PPT

The analyses the General company which deals in industrial timing gadgets and consumer clocks. Founded on experience, the company provides fashionable products to its target audience who are mostly youth aged 18 to 34 years. Due to its massive innovation, the organization has enjoyed huge growth with 1995 profits totaling 30 million dollars and representing 7.5% of all sales. However, research shows that it has not enjoyed sales growth since there has been a reduction of 5% a year and the sales are also predictable. It hopes to improve this growth rate by introducing the Spree watch and by focusing on its strengths and market opportunities. The paper addresses the situational analysis, objectives, marketing strategies, action plan, market segments, SWOT Analysis, marketing mix, and the implementation plan.

Final Marketing Plan

The organization of my choice is General. The core business of General is industrial timing gadgets and consumer clocks. The organization was founded on the experience of producing high-quality timing movements and plastic casings. This plan is based on giving consumers high quality and innovative watches. It will be provided in multiple fashions for men and women. Both the casing and movement has other possible applications. The 1995 profits of 30 million dollars representing 7.5% of total sales. However, sales growth has reduced to the recent level of 5% per year and it is currently predictable. The organization hopes to improve its growth rate through the Spree watch. According to the market analysis of the watch market and our strengths, General will then bring in the idea of Spree watch.

It is noted that buyers of branded style watches are aged between 18 and 34 years. These are generally young people who are easily influenced by fashion and its evolution. This team buys more watches per capita compared to the older and thus the main market segment for the organization. They are also impulse buyers hence they need strong point-purchase support. Also, 70% of the market is focused on firm competition from Swatch.

The company is mainly concerned with the production of unique and cost-effective designs that will enable it to establish a 3% market share during the first year. Also, the Spree watch plan is part of its priorities.

The general organization will bring a new product, the inventive Spree watch through the usage of penetration pricing, extensive advertising, and extended supply. These will enable it to increase its revenue and growth rate.

The product Spree watch has a firm product benefit when compared to the recent market provisions. To attain the objectives of the plan, the organization will give a unique watch in a variety of designs at a proposed retail price of $45. The current supply is above $755 but at this period, it will have extended the distribution to entry the jewelry store retail medium. We will increase our sales force through individuals and include a sales trainer to sustain the market plan. Marketing of one million dollars will focus on the unique design of the watch and is subjective to print and point buy display. This kind of advertisement is essential for it creates consumer awareness during the starting period and thus, this will help in achieving the competitive.

In this case, we will introduce between 30 to 40 various designs in the first year. Some of these will have metal case imitating both traditional and current metal design. These designs will target people who are 25 years and above. There will also be a series of designs including licensed and infrequent shapes for the market segment aged below 24 years. It is noted that Swatch does not have exclusive licensing for Disney and Warner. Through using these and others we have many items and features and character designs within our line. These products within our line will be of different shapes as per the preferences and tastes of various customers. When it comes to the young age, our technology enables the design of watches in the shapes of cartoon character faces and thus we will be able to tap into these markets.

The price at which the product will be sold will have quality and feature benefits, motivating the usage of the price which is slightly exceeding Swatch. This strategy attached with our efficient production approach helps in attaining our moderately high market share for the incoming product access. During the first year, the product will be introduced to the Northeast although it will be sold to the country market.

The general company at the moment attributes items via medium accounting for 75% of watches sold. Branded fashion sales are growing faster compared to the recent item lines. Our innovative items, item design experience, strong manufacturing experience, and experience in distributing consumer clocks give a chance for entry and growth in this market.

The strengths, in this case, entail innovative production approaches that give numerous opportunities for new designs and experience in supply channels for timepieces. When it comes to weaknesses, the organization lacks skill in terms of distribution to jewelry stores and marketing fashion products. Chances or opportunities entail markets growing at a fast rate compared to the recent sales and consumer’s requirement for fashion goods creates a demand for inventive products. On the other hand, threats include strong competition with concentrated market shares and the possibility of new market entries.

