Marketing Plan - Pram

23 Pages   |   6,441 Words
The marketing plan in the document refers to the launch of a new brand ‘Pram’ which is a new product category in Dubai. Pram is a pioneering product for Dubai market, and it is anticipated to create its own industry. Pram provides a flexible and easy way to move around during the shopping. There is no direct competitor of Pram, while the closest indirect competitors of Pram in Dubai market are strollers. There are different types of strollers available in Dubai’s market targeting different consumer segments pertaining to age of the child and the needs of the parents.
The major opportunity for Pram is growing awareness about health, fitness and conservation among middle, upper-middle and lower-middle income groups. Absence of this product category in Dubai region is a major opportunity for the brand to establish itself as a pioneer in the product segment. The threat to the business is the likely emergence of competitors in the industry once the product category gains initial success. The key strength of the business is superior product concept and the excellence of management team which is experienced in retail trade of Dubai market. The Dubai market comprises of a population of 0.64 million households. The market composition of Dubai also keeps changing; therefore, marketers are required to remain updated about changing market trends.
The mission of the marketing plan is to reach a market penetration of 25% among the households of Dubai which comes to 0.16 million households. The branding for Pram is determined by carrying out a survey for the percentage of the target audience. The focus of branding is to educate consumers about the new product and its benefits. Primary target market for Pram are mothers having children in the age group 0-4 years old and belonging to middle, upper-middle and lower-middle income groups. The determination of target market will be used to guide promotion plan of the business. The sustainable competitive advantage of the business will be its market leadership and association with the product category as a pioneer. Cost-plus pricing strategy will be followed for Pram. Promotion tools include magazine, television, radio, tradeshows, radio and online marketing. E-commerce will be an important part of sales channel for the business. Service provisions and evaluation features are also included in the marketing plan.
 

Table of Contents

Executive Summary. 2
Company Background. 5
Industry Analysis. 5
Competitor’s Assessment 6
Direct Competition. 6
Indirect Competitors. 6
Key Issues. 7
Opportunities. 7
Threats. 7
Strengths. 8
Weaknesses. 8
Market Analysis. 8
Mission & Objectives. 9
Mission. 9
Objectives. 9
Marketing Strategy. 10
Branding. 10
Image & Positioning. 10
Target Market 11
Sustainable Competitive Advantage. 11
Marketing Tactics. 12
Product 12
Distribution & Placement 12
Pricing. 13
Advertising & Promotion. 14
Electronics Commerce. 16
Services Elements of After Sales. 17
Marketing Budget 17
Implementation & Control Plan. 19
References. 20  The company that is a launching Pram is a start-up company which is equity financed by a venture capitalist while the ownership is shared by the originator of the business, an entrepreneur. The business idea and the entire planning is carried out by the entrepreneur and the idea is sold to the venture capitalist in exchange for a share of ownership in the business. The terms of partnership are negotiated between the entrepreneur and the venture capitalist, who is a UAE resident because of the legal requirements.

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The laws of UAE business entails the business must be partnered by a resident of the country. Even though the organization is a start-up, the management hired in the company are experience professionals of retail business who possess expertise in branding and managing sales operations in a fast moving consumer market. The ownership of the company also possesses the vision to expand business out of Dubai after initially success and reinvesting cash flows into managing the product life cycle. The company does not possess expertise in manufacturing and will outsource its manufacturing to a competent producer in China under exclusive production contract.      The industry analysis is quite difficult for Pram because the industry for Pram does not exist yet. Pram is not only a new brand but it is also the first product in its category. Pram is a pioneering product for Dubai market, and it is anticipated to create its own industry. For industry analysis purpose, several meaningful inferences can be derived from demographic analysis of Dubai’s population and their habits. The industry environment is favorable for Pram because Dubai is one of the shopping capitals of the world and enjoys an international reputation for its shopping malls and huge bazaars popular. Shopping in Dubai is one of the favorite pastimes of tourists and resident population alike (Acuto, 2010). Pram provides a flexible and easy way to move around during the shopping. For this reason Pram is likely to be benefit from this aspect of city life. The city attracts many visitors wishing to shop; they come from neighboring countries or other more distant regions such as Eastern Europe, Africa and the Indian subcontinent.
