Marketing plan Essay

Marketing Plan for an anonymous watch company: Wrist Watchesà Brand Name- Trex, Company- Tumex, Geographical area- US

Executive Summary: Tumex Watch Company is a manufacturer and producer of watches which are targeted towards the various categories of customers focusing on higher class, middle class as well as lower class audiences. This marketing plan will be designed to tap on mostly the female audience which is the niche of Trex in the watch segment. The technology has created a differentiating aspect in the minds of women as a fashion style product. The company’s marketing challenge is to position the minds of the target customers based on the feasibility which is judged by high quality that generates high interactive value system for the niche market. Based on the technology of watches Tumex has thought of setting up a sales per month in the various categories which involves the product mix with reference to the training, services, software and technicality. Tumex found out that there are certain untapped markets where in the watches for women needs to be highlighted upon and this trend has been considered because of the fashion scenario taking shape and value associated with the high end consumers. It has also planned to merge and have a tie-up with the jewelry shops so that the women consumers could match they watches with the accessories and jewelry they wear based on the different occasions and benefits it provides.

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àMarketing Objectives: Since Trex is a new product in the watch category of Tumex, sales objectives cannot be compared with the previous years and moreover since Trex for the first time has been differentiated on fashion styled aspect. The primary objective is to gain 50% profit margin looking into the demand and the trend that has been researched during test marketing stages and during marketing researches. It has also been focused on being the one among the best fashion product in the watch industry in the US. To produce and manufacture the best quality watches despite the moderately priced product line. Finally the aim is to create a market share of 25% in the industry of watches in the US. To reach the target audiences in select locations thereby creating brand image and the best brand equity.

àProducts or Services: The wide multifaceted product categories of Trex consists of the premium market watches which have over 600 watches in its product lines. They have the largest exclusive retail showroom outlets across various cities around US and have a customer base of around 40 million. Trex also enjoys 50% of the market share in the organized market category where in most of the products are targeted towards the women audiences which are more prone towards the luxury of fashion and style with a mix of jewelry in tandem with the watches that Trex manufacturers. The after sales service is networked across wide distribution channels which run around 400 centers that have been partners with giant global watch manufacturers. Trex targets premium segment as well as those below Rs. 1000 price segment. The various brands are catered to the customer segments which are notable for being the slimmest and the sleek watches, sporty and casual wear, premium segment that matches with every kind of jewelry item, for women, flip watches etc (Tata, 2008).

àProjected Outcomes: The projected outcomes for Trex are in tandem with the objectives of the company which have aimed at reaching a certain market share and a profit margin that it has strategically focused upon typing up with partners for synergizing the resources and there by maximizing sales and profits. The return on investments is also aimed higher for the wide variety of product line which exists for the company. Trex also is projecting its watch acceptability to successfully take on the customers and increase the demand which ultimately provides a road towards increasing the customer base. Providing allowances on credit for their dealers, distributors, franchises along with agents have also been focused upon and the weight age is based on the technological changes that the watches have been empowered with.

Situation Analysis:

àSWOT Analysis – The Strengths include à

Strong reputation and brand image
India’s largest watch manufacturer targeting women specially on jewelry front having state-of-the art facility
Innovated and wide variety of designer products
Strong and well networked distribution channels having well set intensive coverage of the place strategy
Well established marketing mix and expertise in brand development (12manage, 2008).
Weaknesses include à

Trex has not been able to tap the entire women segment across US
Competitor analysis requires more intense focus
Research and development needs thorough analysis and in depth knowledge management to be built into.
Manufacturing plant location is not at a prime place with special reference to the availability of resources.
Major focus is on fashion and styled product category which neglects fewer classes of the customer base (12manage, 2008).
Opportunitiesà

·         Having opportunity to expand their stretch of the market based on the demand across US and other countries like India and China who have become fashion conscious.

·         Joint Ventures, Mergers and strategic alliances and partnerships are on the rise.

·         Need to go strong in the international market as a result of the leveraged rules and the regulations in going global.

