Maketing Plan

T h e B e s t A l l - R o u n d e r
Page 1

THE BEST
ALLROUNDER

[MARKETING PLAN ]

Simply The Beat All-Rounder Page 2

Table of Contents
SWOT ANALYSIS ............................................................................................................................................ 4
1. Strengths ........................................................................................................................................... 4
2. Weaknesses ...................................................................................................................................... 6
3. Opportunities .................................................................................................................................... 7
4. Threats .............................................................................................................................................. 8
2.0 Marketing objectives and Strategy ......................................................................................................... 9
2.1 Marketing/ Financial Objectives ......................................................................................................... 9
2.2 Strategy Statement ........................................................................................................................... 12
3.0 Marketing mix development ................................................................................................................. 23
3.1 Product design and development ..................................................................................................... 24
3.2 Distribution Strategy ......................................................................................................................... 27
3.3 Promotion plan ................................................................................................................................. 29
3.4 pricing strategy ................................................................................................................................. 40
4.0 Projected Income Statement .......................................................................................................... 42


Current Situation
Sealax is a highly reputed company situated in Perth, Australia, producing and specializing in outdoor
sealers for the past 50 years. At present John Williams is heading the company after succeeding his
father. The business has progressed in a moderate manner under him for the past 10 years.
The range of sealers is specially designed to give a protective coat to pavers, brick walls and roof tiles.
The business model and range of sealers have remained unchanged since his father commenced
business. Since John took over the business, the company has centered around product orientation,
which is paying full attention on maintaining and developing the product making life easier for the
business.
Although Sealax sealers are popularly being used amongst the building industry it has failed to make an
entrance to the general public. Business has declined by 30% throughout the past 3 years because of
intense competition resulting in an excess capacity of 50000 liters. John has effectively realized the
negative effects of not paying attention to the customer needs and wants and as a result he plans on
turning his approach to being more market oriented.
An idea of a single protective sealer for anything and everything has always been in the back of Johns
mind for ages. Based on this John has decided to develop a new product and explore new markets
thereby successfully covering a market gap. The fact that the competitors in this industry has not
developed a sealer that can multi task is what John tries on capitalizing thus making this a huge business
opportunity for Sealax and Johns current vision.
Market research revealed that there is currently no such product as a multi surface sealer on the
Australian market. Capitalizing on this opportunity, after 12 months of intense research and
development, Sealax has come out with a new product. It has successfully modified the properties of
one of its existing sealers to produce a flexible sealer that can be sprayed on all surfaces especially on
fabrics to protect the objects from sun damage for up to 20 years. The sealer can also replace the
original appearance of slightly faded objects and protect them for a further 10 years. The multi surface
sealer is water based one. It sprays on blue but dries clear in 30 minutes to ensure that the object is
completely sealed with no missed areas


SWOT ANALYSIS
1. Strengths

1. Experience
Sealax sealers are extensively used across the building industry. Being in this industry for the
past 50 years has enabled Sealax to deal with all business related problems and situations due to
the high levels of experience it has gained This is a huge advantage and a strength for the
business as they have established suppliers which means high bargaining power, low prices,
established intermediaries would mean low transportation costs, low warehousing costs and
established customers meaning brand loyalty, continuing sales, customer feedback etc. This also
indicates that Sealax has a healthy market share. So they have enough experience about the
industry and they can clearly understand about customer requirements.

2. Production Capacity
Sealax has an annual production capacity of 150000 litres of sealers. In the past 12 months, it
produced and sold 100000 litres of its current products indicating an excess capacity of 50000
litres. The fact that Sealax plans on introducing a new product to the market would enable the
company to compensate sealer liquid from the excess capacity. This is a strength for the
business in terms of low cost which would lead to economies of scale and thus lead to achieving
a lower minimum efficiency scale. Having an excess capacity is also advantageous to Sealax as
they do not have to allocate a separate warehouse to store new goods minimizing costs once
again.

3. Innovation
A need for a new product for Sealax is essential taking into consideration its current situation of
a drop in business activity by 30%. Through extensive research and with the help of Sealaxs
chemical engineers, Sealax has been able to create a new product that would cater to all needs
when it comes to sealing purposes. This process is strength to the business as it would have the
first mover advantage along with guaranteed sales with the patent (2 years). The new sealer is a
unique one which is able to seal off any object from a brick wall to a cushion. This unique benefit
of the sealer itself will be an added advantage to Sealax in terms of strength.


4. Low Cost
As Sealax has been in the market for over 50 years, it has established suppliers, distribution
networks etc which would suggest low cost in producing, marketing and selling activities for its
new product which will bring out a low total cost for 1 unit. After calculation of all cost Sealax
would be able to sell a unit at cost for $6.50 which is way below the prices of sealers in the
market which range from $12 - $50. If the business can focus on productivity along with
efficiency it could use its low cost as a huge strength.

5. Direct selling
The company sold specialty sealers directly to the trade for application by trades people. (Eg:-
builders, roof tillers, bricklayers, landscapers and gardeners)Direct sales help to cut the
additional expenses and efforts. For example advertising and distribution costs. So the profits
come directly to the company.


