plan that we need to prioritize in performance management for P&E Solaire Company. A successful tactical activity not only deals with the specific activities per se but also on the ability to measure if that activity is effective or not. As a new company, it is crucial to identify which activities are effective and concentrate on what’s working stretch our resources and maximize sales. Integrating our assessments from the situational analysis, generating marketing strategies, and understanding performance management and control are important in this last part of assessment. Specific budget per key drivers are also given priority to highlight what specific tactical activities we need to do in order to successfully launch Sola Bottle in New Zealand.

BACKGROUND AND OVERVIEW P&E Solaire is a new company in New Zealand that developed the first solar bottle using the 3rd generation Dye Synthesized Solar Cells (DSSC) technology. This bottle can regulate water at the desired temperature and it comes in various designs and colors. Determining the SWOT helps us develop the marketing strategy for every key driver generated in our research Project SOLARIS. Our strategies, critical success factors and tactics are making sure to have a successful launch of Sola Bottle in November 2016, create website and Apps and provide user experience, strengthen and build online communities through social media presence, participate in events, leverage on the products attributes, distribution and pricing. Our strategic goals and objectives are to establish Sola Bottle as the first solar powered water bottle for people who have an active lifestyle, to leverage Sola Bottle as an innovative and sustainable product in the market and to highlight the cost effectiveness of the product and the savings that they will get. Our 5-year Strategic Plan focuses on innovation by having an on-going research and development, product enhancement and providing excellent user experience. Project SOLARIS (SOLA Research on customer Insights and price Sensitivity) marketing strategy emphasizes on how we can make our target market be aware


of our brand and it’s pricing. Careful planning and execution of the activities will ensure the success of Sola Bottle’s product launching and gain market share.

KEY DRIVERS, STRATEGIES AND CRITICAL SUCCESS FACTORS

KEY$DRIVER$1$ Strategies$2$How$are$we$going$to$address$the$Key$Drivers?$!

Cri=cal$success$factors$2$What$is$most$cri=cal$to$have$in$place$so$our$strategies$can$work?!

Active lifestyle of New

Zealanders will drive the

growth of Sola Bottle

!

Launch$Sola$BoHle$in$New$Zealand$•  Pre%launching!strategy!•  Launching!!•  Post%launching!strategy!!$$$$$$$$$$Website$crea=on$•  Domain!name!and!hos6ng!•  Content!•  Op6miza6on!$$Sola$App$Development$•  Solar!Radia6on!update!from!NREL!•  Customiza6on!•  Updates!•  Solar!News!

$$$$Social$Media$Presence$•  Facebook!•  Instagram!•  Pinterest!$$Develop$Advocates$of$the$product$$$$$

Ensure!successful!launch!by!November!2016!Pre%launch!Strategy!•  Iden6fy!key!stakeholders!•  Market!Research!(Project!SOLARIS)!•  Iden6fy!customer!belief!and!behavior!•  Pre%Orders!Launching!Strategy!•  Communica6on!materials!(teasers,!invites,!etc.)!•  Confirma6on!from!stakeholders!to!ensure!total!

number!of!aSendees!•  Venue!!Post%Launch!Strategy!•  Posi6ve!feedback/review!of!the!product!•  Sales!are!monitored!

Ensure!website!user!experience!•  Op6miza6on!•  Web!design!•  Google!Adwords!•  Search!Engine!Op6miza6on(SEO)!!IOS!and!Android!App!development!are!user!friendly!Bug!fixes!Constant!updates!Marke6ng!before!release!!!!!!!!!!!%!Viral!Marke6ng!!!!!!!!!!!%!Reviews!by!influen6al!bloggers!!!!!!!!!!!%!High%Profile!Media!Coverage!Burst!Campaign!at!launch!Increasing!user!loyalty!and!reten6on!!Strong!Social!media!presence!that!is!consistent,!6mely,!and!relevant!Build!a!culture!for!the!target!audience!Engage!and!communicate!Provide!Quality!Content!!Advocates!are!updated!on!latest!product!development!Ongoing!product!reviews!Increase!reach!to!target!customers!Generate!word!of!mouth!




Acceptance of Sola Bottle as an innovative

and sustainable product

Create$community$for$Sola$BoGle$•  Online!

•  Offline!

!

$$$$Leveraging$social$media$to$build$community$$$Par=cipa=on$in$major$Expo$•  Go!Green!Expo!New!Zealand!2016!

•  Health!and!Well!Being!Expo!2016!

•  EMEX!(Engineering,!Machinery!&!

Electronics!ExhibiFon)!–!May!to!

June!2016!

•  Tech!Expo!2016$$

Align!the!community!concept!to!the!exisFng!moFvaFon!

Provide!IniFal!Feedback!

Create!opportuniFes!for!members!how!unique!they!are!

Forge!real!and!genuine!relaFonships!

Create!shared!experiences!

Build!intensive!habitVbuilding!programmes!!

Consistent!content!publishing!schedule!

!

Strengthen!and!build!online!communiFes!

