The Track Tablet Marketing and Business Strategies - Essay Example

?Marketing Plan for a Business Plan Proposal - Entrepreneurship Table of Contents 1 Target Market Strategy 3 2 Product Strategy 3 3 Pricing Strategy 4 1.4 Distribution Strategy 4 1.5 Advertising and Promotion 5 1.6 Sales Strategy 7 1.7 Sales Forecast 9 References 10 1.1 Target Market Strategy The product that has been chosen for the study is “The Track Tablet”. Although, the product is designed for serving the guests at the hotels, it is important to target high end customers who aim at delighting their customers with unusual experience. The product is from Geneva, Switzerland. However, all the luxurious hotels in Switzerland can be targeted initially. Later, “The Track Tablet” company can expand into broad geographical areas. 1.2 Product Strategy Anything that is received by a person in exchange for the money that is paid by him is a product (University of Texas Arlington, “Product Decision”). The product has been designed to permit the guest to make use of the hotel services such as the room service, book spa appointments, enjoy the concierge services, restaurant reservation and order the taxis. Renting of the movies, virtual library, and downloading of the newspapers and magazines will also be possible. However, it has to be mentioned that the product will not replace the reception and human contact since it is the key for success in the hospitality sector. 1.3 Pricing Strategy Pricing can be considered as the most vital aspect of any marketing plan. However, it is vital to keep a watch upon the pricing strategies since the business environment is volatile. In addition to this the move of the competitors need to be gauged. Pricing of the new product needs to consider various aspects to remain competitive (Cravens, W. C. & Piercy, N. F., “Strategic Marketing”). Initially, it would be better for “The Track Tablets” to adopt the penetration pricing strategy. This pricing technique assists the companies to set their price low in order to appeal to the mass. It is worthwhile saying that the penetration price may not be cheap, however they are perceived to be low in relation to the perceived value (Baker, R. J., “Implementing Value Pricing: A Radical Business Model For Professional Firms”). 1.4 Distribution Strategy Distribution strategy is considered to be one of the vital aspects of marketing that tends to identify the marketing activities that need to be followed by the companies in order to deliver the products to the customers of the firms. Decision regarding the warehousing, choice of the marketing related channels, order processing and inventory control need to be considered (Boone, L. E. & Kurtz, D. L., “Contemporary Business”). Initially, the product will aim at providing the services to the higher luxurious hotels. After a certain period of time when the product gains awareness amid consumers, it will be beneficial to introduce the product towards the less luxurious hotels. The product will be provided at a few chains all over the world. A few intermediaries can be employed in order to distribute the product to the target market of the world. Intermediaries can assist in smooth flow of the product and thus can reduce the time gap between the consumers and the producers. 1.5 Advertising and Promotion Initially, the focus of the advertising campaigns will be upon targeting the high luxurious hotels. The campaigns will assist in gaining awareness among the target customers. Since the products are quite complex in nature and requires investment, it would be prudent for the marketers to send the products for test marketing. The products will be distributed at a few selected hotels that aim at providing their guest with a different experience. This will assist the company to learn the reaction of the customers towards its products. Test marketing will provide the company with the abundant of information. Later, the product can be made available to the customers requiring it (Graham, H. & Et. Al., “Marketing Strategy and Competitive Positioning”). Through conferences and trade shows “The Track Tablets” company will launch the product and thus gain awareness regarding the product and its unique features. In addition to these the company must make use of the websites and magazines such as Digital media magazines. Initially, the company can provide the hotels with coupons or premiums in order to boost the sales. Certain percentage of discount can be fixed so that the product is purchased by the hoteliers. 1.5.1 Promotion Budget Table Promotional tool Timetable Budget Test Marketing One month $30000 Trade Shows and Conferences One month $6000 Websites Ongoing $25000 Magazines Alternate months $7000*6 =$42000 Total $103000 1.6 Sales Strategy Initially, few sales personnel will be required in order to make the product accessible to the higher luxurious customers. The company is making use of the outsourced IT graphic designer for the hotels to choose the design and layout for the Track Tablets that can fit their hotel culture. This kind of services as offered by the company can assist them to boost the sales. Sales personnel employed will be quite knowledgeable with a few years of experience in digital media so that they are able to communicate regarding the products’ benefits to the hoteliers. The company also needs to have a proper marketing knowledge so that every nook and corner of the world can be targeted in an effective manner. The main aim of the company must be towards recovering the cash that has been invested in the product as early as possible. Therefore, the company needs to decide the pay back period and thus make its move accordingly. It is to be stated at the beginning of the business there will be one marketing director, one sales director. The sales staffs will vary as per the requirement that has been presented in the table below. 1.6.1 Marketing/Sales Headcount Table Year 1 Year 2 Year 3 Year 4 Year 5 Marketing director 1 ($35000) 1 ($35000) 1 ($40000) 1 ($45000) 1 ($50000) Sales Director 1 ($50000) 1 ($50000) 1 ($55000) 1 ($60000) 1 ($65000) Sales Staff 2 ($126000) 10 ($1.0M) 15 ($1.9M) 30 ($3.0M) Total headcounts $85000 $211000 $1095000 $2005000 $3115000 1.7 Sales Forecast Each business house is set up with the motto of gaining profits and to survive for longer period in the market place, thus serving its customers with better and improved products with the pace of time. The aim of the “The Track Tablet” needs to be towards achieving growth in a period of five years. In order to achieve the desired growth it would be prudent for the company to enter the new distribution channels each year along with improvement in product features. In order to forecast the sales, it would be better to keep the record of the probable expenses as well as income on a monthly basis. It is through the sales forecast that assists the companies to understand the new strategies that can be introduced in the market. The strategies may be the introduction of the new promotion, investment strategy and pricing strategy among others. In this context, the “The Track Tablet” needs to first estimate the probable demand in relation to the product. Adequate sales forecasting will assist in achieving profitability of the firm. 1.7.1 Sales Forecast Table Year 1 Year 2 January 40 150 February 45 200 March 50 250 April 53 300 May 60 350 June 70 400 July 75 450 August 77 500 September 80 520 October 90 500 November 92 600 December 100 650 Total Units 644 4870 Price $50 $55 Total Revenue $32200 $267850 References Baker, Ronald J. Implementing Value Pricing: A Radical Business Model For Professional Firms. John Wiley and Sons, 2010. Boone, Louis E. & Kurtz, David L. Contemporary Business. John Wiley and Sons, 2010. Cravens, David W. & Piercy, Nigel F. Strategic Management. Tata McGraw-Hill, 2009. Graham, Hooley. & Et. Al. Marketing Strategy and Competitive Positioning Pearson Education India, 2008. University of Texas Arlington. “Product Decision”. May 31, 2011. Agenda, 2008. Read More