Marketing Plan for Paaned Company
This marketing plan is designed to provide some kind of blueprint that will be used for marketing our new product in the market. This plan will also include a market analysis and SWOT analysis for the target market. It will provide a detailed summary of the target market in terms of milestone table. The main ambitions for this marketing plan will be;
To identify our strengths, opportunities, threats and weaknesses
Development of lucrative promotions that will see development of possible strategies for partnerships.
Examining promotional opportunities, target market and market forces
Building direct-mail marketing techniques for market literature and promotions especially through the internet.
It is the anticipation of Paaned Company that this marketing plan will improve the organizational effectiveness and growth potential as it plans to enter into Kentucky-Louisville City to market its products. Paaned hopes to make a smooth entry into this market by creating long-term models for growth in order for it to achieve success specifically for retail and whole shops in the city. (Baker, 2000)
Description of the Problem
Current Situation and Trends
Louisville is one of the largest cities in the Kentucky state. It is an area which is growing faster than any other area which is metropolitan in nature. The economical growth has been contributed by the influx of immigrants, tourists and the purchase of
Going by 2006 estimates, the state has a population capacity of approximately 1.5 million in the city and majority of them have purchased 2nd homes from retires throughout the state or those people who may come to the country for idyllic purposes in the State. In order to escape the harsh climatic conditions of rainfall, spring, Cloud cover during the winter and fall. The locals in this city, schools, institutions, sport centers and the regular tourists who visit the city as potential customers this can also be boosted by the number of tourists who come there for climbing mountains i.e. the Black Mountain thus they will probably be the best customers for the shoes.
On a cultural point of view, Louisville consists of a majority African-American population which is known for their unique culture. Most of this African-American population has perfected the hip hop and rap music and most of them have most to the urban areas. Those who have not developed well economically are still in the rural areas trying other opportunities such as farming while in the other cities neighboring it, the population is mainly Asian-American who is mainly involved in business. (Lee and Carter, 2005)
Paaned is hoped to be an international company dealing with a range of sports equipment such as shoes, shirts, t-shirts and Jerseys for various sporting activities including, football, athletics, basketball, cricket, tennis, skateboarding and golf. Paaned is a premium company that sells well branded and expensive products that are known for their superior quality. Paaned is well known for the trademark ‘just try it’ and it relates to the sporting spirit. This company has a number of factories in over 15 countries that are contracted to manufacture these products. With this extended production capacity, there is need for an elaborate management and leadership within the organization so that it realizes its goals and objectives. The company has adopted a marketing strategy whereby, it sponsors well known players in various sporting fields such as Ronaldinho, Wayne Rooney, Christiano Ronaldo, Maria Sharapova, Tiger Woods, and Lance Armstrong among others.
Tariff barriers, quotas, voluntary export restrains, subsides to domestic products, non- tariff barriers etc. are challenges the Paaned is facing in trying to market its products in China. Emergence of other companies eyeing the Chinese market like Adidas, which is the strongest competitor for Paaned Other challenges are; advancement in technology whereby most sports personalities are demanding for better sports gears that conform to changing field and track demands(Baker, 2000)
The main objectives of the company are inline with Paaned’s strategic marketing planning processes. The first one is market knowledge. The company intends to understand the market dynamics especially through advertisements and promotions.
Other marketing and advertising strategies as outlined by Paaned for its work to develop creative units that are intended to capture the essence of the product include; the objectives include;
To maximize the profits and revenue
Ensuring that the product’s superiority is outlined to the intended customer through proper advertising
Market knowledge and research
Usage maximization and targeting
Full and partial cost recovery i.e. breakeven points
Customer and producer satisfaction
Foreign Direct Investment (FDI)
FDI is the direct ownership of processing, manufacturing or assembling facilities in a target country by a mother company. The company such as Paaned can transfer resources to developing country which has a good customer base and then set up branches in any other regions or areas of the country. The resources include; technology, personnel and capital. The company will be able utilize the resources in the target country including in the human resources. (Baker, 2000)
The joint ventures are forms of market entry that allows for technology sharing and joint product development. The main advantage of joint ventures is to get proper political connections that will allow for favors to be achieved. It is usually suitable when; the market power, resources and size of the partner is small compared to the industry leaders. If Paaned can merge or have a joint venture with any company which is still junior in the area and then boosts its market power, it will be able to meet the demands in that particular region. The main issues that are usually sorted out during the discussions for joint venture are; agreement periods, pricing methods, ownership and control, local firm capabilities and technology transfer. (Lee and Carter, 2005)
Customers in a foreign market are normally sensitive on currency, quality and quantitative figures of countries which the products originate from. Therefore in building a market entry strategy, various issues need to be taken care of; the infrastructure, information and other resources are needed for a start. First, it is the development of buildings and other networks that are crucial to the company. Secondly, are the government issues such as licensing, taxing, policies and duty remittances In addition, massive start up campaigns are necessary to reach all the target within a very short time. Transactional costs are crucial to international marketing because there are language barriers, logistic costs; physical distance and other bargaining costs make initial costs very high. Enforcement of contracts and weak legal integration between countries are also issues of concern for Paaned (Baker, 2000)
Promotion is an important marketing tool which is commonly used to market new products in a foreign country. The process requires huge investments especially when it comes to advertisements. There are various forms of promotion; personal selling, publicity, sales promotion or advertising. Promotion of products and services can be carried out in different forms and the most common one is through product life cycle (Lee and Carter, 2005)
Louisville city is one city that has a huge potential for our products going by our market potential statistics. It has a huge population that can meet the needs of this company. It also offers a strategic position that
There are many strategies that the Paaned Company can use in this area. Premium pricing- use of high price which indicates uniqueness about Paaned products. This approach is applicable where a substantial competitive advantage is in existence such as for luxuries.
