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Marketing plan for a new product

In this assignment, I am going to invent a product, examine all the environmental aspects surrounding it and relate them to the micro and macro environments. I will then carry out a SWOT analysis and an environmental analysis and then draw a number of conclusions and recommendations for my imaginary company. My product I have chosen to invent a product for which there seems to be a market, or at least, there is no similar existing product. It is a conventional swivel clothesline, but with an additional feature. It will have the ability to keep clothes dry when it starts to rain.

This is achieved by the water sensors, which are integrated into the design. They then activate an umbrella like cover that shields the clothes from the rain. My product will include a leather jacket, pants, shirts, shoes and last but not lest an umbrellas. Marketing Environmental Analysis The marketing environment consists of a Microenvironment and a Macro environment. The microenvironment deals with internal factors. which could affect the company’s ability to service its market, such as competitors, suppliers, distributors and consumers.

The macro environments are those factors, which are outside the control of the company. They include social, cultural, political, economic and technological changes. They vary constantly, often with no predictability. Primarily, it is these changes that can cause the most significant threats and opportunities to a business The Micro- Environment Competition The ‘No Worries’ clothesline is an original product, which people will inevitably copy over time, making competition something to worry about in the next 5 years. Competitors will cause a major threat to business.

They can compete with prices, making it more attractive to the customer to shop at their outlet. They can make their version of the product more attractive, i. e. , more features. From what learned in my marketing class, I have discovered that consumers want quality value for money and will build a strong loyalty to those who provide they truly are loyal to their customers. Customers I understand my company will have to be customer focused, as we are a marketing orientated company. I will need to make a clear decision about the type of customer that I wish to target with my campaign.

I will need to carry out some field research into what my market requires or likes and how I can meet those requirements or wants. Mainly though, I can predict that my target market will be middle aged women, possibly housewives and possibly those who work. I will wait to see what my research reveals. It is a known fact women shop a lot more than men. They go out and buy clothes for their entire family in most cases. It is in the best interest of my organization to win the heart and mind of these individuals mainly. Distributors

It is critical to know where the customer is and is going to be in order to distribute effectively. My distribution channel must finish where the consumer is and present it in the best possible way. It is important to supply enough to meet demands. Using forecasts I will make my target easy to identify with collective data of customers shopping analysis. (Online shopping or marketing is critical for collecting data. ) As a small company starting out, I will need to recruit and independent distributor for financial reasons. Suppliers

It is important that suppliers distribute on time. My company will be using the Just in Time method of production, to save on storage space. It must be a pre-requisite of the contract with the supplier that the deliveries must arrive on time. Supplies for the manufacturing of the clothesline must be carefully monitored to ensure we don’t run out. Being a new product, it is important it is available all of the time in the first few months to try to capture a share of the market within that time The Macro environment Social Forces

Social influences which include populations, lifestyles, attitudes, values and beliefs and socio-economic class may affect my product because society is changing to become more rushed and people have less time for household chores. ‘No Worries’ clothesline will mean that people can go out without worrying about whether or not it is going to rain and their fresh laundry will get wet again. Legal Forces My company could help the environment by employing more people. I first will have to go and get a legal representative for my new company so I make sure the company follows every legal process to be accepted in the legal system.

The company will look at affirmative action, tax, and make available benefits for my employees, obey all State law where the company is based. Avoid unions and other factors that could disable my company by collaborating with my employees demand and by coming with understanding when problem occur. For example, laws to protect the consumer, employees, and Health and safety regulations, all must be obeyed. If they are not, there may be serious consequences to deal with. Technological Forces An organization must constantly be aware of technological advances in order to remain competitive and increase productivity.

Technology is constantly changing, and to keep one step ahead of the market I must continually keep checks on the advances and use them to my benefit. Cultural Forces I think my clothesline will be successful, partly due to a gap in the market, but also due to the high amount of rainfall and snow in the US. For this reason, I have decided not to aim any further than the US, as Europe has less rainfall, making my product redundant. Swot analysis for ‘No Worries’ Clothes line A SWOT analysis determines a company’s position by examining 4 factors Strengths, Weaknesses, Opportunities, Threats

Strengths and weaknesses are said to be internal, that is, controlled by the company. Opportunities and Threats are outside the company’s control and are therefore said to be external influences. Strengths Most people are willing to try a new product. If they are impressed, they will trust the company and build a loyalty to it. It is the only product of its kind; therefore, it would have a large target audience As my company is new, it has no reputation. This could be seen as a weakness, but I prefer to see it as strength, because although it has no goodwill, it also has no bad will against it.

Goodwill can be built over time. Decisions can be made quickly as there will be a small management team. This means increased efficiency within the firm. Weaknesses my product is untried and untested, so I have no idea how successful my product will be or if there will be any real demand for it. I will have to employ a distributor as I am a small firm and cannot afford to supply my own distribution. This will still cost a lot of money I won’t be able to take advantage of any economies of scale, as my company won’t be big enough

I thought of the positive side of my product and how people would like it; however, I don’t know if people really would pay what ever amount I may require them to pay for my product for me to stay in business. People will not want to buy a whole new clothesline just to have this invention on it. Opportunities There is a gap in the market for this product. No one has invented this yet; therefore, it may have the opportunity to be successful. There may be unsatisfied needs within the market. This will be identified through research.

Threats A competitor may come up with an idea the same or similar, which would threaten my main selling point, originality. Inflation rates, the strength of the economy over time and employment rates affect the public’s disposable income. If this is low, my product will not sell as much as if it was high and the public had more to spend on luxury goods. Technology may advance, leaving my product out of date. This would lessen its appeal greatly, as the public usually wants the most recent technology. The weather is a factor I can’t control, but yet it may determine when or if my product sells.

For example, I shouldn’t market the clothesline in a state that has a low annual rainfall, as it would be redundant and I would have wasted money. Also, I predict that ‘No Worries’ will sell better in winter in the US, than in summer, because of the hot weather. Without substantial rainfall, my product has no use Monitoring Environmental Forces My company will monitor environmental forces over the next five years using environmental scanning. This is the process of monitoring and analyzing the marketing environment of a company.

I must define a range of forces that require monitoring. These must be the environmental forces which the business thinks will have the most impact on its future prospects In order to monitor these forces, my company must gather data, news, and information relating to my product and its competitors. Anything that could affect either productivity or sales of ‘No Worries’ clothesline must be closely monitored and appropriate action taken. For example if a competitor produces the same product but sells it at a lower price, my business would be badly affected.

It is important that this is caught early so as action can be taken in retaliation, i. e. , lower my price or some other selling strategy. Once all the relevant information has been collated, my company would build a database of this information. This would enable us to produce forecasts, and scenarios to help us with strategic decision making. Benefits of environmental scanning are better decision-making, better general awareness of and responsiveness to environmental change, improved market analysis, and improved resource allocation and diversification decisions

Recommendations . I believe that I should use penetration pricing to start with. This would entice potential customers to purchase my product, and once they realize it is a durable and reliable piece of manufacturing, they will return, and I will gain customer loyalty. I also recommend strongly that my product be redesigned every year to keep up with technology and to keep consumer interest alive. It gives old customers a reason to buy a new clothesline and new ones a reason to start buying our clotheslines.

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