Yellow Team Marketing Plan

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Team Yellows’ Marketing Project
Matthew M. Hoffmann,Vanny Sok
Christina Ley, Sean Burton
December 4, 2012
Principles of Marketing BUS 240-50
Professor Dr. J.W. Dottin
Table of Contents
Executive Summary
Page 3
A synopsis of the Marketing Project
Entire page
Stage I
Page 4
Product Conception
Describing an innovative product
Stage IIA
Page 5-6
Domestic Marketing Strategy
External Components of the Marketing Environmental Model
Stage IIB
Page 7-8
International Marketing Strategy
External components of the Marketing Environmental Model
Stage III
Page 9
SWOT Analysis
Stage IV
Page 10
Research Survey: 20 questions toward target audiences.
Stage V
Page 11-12
Marketing Strategies (Domestic and International)
Stage VI
Promotional Brochure
Attached
Works Cited
Page 13
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Executive Summary
We, the Yellow Team, enhance the apparel category in modern pet stores of today.
“Glow” is a high performance luminous spray paint. Our product is non-toxic towards the
owners and their cat(s) or dog(s). “Glow” is geared towards providing a quicker way to locate
the owner’s pet during the after hours, while being environmentally safe. A couple of sprays on
the pet’s pelt will illuminate a glow, as a result it will instantly help owners see their favorite
four legged friend(s) in the dark.
Our focus is towards the people of Morocco who want to protect their pets from the
controversy of their culture and religion. Some of them might have cats and few might have
dogs. A lot of Moroccan families do not have pets though. It is uncommon to allow pets into
Moroccan homes. The problem is they are unclean. If an animal licks you, then you have to clean
yourself before you can pray. Many people tend to avoid contact with dogs and cats so they don't
have to deal with cleaning every time they are about to pray. That avoidance eventually becomes
a norm. In Morocco, there are not many animal hospitals or clinics. Therefore, there is a lack of a
market to sell to.
To achieve our objectives, “Glow” is seeking a long-term development goal and continue
to try strengthening the company’s business strategy of introducing the new product to the
marketing mix. Pricing strategy is to be competitive among the competition; to satisfy customers
at the right time and in convenient locations to all buyers like local pet stores, grocery stores, pet
daycares, and veterinarian clinics or animal hospitals. Our promotion strategy is based on
information received from lost cats and dogs statistics to consumers nationwide that point out
positive qualities about “Glow”.
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Stage I
Today’s market has a variety of things for cat and dog owners then the previous decades
before us. Now there are Geographic Positioning System collars, extendable leashes, seasonal
jackets, and electrical barriers. However, materials like electrical barriers can be exorbitant and
even hazardous toward your pet. While GPS collars are extremely over priced, customers waste a
great deal of space on penny-pinching clothing that piles up each year. Introduced to our
customers is a new product that is affordable and is made from the best quality called, Glow.
Glow is a luminescent paint that is applied by liquid being driven through the air as tiny drops
from a spray can. It is water resistant, non-flammable, acid free, and safe for the environment.
The paint glows only at night so that pet owners can quickly identify their cat or dog’s location.
Consumers will never have to be apprehensive about the fear of their favorite four legged
friend(s) going too far out of sight. Now children can have more joviality then they thought was
possible, by changing their cat or dog into several illuminating colors offered from a variety of
cans. When it comes to adding another coat or applying a different color, use our dual spray to
remove the paint from your pets pelt.
For just $6.95 per can, a customer could have a spray can that will illuminate your pet
during the after hours of the day. The canisters take as much space as a fragrance bottle and can
be stored under the kitchen sink, in the pantry closet, or inside the hallway desk. Easy to apply
and quick to remove, it’s time for pet owners to enjoy the good life!
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Stage IIA
Domestic Marketing Strategy focusing the domestic market for your product exploit all the
components of the Marketing Environmental Model.
1. Competitive Forces; Based off of a monopolistic competition called, Petco are several brand
names that have products similar to our product, “Glow.” There are 25 dog brands, and 2 cat
brands sold at Petco with products that share similar purpose products. Those products are; rain
jackets, winter coats, reflector vests, electrical fences, and extendable leashes.
2. Economic Forces; The United States is in a declining recession since 2002 into 2012. As of
2011, the country's GDP is at 15.09 trillion, with a disposable income showing at that people
have a decrease in buying power. During a recession, the unemployment rate is high and the
buying power is low. In conclusion people are looking to get more from their buck.
