Spree watch is a private company which plans to launch new digital watches as well as designer watches. The company spree watches plans to start-up with producing and distributed watches. The marketing strategy of the company will be to serve the upscale niche markets of watch industry. The company will be planning to capitalize on its engineering in order to manufacture high quality digital and specialty watches. There are various political market places within the industry such as the youths who fantasize on high quality, stylish and comfortable watches to further enhance their looks (Abdullah et al.). It is the intension of the firm to manufacture and distribute its manufactured products to the target market segmentation which will be discussed in detail in later part of the report. It is the long term goal of the business organization to attain at least 30% market share in the market. This will help the business organization to further build its brand image in the new potential market and build its brand equity. In order to build its brand equity and brand image, the spree watches aims to build its brand image through rigorous marketing. Further, the business organization aims to attain a sustainable market share of at least 50%. It aims to manufacture and distribute luxury watches in moderately priced line to make the product easily affordable by the people. The initial products that will be offered to the customers are analog watches, digital watches, designer watches and fashionable watches. Few of the watches will be having sporting characteristics and have waterproof features, which will enable the customers to wear and use the products during heavily rainfall and during swimming. Other features include, ‘night-glow’ watches and ‘sport watches’. These types of watches will be hardy and unbreakable easily, moreover, the night glow watches will be having LED light in them which will help the customers to see the time at night time as well. The purpose of this report is to formulate a marketing plan for the new company spree watches launching watches with specialized and additional features into the market. It analyses the market situation of the organization, it identifies the target market segmentation, positioning and targeting. Further, it determines the product, place, place and promotional strategies of the product that is to be launched in the target market.
On the basis of specific characteristics and special features of the watches to be launched in the market and considering the strengths of the organization, Spree watch will be introducing its special products in the market. It has been analyzed that the buyers and customers are between the age of 18 years and 40 years. As per market research and analysis, it has been identified that these age group people are most likely to purchase watches (Ahn and Jong-Bae). Due to high level of prevailing competition in the market, it needs extensive marketing and advertising along with expanded distribution (Al Fahad, Abdullah, et al.). This will help the organization to increase its revenues and growth rate (Al Fahad, Abdullah, et al.).
Customer: There must be a better understanding of customer data and analysis. The marketing department will be relying on primary as well as secondary data. This will help the marketers to analyze the background trend (Chaffey et al.). As per market research and analysis, it has been identifies that the specialty watches and designer watches is more likely to be purchased by the youth generation. Therefore, the customers will be mainly the office goers and the youth generation that is between the age of 18 years and 40 years. This segment of customers is more likely to purchase the offered products given moderate price and discounts. However, the buying behavior of the customers will depend mainly on their psychographics and demographic factors (Festa, Giuseppe, et al.). The target customers are highly price sensitive; therefore the price of the products offered will be moderately ranged as per the specifications and characteristics of the products.
Context: Considering the technological changes and the social trends of the people, the products have been designed with special features such as night glow features and waterproof features. Different types of stylish watches will also be offered to suit the needs of different kinds of customers. Moreover, Spree Watches will be considering various legal and political situations of the market place. It will be abiding by the policies and regulations of the government (Festa, Giuseppe, et al. ).
Company: Spree Watches is a privately owned company, the long term and short terms goals of the company is to increase its profitability by increasing its market share by 30% and building its brand image. It aims to increase its customer base by offering high quality products with additional features. The marketing department of the company will be responsible for undertaking the marketing activities and promoting its products as well as distributing the products to the target audience (FRÖHLICH, ELISABETH, and SABINE GRIMM). The objective of the company is the offer a combination of unique and cost effective designs which enable the company to gain its market share and increase the profitability of the organization.
Competitors: The product is easily available from the competitors. There is high level of competition in the market. It can face direct competition from Grutzen Watches and other companies which offer similar type of products and services to the customers (Hadi et al.). This increases the level of competition in the market. However, this can be addressed by rigorous marketing and advertising.
Collaborators: In order to create value, collaboration for innovation is essential for the business organization (Haider, Ahmad Ali, et al.). Strategic alliance can help the business organization to form basic and long standing collaboration for initiating further innovation. Collaboration with other independent firms can help the organization to establish new products line and increase its portfolios in the future. Moreover, it will enable the business organization to successfully enter the new markets and help to serve the customers in a better way. This will help the business organization to reduce its operational cost, time for manufacturing and level of risk involved in operating the business (Heimbach et al.). This can help the business organization to swap technology and cast strong influence on the partners.
