Company G 3 Year Marketing Plan Essay

XG Wi-Fi Gateway for mobile devices. Introduction With two decades of innovative and award winning design, Company G has grown to be a market leader in consumer electronics. The Company enjoys unparalleled brand recognition and is highly rated and trusted by consumers worldwide. Company G’s products are known for their original design, durability and use of innovative technology. Company G’s brands enjoy both high consumer desirability and high consumer loyalty. With a reputation as a trend setter, many of Company G’s mobile electronic products are sought-after as â€Å"Status Symbols† purchases. Some of the Company’s products benefit from a cult like following among early adopters and some serve as industry bench-marks against similar products. With the introduction of the XG Wi-Fi Gateway, the Company plans to continue to strive to be the first to market in the consumer electronic market segments that it enjoys competing in. The Company will also maintain the practice of extending products life c ycles and promoting their market positions by offering novel peripheral products such as the XG Wi-Fi Gateway timed to support and broaden the market interest and appeal associated with other existing XG products. Mission Statement â€Å"We combine beautiful design and intuitive functionally to provide consumers with desirable products that enhance the quality and convenience of their lives.† The Product The new XG Wi-Fi Gateway for mobile devices allows consumers to easily manage which Wi-Fi enabled mobile device can assess their secured home Wi-Fi network. The XG Wi-Fi Gateway is a peripheral product of the Company’s popular XG Wireless Router series. The XG Wi-Fi Gateway is industry compliant with North America and Euro Zone wireless communication standards and is compatible with other manufacturer’s routers. The XG Wi-Fi Gateway for mobile devices allows a consumer to manage their secure home Wi-Fi network through any other device designated as the â€Å"Administrator†. When a new Wi-Fi enabled device attempts to access the home Wi-Fi network through the XG Wi-Fi Gateway, an alert message is sent to the administrator. The administrator can choose several pre-set network access options as well as select from their own custom rules allowing or limiting network access to specific devices. The XG Wi-Fi Gateway for mobile devices is a 3 inch by 3 inch by 1/3 inch pad that links to the home router via a 2.0 USB plug. The XG Wi-Fi Gateway for mobile devices can also connect directly to any router with the additional purchase of a USB to Ethernet converter cable. The XG Wi-Fi Gateway for mobile devices has a minimal footprint. Once connected, the consumer does not have to interact with or manipulate the devices and it can be hidden or placed out of the way behind a computer or router. The administrator interacts with the XG Wi-Fi Gateway for mobile devices through the Wi-Fi Gateway application. The software is provided and compatible with desktop and laptop computers running Windows, OS X and Chrome operating systems. A free Wi-Fi Gateway application can also be downloaded, installed and run on smart phones and tablets using iOS, Android and Windows Mobile. The XG Wi-Fi Gateway for mobile devices is also compatible with the Xbox360 and PS3 gaming consoles. Consumer Product Classification The consumer product classification for the XG Wi-Fi Gateway for mobile devices falls under a shopping product. Additionally it should be considered with a sub-classification of unsought products. The XG Wi-Fi Gateway extends the functionality and security of modern router, thus the separate, pre-purchase of a router is required. Consumers have ample information available to make decisions regarding purchase decisions for routers; however, they have limited knowledge of the XG Wi-Fi Gateway peripheral or add-on. Consumers will require education and persuasion during the buying process. This is seen as a unique product, currently, there are no other devices or substitutes that offer the functionality of the XG Wi-Fi Gateway. Target Market Majority of our consumers will be males, head of household age 25-54, in a home with a wireless router. The household has multiple computers, smart phones or tablets. Our consumer expresses interest in electronic gadgets and considers themselves to be a â€Å"tech savvy† buyer. The target consumer is conscious about online security threats and has purchased or upgraded anti-virus software in the last 24 months. Our shopper is engaged with online social networks and media with most news delivered to the household digitally. Purchases of electronic products are heavily influenced by the favorable opinions and