New Product Marketing Plan - Case Study Example

New product marketing plan Table of Contents Executive Summary 3 1.0 Introduction 4 2.0 The Service 4 2.1 Mission Statement 4 2.2 Objectives 5 2.3 Positioning Statement 6 3. Market Analysis 6 3.1 Benefits and Features of M-phone 6 3.2 Shortcomings of many money transfer services and providers. 7 3.3 Factors that will affect demand of M-phone: Demographic Factors 8 3.4 Macro Trends that influence a business 8 4.0 Competitor Assessment 9 4.1 Competing Industry 9 4.2 Threats and Barriers 10 4.3 Competitive Forces 10 4.4 Competitive Factors 10 4.5 Advocacy Measures 11 5.0 Marketing Strategy 11 5.1 Marketing Objective 11 5.2 Marketing Strategies 13 5.3 Service 13 5.4 Transaction fee 14 5.5 Distribution 14 5.6 Promotion 14 6.0 Forecast and budget 15 6.1 Market strategy 15 6.2 Marketing Expenditure 15 6.3 Expense Forecast 15 6.4 Marketing Expense Budget 15 7.0 Implementation and control plan 19 7.1 Marketing organizational chart 19 8.0 Contingency plan 20 8.1 Business Risks 21 8.2 Mitigation strategies 21 References 22 Executive Summary Technology is changing the way we do business, where we live and how we communication in the World. The phone has systematically transformed people’s way of life and the business world. For the purpose of this market strategy, Money –Phone dubbed here as M-Phone will use the exploits of phone services to deliver convenient, efficient and timely money transfer. Our clients will require getting a Sims-card which will register with our company. The account will consist of selections for depositing, withdrawing, pay bills and buy products. This will facilitate a phone account that clients will use everywhere, and at any time to receive, send and use their money. This marketing plan is set to exploit the trend of other competitive players in the finance industry. As people have become mobile, dispersed, and active an efficient mode of money transfer is needed. Much time people get it hard to use cheques carry cash around with them or give money by hand. Increased products on the phone have sparked the adoption of suitable mode of money service, rather than the traditional banking system. There are other places that bank services are unavailable and not all people are competent to use them. M-phone has come to provide efficient, simple and affordable mode for this. Australians has seen much transformation through phone usage. This has attracted keen focus on its services which are widely adopted and efficiently used by people of all age- brackets. The money transfer service focus on internal clients from Australia. M-phone will be brought in the market through media, online advertisement and targeting nationwide industries dealing with money transfer. The planned information will be communicated to establish our customers. Multiple communication strategy with outsiders will facilitate the hosting and implementation strategy. The executive will use the marketing resources to define and establish new niche for M-phone service market. Service design and strategy will focus on intensive communication and alliances to become leaders in the services. The marketing plan expects 10, 12 and 15 billion dollars revenue in the first, second and third year consecutively. Profits are expected to rise steadily for the three years. We expect to attract an employment 200, 000 people for the same time period. This will be through indirect employment, the economic activities in financial transfer and services. Individual partners and other private investors who will liaise with us are expected to grow as collaborative policies will make it efficient. National authorities, private entrepreneurs and general communities support and motivation will develop the service. Economic and social benefits are therefore expected to increase. 1.0 Introduction The people’s lifestyle is subject to increased dynamism due to numerous innovations. In this regard, there is increased demand for comprehensive marketing strategies for money transfer service. Moreover, dramatic change, global alliances, and customer demands are occurring often and marketing plan and procedures have to be effective. However the following marketing plan for three years will address the structure, strategy and ways for M-Phone to achieve a competitive position. 2.0 The Service 2.1 Mission Statement The M-phone mission is to provide timely financial services for all our customers everywhere and at any time. It aims to use the available technology to offer money services to clients in a convenient manner. To endeavor our services new innovations will be incorporated to make the services dynamic and inclusive. The services target a wide population in Australia and will target to alliance with international companies to meet the needs of disperse communities. We will enhance personal satisfaction, offer connection and implement clients’ aspirations in an objective approach. Our services aims to be the better options based on four aspects including; place, time, varieties and inclusiveness. Our credibility will be guided by strong ethics, philosophy and objectives of “customer services beyond expectations”. 