OUTLINE OF MARKETING PLAN

Overview

Your assignment is to develop a marketing plan for a new brand within an existing product category. Only consumer products or services are appropriate for this project. Specifically, I want you to analyze the opportunities and threats within the industry you choose; segment the market and position your new brand; describe your marketing mix; and develop an advertising strategy.

The final report must be typed and prepared in a professional manner. The paper should be 10 pages or less (excluding the Appendix). The final report is due on (April 19). During the class period on April 19 & 26, your creative team is required to give a short 15-20 minute presentation on your marketing strategy. All group members will receive the same project grade. Absolutely no excuses will be accepted for late work. Failure to make the presentation by the due date will severely lower your grade on this assignment.

Organization

I. Cover Sheet and Table of Contents

II Situation Analysis

The first part of the paper will involve a detailed situation analysis of your product category in terms of its annual sales volume, market shares of competitive brands, relevant trends, and environmental events relevant to the growth potential in this category. In other words, in this opening part you are to take an outside-in look at the industry and its relevance to your new brand. You can select any consumer product category such as baby apparel, automobiles, laundry, tobacco, hair care, luggage, games and toys, coffee, insurance, women's apparel, etc. that would be launched on a national or regional basis. You should use this analysis to justify the need for a new brand.

In selecting your product, some of you may consider new technologies or unique services. While I encourage you to be innovative, make sure that you can gather enough information to justify introducing your new brand. The more you deviate from established categories, the more you will need to research substitute (and or complementary) products as well as make assumptions about untapped consumer demand. Also, in the case of new categories, it is important that your proposed product is realistic.

The analysis should include the following:

A. Product Category Threats and Opportunities. This discussion will identify relevant environmental threats that confront the product (economic factors, cultural developments, competitive considerations, etc.) and the opportunities that in principle offset the threats. I would suggest finding a trade publication, newspaper (e.g., Wall Street Journal), or industry report that provides insight to key trends and issues facing an industry. (I don't want an extensive industry analysis, just an overview). Prepare a situation analysis (Opportunity/Threat Matrix).

B. Company Background. Assume that your hypothetical company has only one product. You should give it an appropriate fictitious name such as Jansen Electronic (for a new stereo receiver) or JRR Nabisco (for a new brand of snack foods). The company's financial situation is not a real issue in this case. Just assume there are sufficient funds to start launch the product. Prepare a mission statement for your hypothetical company with your new brand as the focus.

C. Competitive Analysis. Identify the major competitors that your new brand faces. Briefly analyze the two major competitive brands in terms of their market share, and target market sought. You might consult industry sources, news articles, marketing research publications such as Simmons or MRI that contains comparative brand usage by demographic group, or publications such as Brandweek or Advertising Age. In addition, find one newspaper or magazine print ad for two of your product category's major competitors and describe the creative strategy used by each. How are they positioned in the market?

III. Target Market Specification

Your objective in this section is to give an accurate picture of your target market. You will want to describe your target market in detail regarding:

A. Demographic Characteristics.  Identify your target market in terms of age, education, occupation, household size, sex, race, geographic location or any other characteristic relevant to your brand.

B. Consumer Behavior Assumptions.  Describe consumer motivation for buying your brand.  What underlying need does it satisfy?  What type of buying behavior do you anticipate (see p. 191)?  What sources of information are consumers likely to use in buying your brand?  What are the key attributes consumers will use in evaluating alternatives; which are less important?

C. Psychographic Characteristics.  Descrribe your proposed target market in terms of psychographic characteristics.  That is, provide a lifestyle profile of your market in terms of a sophisticated assessment of their activities, interests, and opinions on relevant issues.  What benefits does your target market seek compared to other segments?  Is occasion segmentation an appropriate bases for describing you target market's usage?

IV. Marketing Strategy

A. Description of Product/Service. In this section describe the product or service, its brand name (provide a justification of the name of your new brand), and the positioning strategy you intent to pursue. Create a perceptual map (see page 233) using key dimensions that are relevant to your category.

B. Pricing Strategy. Decide on a general pricing strategy (i.e., penetration, competitive, or prestige) and a specific price point for your new brand relative to other brands. State why your selected price position supports the other elements of the marketing mix. Also, state whether you plan to use price promotions (cents-offs specials, rebates, coupon, etc.) during the introductory stage of the product.

C. Distribution Strategy. Describe the distribution strategy appropriate for your new brand. If you use traditional channels (e.g., electronic specialty store, discount department stores), list the specific retailers who could carry your brand (e.g., Walgreens, Lands End). If you’re using other channels such as direct mail, catalog, telemarketing, infomercials, vending machines, etc., please specify. In some cases multiple retail types may be used.

D. Advertising Strategy. Discuss the creative approach used in your print ad. Justify your choice based on how you plan to position the brand within the market. In addition, be sure to discuss any appeals used (e.g., fear appeals, sex appeals, spice-of-life, comparative advertising, endorsements). Create a print ad for your new brand. With the available desktop programs, you should be able to prepare a reasonably good representation of a your creative idea.

Supporting Documents

Appendix A - Opportunities/Threats Matrix

Appendix B - Mission Statement

Appendix C - Positioning Map

Appendix D - Two competitor’s ads