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Marketing Plan

Introduction to Marketing

Option #1: Marketing Plan for a New Product or Service – Spree Watch

Executive Summary

Spree Watches is a business proposal for newly designed and developed watch devices from the general metallic hand-watch. The watch is associated with the present generation and fashion in the marketplace. The proposed marketing plan demonstrates the company's marketing segment and operational strategies. According to Goethals et al. (2020), a marketing plan presents a strategy to get clients and increase income flow. It is necessary to note that Spree Watch Company is focused on watch production and interested in fashion designs and trends in the market. The creation of watches based on the current fashion gives the company an upper hand over its competitors. Nonetheless, the proposed project will give a new outlook of the hand-watch fulfilling the consumers' desire to wear the device.

Spree Watch Company is expected to fund the development of the newly founded business idea for the proposed product. There are needed consulting services on how to run the project; targeted clients will use the hotline provided to make calls and send messages to raise their concerns.

Company Overview

  • Mission: “Spree Watch is revolving the use of hand-watch devices. By connecting the wearable gadget to fashion trends, we make watches look more attractive for specific professions and fashion style.”
  • Background

About the name, Spree Watch was established out of the love, dedication, and passion of the owner of watches based on the current fashion and increased demand in the market. The proposed company's objectives and goals are to offer quality and affordable products to the people who love wearing hand-watch in the United States. The company's initial investment is $50,000 targeting annual returns of $60,000. The projected business will continuously incorporate innovation and reach new customer demands in broader areas. Other than operating locally, Spree Watches has plans to open new branches internationally. Presently, the organization will focus on developing new outlets within the U.S. as the platforms where consumers can reach out to buy quality watches. According to Goethals et al. (2020), a marketing plan is essential in bringing clients on board for any business thriving for success.

Spree Watch Company is expected to fund the development of the newly founded business idea for the proposed product. There are needed consulting services on how to run the project; targeted clients will use the hotline provided to make calls and send messages to raise their concerns.

SWOT Analysis

Strengths

Strategic location is provided as one of the company's strengths. Spree Watches is situated in a quick access area. The firm will use billboards to showcase directions towards its premises. Besides, Spree Watches has identified and hired workers with a positive attitude towards its production. Retaining workers is the other strength the company is proud of; it is essential when looking at consistency and production experience (Devaney et al., 2015).

Weaknesses

Recruitment and training is the main challenge projected for the company. Devaney et al. (2015) affirm that it is costly to run training programs for newly hired employees. The problem pulls back Spree Watches Company; it should be noted that the organization is still in the developing stage, and increased pressure on its performance can result in failure if not well managed.

The Company's employees are the best investment plan of all time. The organization enjoys the already existing market awareness of general watches that will make it easier to persuade consumers on newly founded product service "Spree Watches."

Spree Watches constantly recruit workers to fill its newly founded outlets across the United States and the international branches.

Opportunities (trends)

There is significantly no barrier in starting and operating Spree Watches in the U.S. The little barrier to enter allows for instant development of the business to explore the market. Availability of advanced technology is paramount for starting a new product-service; it enhances performance making it easier to manufacture (Mei et al., 2020).

Threats

Government interference is the main threat to the business. The U.S. is mandated for protecting employees, sanitation, and workers' safety. There is no doubt that the company will have to spend more funds to ensure all the government requirements are fulfilled before commencing its functions.

If Spree Watches fails to operate as the owner projected, it will likely lose more capital set aside to start the business. Government interference can result in increased operational costs not planned for, leading to struggles to survive in the harsh market environment.

Segmentation and Targeting Analysis

Marketing Plan Objectives

  • Customers are the primary pillar for the success of any business. Therefore, organizational management needs to focus on achieving customers' satisfaction by looking at the following objectives:
  • To promote the business returns to at least 60 percent margin
  • To reach out to customers' response to the type of quality and hand-watch device they desire to have.
  • To break-even in within the next one and half years in operation
  • Spree Watches intends to merge the leading watch outlet in the country.

However, Spree Watches Company will not place clients at the center of its strategies and objectives to realize profitability and productivity. The firm will put together marketing and better business plans to attain maximum profits annually.

Segmentation

Definition: it is the process incorporated in the organizational development to divide the targeted market into categorized and smaller units for easier management (Marc, 2020). Taneja (2020) asserts that market segmentation divides audiences and customers into small groups with similar characteristics, including their interests, location, demographics, and needs.

Spree Watches Company will integrate differential strategies to compete with its competitors, such as conventional enterprises that offer quality watches. Through effective and adequate segmentation, Spree Watches will offer its customers satisfactory services both in the United States and the international market. The market segment has enabled the company to retain and attar customers (Taneja, 2020). These will help the organization achieve increased productivity and profitability in the watch sector.

