Вы находитесь на странице: 1из 12

Marketing Plan : NewHeights

Prepared For: Dr. Sibichan K. Mathew NIFT MFM : Sem 1 / Marketing Management

Presented By: Omar Ahmad Rana Garima Aanchal Ranu Soni

Reet Shukla Sonari Bhagwan Sri Ambarish

Executive Summary
NewHeights is a start up organization that will be providing adjustable hight increasing insoles to customers for all standards of footwear: dress shoes, casual shoes, athletic shoes, boots, etc. which increases ones height up to 1 in. along with a detachable shoe insole attachment to further augment ones height to 1.5 in. This market has been largely ignored in India and there is an increasing demand for these products as indicated by market research, which means that there is a golden opportunity to tap the indian markets in this sphere. These insoles are adjustable from 1 to 1.5 inches by adding or removing the 0.5 detachable insert while comfortably concealing the lift. By augmenting the height it will help individuals discover a newly found confidence and increased self-esteem. It saves large amounts of time and money on height exercises, human growth hormone, limblengthening, gimmicky pills and offer the perfect alternative to clunky, unattractive elevator shoes or uncomfortable heel lifts. They can be worn for an interview, a casting, social event, or simply to improve the quality of your every day life. NewHeights will achieve fast and significant market penetration through a solid business model, long-range planning, and a strong management team that is able to execute this exciting opportunity. NewHeights will sell its products through its Web site. This direct-to-the-consumer approach will allow NewHeights to achieve higher margins and maintain a close relationship with the customers, which is essential for producing products that have a true market demand.

Situation Analysis
NewHeights is beginning its first year of operation. We realize that our marketing activities and strategies are critical factors to the success and profitability of our business. NewHeights will offer adjustable height increasing insoles that elevate the users body with the use of specifically engineered design, making the consumer appear taller. The basic market need is for a hight increasing insole with new comfort technology at a reasonable price. Market Summary NewHeights has obtained valuable data regarding the common attributes of its customers. This information will be used to determine the specific needs of it customers and the most appropriate method of communication with its targeted segments. Target Markets Gender: Male Age: 15-30 Income: Rs. 10,000 or more Market Demographics Our marketing activities and strategies will be targeting customers with the following geographic, demographic and behavior factors. Geographic By utilizing the broad reach of the Internet and India Post, NewHeights can provide its product to just about anyone throughout India. Demographics Gender: Men Age: 15-30 Income: Rs. 10,000 or more Behavior Factors

Web savvy individual who is open to the idea of making an online purchase. Social person who enjoys to go out and cares about his appearance.

Market Needs NewHeights will offer adjustable height increasing insoles to its customers. However, it is important that NewHeights fulfill the following benefits that are most valued to its customers: Quality: NewHeights offers insoles made from high quality materials that have not yet been used by any of its competitors. Design: NewHeights will offer an ergonomically friendly design for everyday long lasting comfort. Competitive Pricing: The product will be competitively priced relative to its competitors. Customer Service: The customer will be impressed with the level of service available to them though a website. Guarantee: All sales come with a 15-day money back guarantee. Accessibility: NewHeights will ship to any national address. Privacy and Security: The website will be equipped with the best online security software available in the market. Market Trends The market trend for this industry is for increased quality and comfort. This trend is fueled by the Internet and ability for anyone anywhere to access an online retailer and order from anywhere at anytime. Market Growth This particular market is still recovering from worldwide economic downturn, because many of the goods in the Footwear Accessories market are non-essential in nature, this industrys performance is highly correlated to the economy. During economic downturns, consumers have less discretionary income and will buy fewer goods from these companies. However, the future is looking bright with a lot of room for new players, especially in the Indian market. SWOT Analysis

The following analysis will highlight the key strengths and weakness of NewHeights internal environment, along with the opportunities and threats of its external environment: Strengths Strong relationships with private label manufactures that provide high-quality products. Low overhead cost and low barrier of entry Direct consumer communication Ability to monitor and track consumer behavior while on the site Weaknesses Lack of awareness due to the fact that NewHeights is a start up company with only an online presence. No proven strategy for developing online visibility Search engine unpredictability High customer expectations Opportunities New technologies in PPC marketing for better efficiency 24/7 business Strong B2B networking A versatile business model within a growing industry Threats Competition due to easy entry into the market A significant increase in shipping costs Packages being lost or stolen Customers fear of fraudulent online retailers Competition NewHeights is creating its own market. However there are a few companies worldwide that promote similar products, but currently none of them are targeting the Indian market and they dont come close to using the high quality materials used in NewHeightss products. Product Offering As of right now, NewHeights offers only one product; an adjustable height increasing insoles that elevate the users body by the use of specifically engineered design making the consumer appear taller via the Internet. The insole will include a 1 inch insole along with a .5 inch attachment and will feature memory foam technology along with odor absorbing technology. The insoles will be available in two sizes; Mens 4.5 -8 and 8.5 12. After year one, additional products will be offered.

