MARKETING PLAN OF FICTITIOUS PRODUCT [AIR CONDITINED FOOTWEAR] Objective: To design a marketing plan for a fictitious product “ Air conditioned footwear” ABSTRACT: This marketing plan consists of all the contents of n ideal marketing plan executive summary, situational analysis, marketing strategies, marketing mix, SWOT analysis Contents: Introduction Marketing plan Executive summary Situational analysis Market research Competitor analysis Target market Barriers to enter the market Marketing strategies Mission statement Game plan Marketing mix Product Price Promotion Place Swot analysis Strengths Weakness Opportunities Threats introduction WHAT IS MARKETING??? According to the American Marketing Association “Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders”. In other words “Marketing is a societal and managerial process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others”. Importance of marketing: Marketing is everywhere. Good marketing has become an increasingly vital ingredient for business success and is always a result of careful planning and execution. It is both an art and science. Financial success of a business always depends on the marketing ability. Marketing management: It is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. What is marketed??? Marketing people market 10 types of entities. They are: Goods Services Events Experiences Persons Places Properties Organizations Information Ideas Marketing mix: 4 p’s of marketing: Product Price Place Promoter What is a marketing plan??? A marketing plan is a written document that summarizes what the marketer has learnt about the market place and indicates how the firm plans to reach its marketingobjectives. Contents of a marketing plan: Executive summary and table of contents Situation analysis Marketing strategy Financial projections Implementation controls Features of a good marketing plan: A marketing plan should be: Simple Realistic Specific Complete the most frequently cited short comings of a marketing plan: Lack of realism Insufficient competitive analysis Short run focus Marketing plan of our product air conditioned footwear Executive summary: Our launch product is a footwear ventilation technology which is applicable to all closed shoes and boots. The technology consists of an active displacement system which induces a positive flow of fresh air into the shoe while forcibly exhausting the warm and moisture-laden air which has collected inside the shoe. The resultant cooling and dehumidifying effect on the feet is substantial. Product testing indicates a reduction in the temperature inside the shoe of 7.3°F and a reduction in the "heat index" within the shoe by 46°F which has an effective air conditioning effect. This has obvious benefits in reducing odor, and other fungal infections.The technology prevents from foot fatigue, blistering and discomfort related to the buildup of heat and moisture within the shoe. This has obvious benefits in reducing odor, athlete's foot and other fungal infections. It gives the user greater comfort and protection from shock-related injuries. It suits different activities and/or users of different weights. It permits the use of less expensive manufacturing materials which are both waterproof and stretch resistant, eliminating the need for reinforcing overlays and multiple stitching processes. Two additional advantages are offered by the use of nonporous and non-stretching materials. First, if water does enter the shoe from around the ankle, the Breeze technology would actively evacuate the water and ultimately dry the foot. Second, non-stretching fabrics in the shoe's upper will significantly extend the useful life of athletic shoes and other footwear. Thus it has significant advantages over presently air bags and gel technologies. Situational analysis: Market analysis: A study was conducted to know about the potential customers, market share and the sales at the initial stage. The recognition of economic, social or cultural trends such as changes in consumer behavior was the main objective of marketing research. Students, athletes, sportsmen were taken into account to gather information about the present market condition and changes taken in the writing instrument industry. Marketing research was done to identify the need for effective fatigue free and comfortable footwear. Problem solving research was conducted to determine the basis of segmentation and responsiveness of the various segments. Product research was performed to know best possible product design and brand positioning. Price plays an important role in buyers purchase decision. Proper pricing policies should be adopted for creating the importance in brand selection. Promotional and distribution research is equally essential to find optimal promotional mix and type of distribution adopted. Marketing research- how? The second stage of marketing research involves developing the most efficient plan for gathering the needed information. This entails decisions on the data sources, research approaches, research instruments, sampling plan, and contact method. Data source: To bring together the accurate, complete and reliable data we have to collect PRIMARY DATA. Research approaches: Primary data can be collected in five ways- through observational, focus group, surveys, behavior data and experiments. Focus Group Research and Survey Research were the prominent approaches for our product. A gathering of ten to fifteen students, professionals and managers were invited to spend few hours to discuss about the product. The discussion was recorded by using audiotape and videotape. The recordings were analyzed to understand consumer behavior, beliefs and attitudes. A survey was conducted to learn about people’s knowledge, preferences and satisfaction. Research Instrument: Questionnaire was used as a research instruments in collecting the information. SAMPLING PLAN: After deciding the approach and instruments, a sample plan is made. Sample plan consist of three decisions. They are: Sampling unit (who is to be surveyed?): The target population that will be sampled is defined here. The sample units for our product would be athletes, sportsmen, students. Sampling frame is developed in such a way that everyone in the target population has an equal chance of being sampled. Sample size (how many people should be surveyed?): As we know that large sample gives more reliable results than small sample. Of around 4 per cent of the population will be considered as our sample size. Sampling procedure (how should the respondents be chosen?) : Stratified Random Sampling method was selected to chose the respondent. The population was divided into mutually exclusive groups such as athletes, sportsmen and students and random samples will be drawn from each group. FOCUS GROUP INTERVIEWS: To better understand