Example Of Business Plan On Marketing Plan - Tide Laundry Detergent
Marketing Plan- Tide Laundry Detergent
Situation analysis and assessment of the competitive environment
Tide is a laundry detergent producing company that has for a long time invested in the production and sale of laundry detergents. The company utilizes several marketing strategies to enhance the sale of their products to customers. The success of sales is determined by the level of marketing strategies put in place. The business of laundry detergents just like any other business requires the formulation of a strategic plan that will ensure the survival of the company. A marketing plan can, therefore, be devised for Tide laundry detergent that would enable the increase in sales and long-term survival of the company (Luther, 2001).
Situation analysis and assessment of the competitive environment is the first task to be completed in the pursuit of a suitable marketing plan for Tide Laundry Detergent. The situation of the market can either be favorable or unfavorable. Certain market situations need sophisticated marketing strategies to encounter. When dealing with complicated marketing market situations, the strategies of marketing deserve to be more complicated. Competition should also be studied critically. Competition affects the rate of sales of products. Certain regions are dominated by pre-installed competitors. The business of laundry detergents is very common both in the United States and other international communities. There are several companies that deal with the production and sale of laundry detergents. Competition is, therefore, stiff prompting Tide Laundry Detergent to implement stronger strategies.
The strategies to be adopted by Tide Laundry Detergent should aim at ousting the competitors in order to install a stronger ground for sales of products. Customers should also be considered during the marketing plan. The customers are the reason for the production of laundry detergents. Tide Laundry Detergents should, therefore, analyze the situation of customers in order to devise strategies that would ensure they are perfectly reached hence satisfied.
Researching market opportunities and market potential
The market for laundry detergents is potentially large because every of the demand for the products. Everyday someone has to use either one form of detergent or another. The use of detergents is not limited by geographical differences. However, human population determines the level of market opportunities. The sale of laundry detergents is higher in highly populated regions as compared to the lowly populated regions. The regions of high population should, therefore, attract more concentration as compared to those of low population. The performance of marketing strategy is determined by degree of sales that it registers upon installation. Tide Laundry Detergent should, therefore, concentrate the regions with high marketing opportunities (Buttell, 2009).
Regions with low number of competitors also have market opportunities. Certain laundry detergent companies have concentrated their activities in certain regions of the country only. Some regions register different laundry detergent products giving customers a wide range of products to select from. On the other hand, certain regions have fewer variation of laundry detergent brands giving customers limited chances of choice. Tide Laundry Detergent should, therefore, exploit the regions with fewer laundry products variation. The lowly invested regions can register more sales when new products are introduced into them. However, the exploitation of potential markets should be done with precise consideration of the risks involved. Failure to critically execute the potential risks in the potential markets can result to the failure of the marketing plan (Duke & Tucker, 2007).
Executing the competitive environment is a risky venture. Business is subject risks because those risks serve as keys to navigate to find opportunities. Tide Laundry Detergent should, therefore, ensure that all the strategies in place for outdoing the major competitors are implemented. Tide Laundry Detergent has got the ability to practice product differentiation that would make their products positively outstanding in relation to the competitors' products. This strength will ensure the ultimate success of the marketing plan that is to be implemented.
New market investment involves several risks that can be a burden to the company. The cost of devising and implementing a new marketing strategy is high leading to the financial strain of the company. Taking in such long term strategies can at times be opposed by certain members of the company. This leads to slow the development of the intended marketing strategy.
Tide Laundry Detergent experiences several opportunities in the laundry detergent market. Several markets have not been fully implemented giving room for further investment. In regions of low competition, the company can check in with advanced sales strategies to win the hearts of the customers. Customers are always attracted to positive change especially the young customers. Tide Laundry Detergent can manufacture products with more effective qualities so as to win customer faith. However, quality products can be of higher prices than the normal products. After long periods of customer utilization, they tend to have faith in such products therefore adopting.
In places where chances of survival are very minimal in terms of sales, the company should as well avoid venturing into them.
