The primary agenda of this market plan is for it to work as a strategy to guide the company on owe to supply the customers of Storage with quality yet affordable products. This brand of cleaning equipment will be produced and supplied In many different designs and colors that will be appropriate for both genders. Approximately half of the clients of the Storage brand, range between the ages of 18-34. These clients are ardent customers as they make the most purchases and are the company’s primary target.
Storage cleaning equipment is purchased more by those who dwell in the Northeast regions and Midwestern parts of the United States. This market plan souses on the introduction of a range of Storage environmentally friendly brand of cleaning equipment Into the United States market. The highest percentage of the company sale are as a result of making impulse purchases; hence this requires a good point of sale support team. The market is very competitive. There are a couple of competitors that offer the same products as Storage, for example, MM, M.
I. T and A. U. I. The experience that the firm has in the industry will be an essential asset in surviving in the already crowded market. The company has experience in distribution and has a vast distribution network ranging room household cleaning equipment dealers, retail outlets, and some supplies are made to major supermarkets in the cities. During the past ten years, the company has made a profit margin of approximately fifty million which is Just 10% of Storage’s sales over the same period.
The growth rate in the sales volume has been on a steady decline and was currently at five percent. It is anticipated that the growth experienced in the current markets will be minimal; therefore, the entry of the new Storage environmentally friendly project will improve Storage’s profits and growth rate. The Storage brand will be in competition with some established brands already trading in the market. The demand for Storage cleaning merchandise is anticipated to increase. This is founded on a recent survey carried out by the company on the market.
For such customers who look mostly on the aesthetically features of the cleaning equipment, so as to buy, distribution and display can play a significant role in impulse buying. The consumer can be contacted through six avenues (Kerri, 2006). We presently have contact to these customers through four of these channels making up 85% of all cleaning equipment sales. To reach customers best, it is wise to use such channels so as to maximize sales. Most cleaning equipment sales are made in the departmental outlet thus to maximize sales.
Storage will capitalize on discounts and supply to such stores to maintain availability and proximity of the product to the customer. For the moment, it does not make much sense to provide to the rural stores thus, this will be postponed till Storage and the Storage product is firmly grounded in the urban retail channels (Cohen, 2006). COMPETITIVE ANALYSIS There is fifteen cleaning equipment manufacturers in the market with and M. W, taking the prime share of the market holding 65% of the market. These are our primary competitors.
They have strong names and presence in the market, strong racketing and advertising skills, good and established networks and are also well spoken of in the cleaning equipment industry. The aspect of manufacturing of cleaning equipment that have a good futuristic sense is new in the market thus providing an opportunity for growth (Cravens & Pierce, 2006). Storage currently holds 85% market share in cleaning equipment distribution through the various avenues of supply. The manufacture of cleaning equipment that have a good sense of the future is slowly taking over the industry thus, a better venture as compared to our current brands.
Our experience in the industry, striation and advertising prowess, high-quality products, and design, affordability of our products will be a great boost as we venture into this market (Kennedy, 2006). SOOT ANALYSIS Strengths: Storage has creative personnel that can create new designs that can compete favorably in the market. The company is endowed with the resources and knowledge of the market having been in the industry for a while. This coupled with good networks, and real partnerships will see us take over the market (Lamb Et al, 2006).
Weaknesses: Currently we are not connected with any rural car dealers. The tourist concept of cleaning equipment is a new aspect both to the market and to us. Opportunities: Probability of growth of the market is high; Customers are currently into the futuristic cleaning equipment. The market for cleaning equipment has a great potential for growth. Threats: This is in the form of competition, the chance of new market entrants OBJECTIVE The combination of high-quality production of affordable yet durable cleaning equipment and an aggressive distribution campaign will see us breakable in three years’ time.
We should have acquired a market share of at least 4% in the first two ears this represents sales of 10 million dollars. Based on this market plan the venture will break even in the next three years (Cravens & Pierce, 2006). MARKETING STRATEGIES Storage will introduce the new Storage brands of cleaning equipment into the market through an aggressive and well-planned distribution campaign. The cleaning equipment will sell at affordable prices and will promise high-quality service. This will increase revenues earned thus facilitate the growth of both the brand and the firm (Kettle & Keller, 2009).