Influence!percepFons!

Drive!sales!of!Sola!BoZle!

!

Successful!parFcipaFon!in!major!New!Zealand!Expo!in!

2016!

Build!up!company’s!image!

Introduce!product!line!up!

Sales!promoFon!

Introduce!new!products!

Clear!product!demonstraFon!in!every!event!



Sola Bottle are believed to be a

real value for money

Emphasize$long$term$benefit$of$Sola$BoJle$$$Customers$are$convinced$that$buying$Sola$BoJle$is$a$“real$value$for$money”$$Efficient$and$Effec=ve$Distribu=on$Channels$$$$Pricing$Strategy$$$$$Maximize$as$the$First$Mover$Advantage$$$

Providing!Customer!Hotline!Number!to!address!customer!inquiries,!troubleshoo9ng!Understanding!on!“real!value!for!money”!!Customers!understand!the!benefit!of!Sola!BoBle!and!are!aware!of!the!poten9al!savings!they!can!get!!!!Increase!efficiency!

Reduce!logis9c!opera9ng!expenses!Explore!new!market!opportuni9es!!Sola!boBle!are!compe99vely!priced!Create!different!product!lines!that!will!cater!all!customer’s!budget!and!needs!Compe99ve!response!to!pricing!

!Dominate!market!leadership!since!the!product!is!patented!from!the!Intellectual!Property!Office!in!New!Zealand!


OVERVIEW OF MAJOR TACTICS

Key drivers Promotional tactics Non-promotional tactics Responsible Budget

1

Active lifestyle of New

Zealanders will drive the

growth of Sola Bottle

Launch Sola Bottle in New Zealand market •  Pre-launch activities •  Launch •  Post launch activities Website creation •  Product Information •  Content •  Email Marketing Sola App Development (SOLAPP) •  Solar Radiation update •  Customization •  Updates •  Solar News Social Media Presence •  Facebook •  Instagram •  Pinterest Sponsorships to Outdoor Events Sola Power Club

Awareness on Solar Radiation in New Zealand Awareness on Hydration Solar power technology Viral videos

Sales and Marketing Digital Marketing

$75,000

PRODUCT LAUNCHING The launching of a product can drive its success or downfall. As a new product in the market we have to ensure a successful launch of Sola Bottle on November 2016. Pre-launch Activities

• Identify key stakeholders • Evaluate product and perform testing to make sure Sola Bottle is

functioning properly (How to launch a new product) • Review Market Research (Project SOLARIS) • Identify target customers, know their belief and behaviour, discover the

place where they hang around and develop an effective way of communicating with them. (Pre-launch activities and why they’re really important)

• Pre-launch trials of Sola Bottle. By offering our product to the press people or bloggers will give rise to excitement thus leads to writing reviews and testimonials which increases customer interest on our product launching.


• Create product information leaks. A campaign ad on “Coming Soon” generates customer’s interest and excitement.

• Pre-Order

Launching Activities

• Provide communication materials (teasers, invites, etc.) and product samples

• Publish blog post and send out email announcements, post on social media and other media channels (online or offline)

• Communicate with investors or distributors who will help launch the product. By letting them use the product, their recommendation to others is another way of promotion. (How to launch a new product)

• Communication from stakeholders to ensure total number of invitees • Prepare the event venue

Post Launch Activities • Positive feedback/review of the product • Sales and inventory are monitored • Provide more promotions and advertisements to continue product

awareness • Write press release about the Sola Bottle

Responsibilities

• Marketing Manager • Marketing and Sales Team • Accounting Manager • Human Resources Manager

Timeline

• Pre-launch – 18 months prior before November 2016 • Launch Date – November 2016 • Post Launch – 3 months after November 2016

Budget Pre-launch

• Initial Planning • Product evaluation and testing • Advertising cost


• Trial products • Sales Team Training

Launching Date • Print Materials • Cost of media channels • Cost of communication to investors • Cost of Event Location

Post Launch • Press Releases • Cost of additional promotion and advertising

SOLA BOTTLE WEBSITE (www.solabottle.com) Websites are one of the most effective means of communication to the users. We have to design a website that allows users to find what they are looking for, to meet their needs and wants and to ensure a great user experience. The website can help inform and make people aware of Sola Bottle. So we have to create a website that can impress customers and is well-design. A site that is filled with keywords and phrases to maximize the search engine and to gather a big volume of customer inquiries. Our site will have the following pages:

• Home • About Sola Bottle • Technology • Store Finder • News • Site Map • Contact Us

Responsibilities • Marketing Head • Digital Marketing Manager • System Administrator • Graphic Designer • Web Developer • Site Editor • Accounting Manager • Human Resources Manager


Timeline • Website Development – 12 months before launching date on November

2016

Budget

• Cost of Website Development and Hosting - $10000 • Cost of Google Adwords - $12000

SOLA BOTTLE MOBILE APP DEVELOPMENT (SOLAPP) A mobile app is a popular way of giving value to the customers. Developing a Sola App helps increase the visibility of our brand and exposure to other mobile devices. It also helps us connect with the customers who are always on the go, builds customer relationships and loyalty. (Why have an app - Benefits of Apps) Some of the Sola App we can create are as follows:

• Solar Radiation update – this app determines the amount of solar energy available at a particular area on hourly basis so that people will be aware of the intensity of solar radiation. This app will inform them the right measure of the sun’s energy which is beneficial or not for their health.

