Marketing Plan for an Electronic Retail Business
Table of Contents
Executive Summary. 5
The Challenge. 5
Social Factors. 6
SWOT Analysis. 7
PESTEL Analysis. 9
Economic Factors. 9
Social Factors. 10
Technological Factors. 10
Legal Factors. 10
Environmental Factors. 11
Market Segmentation. 11
Consumer Market Segmentation. 12
Geographical Location. 13
Occupation of Potential Customers. 13
Business Market Segmentation. 14
Geographical Location. 14
Business Description. 14
Operating Practices. 14
Organization Goals. 15
Goals of the Company. 15
Selected Marketing Strategy. 15
Pricing of Products. 16
Promotion of Products. 17
People in the Company. 18
Selling Process. 18
Physical Environment for Presenting the Products. 19
Startup Amount 19
Short & Long-Term Projections. 20
Short Term Project 20
Long-term Projects. 20
The marketing plan is an important management tool that enables a business to strategically position itself in its industry. The marketing plan for Generation Ex Technologies Ltd. aims at enabling the company to form robust and competitive marketing tactics that it will use in its 2017 financial year. Generation Ex Technologies Ltd. majors in the sale of consumable electronic equipment and appliances such as mobile phones, laptops, tablets, iPads, routers, cameras, and other electronic gadgets. The company is located in downtown New York where it has four outlets. To keep abreast with the changing business environment, the company has an e-commerce section which it uses to sell its products through its website. Despite its efforts to embrace technology and streamline its management, the company has been facing a lot of competition in the past two years. This marketing plan aims at forming a detailed guide of tactics that the company will use in ward off threats from competitors.
Despite efforts aimed at enabling Generation Ex Technologies Ltd. to become the leading seller of consumable electronic devices, the company has not been able to realize its dream. The following have been the main issues that have affected the company.
- Failure to understand the changes in the attitude and preferences of target customers.
- Inability to identify and predict the release of the latest electronic gadgets, which has led to the company having a lot of dead stocks.
- Constant fluctuation of prices of electronic goods due to cheap imports from China.
- The emergence of lookalike and counterfeit products, which has eroded trust among potential customers.
- Stiff competition from well-established stores and brands such as Wal-Mart and Amazon.
- A slow domestic economy, which has resulted in the inability of potential customers to buy new electronic gadgets.
There are various internal and external factors that influence the performance of Generation Ex Technologies Ltd. these factors affect both the internal and external environment of the business. For a thorough analysis of these factors, a SWOT and PESTEL analysis will be conducted (Kerin & Hartley, 2016).
Simply, social factors are the conditions that influence an individual’s personality, attitude, and lifestyle. Consequently, they play a pivotal role in determining the current and future demand for various goods by customers. The following are the social factors that impact on our customer, who are mostly young and middle-aged (16-35 years).
- Lifestyle: Love for modern and unique electronic goods
- Buying habits: A consumerism culture.
- Educational level: Highly educated and knowledgeable on how to use and operate electronic gadgets.
- Emphasis on safety: Due to their knowledge, they prefer safe and environmentally friendly equipment.
- Average disposable income: High disposable income when compared to the rest of the population.
A SWOT analysis simply refers to a comprehensive analysis of the internal and external factors that affect a business. It is classified as strength, weakness, opportunity, and threat. The SWOT analysis of Generation Ex Technologies Ltd. is as discussed below.
- Generation Ex Technologies Ltd. has a small management, which enables it to reduce bureaucracy when making various decisions.
- All employees of the company are knowledgeable in IT and electronics. Therefore, they are able to give the management informed opinions on various managerial strategies.
- The company has adopted a culture of training its human resource that has enabled it to have competent staff in both the managerial and technical aspect of the business.
- All the Generation Ex Technologies Ltd. stores are strategically positioned in areas that have a lot of human movement, which enabled them to attract a lot of customers.
- The company’s website has been able to attract international customers as well as individuals who leave in far-off regions.
- Generation Ex Technologies Ltd. does not have premises in other states. As a result, it is unable to attract a lot of sales especially among the elderly buyers who prefer brick and motor stores.
- The company does not have an established distribution channel for its electronics. Therefore, the e-commerce section of the business relies on private distributors who are expensive, a situation that limits the attractiveness of this service among online customers.
- The company’s name “Generation Ex Technologies Ltd.” appears to discriminate against the elderly and target on the young and energetic “Generation X.” This situation has led to the company having very few elderly customers.
- There has been an increase in the rate of adoption of technology among individuals of all age. This has resulted in an increase in the demand for the company’s products.
- The company’ e-commerce segment, which is spearheaded by its website, has led to an increase in the number of customers that the company serves. In particular, it has enabled the company to sell its products to international customers.