2. Weaknesses

1. Brand Image
For the past 50 years Sealax has failed to create brand loyalty. For a big company like
Sealax, brand loyalty is really important in order to maintain a competitive position in the
market thus operating profitably. Sealax has failed to create brand loyalty and therefore
weighing a disadvantage on the companys performance. This atmosphere indicates a
situation where Sealax will has a low amount of customers. Customers will not will to
purchase Sealax products as it is not known to the general public due to poor brand
loyalty. And even though customers know about Sealax products they are unlikely to
purchase these products as they would be more attracted towards branded products
introduced by rivalry companies, who have strived to create a reputed image and taken
the opportunity to build a strong belief in customers leading to the purchase of their
products with no fear. Therefore this can be analysed as a main weakness for Sealax. Also
Model of the business and the ranges of sealers have remained unchanged since last 10
years Customers do not know the Sealax products well. Because in the past they sold their
specialty sealers directly to the trade.
2. Market Orientation
John has not ever been market oriented. Market orientation rises competition both in
the local area and internationally which leads to merchandise parity and this creates
customers having more choices. John desires to be market oriented and he has to have
the proficiency or enthusiasm to change the goods to suit the desires and wants of the
regular clientele. As John has not ever been market oriented Sealaxs goods are hardly
renowned to the public.

3. Intense Competition
Competition can be both direct and indirect. The fact that Sealaxs business activity has
declined by 30% over the past 3 years is because of intense competition. Market research
indicates that there are larger sealer manufacturers with often better products and/or
lower prices; this falling under direct competition. Companies such as Wattyl, Crommelin,
ScotchGard produce sealers which protect specific surfaces and as a result poses an
indirect competition to Sealax.

4. They do not have a patent.
In Australia sealers are absolutely vital products and thus persuade most citizens house
desires. There are no direct competitors but there are indirect competitors who eager to
exact replicate the merchandise. According to the study carried out at Sealax the
merchandise can be made a duplicate within 2 years. Thus being a gigantic handicap to
Sealax.

3. Opportunities

1. They have an opportunity to introduce a new product or modify an existing product which is
suitable for the sun exposure.
Sun damage is the main threat for all types of Australian houses (surfaces) which are exposure
to the sun. So there is a very good opportunity to modify or develop a new product to the
Australian market.
2. There is a clear need in a product which is suitable for all surfaces.
The introduction of the new product will play a big role for the company as the product has a
special property of sealing any type of durable. Taking into consideration the customer point of
view, customers have a tendency to buy a product in a particular field (in this case the sealing of
durables) that solves all problems at once. This mind set will help boost sales for Sealax, thus
creating a big opportunity for the business.

3. Securing Market Share
The introduction of the new product would mean that Sealax would not have direct
competition for its product. The fact that the product is a unique product suggests positive sales
figure, this bringing out the image of sustainability as there is a high number of potential
customers. All these overall positive aspects of the business will ultimately lead to securing
overall market share thus suggesting a good opportunity.
4. The First Mover Advantage
An opportunity can be defined as a favourable or advantageous circumstance or
combination of circumstances. The fact that Sealax is the first company to discover a product
that can be used to seal off any durables gives them the first mover advantage which is
considered a great opportunity for any business. It also brings out positives such as securing the
patent for the product; in Sealaxs case securing its product for 2 years.


4. Threats

1. High competition
Competitors are rivalry firms/people who produce and sell similar products in the market. We
can see that Sealaxs business activity has declined by 30% due to intense competition. This may
have been costly to Sealax and the increase in the competition due to price differences in the
market for outdoor products manufactured and sold by other companies also poses as a liable
threat. When product prices in other companies are lower than Sealaxs products customers
may tend to go for cheaper products. And when customers move out, purchasing other
company products, Sealax will come across difficulties like facing an excess capacity of 50,000
liters per year and it may be difficult for Sealax to maintain the excess capacity as well and
recover the sales loss.

2. Competitors will copy the formulation in 2 years time.
Even though Sealax has spent much time on research and development and now
introduced new products to the market, it is likely that other companies would copy and
produce similar products to the same set of customers. And this would have a negative
effect on Sealax as there are chances for Sealax to lose potential customers as a result
Sealax being unable to operate effectively and efficiently whilst the main aim of an
organization being the customers. Customers are said to be the eye openers of an
organization.

3. Awareness
Unsought products are products, where the idea of certain products has not reached customers
clearly. Basically people do not know about the product. A lot of aggressive and heavy
advertising is required for these types of unsought products. The business should introduce and
make consumers aware of the products. This has failed in Sealax and as result poses a huge
threat to John.


2.0 Marketing objectives and Strategy
2.1 Marketing/ Financial Objectives

Brand awareness
We expect to increase brand awareness up to 100% target customers within next 12 months
through the attractive promotional campaigns.

By producing multi surface sealer in high quality with innovative features.
Establish the online retail stores and create an opportunity to the customers for
conveniently purchasing.
Offering loyalty card for the purpose of increasing customer loyalty.
Maintaining the sponsorships for the competitions
Organizing sealax workshops to increasing the awareness in multi surface sealer
people as well as ordinary Australians who concern with health and fitness.
Offering rewards for the retailers as trade promotions.
The special features of sealax sealer that provide benefits to the customers include,
- Good weather resistance
- Resistance to temperature extremes and moisture
- Ability of non flow
At the room temperature when the sealer is exposed to moisture in the air, it is cured
forming flexible, durable and tough silicone rubber.