Each year Dubai Shopping Carnival takes place in the city which comprises of large distances of markets created. The shopping carnival has become a cultural event during which various shows and events take place. The weather, the many festivities, fireworks and sales are among its strengths, but it's the environment around the Global Village kitsch that we enjoy as much. Even though Pram can be useful for street markets, the product will be difficult to be used for mall shopping. The numerous shopping malls in Dubai are more extravagant than the other. Modern and luxurious, their decoration is neat and refined. Their current central, with fountains or carts of memories, seeks to evoke village squares (Douglas and Craig, 1997). Amusements parts are part of Dubai culture which may be a useful adaptation for usage of the new product because parents would find it highly useful to use Pram to enjoy these cultural outings rather than drag a stroller. A review of economic trends of Dubai is also useful for Dubai for industry analysis purpose. The economy of Dubai has emerged from the financial crisis of 2007, and the consumer confidence and economic activities in the region are restored. Also, the region has been successful in regaining tourism and expatriate workers which is a positive sign for a prospective new product launch. Direct Competition Direct Competitors are those products which exist in the same product categories as the product launch. Since, Pram is a pioneering product for Dubai market, and it is anticipated to create its own industry, there is no direct competitor of Pram. There is no other brand for a bicycle-stroller in the region, and according to market research this product has not been imported yet from a foreign market. Even though, bicycle-stroller has been an acceptable product launch in US and other European markets, it has not been imported by any company in this region.
Indirect Competitors Indirect competitors are those products which fulfill the same need as the target product and even though they belong to a different product category or a different industry altogether. The close indirect competitors of Pram in Dubai market are strollers.
The stroller is a means of transport for children at a young age (0 to 4 years). In Dubai’s market strollers are quite common and several brands operate in the market all imported from various countries. There are no locally manufactured brands. Strollers consist of a chassis that support wheels (usually steel or aluminum). On the frame fits a seat called "hammock" in which the child can sit. System handles or grips to direct the stroller and keep it moving. Strollers are a mature product category in Dubai and the manufacturers are coming up with new value added features to increase their market share. For instance, in some recent models the user can fix a shell, a car seat or carrycot to the chassis.
There are different types of strollers available in Dubai’s market targeting different consumer segments pertaining to age of the child and the needs of the parents, parental preferences and the use. One category of this indirectly competing product is Travel System Stroller. A stroller travel system is called if it can accommodate a carrycot (bassinet) and / or shell / car seat. This product category is suitable to be used for the child from birth. A very large market exists for this product category. All-Terrain Stroller is a less popular form of competitor category which is very often equipped with three wheels (two rear wheels and one front wheel) large enough to allow him to travel on any terrain. It is provided with options that promote the comfort of the child and parent (dampers, pneumatic tires, seat padded, progressive brake, etc.), making it heavy and imposing. The three-wheeled stroller is very often an all-terrain stroller but it can be for urban use only if it has small wheels or does not have suspension. Less popular categories include double or triple strollers which are the types of double stroller for children close in age. These competing product categories have established their market presence and created a loyal customer following.   Opportunities The major opportunity for the business is growing awareness about health, fitness and conservation among middle, upper-middle and lower-middle income groups. There is an opportunity to promote alternate means of transport which impart the feeling to the user of contributing towards conservation of energy, reducing environmental emissions and improving their health through such means of transport which requires physical exertion. Absence of this product category in Dubai region is a major opportunity for the brand to establish itself as a pioneer in the product segment and to capture position of the market leader (Westwood, 2004). This opportunity will help business to benefit from growing market after initial adoption period of the product.  
