Week 5 project

1. Pricing Strategy: To justify our pricing strategy, we considered factors such as production costs, competitor pricing, perceived value, and target market preferences. We had to determine whether we wanted to position our product as premium, mid-range, or budget friendly. Conducting a comprehensive analysis of our costs, including direct materials, labor, overhead, and any other relevant expenses. Considering the desired profit margin and the price sensitivity of our target market. Based on all these factors, we want our products to be affordable. Nature's Touch has decided that our product line will be in the price range from $5-$15. Performing a break-even analysis helped us determine the number of customers needed to cover our costs and reach profitability. Calculating our fixed costs (e.g., rent, salaries, utilities) and variable costs per unit (e.g., materials, shipping) to determine the contribution margin per unit. Divide the fixed costs by the contribution margin to find the unit break-even point. Then, consider our target market size and estimate the number of customers we'll need to reach the breakeven point. As for the price point we have decided, we feel that we should break even and be profitable. 2. Distribution Strategy: Defending our distribution strategy by considering factors such as target market preferences, geographic reach, logistical feasibility, and competition. Evaluate the strengths and weaknesses of various channels, such as direct sales, online platforms, retail partnerships, or distributors. Determine which channels align best with our target market's buying behavior and provide the most cost-effective and efficient distribution. Considering whether additional channels should be pursued based on market research and customer preferences. For example, our target market frequently uses e-commerce platforms, so exploring partnerships with popular online marketplaces may be beneficial. Evaluating the potential benefits and costs of each additional channel and assessing their impact on overall sales and profitability. 3. Integrated Marketing Communications Plan: To justify our integrated marketing communications plan, start by understanding our target market's needs, preferences, and the key messages that will resonate with them. Determining the unique selling propositions and benefits of our product or service. Then, develop key themes for your campaign that directly link these benefits to your target market's needs. Elements of the promotional mix: - Advertising: Determine the most effective advertising channels for reaching your target market (e.g., digital ads, TV, radio) and create impactful advertisements that convey our key themes. - Public Relations: Develop a PR strategy to generate positive media coverage and build brand awareness through press releases, media events, and influencer partnerships. - Sales Promotion: Plan promotional activities such as discounts, special offers, loyalty programs, or referral incentives to encourage customer engagement and increase sales. - Personal Selling: Defining the role of personal selling in our marketing mix, considering factors such as the complexity of the product, target market preferences, and the need for direct customer interaction. - Direct Marketing: Utilizing direct marketing techniques such as email campaigns, direct mail, or SMS
marketing to deliver targeted messages and offers to our customer base. - Interactive Marketing: Leverage digital platforms, social media, and content marketing to engage with our target market, create interactive experiences, and build customer relationships. Integration of elements: Ensure consistency across all elements of the promotional mix by incorporating the key themes and messages into each communication channel. Coordinate campaigns to reinforce and amplify the impact of each element. For example, advertisements can direct customers to our website or our social media sites to promote our products and services. Our interactive marketing will include our Facebook and Twitter pages. Using social media, we can keep our customers informed and encourage them to share our social media with their friends and family. By keeping our Facebook page up to date and easy to locate company information as well as links to our web page we can pique consumer interest in our products and get feedback on the other products our customers would like to see. Having one person dedicated to our social media pages will help ensure quick and accurate updating along with timely responses to questions or comments. The expense of maintaining the sites will pay off in the long run-in terms of returning customers Marketing Plan Implementation The implementation of our marketing plan must be well-timed for each geographical market area we are currently in or going into. Those who have the designated responsibility for their respective areas will report their progress directly to me as well as design and complete a marketing dashboard to be shared with the rest of the team so that we can track our marketing progress. An example of a dashboard for digital marketing is attached at the end of this paper. I trust your competence in completing a dashboard for your respective area(s). We must time the marketing of each area to ensure that our products are available as advertised and rely on word of mouth after we saturate each marketing area for one to three months. Bysaturating each market area with information about our product for a one to three-month timeframe we are sure to have market coverage and penetration providing knowledge of our products and their benefits. Today's society and their passing of ideas and discoveries on social media platforms will help our product brand grow. Our marketing budget is very large given the investment into both a new market as well as the respective geographic areas we move into. Although it is aggressive and expensive, investment in these upfront costs will set our company up for a profitable future. Products Total Annual Forecasted Annual Sales 12,000,000.00 Direct Cost of Sales 2.57 30,840,000 Sales Revenue 4.25 51,000,000 Annual Budget Advertising Sales Promotion Personal Selling Direct Marketing Interactive Marketing 8,000,000 2,000,000 3,000,000 2,000,000 1,000,000 Total Marketing Expense Budget: 16,000,000
Conclusion: As I have mentioned before our marketing is expensive but geared toward a future of profits. Education of the consumer on the differences in natural products and the benefits associated with Nature's Touch. References Kotler, Philip, Kevin Keller. Marketing Management, 15th Edition. Pearson Learning Solutions,12--2014. VitalBook file. Geckoboard (2018)Digital Marketing Dashboard Example Retrieved from https://www.geckoboard.com/learn/dashboard-examples/marketing/digital-marketing-dashboard- example/ Daly, Pete. (January 24, 2014). For this entrepreneur, it's still the mail. Retrieved from https://www.grbj.com/articles/78853-for-this-entrepreneur-its-still-the-mail Seiler, Maggie. (February 9, 2016). Balancing the Breakeven. Retrieved from https://hoards.com/blog- 18041-balancing-the-breakeven.html
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