• Constant product updates – Sola app will give news alert and latest information regarding the product, like new designs, on going promotions, discounts and freebies.

Responsibilities • Marketing Head • Mobile App Developer • Graphic Designer • Accounting Manager • Human Resources Manager

Timeline 6 months before launch date in November 2016 Budget APP Development cost - $8000


SOCIAL MEDIA PRESENCE Having a social media presence helps promote Sola Bottle through the internet with lesser cost than offline product advertising. This helps us connect with the target customers utilizing the technological advances of social networking and our presence will signify that our business is up to the trend of the latest changes in media communication. Our customers can easily communicate with us with product concerns, issues and problems. We can also have the opportunity to find and attract new customers through the network of our current customers by offering freebies when they join or register as a new member. (Freeman) Social Media Presence includes:

• Facebook

• Instagram

• Pinterest • Google Plus

Responsibilities

• Marketing Head • Social Media Manager • Social Media Developer • Graphic Designer • Accounting Manager • Human Resources Manager

Timeline

• 6 months before November 2016 • Regular monitoring in answering feedbacks and inquiries

Budget Social Media Development cost - $6000 EMAIL AND DIRECT MARKETING Electronic mail or snail mail is still an effective medium of connecting directly with the customers. It is also another way of targeting specific new customers through direct offers and responses. Sola Bottle can give continuous support to its existing and potential clients.

• Blog spots – Asking blog visitors to subscribe to a daily mail can help give feedbacks and reviews of our product


• Newsletter – Sending customers newsletters weekly, fortnightly or monthly for exclusive deals and discounts

• Holiday greeting cards – Sending holiday cards or birthday cards is a way of appreciating and thanking the customers for buying Sola Bottle.

Responsibilities • Marketing Head • Customer Relations Manager • Accounting Manager • Human Resources Manager

Timeline Regular monitoring of email for sending and replying inquiries Budget

• Cost of print materials - $1500 • Cost of posting mails • Cost of creating blog sites


2

Acceptance of Sola Bottle as an innovative

and sustainable

product

Participation in Major Expo •  Go Green Expo New Zealand •  Health and Well Being Expo •  EMEX (Engineering, Machinery &

Electronics Exhibition) – May to June 2016

•  Tech Expo New Zealand 2017 Roadshows •  Product presentations •  Awareness

Product Demonstrations Sola Community Campaign •  Product Co-creation Concept •  September 2017

Awareness on latest innovative products Benefits of sustainable energy

Sales and Marketing

$50,000


PARTICIPATION IN MAJOR EXPO Successful participation in major Expo such as Go Green Expo New Zealand 2016 and EMEX (Engineering, Machinery & Electronics Exhibit) and Tech Expo 2016. Providing product demonstration and promotion build up company image, brand and sales. Timeline: 16-17 April 2016 31 May 2016 – 2 Jun 2016 Budget: $25,000 ROADSHOWS Planning Roadshows in different locations in new Zealand increase reach to customers. Doing this activity brings Sola Bottle awareness to a wider market. The face to face interaction can help promote the benefits and value of our product. Product presentations in areas such as

• Aotea Centre in Auckland • Rydges Hotel in Wellington • Port Nelson sponsoring a mountain bike competition during the Kaiteriteri

6 Hour Mountain bike Timeline: Q1-Q4 2017 Budget: $7,500 PRODUCT DEMONSTRATIONS Product demo is another way of introducing Sola Bottle to potential buyers. This allows prospect customers to experience the advantages and value of our product in their active lifestyle.

• Offer in-store product sampling at major distribution stores such The Warehouse and Kmart in Auckland, Wellington and Christchurch.

• Demo booth at major sporting events like the World Masters Games, Rugby League World Cup

Timeline: Q3-Q4 2017 Budget: $7,500


SOLA COMMUNITY CAMPAIGN This provides all Sola Bottle users to share their experiences and feedback from the product by organizing a monthly get together to know about the group and update them on the latest technology about solar powered water bottle to further enhance their experience and further strengthen brand equity. Timeline: Q3-Q4 2017 Budget: $10,000


3

Sola Bottle are believed to be a real value for

money

Create your own Sola Bottle •  Customers can design their own Sola

Bottle from selected outlets or during promotional events

•  Dye Sensitized Solar Cells can be designed with the use of dyes

•  They can choose different bottle colors and materials

It takes Sola to be FIT promo •  Emphasizing the benefit of hydration

with the help of Sola Bottle

Product Service Center and Hotlines

Information on Solar technology Awareness of Dye Sensitized Solar Cells

Marketing

Marketing

$25,000

SOLARIZE CAMPAIGN (CREATE YOUR OWN SOLA BOTTLE) Customers can personalize Sola Bottle depending on their creativity, style and budget. This adds up to the uniqueness of Sola Bottle compared to our competitors. Customize designs that fit their personality and lifestyle like different bottle color and materials. Timeline: Q4 2017 Budget: $10,000 IT TAKES SOLA TO BE FIT PROMO This is in cooperation with leading fitness centers in Auckland that promotes wellness and physical activity for an active lifestyle. We will sponsor activities for Sola users to create awareness on the importance of hydration and healthy living.