·         Certain weak competitors which exist have been targeted by Trex which is a key strategy for its success (12manage, 2008).

Threatsà

·         New competitor trying to capture the women segment there by aiming at Trex’s market share and customer base.

·         Price competitiveness again poses a threat because all the product segments are at competitive rates across other competitors.

·         Few competitors have started substitute products which gives flexibility to the buyer at the point of sale or purchase (12manage, 2008).

àCompany Analysis: Trex has been one among the best watch manufacturers which is dominating in the design of sleek and elegant watches used for wearing on their wrists. Trex has been known and branded for its style icon which probably can reach every audience if they have the willingness and the capacity to buy for its looks, design and the prominence towards advertisements. The company is well established and has been equipped with focused, experienced and managed team which has made in roads into the market by tremendous sales effort. To gain a competitive advantage and edge over its rivals, Trex has structured a framework for analyzing the macro and the micro environment. Large societal forces that affect the macro environment of the company are demographic, economic, technological, socio-cultural and the physical environment. The immediate and the instant affecting environment in certain cases are the suppliers, customers, competitors and the organization itself. (Chawla A, 2008).

àTechnological Expertise: Trex has succeeded to be one of the world’s slimmest watch companies in the universe which has a wafer thin movement which is a result of the collaboration between Trex and the best design studio, the research and development team management and the manufacturing and production department. It also has power which has the ability to double the life of a battery with the best tolerance and specially designed step motor for its functioning. The Trex Company has been defined by its elegance and sophistication of being the slimmest across varied competitors. However the success factor of the different product lines of Trex couldn’t match up with the water resistance ability and also lacked reliability and the momentum to provide long term sustainability (Tata, 2002).

àMacro-Level market (Industry analysis): The Company has to interact with the external macro environment in order to strategically position its product line and understand the overall relationship with the open system of environment. The main consideration for the study of a company is analyzing the strategies and the correlation between the happenings of the environment, the resources, the objectives and the stakeholder’s expectations. The nature of the environment is necessary to be studied and the reasons for the tasks and the activities that have been affecting the company system and the macro factors at large. The PEST analysis in the watch industry is a necessity which provides a focal point for the purpose of surveying the general environment which surrounds the organization. Based on the study of PEST, more the number of urban customers it would indicate the size of the demand which will ensure a reasonable increase. Also a change in the lifestyle of the middle segment customers poses a huge opportunity for the watch industry to maximize their profits there by fulfilling the needs and the wants of every segment of the masses (Scott, C. 2008).

àProduct / Service Analysis: The various products that Tumex deals and caters to are Xiom – Tumex’s premium set of watch line

Trex – The watches exclusively for women that suits with every jewelry.

Tumex Erena – The watch with embedded precious stones and gold studs

Tisk –The worlds and the country’s slimmest watch segment

Sporty Rep – The ‘sport’s wear’ category

Tumex has also the grand collection of table clocks and alarm clocks which has made the assortment of the branded products a must seen destination.

The various competitors which have kept Tumex always at an alarming spirit are the Titan watches which are known for their great variety of watches for all the sections and are known for the brands like Nebula, Raga, and Fastrack. Timex watches are known to be the night light which is branded as Timex Indiglo. These are the top two competitors whom Tumex is targeting and especially in the category of Trex watches which are known for the styled and designed finish.

àMarket Segments: Trex the biggest and the well known brand of Tumex is known for its designer watches and is specifically targeting the women segment who have a flair for matching their jewelry with the vast collection of Tumex watches. Tumex mostly caters to the middle and the elite group but also has ventured into the other sections of the market there by creating a niche opportunity for the various customer groups. The different segments which can be discussed are the demographic segments à where in the customers could be divided based on their age, gender, occupation that specifies and identifies the customer preferences and the consumer behavior. Tumex stresses upon delivering the right kind of products and services to the whole gamut of men, women and kids thus striving for making the customer profiling information readily available for the organization as well as the customers of the firm. Behavioral segmentation is also been adopted by Trex this is true because the firm changed its styled watches based on the various occasions and benefits which made the customer special about being a part of the brand. Trex has thus succeeded in making itself stronger in consumer profiling segmentation and demographics there by helping in providing client solutions fostering the growing value of the customers (Claritas, 2008).

