Marketing Plan for Euro Solar Company †MyAssignmenthelp.com

Question: Discuss about the Marketing Plan for Euro Solar Company. Answer: Introduction Euro Solar Company is an Australian firm that specializes in designing, manufacturing, and distribution of solar products and solar energy systems. Currently the company designs differentiated high quality products that cuts across 3kw system, 5kw system, and 10kw system. The company started its operations in 2011 with only 4 employees and a 100 square meter warehouse. The early operations of the company sought to understand as different ways that the company could continue to provide high quality products and a market leading customer services. In a period of six years, the company saw employees increase from the initial to 150 skilled and full time employees. In addition, the company also employed countless number of contractors and officers in major markets. This shows that the company has indeed, grown to become a driving force for solar power in Australia (Euro Solar, n.d.). This report is a marketing plan document that explain the situational analysis, the marketing objectives, and strategic and implementation plans. Furthermore, the report looks at among other things, the lifecycle analysis (PLC), and the BCG matrix that shows the position of the products offered by the euro Solar in relation to other competitors. The Ansoff analysis and the mission of the company. In addition, the paper also presents a developed brand positioning strategy and a positioning map. Currently, Euro Solar enjoys a strength of medium market position in Australia. The company competes against other established companies such as AGL and Alinta Company in designing and manufacturing of high quality energy saving products. In addition, it is critical to point out that the company already has a 100% ownership of its resources. Hence, the company medium market position in retail sector assured the company of having a higher bargaining power in creating a sustainable competitive advantage. Diversified products lines ensures that the company produces differentiated products that suits the needs of its customers. Currently the company designs differentiated high quality products that cuts across 3kw system, 5kw system, and 10kw system. This strategy has ensured that the company attracts two categories of customers; individual households and commercial sectors. Extensive focus on renewable saving products ensures that the company operates the largest energy saving products across Australia. Besides, the company focuses on ensuring that everybody embraces clean energy that consumes less power such as solar, landmills, and wind. Euro Solar operates as number one retailer of high quality energy saving products. In spite of taking the first position as a retailer, the company still lacks an infrastructure that can help it transport clean energy to end customers. Euro Solar seems to depend solely on consortium of producers in order to supply products to its customers. This brings out the obligation of paying delivery costs. This aspect is likely to have greater impact in its supply chain to the target market when it comes to the distribution of products. The geographical concentration of Euro Solar has been found to concentrate its operations around Australia. Customers that purchase the company products are located in many areas including Queensland, South Australia, Victoria, and New South Wales. This implies that a high dependence on some regions would increase the company risk. Furthermore, it is likely to expose the company to local economic and operating conditions. The ever-growing concern over environment and energy prices, consumers and governments around the world continue to embrace renewable energy products. Euro Solar Company has now taken measure that lead to development of renewable operations. For example, at the start of 2015, the company designed 2kw, 3kw, and 4kw systems. The increased demand of the company products and requests from customers has made the company to add to its products, other categories including the 5kw, 6kw, and 10kw systems. Developing different product portfolios is a way of ensuring that the company meets the future demand for electricity as well as the market share within Australia. The market offers strategic opportunities for the company to sign agreements and make partnerships with other well performing companies. For example, currently, the market present a number of well established and small companies that have resources. The initiative to formulate strategic agreements and partnerships will become the best way to gain resources and expand in other markets. Furthermore, a strategic move will ensure that the company experiences relatively lower costs. The nature of an environment where the company operates has remained volatile. The market seems to experience frequent changes in consumer demand and economy. This necessitates the need for the company to identify and respond effectively to any market conditions. Such changes can include market structures, marketing objectives, and growth objectives. In case management or marketing department fails to achieve the set objectives, this will cause serious implications to the company profitability. In most cases, the company might end up losing its loyal customers and hence, market share. Negative influence on product delivery can contribute to a bad word-of-mouth. This could also be one way that the company can lose its market value. Centrally coordinated processes have been adopted to deal with electricity supply in Australia. Currently, the market experiences volatility in spot prices. Besides, this could rise several folds to the average market price within a short period. As Euro Solar would end up buying electricity requirements in the future, the company is likely to experience a risk of price increases. This could The company operates in a market under regulations from environmental, territory, and commonwealth laws. Furthermore, the company is subject to a number of environmental laws and regulations. In addition, the company operations have been subject to non-compliances. the above types of stringent regulations are likely to have negative impact to a company revenue. SWOT Matrix Strengths Medium market position Diversified products lines Extensive focus on renewable saving products Weaknesses Lack of infrastructure Geographical concentration Opportunities Design and manufacture of new renewable projects Strategic partnerships with other companies Threats Volatility in the market Volatility in prices Increased government regulations Table 1: SWOT matrix Euro Solar Process: A Free Assessment on the premises. Establish a quote based