Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from essay:
In order to be known into the market place and as a new entrant, the company will provide its target market with an affordable cost while providing them a high quality products and services. The company will be given the customer and client a price that is lesser than its competitors so that the consumer will be enhanced to buy and patronize the Global Smart Card. Each card is loaded with HK$500 and will be topped up with $350 after the balance goes below zero."
Place: "To be known in the market place, the product will be distributed directly to its clients and consumers. And to be known internationally, one of the strategies that the product will utilize is going on a joint venture with distinguished distributor of the card, providing them with great offers, so as to market the product of the Global System. The company will also find a Smart Card Alliance in the U.S., Europe and Asia to be known globally."
Promotions: "To promote the company and its product, the company will use video advertisements, print advertisements and the concept of e-marketing. These promotion and communication strategy will tend to meet the consumers form different places everywhere, especially those target markets or the consumers in the working place. Moreover, since the trend in the market place today is the usage of e-marketing, the company will provide a website that any client can access" (Thinking Made Easy, 2008).
6. Product Strategy
It is of the utmost importance to recognize that the traditional Molex connector as well as other connectors would not be replaced in a short period of time, meaning that they would be used parallel for a specific time period. This means that the new product needs to remain compatible with all previous connectors. Yet, it is necessary for it to reveal additional benefits. The new Molex connector would be sold under the already established Molex brand; it would respect all standards of high quality and user safety. The manufacturer offers a two years warranty.
7. Price Strategy
"In setting a price, the entrepreneur decides on the most appropriate value for the product or service being offered for sale" (Longenecker, Moore, Petty and Palich, 2005). In terms of pricing strategy, Molex has several alternative options. One would be that of implementing a skimming pricing strategy which implements a high price. Purchases based on this strategy would be influenced by customer loyalty and brand recognition. Yet, in these times of economic hardship it is not advisable to be implementing skimming.
The second alternative is that of implementing a penetration pricing strategy. This method is the opposite of the previous one in the meaning that the consumers are introduced to low prices which attract them (Ward, 2004). This strategy is similar to promotional sales, meaning that it shares the risk of setting unrealistic sales expectations, which do not materialize after the normal price is once again implemented.
Finally, the third alternative solution is that of implementing a variable pricing strategy. This course of action sees that the price of the product is established in accordance with the costs incurred in its manufacturing (Longenecker, Moore, Petty and Palich, 2005). When the costs of manufacturing the Molex connector increase, so would its price. Vice-versa, when the costs decrease, the conductor's price decreases as well.
In light of these realizations, it would be best if Molex implemented a dual pricing strategy, commenced with a penetration pricing strategy and then continued with a variable pricing strategy.
8. Distribution Strategy
The distribution strategy is developed in accordance with the identified target market as it is pivotal for the company to identify the specific distribution channels to reach the previously identified target audiences. Given that the new Molex connector would target two specific markets, its distribution strategy should be a dual one. In other words, the new Molex connector would be distributed through a combination of direct and indirect distribution strategies.
The direct distribution strategy would occur in the relationship between the Molex connector manufacturer and the producers of electronic appliances which integrate the connector within their items. In this relationship, the company would directly interact with its consumers and would enjoy the benefits of an increased ability to retrieve quick and constructive feedback from the clients, but they would also encounter increased challenges due to higher distribution costs and increased operational complexities.
When distributing the Molex connectors to individual consumers, the company would use indirect distribution channel. In other words, it would sell its connectors to intermediaries, who would then sell them to individual consumers. Unlike the previous solution, the indirect distribution channel creates the disadvantage of distancing the company from the customer. Yet, it does however reveal a series of beneficial features, such as:
"More efficient distribution logistics
Overall costs (even taking into account the intermediaries' margin or commission) may be lower
Consumers may expect choice (i.e. The products and brands of many producers) at the point of sale
Producers may not have sufficient resources or expertise to sell direct" (Tutor2U).
9. Promotion Strategy
Similar to the distribution strategy, the promotional campaign is also constructed on the features of the identified target market. In this order of ideas, it is necessary to identify the media channels which best appeal to the targeted consumers. An it technician is for instance less likely to watch television, but he is expected to browse the internet. In this order of ideas, it becomes natural that a first means of promoting the new Molex connector is that of advertising it online.
The targeted audience is also more likely to watch technical shows; this means that the television advertisements will be aired during the commercial breaks of it shows. Next, the third means of promoting the new Molex connector is that of advertising it in specialized magazines.
Aside from the very advertisements, promotions should also be implemented through communications with the target audience. These communications could for instance include interviews offered during television shows dealing with electronic connectors topics or interviews in specialized magazines and journals. Additionally, representatives of the Molex Company should be delegated at industry conferences to promote the new product.
Finally, in a more practical sense, the promotions would also take the form of promotional sales. During these sales, individual and corporate consumers would be able to purchase the new Molex connectors at discount prices. This approach has the ability of attracting customers. It should however be noted that the promotional sales periods should not extend over one week so as to not cause financial loses. It is also important that in the immediate aftermath of the promotional sales, the company counter acted with an aggressive campaign which ensured revenue stability, instead of a decrease in sales.
10. Co-ordination with Other Business Functions
The new Molex connecter was born out of the necessity to better satisfy the growing customer needs in the growingly complex market and industry. Yet, this objective is highly demanding and cannot be achieved with the simple implementation of several marketing strategies. This virtually implies that the usage of the new Molex connecter to achieve organizational goals should be implemented as an organization wide business model, rather than as an isolated marketing endeavor.
In this order of ideas, it is necessary that the Molex employees in the technical department improve the quality of the product by adding it new features and as such making it better able to satisfy more consumer needs. At an administrative level, it is necessary for the managerial team to handle an adequate resource allocation process in a means that ensures that the new product enjoys sufficient staff or sufficient time to be developed. At the level of the financial sector, it is important that the chief financial officers assign special budgets to the development and distribution of the new Molex connector. It is as such necessary to either identify new sources of financial resources, or to cut costs in other departments and other endeavors with the intent of reallocating them to the new Molex connector development and campaigns.
At the level of the human resource management department, it is important to integrate the employees in the change process and to motivate them to support the success of the new product and the new strategy. Additionally, it is compulsory to offer them training programs which introduce the staff members to the new technologies. At an overall corporate level, it is pivotal to develop and enforce a new organizational culture focused on complete customer satisfaction. This culture would be implemented organization wide and it would as such ensure that the objective of all employees in technical, administrative or marketing is, at all times, customer satisfaction.
11. Sales Forecasts and Budgets
Sustaining and implementing the change strategy in the creation and distribution of the new Molex connector requires significant financial investments. In this order of ideas, an estimative budget would comprise of the following:…[continue]
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