àProjected market share / Market growth objectives – The main objective of the firm with this regards is to carry out a thorough market analysis which enhances the managers in utilizing the market knowledge and their experiences in developing effective and a strong market share in the mature business environment. Tumex also has plans to analyze and study the Boston Consulting Group matrix for Tumex along with following on the model of General electric model to identify which business processes and products occupy the percentage of the market share in the fast growing industry. Studying this business portfolio of the company poses a threat and a challenge with reference to the estimation of return of assets which is a requirement in the research of market growth matrix. For this objective to be implemented a detailed knowledge on the marketing mix elements is a necessity that improvises upon the overall watch industry (Weber, J et al. 1998).

External Analysis – The strategic business development takes form by getting into the insights of the macro environmental factors which deals with the PEST control i.e. political, economical, and social and the technological analyzes. The environment has a major role to play in the formation of the business while large affects the strategic development and operations of the business. The purpose of analyzing the external environment is to find a balance between the environment and the business unit there by checking on the emerging trends (Ramaswamy, et al. 2004).

àCurrent Opportunities: It is important to study the demographic, technological, socio-cultural and the economic environment to know where the business is heading towards and to identify which events and activities are favorable and which are unfavorable. Assessing the scope and the challenges of the various opportunities helps in the facilitation of the marketing strategy formulation and the emerging trends therein. The present and the must looked forward challenge for Tumex is to study the competitors as there are not much competitors which targets the unique segments of Tumex (Ramaswamy, et al. 2004).

àPotential Future Opportunities – The potential opportunities that could possibly affect the company are the market conditions and the demand, the consumer tastes and preferences keeps changes with regards to the fashion and the style of watches, the industry at large and the competitive factors and finally future lies in the supplier related parameters where in they influence the raw material costs and other resources thus gaining profits for the firm (Ramaswamy, et al. 2004).

àEnvironmental Threats – Majority of the macro environmental factors pose a threat for the firm with regards to the economic, socio-cultural, technological and the legal/business legislation. These environmental threats affect the watch industry in a big way throughout the phase as it is a fashion item and requires careful understanding of the environmental premises from time to time (Ramaswamy, et al. 2004).

àCompetitive Threats: The nature of competition is very important in addition to the availability of the substitute products by the competitors. Hence analyses of the factors that affect the consumer behavior and factors that are related to the demand have to be scrutinized to overcome competition and to be competitive. The consumer, industry and competition should be constantly understood on a continuous basis. Since fashion is dependent on the current demand and the fastest growing fad that makes the firms be constantly in a flux which forces them to monitor their strategies regularly (Ramaswamy, et al. 2004).

àTechnological Threats – Tumex vouches for providing the best of technology to their prime customers with the state of the art modern technology and the best collaboration with the international markets. Tumex is well equipped with the best equipments from the Switzerland, Japan and the France market (Ramaswamy, et al. 2004).

Marketing Research (MR) – Marketing information system (MkIS) is an important tool in carrying out a study between the internal environment of the company and the external environment there by bridging the gap between the two. Marketing research is one of the components of the MkIS. For the introduction of the brand Trex, Tumex carried out a detail structured survey to finally find out the importance and the relation of the luxury watch with the jewelry segment for women (Kotler, 2007).

àPrimary Research – The Company carried out a structured questionnaire along with the personal interview to study the changing trend of the consumer preferences. In this study it was revealed that the women from middle and upper class segment preferred reasonable watches to suit their jewelry. Tumex based on the response of this brand Trex positioned it as an ornament targeting women on this generic device which is quiet reasonable as well as would cater the elite group with its expensive jewelry segment (Kotler, P. 2007).

