Beneficial Strategies to Launch a Newly Developed Product Mysofa by Stokers Limited - Essay Example

Digital Marketing Plan Executive Summary This digital marketing plan mainly aims at proposing beneficial strategies to launch a new developed product range Mysofa by Stokers Limited. The product designed aims at providing the customers with luxurious comfort, which shall also reduce their stress level. Correspondingly, the UK has been selected as the potential market for this product. Market analysis of the UK reveals about the favourability of the furniture industry within the country. In this respect, it was determined that the product might sustain in the completive scenario. The targeted customers selected for this proposal are corporate groups, newly married couples and household in common. The price of the product has been fixed as £1,330, which is affordable by the targeted group. The distribution channels selected are retail agents and auction houses among others. The advertisement modes been selected are television, social networking sites and direct mailing among others. Table of Contents 1. Executive Summary 2 2. Business Mission 4 3. Marketing Audit 4 3.1 External Analysis 4 3.1.1. Macro Environment 4 3.1.2. The Market 5 3.1.3. Competitor Analysis 7 3.2 Internal Analysis 8 4. TOWS 10 5. Marketing Objectives 12 6. Strategy 12 6.1 Segmentation 12 6.2 Targeting 13 6.3 Differentiation 14 6.4 Positioning 14 7. Marketing Mix & e-CRM Decisions 15 7.1 Product 15 7.2 Price 15 7.3 Place 15 7.4 Promotion 15 7.5 e-CRM 16 8. Implementation 16 9. Budget 18 10. Evaluation and Control 18 11. Appendix 19 11.1 Overview of the World Furniture Industry 19 References 19 2. Business Mission “To assure the customers with adequate value and trustworthy services in the store and to achieve ample customer satisfaction by providing them with the best quality products in alignment with their tastes, preferences and convenience needs.” 3. Marketing Audit 3.1 External Analysis 3.1.1. Macro Environment Political- Considering, the political scenario and regulations of the UK, with respect to the retail industry, can be stated as stable. Currently, the furniture retailing industry within the UK does not face major challenges with respect to its political scenario. Notably, the UK government has shown a positive inclination towards investing more in developing the energy and the construction sectors that can also be considered as a favourable change to launch the intended product, i.e. Mysofa (BIS, 2012). The relationship that exists between the UK and other countries lays impact on the trade relations between them. In this respect, political factors might have an impact on the exports and imports regulations (London Borough of Hillingdon, 2012). This will further result in changes within the business operations. In this context, it can be ascertained that political impacts on trade regulations will affect the operations of the retail industry within the UK largely (McDonald & Wilson, 2011). Economic- The UK economy has shown a poor trade standard in the year 2012. Since then, the domestic economy of the UK has been depicting a sluggish growth of its Gross Domestic Product (GDP) i.e. of 1% each year. However, in the latter part of the year 2013, GDP growth in the UK was accounted as 2.1%, which was interpreted to be favourable for the economy and the businesses operating nationally. In this respect, it depicts the increased consumer power with respect to purchasing (Goodwin, 2013). Social- The UK’s urbanisation herein reflects about the percentage of the population stays in the urban areas. UK’s 80% of the entire population live in urban areas. The rate of urbanisation pertaining to the UK reflects around 0.7% annual rate of change. Urbanisation rate herein reflects about the size depicting urban population on that given period. The UK’s urbanisation figures also reflect about the requirements for comfortable furniture’s by the people (IndexMundi, 2013). Technological- The UK’s technological factors have been considered a leader with respect to the technological development observed within the nation over the recent years. UK’s government is investing more in the research and the development sector to innovate latest techniques for gaining competitive advantages. Hence, it can be ascertained that the company can involve in innovative strategies to promote the newly created brands by implementing advance technologies (Nickell & Reenen, 2001). 3.1.2. The Market The furniture along with the furnishing industry of the UK was reported to have contributed around £9.4 billion into GDP in the year 2012. Such magnitude of contribution of the furniture industry reflects about 1.7% of the entire manufacturing output. In this respect, the accelerated demand for the furniture products becomes much visible and justifiable for the favourable condition of the UK market to launch Mysofa. Again, concerning the employment scenario of the UK, it was observed that the furniture industry employs around 17,000 specialists with respect to furniture and furnishing retail sector in 2012. This further adds to the significance of the industry indicating support from its external stakeholders promoting its growth potentials (BFC, n.d.). The Consumers - As discussed above, the demand for latest furniture designs have recently accelerated in the UK. Moreover, it has been ascertained that 80% of the entire population lives in the urban plane. Considering the demand for the furniture, the targeted groups can be determined as young group of