MKT500/4

Running Head: PARADISE COOKWARE 1

PARADISE COOKWARE 2

Assignment #3

Part C: Marketing Plan/ Paradise Cookware

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MKT 500, Online

11/29/2014

Paradise Cookware’s branding, pricing, and distribution strategy.

Branding

Paradise Cookware’s branding is quite unique compared to the other company’s brand. The brand was created strategically to separate ourselves from every other company in the market. The words “paradise Cookware “are written in very colorful lettering. Each letter is enhanced by a palm tree. On the background of the letters are smiling chefs. This branding is meant to bring out the user-friendly nature of this company, whose motto is to be very attractive, safe, user friendly, and the best cookware in the marketplace. Definitely this branding has made Paradise Cookware unique from the rest of the cookware companies (Nicholas, 2004).

Pricing

Paradise Cookware’s products are priced at 5% lower compared to the competition, with the exception of personalized orders. The customers of Paradise Cookware not only enjoy excellent quality products, they also enjoy lower prices compared to the competition. The average whole sale prices for the cookware are usually lower compared to the retail prices. The price difference of the wholesale and retail is about 20%. The customers buying retail still enjoy the combination of quality and price savings, especially when they buy many products because of the discounts they get. Paradise Cookware uses a multiplier of 3.0 on the variable cost of every item in order to come up with the retail price. When the company prepares a quotation or a bid, there will be a total retail price for all items. Paradise Cookware writes its quotation for the clients depending on

the discounts they have received. This means prices quoted on the bids can vary depending on the discounts received.

Distribution Strategy

Paradise Cookware basically deals with designing and producing cookware. Their target market is North American, considering the Company is situated in USA and Canada and the product is designed with the culture in mind. However, we do plan on expanding, especially with on line sales. The company’s products are distributed all over the world. We manufacture roasting pans, fry pans, sauce pans, stock pots, Copper core pan sets, and glass pan lids. We have clients beyond just individual customers; we also cater to corporate clients. As mentioned, we have online markets where people buy online and have the products delivered to their door. The company has sales people in all their branches all over the US & Canada. The number of salespeople depends on size of the stores. On average the number of sale people in every stores vary between 7 -10 (Shane, 2007).

Company’s major competitors as inter- or intra-competitors.

Paradise Cookware has one major competitor, Cookware Moms’ Company. This company has for decades been manufacturing elegant and sophisticated kitchenware. Their products are also very easy to use even for a first timer compared to Paradise cookware. The Company has also been manufacturing products that are nonstick, slick and durable. This means that the products of Cookware Moms can be used to cook absolutely everything (IBIS World 2013).

Cookware Moms’ Company major strengths and weaknesses

Strengths

· They have a wide segment market

· They have communications related to their product

· They offer great discounts to their clients

· Their prices are fair and relatively low.

Weaknesses

· They lack products that can be used virtually anywhere

· They are too much into retail than in corporate marketing

· They have relatively low warranties for their products

Even though this is our main competitor, there are many. The difference is, they are the closest thing you can buy in comparison to Paradise Cookware.

Develop the differentiation strategy in relation to the closest competitor.

In relation to Cookware Moms Company which is the greatest competitor of Paradise Cookware, ‘Price Leader’ will be the best differentiation strategy to use. Paradise Cookware will have to reduce its prices compared to Cookware Moms. This is because both companies are producing superior quality products. Therefore in order to have better sales, Paradise Cookware will have to reduce its selling prices. Paradise Company will still require checking on its margins of profit to make sure it does not run on a loss. The company will also have to be closely checking the prices of Cookware Moms to make sure we still do not sell our products at too low a price that will make the customers question the quality of our products (Shane, 2008).

Paradise Cookware choice on leadership and following

Paradise Cookware is a leader. The company has two way communications on risk that is also open to stakeholders that are external. The company offers timely and transparent communication regarding values and decisions of the company. The company’s board committee gives advice on risk management and finally Paradise Cookware is a leader because it has set a framework of company management that is followed by all the stakeholders. In the market the company has been producing high quality products and in many occasion we have ventured in production of new products.