Threats the major threat to the business is the likely emergence of competitors in the industry once the product category gains initial success. It is likely that a number of competitor brands will emerge in the market when the product will become visibly popular in the Dubai region. Also, independent retailers will also create import lines for the similar products from other countries.
Strengths the key strength of the business is superior product concept and the excellence of management team which is experienced in retail trade of Dubai market. The financial muscle of the business is an added strength which enables the business to market its product effectively to the target market through a holistic channel and to create a strong positioning in the mind of the consumers. Exclusive production contract with the outsource manufacturer is an additional strength that will be helpful in controlling production cost and eventually offer the product at a highly competitive price to the consumers. Also, potential disruptions in product supply chain can be effectively controlled through these exclusive contract arrangements.     
Weaknesses the weakness of the business is high risk associated with the venture since the entire cash flow of the company is dependent on one product. If the early product adoption rate is slow, the business will not have alternative sources of revenues from some other product to finance its marketing initiatives. The company does not have any known brands in the market to leverage its new product launch, which is a decided weakness in consumer marketing. The Dubai market comprises of a population of 0.64 million households belonging majorly to middle and lower-middle income group households of expatriate workers. The market comprises of only 90,000 indigenous households. The city of Dubai is significantly growing market with a population growth in recent years. The population was 265,702 inhabitants in 1980, 669,181 in 1995, one million in 2004, 1,182,439 in 2006 and has reached 1.4 million in 2011, making Dubai the most populous city of UAE (Acuto, 2010). 
However, the composition of this market is highly diverse in terms of ethnicity and nationality making it challenging for marketers to determine their product offering and prices. A vast majority of the population (65% of the total population in 2002, 700,000 migrant workers) is not Dubai-based Emirates or even but is formed of immigrant workers. 65% of the inhabitants of emirate are Indian or Pakistani. The large portion of the market is less educated and has lower purchasing powers. The policy of major projects requiring labor intensive, the government appealed to foreigners mainly from other Arab countries, the Indian subcontinent and Southeast Asia. Many Western businessmen in the emirate come temporarily to work in their multinational subsidiaries. 
The market composition of Dubai also keeps changing; therefore, marketers are required to remain updated about changing market trends. This is because, it is almost impossible for a foreigner to obtain UAE nationality and reside permanently in the country. The language used in the market is also quite diverse with a high proportion of population speaks foreign English; while, Hindi, Malayalam, Persian, Urdu and Tagalog are used for business and foreigners. The most represented religion is Islam, mostly Sunni. 
Dubai’s market is characterized by a large language gap. Despite the national Arabic in Dubai many other languages are utilized by the population (Al-Khatib, 2005). Among the most important of them includes language like Hindi, Urdu, Malayalam, Bengali, Tagalog and English. The state religion of Dubai is Islam. Demographics of Dubai Emirate be based primarily on Sunni Muslim culture which is an important consideration for marketers. Dubai’s demographics are also enriched by other religious communities like Hindu, Sikh and Christian.  Mission The mission of the marketing plan is to establish Pram as a purchase preference among households of Dubai at a premium price. The mission is to reach a market penetration of 25% among the households of Dubai which comes to 0.16 million households of total 0.64 million households in the regions. 
Objectives It is necessary to select and prioritize marketing objectives of the company so that the organization can then determine the best possible performance indicators to measure its performance against. The organization certainly can opt for several key objectives for different functional areas of the business. Marketing objectives of Pram is principally to grow global demand particularly by disseminating knowledge of product attributes to the target market which is prospective to be most approachable to the new product launch, in other words, the target market of the new product. The product launch phase also necessitates great care because most catastrophes ensue in this phase.
