project/powerpoint presentation
GROUP 3 MARKETING PLAN
Product - Tony Little Footwear - Cheeks® Sandals
https://www.cheeksforlife.com/ -
https://www.tonylittle.com/cheeks/
https://www.facebook.com/CheeksFootwear/
Milestone 2 -complete
Objectives
· Company mission:
1. mission statement,
1. “To provide the public with a fun, affordable, stylish, and functional sandal created by a fitness guru, made for the fitness enthusiast”
. definition of the business
2. Health and fitness industry, B2C, retail footwear
. contribution of the unit and distinctive competence
3. It will create additional growth opportunities by expanding the Tony Little footwear line and diversifying his products
3. These sandals are backed by warranty and worn by the celebrities and other fitness professionals
· Financial objectives:
1. Even though the ultimate goal of Tony Little Cheeks Sandals financial objectives is to make profits and money, they help provide an understanding of how the desired amount is achieved, the timeframe, and how the received profits will be spent. As such, the focus on the financial objectives is to attain profitability in line with the company’s long-term health, mission, and survival in the ever-competitive business environment.
1. The principal financial objective is to achieve a return on investment. For example, the total cost of production per pair, including marketing and distribution stands at $18. Therefore, every sandal should be sold between $30 to $40 per pair. Depending on marketing conditions and forces, it implies that the return on investment will range from 50% to 95%. As such, there is an assured growth in profitability and revenue for the company. The strategy presents other financial objectives such a more diversified revenue base, bigger cash flows, and increased market value of the company. The focus is to achieve the goals by March 2021.
· Marketing objectives:
0. Increase online sales by 25% within the first 3 months of the new sandal promotion
0. Improve traffic conversion rate on both physical stores and online platforms by 30% by February 2021.
0. Analytically, the highlighted objectives are focused on helping Tony Little cheeks sandals increase its sales volume, conversion rate, increased revenue and profitability by February 2021.
Milestone Three - complete
Marketing Analysis
Markets/products overview: provide basics of the marketing plan and background about market segments pg. 40
0. Our product can offer different solutions for different wants and needs b/c they are comfortable, affordable and stylish so even the younger generation can find them appealing; we just need to make more people aware of it
1. Products can be for everyday use, comfort & casual, walking, outdoor activities - have that focus on exercise and health but are still stylish
. What is our product? - The products specifically manufactured are Cheeks Sandals and Bandals which are massage and exercise sandals. Cheeks® is the registered trademark name of his footwear line. Made for adults sizes 5 - 11. Mosty for women but some men as well.
· MARKETING PLAN
0. Our marketing plan consists of the following (on a high-level)
1. Objective - get more sales, awareness, and engagement with Tony Little’s Cheeks Sandal line
1. Goal - Sales of Cheeks Sandals
1. Strategy - Social media, Google Ads & Shopping, TV
1. Target Audience - mostly females, national online targeting but local for TV since so expensive
. Market segmentation
2. The market segment consists of the following target audience
1. Gender - mostly female
1. Age - Older demographic, but to not restrict ourselves, we will start broad and younger at 40+
1. Income - target all incomes since product is affordable and they have specials
1. Attributes - folks who are retired, but want to remain active. They enjoy doing outdoor activities such as walking, golfing, eating out, exploring and being community oriented
1. According to Claritas -->"empty nests" ( Upper Midscale Mature w/o Kids) "American classics" ( Lower Midscale Mature w/o Kids) so basically people without kids
Marketing macro-environment trends: technological, economic, political, and legal
1. The macro-environment contains factors that shape opportunities and also pose threats and vulnerability to the company and its products (Claessens, 2020). Technological trends link to the creation of new technologies. It creates an excellent opportunity for new products and market opportunities. For example, wireless communication and mobile applications have offered a good chance for Tony Little Cheeks Sandals to penetrate the market. Through social media, the target audience can be informed about available products and the benefits of using sandals.