Market segmentation; product differentiation; and positioning
Market segmentation involves the dividing a broad market into sub-sections that share certain qualities. Certain regions have similar priorities, common needs, and interests. These regions should be treated with similar marketing strategies. Not one marketing strategy has got the potential of perfectly functioning in all markets either nationally of internationally. Different markets are best served with different marketing strategies due to the differentiation of interests, choices, and preferences. However, a single marketing strategy can work for different groups when they happen to be sharing preference, choices, and interests. Tide Laundry Detergent should therefore critically study its markets noting all the similarities and differences that they inhibit. After the critical study, the markets should be divided into segments that can be served by a similar marketing strategy. Differentiation for laundry detergents can be done on a geographic basis where customers from the same geographical region are treated similarly (Lamb, Hair & McDaniel, 2012).
The sale of laundry detergents can be maximized if market segments are properly grouped. For instance, the northern states can prefer different detergents as opposed to the southern states. This can be due to the nature of dirt on laundries found in both states. A product should, therefore, be devised with the capability of properly outdoing the nature of dirt in the southern states. The market in the southern states should, therefore, be properly studied in order to establish the exact preference of the consumers. The marketing strategy for each segment should be aimed at serving the users perfectly.
Tide Laundry Detergent can launch products with variant characteristics that are unique from the common ones. This can be achieved by introducing unique qualities in the content of the laundry detergents. That packages of the detergents can also be made different so that they appear more appealing to the customers. Customers like change in product content and packages so long as it proves to be more efficient from the ones they are used to. Advertisement of the new products can then be made to ensure information is supplied to all interested customers. Positioning is also an essential strategy towards realizing a perfect marketing plan.
Statement of marketing strategy and goals
For Tide Laundry Detergent to realize its proposed marketing strategy, there should be a clear outline of what the strategy is to achieve. The strategy is then simplified into a statement that is easily understood and mastered. The marketing strategy can state: to expand product line and increase company earnings. The statement of marketing strategy should outline the specific actions that should be done in order to advance the productivity of the company. The marketing strategy statement is operational until it fully implemented. Tide Laundry Detergent should strive to ensure the statement of marketing is functional and that it meets all its goals.
Goals of the marketing strategy
Venturing in potential market environments so as to maximize sales.
Minimizing production costs and increasing sales of laundry products so as to maximize profits.
Laundry detergents are defined by marketing requirements. The end users of the laundry detergents have the liberty of stating how they want their products to appear so as to satisfy their needs. Product planning, therefore, involves articulating the requirements of the market in order to establish products that are in line with the requirements of the market. Product planning is first done by developing the product concept. Production managers in Tide Laundry Detergent devise an appearance by which they want their products to have. After developing the product plan, the market is studied, and research carried out to determine whether the product is set to perform. The product is then introduced in the market with a preinstalled an exit strategy in case the product fails.
Pricing in the process of establishing the returns due to the exchange of a product or service. Pricing of laundry detergents is affected by several factors. Prices should be placed with the establishment of profits in mind. Tide Laundry Detergent should install product prices on their products depending on the level of demand at the time they do so. When products are in high demand at a certain time, prices can be increased in order to enable the realization of more profits. At certain times of the season based on the prevailing economic conditions, prices can be reduced due to low levels of demand. This type of price reduction is aimed at maximizing the sales index in order to essentially increase profit margins of Tide Laundry Detergent. Prices can also be incorporated with discounts in order to attract more customers.
Prices of laundry detergents can be increased based on the quality placed on them. Tide Laundry Detergent can decide to increase the quality of their products then increase prices of the same products. Customers are not more price-sensitive if at all the prices are justified with an increase in quality of the products. The company should, therefore, inform customers on the increased qualities of their products that attract the significant price increase. Prices of the laundry products should also be fair for the customers. Customers have the ability to evaluate a product hence giving their approximate value for the product. Sometimes the customers refer to the prices of existing alternative products and their justification for pricing. Tide Laundry Detergent should, therefore, install prices that are rational hence increasing sales.
Place, physical distribution, or location strategy
Laundry detergents can be promoted in several ways. Laundry detergents are in high demand throughout the nation and globe as well. Promotion can be done by making advertisements in different media. TV and radio stations can be used to spark public awareness of the availability of the products. Advertisement is accompanied by critical information on the performance and benefits of the laundry detergents by Tide Laundry Detergent. The marketing department of the company should strive to ensure that their advertisements stand to convince users more than those of their competitors (Bowman & Gatignon, 2010).