Communication for awareness
Communication is an essential element of any strategy. It is necessary in order to create awareness
about sealax products among potential customers, and it may include distributing informational
brochures or print and broadcast media advertising. The idea is to spark interest in our modular
multi surface sealer by explaining its features and benefits and to answer any questions consumers
may have about our products.
Product range

We recommended the wider product range towards customers convenience and
attraction. It can be more varied as follows.

Price range (per liter)
Below $150
between $150 and $200
between $200 and $250

Distribution channel
There are different channels of distribution. Market research shows that the best
distribution channel for Sealax Company to use is the Manufacturer to Retailer to
Customer Distribution channel (short channel). This is most effective and efficient in
order to achieve their goals.


Financial objectives

Increasing sales by 75%
Decreasing production and administration cost by 20%
Increasing net profit by 60%
Increase sales during the Month of December by 25.6% (Christmas season)
Increase push promotion incentives by 2%
Increase pull promotion incentives by 6%
We prefer to promote the products to the direct consumers through strategies including
e-mails and in-store display during the introductory stage of the product.

We also target to distribute our product, among all the sports stores in Perth by the end
of the year 2014.

To reduce the production cost by 25% through reduction of general overheads by the
end of the year 2014.

We target to achieve 20% increase in sales through promoting the product to the sports
clubs as well as schools within the next six month.

We aims to increase the profit by 20% through cutting down on production cost by the
end of this year.

To increase contribution margin from 40% to 48% within next 12 months

To raise sufficient capital to finance expansion, preferably through loans at reasonable
interest rates


2.2 Strategy Statement

MARKETING STRATEGY
Sealax marketing strategy is simple use the available channels appropriately to impact growth,
gaining considerable name recognition through word of mouth. Contracting for sealers and
finishing services in our commercial and municipal markets is not an impulse decision, so the
primary thrust of the marketing strategy is to inform our prospective clients of reference work
similar to the services they require.
In rank order we have identified where our priorities lie in developing market presence to
acquire clients.
1. Word of mouth
2.Client testimonials
3.Local business associations
4.Traditional print media, Internet advertising, and miscellaneous promotion techniques
Marketing strategy is essentially a pattern or plan that integrates sealax organizations major
goals, policies, and action sequences in a cohesive whole to achieve customer success.
A marketing strategy may involve several interrelated components, such as market selection,
pricing, distribution and promotion. Efficient use of these components may help Sealax
Company maintain or increase our sales. Getting potential clients may require advertising
through several different channels, which can be costly for a sealax company. Sealax can devise
several marketing strategies to stand out from the competition and achieve sealax objectives
under budget. Sealax Company is a major Australian company in Perth, which make the new
range of multi surface sealers. Sealax branded products are targeted for consumers attitude.

Sealax counts Wattyl, Crommelin, and ScotchGard as its main competitors and other brand
mentioned were Dulux, Premier painting, and AJ Blunt paint.
The objectives have been set. Strategies have to be built to active these objectives.



Growth Strategy

ANSOFF GROWTH MATRIX

A marketing strategy is something that affects every part of an organization. It is about
using everything that a business does to create value for others. This includes customers
but it also benefits employees and shareholders. The main purpose of a marketing strategy
is to set out the means by which agreed marketing objectives are to be achieved.
There are many types of marketing objectives. In this sealax company, these might include:

Increasing market share
growing sales/turnover
enhancing the strength of the brand
creating loyal customers
Managing costs effectively, thus increasing profitability.

A common marketing objective is to growth. There are a number of ways in which
organizations can grow. For example, they might expand internally. This is known as
organic growth. A quicker but higher risk option is external or inorganic growth. This
involves acquiring or merging with another business.

One positive benefit of growth is that it helps sealax to reduce costs through economies of
scale. These include:

Efficiencies arising from use of new technologies multi- surface sealer
Improved buying power as it can bulk buy at lower costs
The ability to recruit more specialists to improve decision-making.

By lowering costs, an organization increases its profitability and becomes more competitive.
One way of analyzing the various strategies that an organization may use to grow the sealax
is with Ansoffs growth matrix. This considers the opportunities of offering existing and new
products within existing and/or new markets and the levels of risk associated with each.


This matrix suggests four alternative marketing strategies:

Market penetration- involves selling more established products into existing markets, often by
increased promotion or price reductions or better routes to market.
Opening more retail outlets (increasing market penetration)
Targeting either for all customers who are house owners or under rent and all Customers
who are involved with consumer durables in a daily basis.
Product development -involves developing new products or services and placing them into
existing markets.

Sealax development a patented special materials
Continuing to invest in new product development especially focused on a flexible sealer
that can be applied to all surfaces especially on fabric.
Research & development and innovation
Detailed insights into customer needs (and how they change)
Sealax Being first to market


Market Development- entails taking existing products or services and selling them in new
markets.
Enter new market or segment with existing products.
Enter oversee market development
Exporting the sealax product to a new country e.g.:- US
Sealax product dimensions or packaging
New distribution channels e.g.;-( moving from selling via retail to selling using ecommerce
and mail order)
Different pricing policies to attract different customers / create new market segments.
Market development is a more risky strategy than market penetration because of the targeting
of new markets.