Timeline: Q3 2017 Budget: $5,000 SOLA HOTLINE This provides a hotline number for people who want to inquire latest Sola Bottle products, where to get them and information on how to use the product and trouble shooting. Timeline: Q1-Q4 2017 Budget: $7,500 PRODUCT DISCOUNTS, VOUCHERS, AND PROMOTIONS Promoting Sola Bottle is one way of introducing it to the consumer and attracting them to buy.

• Provide product discount or voucher at 5% off during Holiday seasons • Promotions like buy 5 take 1 free • Special offer for loyal customer offering a free gift for buying Sola Bottle

Timeline: Q3-Q4 2017 Budget: $2,500


TACTICS HIGHLIGHT PER KEY DRIVER

Key$Tac(c$(Promo(onal)$

Stakeholder$/$Segment$

Desired$Beliefs$&$Behaviour$

Timing$$Start$/$End$ Responsible$ Budget$$

Product$Launching$Ac(vi(es$ All$Segments$

Customers$are$now$aware$that$there$are$new$innova(on$in$water$boHle$market$

Q1KQ4$2016$ Sales$and$Marke(ng$ $50,000$

Website$crea(on$ Early$Adopters$ Customers$can$get$informa(on$regarding$the$product$ Q1$–$Q3$2016$ Digital$

Marke(ng$ $5,000$

Mobile$App$Development$ Advocates$

Customers$can$integrate$their$water$boHle$in$Sola$Mobile$App.$They$are$now$aware$of$solar$radia(on$status$in$their$current$loca(on$

Q1$–$Q3$2016$ Digital$Marke(ng$ $20,000$

Total$Budget$Key$Driver$1$ PP/KD$ $%$PP$

Promo(onal$ 65,000$ 43%$

NonKPromo(onal$ 10,000$ 7%$

Total$ 75,000$ 50%$

Key$Driver$KPIs$:$Successfully$launch$Sola$BoHle$$in$New$Zealand$by$November$2016;$Integrate$Mobile$App$to$Sola$BoHle$and$op(mize$solaboHle.com$website;$Strengthen$social$media$presence$$

Tac(c$Highlights$by$KD$1:$$$Ac#ve&lifestyle&of&New&Zealanders&will&drive&the&growth&of&Sola&Bo9le&

PP$–$Product$Promo(on$KD$–$Key$Driver$


Key$Tac(c$

(Promo(onal)$

Stakeholder$

/$Segment$

Desired$Beliefs$&$

Behaviour$

Timing$$

Start$/$End$Responsible$ Budget$$

Par(cipa(on$in$major$

New$Zealand$Expo$All$segments$

Customers$are$now$aware$of$

the$benefit$of$Sola$BoLle$and$

know$the$importance$of$

having$one$

Q1OQ4$2017$Sales$and$

Marke(ng$$25,000$

Roadshows$

Early$Adopters$

Pragma(c$

Increase$reach$of$customers$$ Q1$–$Q4$2017$Sales$and$

Marke(ng$$15,000$

Product$Demonstra(ons$

Distant$

Early$Adopters$

Increase$product$technology$

knowOhow$Q1OQ4$2017$

Sales$and$

Marke(ng$$6,000$


Marke(ng$Promo(on$$ 45,000$ 27%$

Marke(ng$NonOPromo(on$ 5,000$ 3%$

Total$ 50,000$ 30%$

Key$Driver$KPI$:$Par(cipate$in$6$major$Expo$in$New$

Zealand$within$1$year$post$launch$$

$

$

Tac(c$Highlights$by$KD$2:$$$Acceptance(of(Sola(Bo.le(as(an(innova2ve(and(sustainable(product(

