AboutLeo Lingham Expertise I can answer questions on marketing, marketing planning,
product management, advertising, sales promotions, sales planning,
merchandising, direct marketing, and sales management.
Experience 18 YEARS WORKING MANAGEMENT EXPERIENCE IN BUSINESS PLANNING,
STRATEGIC PLANNING, MARKETING, SALES MANAGEMENT, AND ORGANIZATION DEVELOPMENT.
PLUS
24 YEARS OF MANAGEMENT CONSULTING IN STRATEGIC PLANNING,
BUSINESS PLANNING, PRODUCT MANAGEMENT, MANAGEMENT TRAINING,
AND BUSINESS COACHING.
Expert: Leo Lingham Date: 7/3/2008 Subject: Market Plaining
Question Dear Mr. Leo Lingham,
I hope you are in good health.
Today I want to discuss with you regarding market plan. Actually i am in working in a Ceramics Company in Pakistan as Assistant Manager Marketing and our major product is decorative ceramic wall and floor tile.
We are selling our product through authorized dealers all over in Pakistan. Now our company is going to expand its production capacity because we are not full filling the demand of our dealers with current production capacity.
Let me tell you that our company’s owners are the sale oriented they do not expand too much on marketing department.
Please guide me from your expertise regarding marketing tips that how I make my marketing plan for our new plant?
Please have a glance at our past marketing activities which would be helpful for you to guide me in right direction.
We organize a dealers and architect function in 2007 (Dinner program)
Provide tile stands to the dealers
Provide Shop signs
Leaflets
Giveaways (Pen)
Participate in industrial event (Build Asia 2007)
Best regards,
Babar Hussain
Answer BABAR,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
==========================================
I can understand the owner's logic.
Based on your briefing,
the owner's activities are useful.
OF COURSE IT IS LIMITED AND ONE SIDED.
IN THE TYPE OF SELLING SYSTEM YOU HAVE,
YOU NEED TWO APPROACHES
-PUSH SELLING --where you load the stock on the dealers.
-PULL SELLING--where you help the dealers sell out their stocks.
IN YOUR CURRENT SITUATION,
YOU ARE GOING TO HAVE
-current production volume + new capacity.
THIS IS WHAT YOU HAVE TO PLAN.
===================================
YOUR MARKETING APPROACH.
PRODUCT
-define your product--what is your product
-what is it made of
-what is cost of this product
-is it imported
-is it locally made
-is there a competitive product
-what is the price differential
-how many competitive brands are there
etc
when you answer these questions, it will help to define
your product. How do you stand with your new volume.
==========================================
MARKET
-who are your potential users
[large builders/ medium builders/ small builders / renovators]
-how many are there in your country
[large builders/ medium builders/ small builders / renovators]
-how many new homes/ flats are built during the next 12 months.
-how many homes/ flats will be renovated.
-how much / how often / do they buy
-is there any changing trends
-is the demand increasing
etc
when you answer these questions/ more, it will help
define your potential market size
-current production volume + new capacity.
meet the market demand.
==========================================
BUSINESS ENVIRONMENT
-how is the economy affecting your market
-who are the potential competitors
-what are the market share of the competitors
-what is the degree of competition
-what is the basis of competition -is it price/ brand etc
-what government regulations affect this market
etc
when you answer these questions / more , it will help
to understand the impact of environment on your
market.
-current production volume + new capacity.
where will you stand with respect to the competion
and the market growth.
==========================================
PRODUCT PLAN
-what brand name do you want
-your product market objectives
-how you plan to position your product
-your product marketing strategy to achieve success
etc
when you answer these questions / more , it will help
to understand the need for product market strategy
-current production volume + new capacity.
will THIS BE USED FOR THE SAME BRANDS OR
NEW PRODUCTS/BRANDS WILL BE INTRODUCED.
===========================================
SALES
-what are your sales objectives for the NEXT 12 months
-what will be your dollar revenue
-what will be your total cost
-what will your gross profit estimates
-what geographical areas do you wish to cover
etc
when you answer these questions / more , it will help
to understand the sales target / target market.
-current production volume + new capacity.
ADD THESE ADDITIONS TO YOUR SALES FORECAST.
==========================================
DISTRIBUTION
-how do want to distribute the products
-is it through YOUR CURRENT DEALER NETWORK
-is it through additional dealers.
-when will they be appointed.
-what will be your trade discounts
etc
when you answer these questions / more , it will help
to understand the distribution guidelines required.
-current production volume + new capacity.
how will the additional volume spread.
==========================================
PROMOTIONS
The promotions depends on your
-market size
-market spread
-market segment
-product positioning
-sales target
-competitive situation
etc
Based on the above assessment, we allocate resources
SALES PROMOTIONS
-brochures
-leaflets
-sales aids
etc
RETAIL PROMOTIONS
-retail ads
-displays
-point of sale materials
etc
DIRECT MARKETING
-direct mailings
-telemarketing
-online marketing
etc
CONSUMER INCENTIVES
THE SELECTION OF MARKETING PROMOTIONS IS
GUIDED BY THE TARGET MARKET/ SALES TARGET
AND RESOURCES AVAILABLE.
===============================================
ONCE YOU COMPLETE THE ABOVE HOMEWORK,
YOU SHOULD DO SOME THINKING ON
- PUSH SELLING / PULL SELLING
1.PUSH SELLING.
-new dealer appointment [ time/ schedule]
-annual sales estimates for the new dealers
-monthly stockholding for the new dealers in their dealership.
-annual sales estimates for the current dealers
-monthly stockholding for the current dealers in their dealership.
-regular trade discount
-special rebate bonus for lifting more stock --say 20% over last year.
-CONTINUE WITH THESE USEFUL PROGRAMS
We organize a dealers and architect function (Dinner program)
Ø Provide tile stands to the dealers
Ø Provide Shop signs
Ø Leaflets
Ø Giveaways (Pen)
Ø Participate in industrial event
-train your sales representatives.
-regular sales commission.
-plus special bonus if they achieve the targets [ 20% over the last year]
-organize the best sales representative competition.
-organize the outstanding dealer competition by regions in your country.
-organize the best dealer competition nationally.
2. PULL SELLING.
-direct marketing promotions to the ARCHITECTS.
-direct marketing promotions to the BUILDERS/ CONTRACTORS
with special price based on volume.
BUT THE DELIVERY SHOULD BE THROUGH THE DEALERS.
-sales drive by the sales reps. on major builders/contractors/renovators.
-for small builders / renovators develop a loyalty program for 12 months
if they buy from the same dealer all their requirements.
-advertise in the local papers/ magazines with a discount voucher offer
with which individual flat owners/ home owners can buy your products
from the local dealers, using the voucher.
-load your website with a discount voucher offer
with which individual flat owners/ home owners can buy your products
from the local dealers, by downloading / using the voucher.
-If your dealers have their delivery vehicles, you should help
to paint their vehicles with your products/ logos.
========================================================
ONCE YOU HAVE DEVELOPED YOUR PUSH/ PULL SELLING
PROGRAMS, YOU SHOULD DEVELOP THE MARKETING PLAN.