àSecondary Research – A thorough study was made through the internet in comparison to the other competitors. The tentative analysis was also drawn from the reviews as collected from the magazines and exclusive ornament websites. In magazines majority of the consumers preferred Tumex also as a Gift Item targeting person-to-person gifts and corporate gifts (Kotler, P. 2007).

àConsumer Analysis – Customer service has been a strong point in Tumex’s marketing mix strategy. Consumer feelings have been taken a great care off especially in the repair section which including repairing the watch, repairing the feelings of the consumers at large and repairing the damage that might arise of the company image. Tumex created a corporate culture aiming towards the customers and service quality along with speed of the repair job (Ramaswamy, et al. 2004).

àCustomer Profile: While studying the Demographic factors of the consumers purchasing capacity, the social status and the income levels also known as the price preference factors pose to be very significant. Based on the research Tumex focused on the Budget watch segment which taps a low price section and the Premium watch segment where in the customers are ready to pay a due price (Ramaswamy, et al. 2004).

àContinuous Consumer Monitoring and Research – Marketing Audits on a continuous basis will help in understanding the balancing factor between what the achievements are and what had been planned. Feedback and Feed Forward are the important assessment and continuous monitoring system that Tumex focuses on.

Target Markets and Profiles – Budget watch segment is the largest women consumer segment which Tumex focuses on in comparison to the jewelry reach which accounts for 60% of the market for women watches. Preferred price range is between Rs. 5000 to 15000 Rs. Extremely difficult to enter because of the competitive price as compared to the competitors. Premium watch segment ranging from 50K Rs and above where in the consumers are willing to pay the due price to get the best match on their jewelry. This segment is relatively easy to enter (Ramaswamy, et al. 2004).

Marketing and Promotion / Advertising Objectives:  When Tumex entered the market Titan and Timex already existed in the industry and hence Tumex had to make them known in their formulation of the marketing strategies especially by their promotional campaigns (Kotler, P. 2007).

àMarketing Objectives- The primary objective of Tumex was to develop high quality product with state-of-art technology with wide range of models. Developing an aggressive promotional strategy along with the high-profile distribution there by associating the image with a showroom concept was the dream of the company.

àPromotion/Advertising Objective- variety in the various product offers was the best selling technique for Tumex which came along way with every season and with every function. Television was another major promotional media to target the working and non working women. Tumex wanted to position itself as a watch of the nation that sells seconds for you. The other objective was to position the brand Trex as an ornament which was perceived to be a part of the outfit which was focused more as a taste and style of an individual than mere a time keeping instrument (Ramaswamy, et al. 2004).

Branding Concepts/ Objectives: The main objective of Tumex is to have expertise in marketing especially in brand building and to be the top ranked brand in the consumer durable marketing industry thereby being the most admired brand in the country.

àCreating a brand Image:  Trex managed and succeeded in making itself as an icon and an item that is loved by every fashion women. The product was positioned by changing the minds of the consumers which resulted in making an impact on the mind share, market share and the heart share of the product and the company. Tumex created a great impact in its promotions by paying good attention to the sales promotions too which helped it build an image.

Product, Price and Distribution strategies:

àProduct Strategy-Tumex created an aggressive product strategy which was presumed to be the number one weapon for its sales and strategic implications. Tumex put on the market sphere a huge collection of attractive range of quality watches which had their own style and fashion. The product manufacturing had also claimed and proved to be opting for the best technology addressing a huge range of products to different segments as discussed above. Due to the availability of the wide variety of models consumers felt tempted to opt for more than one choice especially the women category. Tumex also got into designer watches mostly brought from the Euro collection and designed by the designers of Europe. To ensure the best of the quality Tumex went in for vertical integration where in the company outsourced the components from the suppliers and vendors from within the country.

àPrice Strategy – Tumex had its Trex collection targeting both the lower end as well as the higher premium target audience with a variety of ranges that suits every customer which helped the brand to meet to the demand of all the types of consumers. The brand also entered the semi urban and the rural market with low priced watches which again marked a point of success there by developing cost advantage. This was the greatest price move which Trex had entered by moving into the rural market which earlier targeted the youth and especially the women’s segment.