Marketing Segmentation

Marketing segmentations adopted by Spree Watches Company are:

  • Psychographic segmentation: the company segments customers and audience by factors associated with their characteristics and personalities such as lifestyles, interests, values, motivations, priorities, and personality traits.
  • Geographical segmentation: is probably the easiest market segmentation, grouping consumers based on their geographic borders (Taneja, 2020). Spree Watches integrate Zip code, country, rural or urban, climate, city, and radius distance around the location.
  • Demographic segmentation: it one of the commonly used approaches by most business organizations. Spree Company refers to the statistical data about a specific group of people based on their gender, age, location, annual income, education, ethnicity, and income.
  • Behavioral segmentation: it emphasizes the reactions of the customer other than who they are. Spree Watches identifies users' status, spending habits, brand interactions, and purchasing habits by placing them in different groups.

Marketing Strategy

Target Market

The product consumers are the most significant people for any thriving business. Spree Watches targets specific and unique clients, especially women and professionals in the marketplace. The most important thing is that the Americans getting Spree Watches are satisfied with both employees' relations and services offered. The company has managed to identify the potential and primary target group in the market. The information is significant in organizational development and strategic planning for products manufactured.

Spree Watches Company marketing plan focuses on the consumers with a great preference for specific and extra features within the newly founded devices. Nonetheless, the company uses both postpaid and pre-pay services to provide a smooth operation in trade. The company aspires for a wider market within the next two years in operations by creating awareness via social media platforms and its website.

Position Mapping

 

Spree Watches position mapping.

Key

H stands for high

L stands for low

Marketing Mix Using the 4Ps

Price (compared with competition)

The projected price survey revealed that the average selling price for fashionable Spree Watches could cost $50. The discount price for the first time and repeated customers were 25 percent and 20 percent respectively. There is likely to be experienced little inflation in the prices of Spree Watches in the next five years in operation due to increased competition and product supply putting pressure on the market price for watches.

Product (features and benefits versus the competition)

The Spree Watches Company ensures that consumers are subjected to high-quality product services at an affordable price. The approach is aimed at retaining customers. The company will offer service and benefits delivery; the method integrated to keep esteem customers. Spree Watches are smart products incorporated with the following features: a sensor, a battery that lasts up to twelve hours, pedometer analysis, sleep monitoring, accelerometer, remote phone camera, and anti-lost tracker.

Spree Watches competitors' watch devices are installed with the following features: metallic frame, glass ceiling, water-resistant, and beautiful finish.

Price Strategy

Spree Watches company incorporate two pricing strategies:

  • Competition-based Pricing: commonly referred to as competitor-based pricing. It focuses on the existing market price to set its own rates, not considering the production costs (Marc, 2020). The company uses competitors' rates as a benchmark to determine its product prices. It is significant based on the highly saturated market for the watch business.
  • Penetration pricing: it works in line with skimming pricing when joining a new market (Massa and Schumacher, 2020). Spree Watches introduces its product services into the market with relatively low prices to persuade consumers to taste the product.

Spree Watches integrates price elasticity in pricing strategy to test whether the service or products are sensitive to change prices before initiating new pricing strategies.

Promotional Strategy

Spree Watches marketing plan has established four regional managers, 15 district managers, a national accounts manager, and over 160 sales representatives. The sales representative teams are dressed in the products’ brand holding public shows across the country. The national accounts managers promote the company’s product across the top-level leadership in different organizations; they interact within daily activities (Massa and Schumacher, 2020). The Spree Watches Company incorporates four promotional strategies: direct marketing, advertising, public relations, and personal selling.

The promotional strategy allows the business organization to channel its limited resources to better paths to maximize sales and attain sustainability. Spree Watches Company builds on promotional strategies to create a competitive advantage in the industry.

Place Strategy

Strategic location and distribution delivery point are important for any business to grow. Place strategy is commonly referred to as a distribution strategy being one of the essential components of the 4Ps. It helps identify where the company will construct its warehouse, retail stores, online and physical, and other means the firm can reach out to its consumers.

Spree Watches will incorporate a distribution method composed of producers, wholesalers, retailers, and consumers. The main distribution channels in the marketplace appear like that in the diagram above.

Branding Strategy

Brand strategy is often a long-term plan for any organization's development goals (Massa and Schumacher, 2020). Spree Watches Company is certain that the business will acquire its brand accepted and selling across the United States within a period of two years. The company targets to sell its brand on the international market in the period of three years after the commencement of its performance.

The following strategies are incorporated to help sell out the Spree Watches brand to the public:

  • Clear definition of business goals and purpose
  • Use of long-term traps other than short-term goals
  • Staying flexible and on course to implement the business idea

Corporate Social Responsibility Strategy

For years, business entities have believed that their purpose for existence was financial gain and maximizing stakeholders’ value (Marc, 2020). In the present world, corporate social responsibility (CSR) is among the most incorporated idea when starting a business. Spree Watches has focused on social and environmental responsibilities, taking into account its impact on the surrounding, including communities, stakeholders, employees, and customers.