3. Political Forces; A person who is elected or a leader who designates and controls the country
based on certain powers determines the political climate. For instance, most animal welfare and
animal rights advocates.
4. Legal and Regulatory Forces; Legal and Regulatory Forces that have a great impact on our
product. Lanham Act, Celler-Kefauver (safe), Trademark Counterfeiting Act, Trademark Law
Revision Act (safe). This is the list of regulatory agencies that might have jurisdiction over our
product found in figure 3.3: Environmental Protection Agency (safe), Consumer Product Safety
Commission (warning label).
5. Technological Forces; Advances in technology have provided opportunities to new products,
new ways of selling and new ways of influencing the consumers. The self-sustaining nature of
technology is a catalyst to spur even faster development. Our product is under the influence of
this technology once innovations are introduced. Although, consumers are able to buy our
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product through the Internet at their own convenient time.
6. Socio-culture Forces; Change in a population’s demographic characteristics has dramatically
affect population consumption of our product. Currently 13% of Americans are the age 65 and
older. In the next 19 years, the rate will reach to 26% of total U.S. population, which is
dramatically changing the composition of the country. According to Pew Research Center of
Pew social and Demographic Trends, the most pet owners are between the ages of 13 and 29.
However, culture values will change and as the population becomes older their eye sight
becomes weaker or their energy becomes strain in chasing after their favorite pet. “Glow” helps
the consumer identify the location of their pet quickly when it is a simple as looking for an
illuminate glow through the dark.
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Stage IIB
International Marketing Strategy focusing the international market of Morocco for your
product exploit all the components of the Marketing Environmental Model.
Competitive Forces; Total budget competitors that form as an oligopoly are pet cares, and dog
walkers.
1. Economic Forces; Morocco’s has relatively low labor costs to build a diverse, open marketoriented economy. The country’s GDP purchasing power is $163.5 billion as of 2011, compare
to $155.9 billion in 2010. Household income or consumption by percentage share is at its lowest
2.7% and highest 33.2% reported in 2007. Morocco is still facing an unstable government with
challenges among; corruption, reducing government spending, reforming the educational and
judiciary system, addressing socioeconomic disparities, and building more diverse, and
developing higher value-added industries.
2. Political Forces; When uprisings began across the Arab world in 2011, King Mohammed VI
of Morocco quickly plunged into a process of political reform. When new parliamentary
elections were held, the Islamist Party for Justice and Development (PJD) won the seats and
become the prime minister, but the King still had the ultimate power. Even among Moroccans
who originally hailed the monarch's approach, some changes are taking place in the country. The
PJD fights and introduces a higher degree of morality in public life, and reform the cost system
of subsidies that eat away at the budget without helping the poor. The system of subsidies
currently eats up about 6% of the country’s GDP and 13% of the budget, which translates into
benefits for the King and those around him who supply the enlarged market created by subsidies,
while state and taxpayers bear the cost.
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3. Legal and Regulatory Forces; Morocco is an emerging market at the crossroads of Europe,
Africa, and the Middle East. It imports $11 billion in products each year. Currently, U.S.
products entering Morocco face an average tariff of more than 20%, while Moroccan products
are only subject to an average 4% duty in the United States.
4. Technological Forces; Morocco’s government commits to protecting copyrighted works,
including phonograms, for extended terms, consistent with U.S. standard and international
trends. Internet Service Providers (ISPs) will have limited liability, reflecting the balance struck
in the U.S. Digital Millennium Copyright Act between legitimate ISP activity and the
infringement of copyrights.
5. Socio-culture Forces; Morocco’s tradition and culture is tied to it’s official religion of Islam.
Research has demonstrated two clear variable segments in Morocco’s market mix. Many of the
customs, laws, and practices within Islam also widely influence the people and the culture of
Morocco today. A Psychological segment in Morocco’s culture believes that cat and dogs are
unsanitary. Resulting with most people banning cats and dogs to the out doors. Another, segment
is behavioral, because most Moroccans shop for groceries, clothes, and other items, at their local
souk vendors than the major chains stores. Because everything that people need can be bought at
a reasonable price through vendors than compared to the brightly lit stores. Thus, Morocco has a
tight market, and has a major cultural assumption or minor idiosyncrasy that influence our
product.
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Stage III
SWOT analysis; Our departments’ strengths are based on customer relationship
management, creative innovation and marketing strategy.
Strengths:
Glow will never smudge or erase away
Does not need light to reflect off of it, unlike reflectors.