1. Political trends relate to laws, regulations, and policies placed by governmental agencies or the political class. They directly influence and restrict the company's activities. For example, in our case, certain restrictions may determine the choice of words, content, and pictures to advertise the sandals, but since it is trademarked it should be less of an issue. Additionally, they connect to the safety, pricing, competition, and environmental sustainability of the product. Therefore, while marketing the product in different cities, it is vital to consider their specific laws and regulation to ensure success in brand marketing.
1. On the other hand, economic trends touch consumers' purchasing power, spending patterns, and behaviors. It is crucial to pay attention to sales tax/VAT, spending patterns, unemployment rate, inflation rate, GDP real growth rate, and disposable personal income. The factors paint the real situation on the ground and provide the business with an understanding of the specific target group to focus on. In totality, the micro environment provides the marketers with specific areas that could drive opportunities or threats to the business processes.
Where are the product manufactured?
0. Our product will be made and produced domestically and sold throughout the nation via online shopping, & TV
0. During the summer months we will be selling and shipping to all states, however during the colder months, we will only be targeting the south (No Northern states until we expand our shoe line)
How will the economic situation (possible depression, pandemic) as well as any sociocultural aspects affect your plan? The manufacturing aspect of it? - will that be affected
1. Since our products are affordable and are good for multiple occasions, I do not think the pandemic will affect sales as much as other businesses
1. But since people have not been out and about as much that is affecting use of the sandal and if no one is using it then no one needs or wants another pair per se
1. Will that impact distribution?
3. If it keeps trying to sell and distribute up North, this could affect sales greatly because it would not be in demand nearly as much
3. If demand keeps falling, distribution costs will rise
Competition situation: describe major competitors in terms of
Size, Goals, products, marketing strategies, relevant traits (pg 276)
1. Main competitors (online and offline) of Tony Little include the following: (All which have deeper advertising dollars than Cheeks Sandals)
1. Skechers - much larger portion of the market
1. Similar products to offer same benefits and skechers has a wider range of products, but price is a little higher
1. Reef - much larger portion of our target market which is beach type people
2. Greater product line, well known, price is comparable to Cheeks
2. One strategy we might have over Reef is that this brand is more well known by the younger generation
1. Clarks - good share of the market size, known for its comfort and known mostly by older audience, is priced higher normally, but able to find deals
Distribution situation:facts and data on the products by channel and the changing importance of each channel (by value and bargaining power) pg 494
1. Distribution involves making Tony Little Cheeks Sandals available for purchase by diffusing it through the market. In this context, the distribution situation will take a direct channel approach. Marketers will direct the customers to Tony Little Cheeks e-commerce website and youtube channel for direct purchase.
1. They can also call , where the producer will deal directly with the customer. The value of the channel is that the company will have direct interaction with the customer, which will directly help in creating loyalty and repeat purchases. Regarding bargaining power, the customer will have reduced bargaining power as product prices will be labeled on each product. However, the company may decide to provide discounts to repeat customers to encourage more sales.
ALL References
Milestone Four
SWOT Analysis - pg 51 checklist if need help or use her example from the discussion - the matrix or boxes
STRENGTHS
· Affordability - comparable competitor shoes are more expensive than ours and from feedback and reviews, they last just as long
· Brand recognition - Tony Little is a well known fitness trainer who has made a name for himself with exercise equipments and programs - he is respected
· Very reputable lasting relationship with HSN - always appearing on there selling exercise equipment
· Quality & Comfort - customer favorite for style and comfort - great reviews about the sandal functionality and design - people who end up trying it really like it
WEAKNESSES
· Tony little targets more to the older demographic because he knows most women younger than 30 do not know of him, and he is well known to the older demographic
1. Stays on HSN which is targeting home shoppers which is usually only geared towards an older demographic
1. Limited styles - Only offers same type of styles of sandals and bandals - he could add more colors or options for younger women
1. Self competition - He wants to sell more Sandals from his websites yet he sells them online at Amazon and other places as well at the same time
1. There seem to be inventory or stock issues when it comes to larger sizes so they need to start tracking which ones and make sure they are available or are marked “out of stock”
1. -Seasonality - this is definitely a seasonal product even down here in FL. This is the trend for the last year for the terms “sandals” and you can see it had a pretty large spike in the past few months and is declining currently
https://trends.google.com/trends/explore?cat=44&geo=US&q=sandals
OPPORTUNITIES
The company’s opportunities are based on the overall market size found in the online market (Richter, 2017).
