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A Marketing Plan 11

Running Head: A Marketing Plan

A Marketing Plan

Executive Summary

The marketing plan of an organization is an extensive strategy in order to fulfill the desired goals and objectives such as increasing business growth in the form of profitability and increasing market share on the regular basis. In this concern, the company that is selected for the marketing plan is Bissell Inc that is also known as Bissell Homecare (Luther, 2011). It is US based, privately owned corporation that manufacture vacuum cleaner and floor care product. The Bissell Inc is a leading corporation in North America in the floor care products in terms of sales that contain 20% market share.

The company has almost 2500 employees in the USA with the total revenue more than $800 million. Further, the company is a market leader in the United States, but it is facing very tough challenges from other competitors such as Whirlpool Corporation, AB Electrolux, and Rug Doctor, Inc at the global level (Boyd, 2009). The company basically sales its products worldwide under the name Bissell that is a strong point to be a competitive leader in the market.

On the other side, the strong commitment of the company towards customer with the highest quality products and service gives it more profits than the competitors in Homecare. Further, it has the most competitive prices to maintain the company efficiency and profitability of the shareholders as the returns. Moreover, the more stable financial foundation of the company helps the investors to get good returns including its employees.

Company Background

The Headquarter of the Bissell Inc is in Michigan from where it operates its worldwide business effectively and efficiently with the help of more than 2500 regular employees. The main manufacturing of BISSELL Homecare products is a full line of vacuum cleaners, steam cleaners, and sweepers, as well as deep cleaners, including cleaning chemicals for home use. The founder of the Bissell Company was Melville Bissell that established it the year 1876 starting with manufacturing carpet sweeping machine (Boyd, 2009). Presently, it is a successful company from last 60 years as the world’s number one in manufacturing and distribution of Home care products.

Environmental Analysis

The environmental analysis of the Bissell Inc in the marketing planning is more important to analyze its competitive capability and business scenarios in the market. It would be very helpful to know its strategies for success in the market (Bissell, 2014). Therefore, the environmental analysis can include the following aspects to increase better understanding about the company.

Competitive Forces: The main competitors of the company are Whirlpool Corporation, AB Electrolux, and Rug Doctor, Inc. At the global level that also manufactures and distributes Home care products. The brand name and value of the product quality, including various ranges of the Home care products make a strong foundation to tackle the competitive environment effectively. Presently, it has the largest market share that is more than 20% as the global level.

Economical Forces: The economic conditions of the company are very strong with annual revenue $88 million worldwide. The demand of the Home care products by the consumers and other industries to clean the rooms and offices basically increases the sales of the products. This demand is based on the global level, so that consumers can purchase through company’s retail stores and online (Bissell, 2014). In this concern, the profitability and market growth have improved every year of the company.

Political Forces: Politically, there is full support of the federal government to increase the manufacturing of home care products and business across the border. Further, the trade policy of the government is also supportive and has some rebate on custom services on such type of products to increase business and employment in the USA.

Legal Forces: The Home care products of the Bissell Inc are safe, according to the US law and regulation because of the quality tests before distribution in the market to sell. Therefore, the extra regulations and other legal constraints are not available in the country to restrict business operations in the market.

Technological Forces: Technologically, the market are very challenging for the company because of the innovative products of the competitors that attract most of the customers. The competitor such as Whirlpool has involved in regular research and development process to develop innovative Home care products to increase its market share (Bissell, 2014). But, the various categories of the Home care products of Bissell reduce the effectiveness of the efforts of competitors in the market.

Socio-Cultural Forces: The environment of the socio-cultural factors such as need, wants and perceptions of the people are positive because of the part of life of the Home care products that keep their home clean. The Financial conditions of the people are also good that motivate them to purchase Home care products according to the requirement.

Target Markets

The Bissell Inc is an international corporation that manufactures vacuum cleaners, steam cleaners, and sweepers, as well as deep cleaners in the consideration of home and office care. In this concern, the primary target market of the company is rich families that have a well furnished house and want to clean easily and effectively whenever they need. The other primary target market of the customers is the professional people that want to save time and efforts to keep the home clean (Kotler & Keller, 2011). The other primary target market is corporate offices that pay more attention over neat and clean offices. On the other side, the secondary target market is basically concerned with those clients that take help from market to clean their carpets such as private homes and residential homes.

4Ps: The 4Ps is the concept of marketing in the plan that assures the effectiveness of the business success in the market. Therefore, product, place, price, and promotion are collectively known as 4P’s. In this concern, the products of the Bissell Inc are genuine that attract customers' attention and motivate to purchase for their daily use (Bissell, 2014). The unique features of the Home care products fulfill the needs and expectation of the customers. Further, the main place that the company chose to sell its product is metro cities in the USA and other countries. It sales its products through company’s own retail stores and online shopping.

Moreover, the price of the products is very challenging that inhibits the effects of the competitors pricing strategy. It basically adopts price differentiation strategy because of the quality and unique features of the products. At last, the promotional strategy of the company is also very effective because it advertise its products through television, and newspapers as well as on the Internet to reach towards maximum customers at the global level.

5Cs: The 5Cs are related to customer, company, competition, collaborators, and context in the marketing strategy of a company. Therefore, the Bissell Company in the context of customers makes essential home care products to satisfy the customers’ needs and wants with an effective price. The company has established its market because of the valuable products that required in every home to clean the carpet and floors (Kotler & Keller, 2011). The company reputation and branding are the strong points that influence more and more customers at the global level. The technology of the company is very advanced that also establish a strong foundation to satisfy the needs of the customers.

