The Marketing Plan _Work in Progress_

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The Marketing Plan _Work in Progress_ Powered By Docstoc
					                         The Marketing Plan (Work in Progress)
                                Lifetime Gift Registry
                              Bus 610- Professor Ronisky
                                     Prepared by

 Executive Summary

 Situation Analysis
 Company Brief
         Lifetime Gift Registry is beginning its first year of operation. Lifetime Gift
 Registry recognizes that marketing activities are critical to the success and profitability of
 the business. Lifetime Gift Registry offers a virtually unlimited number of options for
 gift-giving providing “one stop shopping” by providing its members with the ability to
 add/purchase items from any store in the world for any gift-giving occasion. Our
 customer market is middle to upper class working households with children as well as
 single, employed, young to middle aged males. They have extensive gift giving and
 shopping needs and prefer the convenience and speed of shopping from their home

 Market Summary
Industry/ Environment Analysis
Technology      We will maintain and provide an easy to navigate website where
                customers are “happy” to shop online and feel our registry is of great
                In order to remain competitive and ahead of the curve, we will frequently
                make updates and improvements to our website and remain cutting edge.
                Our customer’s privacy and security is very important to our organization.
                Our customer’s financial and demographic information will be protected
 by             using the most up to date computer software security programs. As our
                company grows we will continue to research and implement the leading
                security features.
 Economic       Approximately 85% of all internet users shop online
                Internet shopping makes up over 20% of all retail sales
                29% of internet shoppers age 54 and younger polled state they will shop
                Only 12% polled 54 and over reported they plan to shop online

Cultural        In order to reach all customer demographics Lifetime Registry will include
                many different types of companies, provide customer support in a variety
                of languages, and possibly offer links to specific company’s based on
              origin/language. We will need to specifically recognize the various “gift
              giving” related holidays and increase advertising/marketing efforts during
              those times.

              We will need to establish settings for customer personal pages to provide
              our customers the ability to express individualism by offering an option to
              build and design their own personal page by choosing the background
              design from a list of templates, select colors that they like, fronts, include
              their picture, etc. Personal settings will also provide customers a choice as
              to the level of security they set and decide who can see their pages and
              have access to the list.

Knowledge     One of the factors that will determine the quality of service delivered is
              dependent upon how well the staff has been trained. Training will be
              developed, implemented and maintained in order to support and develop
              the skills of the workforce.

Finances      Marketing budget of $185,000 for the 1st year, $225,000 for the 2nd
              year; including website upgrades, quarterly mailings and monthly
              print advertising

              Plan to spend approximately 1% of our revenue in marketing

SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the
company and describes the opportunities and threats facing Lifetime Gift Registry.


      Strong relationships with private label manufacturers that provide merchandise in
      Efficient operations evident by immediate assist when needed through our
       customer support, speedy & efficient delivery of products
      Registry is a convenient & heplful service for anyone needing to purchase gift
      Saves consumers time shopping around at various stores
      Saves consumers worry or guess work as to what someone wants to receive as a

      The lack of brand awareness due to the fact that Lifetime Gift Registry is a start-up
      The proven strategies for developing online visibility are still being identified and
      Limitations, not all companies/ stores offer a gift registry


      An efficient business model within a growing industry.
      The ability to service the entire country.
      Provide differentiation through enhanced convenience and service attributes.


      General trepidation of Internet-based business.
      Copy Cats…. participating registries may attempt to remove themselves from our
       Lifetime Registry and develop a similar type consisting of all the stores they
       personally own (ie. Buy Buy baby, Bed Bath Beyond- same owner)

The Competition

Adopting the marketing concept means that an organization must provide greater
customer value than its competitors. Being good is not good enough if a competitor is
better. It is impossible for an organization to develop strong competitive positioning
strategies without a good understanding of its competitors and the strengths and
weaknesses of the competitors.

Three levels of competition exist.

Direct competitors (other “generic” registries )


Universal Wishlist and Gift Registry Service for use as Birthday , Christmas Gift List or
Wedding, Baby Registry


Universal Wishlist and Gift Registry Service

    is a leading service for online gift registries for weddings, baby
 showers, birthdays, holidays and any other gift-giving occasions

 Competition exists between products that can be substituted for one another (store or
 product specific)


 Offers a number of green suggestions, but celebrants can fill in their own ideas and link
 to products outside this site to offer the widest and most meaningful gift selection
 possible encouraging non-material, second-hand, homemade, and environmentally
 friendly gifts

      is the free honeymoon registry; free for both couples and guests with no
 travel purchase required.