Diversification - involves developing new products and putting them into new markets at the
same time.

Develop different sealer products such as multi surface sealer


Competitive strategy
The sealax brand is considered a specialty brand. The company has little direct and indirect
consumer advertising. Maximum exposure of product advertising to consumers. It is opposite
of niche marketing, where the idea is to advertise and market products to a specific target
group of people. It could be MASS MARKETING.

Marketing mix-
The marketing mix is one of the most famous marketing terms. The marketing mix is the tactical
or operational part of a marketing plan. The marketing mix is also called the 4Ps and the 7Ps.
The 4Ps are price, place, product and promotion. The services marketing mix is also called the
7Ps and includes the addition of process, people and physical evidence.
Analyze the marketing mix of the sealax and emulsions, but before that let us have a brief
look at the target Market and Market Segmentation of Sealax.

TARGET MARKET
Sealax is having a wide range of products that fulfills the needs of all type of customers, yet its
main focus in on the upper/elite class and the upper middle class. Comparatively little emphasis
is made on the lower middle class. Industrial customers are also included in their target market.
Sealax has infact categorized its customers into three categories.
1. A- constitutes the elite / higher class
2. B- Constitutes the upper middle class both these categories include the people
who can easily afford the sealers (highest quality) of Sealax.
3. C- Middle middle and lower middle class which usually afford the normal/
average quality sealers of sealax.
Therefore they define their Target Market according to the class categories and not through
territories.


MARKET SEGMENTATION
Sealax provide their products only to the traders (registered) which in turn serve to the various
market segments, which are as follows:
Sealers /painting
Sealers /painting Contractors
Architects
Construction companies
Consumers

PRODUCT
Sealax a proud organization, dealing in sealers has a wide rage a quality sealer suitable for all
sort of surfaces and climates not only for the household customers, but they have also
developed brand loyalty among industrial customers.

PRODUCT RANGE
Sealax is producing both "WATER BASED" sealers as well as "OIL BAES" Sealers.


WATER BASED SEALERS
Sealax special sprays on blue
This is premium quality sealer and is washable. It is used for masonry surfaces and has a
durable, smooth, finish.
Coverage: 1liter (7 piece outdoor dining setting) -4 liter / coat.
Sealer Natural Whites
These sealer cover with unique fragrances, especially features for the people and customers
who are sensitive to the smell to sealers. They have nine subtle hues of white are washable and
have a smooth, durable finish.
Coverage: 11-16 m2/liter/coat

Sealax Weather shield
It is the weather protective sealer used for exteriors which is extremely durable against all
extremities of weather. It has been tested and proven for 15 years.
Coverage: 12-13 m2 /liter/coat
Sealax Once
It is a new breakthrough in sealer technology as it completes the job in just one coat. This
special emulsion saves time has a high coverage and therefore is highly economical.
(Only one coat needed)
Sealer plus Emulsion
This sealer is basically for the price sensitive people as they call it Sheilds value for money
emulsion sealers". It has quite a many beautiful popular shades for wall surfaces and has a
smooth finish.

SOLVENT BORNE SEALERS
Sealax Synthetic Enamel
It is sheild super gloss enamel which is ideal for wood and metal surfaces. It is also available in
non-yellowing brilliant white.
Coverage: 13-15m2 /liter/coat
Sealax Pearl Glo
It has a subtle sheen of pearls and is suitable for all surfaces. Its high washbility makes it
especially ideal for kitchens bathrooms.
Sealax Aluminum
It has a brilliant aluminum finish and is capable of resisting high heat. It is used to decorate
both metal and wood surfaces.


Product position
Product positioning is a marketing strategy that aims to make a brand occupy a distinct
'position,' relative to the competing brands, in the mind of the customer. Firms apply this
strategy either by emphasizing the distinguishing features of their brand (what it is, what it
does and how, etc.) or try to create a suitable image (inexpensive or premium, utilitarian or
luxurious, entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is
very difficult to reposition it without destroying its credibility.
Sealaxs research and Product development Department has come up with a first class product.
In order to make the product a success in the market it is vital to position the product.
The main highlight of the new product introduced by Sealax is its Special property of being able
to Seal any surface, this unique feature would be the best and most strategic path for Sealax to
take in positioning its product. It could start off by advertising all features and also indicate that
the product is a Utilitarian one whilst being affordable. Sealax can thus propose to position the
product as a reliable, all purpose, and long term protective product at an affordable price.
The sealax has given the image of high quality and an extra ordinary product for their houses
thus charging the high prices for their brands. The recent campaign of sealax is aim at giving the
consumer the importance of home. They want to give impression that sealax protects their
homes well than other competitors. Sealax has established itself as the clear market leader
within the decorative sealer market and is a household name in decoration and protection.
Brand image consumer research shows that the brand clearly outperforms all major
competitors in all categories.
Sealax brand values are summed up very clearly in the words worth doing, worth sealax.
Sealax is committed to delivering high quality innovative products which perform to high
standards expected by its consumers. The brand has strong family values and is a respected and
trust icon. This image is reflected in the well-known. The position is based on the strong and
unique points.