earners, newly married couples, corporate groups and the middle to high-income group households in common. In the UK, the young generation consumers are observed to begin earning early and shift to new location thereby creating a demand for furniture, which can be easily tapped by Mysofa. Considering, corporate groups, the employers who wish to renovate the interior, will opt for latest furniture. Newly married couples and normal household sector also might require latest and advance furniture to maintain a standard within the society, while their demand grows along with their income range and comfort requirements (Stokers, 2014; BFC, n.d.). The Distribution Channels - Retails stores and the departmental malls can be used as the distribution channel for the sofa sets. In modern day generation, customers’ remain quite busy and hardly have any time to spend in search of different products at different places. In the similar context, departmental store is regarded as the convenient place, where the customers’ are able to avail a wider range of differentiated products and hence, can work best for Mysofa (AMA, 2013). Correspondingly, the early and respected presence of Stokers in the market may be helpful in creating market share for Mysofa within the short-run (Stokers, 2014). 3.1.3. Competitor Analysis Competitive analysis within the retail sector provides an understanding about the position of Stokers Limited in the market, which shall certainly be impactful for Mysofa to become successful within the targeted market. It has been observed in the context of the UK that growth in the furniture industry within the nation is on continuation currently. This is because consumer demand is decreasing in the retail sector while the supply side is stable, increasing risks of out-dated stock for the manufacturers and the marketers, binding them to charge lower prices. Besides, the accelerated trend of the online browsing and purchasing has laid strong impacts on the retail sector, increasing threats of new entrants from the virtual international market. The leading competitors of the UK furniture industry are The Costwold Company, Heal’s and John Lewis among others, which have also accelerated the intensity of competition in the market, given the increased bargaining power of the customers (Stokers, 2014). As imitability of Mysofa is deemed less powerful, it is likely to face challenges of substitutability from these competitors. Thus, immense focus should be delivered to its differentiation and value creation aspects for the customers. It is strongly believed that adoption as well as execution of differentiation strategy and emphasising the aspect of value creation would certainly assist in attracting the customers towards purchasing broad assortment of furniture in a bulk manner. It is worth mentioning that by analysing the competitors and their strategies, the company i.e. Stokers can develop its newly created brand Mysofa, resulting in enlarging its customer base efficiently. 3.2 Internal Analysis As was mentioned above, internal competencies are essential to be aligned with the external market factors to gain success, when launching a particular product. In this regard, as a new product of Stokers, Mysofa shall be highly affected by the internal competencies of its parent company, which can further be identified in terms of product offerings, product offerings, current customer base and current marketing strategies of the company. Product Offerings Living room furniture, dining hall furnishings and furniture’s and bedroom furniture’s The company also offers a wide range of products with regards to home accessories that further helps differentiating the brand from its rivals The home accessories range include finishing touches, lighting and lamps, pictures and mirrors among others Besides the above range, Stokers also provides furniture series for the outdoor and conservatory purposes The product range of the company further includes an exclusive collection of sunny loungers (Stokers, 2014) Services Offerings In order to gain the customers’ attention, Stokers has included a wide range of services in its product line The company provides its valuable customers’ with the product range at half of the prices offering discounted services Besides, this the company also provides the customers with interest free credit for up to three years The company employs persons who are trained to meet the requirements of the expert delivery to ensure maximum customer satisfaction (Stokers, 2014) Current Customer Base The current customer base of Stokers includes corporate executives, small business owners, executives, homes, and offices among others. In the UK, the employment statistics is measured by Labour Force Survey (LFS). It has been accordingly ascertained that the employment rate is high in the UK within the age group of 16 to 64 years. Considering the small business-owners and the executives come under the similar category of LFS. Majority of the population is into employment that increases the demand for office as well as household furniture. Owing to the fact that Mysofa will offer its customers with the advantage of relaxation and luxurious feeling, it shall be highly preferred within the targeted group. To be precise, in the context of office purposes, Mysofa will act as a stress reducer for the users, while in case of the household purposes; it will act as a luxurious item for the users at a reasonable price and provide them with a better standard of living (Labour Market Statistics Team, n.d.). Current Marketing The current marketing strategies of the company includes online websites, flex display, direct marketing and by various forms of advertisement among others. The company has been involved in communication with the customers by applying both the direct and the indirect modes, such as the verbal and non-verbal communication styles followed by the sales person. Implementation of effective communication with the customers allows the marketing team to have a better understanding of the preferences of the customers. This further helps them to plan and design strategies for better quality products (Stokers, 2014). 