2.2 Objectives Facilitate convenient services that meet our clients’ needs and aspirations in a dynamic, technologically evolving world. To get a wide market through networking with individuals, groups, product and financial service sectors therefore offer services to 40% of Australians in financial transactions. Achieve 60% profit as a target mark in the third year in service. Facilitate a dynamic branding through continuous introduction of services and make them desirable. To promote an increased growth in assets, operations and geographical locations to attain $15 billion revenue by the third year M-phone service is money transfer service that can be used in various ways. Its services are easy to be used by a wide population without conventional challenges faced in other financial services sectors. Clients using M-phone will require an activated SIM card with Personal Identification Number (PIN) and secret password given at registration. The registered number can be given to many people who can send, receive and deposit money in that account. Registrations requirements will require a national identification card, passport or official working identification card which will be used in transaction. Through our agents who are officially registered our customers will deposit and withdraw money in almost 300,000 outlets nationwide. The account will indicate balance, and give immediate feedback on withdrawal or whether the money has been received. 2.3 Positioning Statement M-phone as money service transactions via phone is oriented for timely, convenient, inclusive and dynamic service (Jing & Junhai, 2009). Wide application in money usage and dispersion in every region and shopping centres assure nearness and availability of services to all and thus inclusive. 3. Market Analysis 3.1 Benefits and Features of M-phone M-phone is the best example of service that came at the right time and it implementation was just right. The service paves a way of salvation for Australians as far as money transfers are concerned. It compresses time and distance between individuals who would want to exchange or send money as well as between bank accounts and an individual. M-phone targets all individuals within the country from employers, working people, individuals that work far from home as well as business people. People can transfer money from their phones to other person’s phones right from the comfort of where they are. In this regard, M-phone can be used by employers to pay salaries and wages to the workforce. Also, those who intend to make purchases without cash at hand will benefit. They just need to use their mobile phones to withdraw money right from their bank accounts and transfers it sellers’ phone directly. M-phone vision is to be a world leader in mobile phone money transfer service by the year 2015. Fingers behind this project have been overly engaged to ensure the vision come to pass, right features and quality to the clientele. Reasonable prices to the service, availability as well as convenience add to the list of benefits of M-phone service. Australia`s population is expected to get to 39.50 million by 2050. This means a specific population increase each years indicating more sales for business with increase in years (Betts, 2010). 3.2 Shortcomings of many money transfer services and providers. M-phone comes with extra benefits in comparison to most of current money transfer service. Many money transfers services have come with difficulties that people had to endure in course of the getting the service. Firstly, many of these services are time consuming. For instance, long queues in the banks use time which could be used elsewhere. They are not very reliable in the view that one has to go to the bank or a specific office to be served. Still, both the receiver and sender have to have bank accounts (Edwards, A., & M. Ureta. 2003). On the other hand, M-phone has come at time that the world has become busier and time is of essence. This money transfer technology which is based on mobile is reliable and convenient in the sense that it is fast and one can it use anywhere any time as long as they have a mobile phone. People can send money right from the comfort of their home, office, and vehicles in both rural and urban areas. It is also simple to use and no specific skills required accessing the service as all major work has be done at the head quarters. 3.3 Factors that will affect demand of M-phone: Demographic Factors A number of demographic factors will affect the use and sale of M-phone services. Ethnically and racially, Australia is a diverse country with almost all world races represented whether by birth or via immigration. The 3 components of increase of population: fertility, immigration and life expectance are very evident here (Weston, R, & Qu, L., & Soriano, G., 2010). Between 2001 and 2009, fertility rate rose from 1.72 to 1.97 (Betts, 2010). Immigration has been on increase in Australia in recent years. In 2008 and 2009, Australia population grew by 2.1%. This was an addition of about 443,100 people of which 64% of this growth came from immigrants (Betts, 2010). Enhanced standards of living and health services have seen rise in life expectancy in Australia. Males and females have added 6.1 and 4.2 years respectively between 1988 and 2008 (Betts, 2010). This spells good and large market for the M-phone services. 