Target market
A specific group of consumers at which a company aims its products and services. This can be
an excellent way to target a specific group of customers. For example, a housing estate which is
reaching a certain age might respond well to a leaflet or flyer offering your services. With direct
marketing you can soon tell what is and isn't working, so be prepared to try out different
approaches. A limited period offer such as 10% off all work can often attract business and make
people respond more quickly.
In the introduction of the new product would mean that Sealax would have to identify their
target market for this product. Fortunately, as most house hold in Australia suffer from Harsh
Sun damage, the target market does not need much segmentation: In other words the product
can be targeted to all households and all customers who use consumer durables.
Taking a more thorough and closer look at the target market Sealaxs ideal target market is all
customers who are either house owners or under rent and all Customers who are involved with
consumer durables in a daily basis.
The Price of the new product is affordable as Sealax is targeting Customers who are usually in
the middle class range.


3.0 Marketing mix development

Sealax is a leading paint in Perth over 50 years of time. They provide all kinds of paint
under their trade name. They have done splendid job when it comes to indoor furniture. But
other things were not so lucky for them due to high heat and ultra violate ray all outdoor items
such as water heater, air-con condensers, pool pump and filter, outdoor furniture, garden pots
and ornaments, external door and windows and frames etc..
In present Sealax having competition due to lack of innovation, they supply their products
same as 50 years an ago which still using old strategies. As a result of that Sealax does not
actively markets its products, they just relying on regular customers. So there sales have
declined 30%, so they really need a good innovation product to compete successfully in the
market by understand common problem and giving them a better solution.
Now Sealax have come up with an idea to design a protective coat a pavers, brick walls and roof
tiles which idea of a single protective sealer for anything and everything. Because all Perth
homeowners clearly need this product that will spared this to the mass production of market
and also their primary goal in long term should be maximize their distribution and spared it all
over the Australia.
Sealax needs to position the new advanced product range; by highlighting the key attributes
that will intern help distinguish ourselves from the other competing brand. Consumer
perception needs to be changed in order for them to accept our products because in the starts
public wont be accept the product straightly. So for that they need to consider about the five
stages of consumer buying behaviors ( need awareness- can create the need for a new
invention in outdoor paint with our patent and also people need it due to heat and UV rays,
information search clearly and repeatedly send the message across to the consumers,
evaluation seen our way in to the evoked bunch by carefully positioning our products in
consumers mind and carefully remind them why we are here, and how we can help, purchase-
make distribution exclusive and the easiest destinations to purchase our products from, post
purchase- keep track of our clients, give them the proper after sales resources, guarantee so
we can continue the good relationship in further years) needs to be critically analyses data
through a research for the success of the product.


3.1 Product design and development

Product development in brief is a process creating or marketing a new product to be sold by a
business to its customers whereas design refers to the activities involved in styling, look and
feel of the product, deciding on the products mechanical architecture and selecting materials
and process that are necessary to make the product work.

The product design of a business is the way in which the sealax company can attract their
customers as there are some customers who are more attracted and addicted towards a
products design. Sealax can attract customers by maintaining a good packaging system where it
makes the customer feel that the product is well developed and maintained in good quality.
Also sealax should focus more on developing the product as well because normally customers
look out for quality and long use furnitures. As sealax is a mass operating company it has to
maintain its quality to hold on to its customers without losing them as in a business product
development and design is more important in the point of view of a customer.

As mention above sealax have to develop their new product and test it before they put it on to
the market. To test the product they have to come up with new marketing strategy and to see
the customer satisfaction they can test it on their loyal customers and see their respond and
evaluate it in successful manner after that they can put their product in to market in successful
way.


when we thinking about this protective code that can covers almost everything in outdoor we
came up with the name called SHEILD which means giving the best protection that going
beyond the expectation and we came up with a slogan, Best All Rounder explains more than
what the customer expects. The main reason for such a slogan is because our product has
almost all protective features required and expected by a customer. Our product is a multi-
surface sealer which can be used for all kind of things and also it fights against damages and sun
rays. It has many features and thats the only reason why it is named as the multi surface sealer
as it can be used in any situations effectively and also for multi surfaces, and also it has another
Key feature which is long usable/durability.

Our logo represents a shield which gives the customers strong ideas about the product. Our
Product is well protected from sun rays and it avoids damages to its maximum. For an example
we can see that shield is for the protection so like that our new product THE SHEILD will protect
all outdoor materials from sun rays as well as other damageable resources. We guarantee that
our product is similar to a strong shield. It will be more useful for its price and quality and also it
is specially made for long durability.

Sealax is a company which have indefinite protection under common law that mean they have
a trademark already so we have to get a patent to our new innovation sealer so we have our
protection at least for 20 years. In that we can bring it as a well-known brand by using
marketing strategies. So do company will be on business for longer period

Packaging is a main element in a business where it safeguards the product. Also a good and
safety packaging gives the consumer an idea about the product, for an example, the customers
will feel the quality of the product and also the safety of the product according to the way the
product is being packed. Customers can be attracted towards the product if there is a good and
innovative packaging. Also in packaging we can do little bit of promotion too such as giving
product information through labeling and when having attraction to the product it will be easy
to recognized. And we are going to introduce different kinds of spry bottles also.