Penetration pricing- the price for the sport garment can be set to be lower than what it is in other countries so as to gain a market share.
Economy pricing- cost of marketing and manufacture are kept at a minimum hence becomes a no frills low price for a product such as the Paaned
Other pricing methods are; price skimming, psychological pricing, product line pricing, optional product price, captive product pricing etc.
Maintaining competitive advantage
To maintain a competitive advantage in the Chinese sport gear manufacturing market, the following need to be taken into account;
Frequent monitoring of other competitors
Product quality improvement as long as the market demands
Social support and community projects such as providing scholarships to poor students
Employing mostly Chinese nationals to market products without compromising on skills and knowledge
The first thing wee shall do is to distribute a flyer that will announce the grand opening and launch of the company’s outlet in the city. This flyer will be placed strategically in areas where it can attract attention from all people. This flyer will also include festivities such as; racing, interschool competitions, mountain climbing competition, barbecue among others. We shall also invite local vendors to set up outdoor booths to assist in the advertising campaigns. We shall also arrange print ads in the yellow pages and internet banners to within the city. (Lee and Carter, 2005)
This is one of the changes that an organization does in order to meet the challenges of the intended market. It also goes inline with the issue of how approaches can affect organizational performance. The planned organization will comprise of a structure that will provide a confident management team, sales force, technical team and the company directors. The use of a scorecard to control and monitor the company’s performance is very important scorecard concept is very simple; all factors that influence the organization’s overall performance are taken into account and analyzed mathematically. Typically, a scorecard measures across four key areas;
Financial perspective- how shareholders perceive the company
Customer perspective-customer’s view towards the company
Internal process perspective- the efficiency and effectiveness the processes in the company
Learning and growth perspective-the company’s agility level.
Our marketing organization
Although the company has employed part time employees, the rest of the employees who are permanent are only three which include; the brand manager, the sales manager and the supply manager. The organization is tightly managed but also to some extent very informal. This marketing organization also has clear objectives and goals that we believe are attainable. The most important thing for our marketing plan will be to tackle those unforeseen issues that may not have been highlighted by this marketing plan. (Baker, 2000)
Contingency plans are important aspects of market planning due to the huge number of challenges, threats and opportunities. Since our biggest problem is competition and financial ability to meet our intended programs. Our financial growth will mostly depend on well researched and reliable sales figures. This will however be affected by political, cultural, social and environmental challenges such as weather. What our first will incorporate will be to look for sponsorships for the ‘U.S Open’, PA Tour, Texas marathon and interschool competition in order to catch the attention of the locals in this area. We shall rely mostly on direct sales and website sales in order to meet costs for running the company’s operations in the city. With proper inventory as collateral and excellent credit facilities, we hope to succeed against all odds. (Lee and Carter, 2005)
In case we lose some of our employees who will not be willing to work in this city, we shall be able to replace them with plenty of other employees who are looking for jobs in this city. The problem that may affect the performance of the company will be losing importance employees such as the brand manager whose capacity and skills are irreplaceable. We can also hire employees of our competitors who have plenty of experience.
Baker, M. (2000): Marketing Management and Strategy, 3rd edition: London. Macmillan
Lee, K and Carter, S., (2005), Global Marketing: Changes, New Challenges and
Strategies, 1st Edition, Oxford Press