Marketing Plan For Business Basic Phone Company
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Executive Summary
Business Basic Phone Company is currently in the maturity phase, with competitors increasing and customer needs changing. The following report investigates possible changes such as trade in schemes and expanding the target market, threats such as competitors and opportunities possible, such as expanding the target market, to gain a competitive edge against competitors, thus, increasing market share and expanding its customer base. With the implementation, monitoring and controlling of marketing strategies, Business Basic Phone Company is able to revitalise its products, market share and competitive edge, which will enhance its goodwill and recognition within the marketplace.
Situational Analysis
1. Market Analysis
Business Basic Phone Company is affected by a variety of internal and external influences both positively and negatively.
External Influences
Economic activity is an uncontrollable influence which affects Business Basic Phone Company as their prices need to be raised due to the introduction of the Goods & Services Tax (GST). This tax influences consumer spending which impacts on the ability of Business Basic Phone Company to charge a certain yet reasonable price for their mobile phones that are sensitive to the changes in income while still making profit.
Increased competition in the mobile phone market has affected Business Basic Phone Company as new strategies have been introduced to remain competitive while still making profit. To maintain a competitive edge, Business Basic Phone Company can reduce prices, introduce promotions, expand their target market or expand their target range to satisfy consumers of varying ages.
Internal Influences
E-commerce affects Business Basic Phone Company as the introduction of alternate methods of payment, such as via internet, B-Pay or direct debit payment services, which would in turn increase market share.
Staffing skills and requirements are effective as employees are mainly permanent which means customer will have appropriate assistance with enquiries. This gives Business Basic Phone Company a competitive edge as new competitors may not have the already acquired skills or knowledge needed.
With the threat of new competitors, Business Basic Phone Company may have to look to debt finance as a financial resource. Unless new strategies are introduced and implemented, Business Basic Phone Company may have to resort to voluntary cessation because there may not be enough revenue to support the business activities.
2. Product Analysis
Business Basic Phone Company is currently in the maturity stage of its product life cycle, where both their products and competitors products are readily available. Consumers now have considerable choice as to where to purchase their mobile phones from. At this point, Business Basic Phone Company must modify its marketing strategies to ensure continued success.
Business Basic Phone Company needs to ensure they keep a competitive edge by differentiating itself from its competitors. This could include strategies of:
price differentiation – where Business Basic Phone Company could reduce mobile phone prices while still remaining competitive and making profits
unique forms of promotion – this could include below-the-line promotion such as internet advertising or publicity stunts
Introduce a trade in scheme – where a customer can trade in their old mobile phone and receive a percentage off the normal retail price of an updated replacement.
These strategies would increase market share as well as goodwill, attracting customers to Business Basic Phone Company.
3. Competitor Analysis
New competition could pose a possible threat to Business Basic Phone Company, however, with their experience and reputation, they can remain competitive while increasing market share.
Increasing competition may mean that other mobile phone retailers may not have the experience or knowledge of its products like Business Basic Phone Company employees do.
With the introduction of a trade in scheme, Business Basic Phone Company has more of a competitive edge as consumers are able to receive an updated phone for a percentage off the original price. This will inturn generate an expanding customer base while increasing market share.
Also, with the introduction of alternate payment methods, customers are able to pay for their product from the comfort of their own home.
Competitors may have identified that Business Basic Phone Company mainly target their products to over 25 year olds for business purposes. This could pose a threat to Business Basic Phone Company as it could obtain customers, therefore, leading to a declining customer base. With new marketing schemes, Business Basic Phone Company can remain competitive and bring back its customer base.
4. SWOT analysis
Strengths
has retail outlets in major shopping centres
employees are mainly permanent
late night trading on Thursdays
appropriate target market
Weaknesses
limited target market
limited product range
Customers need to go to shop to purchase products and pay accounts.
Has not kept up with changing consumer expectations
Not up to date with retailing methods
Opportunities
can expand target market to younger and older markets
Change strategies to suit expanded target Market.
Introduce alternate paying methods, eg, internet
Allow product purchasing over internet or phone
Change retail methods, eg, web based marketing of products.
Get opinion of consumer for products, eg, surveys
Threats