reviews from friends and colleagues. They are also strongly influenced by negative reviews of products by tech blogs and consumer comments in social media. Household income of our target consumer is $32,000- $70,000 annually with at least one child living in the home. Analysis of Competitive Environment Threat of new competition The threat of new competition is high. Our belief is the technologies associated with the XG Wi-Fi Gateway could be replicated by any of the other leading manufacturers of wireless routers. Company G hold proprietary technology in the design of the XG Wi-Fi Gateway and will fight to protect its interests and rights, however other manufactures could adopt their own existing patents and processes to compete. We feel these other established brands with distribution channels could generate a competitive rivalry if they choose to enter this market. Threat of substitute products or services The threat of a substitute product is low. Consumers determine if they have a need for the features offered by the XG Wi-Fi Gateway or they choose to forgo those features and service. The XG Wi-Fi Gateway has a high level of product differentiation. Consumers attempting to replicate the services of the XG Wi-Fi Gateway will find it technologically challenging and cost prohibitive to duplicate. Bargaining power of consumers Consumers have moderate bargaining power. The XG Wi-Fi Gateway is a discretionary purchase. The consumer has to desire the enhanced control of their home Wi-Fi network and or the additional security offered by the product. Buyers who have suffered a loss from a network breach will be less price sensitive than those only looking to enhance their level of control. We expect downward price pressure due to demand to bundle and discount the XG Wi-Fi Gateway with other XG routers. Bargaining power of suppliers Threats from suppliers are low. While our product is new, most of the individual components are already mass produced or can easily be produced on existing manufacturing lines requiring only minimal retooling. Key proprietary components can be produced by several of Company G’s subsidiaries. Suppliers and materials are plentiful and available globally. Intensity of competitive rivalry Rivalry is low. Currently there are no competing products for the XG Wi-Fi Gateway market. Company G enjoys significant brand recognition and brand loyalty. The XG lines also profits from a history of positive consumer reviews and ratings and benefits from higher perceived value when compared to similar products in the market. Outlays are kept low by utilizing existing manufacturing facilities and distribution channels. Costs, such as R&D, marketing, engineering and packaging design are allocated and shared across the whole XG catalog of products. SWOT Analysis Strengths 1.Company G and the XG Brand have high consumer loyalty and are recognized for innovative product design and functionality. 2.The XG Wi-Fi Gateway is the first of a kind to market. 3.The XG Wi-Fi Gateway received positive reviews from influential tech blogs and media. Support 1.Company G has carefully nurtured and reinforced its company brands. Company G has invested a considerable amount of resources promoting and showcasing the various products in the XG line. XG branded products benefit for the loyalty and familiarity consumers have with the existing line thus helping to lower overall new consumer acquisitions costs. We consider this strength to be a core competency. 2.As a first of a kind to market, Company G can maintain a higher price point by controlling the amount of products available without fear of lost of market share to competition. Company G can operate as a monopoly until others enter the market. First to the market also helps reinforce the XG brand’s reputation as a leader in providing cutting edge technology to consumers. We consider this strength to be a core competency. 3.Our target market reads and is influenced by tech blog reviews. Tech blog reviews are a valuable cost neutral resource for increasing product awareness and help raise consumer sentiment and increase product differentiation. Weaknesses 1.The XG Wi-Fi Gateway is a secondary purchase or upgrade after the initial purchase of a router. 2.Low target consumer awareness of product. 3.Target consumer requires educated before purchase. Support 1.Consumers are resistant to making an additional secondary purchase after deciding to buy a router. Consumers realize the enhanced services the XG Wi-Fi Gateway offers are not essential to a secure home network and may postpone a purchase until a demonstrated need is established. 