on the information given. Demonstrate cost savings. Submit follow though Grid Connection applications for approval on the specified size systems. Manage projects from beginning to end They organize all paper work Marketing Objectives Any company that seeks to market and create awareness in a market should seek to formulate objectives based on SMART framework. According to Grzegorczyk (2013) for instance, such objectives should remain specific, measurable, realistic, and time bound. In the case of Euro Solar for example, the following objective will ensure that the company achieve higher growth: Increase the market awareness among the Australian households by 25% over a period of 32 months Increase market awareness among the Australian Corporation for the next 24 months. Increase on the volume of sales from the current AUD$2000 to AUD$6000 over the next 24 months in order to gain a sustainable growth level. Marketing Mix Strategies Product marketing of products should consider a number of elements. Currently, the company retails high quality products that meets customer value. The marketing department should also use product varieties that meet the needs of customers. Currently, the company manufactures a variety of products lines. Such a high number of product variety attracts customers that prefer small, medium, and large quantities. Packaging should also play a critical role in the manner in which the company covers and protects from external damage. Pricing of products considers the costs of transportation, operational, and any other external element such as taxation. Currently, the company prices its products at a premium product than its competitors. While this strategy depicts such products as premium in adding value, this strategy locks out a number of customers with lower income. Therefore, marketing to a larger population in Australia can be achieved through discounting or psychological strategies. The can implement the later strategy by offering a lower price margin to customers that buy solar products and solar energy systems in large quantities. While on the other hand, psychological pricing can come into effect by offering relatively lower prices in formats such as $0.99, $1.99, or $2.99. This approach makes a majority of customers perceive the products as affordable. Place offers the distribution channels that a company use to ensure that products reach the target customer. Currently, the company distributes the products through its standalone stores located in uptowns. This strategy locks out many customers who prefer the products but cannot access them because of their geographical location. Therefore, the company can increase accessibility to its products by opening up more stores, through retailers, supermarkets, electronic shops, and warehouses. Besides, the company can also use petroleum stations where people frequent when filling their motor vehicles. The marketing department need to develop a total communication mix that incorporate public relations, personal selling, direct response, interactive marketing, sales promotion and advertising (). Even though the company has applied advertising strategies, such a strategy has taken into effect print media. This marketing plan recommends that the company consider using directories, billboards, and motion pictures to help create an awareness. Besides, the company need to contract The Sphere Agency Company to conduct print and billboards for effective marketing. Furthermore, the company should use sales promotions through free samples and free trials of its solar energy systems and panels. While on the other hand, public relations will become effective through sponsoring of special events such as conferences, seminars, and sporting events in Australian communities. In addition, personal selling can involve training sales presentations in areas of marketing and sales. The advancement in s ocial media platforms has come to offer companies with the best tools to reach virtual customers located in different markets. Direct marketing should take the form of sending direct mails to customers, creating social media accounts in Facebook, YouTube, Instagram, and Twitter. As indicated in table 1, the marketing department should contract with companies such as Impressive Digital Agency and Luma pictures Company. Brand positioning strategies A company brand remain part of its livelihood. Garg, Singh De (2016) explain that it refer to the personality statement for a company and the declaration of values. When a company selects on a right positioning strategy, positioning is likely to create an impression in the minds of customers. Consequently, it is from this that customers can become loyal. Customers prefer to engage with companies at a more personal level. Most importantly, strong brands makes it easier for customers to identify, strengthen the relationship, and trust new products or services. This marketing plan therefore, suggests that Euro Solar marketing department formulates the following brand positioning strategies. As indicated in the company profile, it is apparent that the company has succeeded in increasing the volume of sales because of designing and marketing high quality solar products and solar energy systems. The company ensures that the product are of high quality throughout Australian market. With this in mind therefore, the marketing plan should focus on ensuring that the company gives its products and services high level of quality. Besides, the company can also go ahead to combine this with other positioning strategies. Furthermore, marketing management should continue to emphasize the commitment of a company on quality products across the three categories of electrical appliances. For instance, the best way to do this and create a competitive advantage would be through narrowing the focus on all solar products and three categories of solar energy systems. Management should approach value and price positioning through two ways. The two ways depend on quality of products. First, the company can apply a high-end tact. This approach can ensure that the company gets to exploit the psychological belief of customers that the products offered by the company are expensive. Second, the company-marketing department can also opt to cement the products as those that provide the highest value than those being offered by competitors. This will make it easier to consider value-priced products. Celebrity-driven positioning strategy The marketing plan recommends that the company hire celebrities to act as the spokespeople. At any time the company introduces a new product in Australian market, celebrities should be used to endorse new products. This will become the most popular way for introducing