Assignment1 for Assignment 3

Jan. 12, 2021

Bidii Enterprises Inc

Marketing Plan

Background Information

Bidii Enterprises Inc. is located in the state of New York, Albany. This company was formed with the intention of production and distribution of organic skin care products including massage and spa services. The company’s name, Bidii Enterprises, is rooted in the deeper meaning behind the African phrase, i.e., diligence. This will form the company’s mission statement. The target market for the company is composed mainly of middle-aged clients who are motivated by holistic skin care and organizations accustomed with environment friendly activities. The most profitable products are the organic natural soaps and shampoos. Nonetheless, the company also offers other products such as organic ointments, juice beauty, botanicals, matrescence biochar.

The company began as an alternative to the many synthetic products flooding the skin care market. The main challenges facing the company are those of elevated demand which exceeds the supply of the available products and scheduling, all due to the fact that Bidii Enterprises deals with bespoke seasonal green products. The greatest outputs maintained in the months of June, July, August and September. The company is considered to be a B2B marketer.

Contained in this marketing plan is an evaluation of the market environment of the involved company, which will mainly entail an environmental analysis. In addition, there is a SWOT analysis which is indicative of the strengths, weaknesses, opportunities and threats to Bidii Enterprises Inc. both internally and externally. The plan mainly focuses on Bidii Enterprises’ growth strategy, more so on the advancement into dealing with new products and/or services which are meant to bridge certain identified market niches.

Mission Statement:

To diligently provide personal customers’ and business organizations with quality state-of-the-art products and services that don’t compromise health and sustainability in such a way that the loyal customers could not imagine going back to the old way.

Goals

This section accurately outlines the future-oriented objectives that Bidii Enterprises seeks to attain so as to fulfill the mission of the company. The long-term goals are confined within a 5-year time period.

Short Term Goals

Bidii Enterprises Inc. will be devoted to attaining the following short-term goals;

· To increase the number of wholesale sales records within the company to 44 billion U.S. dollars based on the foretasted global market value for natural and organic skin products.

· To elevate the profit margin of the retail sector by 5% .

· To obtain refined raw materials in cost-effective means so as to produce goods and offer services at an affordable price.

· To increase the website visits by 10% per month.

Long Term Goals

Bidii Enterprises Inc. will be devoted to attaining the following long-term goals;

· Customer retention with an annual growth rate increase of 15% compared to the existing competition. It is anticipated that the organic products will experience a compound annual growth rate (CAGR) increment of 10% between 2016 and 2025 (Ridder, 1).

· Delivery of quality products and services that meet customer expectations. Properties accrued to slogans such as sun protection, multifunctional skin care and anti-aging should inform the products quality assurance.

· Increase in market share with consistent personalization of the products as renown and valuable brand products. An analytical report by Lucintel, the industry has a market share of $135 billion in 2021 (Solomon, 2).

· Diversification and differentiation of the products and services with those available in the market. The skin care industry has a broad array of sectors including, body care, facial care, fragrances, hand care, depilatories, make-up and make-up removal products etc.

· Increase production rate by 20% to meet the annually growing demand. According to Net Domestic Product (NDP) Group, the cosmetics industry has an annual growth rate of 8%.

Environmental analysis:

Founded as a commercial distributorship company, Bidii Enterprises, Inc., seeks to evolve into a brand of high-quality, bespoke products and related B2B (business-to-business) area of expertise items. In order for the company to make a commitment to offering quality products and services it will have to effectively effectively come up with a strategy that is informed by an articulate analysis of the business environment. With this in mind, an accurate evaluation of the market environment is necessary considering the competitive, economic, political, legal, technological, and sociocultural forces.

Competitive forces; considering the specialty in this business, competition in this organic making products, especially the soap making sector, is very not as strong on a local and regional base but requires vigilance and positional aggressiveness for the business to thrive nationally and globally. One of the main competitors to the organic soap products is Back Porch Soap Company. On a national scale, high sales figures for the industry are testing to attain due to the trifling business that is conducted. Nonetheless, the competition is weak in the software-based segment. At present, organic products hold an overriding market share of approximately 95 percent; however, the quest for green products is rapidly on the rise, therefore, additional competition is expected to enter the market.

Economic forces; this economic segment will focus on the economic conditions within which the company carries out its operations (Massie, 3). It is crucial to note that many companies have trimmed down on their general promotion budgets due to the urgent need to reduce expenses. This has led to most of the companies in the U.S. to divert their budgets to specialty publicizing/broadcasting and sales promotion. The upsurge in unemployment rate across the nation could have a huge blow in the gross domestic product (GDP) of the nation which will in turn reduce the market value of goods and services within the country. The discretionary income is also expected to decline which will have a direct impact on some of the nonessential services offered by the company, such as massage spa in the retail arm of the company.

Political forces; the political environment is the most unpredictable factor that will affect this company indirectly. This is because political systems vary and they end up affecting the economy which in turn affects business (John, 4). Corruption is a major barrier to economic development and it is the cause of some firms doing better than others by offering bribes to officials in the government. Thus, the success of these companies is not rooted on the value they offer to customers but on the political power fostered on corruption. The political stability of the nation also has an impact on the company, more so, due to the taxation policies that could be changed thus affecting the tax rates and incentives.

Nonetheless, some of the factors such as environmental law, health and safety law, antitrust law etc., have no influence on Bidii Enterprises Inc.

Legal forces; it is vital to consider that the legal requirements regarding business operation is directly related with policies associated with the government on economic factors. It is crucial to meticulously analyze and be aware of areas such as environmental law, company law, investment regulation and other decisive factors with regards to the organic industry.