3.4 Macro Trends that influence a business Macro trends are elements that shape opportunities or pose threats in any business. Arguably, both demand and usage of a service are determined by macro trends. Macro trends refer external factors that impacts organizations strategies’, performance as well decision making (Term Paper Warehouse, 2012). Each of these are indirectly affect a business and the company cannot control them (Kleber, 2009).To begin with, technological trends have resulted to e-commerce. It includes innovations, scientific discoveries, and economies of scale. The entry of internet, facebook, and development of telecommunication in addition to other social network services has resulted to changes in business world (Hurt, 2012). In this regard; any business must incorporate constant change to stay on the top of the game. Those that fail to answer the changing needs are likely not going to survive. To be relevant in future, current trends must be well analyzed to be able to understand future behavior of consumers. (Management Centre Europe, 2012). An organization will benefit from online communities as well as remaining networked. These technological trends have opened an opportunity for further online marketing of M-phone. The vast array of technologies will in turn significantly increase use of M-phone services. Moreover, a business is at affected by economic trends. These include change in levels of income; and more employment. Australian economy kept growing despite the Global Financial Crisis that has recently taken the world by storm. The economy got much refuge from the superannuation funds. Australia`s reforms of 80s and 90s helped her economy a great deal too. They resulted to long term economic growth and expansion characterized by low inflation (Temple, J., & McDonald, P, 2005). In turn many Australians can afford the service of M-phone hence its sustainability. 4.0 Competitor Assessment 4.1 Competing Industry The main industries offering the financial services are the banks and micro-finance which has for a time long time been accredited with money transfer. Most has penetrated in the services comprising the public-employees, private companies, international corporations and big national investors. They are avenues that provide wide services in depositing, withdrawing and payments in the country. With the use of ATMs which are convenient most people find it secure and efficient. They also offer loans and thus give them a competitive edge. Most micro finances are owned by members and therefore people exercise loyalty in making the most transactions through them. In this financial service sector M-phone will establish itself. 4.2 Threats and Barriers Some significant barriers are expected at entry and expansion stages. The service agents might be at some interior regions reluctant to offer M-phone services. This is due to little concrete information on them to support our goals, mission and objectives. Perceived insecurity from robbery, fraud and mistrust are other critical negative factors. This will delay registrations and early transaction. Government probation and strict regulations at the onset will hinder first expansion. 4.3 Competitive Forces M-phone competitive edge is derived from the forces of; different brand which lines with current technology, access to inputs such as affiliated agents who are readily available and mobile phone, service brand identity in uniqueness and convenience, established corporation with companies that offer services and their bank accounts and finally balance and concentration as our services will be efficiently established widely and in accordance to demands. 4.4 Competitive Factors One of the critical factors for success is customer’s concentration and M-phone service concentration. Customers information on use of the service is easy and in a form of “do it yourself” with simple procedures. With no switching costs required, customers will efficiently deposit money to use it at times of needs. The presence of substitute inputs such as ready people who would offer M-phone services alongside their business. The competitors might react by creating networks through individual agents and offer the same services. This would minimize the need for most people to withdraw their money from banks and micro finances to M-phone. There are factors that impede competition in financial service sectors in Australia. Government policies support the policies of bank and micro finance as stakeholders are able to advocate for favorable policies. They also tend to establish corporate agendas and most people will be allied to them. M-phone will be limited in the amount of transaction at once and therefore not convenient for major transactions. Insecurity is a sensible factor that limits M-phone transaction. 