· More social media awareness - cater to a niche of individuals and again a younger demographic could be reached via this digital platform which could help increase engagement and market share
· Feedback and customer reviews - getting more social media presence, The products can be viewed and commented on with little upfront costs. Additionally, Cheeks can get to know their customer base and receive feedback on their sandals in an instant.
· Larger customer base & reach - Since there are now more people living at a longer age and trying to live an active lifestyle, these products have a larger customer base (NEED TO CITE THIS)
· Target in on that home based shopping market while targeting that online marketing with free shipping and TV offers for home delivery based services plus back every sale with a easy return policy and customer care follow up
· THREATS -
· The threats that the company faces comes from the competitors and new entrants within the market. They apply similar marketing techniques to outshine them (Richter, 2017).
3. There is a lot of competition from well established brands. Enticing people to try a new product can be challenging.
1. Even though COVID is getting better, many of the older demographics face more threat of illness so they are going out less
1. Our product is more seasonal so when the weather gets cold, we go from targeting the whole nation to half the nation
1. There is very little barrier to entry and a lot of similar products offer the same features at similar prices
· Results of the SWOT analysis - Issues to be addressed:
· Product line - Unless he branches out into a different product such as boots, he needs to only focus on the southern areas during the winter months and pull back on his product line to only focus on the best sellers to avoid unnecessary costs
· Demographic Targeting - He needs to strategically move off of HSN and target individuals that are more social media focused
· Get functionality of websites up to date so reviews can be addressed, inventory can be updated on a real time basis and all the options can be made available through online shopping
· Strategize on the self competition situation - Tony wants to control his own website, but also wants to sell his Cheeks Sandals which is a part of another website - Google frowns on promoting the same thing on 2 different websites - trying to scheme the system they say so he should put online efforts to one website
5. https://www.cheeksforlife.com/ -
5. https://www.facebook.com/CheeksFootwear/
· Need To Address - "It would be helpful if you had some idea of the financial situation of the company for your SWOT."
· Financial situation -
https://www.wealthypersons.com/tony-little-net-worth-2020-2021/
Milestone Five -
Marketing Strategies
As our market strategy consists of the STP approach of segmentation, targeting and positioning. We have been able to identify our key target audiences on a broader as well as a more narrow scale. We can use our STP process to further implement our strategies following the marketing mix to create the product or brand positioning that appeals most to our target consumer. (The STP Process, 2020) This overall process is our overall strategy and starting point
· Target market segments by
1. Demographics -Age & Gender -Baby boomers - retired individuals 55+ that are active and on the go. They are labeled as the “empty nests, and “american classics. They enjoy doing outdoor activities such as walking, golfing, eating out, and being an active part of the community. The product that we are promoting, Tony Little Cheeks Sandals are an ideal product for the older, outdoor, active type. Besides the actual product being comfortable, reliable and stylish for the older generation, many of the people in this age group know who Tony Little is and can resonate with his Brand. He is a local to the Greater Tampa Bay area, so having him promote his own product would be a local favorite. This group also has a lower income and the sandal has a lower price point than other comfortable beach sandals such as Reef or Nike.