PP$–$Product$Promo(on$

KD$–$Key$Driver$


Key$Tac(c$

(Promo(onal)$

Stakeholder$

/$Segment$

Desired$Beliefs$&$

Behaviour$

Timing$$

Start$/$End$Responsible$ Budget$$

Create$your$own$Sola$

BoFle$(SOLArize$

Campaign)$–$Personalize$

your$Sola$BoFle$

All$segments$

Customers$can$personalize$

Sola$BoFle$depending$on$their$

crea(vity,$style,$and$budget$

Q2OQ4$2017$Sales$and$

Marke(ng$$15,000$

Expand$on$different$

product$lines$

Early$Adopters$

Pragma(c$

Increase$sales$and$number$of$

customers$by$catering$

different$models$to$meet$their$

needs$and$budget$

Q1$–$Q4$2017$Sales$and$

Marke(ng$$30,000$

Product$Discounts,$

Vouchers$and$

Promo(ons$(5+1)$

Distant$

Early$Adopters$

Increase$product$reach$to$

customers$Q1OQ4$2017$

Sales$and$

Marke(ng$$8,000$


Marke(ng$Promo(on$$ 23,000$ 18%$

Marke(ng$NonOPromo(on$ 2,000$ 2%$

Total$ 25,000$ 20%$

Key$Driver$KPIs$:$Launch$Create$your$own$Sola$BoFle$

second$quarter$of$2017;$Expand$Sola$BoFle$in$3$

product$lines$focusing$on$value$and$innova(on$by$

December$2017$

$

Tac(c$Highlights$by$KD$3:$$$Sola%bo'le%are%believed%to%be%a%real%value%for%money%

PP$–$Product$Promo(on$

KD$–$Key$Driver$

INTERDEPARTMENTAL SUPPORT The proposed marketing plan will be supported by the following departments.

Marketing

• Marketing Manager – prepare marketing plan, promotion related activities, marketing campaigns and measuring product success

• Digital Marketing Manager – developing and managing online marketing and brand awareness

• Marketing team – assist in marketing activities


Accounting

• Finance Manager – management of cash needed for the marketing plan like salaries & wages for staff involved, overhead expenses and other marketing related expenses. The manager also approves the budget and monitor expenses incurred for the activities

• Accountants – prepare and provide financial statements needed for future plans

• Accounting clerks – record and process bills, invoices, budget needed in marketing

Human Resources

• Human Resource manager – hire the right people to market Sola Bottle, provide great salary and compensation for its employees

• HR assistants – Help in recruiting, interviewing and training the required marketing people for Sola Bottle

Logistics

• Logistics Manager – responsible for the planning and control of Sola Bottle items to distribution channels.

• Logistics Staff – delivers products to retail stores according to schedule Barriers One of the barriers in the successful implementation of the proposed plan is lack of support from the management team because of lack of belief. Another drawback is limited resources, such as funding, staff and time. Executing the plan needs a lot of budget, if we tight on cash our planned activities will not be successful. Management of Barriers For the management team or the top level organization to be supportive of our proposed activities is to have them involved in the planning. Let them understand how the Sola Bottle will be marketed. Collect ideas and suggestions from top management. The positive effect of this is that they will feel involved thus creating cooperation and team work which will drive the growth of Sola Bottle to success. On the other hand proper budgeting and forecasting must be carefully studied and considered. Each proposed activities must have funds more than the actual cost of our product. This is to give allowance to any price increases and unforeseen expenses.


KEY PERFORMANCE INDICATORS

KD# Business'Objec,ve'covered' Key'Performance'Indicators' Metrics' Source'of'Data'

1'

To establish Sola Bottle as the first solar powered water bottle for people who have an active lifestyle

•  Successfully launch Sola Bottle in New Zealand market in November 2016

•  Generate $295,750 sales of Sola Bottle in 12 months post lunch

•  Sell 5,915 units of Sola Bottle after 1 year of launching

•  Create product website and social media app 3 months prior to launch

•  Integrate SOLAPP mobile app in May 2017!

'

Number'of'par,cipants'

a?ended'the'event''

Sales'Performance'''

Number'of'unit'sold'''

Website'visit'''

Number'of'downloads'

Registra,on''''

Internal'Sales'''

Internal'Sales'''

Web'Analy,cs'''

Web'analy,cs'

2'

To leverage Sola Bottle as an innovative and sustainable product in the market

•  Create sustainable products made from environmentally friendly and recyclable materials through continued research and development by 2017

•  Integrate Sola Bottle with mobile app (SOLAPP) 6 month post launch (May 2017)

•  Participate in 6 major Expo around Auckland within 6 months post launch

•  Conduct 10 roadshows and product demonstrations in key areas aroung Auckland region from January to June 2017

•  Create a Sola Community campaign for Sola Bottle users to share experiences and feedback by September 2017

New'materials'''''

App'Downloads''''

Expo'''

Product'Demonstra,ons'

'''

Groups/Community'

Research'and'Development'

'''

Analy,cs''''

Number'of'Expo'''

Number'of'Roadshows'conducted'

''

Number'of'groups'

3'

To highlight the cost effectiveness of the product and the savings that they will get

•  Provide competitive pricing strategy that cater all market segment by January 2017

•  Launch SOLARIZE Campaign (Personalize your Sola Bottle) by June 2017

•  Expand different product lines of Sola bottle Focusing on value (price) and innovation by December 2017

•  Emphasize the potential savings the customer will get from buying disposable bottled water

Pricing'Strategy''''

Number'of'par,cipants'a?end'

the'event''

New'Product'lines''''

Savings'from'Sola'Bo?le'

Market'Research''''

Registra,on''''

Research''''

Product'comparison'


The table shows demonstrate what and how we plan to measure or track our critical Key Performance Indicators (KPIs) to ensure that our activities will result in desired customer mindsets and behaviours. Key Performance Indicators are quantitative indicators of performance that follow the SMART principles of being specific, measurable, attainable, realistic, and time bound. It is the leading indicators of the activity we need to do per key driver. Metrics describe how we intend to measure our KPI. It is the measure if we accomplish our activities and if we achieved our desired objectives. The sources of data are specific in such a way that it reflects where the data comes from and how the data is gathered.