àDistribution Strategy- Tumex adopted the strategy of opening up number of franchisees by inviting applications from number of dealers and also by opening exclusive showrooms all over the country. The service network of Tumex has been great and covered at strategic locations with their multi brand showrooms and exclusive showrooms. The innovation here was that the competitors promoted and claimed their retail outlets as stores rather than showrooms which paved way for the trendy network of franchisees to be opened up with the best of the décor, ambience, and the quality of staff, the inventory levels and the displays which gives impact to the concept of visual merchandising.

Sales Projections- The sales revenue of Tumex is expected to be Rs.50 crore and the sales volume 2.9 million units across the country. Based on the past production capacities Tumex also has aims of projecting a 60% share of the watch industry.

Marketing Budgets- Tumex kept aside and allocated an advertising budget of Rs. 12 crore, which will be initiated for trade sales promotions, trade fairs and exhibitions and sponsorships, Market surveys and PR activities. Certain percentage will be involved in training the dealers and the employees for understanding about the project knowledge and the technicalities that will be involved in its marketing program.

One Year Budget
Year2008
Allocated To
Advertising
$ 1000,000
Marketing
Trade events
$ 400,000
Marketing
Sponsorships
$ 400,000
Marketing
Market surveys
$ 500,000
Marketing
PR
$ 300,000
Sales
Website development
$ 100,000
IT
Others
$ 100,000
Admin
Staff trainings
$ 200,000
HR
Grand Total:
$ 3000,000

àLimitations and assumptions – The limitations are with the market survey which couldn’t be targeted to the whole population. In certain cases convenience and judgmental method was considered for interviewing the respondents as a result of which the marketing budget couldn’t be met properly. The firm compromised in the advertisements initially because of the new product launch of Trex but later with the market picking up the response a change was considered in the budget.

àReturn Goals – The sales revenue of Tumex is expected to be Rs.50 crore and the sales volume 2.9 million units across the country. Based on the past production capacities Tumex also has aims of projecting a 60% share of the watch industry.

àObjective and tasks- The objective of setting up the projected budget is to work first understand the activities that will be required to be formulated in order to make the product go well in the market. Allocating a certain budget for these activities will align the marketers to have judgment of the amount required to be kept aside for the different components. In certain case the past records also help in setting up the budget but Trex is a new product in the product line of Tumex and hence objective and the task method is the best method for allocating the budget (Ramaswamy, et al. 2004).

E-commerce/Internet Marketing strategy-

Direct mail campaign can be one of the best online marketing mode where in the various products are promoted by mail order in the form of either the letter format or brochures. Mailing the prospects the attractive incentive schemes and the discount offers can me mailed to the respondents. Allowing memberships on their official websites, encouraging communities, web castings, involving interaction through forums, bulletin boards are also the few innovative forms available with Tumex.

àE-commerce Infrastructure- should be able to provide space for a large amount of data which can be accessed by a large audience and to provide a faster and quicker response time for every search. Infrastructure includes a close integration of the web activities which also focuses on the CRM (customer relationship management), ERP (enterprise resource planning) and Business Intelligence activities. The e-business architecture could be dealt with the macro and the micro perspectives (Inmon, W. 2000).

àE-commerce Objectives: The Company involves in e-commerce so that buying and selling takes place at a point which provides consumers the convenience and the ability to be at ease and surf the various product categories in a single basket. Such transactions help in order booking along with product delivery which helps in accomplishing the marketing task there by encouraging direct mail campaign/marketing.

àWebsite Content- The website would involve the following menu: Products, stores, service and contact us drop down menu. Product details would include the items ‘By Occasion’ which include Formal, dress ware, fashion, sporty casual, economy, luxury, technology and ‘By Brand’ which includes Xiom, Trex, Sporty Rep, Tumex Erena, Tisk and the last category includes Gift vouchers. The website would also involve the available discount schemes scrolling as marques on the home page which would also allows the product items to be searched based on the different price ranges (Titan Industries, 2004).