As per the market situation analysis, it has been identified that Spree Watches will be directly competing with major established companies such as Grutzen Watches and other branded fashion watches. The market size for designer watches, sport watches and other fashionable watches are growing at a faster rate, therefore it is essential to segment the market accurately so as to gain maximum shares and increase the level of customer satisfaction. Further, as per analysis, the purchases of watches have increased by 50% over the last two years. Therefore, it is expected that the sales of watches will continue to grow, which is a favorable situation for Spree Watches.
Market segments: The entire customer base in the market is divided into potential groups of customers or segments on the basis of product design and specific characteristics. The market is divided into leading target markets reflecting the differences in market strategy (Hong, Seungkyun, et al.). Each of the target market segmentation responds to different marketing mix strategies considering the growth and profit opportunities. The market segmentation has been done on the basis of age and income of the people and their purchasing behavior. The different segments of Spree watches include Upper class people, middle class people and lower middle class people (Iacobucci and Dawn). It aims for the segment customers who have purchasing power as well as the willingness to purchase the product.
Geographic segmentation: Shree watches aims to market the products within the geographical boundaries of the country within 12 months of its product launch. After 12 months of its product launch it can consider expanding its products in the global market after capturing adequate market share and capital for the product. The product will be moderately prices considering specific features, specifications and characteristics (Katsikeas, Constantine et al. ). Therefore, the product will be offered in the urban areas, since the local people living in urban areas have adequate purchasing power and willingness to purchase the product.
Demographic segmentation: The target age group of the customer includes within the age of 18 years to 40 years. As per the market research and analysis, it has been identified that the youth generation are more likely to purchase the product. Further, both males and females are targeted for the product offering. It targets the high income earners and the middle income earners. The offered products are of varied ranges, qualities and specifications to meet the needs and requirements of different types of customers (Katsikeas, Constantine et al. ). It aims for the office goers, the business men, the money earners as well as the students. The professionals, managers and the executives of the business are also targeted.
Behavioral segmentation: Shree watches aims for the customers with high degree of loyalty. It implies that it aims for the people who are hard core loyal. In other words, the customers who can be loyal to the company and the brand offerings are targeted. It aims for the customers who believe in the sense of achievement and belonging (Kotler, Philip, et al. ). The designer and high quality watches aim for the customers who are potential users of watches and believes in status and reputation.
Psychographic segmentation: The upper class people and the middle class people are aimed for marketing the product considering the quality of the products and it’s pricing. The income earners, professionals and the students who can afford the product offer rings are targeted. Further it aims for the sporty people and the travelers (Lamb, Charles and John Crompton). The product features and specifications such as night glow and waterproof are highly suitable for the customers who travel a lot and the people who are highly adventurous in nature. The high school students are also targeted who seeks fashion and style statement.
As per the market research and analysis, the ideal target customers belong the age of 18 years to 40 years. They have the potential to be profitable enough and they have the growth potential. These target segment customers fit in with the goals and corporate strategies of the company. It aims for the students, professionals and office goers to whom the products will be marketed to. The market size of the target customers is large enough so as to facilitate company growth and increase its profitability (Lamb, Charles and John Crompton). The segmentation has been done based on different needs of the customers on the basis of the product. For example, the waterproof designing of the product is most suitable for the customers who are adventurous and sporty in nature (Lee and Deborah). Different product range is manufactured to meet the needs and requirements of different types of customers. On the other hand, the designer wrist watches are targeted to the customers who seek fashion and style.
The luxury watches are considered be status symbols therefore, the pricing of the products are high to moderately price. It targets the customers and the people who have the purchasing power and the willingness to purchase the product. It aims for the wealthy target market with high end watches (Leonidou et al.). The target customers of the designer and stylish watches wears branded clothes and shoes. The target personality of the customers is youthful mind, goal-oriented person, sporty and highly energetic. It also targets the customers who are highly fashion oriented and aims to try on the new products in the market (Londhe and Bhausaheb). Shree watches offer its products for the people of the young generation. The marketing and advertising strategies of the company are aimed for the young men and women seeking for highly fashionable and stylish watches. The products offered by Shree Watches are youthful and are relevant with the changing time and nature of the people. The collection of watches offered to the target customers is young and distinctive in nature. The designing of the product is relaxed and informal in nature to meet the different needs and requirements of the customers. It has introduced the ‘style’ concept for the young generation (Macarthy and Andrew). The customer orientation will be done by the company through various advertising tactics and promotional campaigns. By offering lifestyle products, it will be able to convince its customers to purchase the products offered by the company.