3.2 Distribution Strategy

Its vital for every business to have a distribution channel as it facilitates the flow of products
and information from the supplier, manufacturers and importers to the ultimate consumers.
For a company like Sealax distribution is very important in marketing because they determine a
products availability in the marketplace. Distribution is all about placing a product at the right
place at the right time. The main responsibility of distribution goes to the logistic department of
sealax. The logistic department is responsible for the storage movement and availability of the
new sealer in the market. There are different channels of distribution. Market research shows
that the best distribution channel for Sealax Company to use is the Manufacturer to Retailer to
Customer Distribution channel.
In the short run, sealax has to target 500,000 houses in Perth. For one year, anyhow sealax has
to target at least 200,000-250,000 houses as their product can be copied in 2 years time. So by
targeting 200,000-250,000 houses for one year, sealax can successfully go through 400,000-
500,000 houses before the product is being copied. Therefore Sealax has to distribute their
products for more than 100 outlets and every outlet, over 150 sealers should be sold per month
to achieve a successful target in the end of the year.
In current situation sealax has a channel length of both direct marketing and short term
marketing. They already using direct marketing as their channel length, they specifically say
that they sold sealers directly to the trade for application by trade people so they can promote
their new brand to them more than any one. In 12 months of time they can expand their sealer
as the planned for that they can use short term method because they dont have strong way to
archive customer directly for that they need to reach a retailer through them only Sealax can
get attention from customers,in this process retailers playing a huge part.
Sealax as the Manufacturer that choose to expand into the retail market must fully understand
the potential advantages and risks involved with such a decision. Sealax products will be made
available for customers at many hardware stores, furniture stores as well as shopping malls
around Perth. Sealax as the manufacturer has a greater advantage when it comes to product
wholesaling they can use their own warehouse which can store their distributions and they can
provide them to their retailers so it would be more cost effective and also retailers can cover a
wider range in the market and it may be helpful to conduct their own wholesaling tasks. They
can do their business successful by storing goods and delivering to retailers by conducting their
own warehouse so we plan to expand our warehouse facilities when we comes to a stable
situation by analyzing our marketing plan in long run.

Warehouse design for the long run. To facilitate the online distribution facilities
better to cut cost and improve a faster delivery method.

In distribution strategies retailers play a huge part. Retailers are the people with more
experience on selling consumer products, so Sealax can gain advantage through them. As the
product is being sold to the retailers there wont be any storage costs, insurance costs, security
costs etc. Also the price of the products would come down as a result of lowered inventory
holdings, shorter supply chains, increased margins, better forecasting capabilities etc. The retail
store can act as a single point of contact for the buyers for all things relating to the product
manufacturers, such as after sales services, replacement of faulty products, sourcing of product
related accessories, promotions,
When it comes to such situation like distributions there will be some disadvantages to because shield
our sealax production may be having some effect from external parties so we need to be close with
retailers as possible and motivate them because they are the one who can promote your product well
among the customer

3.3 Promotion plan

SHEILD
THE ALL ROUNDER
Promoting a product plays a key role in fulfilling the marketing mix. Along with product, price
and place, Promotion is an essential factor when it comes to marketing of a product. To build a
promotions plan is not a easy task for that they need to do researches first they need to build a
plan for short term for that have to build a plan by targeting first 12 months. In this case sealax
is introducing a new product so they have to come up with new strategies and also they need
to stabilize their own branding image because their business has a decline of 30% of sales in
past 3 years because of intense competition from larger sealer manufactures such as WATTYL,
CROMMELIN and SCOTCHGRAD. So Sealax needs to be more specific and targeted in their
business.
Sealax needs to works on introduction promotion on the SHEILD their new product for that
first they needs to basic objectives for that new product requires the target markets to be
adequately informed of the products existence and benefits. So that Sealax needs to inform
and educate customers about the product, influence through promotion and remind again and
again about the product to customers. To complete those task sealax need to create awareness
and interest about the product. Need awareness is already created by factor of effecting
outdoor furniture by rusted and faded so Sealax now just need to create interest among people
by giving strong publicity and promotion, they can do that by targeting loyal customers as
targeting and promoting and analysis them according to that Sealax can create a long time
promotion plan and also from that Sealax can educate their customers about the SHEILD and
also they can position the brand name and image as well. Then it will be helpful to maintain
public relationship among seller and buyer so through that Sealax a maintain top-mind
awareness to, they can maintain customer loyalty and build more loyal customers and also
when they able to do that every one will know when it say The All-rounder its about
SHEILD the product from Sealax paints.


