Positioning and Targeting and Expansion - Personal Statement Example

Marketing Plan of the of the Table of Contents Introduction 3 Marketing Plan 3 Objectives and Goals 4 Tasks and Differentiation 5 Work Break down Schedule 5 Roll out and Introduction Timeline 6 Marketing Budget 8 Positioning and Targeting 8 Risks 10 Contingency Plan 11 Auditing 12 Growth and Expansion 12 References 13 Introduction In the modern world, income levels of almost all the individuals in the economy are rising. The quality of lifestyle of populace in the world have considerably enhanced with the rise in the purchasing powers. Individuals in both the developing as well as the developed economies create demand for varied goods and services. Economically influential people desire to make their workplaces as well as houses look beautiful and modern. At this epoch interior designing business has become a budding business segment for many young entrepreneurs. The perspective of this essay is to set up an appropriate marketing plan for an interior decoration company (Knackstedt, 2012). Marketing Plan The business entrepreneur desires to launch a new business of interior decoration. The business segment of interior decoration is highly competitive in nature. The entrepreneur would not be able to successfully run its business without the help of an appropriate marketing plan. Tastes and preferences of the individuals change drastically, when it comes to interior decorations. Thus, the mogul would face high expenses in business innovation and manufacture process. Moreover, the discounts offered by the potential rivals (Wal-Mart, Home-Depot) in the market would create price pressures on the entrepreneur. The cost of inputs (catalogue resources like pottery barn) used in interior decorations are also increasing with time. So, if the entrepreneur aspires to run its new business successfully he must set up an appropriate marketing plan for the business (SBA, 2013). Objectives and Goals The entrepreneur would never be able to fruitfully market its business services if the goals and objectives of the marketing plan are not set at the beginning. The goals and objectives of the marketing plan for the interior designing business are:- • Providing unique and excellent consulting services. • Giving high value and popularity to the brand name and reputation of the company. • Leading in the business segment of interior designing. • Attaining a growth in sales by almost 15% annually and generating economic surplus of 10%. • Expanding the scale and scope of innovation in business (USINFO, n.d.). Figure 1: SMART Objectives (Source: Authors Creation) The desired objectives of the business plan should be measurable in terms of target. The target of 15% growth in sales and 10% growth in profit should be achievable in reality. The target should be attained in a span of say 5 years from the date of inception of the business. It is considered that the above mentioned objectives for the marketing plan are not only specific but also achievable for the business (Westwood, 2005). Tasks and Differentiation The interior designing business should offer excellent services to the business clients. The designing should not only be a mark of class, but should also be superior in terms of quality. The company should maintain admirably designed retail outlets and should offer other complementary services that would impress the clients. The loyalty of the existing clientele is crucial for tapping new customers in business. Product differentiation in business would enable the customers create demand from a wide variety of choices. It would also help the firm park customers with varied tastes and preferences. The entrepreneur should introduce various types of designs for interior decoration and may introduce complementary services like manufacturing boutique made home decoration items, manufacturing modern stylish furniture’s etc (McLeish, 2010). Work Break down Schedule The work breakdown schedule for the interior designing business is:- Work Implication Introducing differentiated services and products at reasonable prices and superior quality. This would help the firm enjoy a broad and loyal customer base. Maintaining good relationships with suppliers and customers. Will help to lower the bargaining power of the suppliers and generate more sales. Building quality business relations with architectures, complementary vendors and local realtors. Will help the firm diversify its services and manufactured products. Involving in business alliances and joint marketing contracts. Will help to augment sales and give value to the brand name of the company. Mitigating business risks. The firm will lower its uncertain business costs. Creating scopes for further business expansions and growth. The firm can serve a threat go the other rivals in the industry. Roll out and Introduction Timeline The roll and timeline for the above mentioned tasks are:- Month Activities 1 2 3 4 5 6 7 8 9 10 11 12 Introducing differentiated services and products at reasonable prices and superior quality. Maintaining good relationships with suppliers and customers. Building quality business relations with architectures, complementary vendors and local realtors. Involving in business alliances and joint marketing contracts. Mitigating business risks. Creating scopes for further business expansions and growth. Marketing Budget The schedule below gives the marketing budget of the interior decoration firm:- Tasks Financial resource to be allocated Product and service differentiation. $ 832500.00 Good relationship with buyers and suppliers. $ 366500.00 Increasing business networking. $ 467500.00 Business alliances and joint ventures. $ 698900.00 Finding solutions to business risks. $ 558780.00 Further expansion and growth. $ 6464000.00 Auditing $3930.00 Positioning and Targeting The business firm can use the demographic mode of market segmentation for tapping potential clients (Aziz & Nas, 2013). It should first target the rich customers for its business services since they have higher purchasing power. Moreover, the firm should target the young economically influential buyers, as they are more interested for interior decorations in their houses and workplaces (Dibb & Simkin, 2013). The company should primarily target the women customers as women have greater likings for such services. High Quality Interior Decoration Company Low Price High Price Low Quality (Source: Authors Creation) The above graph shows the interior designing business firm may position itself as a firm offering high quality services at high prices. The potential clients of the firm would be rich moneyed individuals. Risks The risks that can be experienced in the business of the firm are: Unfavourable changes in the taste and preference pattern of the consumers. Variations or defects in services and products delivered, hampering the goodwill of the firm. Economic crisis in the market. Credit crunch in business. Contingency Plan The contingency plan would help the firm overcome or check the above mentioned risks. Diversify its services and products. Adopt technical methods like Lean and 6Sigma to reduce the business variations. Also keep less pricy products and services. Undertake profitable mergers and contracts with other business firms (Rogers, 2001). Auditing The firm should recruit a reliable and skilful team of business auditors, who would check that the fund is allotted for various tasks in business, are not misused or wasted. Efficient resource allocation would help the firm reduce cost and improve its service and product quality (Jeffes, 2008). Growth and Expansion The firm should try to get corporate contacts because big scale business contracts would help the firm enjoy the advantages of economies of scale in production. Lowering its average cost, the firm can generate greater economic surplus. The business may use celebrity endorsement for advertising its interior creativities. The business firm should not limit its scale of operations within the domestic boundaries; it should always try to expand its business in the emerging economies in the world. Rise in the number of loyal customers and increase in the scale of business operations will substantially help the firm enjoy prospective market position in the run (Abrams, 2003). References Abrams, R. (2003). The successful business plan: Secrets and strategies. California: The Planning shop. Aziz, S. & Nas, Z. (2013). Demographic Segmentation and Its Effects on Customer Satisfaction. Retrieved from http://akpinsight-ijcbs.webs.com/3%7D%20IJCBS%20Vol%204%20No%202%20Feb%20%202013%20ISSN%202156-7506.pdf. Dibb, S. & Simkin, L. (2013). Market segmentation success: Making it happen! London: Routledge. Jeffes, C. (2008). Strategic management. London: Sage. Knackstedt, M. V. (2012). The Interior design business handbook: A complete guide to profitability. New Jersy: John Wiley & Sons. McLeish, B. J. (2010). Successful marketing strategies for non-profit organizations: winning in the age of the elusive donor. New Jersey: John Wiley & Sons. Rogers, S. C. (2001). Marketing strategies, tactics, and techniques: a handbook for practitioners. Connecticut: Greenwood Publishing Group. SBA. (2013). Small Scale Business Administration. Retrieved from http://www.sba.gov/ . USINFO. (n.d.) Principles of Entrepreneurship. Retrieved from http://usinfo.org/zhcn/DOCS/enterp.pdf . Westwood, J. (2005). The marketing plan workbook. Delhi: Kogan Page Publishers. Read More