Regulatory and cultivating the brand image of the innovative product is also a fragment of the objectives of the product launch ‘Pram’ and to generate a buzz about the new product segment in the market is also an element of the marketing objectives along with growing sales and conversion of the possible sales leads (Luther, 2011). One possible element of the marketing objectives comprises of direct contact with the customer and decreasing the cost of communication and marketing, thus increasing return on investment of marketing. Branding The brand name of the new product was brainstormed thoroughly, and it is decided at ‘Pram’. The brand name is short, easily recallable and can be easily uttered in any language. A holistic brand is created for the product offering including service provision. Branding initiative for a new and innovative product category of ‘Pram’ aims to inform customers of features of the new product. This branding for the product category is determined by carrying out a survey for the percentage of the target audience which know about the new product category and recognize the brand. It was found during the survey that majority of target market in Dubai is not even aware about the presence of such a product (Luther, 2011). Therefore, the focus of branding is to educate consumers about the new product and its benefits. The branding objectives are not restricted to increasing awareness among consumers only but also to generate awareness about the profitability of the product category for the resellers so as to create a comprehensive distribution channel.
Image & Positioning the image of Pram is to be established as a product which is associated with healthy living and responsible thinking towards environment. The positing of the brand will be established as a brand which is synonymous with independent living and freedom of movement. The holistic brand image will be created as belonging to inspirational lifestyle and as a functional product rather than a premium product. The brand positioning will be supplemented by low pricing and communicating functional benefits rather than putting across emotional appeals to the consumer. The focus of positioning will be on communicating product attributes and efficiency of the product. The brand image will comprise of the following qualities:

Figure 1 - Proposed Brand Image of 'Pram' (self-drawn)
Target Market Primary target market for Pram are mothers having children in the age group 0-4 years old and belonging to middle, upper-middle and lower-middle income groups. These are the women who need to travel around markets in Dubai during their daily schedule and also go for outdoor recreation. It was found during survey research that purchase decisions in these households are combined decisions of the family. For this reason, the secondary target market for marketing communication includes the husbands of the above mentioned mothers too. These women belonging to target market has outdoor oriented lifestyle (Westwood, 2004). During the first four months of product launch, the focus within this target market will be on upper-middle income groups since it was found that women belonging to this population segment are early adopters of products. This segmentation within the target market will help to generate early revenues for the company to be reinvested for further marketing of the product. The determination of target market will also guide promotion plan of the business since the objective of promotion will be create linkages with the specific target audience in Dubai. 
Sustainable Competitive Advantage Sustainable competitive advantage is essential for the business because competitors are anticipated to enter into the market, once the product category becomes popular within the region. The sustainable competitive advantage of the business will be its market leadership and association with the product category as a pioneer. This is a sustainable competitive advantage because brand pioneers are known to retain their market leadership when the product category expands because consumers view such brands as more authentic than ‘me-too’ product offerings. Product Pram can be explained in simpler terms as an amalgamation of a bicycle and a stroller. The product is suitable for traveling over short distances and for outdoor vacations for mothers who need to carry babies with them at all times. The requirement for this product is high because mothers usually need a portable solution to carry their babies with them. It is quite demanding for mother to take a stroller out of the car, put it back, take it out and then back again. It is far easier to drive a stroller through pedals. Using customary strollers is not only very trying for moms but also very exhausting. Contemporary strollers are also predominantly weighty and need indeed a immense effort to be hauled for extended distances. Modern mothers need an easy solution. With its bicycle system, the Pram is certainly a very helpful product for young mothers.
Another essential feature of the product offering of Pram is the design and ease of usage. A Pram merges design and unfussiness. There product will be offered in different models so the product can serve the need of every segment within the target audience. A range of attractive color options, styles, and foldable Prams will be offered so that consumers can find a brand which most closely meets the requirements of the customer. The product offering also differentiates between customers in terms of inclination for superior ease or affordability. Some consumers would be seeking Prams which feature all kinds of accessories and options, while other users may seek out simplicity and low cost. 
The product also represents freedom for the consumers since the Pram can play an essential to discover the world with one’s baby making it perfect for vacations and picnics. An essential part of product offer of Pram is the product range. Product range of Pram will facilitate consumers to discover the stroller that best suits their requirement to enjoy a ride with their child. Contingent on one’s lifestyle and activities a consumer can decide from a range of Pram’s product offers.  