FORECAST

295,750' 340,112'

408,134'

497,923'

627,382'

438,270'

362,896'342,035'

387,450'440,657'

284,857' 290,566' 311,491'345,472'

395,298'

263,987' 269,568' 270,114'289,526'

328,456'

194,765'199,078' 201,848' 210,876'

235,702'

0'

100,000'

200,000'

300,000'

400,000'

500,000'

600,000'

700,000'

2016' 2017' 2018' 2019' 2020'

Sales&Forecast&

Sola Bottle Thermos Kathmandu Sistema Bivouac

The graph shows the projected sales forecast of Sola Bottle from the launch date in 2016 to 2020. Five years sales evolution shows that during the first year after launch, there is a projected sales 10% growth for 2017 and additional 15% growth in 2018. It is estimated to increase due to increase demand of Sola Bottle and launching new products in 2018 that would continue to boost the sales of our products in the market. While we increase our sales and revenue, our competitors such as Thermos will decrease in sales due to ongoing research and


integration of our product with the SOLAPP, a mobile app that help customers maximize their user experience with Sola Bottle.

3%

12%

19%

24%

28%

34%

28%

23%

20%

23% 21% 20%

17% 14%

20%

30% 29%

26%

24%

16%

12% 11%

15%

18%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2016 2017 2018 2019 2020

Market'Share'

Sola Bottle Thermos Kathmandu Sistema Bivouac The above graph illustrates the projected market share of Sola Bottle over the 5 year period. During the first year of launch in November 2016, Thermos is the market leader in water bottle market followed by Sistema, Kathmandu, and Bivouac. Due to customer’s acceptance, the market share of Sola Bottle slowly increases while Thermos, Sistema, and Kathmandu water bottle market share starts to be unstable or erode. At 2020, our clear 20/20 vision, it is estimated that Sola Bottle will be the market leader in water bottle market.


COST BUDGET PER KEY DRIVER

Marke&ng)Cost)per)Key)Driver)

50%$

30%$

20%$KD1:$Ac-ve$lifestyle$of$New$Zealanders$will$drive$the$growth$of$Sola$BoBle$

KD2:$Acceptance$of$Sola$BoBle$as$an$innova-ve$and$sustainable$product$

KD3:$Sola$boBle$are$believed$to$be$a$real$value$for$money$

The marketing cost per key driver is a cost budget summary that provides an understanding of the breakdown and evolution of our promotional, non-promotional and other expenditures across the main categories. The projected budget for key driver 1, which accounts for the 50% of the total budget is $75,000; key driver 2 (30% of the budget) is $50,000; and the key driver 3 (20% of the budget) is $25,000.


PROFIT AND LOSS

SOLA BOTTLE 2016 (Paln) 2017 (Plan) 2018 (Plan) 2019 (Plan) 2020 (Plan) 4-year CAGR

SALES

Target sales 295,750 310,000 327,460 330,000 350,000 3.43%

Market Share 3% 12% 19% 24% 28% 56.32%

INVESTMENT

Product Promotion Cost 150,000 175,000 180,000 190,000 195,000 5.39%

HEADCOUNT

Total FTE 17.0 24.0 38.0 47.0 47.0 22.55%

FTE Sales & Marketing 5 8 10 12 12 19.14%

FTE Digital Marketing 2 2 4 6 6 24.57%

FTE Accounting 2 2 5 8 8 31.95%

FTE Research & Development 2 4 6 6 6 24.57%

FTE Human Resources 2 2 5 5 5 20.11%

FTE Logistics 4 6 8 10 10 20.11% This provides an overview of the financial performance of Sola Bottle over the period from 2016 to 2020. Since Sola Bottle is expected to launch in November 2016, the target sales for 2016 is $295,750 with a projected market share of 3% in Water Bottle Market. Increasing market growth year after year. Compound Annual Growth Rate (CAGR) was also computed to show how particular segment of the business grow over time. Full Time Equivalent (FTE) was also estimated for planning purposes. These include full time, part time and contractor staff.


