EmilyMackin/ Q10197290 /CCA103
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Student Name: Emily Mackin Student Number : (Q10197290) Faculty: Level of study: 1 Course title: Public relations and Communications Unit title: Marketing Fundamentals Assignment title: Marketing plan Assignment tutor: Marcella Campbell and Tim Mcclellan Word count: 2177 Learner request for feedback:
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EmilyMackin/ Q10197290 /CCA103
Dave Mackin building services Marketing Plan Company’s mission, vision aims and objectives
Situation analysisExecutive summary Micro and macro analysis I have chosen to launch a new media room building service for the company Dave Mackin building services, a medium sized building firm based in Hertfordshire and surrounding areas, including London. MARKET GROWTH MARKET SHARE HIGH Stars HIGH
LOW Question Marks
Fixing small errors
DIY type jobs
I have created a Boston Matrix in order to review the company’s current product portfolio From this review it can be seen that the company focuses mainly on cosmetic and structural building services which allows the product that will be introduced to provide a different aspect of the company. I will make the most of the company’s structural and cosmetic building experience to meet with the demands of the market of today’s technology saturated world. This will not only expand the company’s specialist product or service range but also increase their competiveness amongst other building service companies, allowing the company to stand alone from the more traditional services offered from the competitors. I will now conduct a swot analysis on the company and its performance so far.
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EmilyMackin/ Q10197290 /CCA103 STRENGTHS •
Loyal customer baserecommendations
Does not advertise- relies on word of mouth
Good reputation within the
Medium sized staff force- limits the
Hertfordshire area and beyond
amount of revenue that is able to be
Quality finish to jobs
earned at one time
Offers only the traditional structural and cosmetic building services
Advertising outside of the areas that
Other local building companies that
have already been penetrated by the
offer the same traditional services for
around the same prices
Opportunity to expand the work force
The triple dip recession- the poor state
to increase revenue
of economy along with the increase in
Opportunity to offer different , more
VAT leaves the market with less
modern services as well as the
disposable income- building work may
traditional building services to keep up
have to be put on hold or not done at
with the demand of the market
Although Dave Mackin building services has a lot of strengths within the company’s performance, it leaves a lot of room for development and opportunity. The threat of the economy is something as a company that they cannot resolve, however if a new product was introduced that could stand alone from other local building company’s the threats of losing work to other companies will be lessened. I see this company, although being a successful business for over 20 years as having a lot of room for growth. The weaknesses can all be turned into an opportunity, with offering new services , penetrating a further radius of the UK through advertising and eventually increasing the size of the work force in order to gain maximum revenue. The good reputation of the company is a factor that should be emphasised when launching the new product and through the advertising as this is a factor we should strive to retain.
Product Definition Page 5 of 12
EmilyMackin/ Q10197290 /CCA103 The new service that Dave Mackin building services will be offering to the market is the complete transformation and construction of media rooms within the home. This service will include the construction and preparation of a space within clients home where in which it is fitted with everything that is needed to be turned into a cinema room / media room including the technology, furniture and cosmetics of the clients choosing. Living in a technology saturated world, the need for this service is heightening and although we may be currently going back into another recession, the target market for this type of service would be that off higher wealth, this then would create a hype for having media rooms within the home and many ranges of people will want for this service for simple self-verification and a sense of achievement. People that do use this service will feel pride in their modern home that other people may not have. This is according to Maslowâ€™s hierarchy of needs.
Competition There are no building services or specialist fitters that offer media room fittings within a 40 mile radius of Hertfordshire. This may suggest that within this radius, the market will be solely using Dave Mackin building services to construct and fit a media room, unless the price of the other company is significantly lower. This company, Berkshire AV specialists, solely specialise in fitting media rooms. This company was the only company that came up in various searches of media room fitting services. This would be the main competition for Dave Mackin building services when they release their new product. As the competition is a specialist company, this may pose a threat to the Dave Mackin building services as the quality of work will be high. However, as previously seen in the SWOT analysis , we can see that high standards of work and quality of finish is apparent throughout the work of Dave Mackin building services which is also reflected in the loyal customer base and the fact that the company brings in a good revenue relying on recommendations alone. However, the main competition for the company at the present time is Wingrove builders who are a similar sized company to this one and offer the same traditional building services. When the new service or product is released for the public to have done to their house, this competition will pose less of a threat. Keeping a good reputation will be key in staying ahead of the competitors, as the product rapidly gets more popular, other building companyâ€™s may invest in offering similar services, Dave Mackin building services will then need to rely on the fact they are the first company to offer the service within a 40 mile radius oh Hertfordshire and rely on the quality of work and by then, their experience in this service.
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EmilyMackin/ Q10197290 /CCA103
Segmentation, positioning and targeting The segmentation of the market divides the market into different groups of customers with similar products or service’s needs. The market can be segmented into 3 categories Mass Marketing- One product for the whole market Selective Market- several different segment with a separate marketing mix for each Niche Market- focus on a small part of the market
The new product offers a mass market where there is only one product for the entire marketobviously the final result will be aesthetically different when finished, yet the content of the service is the same. Although the product will be the same for the entire market, the target market will vary as many people from different walks of life would want this service for different uses.
The customer using this service would probably be of the age range 30 and above. This is because they will be home owners and may have savings or access to a large sum of money to afford this
service and accessories. The life stage of the customers will range from bachelor stage all the way through to Empty nest 2. This shows how popular the want for this kind of service and technology would be to a vast market.
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EmilyMackin/ Q10197290 /CCA103 Geographic
The consumer will be located definitely within the UK , and more than likely to begin with, in Hertfordshire and surrounding areas.