The compact Proms are essentially designed for urban markets where these strollers make simpler one’s life every day. Comfy, maneuverable and condensed, they are perfect for journeys in town but also for visiting parks. 
Distribution & Placement Placement strategy adopted by the company will be holistic including direct sales through an online channel as well. The objective of the placement strategy will be to make the product accessible in all places of consumer durable stores in Dubai including departmental stores, hyper-marts and retail outlets of baby products. Albeit it will entail significantly high costs to put in place such an all-inclusive placement strategy for Pram, it is crucial to adopt this strategy in an economy where a firm anticipates that it will face rigid competition from conventional strollers. Consumers are known to be risk aversive in the purchase decision in the product categories which relates to their babies. Dubai consumers are known to have a very busy lifestyle and it is unlikely that they will search a product across large distances. Rather these consumers have been reported to make the decision on the purchase point. For this reason, omnipresence of Pram is essential (Rose, Dalakas and Kropp, 2003). An extensive distribution of Pram will also help in branding initiatives because improved brand image in consumers' relates to superior brand image.
Pricing the suggested pricing strategy for Pram is to adopt a market penetration strategy. This is important to keep the price of the product low in Indian market because Pram is an innovative product and its adoption rate in the market is uncertain. Also, Pram is indirectly competing with an existing product – strollers - and this element makes its future market share uncertain. Pricing of Pram necessitates sound monetary basis for the consumers to purchase the product. The corresponding revenue will also have to to sponsor improved development of Pram and invest in typical marketing activities.
Although market skimming pricing strategy is commonly connected with the goods introduction of any foremost innovation, a little introductory price in case of Pram can be viewed as compensating for the risk consumers in Indian market are going to take to accept this new product with little information of its possibilities. Also, the product has to be mass marketed, rather than marketed to upper-middle income groups, which involves that quick early adoption is very imperative for this product. Early adoption by a category of consumers is possible to lead to adoption by a large section of mothers which in this case would be referred to as network effect. A moderately low preliminary pricing of Pram also play the role of a signal which hints a willingness to reach a large consumer base and implies means staying on the market permanently(Biggemann and Fam, 2011). The consumers are guaranteed on the promising longevity of the product or product line, rather than perceiving Pram as a product which is marketed to make short-term profits by the manufacturers. This pricing strategy will also prevent potential competitors from entering the market and will convey determination of the company to conquer market share even if has to sustain short-term losses. Positioning based on functional attributes is also cost-plus based and low.
Cost-plus pricing will be the basis of setting price for Pram in the Dubai market. The cost-plus initial price can also be a part of the approach to keep competition from entering the market and aspire for the company to win the majority of the market so that it can enjoy after mass scale adoption of the product. Developments of this framework have highlighted many desired effects of the practice of introductory pricing. It can permit a rapid dispersion of the product, giving the company that a huge market share before competitors could respond with a corresponding price decrease(Douglas and Craig, 1997). The above mentioned pricing strategy can form a positive impression on the key target market segments and generate consumer pioneers who can promote product through an affirmative referral practice by the consumers. Reducing margins through cost-plus pricing will also generate internal pressure to reduce costs, leading to better competence giving a wider room for edge to retailers and encouraging vendors to provide a chief promotional effort. The low margins puts across limited perception about the profits in the sector to potential competitors, which make the preliminary price policy act as a barrier to entry.
The benefit of the suggested pricing strategy is to present a unmistakable vision and a better control over the actions to be employed to achieve the sales targets. The pricing strategy will also guarantee that products and services presented by the company in line with expectations and the actual needs of potential customers(Narasimha, 2008). Also, it will lead the firm to have more power over the costs of any marketing activity: product development, research, advertising, etc. Finally, it will enable the company to focus on commercial objectives of retailers too, which will generate customer loyalty and active exploration of new potential customers. 