4. TOWS TOWS Analysis Strengths Excellent quality rating Shorter lead time for delivery allowing greater price control Low transportation costs and increased economies of scale benefits Sustainable supply chain management initiatives Extensive innovation and designs techniques to deliver exclusive services to the customers Weaknesses The company is still a family run business following centralised way of management affecting its way of modernising its operations Accelerated dependency on the import of goods to assure differentiation in quality features Limited reach in the global market Opportunities Increasing market demand for luxurious furniture in the UK market Governmental aids to increase production With minimum numbers of players, there is high potentiality for growth Due to excellent quality products, the company can tap the opportunity of rising demand for luxury furniture With greater price control, Mysofa will be able to increase its productivity and serve the global market as well Increased economies of scale, sustainable supply chain management and extensive innovation will offer competitive advantage to Mysofa Governmental aids will help the company face the threat of accelerated dependency on the import of goods To increase market share, the company can aim at expanding its global reach through aggressive promotion Threats Centralised way of management might hinder its adaptability to the modern corporate scenario Increasing number of new entrants from the global market raising degree of competition Fluctuating trade relations of the UK with other nations Lowering availability of labour for such labour intensive job Innovation and expansion to the global field might be hindered owing to the centralised way of management Change in managerial perceptions might diminish competitive advantages for Mysofa, although for a short term Low wages in the labour intensive market might create a threat for the company, as the labour market of the economy have choices for employment opportunities in the competitive market Increase in dependency upon import of products and accessories may also create threats with respect to increased bargaining power of the suppliers and fluctuating trade relations 5. Marketing Objectives Stokers have successfully handled the other products in the market with extensive quality customers. The current objective of the company is accordingly mentioned as follows. Stokers aims at launching a new product, i.e. Mysofa in the market Stokers endures the objective of attaining loyal and valuable customers Stoker’s objective also reflects about providing comfort and relaxation to the targeted customers (Stokers, 2014) 6. Strategy 6.1 Segmentation Price shoppers are the consumers those who are attracted on the basis of prices charged by the company through discounted offerings (McDonald & Wilson, 2011). As these shoppers emphasise much on discounts offered by the company, Stokers may perform these strategies of price discounts when launching Mysofa Insecure shoppers are the customers who remains much confused about their preferences (McDonald & Wilson, 2011). The marketing team must ensure effective sales team, who will be capable of convincing such customers to engage in buying activities as this particular segment can prove to be of great value and offer superior loyalty to the brand Value shoppers are the customers those who believe in brand value. In this respect, it can be ascertained that the company can provide such customers with a wide range of branded products to choose from the product line offered under the brand name Mysofa Stokers may also segment its customers for its newly created brand Mysofa by taking into concern the desires of the people in having fine furniture with latest technologies and guarantee greater attraction towards well woodworking (Stokers, 2014) 6.2 Targeting Corporate executives will be one of the targeted customer groups for the company. According to the Labour Force Survey LFS, the UK’s employment population is between the age group of 16-64 years (Office for National Statistics, 2013). This provides a scope for increased demand of furniture’s within the offices Small business executive can also be attributed as the targeted customers as minimum requirement of furniture remains there. Sofa can be a convenient and relaxation mode for the customers as well as the employer and hence, Stokers can avail preferences from this particular customer group through its product line of Mysofa Normal household customers capture the majority of the market. The availability of latest designed sofa will provide them a feeling of a better standard of living amidst the society Newly married couple can also be the targeted customer for Mysofa. As per the culture persisting within the UK, married couples are generally observed to shift in their new apartment or house, which increases demand for new furniture within this