1. Then there are “cosmopolitans” (Claritas, 2020) which is the smart social group who loves to make the environment better while still indulging themselves; consisting mostly of staying green, keeping it clean while still being stylish; consistent mostly of younger ages between 25-44, this is the demographic before retirement that we would want to target. This group is well established and a little on the upscale side, however the family is a mix of couples with and without kids so this is where style and comfort and overall functionality really make a difference. This group would not be so highly targeted like the first 2 groups because they are not our bread and butter considering they are so upscale that they might find these shoes less quality because they are priced less. This would be considered more of an affinity audience in our mind, but once we can get these "cool kids" on board, they will stay brand loyal.
1. Income - we will be focusing on the all the classes of income besides the upper top tiers - our product is not made for the wealthy
1. Geo location - right now only targeting the south and warmer parts of the nation - focus on beach areas and all year long warm weather
1. Purchase Behaviors- Online Shoppers & TV Shoppers - since he still heavily sells on HSN & different outlets via online such as Amazon, and both of his websites, we need to focus on customers that strictly shop on these media outlets
1. Hobbies/Lifestyle - active members who are fitness enthusiasts that go on long walks, hikes, outdoor activities, as well as beach goers, etc
1. Competitive advantage by segment -
2. Age & Gender - By focusing on women in their mid life cycle and older around retiree age we can focus on the demographics that we know would find this product most beneficial and attractive
1. Ex.
2. Income -- some of our competitors such as Reef and are more expensive and have many of the same benefits we offer so by not wasting money on the top elite and by making ourselves the “comfy affordable beach sandal” we can compete by offering the lower prices w the same attributes they offer
2. Geography
3. Local Tampa Bay Fl market - use the local Tony Little brand name as leverage to create a local vibe
3. National Scale - we can still target the nation through e-commerce and through online marketing in which we can quickly adjust the targeting to only target half the nation during the colder months
2. Purchase Behaviors - Since much of the shopping has moved to online now a days through many different platforms like social and mobile (Bedgood, 2019), we can target the online and home shoppers by their previous purchases, buying behavior and if they have interacted with Tony Little brands at all.
4. If they are brand loyal or have purchased anything else from Tony Little, we can retarget them with online advertising as well
2. Hobbies & Lifestyle - to target people that would benefit from these sandals, they need to be active, interested in outdoor activities but do not have to be huge fitness fanatics or beach goers for example
1. Positioning by segment - -- Brand positioning pg 287
3. Age & Gender - position ourselves to be the leader in casual yet comfortable and stylish sandals & flip flops for women of ages 30 and older - mostly focus on the older population that not a lot of sandal companies do unless they are orthopedic based (CITE This)
3. Income - position ourselves as the affordable sporty sandal, not cheap that it lacks quality, yet not so expensive just because it is representing the Tony Little enterprise. We will focus on the every day consumer and not the superwealthy
3. Geography -
3. National scale -position ourselves as to offer our Sandal all year round to vacationers, snow birds, and people living in warmer climates, but also to not target the northern part of the states until we launch a boot line
3. Local Scale - position ourselves to focus on the messaging of the famous Exercise guru was a local and still one today - he is a part of the community - use his celebrity name to reach the locals
3. Purchase Behaviors - Since more people are shopping online now, make it known to other shoppers that they can easily get this online as well- by using the right tracking tools we can consumers buying behavior and directly target to them
3. Hobbies & Lifestyle - focus on interests and activities of the individuals so if you want to go to the beach these are great, but if you want to go to an amusement park, these will keep you comfortable, and if you go to a party, these will be stylish. We also focus again on the older individuals that are still up and about
Major decisions about all elements of the marketing mix:
· Product strategy, - Since his Cheeks shoe line is probably considered to be more of a new product launch and in the growth stage we need to consider the main product and then additional features or extensions of the product such as warranty (Bhasin, Choradia, & Damilola, 2019)
· Extra Comfort - focusing on the gel footbed and cradle technology with the perfect arch support that provides you the added benefit of exercising when you walk
1. When you Stand you Stretch and when you Walk you Flex.(Little, 2020)
1. Style - casual and stylish with interchangeable straps on the bandals so you can have different designs and styles(Schwartz & Nocella, 1977)
1. Light weight & waterproof - they float, are lightweight and waterproof so this can be a huge benefit for the people interested in any type of water activity
1. Long-lasting - they are quality material and made with the end user in mind, who is active and on the go, so these shoes are made to withstand long wear and tear
1. Communication strategy - The communication strategy will be a mix of marketing channels due to the different segmentation, specifically the age difference. For the older demographic, or baby boomers, we want to focus on more direct advertising and the more traditional channels such as TV. With the slightly younger demographic and online shoppers, we will target using mixed modes such as online search and social media plus online shopping. We can track online shopping behavior very easily and can find what people have visited the site, purchased products previously and are interested in the overall brand. We could also do a local PR type campaign to promote Tony Little and his new footwear
1. Pricing Strategy -In business planning, the development of workable strategies is a critical milestone in achieving business success. When looking at Tony Little Cheeks Sandals' pricing strategy, it is important to mention that it looks at competitor actions, customers' ability to pay, market conditions, and input costs. When getting into the market with a new product, Tony Little Cheeks Sandals should have a penetration price of around $17 per sandal. It provides a cost leadership opportunity for the business as no other competitor offers such quality products at that price (Bhasin, 2019).