2.As a first of a kind to market, consumers are not aware of the product. The target market is highly sought after and regularly bombarded with sophisticated marketing campaigns. The XG Wi-Fi Gateway is a peripheral product and does not command the spotlight associated with a flagship product launch. 3.Our target consumer will do research prior to making a purchase. Company G will have to put forth assessable information through multiple media outlets for the consumer to find and review. Additionally, sales persons and other trusted sources will need to be introduced to specifications and features of the XG Wi-Fi Gateway to be credible and persuasive. Opportunities 1.The XG Wi-Fi Gateway can be developed for commercial and retail use. 2.Integration into other manufactures’ routers through licensing agreements. 3.Add versatility with the incorporation with NFC (near field communication) chips. Support 1.The technology in the XG Wi-Fi Gateway could be upgraded to provide a solution in commercial spaces (coffee shops, restaurants stores†¦) that want to control, monitor or monetize their Wi-Fi bandwidth service. This would expand the XG line into a new market. 2.Company G could increase revenues by licensing the XG Wi-Fi Gateway technology to other router manufactures. By providing completive licensing agreements, it reduces the incentive of the competition from developing rival technology. 3.Near field communication (NFC) chips are an emerging technology with potential to disrupt retail checkout/payment process. The inclusion of NFC could help broaden the market for the XG Wi-Fi Gateway as the technology becomes more widely available in the retail industry. Threats 1.Shifts in technology away from Wi-Fi protocols and services. 2.A low cost competitor enters and disrupts the market. 3.A widespread security breach or software flaw could be catastrophic for the product. Support 1.The pace of change and innovations in technology is ever quickening. Consumer sentiment tends to move towards the newest standard. Wi-Fi technology is well established, reliable and widely taken for granted, it is the old guard. Some modern countries have already shifted away from Wi-Fi services in favor of cellular protocols or Super Wi-Fi, which functions in the TVWS bandwidth. Any shift away from the Wi-Fi protocol would require retooling of the XG Wi-Fi Gateway with new technology which may be prohibitive due to IP rights or development costs. 2.If a low cost competitor enters the market, Company G would have to spend additional marketing resources defending its market share. Company G would also have to engage in completive pricing to maintain its market position. Lower pricing and increased marketing efforts will have a negative impact on the XG Wi-Fi Gateway’s profits. 3.A security breach could permanently tarnish the XG Wi-Fi Gateway’s reputation. A major flaw or breach could kill the product’s viability in just a few days. Any breach would be an embarrassment to Company G, could result in lower share prices and expose the company to additional liabilities and lawsuits. Marketing Objectives Product Objective Provide our target consumer with an innovated and desirable product that is friendly and enhances their online activities with ease of use, technological compatibility and upgradeability resulting in annual sales of 1.5 million units in the first year, 3 million by the second year and 5 million by the third. Price Objective Pricing for a stand along XG Wi-Fi Gateway will start at $34.99. Company G will also offer up to a 20% savings premium when retailers order, bundle and promote the XG Wi-Fi Gateway with other XG products. Place Objective The XG Wi-Fi Gateway will utilize existing Company G online and retail distribution channels throughout North America and Europe. Additionally, the XG Wi-Fi Gateway will be carried and offered by the 3 leading cable companies in North America when selling optional residential broadband internet services. 100 days post launch, Company G will also introduce the XG Wi-Fi Gateway into AT&T and T-Mobile retail stores and kiosks in North America along with Vodafone retail outlets in the UK and Movistar retail outlets in Spain. Company G will continue to utilize its proprietary predictive algorithms to ensure global product availability. Promotion Objective We expect to increase our target consumer awareness of the XG Wi-Fi Gateway by 25% in the first six months and by 33% by each year post launch. Catching the attentions of our target consume and demonstrating the XG Wi-Fi Gateway’s unique features will be critical to the product’s success. Company G will leverage its name recognition, reputation and media relationships along with its vast distribution channels to ensure the target consumer has ample opportunities to