group. Additionally, as the products to be offered under the category of Mysofa will also provide lifestyle sophistication with its luxurious designs, it shall also be a preferred gift item for any married couple in the UKmarket Home offices can also be one of the targeted customers for Mysofa as this particular form of business has been proliferated during the 1990s 6.3 Differentiation Stokers has been providing innovative and branded products that greatly differ from the competitors. Mysofa, the product line, which the company wants to launch in the market, differs from others in ways that this particular product has been built keeping in mind the comfort of the customers. According to the company’s mission, similar to all other product lines offered by the company, Mysofa will not only provide comfort but also act as a soothing product for reducing stress of the users. In the context of differentiation strategy, Stokers would offer its new brand, i.e. Mysofa after evaluating the needs as well as the preferences of the customers. 6.4 Positioning The product will be positioned in the market with a tag line ‘luxurious comfort and stress reliever-me and Mysofa’. The customers will be made aware about its underlying benefits, which they will derive in a cost-effective manner (FIRA, 2010). To be mentioned, generating a unique as well as a distinctive brand image in front of the customers would be one of the prime positioning strategies for Stokers. 7. Marketing Mix & e-CRM Decisions 7.1 Product Mysofa, as the new brand of Stokers, will endure unique features as compared to other similar products in the market. The product has been made with a motive to provide comfort as well as reduced stress of the customers. 7.2 Price The price of the product has been kept in compliance with the furniture industry standard in the UK. The price of the product will range from a minimum of £1,330, which is supposed to be affordable by the targeted customer group. 7.3 Place As discussed, the company will participate in direct marketing through retail agents or departmental stores and auction houses among others for effective distribution and sales of the product. 7.4 Promotion The company will include both the direct and the indirect modes of advertising. For instance, the company will opt for newspaper advertisement, flex display, television advertisement and online advertisement through company websites as well as social networking sites, which can be categorised as the examples of direct communication. Furthermore, the company can also focus on celebrity endorsement strategies that would be persuasive in attracting the attention of a huge volume of customers as an indirect advertising mode. 7.5 e-CRM Stokers will develop an effective customer base, which will be applied in developing long-term relationship. Besides, the company will also utilise the data in gaining information about the relatives and close friends of the existing customers to promote the new product. 8. Implementation The implementation of the marketing strategies will follow a table and series of activities for effective sales and promotion of the product. 9. Budget 10. Evaluation and Control In order to evaluate the performance and effectiveness of Mysofa in the market, few Key Performance Indicators (KPIs) will be determined. One of the KPIs can be considered as ‘through-the-door’, which reflects about the number of customers visiting the shop. Besides, the sales performances of the product can also be measured by evaluating the feedback forms of the customers. On this basis, the company can implement further measures for achieving accelerated profits (Miller, 2012). 11. Appendix 11.1 Overview of the World Furniture Industry Source (FIRA, 2010) References AMA, 2013. Office and Home Office Furniture Market Report - UK 2013-2017 Analysis. About Us. [Online] Available at: http://www.marketresearch.com/AMA-Research-v175/Office-Home-Furniture-UK-7555690/ [Accessed April 20, 2014]. BIS, 2012. Industrial Strategy: UK Sector Analysis. BIS Economics Paper, No. 18, pp. 1-36. BFC, No Date. About The Furniture Industry. Home. [Online] Available at: http://www.britishfurnitureconfederation.org.uk/about_furniture_industry.php [Accessed April 20, 2014]. FIRA, 2010. Competitiveness of the UK Furniture Manufacturing Industry. Documents, pp. 6-58. IndexMundi, 2013. United Kingdom Religions. Demographics. [Online] Available at: http://www.indexmundi.com/united_kingdom/religions.html [Accessed April 20, 2014]. Goodwin, A., 2013. The UK Economic Outlook. The Green Budget, pp. 23-52. London Borough of Hillingdon, 2012. The Retail sector –Key Trends. Strategic Perspective, pp. 1-16. Labour Market Statistics Team, No Date. Topic guide to: Employment. UK National Statistics. [Online] Available at: http://www.statistics.gov.uk/hub/labour-market/people-in-work/employment/index.html [Accessed April 20, 2014]. Miller, M., 2012. B2B Digital Marketing: Using the Web to Market Directly to Businesses. Que Publishing. McDonald, M. & Wilson, H., 2011. Marketing Plans: How to Prepare Them, How to Use Them. John Wiley & Sons. Nickell, S. & Reenen, J. V., 2001. Technological Innovation and Economic Performance in the United Kingdom. Centre for Economic Performance, pp. 1-48. Office for National Statistics, 2013. Labour Supply. Home. [Online] Available at: http://www.nomisweb.co.uk/reports/lmp/gor/2092957698/report.aspx [Accessed April 20, 2014]. Stokers, 2014. Stokers Fine Furniture. Home. [Online] Available at: https://stokers.co.uk/collections [Accessed April 20, 2014]. Read More