As mention earlier first they have to target first 12 months for the promotion plan for that they
have to follow following procedures
1. There are specific objectives basic objective of Sealax should be sufficiently
detailed for the planning of the promotion mix. These objectives could be expresses
more specifically determined the best promotion methods. Example- trials using
loyal customers
2. Developing the IMC- Sealax promotional campaign is for the next 12 months and
during this period multiple objectives are required. Mass awareness and interest,
encourage evaluate & trial with customers, build buyer seller relationships
reposition brand. Every promotion method has its limitations as well as advantages.
Using a collective mix of IMC is ideal; Sealxa can cover all key sages of the product
life cycle.
3. Use of informal communication
Face Book page for Sealax
Twitter page for Sealax (the CEO could post the tweet of the day to keep
contact with customers and customers can tweet to Sealax about their
problems to )
Instagram encourage customers to participate in competition the best
house with Sealax Picture of the month
Gmail can communicate and give orders through E-mail facilities.
Youtube profile Sealax can upload documentaries regarding their new
products and correct way to use it.
Sealax App a running app that indicates the instructions and colure meter to
check how much need paint have been faded according to standards


4. Keeping with budget- marketing Budget is very important for Sealax if kept within
the means of the budget. In turn could help Sealax during pricing decisions. Plan is
also to compete with the competitors and give customers preferred range of price.
However Sealax is planning to launch the new product range the cost of marketing
would reach stars. The Marketing team is requesting the rest of the divisions to
provide help and understand why we are expending such an amount. This way its
easier for the organization to achieve its long term goal.
Dont be disparaged as the revenue will not come in directly after the campaigns


Promotion methods
To compete well in field its necessary to have good promotion methods by having good
promotions methods only can attract customers to your product and also you can well educate
customers about your product.
1. Advertising
Advertising is very common and effective method that lot of business today, but the key
of successful advertising is that company has to choose the right way to address their
customers in proper and clear way. When you paying of non-personal presentation and
promotions of product you have to make it valuable.
Popular advertising media includes television, newspapers, magazines, radio, cinemas,
billboards and etc
Sealax we can use following methods to give the massage to customers. They have to
analysis their customers behavior and advertise well like what time all they are in one
place and easy and accurate way to get to them. Advertisements in television is the
easiest way to reach your customers but in Perth lot of people are having a busy life
style so for that using billboards and radio would be more easy and it would be more
cost effective also because busy Perth people wont get a chance to see television so
they can see billboards when they travelling presenting it in attractive way will helps
customer to remember about the product. They can do other method such as
advertising in paper magazines to go more among the public because they only have 2
years to come on a good stabilized position in the market.


Billboards of SHIELD the Best All-rounder

Magazine Advertisements on SHIELD the Best All-rounder


2. Publicity
Only one coat that all it need!!
Simply the Best All Rounder

Publicity is the grater tool of promotion by because it can be more cost effective in such
a situation that Sealax doesnt have much gain power due to the loss of past 3 years
they need to use more business to customer relationships to build a good number of
buyer to their product. Publicity it a tool which it very important its about product
information appearing in mass media so it goes to large amount of people so Sealax
need to plan it well to be success in this product.
Publicity it may be free but getting it would be hard people believe media is
independent so they believe whatever media says. Sealax can give their massage
through having press conference also with media conference and giving key objectives
about the use of SHEILD the new all rounder sealer, what are the benefits of using
this, how long you will be protected, how much would it be. When they giving this
information they should give those in more affricative way to reporters because if they
satisfied only they can write more good and strongly recommended to the consumers to
purchases it, also Sealax can release their product by having a press release that attract
more customers and also they can participate on a talk shows and educated more about
the product also Sealax can give a chance to audience to ask questions and answers they
by doing that they can build their trustworthy more and more. To do all that Sealax
need to build a good and strong press/media relationship by offering sponsorships as
they can afford


News release about SHIELD

Sponsoring public media by SHIELD

Talk show programs about SHIELD


3. Personal selling
Personal selling is very useful for Sealax because they are already doing with some of
their customers they provide specialty sealers to doorstep so they need to improve it and
develop better human resources
The Mentioned in the survey the following trends that insist the importance of personal selling
and in house selling,
1. No single sealer dominates all outdoor categories.
2. Around 80% of the respondents have at least sealer of Sealax ( can personally encourage the
exchange methods give your old sealax buckets to the nearest Sealax store or retailer and get
a 25% discounts for it
3. The criterias of choosing an All Round Sealer is also mentioned
4. for most recent purchase 60% of the respondents said that the brand name and style
decisions were made WHILE AT THE RETAIL STORE!
(In store promotions and personal selling will up the ante for Sealax if followed methodically)
Sealax can participate in
field selling
Direct marketing activities using the Perth based representative as well as other sales
agents and sales representatives.
In store retailing
The process of personal selling process should be practiced accordingly
1. Prospecting (collecting data from stores, loyal customers etc.)
2. Approach (well-dressed well trained Sealax sales staff)
3. Present face to face demonstrations , let the customer experience it first-hand (make
them try on the furniture, giving a test turn, show new design features )
4. Closing customers may give 100 of reasons to post pone the purchase but get feature
information to persuade them in the near future before they forget the existence.
5. Follow up maintain the relationship further. To avoid cognitive dissonance provide
them proper after sales practices.