KEY ASSUMPTIONS

CLASS%1%

5%%on%NZ%

38,205%

CLASS%2%

17.5%%on%NZ%

133,718%

CLASS%3%

20.7%%on%NZ%

158,169%

CLASS%4%

22.8%%on%NZ%

174,215%

CLASS%5%

16.5%%on%NZ%

126,075%

CLASS%6%

17.5%%on%NZ%

133,718%

Target'Customers'

330,092'

'Non'Target'

434,008'

'Willing'to'Buy'40%'

132,037'

'Not'Willing'60%'

198,055'

Target:'!4%''

18,485'

Source:%Ministry%of%Health;%The%Health%

of%New%Zealand%Adults%2011/2012,%

Key%Findings%of%New%Zealand%Health%

Survey%

Source:%New%Zealand%SocioO

Economic%Index%of%OccupaVonal%

Status%%(Davis,%McLeod,%Ransom,%&%

Ongley,%1997%%%%

Source:%Project%SOLARIS%

54%%believed%and%understand%the%

product%concept%

Source:%StaVsVcs%New%

Zealand%2013%Census%%


40%%are%willing%to%buy%the%

product%

Wellington'2013'

471,315'Others'

2013'

2.355M'

NZ POPULATION

4.2 Million

Auckland'2013'

1.415M'

'ACTIVE'NZ'54%'

764,100'

NOT'ACTIVE'NZ'46%'

650,900'


14%%will%buy%the%product%

as%soon%as%available%

Target:'32%''

5,915'Source:%Project%SOLARIS%

32%%of%consumers%will%

buy%the%product%from%$50%

or%lower%


Sales 2016 : $295,750 Investment 2017 : $150,000

Key assumptions for base case scenario

Sell 5,915 units of Sola Bottle during the first year from launch based from Project SOLARIS

12% growth in 2017 and generate $310,000 sales with 16% increase on product development and marketing promotional cost

Milestones for review

Monthly sales monitoring Digital Marketing Analytics Market Research

Annual review Sola Bottle product portfolio Budget review and approval

The table summarizes the assumptions based from the sales forecast and product flow we created with investment value for 2017 to ensure transparency in what we think behind our forecasting and common understanding from the data we gathered from Statistics New Zealand and our business research, Project SOLARIS. Regular and consistent reviews should be conducted to ensure sales achievement and investment targets.

INVESTMENT OPTIONS The table shows the summary of the allocator outcomes. It supports decision making on various investment options including how this would affect the Sola Bottle brand’s strategic and tactical approach and the impact of the potential Return of Investments (ROI). Zero means no investment, maximum would be the highest possible level of investment, and low and high would represent the 2 options in between.


Investment Description of

Investment Option

Provisional Actions

Product Promotion

Cost Sales

0 No investment No action 0 0

Low/current Focus on water bottle container

only Launch water bottle $125,000 $180,000

High/current Focus on all Dye Sensitized Solar

Cells (DSSC)

Sola Water Bottle, website, and mobile

app $150,000 $295,750

Maximum Focus on all new

3rd generation Photovoltaics

Develop new product range $300,000 $350,000

UPSIDES AND DOWNSIDES

Likelihood LikelihoodDescription of internal/external factors Sales Cost % or L/M/H Description of internal/external factors Sales Cost % or L/M/H

New Zealand dollar appreciates 5,000 M New Zealand dollar depreciates 5,000 LGovernment funded Sola Bottle in 300,000 50,000 L Thermos develop solar powered water 100,000 Mschool bottle

New competitor from China 150,000 MDelay in Sola product lines development 200,000 L

Total&Upsides $305,000 Total&Downsides $455,000

UPSIDES Impact&2019 DOWNSIDES Impact&2019

The table ensures that an understanding exists of the possible upsides & downsides if alternative scenarios occur. This include external factors such as activities in competitor analysis like Thermos developing its own solar powered water bottle or new entrants from China; factors from our SWOT analysis like possible funding of Sola Bottle from NZ government and appreciation or depreciation of New Zealand dollars. It can also include internal factors such as delay in development in product lines. The impact on the sales is realistic estimate of the value for the 4 year projected period.


RISK ANALYSIS (CONTINGENCY PLAN)

No product development due to

low acceptance

Increase prices of 3rd generation

photovoltaics

New Competitors develop Solar Cell

products

Risk outline Low acceptance of Sola Bottle and integration of

Mobile App

Prices of new 3rd generation of Photovoltaics increases due toresaerch

and development cost

Several companies will venture on new 3rd

generation photovoltaic products

Probability H/M/L (likelihood of occurring)

Low Medium High

Impact H/M/L (likely impact on sales)

High High High

Risk Level (H/M/L) Medium Medium High

Mitigation Strategy Identify further products that will cater customer needs through market

research

Focus on Dye Sensitized Solar Cell products and

expand product lines

Ensure all products are patented and strengthen competitive intelligence

It provides an understanding of what could go differently from the base plan scenario, how likely it is to happen, what impact would have on sales or the business and what we need to do to mitigate the risk. We identified 3 base scenario in terms of our risk analysis: no product development due to low acceptance of Sola bottle, increase prices of 3rd generation photovoltaics, and new competitors developing solar cell products. We estimated the probability of occurance from low to high probability, estimate the likelihood of impact this risk from our sales and the risk level. A clear mitigation strategy is what we intend to do to minimize the probability of the risk from happening or its likely to impact our business.