learn about and interact with the XG Wi-Fi Gateway prior to purchase. These Marketing Objectives are crafted to provide the optimal return for all of Company G’s stakeholders. Marketing Strategies Product Strategies †¢Compatibility The XG Wi-Fi Gateway is compatible with all major router equipment sold in North America and Europe. Our target consumer will be assured that The XG Wi-Fi Gateway will work will even previously purchased equipment regardless of the manufacture. †¢Friendly, Ease of Use The XG Wi-Fi Gateway is a plug and forget it device. The software is multi-operating system compatible. The user interface has been extensively reviewed and focuses group tested to ensure an appropriate and intuitive workflow. †¢Longevity, Durability The XG Wi-Fi Gateway hardware has no moving parts and is incased in a durable vinyl covering. The hardware has a life expectancy, with normal use, of 5 to 8 years. Software upgrades are pushed to the device as needed, no interaction is required from the consumer. Given current trends in Wi-Fi technology, Company G expects the software to be compliant with FCC and EU regulators for 10 or more years. Price Strategies †¢Skimming Model Company G will use Skimming Model for the first 100 days. Leading up to The XG Wi-Fi Gateway’s launch, marketing efforts will target the less price sensitive â€Å"early adopters† portion of our consumer group. †¢High-low Pricing High-low pricing will be utilized for the XG Wi-Fi Gateway after 100 days post launch. Special offers will be presented through online and traditional retailers when they bundle other Company G products with the purchase of a The XG Wi-Fi Gateway. Company G will also offer a rebate program in secondary markets coinciding with â€Å"back to school† activities. †¢Psychological Pricing Psychological pricing will be used to have an encouraging psychological influence on our target consumer. The consumer is well educated and well connected and knows what his peers have paid for other similar products. This pricing model will ensure he feels satisfied with the decision leading up to his purchase and comfortable sharing that information with his peer group. Place Strategy †¢Strategic Channel Alliances Company G will utilize strategic channel alliances to get the XG Wi-Fi Gateway in to areas where our target consumers live, work and play. We are partnering with recognized industry leaders to cross promote their compatible products with the XG Wi-Fi Gateway. This strategy allows consumers to see how the product works with other devices and gives them the opportunity to realize an immediate benefit of ownership. †¢Intensive Distribution Model Company G will also unitize an intensive distribution model. We will maximize our current distribution network to deliver the XG Wi-Fi Gateway to all available channels our target consumer may wish to utilize to make a purchase. †¢Pull Strategy Since our consumer desires product specifications in order to make a purchasing decision, Company G will take that â€Å"teaching† opportunity and convert it in to a desire to, at a minimum, interact with the physical product. We will run a campaign to persuade consumers to â€Å"give it a try yourself at your local electronics retailer†. This pull strategy should help Company G entice retailers to provide the XG Wi-Fi Gateway a more prominent position in their outlets as consumers ask to interact with the device. Promotion Strategies †¢Trade Shows Trade Shows are an important and ideal location to introduce the XG Wi-Fi Gateway to our target consumer. He regularly attends trade shows and often shares part of his experience on social media. If our consumer does not attend a show, he often seeks out opinions or stories from friends that have attended. The trade show environment allows us to craft the best possible informational and presentation opportunity outside of the consumer’s own home. This strategy is important because our consumer tends to make multiple electronics purchase within three months after attending a Consumer Electronics Show. †¢Product Placements Seeing the XG Wi-Fi Gateway in use is important to our target consumer. We are identifying their popular movies, television and web series and negotiating subtle placement of the XG Wi-Fi Gateway in to the main story’s setting. Company G used this strategy successfully for several of its mobile products. The overall return for this strategy was better than that of a 30 second commercial buy on a similar type show. Our consumer pays attention to their favorite show and interprets the commercials as interruptions. †¢Trade Allowances Company G will provide advertising and promotion allowances in targeted markets. Trade allowances will be