The introduction of an ultrasonic dish washer - Essay Example

Contents MISSION ment 3 3 Aim of the Marketing Plan 3 2  Marketing AUDIT (Internal) 3 2.0Company and Product/Service OVERVIEW [REQUIRED] 3 3   Situation Analysis (External) 4 3.1 Environmental Review 4 3.2 Market Overview 4 3.3 Market Segmentation Review 5 3.4 Competition Analysis 5 3.5 Distribution Analysis 5 3.6 Competitive Advantage Review 6 3.7 Critical Success Factor Review 6 4 SWOT Analysis (Summary) 6 4.1 Strengths & Weaknesses 7 4.2 Opportunities & Threats 7 5 OBJECTIVES and Issues 8 5.1 Financial Objectives 8 5.2 Marketing Objectives 8 5.2.1 Existing Markets - Penetration & Development 9 5.2.2 New Markets - Entry & Development 9 5.3 Sales Objectives 9 6 MARKETING Strategies 10 6.1 Target Market(s) Definition 10 6.2 Value Proposition 10 6.3 Positioning Strategy 10 6.4 Marketing Research 10 6.5 Marketing Mix Strategies 10 6.5.1 Product Strategies 11 6.5.2 Pricing Strategies 11 6.5.3 Promotion Strategies 11 6.5.4 Distribution Strategies 12 6.5.5 People Strategies 12 6.5.6 Process Strategies 12 6.5.7 Physical Evidence Strategies 13 7 IMPLEMENTATION and Control 13 7.1 Action Programme / Schedules 13 7.2 Budgets 13 7.2.2 Expected Revenues 13 7.2.3 Expected Expenses 14 7.3 Marketing Information System 14 7.4 Evaluation & Controls 14 1 MISSION Statement The mission statement of Ultrasonic dishwasher is to provide comfort and cost- effective solution to the people around the world in cleaning and washing of dishes and other crockery. Ultrasonic dishwasher would offer bacteria free cleaning to make sure that the cleaning does not harm the health of people. 1.3 Aim of the Marketing Plan The main aim of this marketing plan is to analyse the introduction of an ultrasonic dish washer, a product that Ultrasonic Solutions is introducing in the market by analysing the behaviour of consumers and how the firm should manage its marketing campaign to make the most of the opportunities prevailing in the market. 2  Marketing AUDIT (Internal) 2.0Company and Product/Service OVERVIEW [REQUIRED] The company will be named as the Ultrasonic Solution providers and one of the main products that will be introduced by the company would be the Ultrasonic dish washer. The product will be offering cost-effective solution to people in washing of dishes and other crockery. In addition to this, the product will be offering them comfort as many people do not like to wash dishes and crockery but with ultrasonic dish washer, the problem of washing and cleaning crockery would be solved. The product would be first introduced in the United Kingdom and then with the passage of time, company would expand its offerings in other countries of Europe and then in other parts of the world. In addition to this geographic location, Ultrasonic Solutions aims to expand its product range as well and in future it will be coming up with more products that could solve their problems related to home activities. 3   Situation Analysis (External) 3.1 Environmental Review Dish washers require large amount of water to be used and this is one of the major environmental concerns of this product. However Ultrasonic dish washer would require 30 litres of water. However one of the important features of Ultrasonic dish washer is that it would recycle 20 liters of water and therefore only 10 liters of water would be required. 3.2 Market Overview Although there are some products that help people in cleaning of dishes and crockery, however ultrasonic dish washer has several functions that would help in solving this problem. With the passage of time, the demand of such products has been increasing not only in private homes but in different restaurants and hotels as well. dish washers have been very helpful and a very good solution for people and restaurant owners in washing of dishes as this not only reduces the time that is involved in washing of dishes but it also reduces the cost. There has been an increasing usage of products like dish washers as this has provided people the convenience and cost-effective solution as before the introduction of dish washers in the market, people have been realising the importance of such products. On the other hand as people are realising the importance of dish washers, there has been an increasing trend of firms entering the market and therefore the competition level has been increasing. 3.3 Market Segmentation Review The market of dish washers can be segmented into two broad categories; general household consumers and restaurants. Both of these markets can be fruitful for the firms that have entered in the industry. It is important for the firms to identify and analyse the characteristics and different needs of these two broad market segments and then offer products to meet their needs. Domestic users or household consumers would like to have more cost-effective solution whereas the other market segment of restaurant owners would like to have a speedy solution but it should also be a cost effective one as there would be large number of dishes and crockery that needs to be washed. So, it is important for the firms operating in the industry to meet these needs. 3.4 Competition Analysis There are different firms offering dish washers in the market and some of the leading companies offering dish washers in the market are: Qingdao Smad Electric Appliances Co.,Ltd Shanghai Veetsan Commercial Machinery Co. Ltd Uniworking Co., Limited Miele 3.5 Distribution Analysis The company will be distributing the products to different retailers and wholesalers. In addition to this, the company will be having an outlet or store from where they would be directly selling the products and making sure that the problems of customers are solved. Also the company will be having an online presence and they would be selling the products online as well. 3.6 Competitive Advantage Review One of the major competitive advantages of Ultrasonic dish washer is the cost of operations and overall cost of maintaining the dish washer. In addition to this, the dishes after being cleaned from this product are 99.999% free from bacteria which is another competitive advantage and the product holds NSF certification which other lacks. The other competitive advantage includes energy efficient product and A++ rating of wash performance. 