Advertising & Promotion After product element of the marketing mix, promotion of the product is the most indispensable element for its expansion in consumer markets. To enhance sales through the initial period of the product offer, promotion can be adopted for the product by crafting an appealing incentive or a bonus gift for orders in the first 3 days. Public relations will shape the most main aspect of promotion since it is a new product launch, and to further sales of Pram the company will distribute an article with testimonials from satisfied customers, and may be additional bonus to boost sales.
Promotion aims to achieve the turnover targets set by the organization. This marketing objective is one step further than informing the customer and to accomplish this objective the business must form a relationship with the client to sell its products. If the relationship previously exists, it is to reconnect with the client to increase frequency of their purchases, especially if sales have weakened for this client. Since the purchase process for Dubai households market is not in an individual decision, one promotion is to create traffic of families to the sales point of the organization(Luther, 2011).  
The third promotion goal is to create a close relationship with the client to keep up feedback loop of the marketing efforts and achieve a minimum level of customer retention and added business through referrals. This objective is calculated by finding out percentage sales made to the same customers and to the referrals of formerly served customers(McDonald and Wilson, 2011).
Since, Dubai consumers are geared to trust commendations of their friends and acquaintance, rather than marketing message, it is vital for the company to set up an associate program and to give an inducement to its affiliates to sell products (Douglas and Craig, 1997). It is necessary to make marketing tools accessible its affiliates prior to the launch of the product. 
Another prominent aspect of promotion for Pram is to initiate the buzz before the launch of the product in consumer markets. The consequence of teasing is indispensable to drive consumers for purchase from the start of product, and the company will need to plan the publication of articles, get interviews published and announce contests to create hype in the market(Kumar, Lee and Kim, 2009). Since, the organization does not plan to market product through most costly mass-market medium like television, newspaper advertisement, etc. it is essential to use less-expensive medium most successfully and competently. Part of the promotion plan is to create an event which powerfully encourages consumers to converse with influencers and allows them to benefit from the experiences shared by early adopters.
Social media promotion is an integral part of promotion of Pram because it generates communication between the target market and the consumers, as well as, and generates a word of mouth. Communication strategy should be made for Twitter and Facebook by launching a teaser a few days before the release of the product.
Communication for the promotion of the brand should not be initiated on an ad hoc basis; rather developing a communication plan for the launch of a product begins way before the launch of the product. Principles of integrated marketing communication must be followed so that a integrated message is communicated from all communication media(Narasimha, 2008). Free giveaways are an essential component of innovative product launches because offering a giveaway not only promote the new product and but also spurs adoption among target market.
Electronics Commerce E-commerce and online sales is an important part of the marketing strategy of the business. This area of business represents an important means of sales for the business and a direct channel which bypasses retailer’s margins. Therefore, this is the most economical means of approaching the clients. Electronic commerce is not limited solely to the Internet. Today, electronic transactions are also carried out also on mobile networks. In a context of environmental constraints, presence of support network of courier services tends to transform the problem of logistics.
The company will set up an e-commerce website showing all the products available for sale, their price and their availability (product in stock or number of days before delivery). A search features is integrated within the organization to easily find a product using the search criteria for instance, price range, product feature, etc. A virtual shopping cart system is implemented within the website, as well, along with the feature to process payments through all available means of electronic commerce. The virtual shopping cart keeps track of customer purchases through change in the quantities for each reference.
The secure online payment (accounting) is often done by a trusted third party (a bank) via a transaction application. This application includes a system of tracking, to monitor the process of processing the order and sometimes to obtain evidence on the treatment of the parcel by the carrier. In some cases, e-commerce allows a high level of customization of products, especially if the e-commerce site is coupled with the supply chain system of the business to maintain availability of those products which is sold out. The price of products which are sold to the clients through electronic commerce is kept at par with the price at which it is available at retailers so that retailers do not feel threatened by this direct chain of the company with the clients. The cost incurred by the company for transaction processing (of percentage of sales paid as a commission for transaction processing) and amount paid to the courier company is almost equal to distributor’s margin. For this reason, the gross margin of sales is roughly equal for the two modes of sales – physical and online.   