4.5 Advocacy Measures However the strategy will ensure through advocacy novel ideas and strategies that influence clients and organizations opinions and decisions are implemented. It will therefore be possible to change policies, regulations, laws, decisions and resource distributions in the service sector. It will ensure that such decisions are implemented. Directing such advocacy to policy makers; politicians, private sectors, and government officials will impact positively on services and clients. The employed techniques will also observe and monitor its policies to enhance public accountability. Other activities engaging politicians and bureaucrats will facilitate in policy dialogue. Other advocacy measure will include campaigning, building the stakeholders, and demonstrating the new ideas into action to be fully understood. 5.0 Marketing Strategy 5.1 Marketing Objective The marketing goal is to increase awareness of M-phone service. With the following corresponding objectives: Promote establishment of 200,000 agent outlets in Australia and transaction of 40% in financial sector. Develop web site for information and communicating M-phone service by January 2013 and participate in national TV, radios and newspapers constantly in 3 years Adequate market and situation analysis will guide the market segmentation. In accordance to Sarvary & Elberse, (2006) the strategy has identified significant factors for targeting and positioning the M-phone service. Providing M-phone services along the highways where long truck drivers are, schools and learning institutions for students. Young people are a major target as they comprise the very mobile age group and intensely use the new modes of services. Most agents will be sourced from town centre and major cities where consumer lifestyles would align with M-phone instant services. Middle income earners will also constitute of a large proportion of clients as they efficiently interact with low earners and multiple business. The public will be alerted two months prior to positioning of M-phone services. This will be through creative themes, motto and fantastic offer to orient our clients (Strategic Marketing, 2009). This will communicate the attributes of M-phone, quality, use, service user and cultural symbols. Having created the service image in their minds, the resulting agents and clients will set a good ground to launch M-phone services. The series of steps will ultimately lead to the strategy and objectives to be set and reviewed in the concrete sense. 5.2 Marketing Strategies M-phone service targets individual Australians aged eighteen year and above holding identification details. This will comprise the most of our clients in constant depositing, withdrawal and various transactions via phone. A widespread products outlets like shopping malls, supermarkets, petro-stations and service providers like hotels, accommodation amend transport will be established and connected for the services. The market strategy through established policies will seek a network of major public service organizations, government institutions, NGOs and other financial institutions to expand the market niche and facilitate services (Boomerang’s, 2010). This includes electricity, water companies, learning institutions and other government services. This will be facilitated by: 5.3 Service M-phone is efficient as it involves instant money transfer. A person will just need to acquire and register a SIM card which will have details for M-phone services. Select options will enhance confidentiality. The main purpose of M-phone is to transfer money from and to all the parts of Australia, at any time and not to hold the money like banks. No registration fee is required and no minimum balance. Transaction fee depends on amount which is set in a scale for sending and withdrawing. M-phone will be used to buy products from business outlets, if the business has its registered business number. Non registered members can transact with registration details and at high transaction fee. M-phone services though run through connected SIM cards will not run directly by M-phone Service Company. Instead local agents who wish to facilitate the transactions on behalf of the company will directly carry transaction. In addition the service can be offered together with another business. M-phone is different as its main objective is to transfer money conveniently without other client-company alliance. The holding of money and continued membership does not exist. 5.4 Transaction fee In terms of service fee it is reduced by 10% as compared to ATM and Over the Counter (OTC) services. The service fee strategy will include 30% for the agent and 70% for the M-phone company. Every transaction will comprise of points which will be included for offers at specific times of the year. 5.5 Distribution Transaction and registered agents with agent number will offer our services nationwide. Every registered SIM card will have a unique PIN number and this will ensure that only a single person will carry transactions. Partnership with banks will also facilitate withdrawal and deposit in banks and direct from bank account. 5.6 Promotion Development trends will be determined by active use of online platforms and e-commerce as major target channels for marketing services ((P.D, 2002). New advances will improve the experience of the customers as three-quarters of clients are targeted to engage online with our services. Through road shows and expos we will engage with our clients and explain important information. In preliminary phase every transaction will attract benefit in form of gifts and M-phone launched magazines. 