Keys to Success An easy to navigate website, high quality products, efficient operations and total customer satisfaction will ensure long term success and profitability of our business. Critical Issues NewHeights is still in the speculative stage as an Internet-based retailer. Its most critical issues are to: Expand at reasonable rate Build brand awareness Monitor and track customer satisfaction

Marketing Strategy
NewHeights will take full advantage of what new Internet marketing technologies have to offer. We will also spend some effort in engaging in outdoor and magazine advertising to provide general awareness about the company and its products and direct them to the website. Mission NewHeights mission is to provide the customer with a high quality adjustable hight increasing insoles using the Internet to lower the consumers cost and increase satisfaction. Marketing Objectives Maintain positive, steady growth each month. Increase the consumer database by 30% each year. Generate a 20% increase in click-through online traffic for the website each year. Financial Objectives Experience a double digit growth rate for the first three years. Reduce fixed costs by 5% by year end of year one. Target Markets

Our basic focus would be a person who can afford to buy a shoe, because our product is one which can fit into most shoes, thus the basic requirement would be possessing a shoe. The next and equally important target group would be a male between the ages of 15 to 30. We will also be focusing on an individual with the household income of Rs. 10,000 and greater. Positioning NewHeights will position themselves as a top quality hight increasing insole online retailer to the Indian market. NewHeights is the first company to carry such a product for the Indian market, which makes positioning ourselves in the marketplace a fairly simple task. Strategies NewHeights marketing strategy will seek to create customer awareness regarding the product which is offered, develop a solid customer base, and work toward building customer loyalty and referrals via the Internet. The message that NewHeights will seek to communicate is that it offers a product that was not available before in the Indian marketplace and the important fact that it will assist them in looking taller without much effort. Another method of communication is through advertisements in the national magazines. The advertisements will be placed in the those magazines whose readership is primarily of our target audience. Therefore, our strategy is to fulfill these various customer needs while minimizing possible friction between these customers. That is our focus. Marketing Mix NewHeights marketing mix is comprised of the following approaches to product, pricing, place and promotion: Product: An adjustable height increasing insole. Pricing: NewHeights pricing structure will slightly undercut the competitors brands. Place: NewHight can ship our product to any national address with the use of India Post. Promotion: Internet-based marketing as well as outdoor ads and magazine adds such as Maxim, FHM and Mens Health which are typically read by our target group will be used. Marketing Research During the initial phases of the marketing plan development, several individual interviews were conducted to help gain insight into the minds of our customer and some of their decision-making processes as they relate to such a purchases. The

information collected from the individuals have been extremely helpful to NewHeights and help justify the business model.

Financials
Sales volume per period (units) Sales price per unit Fixed costs per period Variable costs Total costs Total sales Net profit (loss) 0 100 200 300 400 500 600 700 800 900 1000

125

125

125

125

125

125

125

125

125

125

125

35,00 0

35,00 0

35,00 0

35,00 0

35,00 0

35,00 0

35,00 0

35,00 0

35,000

35,000

35,000

0 35,00 0 0
35,000

7,500 42,50 0 12,50 0


30,000

15,00 0 50,00 0 25,00 0


25,000

22,50 0 57,50 0 37,50 0


20,000

30,00 0 65,00 0 50,00 0


15,000

37,50 0 72,50 0 62,50 0


10,000

45,00 0 80,00 0 75,00 0


-5,000

52,50 0 87,50 0 87,50 0 0

60,000 95,000 1,00,00 0 5,000

67,500 1,02,50 0 1,12,50 0 10,000

75,000 1,10,00 0 1,25,00 0 15,000

Break-Even Analysis (Graph) The break even analysis indicates that Rs 87,500 will be required in monthly sales revenue to break even point.

On X axis is sales volume in Units and on Y axis is sales amount in rupees

Break Even Analysis (Table) Cost in Rs.


Sales Sales per unit Sales volume per period Total sales Variable costs Commission per unit Direct material per unit Shipping per unit Other variable costs Variable cost per unit 20 25 10 20 75 75,000 125 1000 1,25,000

Total variable cost Unit contribution margin 50 Gross margin Fixed costs per period Administrative costs Insurance Property tax Rent Other fixed costs Total fixed cost per period Net profit/ loss 10,000 5000 1500 10,000 8500

50,000

35,000 50,000 35,000 = 15,000

Sales Forecast The sales forecast is set to be on the conservative side. It is expected to steadily increase in sales as our marketing budget increases.
Sales (annual) Expected sales(units) Sales (in Rs.) Total cost (in Rs.) 2010 15,000 125 18,75,000 2011 25,000 125 31,25,000 2012 40,000 140 56,00,000

Expense Forecast The expense forecast is a vital tool to help keep the department on target. It will provide indicators when corrections or changes are needed for proper implementations of the marketing plan. Monthly Expense Budget
Marketing Expense Budget websites advertisements Printing material Total sales and marketing expenses 2010 Rs 3,00,000 Rs 80,000 Rs 5,000 Rs 3,90,000 2011 Rs Rs Rs Rs 15,000 90,000 7,000 1,12000 2012 Rs 20,000 Rs 95,000 Rs 8,500 Rs 1,23,500

Controls
NewHeights marketing plans main objective is to serve as a guide for the organization. It is most important that the following areas will be monitored to measure performance: Revenue and expenses: monthly and annually Website statistics Customer satisfaction Product development Implementation The milestones identify the key marketing programs. It is critical to accomplish everything in an orderly manner and on budget. Milestones
Milestone Start Date End date Nov 9,2010 Jan 17,2010 June 10,2011 July 10,2011 Budget 0 Rs 3,00,000 Rs 40,000 Rs 40,000 Manager Omar Ahmed Outside Firm Omar Ahmed Omar Ahmed Department Marketing Marketing Marketing Marketing Marketing plan Nov 8, 2010 completion Website completion Advertising campaign 1 Advertising campaign 2 Nov 8,2010 Nov 10,2010 Dec 10,2010

Contingency Planning Difficulties and Risks Problems generating awareness A sudden change of direction from an already established computer Worst-Case Risks Low website traffic Determining that NewHeights cannot cover its fixed costs Having to liquidate inventory to cover liabilities