a product brand in a market. According to Tsai, Hu Lu (2015), the goal for doing this will ensure that the company creates and strengthen awareness among its potential customers. Furthermore, this approach will ensure that consumers identify and recognize any brand manufactured by Euro Solar. Even though this might be an expensive route to take, majority of consumers have been found to trust celebrities because of their characters, behaviours, personalities, and what they stand for in a society. Most importantly, this will be the greatest way of making households and corporations follow the leads of celebrities. The sales representative should communicate the unique benefits of solar products and solar energy systems to the households and companies. Communication of unique benefits that products and services offer has remained a popular brand position. Management should use this strategy with the goal of highlighting Euro Solar most powerful attributes of energy saving, cost saving, and contribution to clean environment for sustainability. Action plans Marketing action plan What to do who Resources needed when Priority Emailing Communication Laptop and Internet Connectivity November, 5th 2017 medium Search Engine Optimization Impressive Digital Agency AUD$6,000 November 5th 2017 June 30th 2018 high Print Posters The Sphere Agency Company AUD$2,000 November 5th 2017 high Billboard The Sphere Agency Company AUD$3,500 November 15th 2017 April 20th 2018 high Motion picture Luma pictures Company AUD$4,000 November 15th 2017 March 20th 2018 medium Conduct sponsors to events Project department AUD$2,400 November 15th 2017 March 20th 2018 medium Plan for a tree planting day Corporate Social Responsibility Department AUD$6,000 December 10th 2017 low Social media marketing (Facebook, Twitter, Instagram, LinkedIn) Impressive Digital Agency AUD$6,000 January 15th 2017 April 20th 2018 high Table 1: Action plan The marketing department will rely on a control process to implement the entire marketing plan. According to figure 1 below, the first process will involve setting benchmarks as indicators that are both measurable and observable. The second process will involve evaluation. This process will ensure that marketing personnel compares what has been set and what the actual values that the company achieves. Consequently, this process will ensure that the person identifies any form of deviation. The mid-level management will therefore, identify the actual performance of the company against the established standards. Some of the questions to ask at this stage will include what, why, and what happened. For example, some of the measures that will be evaluated will include sales volume, marketing cost, and profitability (by marketing controller), and market share (performed by marketing executive). The last process according to figure 1 below will involve coming up with appropriate measures to help correct identified deviations. For instance, some of the appropriate measures will incorporate; Order-size decisions Territory decision Product decision Customer decision Product Lifecycle Analysis A product life cycle explain different stages that a product or service brand passes from time of development to a decline stage. During the development stage for example, the company starts to conceptualize the nature and other associated characteristics that will make customers purchase a product. The introduction stage is when the company takes early initiatives to introduce a new product in a new market. The fact that this form the early stages, such companies require vigorous marketing strategies to help the company create awareness in a market. Currently, the company is operating in a growth phase. However, the major challenge that the company experiences is management. This implies that the company management must be able to move from doing into managing its brands. The company has achieved this following the growth of the number of its employees from the initial 4 to more than 10 employees. Armstrong, al. (2012) explain that for majority of manufacturers, this forms an important stage at which they can start to establish and strengthen the position of their product. They can do this though increased sales, improvement in profit margins, and gaining a better position strategy. Euro Solar Company has achieved its current position in the life cycle by developing consumer demand while using activities such as promotional or marketing. Besides, it is critical to point out the advantages that the company enjoys at this stage. According to (, a company in a growth stage benefits from reduction in costs, increase market awareness among customers, and an increased profitability levels. However, Kurtz, Dave (2010) points out that companies in their growth stages tend to experience challenges. This implies that Euro Solar Company might be experiencing increased competition from already established companies, an urge to charge lower prices, and the need to adopt varying marketing approaches. The Boston Consulting Group (BCG) matrix above shows the position of Euro Solar Company in relation to other competitors. Currently, the only competitors that have achieved a high market growth and market share in Australia are Sunrun and Sunpower. Their position in the star position implies that the companies have spent much of their resources in marketing. However, Wood (2014) points out that any company that does this should be in a position to record high profits. Currently, Euro Solar position is the question mark. This indicates clearly that while the company has succeeded in operating in Australia growing market, the company has not yet achieved a high market share. Loana (2016) recommends that any company that positions itself in the question mark must start thinking on ways to translate the question marks to become stars. This implies that a company can continue to use its high market share. The above is in contrast to business that operate as cash cow. According to figure 1 for example, competitors such as Desa Australia has a relatively higher market share within a mature market. However, the fact that the company has a slower growth, management cannot think about investment needs. Nonetheless, the source of income offers such a company more cash to diversify its revenue streams. Conclusion This marketing plan has shown that the company internal analysis presents the company strengths because of its medium market position, diversified product lines, and extensive focus on renewable saving products. However, two key weaknesses that might affect future growth and marketing. Lack of infrastructure and geographical concentration. 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