1. Distribution strategy is the approach of distributing the product to end-users (Bhasin, 2019).
· A good distribution strategy is a key to helping Tony Little Cheeks Sandals obtain more revenue and retain their customers' loyalty. Tony Little Cheeks Sandals should take a multi-approach to product distribution. For example, it should distribute the products in brick and mortar department stores as well as online e-commerce. This will ensure the product reaches its target customer with ease.
In totality, pricing and distribution strategies provide a critical pillar on which the success and revenue generation of Tony Little Cheeks Sandals is founded. As a result, it is important to ensure that customer characteristics and behaviors are understood before executing the pricing and distribution models. It provides a sure strategy of winning the trust and success of the marketing plan
Cooperation with other departments is key to reaching targeted segments that the company plans to capitalize on. The Cheeks brand is broken into more than just one category of shoe, but we are focusing on the exercise massage sandal and bandal--which is the trademark name for one type of sandal. lthough each of these product lines are different, departments within the cooperation must work harmoniously in an effort not to create brand confusion.
f. Sales. --The sales department is tasked with creating superior value in the eyes of the consumer without cannibalizing existing products. The sales department must consider the cost of getting the product to market. How can retailers get the product? HSN is a way in which Cheeks can get the product to consumers cheaper. The sales department must keep in mind that each line of shoe that Cheeks makes must hold a competitive advantage.
1. Management.--The managing department is tasked with the responsibility of recognizing customer needs and doing so in a manner that maintains profitability (Moutinho L., 200). Management at all levels must be effective and efficient. Cheeks management must balance the mission statement goals while simultaneously achieving its financial goals by growing at a sustainable rate.
1. Design/Production --The production department is tasked with assembling the materials and incorporating the technology into the products to give the different lines value. For example, the massage sandal mentions how it creates the perfect combination of style and comfort with the gel insole support. (www.cheeksforlife.com). Production must keep in mind customer value and profitability.
John Kotter states that great communicators have an appreciation for positioning. They can understand the target audience and can reach out openly and transparently (Bovaird T., 2009). The company must be able to define and know their target audience. Cooperation between departments can structure their business and hierarchy around those principles.
MILESTONE SIX Marketing Action Programs
Marketing mixes by segment – activities required to implement the marketing plan and achieve marketing objectives
Tony Little Footwear has a diverse and comprehensive market comprised of different consumer needs and wants. To apply marketing in a manner that aligns with consumer needs, it is crucial to segment the market because every segment has specific factors to consider. The four types of segments include; demographic, geographic, behavioral, and psychographic. In all the four segments, the marketing mix can help the business achieve the desired marketing goals and objectives. According to Kotler (2005), the company should do specific things under the identified segments to implement the marketing plan.