CONCLUSION AND RECOMMENDATION Sola Bottle is a new product developed by P&E Solaire Company based in Auckland, New Zealand. Project SOLARIS (SOLA bottle research on customer Insights and price Sensitivity) is a pivotal study to show the attractiveness of Sola Bottle product in New Zealand. The result of the study was the basis of of marketing strategies that we planned to implement. By integrating the results of our business research and identifying the key issues and opportunities in the Situational Analysis, we were able to come up with 3 key drivers that will drive the success of our product in New Zealand market. Each key driver play an important part of our strategy and tactics. Budgets are also incorporated per key driver.


5 year strategic plan was also part of the development of our strategy to ensure that Sola Bottle will remain strong over time with the development of new product categories and advancement on 3rd generation photovoltaics with the help of research and development department. This report integrates all the information we have gathered and created a performance management and control mechanism to ensure successful implementation of our marketing plans. Key Performance Indicators (KPI) are prioritized to know which activities are on track and which one needs attention. Specific investment options, profit and loss, and contingency plan are in place to ensure we understand each scenario we created and how we can mitigate potential risk from happening in the future.


REFERENCES An In-‐Depth Look at Marketing Roadshows. (n.d.). Retrieved May 27, 2015, from Field

& Experiential Marketing & Promotion: http://fieldmarketingmodernwaytopromotebusiness.bravesites.com/entries/general/an-‐in-‐depth-‐look-‐at-‐marketing-‐roadshows

Definition of 'Sales Promotion' . (n.d.). Retrieved May 27, 2015, from The Economic

Times: http://economictimes.indiatimes.com/definition/sales-‐promotion Freeman, A. E. (n.d.). The Advantages of Social Networking Promoting a Business.

Retrieved May 18, 2015, from Small Business: http://smallbusiness.chron.com/advantages-‐social-‐networking-‐promoting-‐business-‐21990.html

How to launch a new product. (n.d.). Retrieved May 17, 2015, from Entrepreneurial

Insignts: http://www.entrepreneurial-‐insights.com/how-‐to-‐launch-‐new-‐product/

Pre-‐launch activities and why they’re really important. (n.d.). Retrieved May 17, 2015,

from Alba Innovation Centre: http://www.albainnovationcentre.co.uk/2014/07/pre-‐launch-‐activities-‐and-‐why-‐theyre-‐really-‐important/

Sales promotion. (n.d.). Retrieved May 27, 2015, from Marketing Donut:

http://www.marketingdonut.co.uk/marketing/sales/sales-‐techniques-‐and-‐negotiations/sales-‐promotion

The Advantages of Social Networking Promoting a Business. (n.d.). Retrieved May 24,

2015, from Small Business: http://smallbusiness.chron.com/advantages-‐social-‐networking-‐promoting-‐business-‐21990.html

The Benefits of In-‐Store Marketing and Planned Product Demonstrations. (n.d.).

Retrieved May 27, 2015, from Store Support: http://storesupport.ca/the-‐benefits-‐of-‐in-‐store-‐marketing-‐and-‐planned-‐product-‐demonstrations/

The Site Development Team. (n.d.). Retrieved May 25, 2015, from Web Style Guide:

http://webstyleguide.com/wsg3/1-‐process/2-‐development-‐team.html Updates. (n.d.). Retrieved May 27, 2015, from World Master Games 2017:

http://www.worldmastersgames2017.co.nz/updates Why have an app -‐ Benefits of Apps. (n.d.). Retrieved May 18, 2015, from

MobileAppLoader: https://mobileapploader.com/myapp/WhyHaveMobileApp.aspx


LITERATURE ANALYSIS

References Research Questions

Conceptual Model Methodology Findings Managerial

Implications How to launch a new product. (n.d.). Retrieved May 17, 2015, from Entrepreneurial Insignts: http://www.entrepreneurial-‐insights.com/how-‐to-‐launch-‐new-‐product/

What is the purpose of product launching?

Benefits of Product Launch for Marketing Plan

Launching activities were based on large companies

Product launching is one of way of introducing a new product in the market.

Product and brand awareness Acceptability of product in the market Help boost sales

An In-‐Depth Look at Marketing Roadshows. (n.d.). Retrieved May 27, 2015, from Field & Experiential Marketing & Promotion: http://fieldmarketingmodernwaytopromotebusiness.bravesites.com/entries/general/an-‐in-‐depth-‐look-‐at-‐marketing-‐roadshows

What is roadshow campaign?

Advantage of planning roadshows for product information and awareness

Roadshows for Field Marketing

Doing roadshow campaigns helps spread the product brand to different locations and demographics. Physical presence of marketing is more engaging and irresistible.

Drive up sales Diversification of customer base

Date post:	29-Apr-2018
Category:	Documents
Upload:	dangnhu
View:	213 times
Download:	0 times

NZDAB601 Assignment 3 - Patrick Peque 28140 and … · development, product enhancement and...

Documents