The individuals will take pride in their homes , spending a large amount of money on this service to improve their homes, they are also likely to have large homes, with a spare room that can be transformed into a media room. The consumers may also have a passion for technology , paying for top of the range electronics fitted within the
service. Pride in the house and belongings. Happiness and content through entertainment for themselves and the family. Providing for family, would give the consumer happiness and pride within their selves.
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EmilyMackin/ Q10197290 /CCA103 Behavioural
Certain places in Hertfordshire and the surrounding areas may show a demand for this servicericher areas or neighbours trying to keep up with each other. This can be monitored
by records of all work done. The consumers more than likely will use social networking sites as it is a popular form of ‘showing off’ their lives to their friends etc. People who have pride in things usually want to share these things. Advertising on social media should be considered.
Brand Positioning Brand positioning is extremely important as the consumers will be researching media room fittings when they feel they are interested. The company’s website and brand should be recognisable and easy to find when the consumers begin to search for this information. Adapted from O’sullivan (2004:169)
STAGE 1- Identify key product characteristics Quality fitted and finished media rooms High end technology fitted within the media rooms
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EmilyMackin/ Q10197290 /CCA103 Modern design and quality materials used Prestige appearance Friendly and efficient service Reputation of high quality work
STAGE 2- Draw a perceptual map A perceptual map will show the positioning of other building services or specialists
media fitting rooms which the consumers may prefer to use to carry out the service over Dave Mackin building services. These could be high price and high quality, which may put people off, or low price and low quality which will also deter people. Dave Mackin building services should aim for a high quality middle price service to stand above the rest encouraging the consumer to choose the company for the service.
STAGE 3- Decide a competitive strategy Advertise on the internet and on social media sites with a portfolio of best quality
work to get a high online presence. Change the company name to Dave Mackin building and Media room fitting services
to look more prestige than a normal building company To position the service on the perceptual map of medium price, high quality to
defend the company against competitor threat- eventually when a large portfolio of work has been successfully completed and positive feedback given , the price can be raised .
Prioritise both jobs within Hertfordshire and outside of Hertfordshire. This way name of company will spread further than a 40 mile radius whilst ensuring not upsetting loyal customers from previous services.
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EmilyMackin/ Q10197290 /CCA103
STAGE 4- Design product attributes and associated imagery Create a recognisable logo that looks both smart and easy to read Create an online portfolio of previous work done by the company Create website and social media pages with matching colours and logo imagry- so
the brand is easily recognisable
STAGE 5- Sustain a competitive advantage Do this with quality of work alongside the medium range prices High quality work will both sustain a competitive advantage through
recommendations, existing customers and portfolios.
The Marketing Strategy-
The marketing mix is a set of tactics that help to sell the product or service to its intended market.
‘The total sum of all the products and variants offered by an organisation.’
(Brassington and Pettitt 2000:273)
The product line of Dave Mackin building services has a limited mix of product width as the services can are fairly limited to renovations, structural and cosmetic building and now the new product of media room fitting. The product line length however is fairly long as there are
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EmilyMackin/ Q10197290 /CCA103 many different services that can be offered within the categories of renovations, fittings and structural and cosmetic.
Promotion- ‘The idea that by attracting customers attention, arousing their interest and stimulating their desire it is possible to encourage the action of purchase’ (O’sullivan & Hill 2004:299) To do this the company will advertise through a high presence of social mediaoffer free consultation with builders, send the catalogues of products that can go within the media room and the furniture ideas, and also send the possible customer a portfolio of all previous work.
’sets of independent organisations involved in the process of making a product or
service available for use or consumption’ (Stern & El Ansary 1988) This product will be distributed and completed as and when needed. The company may need to hire more staff once the service gets popular as it would be undesirable to leave the consumer waiting for the service as they may go to a competitor instead. Consultants would need to go to houses regularly to book people in and go through the options of technology and furniture choices as well as the builder and if needed, the architect. This should all be completed within one month of the consumer wanting to take part in the service.
PriceThe prices will range from around £25,000 too £40,000 depending on the quality of products within the media room ,the size of the room and the construction that may need to take place before the room can be finished. This allows for a lot of movement and negotiation with the consumer.
Cash at start of month Deposits + Materials Technological materials Final Payments +
Jan 20,000 10,000 10,000 15,000 30,000
Feb 26,600 10,000 10,000 15,000 30,000
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March 33,200 20,000 20,000 30,000 60,000
April May June 46,400 59,600 67,200 20,000 25,000 25,000 20,000 25,000 25,000 30,000 45,000 45,000 60,000 75,000 75,000
EmilyMackin/ Q10197290 /CCA103 Wages Cash at end of month
Here I have created a cash budget on a prediction of the media room fitting service growth and profit within the first 6 month of its release. The company will already have money from its existing services and this is the reason I have started withÂŁ20,000 cash at the start of the service which will help as grounding to make profit on. The deposit I have based on a ÂŁ10,000 estimate that would be one quarter of the cost of final payment. This covers the estimate cost of materials. I have based the wages on 3 employees earning ÂŁ140 a day and working for 5 days a week. I also have estimated that for the first two months there will only be one job going at a time because of the small amount of staff. In March I have increased the employee force to 6 members of staff in order to allow for two jobs to be taking place at the same time, and then again in May I have increased the staff by 2 more members who will complete one smaller job of half the price as well as the two high end jobs on top. Obviously, over expenditure on things such as damaged materials or under estimation of work should be taken into account, as should the over estimation of material costs.
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