In conclusion, the market plan will be based on Spree watches. The main targeted group will be people of age between 18 and 34 years of age. The main reason for coming up with this idea is because the target audience has a high buying power per capita compared to the old people and thus presents a huge business opportunity for the organization. Various designs of the spree watches will be introduced in the market so that the organization can increase its revenue. The price of the Spree watches will be a quality and feature benefit further motivating the usage of the price strategy.

1. The main objective for the organization in the current calendar year is to increase its revenues by selling more watches to its target audience.

2. It also hopes to become the leading producers of watches during the year 2020-2030 by tapping into new opportunities and taking advantage of the dynamic needs of the target audience.

3. The organization seeks to increase its market share from 16% to 20% in the year 2021 with the help of an increase of 20 percent in the advertising budget.

To access the company, I would research its position in the market. Understanding the position of a company is crucial when it comes to developing strategies that would be able to transform the company and increase its profitability in several key areas. For instance, understanding the position of the company would allow me to know the place that the company occupies when it comes to the minds of the consumers and how they can distinguish its products from that of its competitors. Therefore, such a strategy would be crucial in developing different strategies that would allow the company to improve its position in the market. Therefore, as a result of such research, the company would develop a strong position that would make it very difficult for the company to be repositioned in the market.

Moreover, I would research the challenges facing the company. As a company progresses, it tends to come across different challenges that affect its productivity and competitive edge in the market. This is an issue that can be seen with the company general motors, as it announced to leave five Northern American factories and relies on over ten thousand jobs, which resulted in discussions being held in the media (Shih, 2018). While such decisions result in negative impacts on the workers of the company and the families they support, they are often made to protect the company. Such decisions are usually arrived at due to the challenges that are affecting the company. When such issues are analyzed, objectives may be set appropriately to ensure that the company is back on track or would prevent such issues from reoccurring in the future.

Finally, I would research the opportunities available for the company. In every challenge that a company faces, there is always an opportunity for it to become better. As the company General Motors is facing challenges, it has been found that there is a problem with the demand for the mid-size and small vehicles in the market that exists in the United States and that its customers have not been flocking to the company’s hybrid Chevy Volt. Although such a challenge may negatively impact the company’s current financial status, it provides the company with the opportunity to change its tactics towards its target market (Shih, 2018). Therefore, the challenges offer the company an opportunity to increase its sales by introducing a product that the customers would be attracted to. In researching such an issue, I would also be able to identify the target market of specific types of products that different consumers of the company are attracted towards.

The market segments that I would target include people who are environmentally aware and those who prioritize quality above everything else. In today’s society, individuals are becoming more concerned about the environment. As a result of such concern from the people, companies need to ensure that they take into consideration this segment of individuals and make aims of becoming more environmentally friendly and build cares that do not harm the environment (Market Segmentation Study Guide, n.d.). Also, more hybrid and electric cars that are known to have a little impact on the environment are becoming more common. Therefore, this would require the company to target such consumers and ensure they are creating more environmentally friendly vehicles to target such customers and not to be left out when more individuals opt for vehicles that have a little impact on the environment. This would result in the company being able to increase its revenue.

Additionally, the company being well known can also market its vehicles to the ‘I have made it segment’ who are always interested in the social status they can obtain in the community as a result of a particular brand. It is usually important that those individuals communicate their success in business or careers using an expensive vehicle (Market Segmentation Study Guide, n.d.). Such individuals would love cars of the companies that would allow them to receive the benefit of being recognized that the features of the vehicles. Along with this group, the company should also strive to attract consumers who would spend more to purchase vehicles as a result of their quality. This is a group in which quality matters towards them, and there would be looking for advanced features in vehicles as well as quality finishes in their vehicles. However, the group is different from the I have made it segment as they are not interested in the symbol of the brand and the status that they would obtain from owning a specific vehicle; however, the products must meet the quality the desire. All the different segments would be catered for through research and proper advertising.