the criteria used by consumers when evaluating and selecting footwear, focus group interviews were conducted among many students and sportspersons. Analysis of the focus group protocols provided a very good information for the assessment of consumer decision behavior in this product category. Survey research: A very extensive survey is conducted to know the opinion of consumers about the footwear in the present existing market and about their requirements in the foot wear. The questionnaire for the survey contained questions like: How different did you find the product from other products? How useful did you find the product? Is the price of the product acceptable? Is the design of the product convenient for use? Any other suggestions for improving the product? Thus different opinions were collected and summarized as follows: Results revealed that the respondents categorized footwear as: Athletic/casual, Outdoor Dress. Agreement was also found when respondents were asked to generate the factors they look for when purchasing footwear. The major factors they included are: Quality Comfort and performance Price Style. Likewise, respondents were also asked to list out the negative aspects of footwear and footwear use. The major negatives they identified were: Sweaty feet Stinky feet Too warm/ hot Not waterproof Materials rip and fall apart Competitor analysis: We are introducing a new product in the market so there are no competitors for our product. It will help in building brand strength of the product. Better service will be provided in affordable price. But we may face competition from the presently existing air bags and gel technologies. Target market: The market is primarily targeted at young lot of the customers in the age group of 15-30. It mainly aims at athletes, sportsmen and students. Later it aims at targeting variable market segments through its diversified designs. BARRIERS TO ENTER MARKET: Lack of knowledge of technology used in the product Consumer acceptance and brand recognition marketing Strategies: A marketing strategy is a broad direction statement indicating how the marketing objectives will be achieved. It provides the method for accomplishing the objectives. While marketing objectives are specific, quantifiable and measurable, marketing strategies are descriptive. The marketing strategies represent a first overview of various marketing elements and how they will be utilized to achieve the marketing objectives. The most commonly addressed strategy issues are as follow: i. Building the market versus stealing market share ii. National, regional or local markets iii. Seasonality iv. Spending v. Competition vi. Target market vii. Product viii. Naming ix. Packaging x. Pricing xi. Distribution/coverage xii. Personal selling xiii. Advertising media xiv. Advertising message xv. Internet media xvi. Merchandising xvii. Public relations xviii. Marketing research and testing. Mission statement: To make all the customers aware of the product, to build up brand strength and to achieve 20% of the foot wear market. Game plan: The market for the product is differentiated as primary and . The company's primary market is the footwear manufacturers and wholesalers. The secondary market is the end-use consumer. In meeting secondary market demand, the technology will be pulled through the primary market. Personal selling of the technology to top executives of the target footwear manufacturer is the chosen strategy. Firstly some prototype shoes were manufactured to allow testing. . An animated video which explains the technical aspects of the technology was also developed. This was considered the superior method of communicating the physical dynamics of the technology. This video will be used, as necessary, in conjunction with the prototypical footwear, in selling the technology to industry executives. A technical manual was also compiled which provides the test data and specifications. This material is available to the research and development department of the targeted company for in-house evaluation of the technology. Marketing mix: Product: Our launch product is a footwear ventilation technology which is applicable to all closed shoes and boots. The technology consists of an active displacement system which induces a positive flow of fresh air into the shoe while forcibly exhausting the warm and moisture-laden air which has collected inside the shoe. The air is replaced entirely once per stride with fresh air from outside the shoe. The resultant cooling and dehumidifying effect on the feet is substantial. Product testing indicates a reduction in the temperature inside the shoe of 7.3°F and a reduction in the "heat index" within the shoe by 46°F. This has obvious benefits in reducing odor, athlete's foot and other fungal infections. the technology militates against foot fatigue, blistering and discomfort related to the buildup of heat and moisture within the shoes.The benefits of Breeze technology include significant cushioning advantages over the existing airbag and gel technologies, allowing the user greater comfort and protection from shock-related injuries. Breeze technology can be used in conjunction with existing cushioning systems to improve the functioning of those systems, and potentially can be custom-adjusted by the user to suit different activities and/or users of different weights. Potential manufacturing cost advantages are also provided by Breeze technology since it renders obsolete the need for ventilation holes and/or porous fabrics (including leather). This in turn permits the use of less expensive manufacturing materials which are both waterproof and stretch resistant, eliminating the need for reinforcing overlays and multiple stitching processes.Two additional advantages are offered by the use of nonporous and non-stretching materials. First, if water does enter the shoe from around the ankle, the Breeze technology would actively evacuate the water and ultimately dry the foot. Second, non-stretching fabrics in the shoe's upper will significantly extend the useful life of athletic shoes and other footwear (and the period of peak performance), and thus justify a premium price. Product benefits: Comfortable and easy to use Durable Stylish in design Suitable for all age groups Affordable price PEOPLE: Market segment consist of group of customers who share a similar set of needs and wants. The marketer’s task is to identify the segments and decide which one to target. Two broad groups of variables are used to segment consumer markets. Major segmentation variables for consumer markets are geographic, demographic, psychographic and behavioral. Geographic segmentation calls for dividing the market into different geographical units such as nation, states, regions, countries, cities or neighborhoods. One of the major geographic segmentation