Among the reasons for integrating CSR at Spree Watches are:

Moral obligation: the external parties, including communities, are only satisfied with the company's performance only when a balance is met between business and social response practices.

Sustainability: it entails meet the present consumer needs without interfering with the livelihood of the future generation. It is important to invest in environmental sustainability programs to find financially, socially, and environmentally friendly (Massa and Schumacher, 2020).

Ethics and Corporate Social Responsibility

Spree Watches incorporate business ethics, which all individuals ought to follow when performing their duties. The adopted ethics are founded on the notions of wrong, right, or considered fair performance. Among the parties guided by Spree's ethical consideration, Watches are employees, stakeholders, customers, and suppliers in business operations. The company promotes codes of conduct based on trust and integrity while accommodating empathetic decision-making, diversity, and government compliance requirements.

Spree Watches is keen to identify and prevent:

  • Discrimination and harassment in the workplace
  • Promote workers safety, healthcare, and wellbeing in the workplace
  • Use of social media and whistleblowing rants to promote its corporate social responsibility.
  • Provide ethics in the accounting process

Financial Projection

The following presents the financial projections for two years in operations, the targeted period to have hit the break-even (BE).

BE= Fixed costs ÷ {(Unit sales price) – (Unit variable cost)}

The monthly overhead for Spree Watch is $60,000. Unit sales price (USP) is $350, and Unit variable cost is (UVC) is 230

Spree Watches Company's Projected Financial Performance for a period of Two Years.

 

Summary of Cash flow and balances

     

 

 

2021

2022

   

 

Sales made

$160,000

$240,000

   

 

Company payments

$18,000

$32,000

   

 

Assets

$50,000

$50,000

   

 

Debit Service

$15,000

$15,000

   

 

         

 

Net Operating Cash Flow

$250,000

$300,000

   

 

         

 

Starting Cash Balance

$320,000

$650,000

   

 

         

 

Net Cash Flow

$250,000

$300,000

   

 

Capital Additions

TBD

TBD

   

 

Loan Incomes

N/A

N/A

   

 

Capital Procurements

TBD

TBD

   

 

Other Draws

       

 

         

 

Closing Cash Balance

$147,000

$240,000

   

 

Overhead Expenses Per Year

   
 

2021

2022

Overall Payroll

$120,000

$200,000

Facilities, Rent and Fees

$8,000

$8,000

Other Utilities

$3,000

$3,000

Insurance coverage

$12,000

$12,000

Advertisement and Promotions

$1,000

$1,000

Purchase of equipment

$20,000

$20,000

Repairs & Maintenance

$2,000

$2,000

Property Taxes

$3,000

$3,000

Workplace Supplies

$800

$800

Mobile Phones

$250

$250

Internet connectivity

$100

$100

Emergencies/ suplimentaries

$5,000

$5,000

Licenses coverage charges

$5,000

$5,000

     

Total expenditure

$180,150

$260,150

               

 

Conclusion

In conclusion, the Spree Watches Company will incorporate social responsibility, which is the primary reason for any business's existence in society. Corporate social responsibility will help the newly found business thrive well in the community by positively relating to workers and stakeholders, and customers who live in the surrounding. Nonetheless, consumers' choice influences the organizational performance on the type of product to supply. Therefore, Spree Watches will incorporate the upward slope, which informs the business management of how the customers respond to the product regardless of the costs of production and price set for the product service.

References

Devaney, C., Kearns, N., Fives, A., Canavan, J., Lyons, R., & Eaton, P. (2015). Recruiting and retaining older adult volunteers: Implications for practice. Journal of Nonprofit & Public Sector Marketing27(4), 331–350. https://doi.org/10.1080/10495142.2015.1015373

Goethals, L., Barth, N., Hupin, D., Mulvey, M. S., Roche, F., Gallopel-Morvan, K., & Bongue, B. (2020). Social marketing interventions to promote physical activity among 60 years and older: a systematic review of the literature. BMC Public Health20(1), N.PAG. https://doi.org/10.1186/s12889-020-09386-x

Marc, E. D. (2020). Introduction to Marketing. [Textbook]

Massa, M., & Schumacher, D. (2020). Information barriers in global markets: Evidence from international subcontracting relationships. Journal of Financial & Quantitative Analysis55(6), 2037–2072. https://doi.org/10.1017/S0022109019000528

Mei, L.G., Hwee, C.A., Seng, H.T., & Wei, L.O. (2020). Examining the determinants of consumer purchase intention towards mobile advertising. Global Business & Management Research12(2), 89–103.

Taneja, H. (2020). The myth of targeting small, but loyal niche audiences: Double-jeopardy effects in digital-media consumption. Journal of Advertising Research60(3), 239–260. https://doi.org/10.2501/jar-2019-037