On the other side, Whirlpool, AB Electrolux, and Rug Doctor, Inc. are the main competitors that can meet the customers’ needs because of their active nature, and that can be considered as potential threats in the market. At the same time, the organized supply management system with the help of suppliers and distributors are the main collaborators that help the company to expand the business at the global level (Bissell, 2014). At last, the context of the company is favorable and there are not any limitations from the political, economical, demographical, and technological point of view.

STP: A three step approach of the company such as segmenting, targeting and positioning are very effective in the international market that help to increase sales and profits more than the competitors. The segmentation of the Bissell Inc is based on various segments of the Home care products according to the needs of the customers. Further, the target customers of the company are multiple such as rich family, professional people and clients that want to take products and services such as big organizations. Moreover, the positioning of the company is based on the use of latest technology to target the customers effectively in the competitive market.

Performance Analysis

The performance analysis of the Bissell Company is based on increasing market share, new product adoption rate, margin, and customer engagement in the market. Therefore, these can be discussed as follows:

Increasing Market Share: The increasing market share of the company on the setting benchmark of 50% to 75% per annualized plan is up to the mark. In 2011, the company’s market share growth rate was 55% that happened with the efforts of making relationships with the customers as the corporate social responsibility (Kotler & Keller, 2011). Further, the company started to provide home care products with some special features such as increasing the power of the machines and reduction of weight of the cleaning machine and other in the year 2012. This strategy gave almost 60% growth rate in market share in the year 2012 according to the annual plan. During the next year, the increasing growth rate of market share was 64% because of the introduction of innovative products such as Deep Cleaners and Hard Floor Cleaners Formulas.

New Product Adoption Rate: The Company is number 1 in terms of sales and earnings in the USA and in other countries. This became possible due to brand value and quality of the products. In this concern, the new product adoption rate in 2011 was almost 60% and in 2012, it was 66% because of the pricing strategy. In 2013, the new product adoption rate by the customers was 68% due to expansion of the business in new places.

Margin: The profit margin of the company in 2011 annualized plan was 52.6% because of the more expenses in opening new retail stores. But, it was increased in 2012 by 61% because of the already established retail stores in the market. In 2013, the profit margin increased to 72% because of the introduction of new innovative home care products.

Customer Engagement: The customer engagement in purchasing and inquiring the home care products of Bissell Inc was also very impressive. In 2011, it was more than 65% that increased in 2012 to 70%. Further, the customer engagement in 2013 was increased to 74% because of the promotional activity of the innovative home care products that motivate most of the new customers to come in the stores and online to purchase it.

Quantitative Marketing Objectives

· To increase the efficiency of the products in order to increase needs of the customers to purchase our products and take part in the increment of the market share of 25% till 2016.

· To develop new and advanced home care product than the competitors to provide more benefits to the customers in order to increase new product adoption rate in the market than the competitors.

· To improve the customer retention and satisfaction through the desired product development to increase sales and profits more than the competitors every year.

· To increase the activity of the company towards making friendly relationship with the customers through social media in order to create interest in customers to know about home care products of the company.

Qualitative Marketing Objectives

· To improve the image of the home care products in terms of quality, and competitive price to maintain increasing market share for a long-time.

· To increase the position of the company through implementation of Research and Development in order to create ne specific product and increase its adoption rate by the customers.

· To aware more and more customers about the products and its importance in the life of the customers to increase sales and profit margins.

· To change the attitude of the customers to give the value of the home care products and increase the customer engagement in purchasing the company’s products.

SWOT Analysis

The SWOT analysis of the product can be discussed as follows.

Strengths:

· Quality and durability of the homecare products

· Brand values and largest market share.

· Largest customer base than the competitors.

· Innovative technology in manufacturing of the homecare products.

Weaknesses:

· Less retail stores in other countries.

· Depends on online selling in other countries apart from the USA market.

· Maximum target customers are only rich people for the products.

· Higher price than the competitors of some valuable product.

Opportunities:

· Opportunities to expand the business in fewer developing countries to capture the market.

· Huge customer bases at the global level to sell the products.

· Increasing demand of the home care products every year (Griffin, 2011).

· Open market to expand the business through establishing manufacturing plant.

Threats:

· Potential Competitors such as Whirlpool and others.

· Needs and preferences change of the customers.

· Huge investment in marketing by the competitors to attract the customers.

· Increasing export taxes in most of the countries.

Need Analysis

Strengths:

· Satisfaction of the customers and increasing demand of the homecare products.

· Inquire about the products on the internet.

· Participation in marketing survey.

· Design of the products.

Weaknesses:

· Premium prices of the products.

· Changing attitude of the customers concerned with the products.

· Believes in traditional style of home care of most of the customers (Griffin, 2011).

· Believes in hard work rather than machine by the customers.

Opportunities:

· Believes in product development.

· Believes in technology by the customers’ o save time.

· Visiting to the retail stores for inquiry.

· Need of life of the home care products

Threats:

· Switching off the customers for other companies’ products.

· Increasing electricity bill due to regular use.

· Doubt on product quality.

· Misuses by children

References

Bissell (2014). WORLD'S NUMBER 1 BRAND IN VACUUM & DEEP CLEANING APPLIANCES. Retrieved from: http://www.bissell.co.za/

Bissell, S. (2014). Biography. Retrieved from: http://www.ucdenver.edu/academics/colleges/SPA/Research/EAWG/aboutus/About/Pages/StevenBissell.aspx

Boyd, A. (2009). MELVILLE AND ANNA BISSELL. Retrieved from: http://www.uh.edu/engines/epi2572.htm

Griffin, R. (2011). Fundamentals of Management. USA: Cengage Learning.

Kotler, P. & Keller, K. (2011). Marketing Management 14th Edition. USA: Prentice Hall.

Luther, W.M. (2011). The Marketing Plan: How to Prepare and Implement it. USA: AMACOM Div American Mgmt Assn.