The Tide Laundry Detergent website is also an essential platform of product promotion. The website can be given a better navigable appearance that will enhance customer use. The site can also include a portal that customers can use for online acquisition of goods. Alternatively, the social media is a very efficient marketing tool. Most people in the 21st century are attached to one or more social networks. Promotion of the products can be done on the social networks as a result.
Promotion of the laundry detergents can also be done by offering relevant discounts that will attract customers especially in markets that have not been ventured before. By giving customers a chance to acquire products cheaply, they get a glimpse of the contents of such products. The customers can, therefore, develop a preference for the products hence adopting them for long time use. Discounts help in creating a faithful customer base that would ensure the survival of the Tide Laundry Detergent products for a long time. Discounts also assist in beating competitors hence winning customer preference (Westwood, 2013).
Projections of sales, costs and profits
Production involves costs and so is marketing. Before implementing any marketing strategy, the company has to lay down an expenditure plan. Marketing plans have to be implemented by sufficient funds. Lack of sufficient sponsorship of marketing plans leads to failure of the whole process hence losses. Tide Laundry Detergent should, therefore, calculate the expenses that are to be incurred during the marketing process to ensure that are all necessary. All expenses must account for so as to avoid wastage of funds. There should also be an imagination of what amount of profits are expected as a result of the sales.
The proposed marketing plan outlines the procedures of sales and how they will be implemented. All the promotion strategies come with calculated profits to be expected. The population of the different markets to be targeted will be essential in determining whether the profits will be substantial. The level of sales determines the level of expected profits. When sales are predicted to be low in certain regions, then profits are also expected to be low. The marketing plan should, therefore, be cost effective in order to enable the survival of Tide Laundry Detergent in the laundry detergent business.
Tide Laundry Detergent has the potential in increasing its sales and profits if it puts into consideration a strategically evaluated marketing plan. There are several companies that deal with the production and sales of laundry detergents. Tide Laundry Detergent Company should, therefore, invest in a critically calculated market plan so as to properly deal with the inevitable competition. The pricing of products should be done with consideration of the various price determiners. Determination of price is essential towards the realization of fast selling products. The goal of the marketing plan should be well stated. All organizational official are supposed to be enlightened on the details of the marketing plan so as to enhance implementation. Product differentiation is essential towards realizing a successful business venture. Laundry detergents can be manufactured using different ingredients with better quality that would attract customer acceptance.
The positioning of the company is also essential towards ensuring its success. The company sales should be located in convenient places that have relatively high customer turn out. When need arise, the company can install a process where goods are supplied to customers at their places. The marketing plan must include the process of promotion of products either new or existing. Promotion is key towards the realization of a successful marketing strategy. In order to enhance customer awareness, the products have to be made public through the different strategies of publicizing products. Expenditure should also be calculated so that the profits emanating from the sales made better (William, 2008).
The implementation of the proposed marketing strategy attracts the following recommendations.
The marketing plan must ensure the retention of existing customers.
The marketing plan should also attract new customers and install them to the existing customer base.
The marketing plan should also ensure the status of the company in terms of revenue increases.
A marketing plan is only valid when it meets its targets. The implementation of the market strategy should also be monitored by the officials of the Tide Laundry Detergent to ensure there is no deviation from the major goals.
The marketing team at Tide Laundry Detergent Company should release funds considering all the economic aspects in order to ensure efficiency of the marketing plan and prevent losses.
Bowman, D., & Gatignon, H. (2010). Market response and marketing mix models: Trends and research opportunities. Boston: now.
Buttell, A. E. (2009). 4 Steps to an Effective Marketing Plan. Journal of Financial Planning, 6– 8.
Duke, L. M., & Tucker, T. (2007). How to Develop a Marketing Plan for an Academic Library. Technical Services Quarterly. http://doi.org/10.1300/J124v25n01_05
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.
Luther, W. M. (2001). The marketing plan: How to prepare and implement it. New York: AMACOM.
Westwood, J. (2013). How to write a marketing plan. London: Kogan Page.
William, A C. (2008). Marketing plan.