 Competition exists among all organizations that compete for the consumer's purchasing
 power (the overall industry - retail)


 Specific to this retailer

     The mission of the Lifetime Gift Registry is to provide our clients with a convenient
 and reliable method for one- stop shopping. Customers who use the service will enjoy
 the comfort of knowing they have purchased a personally requested and individually
 wanted gift. Our clients who maintain a registry for themselves, allow family and friends
 endless and effortless options for gift buying.

Marketing Objectives
 Obtain 2,000 customers over the 1st year, increase by 35% through the 2nd year

 1st year sales forecast $650,000, 2nd year $725,000

 Increase market share by over 7% during the 1st and 2nd years

 Financial Objectives
Target Markets


Lifetime Gift Registry will position itself as a one-stop Internet boutique of high-quality,
competitively-priced merchandise. Lifetime Gift Registry’s competitive edge will be its
easy to use website and superior customer service. The desired positioning will be
achieved by:

         Lifetime Gift Registry’s website design will be a competitive advantage because
          research indicates that an easy-to-use website significantly increases sales. Too
          often sales are lost because of complex websites. Keeping it simple will be a great
         Lifetime Gift Registry’s other competitive edge is superior customer service.
          Customers that call in with issues will be pleasantly surprised at the amount of
          personal attention they receive, and how quickly issues are only resolved.
          Superior customer service will be a powerful asset.

Lifetime Gift Registry plans to become the premier and most widely used gift registry in
the world. Our services will be endorsed and communicated through various methods.
We will promote our services via on-line advertisements, in- store displays and signage,
as well as print ads in large periodicals.

Marketing Mix

Marketing Research

1. Market Needs

Lifetime Gift Registry is providing its customers with a wide selection of products from
individual stores. Lifetime Gift Registry seeks to fulfill the following benefits that are
important to their customers.

        Selection: Customers demand a wide selection so all of their gift selections needs
         can be met by one store.
        Quality: There are hundreds of different stores selling products within the
         U.S. Offering a products good quality but within a range of price categories is very
         important in order to meet the preferences of our customers.
        Customer Service: Consumers want to patronize companies that have customer
         service as a priority. Lifetime Gift Registry will model their customer service
         policies and processes after those of South-West Industries, a leader in the area of
         customer service.
2. Market Trends

The market trend for online purchases has seen a steady increase during the past decade.
This trend is fueled by several factors:

      Consumer’s ability to shop any time

      Consumers enjoy the time-saving from not having to navigate the traffic jams and
       queues of holiday shopping

      More choices.

      Bargain prices

Information based on results of recent Nielsen survey of US shoppers

3. Market Growth

Despite the recession in the US economy, online buyers spent 29 billion during the 2009
holiday season. The number of Internet users in the US was forecasted to reach 205
million in 2010, accounting for 66% of the total population. The older Canadian
generation is the fastest growing segment of online users, quickly catching up to the
younger generations. Online spending in Europe is expected to grow 18 percent and
nearly 11 percent growth for the United States.
The short-term growth of mobile online shopping has been nothing short of phenomenal.
In the United States, purchases attributed to mobile online shopping specific to retail
grew from $396.3 million in 2009 to an impressive $1.4 billion in 2010. ABI Research
believes that in 2011, mobile online shopping in the US will double again.
Teens are a robust part of the economy. They have significant discretionary income of
their own to spend and also wield increasing influence on household purchases.

Leaders in the online retail community include:
    Amazon
    E-Bay
    Toys R Us

North america B2C E-Commerce Report 2010
ABI Research


Break Even Analysis
Sales Forcast

Expense Forcast

Controls Implementation

Marketing Organization

Contingency Planning

1. Difficulties and Risks

       Problems generating visibility.
       Software/hardware issues that challenge order placement and fulfillment.

2. Worst Case Risks May Include

       Challenges securing additional capital (example: loans)

Keys to Success

      Accessible website with the “feel” of a virtual store that is easy, entertaining and
    fun to surf.
      Excellent vendor relationship that will facilitate quick shipment of orders.
      Establish an effective strategy for advertising
      Create a store image that our target customers will see as attractive

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