3.7 Critical Success Factor Review The management of the company would give importance on the success factors and this is one of the reasons why the company has kept its price low and consumers would not have to pay much in order to operate the dish washer. Therefore the cost of managing the dish washer is one of the major critical success factors. Other success factors include; bacteria free, NSF certification, energy efficient, rated A++ in terms of wash performance and there are several other success factors that competing products lack. 4 SWOT Analysis (Summary) The SWOT analysis of Ultrasonic dish washer is as follows: 4.1 Strengths & Weaknesses The major strengths of Ultrasonic dish washer are: It offers cost effective solution to the people. A special detergent would be used to clean the dishes and it would cost £0.03 per tablet. The speed of washing dishes is fast as it takes 70 minutes for a standard wash and 90 minutes for an ‘extra power’ wash, therefore it is faster than other dishwashers in the market. The wash performance of the dish washer is rated A++ Energy efficiency of the dish washer is rated as A++ The dish washer would clean bacteria as well. The machine has a NSF certification and this would that the dishes would clean the bacteria by 99.999%. The dish washer does not make high noise like others and its maximum noise level is 35dBa. The machine has a proper system of waste material. Weakness of the ultrasonic dish washer is as follows: The cost of the product is high. It would cost around £115 which is a bit high in comparison to the market. 4.2 Opportunities & Threats The opportunities of dish washer are as follows: The demand of dish washers has been increasing and therefore an opportunity has been created in the market for such products. People are realising the importance of dish washers and this is one of the reasons why more and more domestic users and restaurant owners are starting to use this product. Threats of such products are as follows: A perception might build up in the minds of the users about the cleanliness of dishes and crockery being cleaned by dish washer. The number of competitor is increasing after analysing the growing opportunities in the market. 5 OBJECTIVES and Issues The objectives of the firm have been divided into different categories; financial objectives, marketing objectives, sales and revenue objectives. 5.1 Financial Objectives Financial objectives are important for every firm as it is important for firms to achieve its financial objectives. The main aim of firms is to make profits and for this, it is important for firms to have definite financial objectives. One of the most important financial objectives of the firm is to achieve break-even in the second year of its operations. In addition to this, the company has set a target of net profit of £150,000 by the end of third year. The company would be segregating the financial objectives into small objectives and then after analysing the external and internal condition, the financial objectives would be revised accordingly. 5.2 Marketing Objectives Marketing objectives are very important for different firms, as without marketing objectives firms would not be able to achieve their financial objectives. Marketing objectives for Ultrasonic dish washer has been divided into two broad categories: 5.2.1 Existing Markets - Penetration & Development Ultrasonic dish washer would be analysed and penetrating the markets in which it is operating. The company would be analysing the markets in which it is already operating and present and then come up with different strategies and tactics to make the most of these markets. The firm understands that entering a market is a costly thing, and therefore it is important for the management to penetrate and develop the market in the right way so that higher returns are achieved from each market. The firm would be analysing different markets and the performance of the firm in that market and the performance of competitors, so that strategies can be formulated accordingly. 5.2.2 New Markets - Entry & Development The other major marketing objective of Ultrasonic dish washer would be to enter and develop more markets where firm could achieve higher profits. Ultrasonic dish washer would be analysing not only more areas of United Kingdom, but it would expand its services to other parts of European Union and then to other countries of the world. 5.3 Sales Objectives Sales objectives are important for firms to achieve profits as this is the source of earning revenues. The management would be setting up different sales objectives and sales target and would be analysing the performance of the firm. The management of the firm would be analysing the potential of the geographic market and target market and the performance of firms in the market, and then compare the performance of the firm with the performance of others. Sales objectives would be helpful for the management to analyse whether they are on the right track or not and whether the performance of the firm is satisfactory in comparison to other firms or not. 6 MARKETING Strategies 6.1 Target Market(s) Definition The target market of Ultrasonic dish washer would be divided into two broad categories; domestic or household consumers and restaurants and hotels. Household consumers or domestic users would include the general public that would need these dish washers to clean the dishes and other crockery at their home. On the other hand, the restaurants and hotels would be the category where they would need to wash dishes in large quantity and in short time. The same product can be targeted to other markets as well like hospitals where there are large quantity of dishes and crockery to be washed and other places like these. 6.2 Value Proposition The main value that this product would offer to the customers is the cost and time savings of the product. 6.3 Positioning Strategy The company will position itself as one of the most cost-effective dish washing solution providers as the maintaining and operating cost of this dish washer is low in comparison to others competitors in the market. 