General Motors company is based in America and is multinational. The company deals with manufacturing, designing, marketing, and distributing vehicles. The company deals in automobiles and is one of the largest companies that deals with automobile manufacturing in the world. The company was incorporated in 2009 and has since then has undergone progressive and radical marketing changes in its products. The company has had changes dealing with technology and the meltdown of the economy. The company has invested in fuel vehicles but due to the change in fuel technology, it has changed its marketing strategies and majoring in vehicles with alternative fuel. The largest market of the company is in the United States. The main marketing problem of General Motors was that it was not able to appeal to prospective customers. (Bowman & Gatignon, 2010).

The products that the company was designing and manufacturing were the (SUV)s. These vehicles were very big and consumed a lot of fuel. They were too expensive for the customer to maintain. They were also slow to adapt to the marketing policy of the company. Other competitors company like Toyota were manufacturing vehicles that did not entirely depend on gasoline. Toyota was adjusting into a green company. The problem with the General motors was in their products. Their products did not meet their customer needs. This is a marketing problem that needs to be fixed. This marketing problem has resulted in the company losing a big market share in the industry of automobiles. The marketing plan to solve this problem is to study the market and learn the trends of what products the consumers want and design vehicles that will appeal to their customers and give them a competitive advantage over other companies in the automobile industry. With the change in fuel technology, General Motors need to manufacture vehicles that are environmentally friendly and have fuel alternatives.

To solve this problem, it is recommended that the company shift its focus from the larger markets to lower markets and continue progressing. They should introduce smaller vehicles that have less fuel consumption. The vehicles should not be very expensive, they should target the middle and lower class groups. The company is facing financial difficulties, by focusing on cheap products that have high market will increase the cash influx of the company and will also reduce and ease the tension that the company is having financially. In terms of pricing, the company has been selling its products at a very price. This only focused on the upper-class market which is not wide as compared to the middle and lower class. By reducing the prices of their vehicles, they will attract more customers. Small-sized and vehicles that don’t consume a lot of fuel will appeal to potential clients.

The company can rebrand itself and promote and advertise its self as a company for the common people in the society. This will help create customer loyalty since the product that they would be producing would be adding and solving the problems of the commoner. The company is recommended to advertise mostly on radios and on the news channels to create traction for their products. With the advance in technology, social media is an effective way to advertise. This marketing plan will help the company overcome the problems that are facing. Cheaper products have a high market than expensive products. The advantage and opportunity of General Motors are that they have already established a brand name. All they need to do is to find a way to get into the market with a cheaper product that will appeal to and solve the problems of the customer. The designing and manufacturing of small and cheap vehicles will not require a lot of research and funds. They should focus on the markets which are medium vehicles that don’t consume a lot of fuel. (Blokdyk, 2017). 

Blokdyk, G. (2017). Marketing mix modeling: Amazing projects from scratch. Createspace Independent Publishing Platform.

Bowman, D., & Gatignon, H. (2010). Market response and marketing mix models: Trends and research opportunities. Now Publishers.

Buckler, G., Greco, J., Lucas, P., & Mullin, R. (2001). NINTH ANNUAL STRATEGISTS TO WATCH. Journal of Business Strategy, 22(5), 19-19.

Jargosch, R. E., & Jurich, J. (2014). General Motors Company (GM) patent landscape analysis – January 1, 1994, to December 31, 2013. IPGenix LLC.

Klaffke, P. (2003). Spree: A cultural history of shopping. arsenal pulp press.

Market Segmentation Study Guide. (n.d.). Retrieved from https://www.segmentationstudyguide.com/understanding-market-segmentation/market-segmentation-examples/market-segmentation-example-cars/

Shih, W. C. (2018, November 30). The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures. Retrieved from Harvard Business Review: https://hbr.org/2018/11/the-challenges-gm-is-facing-and-the-reasoning-behind-its-plant-closures?registration=success