In order to maintain its competitiveness and profitability in the market, it needs to position itself as and build its brand image in the market (McDaniel, Carl, and Roger Gates). After launching the product in the market, it needs to pace with the changes and overcome the intense competitive pressure in the market. In order to build the product image it is essential to focus on positioning its brand. Positioning the product in the market place is considered to be one of the most important parts in the marketing and advertising strategies (McDONALD and M. A. L. C. O. L. M.). This will help the business organization to influence the customers to purchase the products offered. Further, this will help the business organization to face the risk factor that will affect the market.
Spree Watches will be creating a distinct image in the mind of the customers with its special features and characteristics for the target customers. The business organization will be offering wide range of products to meet the needs of different types of customers. It will be offering waterproof watches of premium quality as well as designer watches; therefore it will be positioned itself as a premium brand with high quality products and services. Spree watches are positioned as the coolest watches for the youth generation (McKeage, Kim and Charles Gulas). The advertising and marketing strategies of the company reflects the fashion, style and other features of the products will be reflected in the promotional activities of the new business organization. Considering the target customers that are between the ages of 18 years to 40 years, the product will be positioned in the market. They are fond of fashion and style and therefore, Spree watches are best choice for the target customers (Medarac et al.). Hence, the promotional activities and marketing strategies of the company plays an important role for the success of the entire business organization (Medarac et al.).
The products offered by the business organization can be introduces in the market as high quality watches with reasonable pricing, trendier and innovative designing (Neher et al.). It will be focusing on niche marketing and services such as the office goers and the working men and women. The customer perception will be set as premium priced and moderately priced products. Moreover, it will be offering after sale services and warrantee period offers. It can Position the product as high quality at affordable pricing along with innovative features and stylish look by reaching to the target market (Perreault and William). This will help the business organization to position its products among the customers.
The product ranges of the business organization will be differentiating its products on the basis of attractiveness and superior style. The marketing activities, the promotional activities, packaging and distributing the products will be young, vibrant and attractive. It will be positioning itself as ‘value for money’ by offering high quality, attractive and stylish products to the target customers (Proust, François, et al). Being a new comer in the market, the business organization the price range of the products will be high to moderate; this will help the business organization to penetrate the market and crater to the upper end of the market (Resnick, Sheilagh Mary et al. ). This positioning strategy of the company will help to counter the threat of competitors in the industry. This will cater to the upper end of the market.
In order to maintain its position itself in the market, it is highly essential for the business organization to consider strategies to effectively launch its products in the market and market its products among the target customers (Westwood and John). It is highly essential for the business organization to put the ‘right product in the right place and at the right time’ (Westwood and John). The spree Watch will be introducing its products in the market using penetration pricing policy as this is considered to be one of the most effective strategies for launching new product in the market. Further, it will be using extensive marketing and advertising strategies to increase its revenue and growth rate of the company. An effective marketing strategy involves the four P’s of marketing mix. The marketing mix strategies can be executed through the 4P’s of marketing: price, product, promotion and place (Proust, François, et al).
Product strategy: Spree watches will be offering various distinct and innovative products. The special features and specifications of the product along with its diverse range of products will help the company to differentiate its products from the products of its competitors. It will be offering waterproof and shock proof watches, analog watches ideal for both men and women, the digital watches offered by the company will suit the needs of the adventurous and sports persons. The watches will be both analog and digital watches. Further, the products will be innovatively designed to make it look attractive and stylish (Resnick, Sheilagh Mary et al. ). This will make the products attractive to the customers and enable them to make a purchase.
Place strategy: The watches will be distributed to the customers through showrooms and shops in important market places all across the country. It can be distributed to the customers in busy market places such as malls and supermarkets (Westwood and John). The products will be distributed to the customers through small showrooms as well as through online channels. It will be offered through retail showrooms and online platforms thereby avoiding the chances of counterfeit products. The manufactured watches and high valued items will be placed in major placed all across the city through certified dealers and retail showrooms (Westwood and John). As mentioned above, the products can be offered to the customers directly through online websites.