6.4 Marketing Research The research shows that there has been an increasing trend of consumers using dish washers. The research has also shown that the industry would further grow with the passage of time. 6.5 Marketing Mix Strategies 6.5.1 Product Strategies The main product that would be offered by Ultrasonic Dish washer would be the dish washer that would be offering a cost effective solution to meet the needs of household consumers as well as restaurant owners. The main product would be cheaper in comparison to other products in the market. Also the product would have NSF certification and it would be free 99.999% from bacteria. The other important feature of the product would be the cost per unit or variable cost requires operating and washing dishes which are low in comparison to others. The other important advantage of the product is that its wash performance and energy efficiency has been rated as A++. The company would be demonstrating the advantages and benefits of the products in order to attract target market and it would be realising how important this product can be to both these target markets. 6.5.2 Pricing Strategies The company has set up a price of £115 however this is just a onetime cost. The important consideration is the variable cost which is low and it is £0.03 per tablet and one tablet. Therefore the management would be attracting customers by highlighting the long term cost of having Ultrasonic dish washer in comparison to other products in the market. 6.5.3 Promotion Strategies The company would be promoting the product by highlighting the benefits of the product. The promotional strategies would include identifying the cost of using the product and the comfort that people can have by using such product. In addition to this, the company will be using different general consumers who have already used the product and they would be highlighting how beneficial it is for people to use ultrasonic dish washers. 6.5.4 Distribution Strategies Distribution strategies would be critical for the success of the firm. The firm at the moment has planned to offer its ultrasonic dish washer to the retailers and wholesalers. In addition to this, the company would be selling the products directly from its website. Different retailers and wholesalers would be encouraged to keep the product at their store so that more and more people are able to see the product and therefore the sales of the product can be increased. As at the introductory phase, the management would be aiming to expand its market and increase the number of places where the product is available; therefore they would be giving incentives to different retailers and wholesalers for keeping the products. 6.5.5 People Strategies The company would be giving importance to the human resource as the human resource is the most important asset of any organisation. The management would be hiring specialists for different jobs and it would be managing the overall operations on the basis of departments. At the moment, the management aims to have different department for marketing, for sales, for finance and for operations to make sure that the overall operations of the firm is managed in the right manner. The management would be keeping an eye on the performance of the human resource and rewarding the better performers. So that a motivation level is ignited in others and every one aims to perform better than others. Rewarding employees would be one of the important strategies to retain and attract better employees. 6.5.6 Process Strategies The company will be keeping an eye on the process of the firm. The company would be implementing total quality management in order to reduce the defect rates so that every consumer is able to have the same kind of product. The management would be evaluating the processes regularly and then analysing the need for improvement in the process. 6.5.7 Physical Evidence Strategies The company besides having an online presence and offering its product at different retailers and wholesalers, it would also be having an outlet that would serve as the customer care centre as well as the sales point. The company would be having its physical store or outlet from where customers can also lodge complains and asks for suggestions and improvement in the products. 7 IMPLEMENTATION and Control 7.1 Action Programme / Schedules The company will be introducing the product in the mid of 2012 and it aims to introduce its product initially in London and then it would move to other geographic locations. The company aims to cover all the major cities and regions of United Kingdom by the end of 2012 and by the mid of 2013, it would be offering the product in other parts of Europe. 7.2 Budgets 7.2.2 Expected Revenues The company expects to increase the sales by 25% every year. First year sales are expected to be 2000 units. Also the company will be expanding its markets and this further help in increasing the sales in the years to come. The following table shows the sales that the company expects to earn in the first three years: Year 1 Year 2 Year 3 Revenues 230,000 287500 359375 Units Sold 2000 2500 3125 Cost per unit 115 115 115 7.2.3 Expected Expenses The expected expenses of the firm are as follows: Cost of goods 70000 Expenses Salaries 25,000 Social Media Marketing Expense 6000 Online promotions 60,000 SEO 12000 Online banners 24,000 Direct Marketing 12000 Total expense and cost 209000 7.3 Marketing Information System Information system would play an important role and the management of the company would be emphasizing on using the information in the right way to make the most of the opportunities in the market. 7.4 Evaluation & Controls The management would be evaluating the cost and revenues of the firm after every quarter and then take actions accordingly. The management would be evaluating different marketing channels and the benefits arriving from these marketing channels and then take actions accordingly so that the marketing channels that yield the highest benefit are invested more. BIBLIOGRAPHY Anderson, P. (1982). Marketing, Strategic Planning and the Theory of the Firm. The Journal of Marketing, 46 (2), 15- 26. Borden, N. (1964). The concept of marketing mix. Journal of Advertising Research, Retrieved November 29, 2011 from http://www.commerce.uct.ac.za/managementstudies/Courses/bus2010s/2007/Nicole%20Frey/Assignments/Borden,%201984_The%20concept%20of%20marketing.pdf Haberberg, A., and Rieple, A. (2008). Strategic Management: Theory and application. New York: Oxford University Press. Kotler, P., and Keller, K. (2009). A Framework for Marketing Management. New Jersey: Pearson Prentice Hall. Lovelock, C., and Gummesson, E. (2004). Whither Services Marketing? In Search of a New Paradigm and Fresh Perspectives. Journal of Service Research, 7 (1), 20 – 41. Lovelock, C., and Wirtz, J. (2011). Services Marketing – People, Technology, Strategy. New Jersey: Prentice Hall. Read More