Global aspects of marketing – Opting for standard promotional campaigns and adopting the standard promotional marketing strategy would save resources of the company who enters different geographies. Promotional measures for the consumers of the country are more important then merely concentrating on the product features and the benefits even if it is economically and culturally similar nations. Tumex entered the global markets by concentrating on the nuances of cultural changes, customs, business practices and the motivations of the target market (Kumar, A. et al 2007).

Advertising strategy- Advertising is an important aspect which needs to be catered by making inroads in terms of the presence of Trex as a brand of Tumex in the various segments of the market. The firm has made plans with regards to the company’s decision in making use of celebrities to market its products and the services. The best way which the company felt was necessary was the adoption of permanent painted advertising displays which makes the strategy to be advocated as a strong conviction in the area of creating awareness and reinforcement. Tumex also wants to address the advertising consultancy by way of evolving future brand gurus into discussion on this aspect for synergizing the operations. For the brand to be created as a strong element of the consumers mind Tumex has involved into rigorous research activities and programs to study the competitors offering and the target audience. Since the watch segment of Trex is catering to the women and especially from the middle and the high class, the media of business magazines and certain television channels could be used for promotions (Kumar, A. et al 2007).

àAdvertising Execution- Tumex has made use of Print advertisements, Electronic form of advertising i.e. Television and internet advertisement where in after selection of the media and the advertisements have been thought off, they will be sent to the respective media for publication or for the purpose of transmission by ensuring the deadline of each media vehicle that has been allocated (Kumar, A. et al 2007).

Sales Promotion:

àInternet sales promotion strategy- Tumex has the intention of following e-marketing where in the customers will be given personalized and one to one treatment and will be targeted more closely and precisely. Online shopping also provides customers to distribute and redeem the coupons which use electronic coupon strategy to facilitate internet sales promotions. Allowing customers to take part in online sweepstakes and also offering free gifts and rewards is a part of Tumex culture over the web (Kumar, M. et al. 1998).

àTraditional Media Strategy: Tumex conducts a method of remunerating the customers with incentives, bonus packs, money off, premiums, allowing free samples to be distributed, adopting a coupon system, encouraging competitions for the customers, draws etc. help in implementing the consumer promotional strategy. It also helps the dealers and the channel members by way of offering price discounts, free goods, allowances and hosting competitions which are forming a part of trade promotions (Kumar, A. et al 2007).

àChannel strategies – push and pull: Tumex makes use of consumer promotion techniques to adopt the pull strategy and trade promotion strategy to follow and encourage push strategy. Pushing the products towards the end users is known as a push strategy while pulling the right kind of products through the marketing channel via manufacturers is known as the pull strategy.

Public Relations-

àInternet public relations strategy: The firm has started lately adopting and putting the public relations strategy on the web where in the seminars and the workshops that the company undertakes has been reflected on the online mode. Tumex also adopts the activities such as corporate advertising, lobbying, publications, and charitable donations there by making use of corporate social responsibility.

àTraditional media public Relations strategy: Press releases and news releases are important and effective PR campaigns which help in talking about the brand in a way which has a strong and a longer attention and recollection span. Newspaper, magazines, radio and internet are some of the Medias which help in the process of publicity where in a spokesperson build a positive image between the supplier and the consumers.  (Dolak, D. 2008).

Implementation and Control- Implementing the above marketing plan and conducting a plan to put the plan in force is a great challenge for the company. Manufacturing the right king of product at the right place at the right time and at minimum cost is the task of Tumex which implies that all the strategies needs to be in place. Adopting strategic control and profitability control mechanism will pose to be a challenge for the watch company. Implementing and controlling the different exclusive dealers and satisfying them with regards to the size and number of intermediaries, the implementation of the budget, adopting the marketing mix elements and implementing them is a major responsibility for the company (Kotler, 2005).

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