Technological forces; this segment has its focus on the improvements in products and services that are provided by the technological world. In order for Bidii Enterprises company to have a competitive edge in the market, globalization is very elemental in this goal. As a result, technology has been considered as the unanimous vital tool attaining any form of globalization (Sameer, 5). In companies that deal with organic products, such as Bidii Enterprises, it is crucial to consider a broad array of technological issues that influence the success of the business. First off is the effectiveness that comes along with technology in the production and packaging of the products. Online shopping is also a major factor to consider based on the fact that there are many potential clients who are into the green products but are not within the local confinements of New York City. Within these online platforms, the company should have a catalogue showing the products and survives being offered by Bidii Enterprises Inc. It will also be essential to provide consumers with the option of downloading the instructions of use, benefits and also compare the specifications of different products under the same category. Technological forces will have a direct effect on the cost of personnel required for marketing and publicizing. Technology also offers the opportunity to exploit the gap of women needing the products to be delivered at their doorsteps using the online platforms. Indeed, technology enables e-commerce. Therefore, it is imperative that the company has to concentrate on cost effectiveness by utilizing the available technology.

Sociocultural forces: this section necessitates the macro-scale factors within societies and cultures such as identity, attitudes, ethnic orientations and values etc. It is important to note that the attitude of the general public has shifted towards organic products due to the health and ethical implications surrounding these products (Claude, 6). To add on, the residents of New York and also other localities worldwide are progressively in need of being identified with organic/green products due to the benefits behind the state-of-the-art initiative towards going ‘green’ considering the climatic implications. The main sociocultural drive existing in today’s society is that organic products are healthy to the society and also better for the environment.

Additionally, the female gender has predominantly been influenced by these products and they identify with them as brand loyalties to organic products. This is mainly with the middle-aged category who have consequently influenced the older women. The main focus of Bidii Enterprises would be to win the attention of these women who later on spread the chain of loyal clients to the company.

SWOT Analysis

Strengths

· The existing focus on healthy organic products strategy in Bidii Enterprises Inc. has resulted into a cutting-edge in the market, quality assurance, and product customization (Yeon, 7). This will enhance the company to be unique in its inclusivity and consistency.

· Most of the products dealt with are environmentally friendly and do not bring about global warming, which is a major environmental threat in the present-day (Meghan, 8).

· Effective relaying of necessary information and feedback in the available communication channels. Products are also taken through thorough testing for at least 6 months before being released into the market for safety purposes.

· There exists a certain level of expertise and devotion to labor within the workforce due to the established camaraderie that exists in the team.

· A satisfied customer base based on the high level of loyal customer reorders.

Weaknesses

· Some products are not compatible with all skin-types.

· There is a seasonal nature of the organic raw materials which manufacture the associated products that generates bottlenecks in the flow of productivity. Delayed cash flow, unwarranted stress and strain on the workforce are also a result of this seasonal variance.

· There exists a highly centralized management system that easily impedes the lack of support structures and sharing of knowledge and ideas when it comes to decision-making and planning.

· Some raw materials are not cost-effective.

· In spite of the small number of employees fostering a camaraderie, it also encumbers new-business development.

· There is little room for physical expansion and there are limited distribution channels.

Opportunities

· Expansion of wholesale and retail outlets across the different states.

· Plans with the suppliers of raw materials should be put into consideration in case of any unforeseen events that might hinder production.

· Specialty advertising to lengthen the products’ life cycles.

· Utilizing the African brand name of the company to bring about intercultural unity and diversification of the products in line with the different cultures.

Threats

· Fall out by raw materials suppliers due to single sourcing from a specified supplier thus making the company susceptible to massive losses.

· Competition from more previously established skin care products that are also organic in nature. There is also the potential of rivalry between upcoming companies that seek to exploit the same market niche.

· Theft of trade secrets leading to decline in demand of the product.

Complementing of Opportunities to Strengths and Converting Weaknesses

· Bidii Enterprises should take into consideration doing thorough surveys and follow ups of their customers to gain a more informed understanding of the clients’ varying needs and how to strategically advertise online.

· Utilization of the African brand to set apart the company (Iwuoha , 9). In addition, the available employee expertise should also be utilized especially in the technological department so as to attain globalization.

· The company should be deliberate on future growth strategies and consider possible amenities in different geographical locations should be reconnoitered.

· The management structure ought to be modified into a more decentralized organization so as to empower every member of staff to contribute to the decision-making process. This will enable the company to make great strides in the growth curve.

Needs Analysis

The company can conduct a needs-based assessment of the specific stakeholders using the following techniques; questionnaires and key informant interviews for individuals or delphi and nominal group techniques for a group of people (James, 10). This process will be very crucial to Bidii Enterprises in the planning and implementation of certain programs. It is evident that the clients are the most important stakeholders to Bidii Enterprises, this should end up at the top right quadrant “Manage Closely” of the need’s assessment. Consequently, every decision and necessary action taken should always be geared towards customer retention and close management since they are the top most priority. On the other hand, stakeholders of low interest and influence fall in the bottom-left, “monitor (minimum effort)” quadrant. There are no such stakeholders in the company. As for the stakeholders of high influence but low interest, they land in the top-left quadrant “keep satisfied” and they are the suppliers to the company. On the other hand, those of high interest but low influence fall in the bottom-right “keep informed” quadrant are the employees. It is very essential for the company to shift these two needs and not be influenced by their suppliers but be its own source of raw materials in the near future.

Sources