This can be possible through Research & Development.
XYZ Ltd has already a pool of qualified designers working on innovation to make the product more appealing in the market. 2. Enter new market segments. As the product is on the growth stage, XYZ Ltd will focus on other segments such as expectant mothers and new-born. By serving different market segments, it will maximize profits and there will be more investment for innovation and there will be a wide network for its products. 3. Increase distribution channels. Distribution channels play a key role in the entire marketing strategy.
It helps to expand the reach to penetrate market. One of the best ways to gain more buyers and increase revenues is to sell through additional venues. Expanding distribution channels can be an effective tool to increase business. Broader distribution channels will result in brand building where products will be available in more locations to raise consumer awareness of the product. 4. Shift from product- awareness advertising to product- preference advertising.
Once XYZ Ltd will gain market awareness, advertisers begin creating product preferences among target customers. Establishing that preference over other available offerings requires telling the product’s story through various media. At this point, mass media use gives way to more targeted media, including social media, which allows more information to be shared. In an attempt to build brand preference advertising, the advertising will persuade a target audience to consider the advantages of a brand, often by building its reputation as a long-established and trusted name in the industry. If the advertising is successful, the target customer will choose the brand over other brands.
4.1 Porter’s Analysis In today’s competitive market place, companies are developing and executing strategies to achieve the most advantageous position in their respective market. The focus is on gaining market share and increasing profitability. Companies following differentiation leadership strategy achieve market leadership by means of offering greater value compared to their competitors. Companies do this mostly by offering better features, functionalities, delivery and support. Provision of XYZ Ltd with different features from competitors lead to a brand image creation and a brand loyalty, hence, on the one hand decrease vulnerability to price elasticity and on the other hand generate outstanding profits.
The pursuit of the differentiation strategy gives XYZ Ltd irrefutable advantages. Holcombe (2009) summarized the potential benefits of differentiation. It has been argued that the more differentiated the products are the more competitive the market will be, which in turn leads to a greater variety of offerings. XYZ Ltd will ascertain that its brand is preferred by the customers.
Therefore, by offering its brand to the population, XYZ Ltd will gain a stronger competitive advantage. Moreover, the Research ; Development team is working new trends, styles to enhance its brand to its customers. XYZ Ltd will aim at continuously invest in quality measures to develop and deliver high-quality products and effective promotion and marketing to reach out to consumers and help them understand the differentiation. 4.2 Ansoff’s Matrix Ansoff’s Matrix helps business owners to analyse the potential for each of the growth strategies. A business that operates in an expanding market can grow through market penetration. However, a business in a mature, stable market may choose to grow either through market development or product development depending on its internal strengths.
If neither of these offers sufficient potential, a business may consider diversification to achieve further growth. XYZ Ltd can use the Ansoff’s matrix to evaluate each of the growth strategies to assess which is likely to result in the best possible return. As the clothing market is an existing one, the company must develop its market penetration strategy. Market penetration is the easiest way to grow in an expanding market.
However, it becomes more difficult as the market matures and competition increases. XYZ Ltd will have to increase advertising and recruit more sales people to increase sales. It can win business from competitors through competitive pricing, discounting, vouchers and other offers such as loyalty cards. 5. Implementation Controls For the action plan to be successful, Management has to monitor the activities to ensure effective coordination.
A meeting must be organized each month with Managers to control and review progress of the marketing plan. Any deficiency identified must be reported immediately so that management can take corrective actions. This will help prevent unmet objectives. We will use customer surveys and financial reports to assess brand identify and marketing progress.
This will help in research and development and on customers’ perception of our product. Designers will be able to bring modifications as per customers taste and preferences. Moreover, to know whether the planned results are being achieved, Managers will have to do an annual plan control by analyzing sales analysis, market share, sales to expenses ratios, financial analysis and market based scorecard analysis. This will help to know where the company stands.
As the Head of Marketing, I will have the responsibility of profitability control to examine the company’s spending on product, trade channel, order size and advertising. This will result in efficiency control as the marketing expenditures can be used to forecast data for next year. With the advent of technology the market will not remain the same. Therefore, marketing auditors and analysts will do a strategic control by assessing whether the company is pursuing its best opportunities with respect to markets, product and channels.
This will be possible by carrying marketing audit, marketing excellence review, company ethical and social responsibility view and marketing effectiveness rating instrument. In addition, Management will focus on Total Quality Management that creates commitment to quality in allures which will promote a culture that meets customers’ perceptions of quality. Benchmarking can be used to compare the quality of the product with that of its best performing competitors. This will result in low switching cost for customers.
A marketing control process will establish performance standards, evaluate actual performance by comparing it with established standards and reducing the difference between desired and actual performance. Conclusion This report has been prepared to develop a Strategic Marketing Plan for XYZ Ltd which will launch a line of garments under its own brand. The marketing tools and marketing tactics have been proposed to promote the brand of the company.