Easy to apply and remove from the pet’s pelt.
The paint illuminates in the dark making it quick to identify the location of you pet.
Weaknesses:
The product only work’s during the night.
Opportunities:
Dual spray to remove the paint.
A winter spray that keeps the pet warm during the fall season.
Variety of different colors to spray onto your pet.
Threats:
• Reflector vests, rain coats, winter jackets, electronic fencings, GPS collars, and extendable
leashes.
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Stage IV
Research Survey: Develop 20 - 25 questions for your potential target audience.
1. Male/ Female (chose one)
2. Age (25 or younger, 26-35, 36-45, 46-55, 56 and older)
3. Race (American Indian or Alaska Native, Asian, Black or African American, white, other)
4. Marital States (married, widow, single)
5. Zip Code (fill- in)
6. Income (less than $30,000, 30,000-50,000, 50,000-75,000, 75,000 and more)
7. Educational Level (High school diploma, Associates, Bachelor, Master, or Higher)
8. Do you have children at home? (yes or no)
9. Do you own a Cat or Dog? (yes or no)
10. How many pets do you have? (1,2,3,4,5,6+)
11. Do you walk your pet outside? (yes or no)
12. Is your pet an indoor or out door animal? (yes or no)
13. How many hours does your pet spend outside approximately? (fill-in)
14. Do you buy apparel for your pet? (yes or no)
15. What type of apparel do you buy? (jackets, costumes, flotation vest, other)
16. Between what range in price do you spend on your pet? (1-10, 11-20,21-40,41+)
17. What local pet store do you visit on a regular visit? (Petco, Petsmart, other)
18. Do you Shop online or in the store? (yes or no)
19. Are you open to trying new pet products? (yes or no)
20. Would you like to receive updated messages about our product? (yes or no)
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Stage V
Marketing Strategies (Domestic and International):
1. Target Market Segmentation
Both Domestic and International target market strategies are the same. The team plans to
implement a concentrated strategy focused only on cat and dog owners. Furthermore, the
appropriate segmentation variable for our product would be consumer marketing. That contain
factors like consumer attitude, perceptions, lifestyle, geographic, to identify the number of pet
owners in each location.
2. Production Strategy
Both Domestic and International share the same product strategy. The existing product mix is a
width containing (Can Food, Dry Food, Cat Apparel, Dog Apparel), and a length that is extended
to 26 products in almost each category. The introduction stage is the products’ first appearance in
the market place when sales start at zero and profits are in the red. Then once entered into the
growth stage the sales and profit will rise rapidly (if the product is successful). Then when the
product hits maturity the sales will decline and profits begins to fall. At this point we can
introduce a new product from the opportunities section of the SWOT analysis and present it to
the market. The purpose to introducing a another product is to avoid the decline stage when the
product’s sales fall rapidly. Brief consumer profile; Innovators are the young adults ages 13-20
represent 2.5%, Early adopters first time cat and dog owners each year which is 13.5%, Early
majority are pet owner experienced that makes up of 34%, and Laggards the last minute people
that represent 16% of the consumer buying population.
3. Pricing Strategy
Pricing is an important variable in positioning. The product pricing strategy is to be competitive
among the competition and stabilize the product to avoid price wars and maintain a moderate but
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also maximize profit, taking into account revenue and costs. Therefore, the product’s listed price
without tax is $6.95 per canister.
4. Distribution Strategy
Domestic-Truck transportation, public warehousing, and the handling of the product will be unit
loading, while selective distribution will be provided to pet stores in a few popular cities.
International-Waterways combined with freight forwards and private warehousing. The material
handling will be Containerization. The products will be sold as an intensive distribution toward
dog walker business, pet daycares, and veterinarians.
5. Promotion Strategy
Domestic-The best promotion plan would be using order getters, and conducting a sales contest
that is open to reseller as well as the public consumers. Through contest competition attracts
more people that will unknowing be promoting our product far better then commercials and
advertising could give us.
International - The same as domestic in attracting order getters to promote the product, but
instead of a contest there will have to be a point-of-purchase materials that display to attract
customers in buying our product.
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Works Cited
http://carnegieendowment.org/2012/07/31/morocco-can-third-way-succeed/d3op
https://www.cia.gov/library/publications/the-world-factbook/geos/mo.html
http://www.expatfocus.com/expatriate-morocco-culture
http://www.moroccanamericantrade.com/business.cfm#3
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