based on a matrix consisting of ratings for the importance of market, the retailer’s foot traffic, sales volume and ad placement and media buy. Retailers can determine how to use the allowance within the terms and conditions of the trade allowance agreement. This strategy demonstrates that Company G values the retailer’s understanding of how to capitalize on the unique marketing challenges in their local market. Tactics and Action Plan Product Action Plan †¢Compatibility oTactic: Test and adjust all XG Wi-Fi Gateway components to ensure the final unit meets all FCC and EU regulations. Test and rate for compatibility against all targeted compatible products. Make adjustments and updates when identified. oDue Date: 6 months before launch then ongoing every 6 months throughout the products life cycle. oResponsible Party: A team made-up of members for the software development group, components and hardware group, competitor intelligence group and the product management team. †¢Friendly, Ease of Use oTactic: Ensure the XG Wi-Fi Gateway is user friendly and offers an intuitive user interface. oDue Date: 9 month ahead of launch. Review will also be conducted before the release of any update that may impact the user interface. oResponsible Party: A team made up of members from market research, software development, public relations and the product management team. †¢Longevity, Durability oTactic: Only high quality components from Company G selected suppliers will be utilized in the manufacturing of the XG Wi-Fi Gateway. All parts are randomly selected for quality assurance and destructive testing throughout the assembly cycle. oDue Date: Continuous once components arrive for assembly. oResponsible Party: Quality control team as well as independent 3rd party auditors. Price Action Plan †¢Skimming Model oTactic: Capitalize and maximize revenue on consumer interest and desire to own a cutting edge product. oDue Date: Initial pricing to be finalized 90 days prior to launch and monitored for the first 100 days post launch oResponsible Party: Financial analysts, accounting, channel marking managers and product management. †¢High-low Pricing oTactic: To maximize the revenue opportunities by providing incentives for retailers and consumers by making special offers by bundling Company G products or offering appropriate rebates. oDue Date: Special pricing, bundling offers and rebate programs will be finalized at launch then reviewed every 3 months. oResponsible Party: Marketing managers, financial analysts, channel marking managers and product managers. †¢Psychological Pricing oTactic: Ensure our target consumer is persuaded that the perceived value is greater than actual retail price. oDue Date: 90 days prior to launch then every 3 months. oResponsible Party: Marketing managers, public relations team, consumer research team, independent 3rd party consumer survey team Place Action Plan †¢Strategic Channel Alliances oTactic: Partner with non-retail partners to introduce the XG Wi-Fi Gateway in unique and impactful locations and situations to our target consumer. oDue Date: 1 year prior to launch then every 3 months. oResponsible Party: Marketing team, channel marking managers and product managers. †¢Intensive Distribution Model oTactic: We will engage all of our distribution and retail partners throughout the entire product cycle. oDue Date: 1 year prior to launch then continuous. oResponsible Party: channel marking managers and distribution management team †¢Pull Strategy oTactic: Entice consumers to ask their local retailers about the XG Wi-Fi Gateway oDue Date:90 days prior to launch then continuously for the first 100 days oResponsible Party: Marketing team and public relations team Promotion Action Plan †¢Trade Shows oTactic: Secure prominent floor space at CESs and Home Shows in major and secondary markets oDue Date:1 Year prior to product launch oResponsible Party: Marketing team, product management team †¢Product Placements oTactic: Identify and secure placement opportunities on targeted media outlets/shows oDue Date: 9 months before launch and through the first year oResponsible Party: Marketing team and media relations team †¢Trade Allowances oTactic: Provide strategic retailers marketing and promotional resources to increase awareness of the XG Wi-Fi Gateway in the local markets they serve. oDue Date: 3 months prior to launch then ongoing. oResponsible Party: Marketing team and channel marking managers Monitoring Procedures To ensure the Product and Marketing Teams meet the XG Wi-Fi Gateway meets Company G’s financial performance goals: Monitoring Activity: Regular review of ongoing product performance and benchmarking. Due Date/Frequency: Weekly meetings.