mindset this price is relatively low. The markup or profit margin is set high at 48.6% for the LG Pro. This is due to the product is new and cornering the market with no competition. The total cost of the product for sale to organizations will be $520.00.
Three Year Projection As the data shows within the chart and graph, The total combined projected demand amount is $795,600.00. This number is a total of 2200 LG Pro computers, 1100 for the domestic organizations and 1100 for the U.S. organizations based on the need of the organizations. The break-even number is $535,500.00, leaving us with a surplus of $266,010.00. The promotional budget is set at $134,000.00, using money wisely through advertising outlets; the projected expenses are $132,470.00.
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The team will utilize each of these components to establish the intended marketing objectives for year one, year two, and year three.
First-year Objectives
A marketing objective for the LG Pro will be to enter the market and obtain at least 10 percent of the market share within one year. LG will focus the objectives of the LG Pro during the first year on improving product awareness, creating effective marketing campaigns for advertising and making improvement to build product and brand awareness (Kaho, 2016).
Second-year Objectives
Second-year objectives for the LG Pro involve reducing production costs, making a mark in the industry, identifying new market opportunities and expanding sales into the education industry market segment, and making improvements to build customer satisfaction (Kaho, 2016).
Third-year
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Through this methodology the strategic marketing plan will have the best overall outcome while staying on the course the team has set. Some of the evaluation methods are based on time and others are based on product movement. An example of time and product based evaluations the team has determined to start with a weekly data collection of sales, both domestic and international. The data that is being collected is made up of who is purchasing more product (which companies), in those companies what departments (HR, sales, marketing, etc.), how many computers are they buying (quantity) and is there a trend (reoccurring purchases versus first time purchases). After the first two weeks have passed and a small data collection is available, this will act as a baseline. Once the baseline is established the team can identify areas that either need to be fixed or at least trends that need to be monitored. After the first quarter is met, the team will then go to bi-weekly data collection assuming all supply distributing channels, sales routes and production line quantities are all in the green. These evaluations will continue until the end of year one. After all quarters have met the established marks, to include end of year one sales, evaluations will be on a monthly time frame. This evaluation method
Pricing Strategy: We are going to take into consideration inflation, benchmarking and customer trade off. The pricing strategy for the new products/line extensions will be a penetration-pricing strategy to gain customers from other competitors and increase market share. Further, the volume discounts are going to be in the range of 25-40%. Taking into consideration Product lifecycle, those will be raised in the time where new products/line extension are launched.
(Yoder-Wise, 2015) During the process of planning you need to assess your internal and external environment, identify any opportunities and threats. Then you want to create your plan and identify your goals and objectives, implement the plan and lastly you evaluate and make any necessary changes. In strategic marketing, you want to identify your target market and research it. When planning you identify your strategies and objectives you identify what services you will provide and at what cost an how you’re going to market your plan. You can evaluate by getting feedback from consumers through different
This was the desire of the company. It also shows that OS-367 OS-367 is not generating even 10 percent of the gross profit on the sales revenue. If management desires to maintain a profit margin of 30% based on the ABC costs. Then they would need to raise the selling price of OS-367 to at least $19.95. By doing this they would have opportunity to at least yield a gross profit of estimated
Although Lafley has had success, the underlying problem remains. How will Lafley return P&G to its rightful place in Corporate America? P&G's solution to its problems is through product line extensions, expansion into non-premium brands, as well as acquisitions, licensing, reinforcing market orientation through consumer focus, and outsourcing. This recommendation was based on following items;
Evaluation and review should be an ongoing process of learning, embedding a process of continual improvement and development. The key to evaluating is knowing what we are measuring. We cannot monitor and evaluate the team’s progress towards agreed objectives without clear advance planning of what we want to do and how it will be achieve. Effective strategic and operational planning, incorporating clear measurable objectives, is therefore an important
When creating a marketing mix for a product, the company needs to look at the 4Ps: product, place, price and promotion (Eugene McCarthy, 1960). “When considering the 4 P’s of the GoPro, it is clear that the company’s success has been due in large to such great marketing.” (Suki Chan, 2013)[1].
“Supply manager Joe Smith was considering the purchase of 1,000 desktop Personal Computers (PC’s) for his organization.
Historically the personal computer (PC) industry has sold its products at reasonably high prices yet garnered only small profit margins. One reason for this is the high competition in the PC industry which led to competitive pricing among producers. Analyzing the competitive environment of the PC industry, it is evident that there is very little barrier to entry in this market. PC's have very low physical uniqueness and are made of standard components that require very little expertise to assemble.
Discuss an assessment or evaluation strategy which may be used to help determine the marketing potential of an organization.
For the Samsung Galaxy Note 8, we expect the sales to grow in the first quarter of year one. With people still suspect about the phone there won’t be a fixed demand on a per month basis. After a couple months pending no problems with the smartphone people will have their faith in Samsung again and purchase the Galaxy Note 8. After the first year, we expect the Galaxy Note 8 to reach a profit of 1 billion dollars. During this section, I will explain the sales forecast for each month and for the next 3 years. Also, I will discuss the breakeven analysis of the Samsung Galaxy Note 8, the cost to build the smartphone, how much we are willing to pay for expenses and what expense we focus on the most.
Strategic planning is done by the highest levels of an organization that goes threw three major phases. These phases include the formulation phase, the implementation phase and the evaluation phase. () These all play a great role for making the best possible way to carry out an action. The formulation phase is when a plan is initially developing and thought about as a way to help a business. The implementation phase is when the plan that was thought of is carried out. The evaluation phase goes over the success or failure of the plan and what could be changed and what shold have been done on the first place that could have helped the plan work. In order to come up with a plan, there must be a reason for it. This is known as the m...
The written document that describes your advertising and marketing efforts for the coming year; it includes a statement of the marketing situation, a discussion of target markets and company positioning and a description of the marketing mix you intend to use to reach your marketing goals.” (Source: www.entreprenaur.com)
An organisation strategies that combine all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and the business. marketing strategy is one way to achieve the goal of a company. The destination marketing is the first and best in class in meeting the needs and aspirations of consumers. Besides that, being a key partner for our customers, consumers and communities. Eliminating non-value added activities of the process. However, the aims to increase the target profitable growth and provides benefits above average employees and shareholders. There is an example of marketing strategies that used in Rejoice company. The 4P’s are influence the marketing strategies.
Strategic marketing involves five crucial processes. The first step in strategic marketing involves identification of the mission of the strategic marketing approach (Bryan 2015). The firm needs to determine the reason it exists in the market in the first place. A succinct definition and description of the firm’s future desires and anticipated achievements that are influenced by current steps. Each product and service offered by the organization must contribute towards the achievement of the company’s mission.
Product positioning is to use certain features of the product to position against the product of competitor. With the help of this marketing activity, marketers can attract more customers by focusing of special features of their product.