6.0 Forecast and budget 6.1 Market strategy Indeed, advertising will help us to sell campaign on the product. This will open new markets and maintain the existing ones. M-phone will use internet marketing as it is a cheap and convenient way of advertising. In addition, advertisement will be placed on the magazine and direct mails (Koller & Wessels, 2007). 6.2 Marketing Expenditure A breakdown of the market expenditure of the M-phone is necessary. This section explores the expenditure. 6.3 Expense Forecast Expense forecast will estimate the ongoing operating expenses for three years. It will answer the question how much will be needed to run M-phone. As this is a new business, the expense forecast will be based on benchmarks and research of similar business. A management decision is necessary in order to know how much is needed on each category (Seese, 2010). 6.4 Marketing Expense Budget Key marketing plans Expenses 2013 ‘$000’ 2014 ‘$000’ 2015 ‘$000’ Promotions 6,000 4,000 5,000 Direct mail 12,000 11,000 9,000 Magazine advert 4,000 3,000 6,000 Total 22,000 17,000 20,000 Budget controls A market plan will describe the market position of M-phone and its market strategy for the three years. The market plan will clearly indicate the steps that will be undertaken to achieve the main objectives of the business. It is important to note that the market plan will be updated at a regular basis. The update will at one every year in order to address the changes in market demand, conditions and pricing issues, for instance (Gallanger, 2007). Budget Advertising 2013 2014 2015 $000 $000 $000 Completion of marketing plan 31/12/2013 31/12/2014 31/12/2015 1st Advert in a magazine 4,700 5,000 4200 2nd Advert in a magazine 7,200 7,000 8350 Total Advertising Budget 11,900 12,000 12,550 Direct Marketing       Marketing expense 3,200 2,500 2,625 Direct mailing expenses 2,200 3,500 1,625 Total Direct Marketing Budget 5,400 7,000 4,250 sale brochure 1,100 1,200 1,260 Other consumer and promotions 1,100 1,200 1,260 Internet marketing 2,500 2,600 3,680 Totals 19,000 21,000 22,000 Monthly marketing budget for the first year 2013 Monthly Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Advertising First advert in a magazine 4,700 4,700 Second advert in a magazine 7,200 7,200 Total Advertising Budget 4,700 0 0 0 0 0 0 0 7,200 0 0 0 11,900 Direct Marketing 0 Marketing expense 190 190 190 185 185 185 180 200 180 180 180 175 2,220 Direct campaign 200 190 190 185 185 185 180 180 180 180 180 175 2,210 Total Direct Marketing Budget 390 380 380 370 370 370 360 380 360 360 360 350 4,430 Internet marketing 200 100 100 95 95 95 90 90 90 85 80 80 1,200 sales of brochures 100 100 100 95 95 95 90 90 90 85 80 80 1,100 Other promotions 125 125 125 125 125 125 125 125 125 125 125 125 1,500 Totals 4,505 705 705 685 685 685 6,865 665 665 655 645 635 18,100 Income statement for the first 3 years  Year (Dollar) 2013 $ 2014 $ 2015 $ Revenue 150,000 200,000 400,000 Cost of revenue 80,000 100,000 250,000 Gross profit 70,000 100,000 170,000 Other income 10,000 20,000 40,000 Total income 80,000 120,000 210,000 Expenses   Advertising and promotion 18,000 20,000  21,000 Motor vehicle expenses 5,400 5,400 5,400 Insurance for the business 2,800 2,000 2,100 Wages and salaries for the employees 9,000 9,000 9,000 Depreciation of the business and facilities 3,600 4,000 5,200 Rent for the business 13,500 13,500 13,500 Other expenses 4,500 5,500 4,500 Total expenses 61,000 46,600 67,900 7.0 Implementation and control plan 7.1 Marketing organizational chart 8.0 Contingency plan According to Child & Dietrich (2002) a contingency plan is an on-going and funded business that will provide the business with resources that are required to: Train employer Perform various activities that are needed for construction Report on the ongoing plan to the senior management Establish plans maintenance activities IT Policy Group (2008) asserts contingency plan elements that are necessary to create a continuity capability include: Provision of sites for the business operation Implement clear and continuous important records, off-site storage and data backup Implementation of the contingency strategies Steps to maintain contingency plan: Communicate to every employee in the business on the plan Inform the employees of their responsibilities and roles related to the plan Offer necessary training for everyone to fulfill their responsibilities and roles Conduct tragedy risk drills where possible Give revised plan throughout the business as the old one is discarded The plan should be reviewed in a regular basis 8.1 Business Risks Seasonal drops in revenue Entry of new competitors with the same product in the market Employees’ injury Theft Accidental fire 8.2 Mitigation strategies Establishment of strong advertisement platform Storing capital for the revenue shortfalls Creation of facilities that will reduce chances of staff injuries References Betts, K. 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