Pricing strategy: The watches offered to the customers will be of high quality and therefore, the pricing of the product will be high to moderate. Penetration pricing policy will be implemented by the business organization since the products will be launched new in the market (Heimbach et al.). The company needs to first introduce the new product in the market, to make its acceptable to the customers through marketing and advertising strategy. Therefore, penetration pricing policy is most appropriate for the products that will be offered to the customers. Further, the pricing range of the product will vary according to the specific type of product and the quality of the product. The pricing of the product will depend on the quality of the material used in manufacturing costs, labor costs, distributing costs and other operating costs of the company (Hong, Seungkyun, et al.). The labor costing of the product is presently very high and since it will be employing best craftsmen for the designing and manufacturing purpose, the pricing of special products will be slightly high. The pricing of the products will be set in such as way that the target customers can afford it. The high price and moderate ranged products can be easily afforded by the upper and middle class target customers. Due to high priced raw materials and unique designing style of the watches, the prices of the watches needs to be set at a slightly higher price in order to cover the manufacturing and operating cost of the company (Iacobucci and Dawn). However, the target customers are upper and middle class income earners as well as professionals, therefore, they can easily afford the rate at which the watches are offered to the customers. This strategy will maximize the profitability of the business organization.
Promotional strategies: The business organization will be hiring new sales representative to present the products to the customers in the most attractive and innovative manner. The product offerings will be promoted as luxury products and status symbol (Kotler, Philip, et al. ). It range of products will be marketed aiming for the target customers and market segmentation as described earlier. The digital high quality watches are particularly marketed focusing n profile sport or particular event to showcase the need and importance of the product to an adventure lover or sports person. The product is characterized to be highly hardy and waterproof to make it useful for sportsperson and adventure lovers (Lamb, Charles and John Crompton). The product offerings will be promoted as a specialized product for individual customers as per their needs and preferences. The ultimate goal and objective of the company is to persuade the target customers to purchase the product and increasing the profitability and market share of the company (Lee and Deborah). For its marketing and promotional strategies, the marketing executives of the company will be considering both online Medias such as websites, social media sites and platforms as well as traditional form of Medias such as TV, print media and magazines. This will increase the coverage of the products and increase its visibility. It is essential for the business organization to increase the visibility of the product (Leonidou et al.). This can be obtained through rigorous marketing strategies and promotional activities. This will further increase the brand image of the products and beat the competitive pressures in the market.
|
Activity (12 months) |
Projected cost |
|
Advertising (Online/offline ) |
$10,000 |
|
Email marketing/ Blogging/website marketing |
$ 3,000 |
|
Social media marketing (Facebook, twitter, Google, Instagram) |
$2000 |
|
Market research |
$5,000 |
|
Recruitment (craftsmen/ skilled workers) |
$15,000 |
|
R&D/ other operational cost |
$20,000 |
|
Total |
$ 55,000 |
Conclusion
Therefore from the above analysis, it can be concluded that, spree watches aims to launch their new product portfolio, digital and analog watches with special features and characteristics. It plans to start up with manufacturing and distributed to the target customer base. The marketing plan has included a situation analysis, it has analyzed the customer base, it has identified the type of customers who are most likely to purchase the product offered by the company. Considering the technological and social trends, it has been analyzed that the youth generation are more likely to purchase the product item offered by the company. It is the objective of the company to gain its market share by 30% and build its brand image in the market. In the first 12 month of its product launch, the company will aim to gain its market share. It has analyzed the competitive pressures prevailing in the market and will be overcoming the competition by offering high quality products at a lower price. Moreover, with the special characteristics of the product and rigors marketing activities of the organization will help to overcome the level of competition prevailing in the market. Further, the report has determined the target market segmentation, the group of people that will be targeted by the company. As per the marketing plan and analysis, the marketing activities and effective marketing communication will be aimed to the youth generation that is between the ages of 18 to 40 years. As per the market research it has been identified that there has been increase in the number of purchases of watches. Therefore it has been predicted that the sales of the company will be favorable for the target market segmentation. It targets the people who have enough purchasing power and have the willingness to purchase the product. Spree watches will be targeting the upper and middle class people. For its positioning strategy, the marketing department will be communicating to the target audience in the most effective manner. It will be positioning its product as a distinct image in the mind of the customers highlighting the special features and specifications of the product. The advertising and marketing strategies will be directed towards the target customers. The report has identified the marketing mix strategies for marketing the products in the target market segmentation. The product strategies, place strategies, pricing strategies and promotional strategies have been described in the report. Lastly, the budget plan for the entire marketing of the product has been formulated in the report.
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bmrk301-marketing-management
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