- There has been an increase in digitalization of products, which has enabled the company to increase the variety of products that it sells. In effect, the company has made more profits. For example, the company has introduced CCTV cameras that are used in homes and by businesses. It has also introduced biometrics clocking equipment used by businesses.
- Despite its long presence in the electronics business, Generation Ex Technologies Ltd. has been unable to establish measures to restrict potential competitors from establishing similar physical retail and e-commerce business in New York.
- Generation Ex Technologies Ltd. does not have adequate capital to compete evenly with major players in this business such as Wal-Mart and Amazon. Generally, these companies have a better distribution channels and a strong market presence in almost all states in the US.
A PESTEL analysis is a framework used to check how macroeconomic factors affect the overall performance of the business. Generally, macroeconomic factors are those that affect an organization’s performance but are beyond its control. To achieve this goal, the PESTEL analysis will evaluate the political, economic, social, technological, legal, and environmental factors that affect Generation Ex Technologies Ltd.
The US has a strong and stable political environment that provides a hospitable environment for businesses. Firstly, the country has strong anti-corruption laws that protect the business from unscrupulous officers who would want to be bribed in order to efficiently provide government services. The USA also has anti-monopoly laws, which ensure that businesses remain competitive. These laws have enabled Generation Ex Technologies Ltd. to participate in e-commerce although there are strong and well-established brands in this industry (Mallor, Barnes, Bowers, & Langvardt, 2012). The USA plays a pivotal role in the world economy. As a result, it has made many international agreements that enable business in the USA to participate in international trade. In particular, trade agreements have the advantage of enabling Generation Ex Technologies Ltd. to have special privileges in international trade.
As the largest economy, the USA economy has the largest middle-income earners and high-income earners who provide sufficient demand for Generation Ex Technologies Ltd. products. Unfortunately, after the 2007 financial crisis, the USA and many European economies have had a sluggish economy, which has wiped most of their resident’s purchasing power. The USA inflation and taxation rates have remained fairly stable (Miller-Nobles, Mattison, & Matsumura, 2015). Therefore, the Generation Ex Technologies Ltd. inability to perform to its required levels can mainly be attributed to economic factors in the country.
Generation Ex Technologies Ltd. attracts customers of all genders and age. Therefore, the facility is inclusive and friendly. Both the company’s retail and e-commerce business special in the sale of the best quality of electronic gadgets. This method enables it to attract most young adults since they have a consumerism culture. The use of the e-commerce section of the business is in-tune with the social changes in the USA. Currently, most young people, who make the largest percentage of our customers, prefer using e-commerce.
The USA has adopted technology in almost all spheres of its operations. Despite the high rate of embracing technology, there are still a lot of people who prefer brick and motor shops where they can test, operate, and touch the product they want to buy before making the actual purchase. The company’ retail shops and the e-commerce business will satisfy the needs of these two categories of customers. In terms of innovation, the USA has some of the best research and innovative locations in the world, such as Silicon Valley in California. With this regard, it is likely that the consumer electronics market will continue to broaden as more innovative products are produced. The adoption of innovative ways of selling using e-commerce is a threat that may affect Generation Ex Technologies Ltd, due to increased competition in this market segment.
The USA court system is independent and transparent, which enables it to execute its activities without discrimination. In addition, the government has established consumer protection laws that ensure that all the businesses provide quality products and services and products to customers. In the e-commerce sector, the government has established anti-money laundry laws and requirements for the protection of the identity of buyers. Finally, the government has established anti-monopoly laws and requirements for minimum wage rate and employment conditions for employees (Laudon & Laudon, 2016). All these regulations result in increased competition in both e-commerce and the brick and motor retail business segment of the company.
The USA government is particularly interested in how business activities affect the environment. In light of this, it has strict regulations against pollution and environmental damage. Since Generation Ex Technologies Ltd. operates as a retail business, it does not significantly pollute the environment. The government encourages businesses to use energy saving tactics in its operations such as the use of energy saving bulbs, use of water saving systems and redesigning buildings to mostly use natural light. Generation Ex Technologies Ltd. uses these measures in all its operations. Moreover, the e-commerce segment of the business ensures that the company reduces its pollution level. Since the young is particularly passionate on environmental measures, ways of minimizing pollution enable a business to remain competitive.
Market segmentation is a concept of dividing the market set up into categories of consumers and markets that have similar characteristics. When considering customers, the market can be divided according to the gender, income, age, marital status, and occupation of individuals. In business-to-business transactions, it is essential for a company to identify businesses that may be its potential customers and to segment them into their specific categories. Mainly, business-to-business markets as segmented according to the geographical location, operating practices, business description, culture, and organization goals.
The consumer market segment will be stratified based on gender, income, language, geographical location, and occupation of potential customers.