Macro environmental issues for the Company’s marketing strategy

Social responsibility: With changing times, people love more prestigious items and lifestyle; this has positively affected Paradise Cookware because it is known for producing not only good quality products, but also products that are considered prestigious.

Technology: technology has affected this company both positively and negatively. Positively, because the company is able to advertise their products and have been able to develop differentiation in our products. Negatively because there is a swamp of products all over the internet that are not necessarily of good quality but customers prefer them because of their low prices.

Economical factors: Poor distribution of income among the target customers has majorly affected the company negatively (Sherwood, 2002). High unemployment always has an effect when people have to choose between quality, wants and needs. Our product is not something you have to have, but something you would like to have.

Discuss the marketing research tools that you used in your marketing strategy.

Paradise Cookware has in many cases used two types of market research, the company has used surveys to know their customers ideas and opinions regarding their products. These surveys are majorly distributed through online and email services. The responds do not necessary give their identities even though their opinions are really valued. Most of the questions they use are short answered instead of just answering yes or no. The respondents are always given company coupons as incentives to motivate them.

Secondly, the company uses social Media and Blogs as their research tools. Through the website, the clients are able to freely air their feelings about the products of the company. Social Media has been effective mostly because customers respond almost immediately to all the posts they receive from the company. This service has really helped the company in knowing exactly how the customers feel about their products and prices.

Implementation Strategy

 

January, 2015 - Interview choose –Sales Manager and Human Resource Manager

April, 2015 - Interview reps and choose; ad words evaluation; Webinar - C.E.O,

Operations Manager

May, 2015 - Trade Show; Evaluate ad words - Sales Manager; Production Department

July, 2015 - Evaluate ad words - - Sales Manager and Human Resource Manager;

Marketing Department

Five year expansion plan

Year              future Profitability               Market Share

 

Current                    7.0%                                         55.50%

 

1                              7.27%                                        67.75%

 

2                               9.08%                                        70.64%

 

3                               9.98%                                        73.00%

 

4                               10.98%                                       68.68%

5                               13.08%                                       70.26%

Two Social Media’s we would use: I would use Facebook and U Tube. I would use Facebook because it has very many followers who by viewing the strategy will be able to contribute their views and may be help the company do some adjustment. I will also use U tube because the clients will be able to view live interviews and demonstrations of the strategy.

Two performance standard methods: I will use a tracking method to ensure all deliveries are made on time and secondly I will check for quality. I will ensure all products are of the quality that is expected before they enter to the market.

Two monitoring methods: I will check on number of discounts given and at what percentage, as well as on the profits for each product quarterly.

Two financial controls: I will check on the total costs of expenses as well as total sales made. Secondly, I will check how many potential customers the company is expecting in the coming year.

Overall Company Potential

The company has performed well in the past five years, due to the well set strategies. The company is hoping to make more profits in the coming years especially because of the marketing strategies they have put in place and the differentiation we have been able to achieve.

Integrated marketing communications

The internet is a great tool for integrated marketing communications. Through the emails and social media, customers can receive information from the company and give feedback and vice versa. However, considering our products differentiation, seeing is believing. So TV, and in person demonstrations are an iatrical part of the product success when it comes to marketing communications (Iacobucci, D. 2014).

References

Iacobucci, D. (2014). MM4, Marketing Management. Mason, OH: Cengage Learning

IBIS World (2013). Kitchen cookware stores in the U.S.: market research report. Retrieved from: http://www.ibisworld.com/industry/kitchen-cookware-stores.html

Kahn, K. (2011). Product planning essentials. NY: M.E.Sharpe

Nicholas, J. (2004). Project management for business and engineering: principles and practice. Oxford: Elsevier

Shane, S. (2008). Entrepreneurship: a process perspective. Mason, OH: Cengage Learning

Sherwood, P. (2002). How to prepare a quality feasibility study: a step-by-step guide. NY: Prentice Hall