Marketing Mix by Segment
When it comes to the Tony Little Footwear line the marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.
· Pricing: Tony Little Footwear pricing is designed to be competitive to the other lifestyle shoe retailers. For instance, in picture one you can see how their sandals offer value and come in an array of color choices.
(www.tonylittle.com/cheeks/amazon, nd)
· Distribution: Tony Little Footwear has explored different options in order to get merchandise in the hands of consumers. They have an HSN store, an Amazon storefront and provide distribution options if you want their product in a particular retailer’s store. Having these options allows Tony Little Footwear to offer a varied of options to get product to their consumer which is different than the competition.
· Advertising and Promotion: Tony Little’s advertising strategy focus on targeting people by promoting a healthy and active lifestyle. The sandal offering is another way he promotes active wear to help achieve this goal. The company holds a strong online website which also doubles a community for active people. Lastly, they affix all their products with the cheeks logo which is another way to promote and advertise the brand.
· Customer Service: Customer service is built into the company’s mission. Specifically, for the cheeks brand they state how they want to “improve customer health and fitness experiences throughout everyday activities” (www.tonylittle.com/cheeks, nd). One way to support their community online is through online customer support options. Contact information is easy to find if a consumer has question. There is a link where they can ask questions and have a customer service representative contact you. Additionally, they are upfront about information on returns and replacements. They have a 30-day money back guarantee on their products should a customer is not completely satisfied. All this build’s customer confidence for the products which can lead to repeat business.
Task and Responsibilities.
The company should start by creating achievable marketing goals, objectives, and realistic timeframes and expectations. The marketing manager and other executives must develop goals and objectives, set the specific individual to attain specific goals, and the right timeframe that the goals must be attained.
Marketing Goals
To implement the marketing plan by using pricing, distribution, advertising and promotion, and customer service. Market research is key to understand the specific needs and factors comprising every segment (Viardot, 2004). We want the Tony Little brand to reach our target demographic of women 30 and older who may be interested in a brand that is stylish and caters to a healthy lifestyle. We want to offer our comfortable sandals at a reasonable price. We want to continue using existing forms of marketing using our online presence but expanding to get older women who may not be as internet savvy.
· Budget
The finance team is task with the overall budget for marketing. The finance team should ensure that the allocated budget is utilized for the intended purposes (Viardot, 2004). Additionally, the finance team is tasked with the responsibility to make sure that resources are disbursed to the right department at the right time and in the right amounts.
· Controls/Contingencies
In order to monitor and gauge success the Tony little Company will Introduce controls and contingencies. The following areas will be monitored to gauge performance: The monthly revenue, monthly expense, repeat business, and customer satisfaction.
With the marketing goals implemented, the team can track identifiers in order to help determine whether the initiative is headed towards the right direction or improvement is necessary.
Tasks and responsibilities
· Need To Address
· Financial situation - - "It would be helpful if you had some idea of the financial situation of the company for your SWOT."
· How does the price offer value? Comparing it to competition?
· What media will be used for the promotion in order to reach your target segment?
https://www.wealthypersons.com/tony-little-net-worth-2020-2021/
MILESTONE SEVEN
· BUDGET
· -Revenue: forecasted sales volumes by unit and average price
· -Expenses: cost of production, cost of physical distribution, marketing costs (for example, product development, advertising, distribution channel training and development, sales force training and payment, marketing research)
· CONTROLS AND CONTINGENCY
· -Controls: how the performance of the plan will be measured, schedule by which to monitor its progress by comparing results against objectives
· -Contingency plans in case of an adverse event (for example, delay in product launch, technical problems)
MILESTONE EIGHT
To complete your final project, each group must develop an Executive Summary and Table of Contents. The Executive Summary should include the following:
· Concise overview of the report
· Overall strategies, main conclusions, and key points of the Marketing Action Program
THE FINAL REPORT
When you complete the Marketing Plan (Final Project), upload it as a final MS Word document in which all the components of milestones are integrated in a well-defined plan.