An analysis of gender of customers is essential in determining the type of electronic gadget to buy. In particular, ladies and women are sensitive to looks and color (Kreitner & Cassidy, 2012). Therefore, a proper estimation of the number of customers that the business estimates, in respect to their gender, will enable it to estimate the products that it should buy. In this case, it may have a percentage of electronics to buy with the color preferred by individuals from each gender.
The segmentation based on income is essential in identifying the type of products to supply for each group of customer. For retail shops in low-income neighborhoods, Generation Ex Technologies Ltd. will supply these businesses with lowly priced electronic goods. On the contrary, retail stores in high-income locations, such as those at the central business district will have high-end electronics. Generally, the type of electronics stored in each store will match with the needs and desires of potential customers.
The specific language of each customer will be considered in the marketing process. The company’s e-commerce retail business, which will have a wide reach into international markets will consider the language used in each foreign country. When opened in the Middle East, the website will be displayed in English. Similarly, the company’s website will be displayed in Chinese when accessed from China and Hindu when accessed from India. This method will ensure that the needs of each particular groups of potential customers are understood. The company will also train its employees on ethical language, which they will use when addressing customers.
The geographical location of each potential customers will be essential in enabling the company to determine the specific type of products to market in the region. As aforementioned, the company will consider the income levels of individuals who live near its outlets in New York. In the company’s e-commerce business, the company will use GPRS mapping and cookies to determine the location of each user who browses the company’s website. In effect, the company will be able to customize its products in order to display products that meet the specific needs of the customer. For example, if the customer is browsing from a remote region that does not have electricity connection, the company’s website would automatically market to him/ her electronic devices that store energy for long or those that use solar charging systems.
The business market segmentation is classified according to the geographical location, operating practices, business description, culture, and organization goals.
Geographical location is essential for enabling a business to strategically position its marketing team to meet the needs of various businesses. In this case, the business will want to know the number of outlets that are in a specific location and whether their current customers operate from one specific location or they are in various places.
This segmentation will categorize businesses according to the industry the industry in which they operate. Similarly, a company can categorize its operations according to the staffs they employ in each outlet or the size of the company based on the profits or revenues generated. Finally, businesses can be segmented based on their ownership, such as private, public, or subsidiary.
The business will categorize companies based on the manner that they carry out their activities. In light of this, companies will be categorized as loyal or not loyal customers. They will also be grouped as those that use franchising and those that do not use franchising.
Generation Ex Technologies Ltd. will evaluate the personality of various its business-to-business transaction companies in the decision making process. In particular, it will check if they are too analytical when making decisions. It will also check if they are socially and environmentally conscious. Finally, it will consider if these businesses are market leaders or followers in their industries.
When considering goals of these companies, there will be consideration of the growth strategies of these businesses. In particular, the company will evaluate their efforts to increase their market presence, their ability to become market innovators, and their level of engagement in research and development. In addition, Generation Ex Technologies Ltd. will consider the manner in which they value brand equity.
- To increase the market share of Generation Ex Technologies Ltd.
- To improve the brand equity of the company
- To increase the company’s profits.
The purpose of the marketing strategy is to enable a business to define its directions and goals in marketing. It will highlight how Generation Ex Technologies Ltd. will deliver its products and services in ways that will satisfy its customers. Generation Ex Technologies Ltd. will use the 7 Ps to identify ways that it will market its goods and services. The 7 Ps refers to products being offered, the price of products, position in the market, the promotion of products, people, the buying process, and the physical environment where the goods or services are presented.
Generation Ex Technologies Ltd. will sell consumable electronic goods. Due to the consumerism culture of the millennials, the company will always introduce the latest electronic products so as to ensure there us a constant demand for its products. In the sale of electronic equipment used in factories and business, such as CCTV cameras and biometric clocking cards, the company will ensure that it always has the latest designs. The use of the latest and most sophisticated gadgets will ensure that there is always a high demand for these products for the company’s products.
Generation Ex Technologies Ltd. will brand its self as a premium seller that targets the upper middle class and high-class market. The purpose of specializing in this market segment is to enable the company to make maximum sales and profits. The middle class is the highest purchasers of commodities in the US, and they love high-quality products. In addition, they have a consumerism culture that is needed in ensuring there is a constant demand for the company’s products.
Since the company will aim at positioning itself as a seller of high-end and high-quality products, it will also use modern and stylish packaging materials to match these products. In addition, the company will offer customers the opportunity to customize the products that they sell to customers. This will include selecting the color of the electronic equipment and features that they want when making an online purchase. The benefit of this feature is that customers will be able to purchase products that meet satisfy their unique needs.
The main determinant of the prices of products will be the location of the shop, the product being purchased, and the medium of purchase used. When considering the physical location of the shop, shops that are located in high-end markets will sell their products slightly more expensive than those in low-end markets. The lack of using uniform prices will be due to the differences in purchasing power of customers and also the differences in operating costs of each store. To compensate for these differences, the company will offer additional customer care service for customers in high-end markets.