variables relevant for marketers in India is the division of markets in to rural and urban areas. Other variables relevant for marketers are the division according to region and city. City can be divided into class-I cities, class-II cities, metro cities etc. In demographic segmentation, the market is divided into groups on the basis of variables such as age, family size, gender, income, occupation, education and socio-economic classification. In psychographic segmentation, buyers are divided into different groups on the basis of psychological/ personality traits, lifestyle or values. Segmentation for the product was done on the basis of geographic, demographic and behavioral. All metro cities will be taken into consideration for segmenting the market according to geographical basis. Only metro cities will be concentrated because income and lifestyle issues influence the penetration rate of product and services. The market potential value of cities was calculated on the based on five indicators such as number of consumers, the means these consumer have, their consumption behavior, awareness levels. When the segmentation was done on the basis of demographic factor only young lot of customers that is sportsmen, athletes and students were taken into account. One of the criteria for segmenting the market will be occasion. Occasion segmentation is done when they develop a need, purchase a product, or use a product. Occasion segmentation will help us in expansion usage. In segmentation we decide how many and which ones to target: a single segment, several segments, a specific market or the full market. Several variables were combined in an effort to identify smaller, better-defined target groups. Our target customers would be athletes, sportsmen and students participating in sports meets etc. Here benefit becomes the primary means of defining the market. Promotion: Promotion is one P among the four Ps of the marketing mix. To communicate with the user or the potential customer promotion is essential. Promotion can be done through various methods such as advertisement, personal selling, publicity, promotion through sales force, sales promotion etc….. The promotion strategy which we have adopted is personal selling and promotion through media. Both print and electronic media is taken in to consideration. These promotional strategies are adopted because they cover wider area in a cost efficient manner. We have not opted for other promotion activities because they either incur more cost or are not suitable to our product. We will also use some more methods other than paid advertising, such as dealers’ incentives, word of mouth and network of friends and professionals. This type of advertising will help in covering large area without incurring any cost. Through word of mouth we can increase the sales because people get influenced through their peer groups and develop a positive attitude towards the product. We will also promote our product by distributing the sample of the products in the stadia, sports coaching centers, gymnasiums and educational institutions in order to create awareness among the potential customers. PECENTAGE SAMPLE DISTRIBUTION 20% PERSONAL SELLING 25% NEWS PAPER 18% TELEVISION ADS 12% INTERNET 25% TOTAL 100% PRICING: Pricing represents one of the basic elements of the marketing mix, and it is one of the most difficult elements. The following factors are considered before fixing the price: Demand for the product Quality of the product Cost incurred for production Competitors cost Affordability of the customers In fixing price for our product, all the above factors have been considered. Since we are newly introducing the product into the market, we cannot expect to have more demand for our product. Therefore while fixing the price we did not aim at maximizing the profit. The price was fixed such that it was affordable to major number of consumers so that it penetrates in to the market. There are no competitors in particular but the air bags and gel technology sellers are considered. Taking all these factors into consideration we have fixed the cost as Rs. 2000 PLACE: Distribution can be defined as the transmission of goods and services from producer or seller to the user. We can also say that this is the method through which the target market user receives the product from the producer. Distribution focuses on makes sure that the product is accessible at the right time and at the right place. Various distribution channels should be used to sell the product and services. To merchandise our product we have addressed all the metro cities because the customers act as the innovators over here. Metro cities has been selected as our target market because the people have more buying capacity and are ready to undertake any type of risk. Thus it will help in recovering the cost. The distribution channel consist number of intermediaries such as sales force, agents and representatives. SWOT ANALYSIS: STRENGTHS WEAKNESS OPPPORTUNITIES THREATS STRENGTHS OF THE PRODUCT: Comfortable design Affordable price Durability Suits all activities Usable by all ages Novelty in design WEAKNESS OF THE PRODUCT: Cannot be targeted at all the segments of the market Not affordable by customers of all economic classes FUTURE OPPORTUNITIES: Can be introduced in various designs as per demand The technology can be diffused into the entire range of footwear products THREATS OF THE PRODUCT: Future competition. Imitation by various other brands How to overcome the weakness of the product?? This is a product which does not basically target all the segments of the market. So to overcome this we can gradually promote the product to different segments like women, elderly people who go out for a daily walk with a concept that it does not cause fatigue to the feet while walking and makes the walk more comfortable than before. This same technology can be extended to school children’s foot wear with a promotional strategy that it decreases the stress caused on their tender feet due to the longer hours for which they wear them. how to make use of the opportunities?? As said above we have a good opportunity that if the technology penetrates in to the market, then we can start introducing trendy and stylish designs in extension to the basic design being offered now. We can make an agreement with famous or crazy shoe brands in the market to integrate their trendy model with our ventilation technology so that it can reach more number of customers. How to combat the threats?? The threat of competition by customers can be combated by continuous innovation in both technology and design of the foot wear so that our product does not become obsolete. The other threat of imitation can be combated by taking patent rights on this technology so that others cannot use the same in their own product.