Marketing Plan (20%)
Due Mar 27th 10PM
Imagine your team is a group of marketing professionals working for a company (existing or in startup mode) with a new “product idea” involving significant modifications to an existing product or developing an entirely new product. Your team has been tasked by your boss, the company’s Marketing Director, to develop a plan for taking the company’s new product idea to market.
Usage and how to access market and industry databases at Telfer/ U Ottawa will be reviewed during the librarian session (Week 6- Feb 10th for Section N and Feb 11th for Section R). Do not miss it. On the same date, the industry will be assigned to each team.
The aim here is to identify and develop an in-depth understanding of your consumer and the market within which you will sell your product. Remember that the appendix is a great place to place supporting material (graphs, charts). In this section we are building the actual marketing plan for the new product. Remember that the appendix is a great place to place supporting material. For example, many papers will include an image of the product (dimension/packaging), advertisements, numerical calculations, detailed implementation timeline etc. in the appendix Ch.02A.
ASPECTS TO BE EVALUATED (Suggested)Length
SECTION 1: BRIEF NEW PRODUCT INTRODUCTION 1-1.5 pages
Briefly introduce your company. Introduce your new product with a very brief – but clear description of what you will be offering to the Canadian market and what makes your product different (product differentiation). Remember, your new product should be a business-to-consumer product. Include a brief description of the consumer want that your product fills. How does the new product link to the strategic role of the company? Set clear and strategic objectives and state how they link to the company’s mission.
SECTION 2: CONSUMER PROFILE 1– 1.5 pages
Consumer Segmentation & Targeting
Here we need to show our understanding of our customer. Who is our customer? Why do they need our product? (compared to section 1, the descriptions should be much more detailed). Perform an accurate market segmentation, select target market(s) and define positioning strategy including compelling and differentiated customer value proposition(s). Be clear about what makes your product valuable to your customers and different from what your competitors offer.
· Extensive and accurate application of marketing segmentation and consumer behaviour characteristics. (Remember to use proper segmentation terminology)
· Appropriate selection & justification of chosen target market.
SECTION 3: MARKET PROFILE 2 - 3 pages
Here we can demonstrate why this new product idea is a good idea. What are market conditions like? Who are our competitors? Conduct in-depth situation analyses including a SWOT analysis and marketing environment analyses at both micro and macro levels. Your situation analyses must be based on:
· Industry/sector research identifying size, structure, growth, trends, barriers to entry, etc.
· Customer research identifying who your customers are in terms of their characteristics and behavior as well as identifying their need(s), want(s) and desire(s) that your product will satisfy
· Competitor research identifying who your competitors (direct and indirect) are as well as identifying their strengths, weaknesses, relative market share, etc
· Partner research identifying who your partners are and how they can help you.
Situation / Market Analysis:
· Consumption rates/ size of the market / growth of the market/ future growth potential of the market / barriers to entry.
· Trends in the market that support why proposed new product will be successful.
· Threats in the market that might hinder why the proposed new product might not succeed.
A reminder- you may use a step down analysis (see Quant package for the example) to help you with your calculations. Also, secondary data sources are available in the library which can help you obtain relevant information to calculate the size of your market.
· Direct competitors (Manufacturers & their brands);
· Specific market shares of direct competitors;
· Presence of indirect competitors;
· Describe the competitive field. (Is the market fragmented? Or Presence of a strong market leader?)
SECTION 4: MARKETING MIX ~ 5.5 pages
Define the Marketing Mix (the 4 P’s of marketing). Include the following:
· In-depth product description (core benefit, size, colors, warranties, customer service, packaging etc.)
· Positioning including positioning map;
· Differentiation & unique selling proposition of the product;
· Branding (name, logo)
· Product Strategy (eg. Does it complete a product line?);
· Product Life Cycle (PLC) status/ issues.
· Price (Final price for consumer, Price of sale to intermediary (if any))
· Pricing strategy (Cost-based, Penetration, Skimming etc)
· Pricing adjustments (eg. Sales promotions)
· Product margins
· Distribution strategy;
· Potential channel conflicts (if appropriate).
· Where the product is available / number of outlets
· How the product is presented/displayed in the outlet.
· Communication objectives & key message of communication;
· Use of, and examples of - an appropriate promotional mix for your product. eg, advertising, public relations personal selling, sales promotion, direct marketing> Be thorough. For example, for advertising, remember to include the creative, support for your creative, and media selection (eg. Q-92 radio in Montreal during the “Drive at 5”).
SECTION 5 ~1 pages
Construct a “Financial Plan” by creating a 5-year projected Income Statement. List your revenues and costs assumptions and include break-even analyses.
· Break-even units/dollars
· Break-even market share;
· (Expected) Projected sales in units and dollars, profit (or losses!) for year 1.
SECTION 6 ~1 pages
Formulate a growth strategy including selection of 1 country for market expansion (excluding the USA).
Foreign Entry Potential:
· Selection of 1 country for market expansion- excluding the USA.
· Justify the foreign entry strategy by considering the factors that make a foreign market attractive.
SECTION 7 ~1.5 page
Construct an “Implementation Plan” including the key success factors, risk assessment, addressing regulatory considerations and defining the sequence and timeline of the key activities (e.g. when to launch the product, secure distribution, run the various advertisements, introduce a sales promotion, expand to the new market, etc.). Consider all of the important steps in your plan. Define marketing performance evaluation metrics to be tracked and measured in order to determine the success or failure.
TOTAL Max 15 pages
Assignment Parameters and Expectations:
· You will undertake secondary research (on-line resources, press articles) as you deem appropriate in developing your analyses.
· Reasonable assumptions based on your market/industry research are acceptable.
· “Marketing Plan” refers to “Developing a Marketing Plan and Marketing Strategies” and all components in each step as articulated in the text book- Ch.2A
· You can also find the relevant information using below link:
· Each team is required to submit a maximum 15-page report. The main body of the report including figures, charts, and tables, but excludes appendices and bibliography. Remember: this project is intended to be an original piece of work – while the use of footnotes and references is of critical importance, be certain not to over-use footnotes.
· Include citations and references in your report. It should be prepared using the APA guidelines for citations. Please use appendices sparingly.
· Team reports must be prepared using Times New Roman 12-point font with 1-inch margins all around and 1.5 spacing. Figures, charts and tables should be in 10-point Times Roman font. Each team will decide how they want to organize their report.
· Please note that to meet expectations, the team report must be of a high professional calibre in terms of content but also in terms of look, feel, and readability. It should be free from all grammatical, spelling, formatting, and other mechanical errors. You will lose marks if your report contains unprofessionalism such as English and mechanical errors.
· Figures and tables are meant to convey key information quickly and clearly – so make them clear, sharp, and of a size that is readable (not too big or too small); you are expected to refer the figures and tables in your contents if you included them. Use appropriate legends to clearly distinguish different lines or charts.
· Overall Report Quality: The report contains no spelling or grammatical errors; it is superbly written and professional; all respect for scholarship has been applied. It is also well presented. All guidelines for report writing followed. Citations are correctly made.
· Writing style- point form is not allowed.
Reports are to be submitted via Brightspace on the due March 27th 10PM. Late penalty is 25% for each day or part of day late. In the interests of ensuring that professors’ expectations of students concerning this assignment are given above entitled “ASPECTS TO BE EVALUATED ”. You are strongly advised to review this material before starting your project.