Due to the differences in the features in each electronic equipment, the cost of acquiring these gadgets, and the differences in demand, the selling cost of the electronic equipment will vary. The e-commerce section of the company will sell products at slightly cheaper prices than the physical shops. Generally, this price difference will be occasioned by the differences in the operational cost of each retail business. Since e-commerce does not require a lot of infrastructural developments or human resource, it is cheaper than the physical shops. The lower price in e-commerce section than in the physical shops will encourage most customers to adopt this form of shopping.
The company will have retail stores in the upmarket and areas that have a lot of movements such as near railway and bus stations. It will also have physical stores and virtual stores. The presence of stores in upmarket areas will enable the company to sell its products at high profits to the rich individuals in this areas. The presence of the physical stores in strategic positions near railways and bus stations will enable the company to attract some travelers. This tactic will enable the company to have a constant demand for its products. The virtual segment of the company will ensure that the business’ retail segment has a global reach.
Generation Ex Technologies Ltd. will employ knowledgeable and friendly individuals to serve its customers. This strategy will ensure its customers are satisfied and will result in many repeat buyers. To achieve this goal, the company will ensure that all its employees have at least an undergraduate training in electronics or electronic related discipline. In addition, the company will regularly train its employees on customer care and business skills. This training will enable them to identify the unique needs of each customer, which will ensure that they offer the best services to customers. Generation Ex Technologies Ltd. will also have a robust human resource strategy that will ensure all its employees have continuous growth in their profession and the recruitment process is done in a competitive manner so that the company can employ highly skilled employees. In order to retain talent, the company will offer competitive salaries and allowances to its employees.
The selling process will be done in an easy yet professional manner. As such, customers will be able to identify all the steps followed when they are making an order. They will also be able to express their ideas and opinions in every step of the sale. In physical stores, the first step will involve the customer first visiting the shop. At this stage, they will be greeted by a customer care representative who will show them all the products that are available for sale. The company will then offer them an opportunity to test the products that they prefer. Once the customer is pleased with a particular item, he/she will place an order for the product. The specified item will be delivered to the customer by one of the store’s cashiers. The customer will make a payment for the product. Finally, at the request of the customer, the item will be unsealed and tested to assure him/her of its quality.
In an online purchase, the customer will visit the company’s website and select the item that he/she prefers. All the selected items will be put in the shopping basket which will have the cost of the product and the transportation cost of the items to the buyers’ premises. Once the customer is ready to complete the purchase, he/she will input his account details and a payment pin in order to initiate the payment. The payments will be automatically deducted from the customer’s bank account. The purchased item will be delivered in a sealed box to the customer’s address using DHL services within 14 days. The customer will be informed through a phone call and an email of the successful delivery of the ordered product.
The company will present its products in a safe, secure, and properly designed environment. For customers who will buy directly in the company’s stores, the specific products that they have offered will be supplied to them in the customer care section. They will be able to carefully scrutinize the purchased products. For items that have been bought online from the company’s virtual store, customers will be able to view the items at DHL offices. In addition, the company will ensure that they are delivered in a sealed box so that they are not damaged.
The startup amount will be divided into two major groups; the amount needed by physical stores and cash needed by virtual stores.
4 Stores rental prices for 1 year $250,000
Human resource $250,000
Office Maintenance $10,000
Establishment cost $10,000
Human resource $5,000
Note: Since the virtual store will sell similar products with those in the physical store, it will not need to have its own inventories.
- Establish a marketing campaign using social media
- Become the leading seller in of mobile phones and cameras in New York
- Establish a 24 hours online customer care service to serve the needs of international customers.
- To establish a franchise of Generation Ex Technologies Ltd. in the USA and Europe
- Generation Ex Technologies Ltd. to develop its own brand of consumer electronic products.
To sum up, Generation Ex Technologies Ltd. marketing plan aims at increasing the competitiveness of the company. In particular, it aims at aligning the company’s marketing efforts with its overall business objectives and strategies. To achieve this objective, it has focused on both the internal and external environmental factors that affect its performance. In light of this, this business plan gives an elaborate and clear strategy that Generation Ex Technologies Ltd. will use to increase short term and long term sales, which will influence its success.
|4 Stores rental prices for 1 year||$250,000|
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Kreitner, R., & Cassidy, C. (2012). Management (12th Edn.). New York, NY: Cengage Learning.
Laudon, K., & Laudon, J. (2016). Essentials of MIS (12th Edn.). New York, NY: Pearson.
Mallor, J, Barnes, J, Bowers, T, & Langvardt, A. (2012). Business law: The ethical, global, and e-commerce environment (15th Edn.). New York, NY: McGraw-Hill.
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