Services Elements of After Sales The provision of services during and after sales is an integral component of product offering. The assembly and installation of the product is complicated. For this reason, free installation services will be provided by the business along with maintenance service after the sales deed is done. The information technology has made ​​available a wide range of customer service tools. The company will provide support to the customer through its contact point on the company’s website and will include the functionality to have online conversations with technical staff to databases tracking individual customer preferences, purchase patterns, methods of payment etc.
Specialized software will be adopted by the company for monitoring service levels and to help identify areas of improvement by making use of ERP tools. The customer relationship management (CRM) will empower the company with a set of tools and techniques for capturing, processing, analyzing information about customers and prospects, in order to retain them by offering the best service. In terms of applications, these software packages that can deal directly with the customer, whether in terms of sales, marketing or service, and can be often grouped under the term front-office. The key advantage of implementation of the service provisions will be that the interest of the customer and the company towards each other is extended over time and exceeds the time of sale.  The marketing budget allocation for the first six years of operations of the business is created below. The total amount of funds invested for marketing of the brand during the first four years of marketing is approximately AED 300,000. The adoption curve of the product is anticipated to be steep during first year of operations, while for the next three years it is expected to be rather steady in growth. 

Proposed Marketing Budget for PRAM
  All Amounts in AED
Marketing Budget Allocation Year 1 Year 2 Year 3 Year 4 TOTAL
Marketing Research 1,000   1,000   2,000
TOTAL 1,000   1,000   2,000
Media          
Magazines 500 700 700 700 2,600
Newspapers 500 800 800 800 2,900
TV       10,000 10,000
Radio 500 500 500 500 2,000
Trade Shows 800 1,000     1,800
Promotions 200 300     500
Outdoor 1,000 1,500 1,500 1,500 5,500
TOTAL 3,500 4,800 3,500 13,500 25,300
Production          
Magazines 500       500
Newspapers 500       500
TV       10,000 10,000
Radio 500       500
Sales Promotions 200 200 200 200 800
Outdoor 500       500
TOTAL 2,200     10,200 12,400
Sales Force          
Expenses 4,000 6,000 6,000 8,000 24,000
Incentives 1,000 1,000 1,000 1,000 4,000
TOTAL 5,000 7,000 7,000 9,000 28,000
Online Marketing of Website          
Banner Advertisements 100 200 200 200 700
SEO 800 800 800 800 3,200
Google Adwords 100 300 300 300 1,000
Social Media Marketing 100 100 100 100 400
Publicity 1,000 2,000 1,000   4,000
TOTAL 2,100 3,400 2,400 1,400 9,300
Total Marketing Budget Allocation 27,600 30,600 28,000 68,200 154,400
 
Forecasted Financials of the Business
  All Amounts in AED
Revenue Projections Year 1 Year 2 Year 3 Year 4 TOTAL
Sales (units) 1,100 1,700 2,600 3,800 9,200
Pricing 1,600 1,600 1,600 1,600 1,600
Yearly Revenue 1,760,000 2,720,000 4,160,000 6,080,000 14,720,000
Less Direct Costs          
Cost of Imported Product (AED 1000/unit) 1,100,000 1,700,000 2,600,000 3,800,000 9,200,000
Gross Annual Profit 660,000 1,020,000 1,560,000 2,280,000 5,520,000
  1. The pricing of the product is derived from equivalent US pricing of 700 USD at which the product has been launched in US. The company proposes to enter with a market penetration strategy, and therefore the price has been maintained at the same level for the first four years of operation i.e. AED 1600.