4. Sales promotion
Using sales promotion is connecting to the customers or retailers to purchase the
product by using lot of promotional activities other than publicity, advertising and
personal selling. This is very handy in short term and aimed to produce immediate
results. This would be costly but its more effective

Push Objectives & Strategies

A push promotional strategy works to create customer demand for your product or
service through promotion: for example, through discounts to retailers and trade
promotions. Appealing package design and maintaining a reputation for reliability, value
or style are also used in push strategies. Push indicates sales promotion related to sales
where the manufacturers or suppliers promote the product to retailers. Push
promotional strategies also focus on selling directly to customers, for example, through
point of sale displays and direct approaches to customers.
Provide Incentives to retailers
We would give incentives to them on the quantity of stocks purchased. For every 10
units of 1Litre spray cans purchased the retailer gets 2 units of 1 liters cans free.
Shelf Location
In the case of Sealax, the company could draw customer attention by highly promoting
their product at supermarkets, malls etc. In order for this to succeed Sealax would have
to negotiate with the relevant authorities to allocate a shelf location that is likely to
catch the customers eye whilst being a secure one. We have decided to pay each store
a stocking fee to secure a better eye catching shelf.
Motivation to Sell
The biggest concern for Sealax or for any other company in a business situation is to
secure its employees. Retail staff would also come under this category. It is the human
resources departments duty to make sure that the retailers have well trained salesman.
In order for these salesmen to succeed they need high motivation and as result Sealax
should consider to motivate retail staff to sell more Sealax products.
As a move to retailer salesman motivation we have decided to gift Vouchers to
salesmen who have closed sales with 150 liters.


Pull Objectives & Strategies

A pull promotional strategy uses advertising to build up customer demand for a product
or service. Other pull strategies include sales promotions, offering discounts or two-for-
one offers and building demand through social media sites such as YouTube.
Capturing the Customers Attention
When promotion is taken into consideration it is vital that any product have a good
packaging. In Sealaxs case their promotion department needs to come up with a
suitable package to draw customer attention. This strategy will help the business to
maximize their sales revenue as the packaging of a product can be very influential. And
also we have decided incentives which are already mentioned in Push strategies that
would make retailers stock our products at an eye catching shelves location in their
stores. These strategies would draw more customers towards this product and also this
would make easy for customers to know about the product.
Product Trial
It is a smart move for any business that invents a new product to always try a test
market. This involves selling the product on a trial basis. Most customers would not be
willing to try a new product when they are quite comfortable with their old choice. And
in this situation it is important for Our Company to try and persuade the customers to
try our product.
In Sealaxs situation the business can target the Perth region or a specific region first.
The introduction of a trial product would make customers try and know our product and
also will help bring out negatives of the product through customer and retailer feedback
and also give a rough idea to the business on the sales activity.


3.4 pricing strategy

Out of the four marketing Principles the only Principle that generates revenue for the Sealax is
the price. Price concepts can be used as an indicator of quality (since Sealax is a specialty
product its very important to create and maintain the image of quality deliverance), Flexibility
of the Marketing Principles (the only Principle that can be directly and easily adjusted).
Sealax as a specialty product should invest on non-price competition. This was the demand is
inelastic; customers are less price sensitive more brand loyal less price loyal and good long term
marketing strategy to follow, as price competition is only short term.
A good valuable change to the product can sky rocket the sales (demand). This indirectly
promotes only a few direct competitors. With the Sealax new space age innovative product line
Non price competition is easily sustainable.
Before making pricing decisions Sealax should consider these factors mentioned below. As price
can make or break a product. The only way of generating revenue is trough price; a great in-
depth analysis is important.
Factors are:
Internal factors target market- marketing mix elements- and pricing objectives
External factors- trade demands buyer response- competition legal consideration-and other
environmental factors
If these facts considered when making pricing decision it have guaranteed the decision is the
right one.
Pricing method
This is pricing in the real-world. Price is not set using any scientific formula. There are simply
too many factors, supplier has better control over pricing if it product are directly to consumers
or if they are sold through agents or brokers. In this scenario Sealax using retailers too so they
have to use both methods to have a good profit in the market.


Two main pricing strategies which are,
1) Recommended Retail Pricing
2) Mark up Pricing
Recommended retail pricing
Recommended retail pricing means the price that the consumer pays must be of great concern
to the manufacturer. The recommended retail pricing law allows retailers to change the price
much lower than the RRP in order to compete against the competitors whereas there isnt any
direct competition Sealax would be able to sell the product at the maximum recommended
retail price. Therefore Sealax could charge a good reasonable price which they could cover all
the cost, expenses and gain a good profit. Because of this pricing strategy the manufacturer
Sealax would know the exact price of the product in the market.
Cost of a 1 liter Spray Can- $ 3.00

Price to retailer
Price = Cost + (Cost*Mark-up %)
Price = $4.50 + 4.80 ($9.30*330%)
Price = $9.30+30.69
Price = $40

Price to Customer
Price = 40
Commission 11.11%
Selling price 45
RRP 50

Cost of a 4 Liter Container - $ 12.00

Price to retailer
Price = Cost +Overhead per litre+ (Cost*Mark-up %)
Price = $18 +19.20+ ($37.20*21%)
Price = $37.20+7.80
Price = $45

Price to Customer
Price = 45
Commission 6.25%
Selling price 48
RRP 48

4.0 Projected Income Statement
SEALAX COMPANY PROJECTED INCOME STATEMENT FOR YEAR ENDING 2012
Sales

1Litre (45*35000) $1575000

4 liter (48*3750) $180000

Total Sales $1755000

- (Cost Of Sales)

1 liter (9.30*35000) $325500

4 liter (37.20*3750) $139500

Total Cost Of Sales $465000

Gross Profit $1290000

-(Expenses)

Administrative $30000

Travel $20000

Sales Representative $50000

Promotion $140000

Total Expenses $240000

Net Profit $1050000

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