  2. The cost of imported product has been found from offerings of Chinese suppliers on international B2B trade sites like Alibaba.com
  3. The product lifecycle is in growth stage during the first four years of operations
  4. The start-up capital is 1 million AED. Of this capital, investment for the business during the first year is:
    1. Marketing Expense = 0.27 million AED
    2. Cost of Import = 0.66 million AED
    3. Working Capital = 0.07 million AED
  5. Average Annual Stock Turnover = 4
  6. The business purchase inventory on average four times during the year. The objective of this decision is to minimize both storage and procurement costs. Also, capital restraint can be effectively managed in this manner. 
  7. Expansion in business operations take place through subsequent re-investment of yearly profits
  8. The sales growth graph depicts growth phase in product life cycle
Figure 2 - Revenue Projections for First Four Years of Operations
 
Marketing Budget Allocation for First Five Years

Figure 3 - Marketing Budget Allocation for First Five Years of Operation (self-drawn)

Monthly Breakdown of First Year’s Marketing Budget
Marketing Budget Allocation Jan Feb Mar Apr May Jun
Marketing Research 500       500  
Media            
Magazines   100 100 100    
Newspapers   100 100 100    
TV            
Radio   100 100 100    
Trade Shows 200     200    
Promotions   50 50      
Outdoor   100 100 100 100 100
Production            
Magazines 500          
Newspapers 300         200
TV            
Radio 300         200
Sales Promotions   200        
Outdoor 300         200
Sales Force            
Expenses 400 400 400 400 400 400
Incentives 100 100 100 100 100 100
Online Marketing of Website            
Banner Advertisements   25   25   25
SEO 100 100 100 100 100 100
Google Adwords 10 10 10 10 10 10
Social Media Marketing 100 100 100 100 100 100
Publicity     100 100 100 100
Total Marketing Budget Allocation 2810 1385 1260 1435 1410 1535
 
Marketing Budget Allocation Jul Aug Sep Oct Nov Dec
Marketing Research            
Media            
Magazines 100 100        
Newspapers 100 100        
TV            
Radio 100          
Trade Shows 200     200    
Promotions 50 50        
Outdoor 100 100 100 100 100  
Production            
Magazines            
Newspapers            
TV            
Radio            
Sales Promotions            
Outdoor            
Sales Force            
Expenses 400 400 400 400    
Incentives 100 100 100 100    
Online Marketing of Website            
Banner Advertisements   25        
SEO 100 100        
Google Adwords 10 10        
Social Media Marketing 100 100 100 100    
Publicity 100 100 100 100 100 100
Total Marketing Budget Allocation 1460 1185 800 1000 200 100
 

Implementation & Control Plan

The implementation and control elements for the marketing plan of Pram consists of carrying out a period assessment of marketing plan’s effectiveness through consumer surveys to gauge the level of brand reorganization and purchase intentions towards the brand. This will help in finding out which segments of the target market has not been exposed to the marketing message and emphasis can be placed on those segments. Social media marketing can also play a significant role for feedback mechanism of marketing because it is a direct touch point of the company with the consumers.  Acuto, M. (2010) 'High-rise Dubai urban entrepreneurialism and the technology of symbolic power', Cities, vol. 27, no. 4, pp. 272-284.
Al-Khatib, J. (2005) 'Inter-country differences of consumer ethics in Arab countries ', International Business Review, 14(4), vol. 14, no. 4, pp. 495-516.
Djursaa, M. and Kragh, S. (1998) 'Central and peripheral consumption contexts: the uneven globalization of consumer behaviour', International Business Review, vol. 27, no. 4, pp. 23-38.
Douglas, S. and Craig, S. (1997) 'The changing dynamic of consumer behavior: implications for cross-cultural research', International Journal of Research in Marketing, vol. 14, no. 4, pp. 379-395.
Luther, W. (2011) The Marketing Plan: How to Prepare and Implement It, Ohio: Amacom Publishing.
McDonald, M. and Wilson, H. (2011) Marketing Plans: How to Prepare Them, How to Use Them, New York: John Wiley & Sons.
Westwood, J. (2004) The marketing plan: a step-by-step guide, London: Kogan Page Limited.

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